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 houspurposes. ing and community development, and for other

JULY 15, 1994

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

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. VELA ́ZQUEZ, 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]
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A BILL

To amend and extend certain laws relating to housing and

community development, and for other purposes.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

5 ‘‘Housing and Community Development Act of 1994’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 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.
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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.
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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.
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Sec. 421. National Commission on the Future of the Federal Housing Administration.

Sec. 422. Action and report on cooperative homeownership for low- and moderateincome 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.
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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.
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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.

1 SEC. 2. EFFECTIVE DATE.

2 The provisions of this Act and the amendments made

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

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

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

2 Subtitle A—General Provisions

3 SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

4 (a) AGGREGATE BUDGET AUTHORITY.—Section

5 5(c)(6) of the United States Housing Act of 1937 (42 U.S.C.

6 1437c(c)(6)) is amended by adding at the end the following

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

8 that may be obligated for assistance referred to in para9 graph (7) is increased (to the extent approved in appropria10 tion Acts) by the sum of the amounts provided in paragraph

11 (7)(A) on October 1, 1994, and by the sum of the amounts

12 provided in paragraph (7)(B) on October 1, 1995.’’.

13 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

14 5(c)(7) of the United States Housing Act of 1937 (42 U.S.C.

15 1437c(c)(7)) is amended by striking the paragraph designa16 tion and all that follows through the end of subparagraph

17 (B) and inserting the following:

18 ‘‘(7)(A) Using the additional budget authority pro19 vided under paragraph (6) and the balances of budget au20 thority that become available during fiscal year 1995, the

21 Secretary shall, to the extent approved in appropriation

22 Acts, reserve authority to enter into obligations aggregat23 ing—

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

25 (a)(2), not more than $861,000,000, of which amount
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1 not more than $263,000,000 shall be available for In2 dian housing;

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

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

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

6 section 8 for family unification under subsection

7 (q)(3) of such section;

8 ‘‘(iii) for assistance under section 5(j)(2) for sub9 stantial redesign, reconstruction, and redevelopment

10 of existing obsolete public housing projects and build11 ings, not more than $114,000,000;

12 ‘‘(iv) for comprehensive improvement assistance

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

14 $3,230,000,000;

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

16 disposition, not more than $733,000,000;

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

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

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

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

21 contracts for assistance under section 8 and vouchers

22 under section 8(o) (as in effect before the date of the

23 enactment of this Act) and for loan management as24 sistance under such section;
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1 ‘‘(viii) for amendments to contracts under sec2 tion 8, such sums as may be necessary;

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

4 amendments, such sums as may be necessary;

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

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

8 ‘‘(xi) for conversions from leased housing con9 tracts under section 23 of this Act (as in effect imme10 diately before the enactment of the Housing and Com11 munity Development Act of 1974) to assistance under

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

13 ‘‘(xii) for grants under section 24 for revitaliza14 tion of severely distressed public housing, not more

15 than $500,000,000.

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

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

18 that become available during fiscal year 1996, the Secretary

19 shall, to the extent approved in appropriation Acts, reserve

20 authority to enter into obligations aggregating—

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

22 (a)(2), not more than $862,000,000, of which amount

23 not more than $264,000,000 shall be available for In24 dian housing;
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1 ‘‘(ii) for assistance under section 8, not more

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

3 $75,000,000 shall be available for assistance under

4 section 8 for family unification under subsection

5 (q)(3) of such section;

6 ‘‘(iii) for assistance under section 5(j)(2) for sub7 stantial redesign, reconstruction, and redevelopment

8 of existing obsolete public housing projects and build9 ings, not more than $120,000,000;

10 ‘‘(iv) for comprehensive improvement assistance

11 grants under section 14(k), not more than $3,241,000;

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

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

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

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

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

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

18 contracts for assistance under section 8 and vouchers

19 under section 8(o) (as in effect before the date of the

20 enactment of the Housing and Community Develop21 ment Act of 1994) and for loan management assist22 ance under such section;

23 ‘‘(viii) for amendments to contracts under sec24 tion 8, such sums as may be necessary;
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1 ‘‘(ix) for public housing lease adjustments and

2 amendments, such sums as may be necessary;

3 ‘‘(x) for assistance under section 18(g) for re4 placement housing for units demolished or disposed of

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

6 ‘‘(xi) for conversions from leased housing con7 tracts under section 23 of this Act (as in effect imme8 diately before the enactment of the Housing and Com9 munity Development Act of 1974) to assistance under

10 section 8, such sums as may be necessary; and

11 ‘‘(xii) for grants under section 24 for revitaliza12 tion of severely distressed public housing, not more

13 than $550,000,000.’’.

14 SEC. 102. RESIDENT REPRESENTATION IN PUBLIC HOUSING

15 AGENCIES.

16 (a) REPRESENTATION.—Section 2 of the United States

17 Housing Act of 1937 (42 U.S.C. 1437) is amended—

18 (1) by inserting ‘‘(a) POLICY.—’’ after ‘‘SEC. 2.’’;

19 (2) by striking the last sentence; and

20 (3) by adding at the end the following new sub21 section:

22 ‘‘(b) GOVERNANCE OF PUBLIC HOUSING AGENCIES.—

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

24 from serving on the board of directors or other similar
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1 governing body of a local public housing agency be2 cause of his or her tenancy in a low-income project.

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

4 housing agency shall have a board of directors or

5 other similar governing body, of which not less than

6 one-quarter of the members shall be residents of hous7 ing units administered or assisted by the agency.

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

9 shall establish guidelines to prevent conflicts of inter10 est on the part of resident members of the board or

11 directors or governing body of a public housing agen12 cy. Such guidelines shall ensure that resident mem13 bers are able to participate fully in policy and finan14 cial matters within the control of the board or body.

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

16 agency may limit or restrict the capacity or offices in

17 which a member of such board or body may serve on

18 such board or body solely because of the member’s sta19 tus as a resident member.

20 ‘‘(5) DEFINITION.—For purposes of this sub21 section, the term ‘resident member’ means a member

22 of the board of directors or other similar governing

23 body of a public housing agency who is a resident of

24 a housing unit administered or assisted by the agen25 cy.’’.
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1 (b) CONFORMING AMENDMENT.—The first sentence of

2 section 3(b)(6) of the United States Housing Act of 1937

3 (42 U.S.C. 1437a(b)(6)) is amended by inserting before the

4 period at the end the following: ‘‘and complies with the re5 quirements under section 2(b)’’.

6 SEC. 103. DETERMINATION OF MEDIAN INCOME.

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

8 Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended—

9 (1) in the 4th sentence—

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

11 ‘‘and Rockland Counties’’; and

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

13 county’’; and

14 (2) in the last sentence—

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

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

17 and

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

19 appears and inserting ‘‘and Rockland Counties’’.

20 (b) REGULATIONS AND EFFECTIVE DATE.—The Sec21 retary of Housing and Urban Development shall issue regu22 lations implementing the amendments made by subsection

23 (a) not later than the expiration of the 90-day period begin24 ning on the date of the enactment of this Act. The regula25 tions may not take effect until after September 30, 1993.
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1 SEC. 104. DEFINITION OF FAMILIES.

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

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

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

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

6 SEC. 105. FAMILY SELF-SUFFICIENCY PROGRAM.

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

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

9 to read as follows:

10 ‘‘(3) SCOPE.—Each public housing agency re11 quired to carry out a local program under this section

12 shall make assistance under the program available in

13 a fiscal year, subject only to the availability of

14 amounts for such assistance, to a number of families

15 who are assisted by the agency under section 8 or re16 side in public housing of the agency that is equivalent

17 to the sum of—

18 ‘‘(A) the increase for such year in the num19 ber of families assisted under section 8 (as com20 pared to the preceding year); and

21 ‘‘(B) the increase for such year in the num22 ber of public housing dwelling units made avail23 able by the agency (as compared to the preceding

24 year).’’.
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1 (b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Section

2 23(d) of the United States Housing Act of 1937 (42 U.S.C.

3 1437u(d)) is amended—

4 (1) in paragraph (2)—

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

6 and inserting ‘‘may’’;

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

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

9 choose to escrow amounts under this paragraph’’;

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

11 and inserting ‘‘may’’; and

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

13 and inserting the following new sentence:

14 ‘‘Amounts in the escrow account may be with15 drawn by the participating family upon the suc16 cessful performance of the obligations of the fam17 ily under the contract of participation entered

18 into by the family under subsection (c), as deter19 mined according to the specific goals and terms

20 included in the contract, and under other cir21 cumstances, as determined by the public housing

22 agency with the approval of the Secretary.’’; and

23 (2) by striking the 2d sentence of paragraph (3)

24 and inserting the following new sentence: ‘‘The plan

25 may require the establishment of escrow savings ac-
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1 counts under paragraph (2), a description of the pro2 cedures for release of escrowed amounts, and any

3 other incentives designed by the public housing agen4 cy.’’.

5 (c) SERVICE COORDINATORS.—Section 23 of the Unit6 ed States Housing Act of 1937 (42 U.S.C. 1437u) is amend7 ed—

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

9 inserting ‘‘under section 671 of the Housing and

10 Community Development Act of 1992’’ after ‘‘service

11 coordinator’’; and

12 (2) in subsection (h)—

13 (A) in paragraph (2), by striking ‘‘(includ14 ing the costs of employing a full-time service co15 ordinator)’’; and

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

17 paragraph:

18 ‘‘(3) CONTRACT ADJUSTMENTS FOR SERVICE CO19 ORDINATORS.—If, in providing rental assistance

20 under section 8 of the United States Housing Act of

21 1937 for a public housing agency carrying out a local

22 program under this section in any fiscal year, the

23 Secretary increases the amount provided for the agen24 cy so that the number of families assisted by the agen25 cy in the year is greater than the number of families
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1 assisted in the preceding year, the Secretary may in2 crease the amount annually provided for the agency

3 to provide for the costs of employing or otherwise re4 taining the services of one or more service coordina5 tors referred to in subsection (b)(1) of this section.

6 The Secretary may also, under any existing contract

7 for assistance under section 8, include the cost of em8 ploying such service coordinators to the extent that

9 amounts for amendments to such contracts are avail10 able.’’.

11 (d) REPEAL OF INCENTIVE AWARD ALLOCATION.—

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

13 U.S.C. 1437u) is amended—

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

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

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

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

18 United States Housing Act of 1937 (42 U.S.C. 1437u(h)(2))

19 is amended by striking the last sentence.

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

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

22 213(d)(4)(A) of the Housing and Community Development

23 Act of 1974 (42 U.S.C. 1439(d)(4)(A)) is amended—

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

2 end and inserting a semicolon; and

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

4 new clauses:

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

6 in connection with the settlement of civil rights litiga7 tion (excluding litigation brought by an employee or

8 former employee of the Secretary); and

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

10 the rental housing assistance program under section

11 8 of the United States Housing Act of 1937, provid12 ing assistance pursuant to section 8(q)(4) of such

13 Act.’’.

14 (b) AVAILABILITY OF PUBLIC HOUSING AND SECTION

15 8 AMOUNTS.—Section 5 of the United States Housing Act

16 of 1937 (42 U.S.C. 1437c) is amended by adding at the

17 end the following new subsection:

18 ‘‘(m) USE OF AMOUNTS UNDER HEADQUARTERS RE19 SERVE.—Any amounts appropriated for public housing de20 velopment or assistance under section 8, that are retained

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

22 of the Housing and Community Development Act of 1974,

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

24 (i) through (v) of such section.’’.
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1 (c) USE OF SECTION 8 ASSISTANCE FOR PORTABILITY

2 AND NEIGHBORHOOD CRIME FIGHTERS.—Section

3 213(d)(4) of the Housing and Community Development Act

4 of 1974 is amended by adding at the end the following new

5 subparagraphs:

6 ‘‘(C) Of any financial assistance for the rental housing

7 assistance program under section 8 of the United States

8 Housing Act of 1937 that is reserved pursuant to subpara9 graph (A), 5 percent shall be reserved for use only for the

10 purposes of providing assistance pursuant to section 8(o)(6)

11 of such Act.

12 ‘‘(D) In addition to any financial assistance for the

13 rental housing assistance program under section 8 of the

14 United States Housing Act of 1937 that is reserved pursu15 ant to subparagraphs (A) and (C), the Secretary shall re16 serve not more than an additional $15,000,000 of any fi17 nancial assistance that becomes available under such pro18 gram during each of fiscal years 1995 and 1996 and such

19 additional amounts may be used only for the purpose under

20 clause (vi) of subparagraph (A).’’.
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1 Subtitle B—Public and Indian

2 Housing

3 SEC. 111. PUBLIC HOUSING RENT REFORM.

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

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

6 amended—

7 (1) in subparagraph (A)—

8 (A) in clause (i), by striking ‘‘and approved

9 by the Secretary’’; and

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

11 the following new clause:

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

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

14 amount of debt service and operating expenses

15 attributable to dwelling units of similar size in

16 public housing projects owned and operated by

17 such agency;

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

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

20 or

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

22 determined by the agency for comparable units of

23 similar size pursuant to the procedures pre24 scribed by the Secretary for determining rent
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1 reasonableness under the program for rental cer2 tificate assistance under section 8(b).’’;

3 (2) by redesignating subparagraph (B) as sub4 paragraph (D); and

5 (3) by inserting after subparagraph (A) the fol6 lowing new subparagraphs:

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

8 agency pursuant to this paragraph may be adjusted by the

9 agency.

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

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

12 effect at the discretion of the public housing agency.

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

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

15 before the issuance of regulations to carry out such

16 subclause, which shall be issued by the Secretary not later

17 than 180 days after the date of the enactment of the Hous18 ing and Community Development Act of 1994.

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

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

21 value of unit for purposes of subclause (II) of subparagraph

22 (A)(iii) based upon (I) in a project of 50 or more units

23 for which such ceiling rents are being established, the 95th

24 percentile of rents paid for all units in the project, (II) in

25 a group of comparable projects for which such ceiling rents
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1 are being established that consists of a total of 50 or more

2 units, all units in the projects, and (III) in a group of at

3 least 50 comparable units for which such ceiling rents are

4 being established, all units in the group.’’.

5 (b) EXCLUSIONS FROM ADJUSTED INCOME.—Section

6 3(b)(5) of the United States Housing Act of 1937 (42 U.S.C.

7 1437a(b)(5)) is amended—

8 (1) in subparagraph (C)—

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

10 (B) by inserting before the semicolon at the

11 end the following; ‘‘; and (iii) to the extent docu12 mented by the family, the amount paid by the

13 family for health insurance coverage and any

14 other nonreimbursed out-of-pocket medical ex15 penses for any members of the family residing in

16 the household who, at the time, are not receiving

17 or approved to receive any assistance for health

18 care from the Federal Government or any State

19 government, except that this clause shall apply

20 only to families residing in public housing’’;

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

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

23 the case of a family residing in public housing the

24 amount excluded under this subparagraph shall be 20

25 percent of the earned income of the family remaining
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1 after excluding any amounts pursuant to subpara2 graph (H)’’;

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

4 the end;

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

6 at the end and inserting a semicolon; and

7 (5) by adding at the end the following new sub8 paragraphs:

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

10 housing, any earned income of any formerly depend11 ent child who is a member of the family residing in

12 the family’s dwelling unit during the period begin13 ning on the date of the first redetermination of the

14 rent for and family composition of the family that oc15 curs after the child reaches 18 years of age and end16 ing upon the date of the first such redetermination oc17 curring after he or she reaches 21 years of age; and

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

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

21 any amounts excluded under subparagraphs (E) and

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

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

2 WHO OBTAIN EMPLOYMENT FROM RENT DETERMINA3 TIONS.—

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

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

6 amended—

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

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

9 ‘‘paragraphs (2) and (3)’’; and

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

11 paragraph:

12 ‘‘(3) OPTIONAL EXCLUSION OF EARNED INCOME FROM

13 RENT DETERMINATION FOR FAMILIES PREVIOUSLY UNEM14 PLOYED.—Notwithstanding any other provision of law, a

15 public housing agency may provide (at the option of a pub16 lic housing agency) that, for all units in public housing

17 administered by the agency, the rent payable under sub18 section (b) for any such unit occupied by a family whose

19 income increases as a result of employment of a member

20 of the family who was previously unemployed for 1 or more

21 years, may not—

22 ‘‘(A) be increased as a result of the increased in23 come due to such employment during the period that

24 begins upon the commencement of such employment

25 and ends upon the second annual redetermination of
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1 the rent for and family composition of the family oc2 curring thereafter;

3 ‘‘(B) during any 12-month period occurring dur4 ing the 36 months succeeding the expiration of the pe5 riod under subparagraph (A) for the family, be in6 creased due to the continued employment of such fam7 ily member by more than one-third of the difference

8 between (i) the rent being paid by the family upon

9 expiration of such period, and (ii) the amount of rent

10 that the family would pay but for the applicability

11 of this paragraph; and

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

13 under paragraph (1) or (2).’’;

14 (d) EXCLUSION FROM INCOME OF EARNINGS FROM

15 JOB TRAINING AND SELF-SUFFICIENCY PROGRAMS.—Sec16 tion 3 of the United States Housing Act of 1937 (42 U.S.C.

17 1437a) is amended—

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

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

20 earnings of and benefits to any public housing resi21 dent resulting from enrollment and participation in

22 a program providing employment training and sup23 portive services in accordance with the Family Sup24 port Act of 1988, section 22 of this Act, the Job

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

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

3 any comparable Federal, State, or local law shall not

4 be considered as income for the purposes of determin5 ing a limitation on the amount of rent paid by the

6 resident during the period that the resident enrolls

7 and participates in such program’’; and

8 (2) by striking the undesignated paragraph at

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

10 515(b) of the Cranston-Gonzalez National Affordable

11 Housing Act).

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

14 participating in the program under the authority contained

15 in the undesignated paragraph at the end of section 3(c)(3)

16 of the United States Housing Act of 1937 (as added by sec17 tion 515(b) of the Cranston-Gonzalez National Affordable

18 Housing Act (Public Law 101–625; 104 Stat. 4199)), as

19 such paragraph existed before the date of enactment of this

20 Act, shall continue to be governed by such authority.

21 (f) PERFORMANCE FUNDING SYSTEM.—Section

22 9(a)(3)(B) of the United States Housing Act of 1937 (42

23 U.S.C. 1437g(a)(3)(B)) is amended—

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

2 inserting a semicolon; and

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

4 clause:

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

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

9 received under this section by the public housing

10 agency administering the public housing in which

11 such residents reside;’’.

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

13 section shall take effect on the earlier of—

14 (1) date of the effectiveness of the regulations

15 under subsection (i); or

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

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

19 final regulations necessary to implement the amendments

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

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

22 of the enactment of this Act. The regulations shall be issued

23 after notice and opportunity for public comment in accord24 ance with the procedures under section 553 of title 5, United
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1 States Code, applicable to substantive rules (notwithstand2 ing subsections (a)(2), (b)(B), and (d)(3) of such section).

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

4 INTERMEDIARIES.

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

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

7 striking ‘‘its lower income tenants’’ and inserting: ‘‘low-in8 come families residing in public housing or to non-profit

9 organizations for resale to low-income families residing in

10 public housing’’.

11 SEC. 113. MAJOR RECONSTRUCTION OF OBSOLETE

12 PROJECTS.

13 (a) ASSISTANCE FOR RECONSTRUCTION.—Section

14 5(j)(2) of the United States Housing Act of 1937 (42 U.S.C.

15 1437c(j)(2)) is amended—

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

18 and inserting the following: ‘‘The Secretary may pro19 vide assistance under this paragraph’’;

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

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

22 (3) in subparagraph (F)(i), by striking ‘‘reserved

23 or’’; and
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1 (4) in subparagraph (G)(i), by striking ‘‘reserved

2 under subparagraph (A)’’ and inserting ‘‘made avail3 able for use under this paragraph’’.

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

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

6 U.S.C. 1437c(j)(2)(G)(i)) is amended by striking ‘‘fiscal

7 years 1993 and 1994’’ and inserting ‘‘fiscal years 1995 and

8 1996’’.

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

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

12 of 1937 (42 U.S.C. 1437c(j)(3)(A)) is amended by striking

13 ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fiscal years

14 1995 and 1996’’.

15 SEC. 115. RECAPTURE OF PUBLIC HOUSING DEVELOPMENT

16 AMOUNTS.

17 Section 5(k) of the United States Housing Act of 1937

18 (42 U.S.C. 1437c(k)) is amended by adding before the pe19 riod at the end of the first sentence the following: ‘‘, unless

20 the Secretary finds that there is no feasible way for the

21 agency to begin construction or rehabilitation, or to com22 plete acquisition, within such period’’.
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1 SEC. 116. REPEAL OF LEAST-COST LIMITATION ON PUBLIC

2 HOUSING NEW CONSTRUCTION.

3 Section 6 of the United States Housing Act of 1937

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

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

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

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

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

11 new paragraph:

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

13 Secretary may, for public housing agencies designated pur14 suant to this subsection as high performing public housing

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

16 issued under subparagraph (C)) the applicability for the

17 ensuing fiscal year of regulatory requirements otherwise ap18 plicable to public housing agencies to the extent appro19 priate, as determined by the Secretary, to facilitate more

20 efficient operation of such agencies.

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

22 of any provision—

23 ‘‘(i) limiting occupancy of public housing to low24 income families;

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

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

2 and Real Property Acquisition Policies Act of 1970;

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

4 to protect persons against, discrimination on the

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

7 housing or equal opportunity; or

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

9 Code.

10 ‘‘(C) During fiscal year 1995, the Secretary shall pub11 lish in the Federal Register a proposed rule providing for

12 the waiver of the regulations to be waived pursuant to this

13 paragraph and identifying such regulations. The Secretary

14 shall publish such proposed rule at a time determined by

15 the Secretary to be sufficient to provide notice and an op16 portunity for public comment before issuance of a final rule

17 under this paragraph. Such final rule shall be issued not

18 later than August 31, 1995.’’.

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

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

22 read as follows:

23 ‘‘(e) TREATMENT OF SAVINGS.—

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

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

2 according to the agency’s annual operating budget,

3 shall be excluded in subsequent years in calculating

4 the amount of the operating subsidy provided under

5 section 9 to the high-performing public housing agen6 cy. Such savings shall be retained by the agency for

7 other housing purposes.

8 ‘‘(2) HIGH-PERFORMING PUBLIC HOUSING AGEN9 CY.—For purposes of paragraph (1), the term ‘high10 performing public housing agency’ means, with re11 spect to a year, a public housing agency that has been

12 designated pursuant to subsection (j) as a high per13 forming public housing agency for the last fiscal year

14 ending before the commencement of such year.’’.

15 SEC. 118. STANDARDS FOR LEASE TERMINATION AND EXPE16 DITED GRIEVANCE PROCEDURE.

17 Section 6 of the United States Housing Act of 1937

18 (42 U.S.C. 1437d) is amended—

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

20 matter following paragraph (6), by striking ‘‘crimi21 nal’’ the first place it appears; and

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

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

3 Section 6 of the United States Housing Act of 1937

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

5 following new subsection:

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

7 ‘‘(1) AVAILABILITY.—Notwithstanding any other

8 provision of Federal, State, or local law, upon the re9 quest of any public housing agency, the National

10 Crime Information Center, police departments, and

11 any other law enforcement entities shall provide in12 formation to the agency regarding the criminal con13 victions of applicants for, or residents of, public hous14 ing for the purpose of applicant screening, lease en15 forcement, and eviction. A public housing agency may

16 pay a reasonable fee for such information.

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

18 under paragraph (1) shall include information re19 garding convictions for any felony and convictions for

20 certain misdemeanors, including crimes of violence,

21 destruction of property, use, sale, or distribution of

22 controlled substances, illegal possession or use of fire23 arms, and hate crimes. Such information may not in24 clude information regarding any criminal conviction

25 of such an applicant or resident for any act (or fail26 ure to act) occurring before the applicant or resident
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1 reached 18 years of age or information regarding any

2 criminal conviction of such an applicant or resident

3 occurring more than 10 years before the request under

4 this subsection is made by the public housing agency.

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

6 information under this subsection may use such infor7 mation only for the purposes provided in this sub8 section and such information may not be disclosed to

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

10 public housing agency. The Secretary shall, by regula11 tion, establish procedures necessary to ensure that in12 formation provided to a public housing agency under

13 this subsection is used, and confidentiality of such in14 formation is maintained, as required under this sub15 section.

16 ‘‘(4) PENALTY.—Any person who knowingly and

17 willfully requests or obtains any information concern18 ing an applicant for, or resident of, public housing

19 pursuant to the authority under this subsection under

20 false pretenses, or any person who knowingly and

21 willfully discloses any such information in any man22 ner to any individual not entitled under any law to

23 receive it, shall be guilty of a misdemeanor and fined

24 not more than $5,000. The term ‘person’ as used in
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1 this paragraph shall include an officer or employee of

2 any public housing agency.

3 ‘‘(5) CIVIL ACTION.— Any applicant for, or resi4 dent of, public housing affected by (A) a negligent or

5 knowing disclosure of information referred to in this

6 section about such person by an officer or employee

7 of any public housing agency, which disclosure is not

8 authorized by this subsection, or (B) any other neg9 ligent or knowing action that is inconsistent with this

10 subsection, may bring a civil action for damages and

11 such other relief as may be appropriate against any

12 officer or employee of any public housing agency re13 sponsible for such unauthorized action. The district

14 court of the United States in the district in which the

15 affected applicant or resident resides, in which such

16 unauthorized action occurred, or in which the officer

17 or employee alleged to be responsible for any such un18 authorized action resides, shall have jurisdiction in

19 such matters. Appropriate relief that may be ordered

20 by such district courts shall include reasonable attor21 ney’s fees and other litigation costs.’’.

22 SEC. 120. DESIGNATED HOUSING.

23 Section 7(e)(1) of the United States Housing Act of

24 1937 (42 U.S.C. 1437e(e)(1)) is amended—
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1 (1) in the first sentence, by striking ‘‘and the

2 Secretary approves an application under this sub3 section for such designation’’; and

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

5 period at the end the following: ‘‘, which shall provide

6 that an application for a project (or portion of a

7 project) shall be submitted and considered for ap8 proval in conjunction with submission and approval

9 of the allocation plan for the project (or portion)

10 under section 7(f)’’.

11 SEC. 121. PUBLIC HOUSING OPERATING SUBSIDIES.

12 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

13 9(c) of the United States Housing Act of 1937 (42 U.S.C.

14 1437g(c)) is amended—

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

16 all that follows and inserting the following new sen17 tence: ‘‘There are authorized to be appropriated for

18 purposes of providing annual contributions under

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

20 $3,208,000,000 for fiscal year 1996.’’.

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

22 1994’’ and inserting ‘‘1995 and 1996’’; and

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

24 1994’’ and inserting ‘‘1995 and 1996’’.
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1 (b) ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC

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

3 Act of 1937 is amended—

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

5 (A)’’; and

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

7 ‘‘or (B) assisted under section 24 or the program au8 thorized under (i) the third paragraph of the head,

9 HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EV10 ERYWHERE GRANTS (HOPE GRANTS), of title II of the

11 Departments of Veterans Affairs and Housing and

12 Urban Development, and Independent Agencies Ap13 propriations Act, 1993, or (ii) the head, SEVERELY

14 DISTRESSED PUBLIC HOUSING PROJECTS, of title II of

15 the Department of Veterans Affairs and Housing and

16 Urban Development, and Independent Agencies Ap17 propriations Act, 1994;’’.

18 (c) INCLUDED COSTS.—Section 9(a)(3)(B) of the Unit19 ed States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)),

20 as amended by the preceding provisions of this Act, is fur21 ther amended by adding at the end the following new

22 clauses:

23 ‘‘(vii) the amount of the payment received under

24 this section by public housing agencies shall be cal25 culated to include—
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1 ‘‘(I) benefits (including health care and

2 pensions, annuities, and other retirement bene3 fits) of employees of the agency;

4 ‘‘(II) the amount of any reduced revenue re5 sulting from the amendments made by sub6 sections (b) and (c) of section 573 of the Cran7 ston-Gonzalez National Affordable Housing Act;

8 ‘‘(III) maintenance deferred;

9 ‘‘(IV) utility costs attributable to air condi10 tioning; and

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

12 public housing, attributable to increases in the

13 number of incidents of vandalism and crime in

14 the housing; and

15 ‘‘(viii) the amount of the payment received under

16 this section by a public housing agency for a fiscal

17 year shall be determined taking into consideration the

18 actual expenses for the agency for the preceding fiscal

19 year.’’.

20 SEC. 122. ELIGIBLE USES OF EMERGENCY MODERNIZATION

21 FUNDS.

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

23 1937 (42 U.S.C. 1437l(k)(1)) is amended—

24 (1) in the first sentence, by striking

25 ‘‘$75,000,000’’ and inserting ‘‘$50,000,000’’; and
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1 (2) by adding at the end the following new sen2 tence: ‘‘The Secretary shall make any amounts re3 served under this paragraph for any fiscal year that

4 remain unobligated on September 1 of such fiscal

5 year available for modernization needs in connection

6 with the settlement of litigation and desegregation of

7 public housing. Of the amounts reserved each year

8 under this paragraph, the Secretary shall make avail9 able to the Inspector General of the Department of

10 Housing and Urban Development not more than

11 $5,000,000 for cost in connection with efforts to com12 bat violent crime in public housing. Using amounts

13 made available pursuant to the preceding sentence

14 during fiscal years 1995 and 1996, the Secretary

15 shall provide amounts in each such fiscal year for the

16 continuation of the drug elimination activities under

17 Project Nos. IA05PO98003004 and

18 IA05DEP0980193.’’.

19 SEC. 123. USE OF MODERNIZATION FUNDS FOR REPLACE20 MENT HOUSING.

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

22 Housing Act of 1937 (42 U.S.C. 1437l) is amended by add23 ing at the end the following new subsection:

24 ‘‘(q) USE OF AMOUNTS FOR REPLACEMENT HOUS25 ING.—
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1 ‘‘(1) AUTHORITY.—A public housing agency may

2 use assistance under this section to provide replace3 ment housing as required by section 18 by developing

4 additional housing under this Act, in accordance with

5 requirements applicable to the development of public

6 housing, but only if the cost of providing such housing

7 (not including costs of demolition) is more cost effec8 tive than the cost of modernization of the housing pro9 posed to be replaced.

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

11 year, a public housing agency may not use more than

12 50 percent of any assistance provided to the agency

13 under this section for the fiscal year for providing re14 placement housing pursuant to this section.

15 ‘‘(3) REQUIREMENTS.—A public housing agency

16 may use assistance under this section as provided in

17 subsection (a) only if the replacement of units is in18 cluded in the replacement plan of the agency.’’.

19 (b) AVAILABLE REPLACEMENT HOUSING.—Section

20 14(c)(1) of the United States Housing Act of 1937 is

21 amended by inserting before the semicolon the following:

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

23 subsection (q), housing or units in housing owned (or leased

24 for a period to be determined by the Secretary) by a part-
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1 nership of a public housing agency and other entity in

2 which the agency has a controlling interest’’.

3 SEC. 124. DEMOLITION AND DISPOSITION OF PUBLIC

4 HOUSING.

5 Section 18 of the United States Housing Act of 1937

6 (42 U.S.C. 1437p) is amended to read as follows:

7 ‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING

8 ‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec9 retary may approve an application by a public housing

10 agency for permission to demolish or dispose of a public

11 housing project or a portion of a public housing project only

12 if the Secretary has determined that—

13 ‘‘(1) in the case of—

14 ‘‘(A) an application proposing demolition

15 of a public housing project or a portion of a pub16 lic housing project, the project or portion of the

17 project is obsolete as to physical condition, loca18 tion, or other factors, and it is more cost effective

19 to replace the project or portion of the project

20 than to rehabilitate the project or portion of the

21 project; or

22 ‘‘(B) an application proposing the demoli23 tion of only a portion of a project, the demolition

24 will help to assure the remaining useful life of

25 the remaining portion of the project;
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1 ‘‘(2) in the case of an application proposing dis2 position of real property of a public housing agency

3 by sale or other transfer—

4 ‘‘(A)(i) the property’s retention is not in the

5 best interests of the tenants or the public housing

6 agency because (I) developmental changes in the

7 area surrounding the project adversely affect the

8 health or safety of the tenants or the feasible op9 eration of the project by the public housing agen10 cy, (II) disposition will allow the acquisition,

11 development, or rehabilitation of other properties

12 which will be more efficiently or effectively oper13 ated as low-income housing and which will pre14 serve the total amount of low-income housing

15 stock available in the community or housing suf16 ficient to address the needs of the community as

17 described in the comprehensive housing afford18 ability strategy under section 105 of the Cran19 ston-Gonzalez National Affordable Housing Act,

20 or (III) because of other factors which the Sec21 retary determines are consistent with the best in22 terests of the tenants and public housing agency

23 and which are not inconsistent with other provi24 sions of this Act; and
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1 ‘‘(ii) for property other than dwelling units,

2 the property is excess to the needs of a project or

3 the disposition is incidental to, or does not inter4 fere with, continued operation of a project; and

5 ‘‘(B) the net proceeds of the disposition will

6 be used for (i) the payment of development costs

7 for the replacement housing and for the retire8 ment of outstanding obligations issued to finance

9 original development or modernization of the

10 project, which, in the case of scattered-site hous11 ing of a public housing agency, shall be in an

12 amount that bears the same ratio to the total of

13 such costs and obligations as the number of units

14 disposed of bears to the total number of units of

15 the project at the time of disposition, and (ii) to

16 the extent that any proceeds remain after the ap17 plication of proceeds in accordance with clause

18 (i), the provision of housing assistance for low19 income families through such measures as mod20 ernization of low-income housing, or the acquisi21 tion, development, or rehabilitation of other

22 properties to operate as low-income housing; or

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

24 demolition or disposition of any portion of a public
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•HR 3838 RH

1 housing project, assisted at any time under section

2 5(j)(2)—

3 ‘‘(A) such assistance has not been provided

4 for the portion of the project to be demolished or

5 disposed within the 10-year period ending upon

6 submission of the application; or

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

8 best interest of the tenants or the public housing

9 agency because of changes in the area surround10 ing the project or other circumstances of the

11 project, as determined by the Secretary.

12 ‘‘(b) TENANT INVOLVEMENT AND REPLACEMENT

13 HOUSING.—The Secretary may approve an application or

14 furnish assistance under this section or under this Act only

15 if the following requirements are met:

16 ‘‘(1) TENANT CONSULTATION AND EMPLOY17 MENT.—The application from the public housing

18 agency—

19 ‘‘(A) has been developed in consultation

20 with tenants and tenant councils, if any, who

21 will be affected by the demolition or disposition;

22 ‘‘(B) includes a plan to employ public hous23 ing tenants in construction or rehabilitation to

24 the extent practicable, pursuant to section 3 of
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•HR 3838 RH

1 the Housing and Urban Development Act of

2 1968; and

3 ‘‘(C) contains a certification by appropriate

4 local government officials that the proposed ac5 tivity is consistent with the applicable com6 prehensive housing affordability strategy under

7 section 105 of the Cranston-Gonzalez National

8 Affordable Housing Act.

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

10 be relocated as a result of the demolition or disposi11 tion will be provided assistance by the public housing

12 agency and are relocated to other decent, safe, sani13 tary, and affordable housing, which is, to the maxi14 mum extent practicable, housing of their choice, in15 cluding housing assisted under section 8 of this Act.

16 ‘‘(3) REPLACEMENT HOUSING.—The public hous17 ing agency has developed a plan that provides for ad18 ditional decent, safe, sanitary, and affordable dwell19 ing unit for each public housing dwelling unit to be

20 demolished or disposed under such application or pro21 vides additional dwelling units sufficient to address

22 the needs and demographic characteristics of the num23 ber of applicants on the waiting list of the agency

24 equal to the number of units to be demolished or dis25 posed of or the needs of the community as described
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•HR 3838 RH

1 in the comprehensive housing affordability strategy

2 under section 105 of the Cranston-Gonzalez National

3 Affordable Housing Act, which plan—

4 ‘‘(A) provides for the provision of such ad5 ditional dwelling units through—

6 ‘‘(i) the acquisition or development of

7 additional public housing dwelling units,

8 which may be units in housing owned (or

9 leased for a period to be determined by the

10 Secretary) by a partnership of a public

11 housing agency and other entity in which

12 the agency has a controlling interest;

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

14 assistance under section 8;

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

16 proposing demolition or disposition of 200

17 or more units, the use of tenant-based as18 sistance under section 8 having a term of

19 not less than 5 years;

20 ‘‘(iv) units acquired or otherwise pro21 vided for homeownership (including cooper22 ative and condominium interests) by public

23 housing residents under section 5(h), sub24 title B or C of title IV of the Cranston-Gon25 zalez National Affordable Housing Act, or
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•HR 3838 RH

1 other programs for homeownership that

2 have program requirements substantially

3 equivalent to the requirements established

4 under section 605 of the Housing and Com5 munity Development Act of 1987;

6 ‘‘(v) affordable housing homeownership

7 units assisted under title II of the Cranston8 Gonzalez National Affordable Housing Act

9 and sold to public housing residents;

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

11 under title II of the Cranston-Gonzalez Na12 tional Affordable Housing Act (notwith13 standing section 212(d)(2) of such Act), or

14 (II) assisted under a State or local rental

15 assistance program that provides for rental

16 assistance over a term of not less than 15

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

19 under section 8, except that this subclause

20 shall only apply in cases provided under

21 subparagraph (C);

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

23 under section 42 of the Internal Revenue

24 Code;
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•HR 3838 RH

1 ‘‘(viii) housing acquired from the Reso2 lution Trust Corporation or the Federal De3 posit Insurance Corporation;

4 ‘‘(ix) housing acquired under section

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

7 ‘‘(x) other manners approved by the

8 Secretary; or

9 ‘‘(xi) any combination of such methods;

10 ‘‘(B) in the case of an application propos11 ing demolition or disposition of 200 or more

12 units, shall provide that—

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

14 additional dwelling units shall be provided

15 through the acquisition or development of

16 additional dwelling units or through

17 project-based assistance; and

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

19 additional dwelling units shall be provided

20 through tenant-based assistance under sec21 tion 8 having a term of not less than 5

22 years;

23 ‘‘(C) if it provides for the use of tenant24 based assistance provided under section 8 or oth25 erwise, may be approved—
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•HR 3838 RH

1 ‘‘(i) only after a finding by the Sec2 retary that replacement with project-based

3 assistance is not feasible, and the supply of

4 private rental housing actually available to

5 those who would receive such assistance

6 under the plan is sufficient for the total

7 number of families in the community as8 sisted with tenant-based assistance after im9 plementation of the plan and that such sup10 ply is likely to remain available for the full

11 term of the assistance; and

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

13 objective information, which shall include

14 rates of participation by landlords in the

15 section 8 program, size, conditions and rent

16 levels of available rental housing as com17 pared to section 8 standards, the supply of

18 vacant existing housing meeting the section

19 8 housing quality standards with rents at

20 or below the fair market rental, the number

21 of eligible families waiting for public hous22 ing or housing assistance under section 8,

23 and the extent of discrimination against the

24 types of individuals or families to be served

25 by the assistance;
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•HR 3838 RH

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

2 additional dwelling units may be located outside

3 the jurisdiction of the public housing agency (in

4 this subparagraph referred to as the ‘original

5 agency’) if—

6 ‘‘(i) the location is in the same housing

7 market area as the original agency, as de8 termined by the Secretary; and

9 ‘‘(ii) the plan contains an agreement

10 between the original agency and the public

11 housing agency in the alternate location or

12 other public or private entity that will be

13 responsible for providing the additional

14 units in the alternate location that such al15 ternate agency or entity will, with respect

16 to the dwelling units involved—

17 ‘‘(I) provide the dwelling units in

18 accordance with subparagraph (A);

19 ‘‘(II) complete the plan on sched20 ule in accordance with subparagraph

21 (F);

22 ‘‘(III) meet the requirements of

23 subparagraph (G) of this paragraph

24 and the maximum rent provisions of

25 subparagraph (H);
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•HR 3838 RH

1 ‘‘(IV) not impose a local residency

2 preference on any resident of the juris3 diction of the original agency for pur4 poses of admission to any such units;

5 and

6 ‘‘(V) allow that preference for ad7 mission to any such additional units

8 may be provided to residents of the se9 verely distressed public housing dwell10 ing units replaced under this subpara11 graph pursuant to section 24;

12 ‘‘(E) includes a schedule for completing the

13 plan within a period consistent with the size of

14 the proposed demolition or disposition and re15 placement plan, which—

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

17 that the Secretary may extend the schedule

18 to not more than 10 years if the Secretary

19 determines that good cause exists to extend

20 the implementation of the replacement plan

21 under this subsection; and

22 ‘‘(ii) the demolition or disposition

23 under the plan can occur in phases nec24 essary to provide for relocation of tenants

25 under paragraph (2);
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•HR 3838 RH

1 ‘‘(F) includes a method of ensuring that the

2 same number of individuals and families will be

3 provided housing;

4 ‘‘(G) provides for the payment of the reloca5 tion expenses of each tenant to be displaced and

6 ensures that the rent paid by the tenant follow7 ing relocation will not exceed the amount per8 mitted under this Act; and

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

10 demolish or dispose of any unit until the tenant

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

12 and affordable housing; and

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

14 take any actions necessary to complete the plan

15 if the public housing agency fails, without good

16 cause, to carry out its obligations under the

17 plan.

18 ‘‘(c) LIMITATION ON DEMOLITION AND EXEMPTION.—

19 ‘‘(1) MAXIMUM PERCENTAGE.—Notwithstanding

20 any other provision of this section, in any 5-year pe21 riod a public housing agency may demolish not more

22 than the lesser of 5 dwelling units or 5 percent of the

23 total dwelling units owned and operated by the public

24 housing agency, without providing an additional

25 dwelling unit for each such public housing dwelling
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•HR 3838 RH

1 unit to be demolished, but only if the space occupied

2 by the demolished unit is used for meeting the service

3 or other needs of public housing residents.

4 ‘‘(2) SITE AND NEIGHBORHOOD STANDARDS EX5 EMPTION.—Notwithstanding any other provision of

6 law, a replacement plan under subsection (b)(3) may

7 provide for demolition of public housing units and re8 placement of such units on site or in the same neigh9 borhood if the number of replacement units provided

10 in the same neighborhood is fewer than the number of

11 units demolished and the balance of replacement units

12 are provided elsewhere in the jurisdiction or pursuant

13 to subsection (b)(3)(D).

14 ‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With re15 spect to any dwelling units developed, acquired, or leased

16 by a public housing agency pursuant to a replacement plan

17 under subsection (b)(3)—

18 ‘‘(1) assistance may be provided under section 9

19 for such units; and

20 ‘‘(2) such units shall be available for occupancy,

21 operated and managed in the manner required for

22 public housing, and shall be subject to the other re23 quirements applicable to public housing dwelling

24 units.

25 ‘‘(e) APPROVAL OF APPLICATIONS.—
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1 ‘‘(1) IN GENERAL.—The Secretary shall notify a

2 public housing agency submitting an application

3 under this section for demolition or disposition and

4 replacement of a public housing project or portion of

5 a project of the approval or disapproval of the appli6 cation not later than 60 days after receiving the ap7 plication. If the Secretary does not notify the public

8 housing agency as required under this paragraph or

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

10 have been approved.

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

12 Secretary disapproves an application, the Secretary

13 shall specify in the notice of disapproval the reasons

14 for the disapproval and the agency may resubmit the

15 application as amended or modified.

16 ‘‘(3) ANNUAL REPORT.—The Secretary shall sub17 mit a report to the Congress annually describing for

18 the year the applications under this section approved

19 and disapproved, the number, general condition, and

20 location of units demolished or disposed of, and the

21 number, general condition, location and method of

22 provision of units of replacement housing provided

23 pursuant to this section.

24 ‘‘(f) ACTION BEFORE APPROVAL OF APPLICATION.—
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•HR 3838 RH

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

2 agency shall not take any action to demolish or dis3 pose of a public housing project or a portion of a pub4 lic housing project without obtaining the approval of

5 the Secretary and satisfying the conditions specified

6 in subsections (a) and (b).

7 ‘‘(2) ALLOWABLE RELOCATION.—A public hous8 ing agency may relocate tenants of public housing

9 into other dwelling units before the approval of an

10 application under this section for demolition or dis11 position or prior to implementing a plan for mod12 ernization under section 14 or 24, if units to be de13 molished or disposed of are not decent, safe, and sani14 tary, or if the units to be rehabilitated can not be

15 maintained cost-effectively in a decent, safe, and sani16 tary condition.

17 ‘‘(g) ASSISTANCE FOR REPLACEMENT HOUSING.—The

18 Secretary may provide assistance under this subsection

19 for—

20 ‘‘(1) providing replacement public housing units

21 pursuant to subsection (b)(3)(A) for units demolished

22 or disposed of pursuant to this section; and

23 ‘‘(2) providing assistance under section 8 for re24 placement housing pursuant to subsection (b)(3)(A)
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1 for units demolished or disposed of pursuant to this

2 section.

3 ‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME4 OWNERSHIP PROGRAM.—The provisions of this section shall

5 not apply to the disposition of a public housing project in

6 accordance with an approved homeownership program

7 under title III of this Act.

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

9 ‘‘(1) REQUIREMENTS FOR WAIVER.—The Sec10 retary shall waive the applicability of the provisions

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

12 under this section by a public housing agency for the

13 demolition or disposition of public housing dwelling

14 units if—

15 ‘‘(A) the Secretary determines, based on in16 formation provided by the public housing agency

17 in the application and the request under para18 graph (2), that—

19 ‘‘(i) the requirements under subsection

20 (b)(3) are preventing or interfering with the

21 development or acquisition of new public

22 housing dwelling units by the agency;

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

24 in requesting the waiver under this sub25 section is to increase the number of habit-
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1 able public housing dwelling units of the

2 agency;

3 ‘‘(iii) maintaining and operating the

4 dwelling units to be demolished or disposed

5 of is not cost effective; and

6 ‘‘(iv) sufficient financial assistance is

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

8 housing agency to rehabilitate or replace all

9 or some of the units;

10 ‘‘(B) the Secretary determines that replac11 ing the dwelling units to be demolished or dis12 posed under the application is unnecessary be13 cause other affordable housing is available in the

14 area in which the units are located, and in mak15 ing such determination the Secretary shall con16 sider the assessment submitted by the public

17 housing agency under paragraph (2)(C); and

18 ‘‘(C) the public housing agency requests a

19 waiver under this subsection in accordance with

20 the requirements under paragraph (2).

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

22 a waiver under this subsection, a public housing

23 agency shall submit to the Secretary a request for a

24 waiver under this subsection that includes—
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1 ‘‘(A) a comprehensive plan for demolition,

2 disposition, and replacement that describes addi3 tional dwelling units to be made available by the

4 public housing agency;

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

6 for which the waiver is requested; and

7 ‘‘(C) an assessment of the need of replacing

8 such dwelling units including the unit size, age,

9 general condition, and length of time such units

10 have been vacant, the condition of the neighbor11 hood in which the dwelling units are located,

12 and the availability of dwelling units affordable

13 to low-income families within the jurisdiction in

14 which the dwelling units are located, during the

15 implementation of the replacement plan.

16 ‘‘(3) SUBMISSION TO SECRETARY.—A request for

17 a waiver under this subsection may be submitted at

18 any time. The request shall be submitted to the Sec19 retary by certified mail or any other equivalent

20 means that provides notification to the public housing

21 agency making the request of the date of receipt by

22 the Secretary.

23 ‘‘(4) NOTICE OF DISPOSITION OF REQUEST.—Ex24 cept as provided in paragraph (5), the Secretary shall

25 notify a public housing agency requesting a waiver
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1 under this section of the approval or disapproval of

2 the request not later than 45 days after receiving the

3 request. If the Secretary does not notify the public

4 housing agency as required under this paragraph or

5 paragraph (5), the request for a waiver shall be con6 sidered to have been approved.

7 ‘‘(5) REQUEST FOR ADDITIONAL INFORMATION.—

8 If the Secretary determines that more information is

9 needed to make the determinations under paragraph

10 (1) than has been provided by the public housing

11 agency, the Secretary shall notify the agency in writ12 ing not later 30 days after receiving the request for

13 the waiver that additional information is necessary.

14 Such notice shall describe specifically the additional

15 information required for the determinations and es16 tablish a deadline for the submission of the informa17 tion by the agency, which shall be determined based

18 on the difficulty of obtaining the information re19 quested. If the agency submits such additional infor20 mation requested before the deadline established in the

21 notice under this paragraph, the Secretary shall no22 tify the agency requesting the waiver that the request

23 is approved or disapproved not later than 30 days

24 after the submission of such additional information.
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1 ‘‘(6) STATEMENT OF REASONS FOR DENYING OR

2 APPROVING REQUEST.—The Secretary shall include,

3 in each notice under paragraph (4) or (5) of the de4 nial or approval of a request for a waiver under this

5 subsection, the specific reasons for denying or approv6 ing the request. The denial of any request for a waiv7 er for public housing dwelling units shall not preju8 dice the consideration of any other subsequent request

9 for such a waiver for any of such dwelling units.’’.

10 SEC. 125. PUBLIC HOUSING RESIDENT OPPORTUNITY.

11 Section 20 of the United States Housing Act of 1937

12 (42 U.S.C. 1437r) is amended—

13 (1) by striking the section heading and inserting

14 the following new section heading:

15 ‘‘RESIDENT OPPORTUNITY PROGRAM’’;

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

17 striking ‘‘resident management program’’ each place

18 it appears and inserting ‘‘resident opportunity pro19 gram’’; and

20 (3) in subsection (f)—

21 (A) by striking ‘‘RESIDENT MANAGEMENT

22 TECHNICAL ASSISTANCE AND TRAINING’’ and in23 serting ‘‘RESIDENT OPPORTUNITY ASSISTANCE’’;

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

25 the following new sentence: ‘‘In addition, the

26 Secretary may provide financial assistance to
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1 resident management corporations or resident

2 councils for activities sponsored by resident orga3 nizations for job training, economic development,

4 security, and other self-sufficiency activities be5 yond those related to the management of public

6 housing.’’;

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

8 ‘‘$100,000’’ and inserting ‘‘$250,000’’;

9 (D) by striking paragraph (3) and insert10 ing the following new paragraph:

11 ‘‘(3) FUNDING.—Of any amounts made available

12 for financial assistance under section 14, the Sec13 retary may use to carry out this subsection

14 $25,000,000 for fiscal year 1995 and $25,000,000 for

15 fiscal year 1996.’’;

16 (E) by redesignating paragraphs (2)

17 through (4) as paragraphs (3) through (5), re18 spectively;

19 (F) by inserting after paragraph (1) the fol20 lowing new paragraph:

21 ‘‘(2) OTHER USES OF ASSISTANCE.—The Sec22 retary may use amounts available to carry out this

23 subsection to enter into contracts with—

24 ‘‘(A) various entities for monitoring, eval25 uation, technical assistance, and information
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1 dissemination in connection with activities

2 under this subsection; and

3 ‘‘(B) resident organizations and public or

4 private entities for activities that support the

5 economic development and increased self-suffi6 ciency of public housing residents.

7 Eligible activities related to economic development

8 and self-sufficiency may include programs for coun9 seling, treatment for substance abuse, child care, re10 medial education, job training, and development of

11 resident businesses.’’.

12 SEC. 126. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

13 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

14 22(k) of the United States Housing Act of 1937 (42 U.S.C.

15 1437t(k)) is amended to read as follows:

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

17 are authorized to be appropriated to carry out this section

18 $50,000,000 for fiscal year 1995 and $50,000,000 for fiscal

19 year 1996.’’.

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

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

22 (1) in the matter preceding paragraph (1) by in23 serting before ‘‘to provide’’ the following: ‘‘to provide

24 job training and employment services to public hous25 ing residents in connection with public and private
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1 sector jobs generated by construction, modernization,

2 maintenance, and supportive service activities of pub3 lic housing and other housing projects and programs

4 assisted by the Department of Housing and Urban

5 Development and’’;

6 (2) by redesignating paragraphs (2), (3), and

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

8 (3) by inserting after paragraph (1) the follow9 ing new paragraph:

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

11 develop training and apprenticeship programs, assist12 ing businesses of public housing residents, and other

13 employment-related activities;’’; and

14 (4) by adding at the end the following new flush

15 sentence:

16 ‘‘The provision of services under this section shall be consid17 ered the provision of housing for purposes of section 3 of

18 the Housing and Urban Development Act of 1968.’’.

19 (c) ELIMINATION OF SUPPORTIVE SERVICES CAP.—

20 Section 22(c)(4) of the United States Housing Act of 1937

21 is amended by striking ‘‘not more than 15 percent of’’.

22 (d) ECONOMIC OPPORTUNITY ACTIVITIES.—Section 22

23 of the United States Housing Act of 1937 is amended—

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

25 following new subsection:
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1 ‘‘(b) GRANT AUTHORITY.—The Secretary may make

2 grants to public housing agencies to adapt and provide sites

3 in or near public housing for providing services to help fam4 ilies residing in the public housing gain better access to edu5 cational and job opportunities to achieve self-sufficiency

6 and independence, and to provide such services. Assistance

7 under this section may be made available only to public

8 housing agencies that demonstrate to the satisfaction of the

9 Secretary that supportive services (as such term is defined

10 in subsection (j)) will be made available. Facilities assisted

11 under this section shall be located in or near the premises

12 of public housing.’’;

13 (2) in subsection (c)(3), by striking ‘‘the renova14 tion of facilities located near the premises of 1 or

15 more public housing projects’’ and inserting the fol16 lowing: ‘‘the acquisition of facilities located near the

17 premises of 1 or more public housing projects, the ac18 quisition and renovation of such facilities, or the ren19 ovation of such facilities,’’; and

20 (3) in subsection (j)—

21 (A) in the first sentence, by inserting before

22 the period at the end the following: ‘‘(including

23 opportunities under a Family Self-Sufficiency

24 program under section 23 of this Act, subtitle D

25 of title IV of the Cranston-Gonzalez National Af-
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1 fordable Housing Act, and the Job Training

2 Partnership Act) and to facilitating participa3 tion in such opportunities’’;

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

5 the end;

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

7 and (6) as paragraphs (5), (6), and (15), respec8 tively; and

9 (D) by inserting after paragraph (3) the fol10 lowing new paragraph:

11 ‘‘(4) English language education for persons hav12 ing no or limited proficiency in English;’’; and

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

14 redesignated) the following new paragraphs:

15 ‘‘(7) providing a job bank of available employ16 ment positions;

17 ‘‘(8) assisting contractors, contractor associa18 tions, and joint labor-management committees to de19 velop and assist training and apprenticeship pro20 grams;

21 ‘‘(9) funding start-up costs of business employ22 ing, or owned by, public housing residents;

23 ‘‘(10) providing coordination with related gov24 ernment and private programs;
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1 ‘‘(11) carrying out job-related activities nec2 essary to establish and operate a family investment

3 center, including training, supervision of trainees,

4 and job recruitment;

5 ‘‘(12) apprenticeship training of public housing

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

8 housing and other housing assisted by the Department

9 of Housing and Urban Development;

10 ‘‘(13) employing public housing residents in

11 modernization, maintenance, and operation of public

12 housing and other housing assisted by the Department

13 of Housing and Urban Development;

14 ‘‘(14) training and employing public housing

15 residents in jobs providing supportive services to resi16 dents participating in the program for family self17 sufficiency and other economic independence; and’’.

18 SEC. 127. REVITALIZATION OF SEVERELY DISTRESSED PUB19 LIC HOUSING.

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

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

22 1437v(c)) is amended—

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

24 inserting ‘‘$300,000’’;

25 (2) in paragraph (3)—
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1 (A) in subparagraph (G), by striking ‘‘de2 signing a suitable replacement housing plan’’

3 and inserting ‘‘designing suitable relocation and

4 replacement housing plans’’;

5 (B) by redesignating subparagraphs (E)

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

7 respectively; and

8 (C) by inserting after subparagraph (D) the

9 following new subparagraph:

10 ‘‘(E) planning for community service ac11 tivities to be carried out by residents, other mem12 bers of the community, and other persons willing

13 to contribute to the social, economic, or physical

14 improvement of the community;’’;

15 (3) in paragraph (4)—

16 (A) by redesignating subparagraphs (D)

17 and (E) as subparagraphs (E) and (F), respec18 tively; and

19 (B) by inserting after subparagraph (C) the

20 following new subparagraph:

21 ‘‘(D) to the extent the applicant is request22 ing amounts for community service activities, a

23 description of the planning activities for commu24 nity service to be carried out by residents, other

25 members of the community, and other persons
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1 willing to contribute to the social, economic, or

2 physical improvement of the community;’’; and

3 (5) in paragraph (5)—

4 (A) in subparagraph (F), by inserting be5 fore the semicolon at the end the following: ‘‘,

6 taking into consideration the condition of the

7 public housing of the public housing agency as a

8 whole’’;

9 (B) by striking subparagraph (E);

10 (C) by redesignating subparagraphs (F)

11 and (G) as subparagraphs (E) and (F), respec12 tively; and

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

14 flush material:

15 ‘‘In making grants under this subsection, the Sec16 retary may select a lower-rated application that

17 meets the requirements pursuant to this section in18 stead of a higher-rated application to increase the na19 tional geographic diversity among applications ap20 proved under this section.’’.

21 (b) IMPLEMENTATION GRANTS.—Subsection (d) of sec22 tion 24 of the United States Housing Act of 1937 is amend23 ed—

24 (1) in paragraph (2)—
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1 (A) in subparagraph (I), by striking ‘‘ex2 cept that’’ and all that follows and inserting the

3 following: ‘‘except that—

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

5 grant under this subsection may be used for

6 such purpose; and

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

8 the amount of any grant under this sub9 section used for such purposes shall be con10 tributed from non-Federal sources, and may

11 be in the form of cash, administrative costs,

12 and the reasonable value of in-kind con13 tributions, and may include funding under

14 title I of the Housing and Community De15 velopment Act of 1974.’’;

16 (B) by redesignating subparagraphs (E)

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

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

19 (C) by inserting after subparagraph (D) the

20 following new subparagraphs:

21 ‘‘(E) community service activities to be car22 ried out by residents, other members of the com23 munity, and other persons willing to contribute

24 to the social, economic, or physical improvement

25 of the community;
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1 ‘‘(F) replacement of public housing units;’’;

2 (2) in paragraph (3)—

3 (A) by redesignating subparagraphs (D)

4 and (E) as subparagraphs (E) and (F), respec5 tively; and

6 (B) by inserting after subparagraph (C) the

7 following new subparagraph:

8 ‘‘(D) to the extent the applicant is request9 ing amounts for community service activities, a

10 description of the community service activities to

11 be carried out by residents, other members of the

12 community, and other persons willing to contrib13 ute to the social, economic, or physical improve14 ment of the community;’’; and

15 (3) in paragraph (4)—

16 (A) by striking subparagraph (D) and in17 serting the following new subparagraph:

18 ‘‘(D) the quality of the proposed revitaliza19 tion program and the suitability of the project

20 for such a program;’’;

21 (B) in subparagraph (F), by inserting be22 fore the semicolon at the end the following: ‘‘,

23 taking into consideration the condition of the

24 public housing of the applicant as a whole’’; and

25 (C) by striking subparagraph (E);
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1 (D) by redesignating subparagraphs (F)

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

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

5 flush material:

6 ‘‘In making grants under this subsection, the Sec7 retary may select a lower-rated application that

8 meets the requirements pursuant to this section in9 stead of a higher-rated application to increase the na10 tional geographic diversity among applications ap11 proved under this section.’’.

12 (c) EXCEPTIONS TO GENERAL PROGRAM REQUIRE13 MENTS.—Section 24(e) of the United States Housing Act

14 of 1937 is amended—

15 (1) by striking the first sentence of paragraph

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

17 projects revitalized under this section, a public hous18 ing agency may—

19 ‘‘(A) in lieu of selecting tenants pursuant to

20 the preferences specified under section

21 6(c)(4)(A)(i), select tenants pursuant to a local

22 system of preferences;

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

24 projects available for occupancy, disregard the

25 order in which applications were made for resi-
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1 dency in public housing dwelling units or any

2 waiting lists established for such residency to

3 provide for substantial variation in the incomes

4 of families residing in the project, subject to the

5 provisions of this Act relating to income eligi6 bility in public housing projects (as modified

7 under subparagraph (C));

8 ‘‘(C) notwithstanding section 16 of this Act,

9 provide for low-income families to occupy not

10 more than 50 percent of the dwelling units in a

11 project, and

12 ‘‘(D) establish ceiling rents under section

13 3(a)(2).’’; and

14 (2) by adding at the end the following new para15 graph:

16 ‘‘(3) DEMOLITION AND REPLACEMENT.—

17 ‘‘(A) IN GENERAL.—Notwithstanding any

18 other applicable law or regulation, a revitaliza19 tion plan under this section may include demoli20 tion of public housing units and replacement of

21 such units on site or in the same neighborhood

22 if the number of replacement units provided in

23 the same neighborhood is fewer than the number

24 of units demolished as a result of the revitaliza25 tion effort.
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1 ‘‘(B) TENANT-BASED ASSISTANCE.—Not2 withstanding the limitation in subparagraph (C)

3 of section 18(b)(3), a public housing agency may

4 replace not more than one-third of the units de5 molished or disposed of through a revitalization

6 project under this section with tenant-based as7 sistance under section 8, but only if the public

8 housing agency demonstrates to the satisfaction

9 of the Secretary that the local housing market in

10 which the assistance is to be used has had a va11 cancy rate, among units whose rent does not ex12 ceed the fair market rental for the area estab13 lished under section 8(e), of more than 3 percent

14 for at least 6 consecutive months.

15 ‘‘(C) ALTERNATIVE METHODS OF REPLACE16 MENT.—A revitalization plan under this section

17 may provide for replacement of public housing

18 units in the manners under subparagraph (D) of

19 this paragraph (and not subject to the require20 ments of subparagraph (B) of section 18(b)(3)) if

21 the agency or corporation enters into such agree22 ments as the Secretary considers necessary to en23 sure that the replacement units will remain af24 fordable to families eligible for residency in pub-
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1 lic housing for the remaining useful life of the

2 units, as determined by the Secretary.

3 ‘‘(D) CERTIFICATE AND NEW UNIT MIX.—

4 Each such dwelling unit demolished, disposed of,

5 or otherwise eliminated pursuant to this para6 graph shall be replaced with an additional

7 dwelling unit through any combination of—

8 ‘‘(i) additional public housing dwelling

9 units;

10 ‘‘(ii) units or housing described in

11 clause (iv), (v), (vii), (viii), or (ix) of sec12 tion 18(b)(3)(A);

13 ‘‘(iii) rental units that are (I) assisted

14 under title II of the Cranston-Gonzalez Na15 tional Affordable Housing Act (notwith16 standing section 212(d)(2) of such Act), or

17 (II) assisted under a State or local rental

18 assistance program that provides for rental

19 assistance over a term of not less than 5

20 years that is comparable in terms of eligi21 bility and contribution to rent to assistance

22 under section 8; but this clause shall apply

23 to a revitalization program only if the

24 agency demonstrates to the satisfaction of

25 the Secretary that the local housing market
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1 in which the assistance is to be used has

2 had a vacancy rate, among units whose rent

3 does not exceed the fair market rental for

4 the area established under section 8(e), of

5 more than 3 percent for at least 6 consecu6 tive months; or

7 ‘‘(iv) other manners approved by the

8 Secretary.’’.

9 (d) DEFINITIONS.—Subsection (h) of section 24 of the

10 United States Housing Act of 1937 is amended—

11 (1) by striking paragraph (5) and inserting the

12 following new paragraphs:

13 ‘‘(6) SEVERELY DISTRESSED PUBLIC HOUSING.—

14 The term ‘severely distressed public housing’ means a

15 public housing project or building in a project that—

16 ‘‘(A) requires major redesign, reconstruc17 tion, or redevelopment, or partial or total demo18 lition, to correct serious deficiencies in the origi19 nal design (including inappropriately high pop20 ulation density), deferred maintenance, physical

21 deterioration or obsolescence of major systems,

22 and other deficiencies in the physical plant of

23 the project;

24 ‘‘(B) is—
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1 ‘‘(i)(I) occupied predominantly by

2 families with children which have extremely

3 low incomes, high rates of unemployment,

4 and extensive dependency on various forms

5 of public assistance; and

6 ‘‘(II) has high rates of vandalism and

7 criminal activity (including drug-related

8 criminal activity) in comparison to other

9 housing in the area; or

10 ‘‘(ii) has a vacancy rate, as determined

11 by the Secretary, of 50 percent or more;

12 ‘‘(C) can not be revitalized through assist13 ance under other programs, such as the programs

14 under sections 9 and 14, or through other ad15 ministrative means because of the inadequacy of

16 available amounts; and

17 ‘‘(D) in the case of an individual building,

18 the building is (in the determination of the Sec19 retary) sufficiently separable from the remainder

20 of the project of which the building is part to

21 make use of the building feasible for purposes of

22 this section.

23 ‘‘(7) SUPPORT SERVICES.—The term ‘support

24 services’ includes all activities which will promote up25 ward mobility, self-sufficiency, and improved quality
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1 of life for the residents of the public housing project

2 involved, and shall include literacy training, job

3 training, day care, and economic development activi4 ties. Support services may be provided to residents of

5 the neighborhood in which the public housing project

6 involved is located.’’;

7 (2) by redesignating paragraphs (2) through (4)

8 as paragraphs (3) through (5), respectively; and

9 (3) by inserting after paragraph (1) the follow10 ing new paragraph:

11 ‘‘(2) COMMUNITY SERVICE.—The term ‘commu12 nity service’ means services provided on a volunteer

13 or limited stipend basis for the social, economic, or

14 physical improvement of the community to be served,

15 including opportunity for the upward mobility of

16 participants providing the community service,

17 through completion of education requirements, job

18 training, or alternative methods of developing skills

19 and job readiness.’’.

20 (e) REPORTS.—Section 24(i) of the United States

21 Housing Act of 1937 is amended—

22 (1) by striking paragraph (2); and

23 (2) by redesignating paragraphs (3) and (4) as

24 paragraphs (2) and (3), respectively.
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1 (f) REPEAL.—Section 24 of the United States Housing

2 Act of 1937 (42 U.S.C. 1437v) is amended by striking sub3 section (b).

4 (g) APPLICABILITY.—Section 24 of the United States

5 Housing Act of 1937 is amended by adding at the end the

6 following new subsection:

7 ‘‘(j) APPLICABILITY.—Notwithstanding any provision

8 of this Act, with respect to a public housing project that

9 (1) has been selected for funding under this section 24 or

10 through the urban revitalization demonstration program

11 under the Departments of Veterans Affairs and Housing

12 and Urban Development, and Independent Agencies Appro13 priations Act, 1993 (Public Law 102–389, 106 Stat. 1579;

14 42 U.S.C. 1437l note) or the Departments of Veterans Af15 fairs and Housing and Urban Development, and Independ16 ent Agencies Appropriations Act, 1994 (Public Law 103–

17 124, 107 Stat. 1285; 42 U.S.C. 1437l note), and (2) has

18 an approved comprehensive plan under section 14 of this

19 Act, the Secretary may apply any provision of this section

20 and the regulations hereunder to all activities undertaken

21 at such projects only during revitalization (including ac22 tivities relating to demolition, modernization, reconstruc23 tion, site improvement, and replacement housing).’’.

24 (h) CONFORMING AMENDMENT.—The first sentence of

25 section 25(m)(1) of the United States Housing Act of 1937
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1 (42 U.S.C. 1437w(m)(1)) is amended to read as follows:

2 ‘‘The term ‘eligible housing’ means a public housing project,

3 or one or more buildings within a project, that is owned

4 or operated by a troubled public housing agency that has

5 been troubled for not less than 3 years and that, as deter6 mined by the Secretary, has failed to make substantial

7 progress toward effective management.’’.

8 (i) APPLICABILITY TO CERTAIN PROJECT.—The

9 amendments made by this section shall apply with respect

10 to assistance provided before the date of the enactment of

11 this Act under section 24 of the United States Housing Act

12 of 1937 for the Desire Housing Development, located in New

13 Orleans, Louisiana, but only to the extent that the Housing

14 Authority of New Orleans submits to the Secretary of Hous15 ing and Urban Development a description of the revitaliza16 tion program for such project describing the use of such as17 sistance under the provisions of such section 24, as amend18 ed, which is approved by the Secretary.

19 SEC. 128. PROGRAM MONITORING AND TECHNICAL ASSIST20 ANCE.

21 (a) DEFINITION.—Section 3 of the United States

22 Housing Act of 1937 (42 U.S.C. 1437a), as amended by

23 adding at the end the following new subsection:

24 ‘‘(e) TECHNICAL ASSISTANCE AND SERVICES.—As used

25 in sections 5(c)(9) and 14(k)(1)(B), the term ‘technical as-
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1 sistance and services’ shall include any or all undertakings

2 by the Secretary, directly using officials and employees of

3 the Secretary, or indirectly under contract or otherwise, re4 lated to the inspection or oversight of project or program

5 development or implementation, training and technical as6 sistance, public housing agency or Indian housing author7 ity program, project, or general management, crisis man8 agement and operations, survey research, and the prepara9 tion of reports or recommendations to the Secretary.’’.

10 (b) AVAILABILITY OF DEVELOPMENT AMOUNTS.—Sec11 tion 5(c) of the United States Housing Act of 1937 (42

12 U.S.C. 1437c(c)) is amended by adding at the end the fol13 lowing new paragraph:

14 ‘‘(9) Of any amounts appropriated pursuant to this

15 Act in fiscal year 1995 for public housing development (in16 cluding Indian housing development), the Secretary may

17 use not more than 0.5 percent for technical assistance and

18 services.’’.

19 (c) AVAILABILITY OF MODERNIZATION AMOUNTS.—

20 Section 14(k)(1) of the United States Housing Act of 1937

21 (42 U.S.C. 1437l(k)(1)), as amended by the preceding provi22 sions of this Act, is amended—

23 (1) by inserting ‘‘(A)’’ before the first sentence;

24 and
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1 (2) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) Of any amounts approved in appropriation Acts

4 for grants under this section in fiscal year 1995, the Sec5 retary may use not more than 1 percent for technical assist6 ance and services.’’.

7 SEC. 129. APPLICABILITY OF PUBLIC HOUSING AMEND8 MENTS TO INDIAN HOUSING.

9 (a) AMENDMENT.—Section 201(b) of the United States

10 Housing Act of 1937 (42 U.S.C. 1437aa(b)) is amended to

11 read as follows:

12 ‘‘(b) APPLICABILITY OF TITLE I.—Except as otherwise

13 provided by law, the provisions of title I shall apply to low14 income housing developed or operated pursuant to a con15 tract between the Secretary and an Indian housing author16 ity.’’.

17 (b) APPLICABILITY OF AMENDMENT.—The amendment

18 made by subsection (a) shall not affect provisions of the

19 United States Housing Act of 1937 that were made applica20 ble to public housing developed or operated pursuant to a

21 contract between the Secretary and an Indian housing au22 thority in accordance with section 201(b)(2) of such Act,

23 as such section existed before the effective date of this sec24 tion.
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1 (c) APPLICABILITY OF HOUSING AND COMMUNITY DE2 VELOPMENT ACT OF 1992.—The provisions of, and the

3 amendments made by, sections 103(a)(1), 112, 114, 116,

4 118, 903, and 927 of the Housing and Community Develop5 ment Act of 1992 and sections 301, 302, 303, and 304 of

6 the Multifamily Housing Property Disposition Reform Act

7 of 1994 shall apply to public housing developed or operated

8 pursuant to a contract between the Secretary and an In9 dian housing authority.

10 SEC. 130. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

11 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

12 222(g) of the Housing and Urban-Rural Recovery Act of

13 1983 (12 U.S.C. 1701z–6 note) is amended by striking the

14 first two sentences and inserting the following new sentence:

15 ‘‘There are authorized to be appropriated to carry out this

16 section $35,000,000 for fiscal year 1995 and $35,000,000

17 for fiscal year 1996.’’.

18 (b) ELIGIBILITY FOR ASSISTANCE.—Section 222(b)(1)

19 of the Housing and Urban-Rural Recovery Act of 1983 is

20 amended by inserting before the semicolon at the end the

21 following: ‘‘, except that the Secretary may make a grant

22 to provide additional assistance for an existing child care

23 center assisted under this section or to expand an existing

24 child care center regardless of whether such center was pre25 viously assisted under this section’’.
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1 (c) ASSISTANCE FOR HOMELESS FAMILIES.—Section

2 222(a)(1) of the Housing and Urban-Rural Recovery Act

3 of 1983 amended by inserting before the period at the end

4 the following: ‘‘(including, for purposes of this section,

5 homeless families with children, as defined by the Sec6 retary)’’.

7 (d) CLERICAL AMENDMENT.—The heading for section

8 222 of the Housing and Urban-Rural Recovery Act of 1983

9 is amended to read as follows: ‘‘EARLY CHILDHOOD DEVEL10 OPMENT PROGRAMS’’.

11 SEC. 131. INDIAN HOUSING CHILDHOOD DEVELOPMENT

12 SERVICES.

13 (a) FUNDING.—Section 518(a) of the Cranston-Gon14 zalez National Affordable Housing Act (12 U.S.C. 1701z–

15 6 note) is amended by striking the first and second sentences

16 and inserting the following new sentence: ‘‘There are au17 thorized to be appropriated to carry out the demonstration

18 program under this section $6,000,000 for fiscal year 1995

19 and $6,000,000 for fiscal year 1996.’’.

20 SEC. 132. PUBLIC HOUSING ONE-STOP PERINATAL SERV21 ICES DEMONSTRATION.

22 Section 521(g) of the Cranston-Gonzalez National Af23 fordable Housing Act (42 U.S.C. 1437t note) is amended

24 to read as follows:
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1 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated for carrying out the dem3 onstration program under this section such sums as may

4 be necessary for each of fiscal years 1995 and 1996.’’.

5 SEC. 133. SALE OF CERTAIN SCATTERED SITE PUBLIC

6 HOUSING.

7 Section 131 of the Housing and Community Develop8 ment Act of 1992 (Public Law 102–550; 106 Stat. 3712)

9 is amended by adding at the end the following new sentence:

10 ‘‘During the term of the annual contributions contract re11 lating to the scattered-site public housing originally sold

12 under this section, any proceeds from the disposition of re13 placement scattered-site dwellings purchased with (1) the

14 proceeds from such original disposition, or (2) the proceeds

15 from the disposition of any replacement scattered-site dwell16 ings, shall be used to purchase additional replacement scat17 tered site dwellings, which shall be considered public hous18 ing for the purposes of such Act and for which the Secretary

19 shall provide annual contributions for operation, using

20 amounts made available under section 9(c) of such Act.’’.

21 SEC. 134. ELIGIBILITY OF CERTAIN PUBLIC HOUSING FOR

22 DEMOLITION.

23 Section 415 of the Department of Housing and Urban

24 Development—Independent Agencies Appropriations Act,

25 1988 (Public Law 100–202; 101 Stat. 1329–213), is amend-
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1 ed by striking ‘‘George Loving Place, at 3320 Rupert Street,

2 Edgar Ward Place, at 3901 Holystone, Elmer Scott Place,

3 at 2600 Morris, in Dallas, Texas, or’’.

4 SEC. 135. DEMONSTRATION PROGRAM FOR INNOVATIVE

5 PUBLIC HOUSING AGENCIES AND RESIDENT

6 MANAGEMENT CORPORATIONS.

7 (a) AUTHORITY.—The Secretary may authorize public

8 housing agencies and resident management corporations to

9 carry out demonstrations for public housing that—

10 (1) test the extent to which aspects of the public

11 housing program may be exempt from certain statu12 tory requirements while continuing to serve eligible

13 families, and

14 (2) permit agencies and resident management

15 corporations to establish policies for the operation,

16 maintenance, management, and development (includ17 ing modernization) of one or more projects, without

18 regard to the requirements applicable to public hous19 ing in the United States Housing Act of 1937.

20 In establishing such policies, public housing agencies and

21 resident management corporations shall be subject to any

22 applicable State or local law.

23 (b) WAIVER OF PROVISIONS OF 1937 ACT.—For any

24 demonstration authorized under this section, the Secretary

25 may waive the applicability of any requirements of the
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1 United States Housing Act of 1937 that the Secretary deter2 mines are not consistent with the purposes of a demonstra3 tion, except requirements—

4 (1) limiting occupancy of public housing to low5 income families, as defined in section 3 of the United

6 States Housing Act of 1937;

7 (2) under section 18 of such Act requiring re8 placement of units in the case of demolition or dis9 position (except that the limitation on the use of ten10 ant-based assistance to applications proposing demo11 lition or disposition of 200 or more units may be

12 waived); and

13 (3) relating to labor standards.

14 (c) REPLACEMENT HOUSING.—

15 (1) AUTHORITY.—In authorizing a demonstra16 tion under this section, the Secretary may authorize

17 a public housing agency to demolish or dispose of

18 public housing units and replace such units on site or

19 in the same neighborhood if the number of replace20 ment units provided in the same neighborhood is

21 fewer than the number of units demolished under the

22 demonstration.

23 (2) TENANT-BASED ASSISTANCE.—Notwithstand24 ing the limitations in subparagraphs (A)(v) and (C)

25 of section 18(b)(3), a public housing agency may re-
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1 place not more than one-third of the units demolished

2 or disposed of under a demonstration under this sec3 tion with tenant-based assistance under section 8, but

4 only if the public housing agency demonstrates to the

5 satisfaction of the Secretary that the local housing

6 market in which the assistance is to be used has had

7 a vacancy rate, among units whose rent does not ex8 ceed the fair market rental for the area established

9 under section 8(e), of more than 3 percent for at least

10 6 consecutive months.

11 (3) ALTERNATIVE METHODS OF REPLACE12 MENT.—In authorizing a demonstration under this

13 section, the Secretary may authorize a public housing

14 agency to provide for replacement of public housing

15 units in the manners under paragraph (4) of this

16 subsection rather than in the manners specified under

17 the various clauses of section 18(b)(3)(A) (and not

18 subject to the requirements of subparagraph (B) of

19 section 18(b)(3)) if the agency enters into such agree20 ments as the Secretary considers necessary to ensure

21 that the replacement units will remain affordable to

22 families eligible for residency in public housing for

23 the remaining useful life of the units, as determined

24 by the Secretary.
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1 (4) CERTIFICATE AND NEW UNIT MIX.—Each

2 such dwelling unit demolished, disposed of, or other3 wise eliminated pursuant to this subsection shall be

4 replaced with an additional dwelling unit through

5 any combination of—

6 (A) additional public housing dwelling

7 units;

8 (B) units acquired or otherwise provided for

9 homeownership (including cooperative and con10 dominium interests) by public housing residents

11 under section 5(h), subtitle B or C of title IV of

12 the Cranston-Gonzalez National Affordable

13 Housing Act, or other programs for homeowner14 ship that have program requirements substan15 tially equivalent to the requirements established

16 under section 605 of the Housing and Commu17 nity Development Act of 1987;

18 (C) affordable housing homeownership units

19 assisted under title II of the Cranston-Gonzalez

20 National Affordable Housing Act and sold to

21 public housing residents;

22 (D) rental units that are (i) assisted under

23 title II of the Cranston-Gonzalez National Af24 fordable Housing Act (notwithstanding section

25 212(d)(2) of such Act), or (ii) assisted under a
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1 State or local rental assistance program that

2 provides for rental assistance over a term of not

3 less than 5 years that is comparable in terms of

4 eligibility and contribution to rent to assistance

5 under section 8; but this subparagraph shall

6 apply to a public housing agency only if the

7 agency demonstrates to the satisfaction of the

8 Secretary that the local housing market in which

9 the assistance is to be used has had a vacancy

10 rate, among units whose rent does not exceed the

11 fair market rental for area established under sec12 tion 8(e), of more than 3 percent for at least 6

13 consecutive months;

14 (E) housing assisted by a tax credit under

15 section 42 of the Internal Revenue Code;

16 (F) housing acquired from the Resolution

17 Trust Corporation or the Federal Deposit Insur18 ance Corporation;

19 (G) housing acquired under section 203 of

20 the Housing and Community Development

21 Amendments of 1978; or

22 (H) other manners approved by the Sec23 retary.

24 (d) WAIVER OF OTHER STATUTORY REQUIRE25 MENTS.—For any demonstration authorized under this sec-
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1 tion, the Secretary may also waive the applicability of any

2 provision of law that applies to the projects under the dem3 onstration and that the Secretary determines is not consist4 ent with the purposes of a demonstration, except that the

5 Secretary may not waive any provision of the Uniform Re6 location Assistance and Real Property Acquisition Policies

7 Act of 1970 or any other provision of law relating to equal

8 opportunity, nondiscrimination, or the environment.

9 (e) SELECTION OF DEMONSTRATIONS.—

10 (1) SCOPE.—The Secretary may select not more

11 than 25 public housing agencies or resident manage12 ment corporations (or a combination of both) to carry

13 out not more than 25 demonstrations under this sec14 tion. Not more than 5 of the agencies selected may be

15 agencies designated pursuant to section 6(j) of the

16 United States Housing Act of 1937 as troubled or

17 troubled with respect to the public housing moderniza18 tion program under section 14 of such Act.

19 (2) CRITERIA.—The Secretary shall select agen20 cies and corporations based on selection criteria estab21 lished by the Secretary, which shall include the fol22 lowing factors:

23 (A) The need for a range of project sizes.
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1 (B) The need for a range of types of public

2 housing agencies and resident management cor3 porations.

4 (C) The potential effects and benefits that

5 the variations proposed by the agency or cor6 poration could have on the public housing pro7 gram if the variations were adopted for the

8 whole program.

9 (f) REQUIREMENTS.—The Secretary may authorize a

10 demonstration program under this section only if the Sec11 retary determines that the demonstration—

12 (1) would not, over the term of the demonstra13 tion, result in the Federal Government incurring

14 greater costs than the government would otherwise

15 incur if the demonstration were not authorized;

16 (2) is consistent with the overall purposes of the

17 public housing program;

18 (3) is evaluated by an independent party; and

19 (4) is consistent with the Fair Housing Act, title

20 VI of the Civil Rights Act of 1964, section 504 of the

21 Rehabilitation Act of 1973, the Age Discrimination

22 Act of 1975, and the National Environmental Policy

23 Act of 1969.

24 (g) AUTHORITY TO ESTABLISH ADDITIONAL REQUIRE25 MENTS.—In authorizing a demonstration under this sec-
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1 tion, the Secretary may impose such requirements as the

2 Secretary considers to be appropriate to further the pur3 poses of the demonstration.

4 (h) REPORTS.—

5 (1) REPORT ON DEMONSTRATION.—For each

6 demonstration site, the public housing agency or resi7 dent management corporation carrying out the dem8 onstration shall submit an annual progress report to

9 the Secretary. For each demonstration carried out

10 under this section, the Secretary shall submit a report

11 to Congress not later than 1 year after completion of

12 the demonstration, describing the results of the dem13 onstration and making any recommendations for leg14 islation.

15 (2) REPORT ON WAIVER FOR NEW YORK CITY.—

16 The Secretary shall conduct a study of the advisabil17 ity, practicality, and effects of exempting the New

18 York City Housing Authority from any provisions of

19 law or regulation establishing requirements for the

20 site on which, and neighborhood in which, public

21 housing is developed. The Secretary shall submit a re22 port to the Congress not later than 6 months after the

23 date of the enactment of this Act describing the results

24 of the study and making a recommendation with re25 spect to such exemption.
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1 (i) TERM OF DEMONSTRATIONS.—The authority to

2 carry out a demonstration program under this section shall

3 be effective only for the period specified by the Secretary

4 in authorizing the demonstration program, which may not

5 exceed 5 years.

6 (j) DEFINITIONS.—For purposes of this section, the fol7 lowing definitions shall apply:

8 (1) The terms ‘‘public housing agency’’ and

9 ‘‘agency’’ mean a public housing agency, as such term

10 is defined in section 3(b) of the United States Hous11 ing Act of 1937.

12 (2) The terms ‘‘resident management corpora13 tion’’ and ‘‘corporation’’ mean a resident manage14 ment corporation established in accordance with re15 quirements of the Secretary under section 20 of the

16 United States Housing Act of 1937.

17 (3) The term ‘‘Secretary’’ means the Secretary of

18 Housing and Urban Development.

19 (k) AUTHORIZATION OF APPROPRIATIONS.—There is

20 authorized to be appropriated $1,000,000 for the evaluation

21 of demonstrations under this section.
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1 SEC. 136. DEMONSTRATION PROGRAM FOR OCCUPANCY OF

2 OTHERWISE VACANT PUBLIC HOUSING UNITS

3 BY MODERATE-INCOME FAMILIES.

4 (a) AUTHORITY.—The Secretary of Housing and

5 Urban Development may carry out a demonstration pro6 gram under which public housing agencies may lease units

7 in public housing projects assisted under the United States

8 Housing Act of 1937 to moderate-income families, as such

9 term is defined by the Secretary.

10 (b) REQUIREMENTS FOR PARTICIPATION.—The Sec11 retary may approve a request by a public housing agency

12 to participate in the demonstration program only if the

13 Secretary determines that—

14 (1) the units proposed for leasing to moderate-in15 come families would otherwise remain vacant;

16 (2) the agency has demonstrated that it has ac17 tively marketed the units to eligible families and that

18 eligible families are not available to fill the units cov19 ered by the application and are not expected to be

20 available for at least 12 months; and

21 (3) the agency has agreed not to provide tenant22 based assistance under the United States Housing Act

23 of 1937 for unit sizes available for occupancy under

24 the demonstration.

25 (c) DURATION.—The Secretary may authorize a public

26 housing agency to participate in the demonstration for up
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1 to a 2-year term and may extend the term for additional

2 periods of up to 2 years, if the agency submits another ap3 plication that meets the requirements of this section.

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

5 TAXES.

6 The Comptroller General of the United States shall

7 conduct a study of the payments made during recent years

8 by public housing agencies to State and local governments

9 in lieu of taxes, pursuant to section 6(d) of the United

10 States Housing Act of 1937, to determine whether such pay11 ments adequately compensate for the amount of taxes fore12 gone by such governments pursuant to such section. The

13 Comptroller General shall submit a report to the Congress

14 describing the results of the study not later than the expira15 tion of the 1-year period beginning on the date of the enact16 ment of this Act.

17 Subtitle C—Section 8 Assistance

18 SEC. 141. COMMUNITY INVESTMENT DEMONSTRATION PRO19 GRAM.

20 Section 6(j) of the HUD Demonstration Act of 1993

21 (42 U.S.C. 1437f note) is amended to read as follows:

22 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—Of any

23 amounts appropriated for incremental assistance under sec24 tion 8 of the United States Housing Act of 1937, the Sec25 retary may use not more than $150,000,000 in fiscal year
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1 1995 and $200,000,000 in fiscal year 1996 to carry out

2 this section.’’.

3 SEC. 142. MERGER OF SECTION 8 RENTAL ASSISTANCE PRO4 GRAMS.

5 (a) IN GENERAL.—Section 8 of the United States

6 Housing Act of 1937 (42 U.S.C. 1437f) is amended to read

7 as follows:

8 ‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME

9 FAMILIES

10 ‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—

11 ‘‘(1) IN GENERAL.—For the purposes of aiding

12 low-income families in obtaining a decent place to

13 live and promoting economically mixed housing, the

14 Secretary may provide assistance payments with re15 spect to existing housing in accordance with the pro16 visions of this section.

17 ‘‘(2) ELDERLY HOUSING.—Notwithstanding any

18 other provision of this Act, assistance payments under

19 this section may be provided, in accordance with reg20 ulations prescribed by the Secretary, with respect to

21 some or all of the units in any project approved pur22 suant to section 202 of the Housing Act of 1959 (as

23 in effect before October 1, 1991).

24 ‘‘(b) ANNUAL CONTRIBUTIONS CONTRACTS FOR RENT25 AL ASSISTANCE.—
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1 ‘‘(1) IN GENERAL.—The Secretary may enter

2 into annual contributions contracts under this sub3 section with public housing agencies to provide rental

4 housing assistance under this section for low-income

5 families. Such annual contributions contracts shall

6 bind the Secretary to make such authority, and any

7 amendments increasing such authority, available to

8 the public housing agency for a specified period.

9 ‘‘(2) SECRETARY ACTING AS PHA.—In areas

10 where no public housing agency has been organized or

11 where the Secretary determines that a public housing

12 agency is unable to implement the provisions of this

13 section, the Secretary may enter into such contracts

14 and perform the other functions assigned to a public

15 housing agency by this section.

16 ‘‘(3) TREATMENT OF ASSISTANCE FOR SUPPORT17 IVE HOUSING FOR THE DISABLED.—The Secretary

18 may not consider the receipt by a public housing

19 agency of assistance under section 811(b)(1) of the

20 Cranston-Gonzalez National Affordable Housing Act,

21 or the amount received, in approving assistance

22 under this section for the agency or in determining

23 the amount of such assistance to be provided to the

24 agency.

25 ‘‘(c) ASSISTANCE CONTRACTS.—
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1 ‘‘(1) IN GENERAL.—Each public housing agency

2 that receives amounts under an annual contributions

3 contract may enter into assistance contracts to make

4 rental assistance payments to owners of existing

5 dwelling units in accordance with the provisions of

6 this section.

7 ‘‘(2) PHA ACTING AS OWNER.—A public housing

8 agency may contract to make rental assistance pay9 ments under this section to itself (or any agency or

10 instrumentality thereof) as the owner of dwelling

11 units, and the agency shall be subject to the same pro12 gram requirements as are applied to other owners. In

13 such cases, the Secretary may establish initial rents

14 within applicable limits.

15 ‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)

16 and 6 and any other provisions of this Act that are

17 inconsistent with the provisions of this section shall

18 not apply to assistance contracts entered into pursu19 ant to this section.

20 ‘‘(d) MAXIMUM MONTHLY RENT.—

21 ‘‘(1) IN GENERAL.—Each assistance contract en22 tered into pursuant to this section shall establish the

23 maximum monthly rent (including utilities and all

24 maintenance and management charges) that the

25 owner is entitled to receive for each dwelling unit for
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1 which rental assistance payments are to be made

2 under the contract. Except as provided in paragraph

3 (2), the maximum monthly rent shall not exceed by

4 more than 10 percent the fair market rental under

5 subsection (e) for the market area in which the dwell6 ing unit is located. If units assisted under this section

7 are exempt from local rent control while they are so

8 assisted or otherwise, the maximum monthly rent for

9 such units shall be reasonable in comparison with

10 other units in the market area that are exempt from

11 local rent control.

12 ‘‘(2) EXCEPTION.—The maximum monthly rent

13 may exceed the fair market rental—

14 ‘‘(A) by more than 10 but not more than 20

15 percent, but only if the Secretary determines that

16 special circumstances warrant such higher maxi17 mum rent or that such higher rent is necessary

18 to the implementation of a comprehensive hous19 ing affordability strategy under section 105 of

20 the Cranston-Gonzalez National Affordable

21 Housing Act; or

22 ‘‘(B) by such higher amount, only if re23 quested by the low-income family assisted and

24 approved by the public housing agency in ac25 cordance with subsection (f)(2).
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1 ‘‘(3) ANNUAL ADJUSTMENTS.—Each assistance

2 contract shall provide for adjustment in the maxi3 mum monthly rents for units covered by the contract

4 not less than annually to reflect changes in the fair

5 market rentals established under subsection (e) for the

6 housing area for similar types and sizes of dwelling

7 units or, if the Secretary determines, on the basis of

8 a reasonable formula.

9 ‘‘(4) ADJUSTMENTS DUE TO EXPENSES.—Each

10 assistance contract shall further provide for the Sec11 retary to make additional adjustments in the maxi12 mum monthly rent for units assisted under the con13 tract to the extent the Secretary determines such ad14 justments are necessary to reflect increases in the ac15 tual and necessary expenses of owning and maintain16 ing the units that have resulted from substantial gen17 eral increases in real property taxes, utility rates, or

18 similar costs that are not adequately compensated for

19 by the adjustment in the maximum monthly rent au20 thorized by paragraph (3). The Secretary shall make

21 additional adjustments in the maximum monthly

22 rent for units under contract (subject to the availabil23 ity of appropriations for contract amendments) to the

24 extent the Secretary determines such adjustments are

25 necessary to reflect increases in the actual and nec-
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1 essary expenses of owning and maintaining the units

2 that have resulted from the expiration of a real prop3 erty tax exemption.

4 ‘‘(5) ADJUSTMENTS DUE TO CRIMINAL ACTIV5 ITY.—If the Secretary determines that a project as6 sisted under this section is located in a community

7 where criminal activity is generally prevalent and the

8 operating, maintenance, and capital repair expenses

9 for the project have been substantially increased pri10 marily as a result of the prevalence of such activity,

11 the Secretary may (at the discretion of the Secretary

12 and subject to the availability of appropriations for

13 contract amendments for this purpose), on a project14 by-project basis, provide adjustments to the maximum

15 monthly rents, to a level not exceeding 120 percent of

16 the project rents, to cover the costs of maintenance, se17 curity, capital repairs, and reserves required for the

18 owner to carry out a strategy acceptable to the Sec19 retary for addressing the problem of criminal activ20 ity. The Secretary may waive the applicability of any

21 rent comparability standard required under this sub22 section to implement this paragraph.

23 ‘‘(6) ADJUSTMENTS DUE TO LEAD-BASED PAINT

24 REDUCTION FOR HOUSING RECEIVING PROJECT-BASED

25 ASSISTANCE.—The Secretary may (at the discretion
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1 of the Secretary and subject to the availability of ap2 propriations for contract amendments), on a project3 by-project basis for projects receiving project-based as4 sistance, provide adjustments to the maximum month5 ly rents to cover the costs of evaluating and reducing

6 lead-based paint hazards, as defined in section 1004

7 of the Residential Lead-Based Paint Hazard Reduc8 tion Act of 1992.

9 ‘‘(7) LIMITATIONS ON ADJUSTMENTS.—

10 ‘‘(A) GENERAL COMPARABILITY RULE.—Ad11 justments in the maximum rents under para12 graphs (3) through (6) shall not result in mate13 rial differences between the rents charged for as14 sisted units and unassisted units of similar qual15 ity, type, and age in the same market area, as

16 determined by the Secretary.

17 ‘‘(B) COMPARABILITY STUDIES.—

18 ‘‘(i) To carry out subparagraph (A),

19 the Secretary shall issue regulations to pro20 vide for conducting comparability studies

21 for projects where the Secretary has reason

22 to believe that the application of the for23 mula adjustments under paragraph (3)

24 would result in such material differences.

25 The Secretary shall conduct such studies
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1 upon the request of any owner of any

2 project, or as the Secretary determines to be

3 appropriate by establishing, to the extent

4 practicable, a modified annual adjustment

5 factor for such market area, as the Sec6 retary shall designate, that is geographi7 cally smaller than the applicable housing

8 area used for the establishment of the an9 nual adjustment factor under paragraph

10 (3). The Secretary shall establish such modi11 fied annual adjustment factor on the basis

12 of the results of a study conducted by the

13 Secretary of the rents charged, and any

14 change in such rents over the previous year,

15 for assisted units and unassisted units of

16 similar quality, type, and age in the small17 er market area. Where the Secretary deter18 mines that such modified annual adjust19 ment factor cannot be established or that

20 such factor when applied to a particular

21 project would result in material differences

22 between the rents charged for assisted units

23 and unassisted units of similar quality,

24 type, and age in the same market area, the

25 Secretary may apply an alternative meth-
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1 odology for conducting comparability stud2 ies in order to establish rents that are not

3 materially different from rents charged for

4 comparable unassisted units.

5 ‘‘(ii) If the Secretary or appropriate

6 State agency does not complete and submit

7 to the project owner a comparability study

8 not later than 60 days before the anniver9 sary date of the assistance contract under

10 this section, the automatic annual adjust11 ment factor shall be applied. The Secretary

12 may not reduce the contract rents in effect

13 on or after April 15, 1987, for newly con14 structed, substantially rehabilitated, or

15 moderately rehabilitated projects assisted

16 under this section (including projects as17 sisted under this section as in effect prior to

18 November 30, 1983), unless the project has

19 been refinanced in a manner that reduces

20 the periodic payments of the owner. Any

21 maximum monthly rent that has been re22 duced by the Secretary after April 14, 1987,

23 and prior to November 7, 1988, shall be re24 stored to the maximum monthly rent in ef25 fect on April 15, 1987.
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1 ‘‘(iii) For any project which has had

2 its maximum monthly rents reduced after

3 April 14, 1987, the Secretary shall make as4 sistance payments (from amounts reserved

5 for the original contract) to the owner of

6 such project in an amount equal to the dif7 ference between the maximum monthly rents

8 in effect on April 15, 1987, and the reduced

9 maximum monthly rents, multiplied by the

10 number of months that the reduced maxi11 mum monthly rents were in effect.

12 ‘‘(e) FAIR MARKET RENTALS.—

13 ‘‘(1) IN GENERAL.—The Secretary shall establish

14 fair market rentals under this subsection periodically,

15 but not less than annually, for existing rental dwell16 ing units suitable for occupancy by low-income fami17 lies assisted under this section. The Secretary shall es18 tablish the fair market rental by market area for var19 ious sizes and types of dwelling units. For a market

20 area, the fair market rental for any size and type of

21 dwelling unit shall be a dollar amount not less than

22 the amount that results in the rents charged for 45

23 percent of the standard quality rental units of such

24 size and type in the market area being less than such

25 dollar amount. For purposes of determining the dollar
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1 amount under the preceding sentence, the Secretary

2 shall consider only rental units occupied by house3 holds whose initial occupancy in their current units

4 commenced not more than 15 months before the deter5 mination and shall not consider public housing units

6 and units constructed less than 24 months before the

7 determination.

8 ‘‘(2) EFFECTIVENESS AND ADJUSTMENT.—The

9 Secretary shall publish proposed fair market rentals

10 for each area in the Federal Register with reasonable

11 time for public comment, and such fair market rent12 als shall become effective upon the date of publication

13 in final form in the Federal Register. Each fair mar14 ket rental in effect under this subsection shall be ad15 justed to be effective on October 1 of each year to re16 flect changes, based on the most recent available data

17 trended so the rentals will be current for the year to

18 which they apply, of rents for existing rental dwelling

19 units, as the case may be, of various sizes and types

20 in the market area suitable for occupancy by families

21 assisted under this section.

22 ‘‘(3) CERTAIN AREAS.—The Secretary shall es23 tablish separate fair market rentals under this sub24 section for Westchester County in the State of New

25 York. The Secretary shall also establish separate fair
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1 market rentals under this paragraph for Monroe

2 County in the Commonwealth of Pennsylvania. In es3 tablishing fair market rentals for the remaining por4 tion of the market areas in which Monroe County is

5 located, the Secretary shall establish the fair market

6 rentals as if such portion included Monroe County.

7 ‘‘(4) REQUIRED REVIEW.—If at any time, for

8 any public housing agency, more than 50 percent of

9 the families on behalf of whom assistance is provided

10 under this section by the agency are paying as rent

11 more than the amount specified under section 3(a) (as

12 authorized in subsection (f)(2)), the agency shall re13 view the fair market rentals established under this

14 subsection for the market areas in the jurisdiction of

15 the public housing agency.

16 ‘‘(f) AMOUNT OF MONTHLY ASSISTANCE PAYMENT AND

17 DUE PROCESS RIGHTS.—

18 ‘‘(1) IN GENERAL.—The amount of the monthly

19 assistance payment under this section with respect to

20 any dwelling unit shall be the difference between the

21 maximum monthly rent that the contract provides

22 that the owner is to receive for the unit and the rent

23 the family is required to pay under section 3(a).

24 ‘‘(2) INCREASED FAMILY PAYMENT.—A family on

25 behalf of whom tenant-based assistance payments are
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1 made under this section may pay as rent for a dwell2 ing unit assisted under this section more than the

3 amount specified under section 3(a), but only if—

4 ‘‘(A) the family notifies the public housing

5 agency of its interest in a unit renting for an

6 amount that exceeds the permissible maximum

7 monthly rent established for the market area

8 under subsection (d);

9 ‘‘(B) such agency determines that the rent

10 for the unit and the rental payments of the fam11 ily are reasonable, after taking into account

12 other family expenses (including child care, un13 reimbursed medical expenses, transportation,

14 and other appropriate family expenses; and

15 ‘‘(C) such amount does not exceed 40 per16 cent of the family’s monthly adjusted income.

17 ‘‘(3) INCREASES IN ASSISTANCE PAYMENTS.—The

18 Secretary shall take any action necessary, including

19 making contracts for assistance payments in amounts

20 exceeding the amounts required upon the initial rent21 ing of dwelling units, reserving annual contributions

22 authority for the purpose of amending assistance con23 tracts, or allocating a portion of new authorizations

24 for the purpose of amending assistance contracts, to

25 ensure that assistance payments are increased on a
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1 timely basis to cover increases in maximum monthly

2 rents or decreases in family incomes.

3 ‘‘(4) REVIEWS OF FAMILY INCOMES.—

4 ‘‘(A) IN GENERAL.—Reviews of family in5 comes for purposes of this section shall be made

6 annually and shall be subject to the provisions of

7 section 904(e) of the Stewart B. McKinney

8 Homeless Assistance Amendments Act of 1988.

9 For families for whom an increased rental pay10 ment has been approved under paragraph (2),

11 such review shall include determining whether

12 the rent for the unit and the rental payments of

13 the family continue to be reasonable, in accord14 ance with subparagraphs (B) and (C) of para15 graph (2).

16 ‘‘(B) PROCEDURES.—The Secretary shall

17 establish procedures that are appropriate and

18 necessary to ensure that income data provided to

19 public housing agencies and owners by families

20 applying for or receiving assistance under this

21 section is complete and accurate.

22 ‘‘(C) CONFIDENTIALITY.—Any income infor23 mation received pursuant to this paragraph shall

24 remain confidential and shall be used only for

25 the purpose of verifying incomes in order to de-
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1 termine eligibility of families for benefits (and

2 the amount of such benefits, if any) under this

3 section.

4 ‘‘(5) DUE PROCESS RIGHTS IN CASES OF AD5 VERSE ACTION.—In the case of any action proposed

6 to be taken by a public housing agency, any family

7 receiving assistance under this section adversely af8 fected by such action shall have the right to at least

9 the basic elements of due process with regard to such

10 action, as follows:

11 ‘‘(A) Written notice of the intended adverse

12 action and the reason for such action shall be

13 provided to the family not less than 30 days be14 fore the action is to be taken, or, in a case where

15 the health or safety of other families is threat16 ened, a reasonable period of time considering the

17 seriousness of the situation (but not to exceed 30

18 days).

19 ‘‘(B) The family shall have the right to re20 quest a hearing within 30 days after receipt of

21 the notice.

22 ‘‘(C) The family shall have the right to a

23 hearing before an impartial hearing officer.
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1 ‘‘(D) The family shall have the right to be

2 represented at the hearing by an attorney or

3 other advocate.

4 ‘‘(E) The family shall have the right to ex5 amine the evidence supporting the action and all

6 evidence that the public housing agency intends

7 to use.

8 ‘‘(F) The family shall have the right to

9 present testimonial and documentary evidence

10 and to cross-examine adverse witnesses.

11 ‘‘(G) The hearing officer shall issue a writ12 ten decision, which shall be based solely upon the

13 evidence introduced at the hearing and which

14 shall state the basis of the decision.

15 ‘‘(g) ELIGIBILITY OF UNITS FOR ASSISTANCE.—

16 ‘‘(1) OCCUPANCY STATUS.—Each assistance con17 tract shall provide that assistance payments may be

18 made only with respect to the following dwelling

19 units:

20 ‘‘(A) OCCUPIED UNITS.—A dwelling unit

21 under lease for occupancy by a family deter22 mined to be a low-income family at the time it

23 initially occupies the dwelling unit or by a fam24 ily that qualifies to receive assistance under this

25 section pursuant to section 223 or 226 of the
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1 Low-Income Housing Preservation and Resident

2 Homeownership Act of 1990.

3 ‘‘(B) UNOCCUPIED UNITS.—An unoccupied

4 dwelling unit, but only if—

5 ‘‘(i)(I) a family vacates the dwelling

6 unit before the expiration date of the lease

7 for occupancy, or (II) a good faith effort is

8 being made to fill the unoccupied unit; and

9 ‘‘(ii) the costs of such vacancy are not

10 charged to or paid by the family vacating

11 the dwelling unit.

12 Payments for units referred to in this subpara13 graph may be made only for a period not exceed14 ing 60 days, except that such payments may be

15 made, in the case of a newly constructed or sub16 stantially rehabilitated project, after the expira17 tion of such 60-day period in an amount equal

18 to the debt service attributable to such an unoc19 cupied dwelling unit for a period not to exceed

20 one year, if a good faith effort is being made to

21 fill the unit and the unit provides decent, safe,

22 and sanitary housing. No such payment may be

23 made after the expiration of such 60-day period

24 if the Secretary determines that the dwelling

25 unit is in a project which provides the owner
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1 with revenues exceeding the costs incurred by

2 such owner with respect to such project.

3 ‘‘(2) OWNER’S STATUS.—A public housing agen4 cy shall not approve the rental of a dwelling unit if—

5 ‘‘(A) the owner—

6 ‘‘(i) is debarred, suspended, or subject

7 to limited denial of participation under

8 part 24 of title 24, Code of Federal Regula9 tions; or

10 ‘‘(ii) has been convicted of drug traf11 ficking;

12 ‘‘(B) the owner owns any other dwelling

13 unit in the same project, which is assisted under

14 this section and at such time, such unit is not

15 in compliance in any material respect with

16 standards for housing quality for units so as17 sisted, but the public housing agency shall pro18 vide an owner of any such dwelling unit a rea19 sonable opportunity to correct the noncompliance

20 before denying approval; or

21 ‘‘(C) the owner owns or has owned dwelling

22 units in the same project, which are assisted

23 under this section (or any other program of the

24 Federal Government for housing assistance) and

25 such units have repeatedly or regularly failed to
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1 comply with the housing quality standards ap2 plicable to such units.

3 ‘‘(h) OTHER PROVISIONS OF ASSISTANCE CON4 TRACTS.—Contracts to make assistance payments entered

5 into by any public housing agency (or by the Secretary)

6 with an owner of existing housing units shall meet the fol7 lowing requirements:

8 ‘‘(1) CONTRACT TERM.—Each assistance contract

9 shall have a term of not less than one month nor more

10 than 180 months. The Secretary shall permit public

11 housing agencies to enter into assistance contracts

12 having terms of less than 12 months to the extent nec13 essary to avoid disruption in assistance to eligible

14 families if the annual contributions contract for the

15 agency under subsection (b) will expire within 1 year.

16 ‘‘(2) PREFERENCES.—Each assistance contract

17 shall provide that, in making assistance available

18 pursuant to the contract—

19 ‘‘(A) for not less than 70 percent of the fam20 ilies who initially receive project-based assist21 ance, and

22 ‘‘(B) for not less than 90 percent of the fam23 ilies who initially receive tenant-based assistance

24 in any 1-year period,
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1 preference shall be given to families that (i) occupy

2 substandard housing (including families that are

3 homeless or living in a shelter for homeless families),

4 (ii) are paying more than 50 percent of family in5 come for rent, or (iii) are involuntarily displaced (in6 cluding displacement because of disposition of a mul7 tifamily housing project under section 203 of the

8 Housing and Community Development Amendments

9 of 1978) at the time they are seeking assistance under

10 this section.

11 ‘‘(3) SECONDARY PREFERENCES.—Each assist12 ance contract shall provide that, for any assistance

13 remaining in any 1-year period after assistance is

14 made available pursuant to paragraph (2), preference

15 for such assistance shall be given to families who

16 qualify under a system of local preferences established

17 by the public housing agency in writing and after

18 public hearing to respond to local housing needs and

19 priorities, which may include—

20 ‘‘(A) assisting very low-income families who

21 either reside in transitional housing assisted

22 under title IV of the Stewart B. McKinney

23 Homeless Assistance Act or participate in a pro24 gram designed to provide public assistance re-
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1 cipients with greater access to employment and

2 educational opportunities;

3 ‘‘(B) assisting families in accordance with

4 subsection (q)(1)(B);

5 ‘‘(C) assisting families identified by local

6 public agencies involved in providing for the wel7 fare of children as having a lack of adequate

8 housing that is a primary factor in the immi9 nent placement of a child in foster care, or in

10 preventing the discharge of a child from foster

11 care and reunification with his or her family;

12 ‘‘(D) assisting youth, upon discharge from

13 foster care, in cases in which return to the fam14 ily or extended family or adoption is not avail15 able;

16 ‘‘(E) assisting veterans who are eligible and

17 have applied for assistance, will use the assist18 ance for a dwelling unit designed for the handi19 capped, and, upon discharge or eligibility for

20 discharge from a hospital or nursing home, have

21 physical disability which, because of the configu22 ration of their homes, prevents them from access

23 to or use of their homes; and

24 ‘‘(F) achieving other objectives of national

25 housing policy as established by law.
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1 A public housing agency may not establish a pref2 erence for assistance that provides preference based on

3 residency in the jurisdiction of the public housing

4 agency.

5 ‘‘(4) TENANT SELECTION.—Each assistance con6 tract shall provide that the selection of tenants for

7 such dwelling units shall be the function of the owner,

8 subject to any provisions of the annual contributions

9 contract between the Secretary and the agency. The

10 owner shall use tenant selection criteria, which shall

11 provide as follows:

12 ‘‘(A) PROHIBITION OF PERSONS ENGAGED

13 IN DRUG ACTIVITY.—The criteria shall prohibit

14 any individual or family evicted from housing

15 assisted under this Act by reason of drug-related

16 criminal activity from having a preference under

17 any provision of this paragraph for 3 years un18 less the evicted tenant successfully completes a re19 habilitation program approved by the agency or

20 owner. The agency or the owner may waive the

21 application of the preceding sentence under

22 standards established by the Secretary, which

23 shall provide for such waiver for any member of

24 a family of an individual prohibited from ten25 ancy under this subparagraph who the agency or
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1 owner determines clearly did not participate in

2 and had no knowledge of such criminal activity

3 or when circumstances leading to eviction no

4 longer exist.

5 ‘‘(B) OTHER REQUIREMENTS FOR PROJECT6 BASED ASSISTANCE.—With respect only to

7 project-based assistance, the criteria shall—

8 ‘‘(i) be consistent with the purpose of

9 improving housing opportunities for very

10 low-income families;

11 ‘‘(ii) be reasonably related to program

12 eligibility and an applicant’s ability to per13 form the obligations of the assisted lease;

14 ‘‘(iii) be established in writing; and

15 ‘‘(iv) provide for the owner to prompt16 ly provide to any rejected applicant (I)

17 written notice of the grounds for the rejec18 tion, and (II) an opportunity to meet with

19 the decision maker to evaluate the validity

20 of the reasons for rejection and rectify any

21 erroneous decisions.

22 ‘‘(5) LEASE PROVISIONS.—Each assistance con23 tract shall provide that the lease between the tenant

24 of any unit and the owner—
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1 ‘‘(A) shall be for at least one year or the

2 term of such assistance contract, whichever is

3 shorter;

4 ‘‘(B) shall contain other terms and condi5 tions specified by the Secretary, including provi6 sions meeting the requirements of paragraphs

7 (6), (7), and (8); and

8 ‘‘(C) shall be in a standard form which is

9 used in the local housing market area by the

10 owner and which applies generally to tenants in

11 the property who are not assisted under this sec12 tion, together with any addendum necessary to

13 include in the lease the provisions required under

14 subparagraph (B).

15 ‘‘(6) GENERAL GROUNDS FOR TERMINATION OF

16 TENANCY.—Each assistance contract shall provide

17 that the owner shall not terminate the tenancy of the

18 tenant of any unit except for serious or repeated vio19 lation of the terms and conditions of the lease, for vio20 lation of applicable Federal, State, or local law, or for

21 other good cause. The withholding of assistance pay22 ments for a dwelling unit pursuant to paragraph (10)

23 shall not constitute good cause for termination of the

24 tenancy of the tenant of the unit.
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1 ‘‘(7) TERMINATION FOR ACTIVITY.—Each assist2 ance contract shall provide that any activity that

3 threatens the health, safety, or right to peaceful enjoy4 ment of the premises by other tenants, any activity

5 that threatens the health, safety, or right to peaceful

6 enjoyment of their residences by persons residing in

7 the immediate vicinity of the premises, or any drug8 related criminal activity on or near such premises,

9 engaged in by a tenant of any unit, any member of

10 the tenant’s household, or any guest or other person

11 under the tenant’s control, shall be cause for termi12 nation of tenancy.

13 ‘‘(8) NOTICE OF TERMINATION OF TENANCY.—

14 Each assistance contract shall provide that before ter15 minating the tenancy of any tenant, the owner shall

16 provide written notice to the tenant specifying the

17 legal and factual grounds for such action, which shall

18 be provided in accordance with any requirements

19 under State or local law.

20 ‘‘(9) MAINTENANCE AND REPLACEMENT.—Each

21 assistance contract shall provide that maintenance

22 and replacement (including redecoration) shall be

23 performed in accordance with the standard practice

24 for the building concerned as established by the owner

25 and agreed to by the agency (or the Secretary). With
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1 the approval of the Secretary, the public housing

2 agency administering a contract under this section

3 with respect to existing housing units may exercise all

4 management and maintenance responsibilities with

5 respect to the units pursuant to a contract between

6 such agency and the owner of such units.

7 ‘‘(10) ENFORCEMENT OF HOUSING QUALITY

8 STANDARDS.—

9 ‘‘(A) IN GENERAL.—Each assistance con10 tract shall provide for action under this para11 graph if a unit assisted under this section fails

12 to comply with the standards for housing quality

13 for units so assisted.

14 ‘‘(B) NOTIFICATION.—If the agency (or the

15 Secretary) determines that a unit assisted under

16 this section fails to comply in any material re17 spect with the standards for housing quality for

18 units so assisted, the agency (or the Secretary)

19 shall notify the tenant and owner of the unit of

20 the noncompliance and the possible actions

21 under this paragraph.

22 ‘‘(C) CORRECTION OF NONCOMPLIANCE.—

23 The agency may approve the dwelling unit for

24 assistance under this section, on the condition

25 that the noncompliance is corrected, if (i) the
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1 agency determines that the noncompliance is

2 minor and can be corrected within 15 days, (ii)

3 the agency provides notice of the conditional ap4 proval to the owner, (ii) the owner provides a

5 written commitment to the agency to correct the

6 noncompliance within the time period required

7 by the agency, not to exceed 15 days, and (iii)

8 the conditional approval will expedite the occu9 pancy of an eligible tenant with assistance under

10 this section. The agency shall reinspect any unit

11 for which conditional approval is made under

12 this subparagraph within the period referred to

13 in clause (ii) of the preceding sentence, and if

14 the agency determines that the noncompliance is

15 not corrected, the agency may take action under

16 subparagraph (D).

17 ‘‘(D) FAILURE TO CORRECT SERIOUS NON18 COMPLIANCE.—If any serious noncompliance

19 with such standards is not corrected within a

20 reasonable period of time after such notification,

21 the agency (or the Secretary) shall withhold some

22 or all of the assistance amounts under this sec23 tion with respect to the unit and promptly—
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1 ‘‘(i) use such amounts to make nec2 essary repairs or contract to have such re3 pairs made;

4 ‘‘(ii) release any withheld amounts to

5 the owner after repairs are made by the

6 owner, in an amount not exceeding the cost

7 of the repairs;

8 ‘‘(iii) release any withheld amounts to

9 the applicable State or local housing agency

10 after repairs are made by such agency, in

11 an amount not exceeding the cost of the re12 pairs; or

13 ‘‘(iv) upon the request of the tenant, re14 lease any withheld amounts to—

15 ‘‘(I) the tenant to reimburse the

16 tenant for the reasonable cost of any

17 necessary repairs performed or paid

18 for by the tenant; or

19 ‘‘(II) such person secured by the

20 tenant and approved by the agency (or

21 the Secretary) to make such necessary

22 repairs.

23 If an agency (or the Secretary) withholds any

24 assistance amounts pursuant to this subpara25 graph, the agency (or the Secretary) shall
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1 promptly notify the tenant of the unit for which

2 assistance is withheld of the withholding and

3 may not terminate the assistance contract unless

4 and until the tenant has relocated to decent, safe,

5 and sanitary housing.

6 ‘‘(11) STANDARDS AND OBLIGATIONS OF RESI7 DENCY IN HOUSING RECEIVING PROJECT-BASED AS8 SISTANCE.—Each assistance contract for project-based

9 assistance under subsection (i) shall provide that the

10 owner shall ensure and maintain compliance with

11 subtitle C of title VI of the Housing and Community

12 Development Act of 1992 and any regulations issued

13 under such subtitle.

14 ‘‘(12) SERVICE COORDINATORS.—In determining

15 the amount of assistance provided under an assist16 ance contract for tenant-based assistance under this

17 paragraph, the Secretary may increase the amount

18 annually provided with respect to such project to pro19 vide for the costs of employing or otherwise retaining

20 the services of one or more service coordinators under

21 section 671 of the Housing and Community Develop22 ment Act of 1992 to coordinate the provision of any

23 services within the project for residents of the project

24 who are elderly or disabled families.
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1 ‘‘(13) OTHER.—Each assistance contract shall

2 provide that the agency and the owner shall carry out

3 such other appropriate terms and conditions as may

4 be mutually agreed to by the agency and owner.

5 ‘‘(i) PROJECT-BASED ASSISTANCE.—

6 ‘‘(1) AUTHORITY.—Pursuant to an annual con7 tributions contract entered into under subsection (b),

8 a public housing agency may enter into a assistance

9 contract providing for assistance payments under this

10 section that are attached to a structure.

11 ‘‘(2) REQUIREMENTS.—Any public housing

12 agency may approve project-based assistance under

13 this subsection with respect to any or all of the assist14 ance provided by the public housing agency if—

15 ‘‘(A) the owner agrees to rehabilitate the

16 structure other than with assistance under this

17 Act and the owner otherwise complies with the

18 requirements of this section; and

19 ‘‘(B) in the case of any newly constructed

20 structure, the owner or prospective owner agrees

21 to construct the structure other than with assist22 ance under this Act and otherwise complies with

23 the requirements of this section.

24 ‘‘(3) LONG-TERM AFFORDABILITY.—
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1 ‘‘(A) IN GENERAL.—In the case of an assist2 ance contract for project-based assistance under

3 this subsection, a public housing agency shall

4 enter into a contract with an owner, contingent

5 upon the future availability of appropriations

6 for the purpose of renewing expiring contracts

7 for assistance payments as provided in appro8 priations Acts, to extend the term of the underly9 ing assistance contract for such period or periods

10 as the Secretary determines to be appropriate to

11 achieve long-term affordability of the housing.

12 The contract shall obligate the owner to have the

13 extensions of the assistance contract accepted by

14 the owner and the owner’s successors in interest.

15 ‘‘(B) TERM OF ASSISTANCE FOR LOW-IN16 COME HOUSING PRESERVATION.—The contract

17 for assistance may, at the option of the public

18 housing agency, have an initial term not exceed19 ing 15 years for any assistance that is at20 tached—

21 ‘‘(i) to projects assisted under a State

22 program that permits the owner of the

23 projects to prepay a State assisted or sub24 sidized mortgage on the structure; and
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1 ‘‘(ii) for the purpose of providing in2 centives to owners to preserve such projects

3 for occupancy by low- and moderate-income

4 families (for the period that assistance

5 under this subparagraph is available) and

6 assisting low-income tenants to afford any

7 increases in rent that may be required to

8 induce the owner to maintain occupancy in

9 the project by low- and moderate-income

10 tenants.

11 Any assistance provided to low-income tenants

12 in the manner described in this subparagraph

13 shall not be considered for purposes of the limita14 tion under subsection (h)(2) regarding the per15 centage of families that may receive assistance

16 under this section who do not qualify for pref17 erences under such subsection.

18 ‘‘(4) SERVICE COORDINATORS.—In determining

19 the amount of assistance provided under an assist20 ance contract for project-based assistance under this

21 subsection or a contract for assistance for housing

22 constructed or substantially rehabilitated pursuant to

23 assistance provided under section 8(b)(2) of this Act

24 (as such section existed before October 1, 1983), the

25 Secretary may increase the amount annually pro-
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1 vided with respect to such project to provide for the

2 costs of employing or otherwise retaining the services

3 of one or more service coordinators under section 671

4 of the Housing and Community Development Act of

5 1992 to coordinate the provision of any services with6 in the project for residents of the project who are el7 derly or disabled families.

8 ‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—

9 ‘‘(1) TERMINATION OF TENANT-BASED ASSIST10 ANCE.—

11 ‘‘(A) NOTICE BY OWNER.—Any owner ter12 minating any assistance contract under this sec13 tion for tenant-based assistance shall provide

14 written notice to the public housing agency and

15 the tenants involved of the proposed termination

16 not less than 90 days before the termination of

17 the contract. The notice shall specify the date of

18 the termination and the reasons for the termi19 nation, with detail sufficient to enable the agen20 cy to evaluate whether the termination is lawful.

21 ‘‘(B) REVIEW OF NOTICE BY PHA.—The

22 public housing agency shall review the notice

23 and issue a written finding of the legality of the

24 termination and the reasons for the termination.

25 Within 30 days after issuance of the findings, the
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1 owner shall provide written notice to each tenant

2 of the decision, together with the written findings

3 of the agency regarding the termination.

4 ‘‘(2) TERMINATION OF PROJECT-BASED ASSIST5 ANCE CONTRACTS.—

6 ‘‘(A) NOTICE BY OWNER.—Any owner ter7 minating any assistance contract under sub8 section (i) for project-based assistance shall pro9 vide written notice to the Secretary and the ten10 ants involved of the proposed termination not

11 less than one year before the termination of the

12 contract. The notice shall specify the date of the

13 termination and the reasons for the termination,

14 with detail sufficient to enable the Secretary to

15 evaluate whether the termination is lawful and

16 whether additional actions can be taken by the

17 Secretary to avoid the termination. The notice

18 shall include a statement that the owner and the

19 Secretary may agree to a renewal of the contract,

20 thus avoiding the termination.

21 ‘‘(B) REVIEW OF NOTICE BY SECRETARY.—

22 The Secretary shall review the notice, shall con23 sider whether additional actions can be taken by

24 the Secretary to avoid the termination, and shall

25 ensure a proper adjustment of the contract rents
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1 for the project in compliance with the require2 ments of subsection (d) and subparagraph (C) of

3 this subsection. The Secretary shall issue a writ4 ten finding of the legality of the termination and

5 the reasons for the termination, including the ac6 tions considered or taken to avoid the termi7 nation. Within 30 days after issuance of the

8 findings, the owner shall provide written notice

9 to each tenant of the decision, together with the

10 written findings of the Secretary regarding the

11 termination. The Secretary and the owner shall

12 complete the actions under this paragraph not

13 later than the expiration of the 9-month period

14 beginning upon the date that the owner provides

15 written notice of termination under subpara16 graph (A).

17 ‘‘(3) ADJUSTMENT OF CONTRACT RENT.—If an

18 owner provides notice of proposed termination under

19 paragraph (1)(A) or (2)(A) and the contract rent is

20 less than the maximum monthly rent for units as21 sisted under this section, the Secretary shall adjust

22 the contract rent based on the maximum monthly rent

23 for units assisted under this section and the value of

24 the low-income housing.
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1 ‘‘(4) NOTICE OF RENT INCREASES.—Each assist2 ance contract for assistance under this section shall

3 require the owner to notify tenants at least 90 days

4 before the expiration of the contract of any rent in5 crease which may occur as a result of the expiration

6 of such contract.

7 ‘‘(5) DEFINITION OF TERMINATION.—For pur8 poses of this subsection, the term ‘termination’ means

9 the expiration of the assistance contract or the refusal

10 of the owner to renew an assistance contract, which

11 shall include the termination of tenancy by an owner

12 for business reasons.

13 ‘‘(k) RENTAL ASSISTANCE FOR MANUFACTURED

14 HOUSING.—

15 ‘‘(1) IN GENERAL.—The Secretary may enter

16 into contracts to make assistance payments under this

17 subsection to assist low-income families by making

18 rental assistance payments on behalf of any such fam19 ily that utilizes a manufactured home as its principal

20 place of residence. In carrying out this subsection, the

21 Secretary may—

22 ‘‘(A) enter into annual contributions con23 tracts with public housing agencies pursuant to

24 which such agencies may enter into assistance

25 contracts to make such assistance payments to
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1 the owners of such real property, if such owners

2 agree to make good faith efforts to ensure that

3 such property complies with local health and

4 safety standards for water and sewage systems;

5 or

6 ‘‘(B) enter into such contracts directly with

7 the owners of such real property, if such owners

8 agree to make good faith efforts to ensure that

9 such property complies with local health and

10 safety standards for water and sewage systems.

11 ‘‘(2) USE OF ASSISTANCE.—Rental assistance

12 payments under this subsection may be made with re13 spect to the rental of the real property on which is lo14 cated a manufactured home that is owned by a low15 income family or with respect to the rental by such

16 a family of a manufactured home and the real prop17 erty on which it is located.

18 ‘‘(3) ASSISTANCE FOR RENTAL OF MANUFAC19 TURED HOME SITE.—

20 ‘‘(A) MAXIMUM MONTHLY RENT.—A con21 tract entered into pursuant to this paragraph

22 shall establish the maximum monthly rent (in23 cluding maintenance and management charges)

24 that the owner is entitled to receive for the space

25 on which a manufactured home is located and
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1 with respect to which assistance payments are to

2 be made. The maximum monthly rent shall not

3 exceed an amount approved or established by the

4 Secretary.

5 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

6 PAYMENT.—The amount of any monthly assist7 ance payment with respect to any family that

8 rents real property that is assisted under this

9 paragraph, and on which is located a manufac10 tured home that is owned by such family shall

11 be the difference between the rent the family is

12 required to pay under section 3(a) and the sum

13 of—

14 ‘‘(i) the monthly payment made by

15 such family to amortize the cost of purchas16 ing the manufactured home;

17 ‘‘(ii) the monthly utility payments

18 made by such family, subject to reasonable

19 limitations prescribed by the Secretary; and

20 ‘‘(iii) the maximum monthly rent per21 mitted with respect to the real property

22 which is rented by such family for the pur23 pose of locating its manufactured home;
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1 except that in no case may such assistance exceed

2 the total amount of such maximum monthly

3 rent.

4 ‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC5 TURED HOME AND SITE.—

6 ‘‘(A) MAXIMUM MONTHLY RENT.—Contracts

7 entered into pursuant to this paragraph shall es8 tablish the maximum monthly rent permitted

9 with respect to the manufactured home and the

10 real property on which it is located and with re11 spect to which assistance payments are to be

12 made. The maximum monthly rent shall not ex13 ceed an amount approved or established by the

14 Secretary.

15 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

16 PAYMENT.—The amount of any monthly assist17 ance payment with respect to any family that

18 rents a manufactured home and the real prop19 erty on which it is located and that is assisted

20 under this paragraph shall be the difference be21 tween the rent the family is required to pay

22 under section 3(a) and the sum of—

23 ‘‘(i) the monthly utility payments

24 made by such family, subject to reasonable

25 limitations prescribed by the Secretary; and
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1 ‘‘(ii) the maximum monthly rent per2 mitted with respect to the manufactured

3 home and real property on which it is lo4 cated.

5 ‘‘(5) ADJUSTMENT OF MAXIMUM MONTHLY

6 RENTS.—The provisions of paragraphs (3) through

7 (7) of subsection (d) shall apply to the adjustments of

8 maximum monthly rents under this subsection.

9 ‘‘(6) CONTRACT TERM.—Each contract entered

10 into under the subsection shall be for a term of not

11 less than one month and not more than 180 months;

12 except that in any case in which the manufactured

13 home park is substantially rehabilitated or newly con14 structed, such term may not be less than 240 months,

15 nor more than the maximum term for a manufac16 tured home loan permitted under section 2(b) of the

17 National Housing Act.

18 ‘‘(7) APPLICABILITY.—The Secretary may carry

19 out this subsection without regard to whether the

20 manufactured home park is existing, substantially re21 habilitated, or newly constructed.

22 ‘‘(8) LIMITATION ON SUBSTANTIALLY REHABILI23 TATED AND NEWLY CONSTRUCTED MANUFACTURED

24 HOME PARKS.—In the case of any substantially reha25 bilitated or newly constructed manufactured home
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1 park containing spaces with respect to which assist2 ance is made under this subsection, the principal

3 amount of the mortgage attributable to the rental

4 spaces within the park may not exceed an amount es5 tablished by the Secretary which is equal to or less

6 than the limitation for manufactured home parks de7 scribed in section 207(c)(3) of the National Housing

8 Act, and the Secretary may increase such limitation

9 in high cost areas in the manner described in such

10 section.

11 ‘‘(9) OTHER REQUIREMENTS.—The Secretary

12 may prescribe other terms and conditions necessary

13 for the purpose of carrying out this subsection and

14 that are consistent with the purposes of this sub15 section.

16 ‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—

17 ‘‘(1) AUTHORITY.—In making assistance avail18 able under this section and assistance under section

19 441 and part V of subtitle F of title IV of the Stewart

20 B. McKinney Homeless Assistance Act, the Secretary

21 may provide assistance with respect to residential

22 properties in which some or all of the dwelling units

23 do not contain bathroom or kitchen facilities, if the

24 unit of general local government in which the prop25 erty is located and the local public housing agency
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1 certify to the Secretary that the property complies

2 with local health and safety standards.

3 ‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE

4 FOR SINGLE PERSONS.—The Secretary may waive, in

5 appropriate cases, the limitation and preference in

6 section 3(b)(3)(A) with respect to the assistance made

7 available under this subsection.

8 ‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI9 LIES.—

10 ‘‘(1) SHARED HOUSING.—To assist elderly fami11 lies and disabled families (as defined in section 3(b))

12 who elect to live in a shared housing arrangement in

13 which they benefit as a result of sharing the facilities

14 of a dwelling with others in a manner that effectively

15 and efficiently meets their housing needs and thereby

16 reduces their costs of housing, the Secretary shall per17 mit assistance provided under this section to be used

18 by such families in such arrangements. In carrying

19 out this subsection, the Secretary shall issue mini20 mum habitability standards for the purpose of ensur21 ing decent, safe, and sanitary housing for such fami22 lies while taking into account the special cir23 cumstances of shared housing.

24 ‘‘(2) PRIORITY FOR NONELDERLY DISABLED FAM25 ILIES.—In allocating assistance under this section, a
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1 public housing agency that serves more than one unit

2 of general local government may, at the discretion of

3 the agency, give priority to disabled families that are

4 not elderly families.

5 ‘‘(3) AUTHORITY TO PROVIDE PREFERENCES FOR

6 THE ELDERLY AND RESERVE UNITS FOR THE DIS7 ABLED.—Notwithstanding subsection (h)(2) or (3), an

8 owner of a covered section 8 housing project (as such

9 term is defined in section 659 of the Housing and

10 Community Development Act of 1992) may give pref11 erence for occupancy of dwelling units in the project,

12 and reserve units for occupancy, in accordance with

13 subtitle D of title VI of the Housing and Community

14 Development Act of 1992.

15 ‘‘(n) ADMINISTRATIVE FEES.—

16 ‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL

17 PROGRAM.—The Secretary shall establish a fee for the

18 costs incurred by a public housing agency in admin19 istering the program for rental assistance under this

20 section, which shall be, together with other fees au21 thorized under this subsection, included in any

22 amounts provided to the public housing agency under

23 the annual contributions contract for the agency. The

24 amount of the fee for each month for which a dwelling

25 unit is covered by an assistance contract shall be 8.2
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1 percent of the fair market rental established under

2 subsection (e) for a 2-bedroom existing rental dwelling

3 unit in the market area of the public housing agency.

4 The Secretary may increase the fee if necessary to re5 flect the higher costs of administering small programs

6 and programs operating over large geographic areas.

7 ‘‘(2) OTHER FEES.—The Secretary shall also es8 tablish reasonable fees (as determined by the Sec9 retary) for—

10 ‘‘(A) the costs of preliminary expenses that

11 a public housing agency documents it has in12 curred in connection with new allocations of as13 sistance under the program for rental assistance

14 under this section, which shall not exceed $275

15 per unit assisted;

16 ‘‘(B) the costs incurred in assisting families

17 who experience difficulty (as determined by the

18 Secretary) in obtaining appropriate housing

19 under the program; and

20 ‘‘(C) extraordinary costs approved by the

21 Secretary.

22 ‘‘(3) BUDGET COMPLIANCE.—The Secretary may

23 establish or increase a fee in accordance with this

24 subsection only to such extent or in such amounts as

25 are provided in appropriation Acts.
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1 ‘‘(4) FEES FOR 1995 AND 1996.—Notwithstanding

2 any other provision of this subsection, the basic fee for

3 the costs incurred by a public housing agency in ad4 ministering the program for rental assistance under

5 this section during fiscal years 1995 and 1996 shall

6 be equal to the fee determined for fiscal year 1994

7 under section 11(a) of the HUD Demonstration Act

8 of 1993.

9 ‘‘(o) PORTABILITY OF ASSISTANCE.—

10 ‘‘(1) AUTHORITY.—Except as provided in para11 graphs (3) and (4), any family on behalf of whom is

12 provided tenant-based rental assistance under this

13 section and who moves to an eligible dwelling unit lo14 cated within the same State, or the same or a contig15 uous metropolitan statistical area, as the metropoli16 tan statistical area within which is located the area

17 of jurisdiction of the public housing agency approving

18 the assistance for the family, may use such assistance

19 to rent such eligible dwelling unit.

20 ‘‘(2) ADMINISTRATION.—The public housing

21 agency having authority with respect to the dwelling

22 unit to which a family moves under this subsection

23 shall have the responsibility of carrying out the provi24 sions of this section with respect to the family. If no

25 public housing agency has authority with respect to
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1 the dwelling unit to which a family moves under this

2 subsection, the public housing agency approving the

3 assistance shall have such responsibility.

4 ‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA

5 RESIDENCY.—At the discretion of a public housing

6 agency, the agency may provide that a family may

7 use tenant-based rental assistance under this section

8 to rent an eligible dwelling unit that is not located

9 within the area of jurisdiction of the agency approv10 ing the assistance only if, before such use, the family

11 has rented and occupied an eligible dwelling unit

12 within such original jurisdiction for not less than 12

13 consecutive months using assistance provided by such

14 agency.

15 ‘‘(4) PROHIBITION OF PORTABILITY IN CASES OF

16 LEASE VIOLATION.—A family may not use tenant17 based rental assistance as provided in paragraph (1)

18 if the family has moved from a dwelling unit in vio19 lation of the lease for the dwelling unit.

20 ‘‘(5) ALLOCATIONS DUE TO PORTABILITY.—In

21 determining the amount of rental assistance provided

22 under an annual contributions contract for any fiscal

23 year, the Secretary shall consider any reduction in

24 the number of resident families incurred by a public
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1 housing agency in the preceding fiscal year as a re2 sult of the provisions of this subsection.

3 ‘‘(6) PROVISION OF RENTAL ASSISTANCE FOR

4 PORTABILITY PURPOSES.—

5 ‘‘(A) AMOUNT.—To the extent amounts for

6 assistance under this section that are reserved

7 under section 213(d)(4) of the Housing and

8 Community Development Act of 1974 are avail9 able in a fiscal year, the Secretary shall provide

10 rental assistance under this section in accord11 ance with this paragraph.

12 ‘‘(B) USE.—Amounts provided for use

13 under this paragraph shall be used only to pro14 vide a public housing agency with additional

15 amounts (as determined under subparagraph

16 (C)) to provide assistance for families on behalf

17 of whom assistance is provided under this section

18 by another public housing agency and who move

19 into an eligible dwelling unit located within the

20 area of jurisdiction of the agency to receive as21 sistance under this paragraph.

22 ‘‘(C) REQUIREMENT.—Amounts provided

23 for use under this paragraph may be made

24 available to a public housing agency in a fiscal

25 year only if, during such fiscal year, the agency
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1 has provided assistance pursuant to the first sen2 tence of paragraph (2) on behalf of families who

3 have moved into eligible dwelling units located

4 within the area of jurisdiction of the agency in

5 an amount not less than the lesser of (i) 5 per6 cent of total amount received by the agency for

7 assistance under this section for the fiscal year,

8 or (ii) the amount necessary to assist 25 percent

9 of average annual number of families previously

10 assisted by the agency who relinquish such as11 sistance in a year (based on the preceding 3 cal12 endar years).

13 ‘‘(p) PROHIBITION OF DISCRIMINATION.—In selecting

14 families for the provision of assistance under this section,

15 a public housing agency may not exclude or penalize a fam16 ily solely because the family resides in a public housing

17 project.

18 ‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—

19 ‘‘(1) ASSISTANCE FOR RESIDENTS OF REHABILI20 TATED PROJECTS.—In the case of low-income families

21 living in rental projects rehabilitated under section

22 17 of this Act or section 533 of the Housing Act of

23 1949 before rehabilitation—

24 ‘‘(A) tenant-based rental assistance under

25 this section shall be provided for families who
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1 are required to move out of their dwelling units

2 because of the physical rehabilitation activities

3 or because of overcrowding;

4 ‘‘(B) at the discretion of each public hous5 ing agency, tenant-based rental assistance under

6 this section may be provided for families who

7 would have to pay more than 30 percent of their

8 adjusted income for rent after rehabilitation

9 whether they choose to remain in, or to move

10 from, the project; and

11 ‘‘(C) the Secretary shall allocate tenant12 based rental assistance provided under this sec13 tion to ensure that sufficient resources are avail14 able to address the physical or economic dis15 placement, or potential economic displacement,

16 of existing tenants pursuant to subparagraphs

17 (A) and (B).

18 ‘‘(2) LOAN MANAGEMENT ASSISTANCE.—

19 ‘‘(A) IN GENERAL.—The Secretary may

20 provide assistance under this section through a

21 loan management program to assist financially

22 troubled multifamily residential housing projects

23 (i) subject to mortgages that are insured under

24 the National Housing Act or mortgages that have

25 been assigned to the Secretary, (ii) that were
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1 held by the Secretary and have been sold, and

2 (iii) that were assisted under section 202 of the

3 Housing Act of 1959.

4 ‘‘(B) ELIGIBILITY.—The eligibility of a

5 multifamily residential project for loan manage6 ment assistance under this paragraph shall be

7 determined without regard to whether the project

8 is subsidized or unsubsidized.

9 ‘‘(C) EXTENSION OF CONTRACT.—The Sec10 retary shall extend any expiring contract entered

11 into under this section for loan management as12 sistance or execute a new contract for project13 based loan management assistance, if the owner

14 agrees to continue providing housing for low-in15 come families during the term of the contract.

16 ‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—

17 ‘‘(A) IN GENERAL.—The Secretary may

18 provide assistance under this section to be used

19 only in connection with tenant-based assistance

20 under this section on behalf of any family (i)

21 who is otherwise eligible for such assistance, and

22 (ii) who the public child welfare agency for the

23 jurisdiction has certified is a family for whom

24 the lack of adequate housing is a primary factor

25 in the imminent placement of the family’s child
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1 or children in out-of-home care or the delayed

2 discharge of a child or children to the family

3 from out-of-home care.

4 ‘‘(B) ALLOCATION.—Any amounts made

5 available under this paragraph shall be allocated

6 by the Secretary through a national competition

7 among applicants based on demonstrated need

8 for assistance under this paragraph. To be con9 sidered for assistance, an applicant shall submit

10 to the Secretary a written proposal containing a

11 report from the public child welfare agency serv12 ing the jurisdiction of the applicant that de13 scribes how a lack of adequate housing in the ju14 risdiction is resulting in the initial or prolonged

15 separation of children from their families, and

16 how the applicant will coordinate with the pub17 lic child welfare agency to identify eligible fami18 lies and provide the families with assistance

19 under this paragraph.

20 ‘‘(C) DEFINITIONS.—For purposes of this

21 paragraph:

22 ‘‘(i) APPLICANT.—The term ‘applicant’

23 means a public housing agency.

24 ‘‘(ii) PUBLIC CHILD WELFARE AGEN25 CY.—The term ‘public child welfare agency’
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1 means the public agency responsible under

2 applicable State law for determining that a

3 child is at imminent risk of placement in

4 out-of-home care or that a child in out-of5 home care under the supervision of the pub6 lic agency may be returned to his or her

7 family.

8 ‘‘(4) NEIGHBORHOOD CRIME FIGHTERS ASSIST9 ANCE.—

10 ‘‘(A) ASSISTANCE.—To the extent amounts

11 for assistance under this section are reserved

12 under section 213(d)(4)(A) of the Housing and

13 Community Development Act of 1974 for use

14 under this paragraph, the Secretary may provide

15 such amounts to any public housing agency ap16 proved under subparagraph (C) to make assist17 ance payments under this paragraph on behalf of

18 any family described under subparagraph (B)

19 for the rental of a dwelling unit for the family

20 that, in the determination of the public housing

21 agency (after consultation with law enforcement

22 agency concerned) provides for the protection of

23 the family.
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1 ‘‘(B) ELIGIBLE FAMILIES.—A family re2 ferred to in subparagraph (A) shall be any fam3 ily that—

4 ‘‘(i) contains a member that has pro5 vided information to any Federal, State, or

6 local law enforcement agency that such law

7 enforcement agency determines substantially

8 contributes to the arrest, criminal prosecu9 tion, or conviction of any person for any

10 criminal activity in or near the area or

11 neighborhood in which the person providing

12 the information resides;

13 ‘‘(ii) is likely, in the determination of

14 such law enforcement agency, to be subject

15 to a crime of violence directed at the family

16 on account of providing the information re17 ferred to in clause (i);

18 ‘‘(iii) is legally residing, at the time

19 such information is provided to the law en20 forcement agency, in a dwelling unit in a

21 public housing project administered by a

22 public housing agency meeting the require23 ments of subparagraph (C) or in a dwelling

24 unit assisted under this section by such a

25 public housing agency; and
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1 ‘‘(iv) is not protected or assisted, or to

2 be protected or assisted, under chapter 224

3 of title 18, United States Code.

4 ‘‘(C) ELIGIBLE PHA’S.—The Secretary may

5 provide amounts reserved for use under this

6 paragraph only to public housing agencies ap7 proved by the Secretary under this subpara8 graph. The Secretary may approve only agencies

9 that the Secretary determines have—

10 ‘‘(i) established sufficient cooperation

11 with local law enforcement agencies to make

12 determinations to provide assistance under

13 this paragraph; and

14 ‘‘(ii) coordinated with local law en15 forcement agencies to promptly inform the

16 public housing agency and the Secretary of

17 any determination that assistance under

18 this paragraph is appropriate for a family,

19 except that such coordination shall be sub20 ject to the procedures established under sub21 paragraph (F)(iii) to ensure confidentiality.

22 ‘‘(D) GUIDELINES.—

23 ‘‘(i) DETERMINATION OF NEED AND

24 COORDINATION.—The Secretary shall estab-
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1 lish guidelines jointly with the Attorney

2 General that—

3 ‘‘(I) describe the types of situa4 tions under clauses (i) and (ii) of sub5 paragraph (B) in which assistance

6 may be provided under this paragraph,

7 which shall include situations in which

8 the information referred to in subpara9 graph (B)(i) is information regarding

10 any crime that is detrimental to the

11 health, safety, peace, or security of the

12 area or neighborhood in which the fam13 ily providing the information resides;

14 and

15 ‘‘(II) describe elements of suffi16 cient cooperation between public hous17 ing agencies and law enforcement

18 agencies for purposes of subparagraph

19 (C)(i).

20 ‘‘(ii) PROCEDURES.—The Secretary

21 shall establish procedures for public housing

22 agencies approved under subparagraph

23 (C)—

24 ‘‘(I) to apply for, obtain, and ad25 minister amounts reserved for provid-
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1 ing assistance under this paragraph on

2 behalf of families eligible under sub3 paragraph (B); and

4 ‘‘(II) to provide for the termi5 nation of the tenancy of any family as6 sisted under this paragraph from the

7 dwelling unit in which the family is

8 residing so that such assistance may be

9 utilized.

10 ‘‘(E) PHA ACTIONS.—Each public housing

11 agency approved by the Secretary under sub12 paragraph (C) shall—

13 ‘‘(i) periodically notify Federal, State,

14 and local law enforcement agencies in the

15 area of jurisdiction of the public housing

16 agency of the availability of assistance

17 under this paragraph;

18 ‘‘(ii) take such actions as may be ap19 propriate to inform residents of public hous20 ing projects administered by the agency and

21 dwelling units assisted under this section by

22 the agency of the availability of such assist23 ance; and

24 ‘‘(iii) coordinate with such law enforce25 ment agencies to promptly inform the pub-
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1 lic housing agency and the Secretary of any

2 determination that assistance under this

3 paragraph is appropriate for a family, ex4 cept that such coordination shall be subject

5 to the procedures established under subpara6 graph (F)(iii) to ensure confidentiality.

7 ‘‘(F) NOTICE AND CONFIDENTIALITY.—The

8 Secretary shall—

9 ‘‘(i) periodically notify public housing

10 agencies of the availability of assistance

11 under this paragraph;

12 ‘‘(ii) encourage public housing agencies

13 to cooperate and coordinate with law en14 forcement agencies to encourage residents of

15 public housing projects and dwelling units

16 assisted under this section to provide infor17 mation to law enforcement agencies regard18 ing criminal activity; and

19 ‘‘(iii) develop and implement proce20 dures to ensure the confidentiality of the

21 identity and new location of any family as22 sisted under this paragraph.

23 ‘‘(G) OTHER ASSISTANCE.—A public hous24 ing agency that provides assistance under sub25 paragraph (A) for a family and the law enforce-
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1 ment agency involved shall ensure that the fam2 ily is provided access to other assistance and

3 services appropriate to ensure that the relocation

4 of the family to the dwelling unit assisted under

5 subparagraph (A) and the neighborhood of such

6 dwelling unit occurs with the minimum possible

7 amount of disruption to the life of the family.

8 ‘‘(H) LIABILITY.—The United States, and

9 its officers and employees, shall not be subject to

10 any civil liability on account of any decision to

11 provide or not to provide protection under this

12 paragraph.

13 ‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—

14 ‘‘(1) 5-YEAR PLAN.—Not later than 30 days after

15 the beginning of each fiscal year, the Secretary shall

16 publish in the Federal Register a plan for reducing,

17 to the extent feasible, year-to-year fluctuations in the

18 levels of budget authority that will be required over

19 the succeeding 5-year period to renew expiring assist20 ance contracts entered into under this section after the

21 enactment of the Housing and Community Develop22 ment Act of 1974. To the extent necessary to carry out

23 such plan and to the extent approved in appropria24 tions Acts, the Secretary is authorized to enter into
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1 annual contributions contracts with terms of less than

2 60 months.

3 ‘‘(2) NEW CONSTRUCTION AND SUBSTANTIAL RE4 HABILITATION PROJECTS.—Subject only to the avail5 ability of budget authority to carry out this para6 graph and to the absence of owners agreeing to enter

7 into new contracts, the Secretary shall enter into new

8 contracts under subtitle D of title I of the Housing

9 and Community Development Act of 1994 to provide

10 project-based assistance for qualified housing (as such

11 term is defined in section 163 of such subtitle) to

12 owners of such housing.

13 ‘‘(s) GENERAL PROVISIONS.—

14 ‘‘(1) PLEDGING ASSISTANCE CONTRACTS AS SE15 CURITY.—An owner may pledge, or offer as security

16 for any loan or obligation, an assistance contract en17 tered into pursuant to this section, but only if such

18 security is in connection with a project constructed or

19 rehabilitated pursuant to authority under this section

20 and the terms of the financing or any refinancing

21 have been approved by the Secretary.

22 ‘‘(2) HOUSING COUNSELING FOR RENTAL

23 CHOICE.—Each public housing agency that provides

24 rental housing assistance under this section on behalf

25 of low-income families shall notify such assisted fami-
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1 lies of the availability of any entity in the jurisdic2 tion of the agency providing rental housing counsel3 ing under section 106(a)(4) of the Housing and

4 Urban Development Act of 1968.

5 ‘‘(t) HOMEOWNERSHIP OPTION.—A public housing

6 agency providing assistance under this section may, at the

7 option of the agency, provide assistance for homeownership

8 under this subsection as follows:

9 ‘‘(1) USE OF ASSISTANCE FOR HOMEOWNER10 SHIP.—A family receiving tenant-based assistance

11 under this section may receive assistance for occu12 pancy of a dwelling owned by one or more members

13 of the family if the family—

14 ‘‘(A) is a first-time homeowner;

15 ‘‘(B)(i) participates in the family self-suffi16 ciency program under section 23 of the public

17 housing agency providing the assistance; or

18 ‘‘(ii) demonstrates that the family has in19 come from employment or other sources (other

20 than public assistance), as determined in accord21 ance with requirements of the Secretary, that is

22 not less than twice the fair market rental for the

23 area established under subsection (e)(1) (or such

24 other amount as may be established by the Sec25 retary);
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1 ‘‘(C) except as provided by the Secretary,

2 demonstrates at the time the family initially re3 ceives tenant-based assistance under this sub4 section that one or more adult members of the

5 family have achieved employment for the period

6 as the Secretary shall require;

7 ‘‘(D) participates in a homeownership and

8 housing counseling program provided by the

9 agency; and

10 ‘‘(E) meets any other initial or continuing

11 requirements established by the public housing

12 agency in accordance with requirements estab13 lished by the Secretary.

14 ‘‘(2) MONTHLY ASSISTANCE PAYMENT.—

15 ‘‘(A) IN GENERAL.—Notwithstanding any

16 other provisions of this section governing deter17 mination of the amount of assistance payments

18 under this section on behalf of a family, the

19 monthly assistance payment for any family as20 sisted under this subsection shall be the amount

21 by which the fair market rental for the area es22 tablished under subsection (e)(1) exceeds 30 per23 cent of the family’s monthly adjusted income; ex24 cept that the monthly assistance payment shall

25 not exceed the amount by which the monthly
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1 homeownership expenses, as determined in ac2 cordance with requirements established by the

3 Secretary, exceeds 10 percent of the family’s

4 monthly income.

5 ‘‘(B) EXCLUSION OF EQUITY FROM IN6 COME.—For purposes of determining the month7 ly assistance payment for a family, the Sec8 retary shall not include in family income an

9 amount imputed from the equity of the family in

10 a dwelling occupied by the family with assist11 ance under this subsection.

12 ‘‘(3) RECAPTURE OF CERTAIN AMOUNTS.—Upon

13 sale of the dwelling by the family, the Secretary shall

14 recapture from any net proceeds the amount of addi15 tional assistance (as determined in accordance with

16 requirements established by the Secretary) paid to or

17 on behalf of the eligible family as a result of para18 graph (2)(B).

19 ‘‘(4) DOWNPAYMENT REQUIREMENT.—Each pub20 lic housing agency providing assistance under this

21 subsection shall ensure that each family assisted shall

22 provide from its own resources not less than 80 per23 cent of any downpayment in connection with a loan

24 made for the purchase of a dwelling. Such resources

25 may include amounts from any escrow account for
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1 the family established under section 23(d). Not more

2 than 20 percent of the downpayment may be provided

3 from other sources, such as from nonprofit entities

4 and programs of States and units of general local

5 government.

6 ‘‘(5) INELIGIBILITY UNDER OTHER PROGRAMS.—

7 A family may not receive assistance under this sub8 section during any period when assistance is being

9 provided for the family under other Federal home10 ownership assistance programs, as determined by the

11 Secretary, which shall include assistance under the

12 HOME Investment Partnerships Act, the Homeowner13 ship and Opportunity Through HOPE Act, title II of

14 the Housing and Community Development Act of

15 1987, and section 502 of the Housing Act of 1949.

16 ‘‘(6) INAPPLICABILITY OF CERTAIN PROVI17 SIONS.—Assistance under this subsection shall not be

18 subject to the requirements of the following provisions:

19 ‘‘(A) Subsection (h)(5) of this section.

20 ‘‘(B) Any other provisions of this section

21 governing maximum amounts payable to owners

22 and amounts payable by assisted families.

23 ‘‘(C) Any other provisions of this section

24 concerning contracts between public housing

25 agencies and owners.
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1 ‘‘(D) Any other provisions of this Act

2 that are inconsistent with the provisions of this

3 subsection.

4 ‘‘(7) REVERSION TO RENTAL STATUS.—

5 ‘‘(A) FHA-INSURED MORTGAGES.—If a

6 family receiving assistance under this subsection

7 for occupancy of a dwelling defaults under a

8 mortgage for the dwelling insured by the Sec9 retary under the National Housing Act, the fam10 ily may not continue to receive rental assistance

11 under this section unless the family (i) transfers

12 to the Secretary marketable title to the dwelling,

13 (ii) moves from the dwelling within the period

14 established or approved by the Secretary, and

15 (iii) agrees that any amounts the family is re16 quired to pay to reimburse the escrow account

17 under section 23(d)(3) may be deducted by the

18 public housing agency from the assistance pay19 ment otherwise payable on behalf of the family.

20 ‘‘(B) OTHER MORTGAGES.—If a family re21 ceiving assistance under this subsection defaults

22 under a mortgage not insured under the Na23 tional Housing Act, the family may not continue

24 to receive rental assistance under this section un-
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1 less it complies with requirements established by

2 the Secretary.

3 ‘‘(C) ALL MORTGAGES.—A family receiving

4 assistance under this subsection that defaults

5 under a mortgage may not receive assistance

6 under this subsection for occupancy of another

7 dwelling owned by one or more members of the

8 family.

9 ‘‘(8) DEFINITION OF FIRST-TIME HOMEOWNER.—

10 For purposes of this subsection, the term ‘first-time

11 homeowner’ means—

12 ‘‘(A) a family, no member of which has had

13 a present ownership interest in a principal resi14 dence during the 3 years preceding the date on

15 which the family initially receives assistance for

16 homeownership under this subsection; and

17 ‘‘(B) any other family, as the Secretary

18 may prescribe.

19 ‘‘(u) DEFINITIONS.—For purposes of this section:

20 ‘‘(1) ANNUAL CONTRIBUTIONS CONTRACT.—The

21 term ‘annual contributions contract’ means a contract

22 under subsection (b) between the Secretary and a pub23 lic housing agency to provide amounts for rental as24 sistance payments under this section to the public

25 housing agency.
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1 ‘‘(2) ASSISTANCE CONTRACT.—The term ‘assist2 ance contract’ means a contract under subsection (c)

3 between a public housing agency (or the Secretary)

4 and an owner to make rental assistance payments

5 under this section to the owner.

6 ‘‘(3) DEBT SERVICE.—The term ‘debt service’

7 means the required payments for principal and inter8 est made with respect to a mortgage secured by hous9 ing assisted under this Act.

10 ‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The

11 term ‘drug-related criminal activity’ means the illegal

12 manufacture, sale, distribution, use, or possession

13 with intent to manufacture, sell, distribute, or use, of

14 a controlled substance (as such term is defined in sec15 tion 102 of the Controlled Substances Act).

16 ‘‘(5) OWNER.—The term ‘owner’ means any pri17 vate person or entity, including a cooperative, an

18 agency of the Federal Government, or a public hous19 ing agency, having the legal right to lease or sublease

20 dwelling units, and such term shall include any prin21 cipals, general partners, primary shareholders, and

22 other similar participants in any entity owning a

23 multifamily housing project (as such term is defined

24 in subsection (p)(3)), as well as the entity itself.
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1 ‘‘(6) PARTICIPATING JURISDICTION.—The term

2 ‘participating jurisdiction’ means a State or unit of

3 general local government designated by the Secretary

4 to be a participating jurisdiction under title II of the

5 Cranston-Gonzalez National Affordable Housing Act.

6 ‘‘(7) PROJECT-BASED ASSISTANCE.—The term

7 ‘project-based assistance’ means rental assistance

8 under this section that is attached to a structure pur9 suant to subsection (i).

10 ‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in11 clude, with respect to members of a cooperative, the

12 charges under the occupancy agreements between such

13 members and the cooperative.

14 ‘‘(9) RENTAL ASSISTANCE.—The term ‘rental as15 sistance’ means assistance provided under this section

16 on behalf of low-income families for the rental of a

17 dwelling unit.

18 ‘‘(10) TENANT-BASED ASSISTANCE.—The term

19 ‘tenant-based assistance’ means rental assistance

20 under this section that is not project-based assist21 ance.’’.

22 (b) CONFORMING AMENDMENTS.—

23 (1) UNITED STATES HOUSING ACT OF 1937.—The

24 United States Housing Act of 1937 is amended—
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1 (A) in section 3(a)(1) (42 U.S.C.

2 1437a(a)(1)), by striking ‘‘(other than a family

3 assisted under section 8(o) or (y) or paying rent

4 under section 8(c)(3)(B))’’ and inserting ‘‘(other

5 than a family assisted under section 8(t) or pay6 ing rent under section 8(f)(2))’’;

7 (B) in section 5 (42 U.S.C. 1437c)—

8 (i) in subsection (c)(7)(C), by striking

9 ‘‘section 8(b)(1)’’ each place it appears and

10 inserting ‘‘section 8’’;

11 (ii) in subsection (j)(1)(B)(i), by strik12 ing ‘‘section 8(o)(6)’’ and inserting ‘‘section

13 8’’; and

14 (iii) in subsection (j)(1)(D), by strik15 ing ‘‘subsection (b) or (o) of’’;

16 (C) in section 6(p)(1)(B) (42 U.S.C.

17 1437d(p)(1)(B)), by striking ‘‘holding certificates

18 and vouchers’’ and inserting ‘‘eligible and ap19 proved for assistance’’;

20 (D) in section 21(b)(3)—

21 (i) by striking ‘‘a certificate under sec22 tion 8(b)(1) or a housing voucher under sec23 tion 8(o)’’ and inserting ‘‘tenant-based as24 sistance under section 8’’; and
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1 (ii) by striking ‘‘such certificate’’ and

2 inserting ‘‘such assistance’’;

3 (E) in section 23—

4 (i) in subsection (a), by striking ‘‘as5 sistance under the certificate and voucher

6 programs’’ and inserting ‘‘tenant-based as7 sistance’’;

8 (ii) in subsection (b)—

9 (I) in paragraph (1), by striking

10 ‘‘assistance under subsection (b) or (o)

11 of’’ and inserting ‘‘tenant-based assist12 ance under’’; and

13 (II) in paragraph (4), by striking

14 ‘‘Assistance under the certificate or

15 voucher programs’’ and inserting

16 ‘‘Tenant-based assistance’’;

17 (iii) in subsection (c)(1), by striking

18 ‘‘assistance under the certificate and vouch19 er programs of’’ and inserting ‘‘tenant20 based assistance from’’;

21 (iv) in subsection (d)(3) (as added by

22 section 185(b) of the Housing and Commu23 nity Development Act of 1992 (Public Law

24 102–550; 106 Stat. 3747)), by striking ‘‘sec25 tion 8(y)’’ and inserting ‘‘section 8(t)’’; and
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1 (v) in subsection (h)(1)—

2 (I) by striking ‘‘section 8(q) for

3 the costs incurred in administering the

4 provision of certificate and voucher’’

5 and inserting ‘‘section 8(n) for the

6 costs incurred in administering the

7 provision of tenant-based’’; and

8 (II) by striking ‘‘section

9 8(q)(2)(A)(i)’’ and inserting ‘‘section

10 8(n)(2)(A)’’; and

11 (G) in section 304(g)(3) (42 U.S.C.

12 1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)

13 and section 8(o)(9)’’ and inserting ‘‘section 8’’.

14 (2) ALLOCATION OF ASSISTED HOUSING

15 FUNDS.—Section 213 of the Housing and Community

16 Development Act of 1974 (42 U.S.C. 1439) is amend17 ed—

18 (A) in subsection (d)—

19 (i) in paragraph (1)(A)(ii), by striking

20 ‘‘section 8(b)(1)’’ each place it appears and

21 inserting ‘‘section 8’’; and

22 (ii) in paragraph (2), by striking ‘‘sec23 tion 8(d)’’ and inserting ‘‘section 8(i)’’;

24 (B) in subsection (e), by striking ‘‘section

25 8(b)(1)’’ and inserting ‘‘section 8’’.
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1 (3) SUPPORTIVE HOUSING FOR ELDERLY FAMI2 LIES.—Section 801(d)(1)(B) of the Cranston-Gonzalez

3 National Affordable Housing Act (12 U.S.C. 1701q

4 note) is amended by striking ‘‘section 8(c)(1)’’ and

5 inserting ‘‘section 8(e)’’.

6 (4) ELDERLY INDEPENDENCE.—Section 803 of

7 the Cranston-Gonzalez National Affordable Housing

8 Act (42 U.S.C. 8012) is amended—

9 (A) in subsection (a), by striking ‘‘housing

10 certificates and vouchers’’ and inserting ‘‘assist11 ance under section 8 of the United States Hous12 ing Act of 1937’’; and

13 (B) in subsection (b)—

14 (i) in the 1st sentence, by striking ‘‘not

15 more than 1,500 incremental vouchers and

16 certificates under sections 8(b) and 8(o) of

17 the United States Housing Act of 1937’’

18 and inserting ‘‘incremental assistance under

19 section 8 of the United States Housing Act

20 of 1937 on behalf of not more than 1,500

21 frail elderly persons’’;

22 (ii) in the 3rd sentence, by striking

23 ‘‘the housing certificate or voucher program

24 of the agency’’ and inserting ‘‘the agency’s
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1 program for assistance under such section

2 8’’; and

3 (iii) in the last sentence, by striking

4 ‘‘sections 8(b) and 8(o)’’ and inserting ‘‘sec5 tion 8’’.

6 (5) REVISED CONGREGATE HOUSING SERV7 ICES.—Section 802(k)(6)(B) of the Cranston-Gonzalez

8 National Affordable Housing Act (42 U.S.C.

9 8011(k)(6)(B)) is amended by striking ‘‘subsection

10 (d)(2)’’ and inserting ‘‘subsection (i)’’.

11 (6) HOUSING FOR PERSONS WITH AIDS.—Sub12 title D of title VIII of the Cranston-Gonzalez National

13 Affordable Housing Act is amended—

14 (A) in section 859(a)(2) (42 U.S.C.

15 12908(a)(2)) by striking ‘‘section 8(p)’’ each

16 place it appears and inserting ‘‘section 8(m)(1)’’;

17 and

18 (B) in section 860(a) (42 U.S.C. 12909(a)),

19 by striking ‘‘section 8(n)’’ and inserting ‘‘section

20 8(l)’’.

21 (7) MC KINNEY ACT.—Section 441(b) of the

22 Stewart B. McKinney Homeless Assistance Act (42

23 U.S.C. 11401(b)) is amended—

24 (A) by striking ‘‘section 8(n)’’ and inserting

25 ‘‘section 8(l)’’; and
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1 (B) by adding at the end the following new

2 sentence: ‘‘Moderate rehabilitation under this sec3 tion shall be carried out in the manner provided

4 under the provisions of section 8(e) of the United

5 States Housing Act of 1937, as such section was

6 in effect (pursuant to section 289(b)(2) of the

7 Cranston-Gonzalez National Affordable Housing

8 Act) immediately before the enactment of the

9 Housing and Community Development Act of

10 1994.’’.

11 (8) FLEXIBLE SUBSIDY PROGRAM.—Section 201

12 of the Housing and Community Development Amend13 ments of 1978 (12 U.S.C. 1715z–1a) is amended—

14 (A) in subsection (m)(2)(A), by striking

15 ‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’; and

16 (B) in subsection (o), by striking ‘‘section

17 8(v)’’ and inserting ‘‘section 8(q)(2)’’.

18 (9) HUD-OWNED PROJECTS.—Section 203 of the

19 Housing and Community Development Amendments

20 of 1978 (12 U.S.C. 1701z–11) is amended—

21 (A) in subsection (e)(1)(D)—

22 (i) in clause (i)(IV), by inserting before

23 the semicolon the following: ‘‘, as such sec24 tion was in effect (pursuant to section

25 289(b)(2) of the Cranston-Gonzalez National
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1 Affordable Housing Act) immediately before

2 the enactment of the Housing and Commu3 nity Development Act of 1994’’; and

4 (ii) in clause (ii), by striking ‘‘section

5 8(b)’’ and inserting ‘‘section 8’’;

6 (B) in subsection (g)(2), by striking ‘‘,

7 8(d)(1)(A)(i), and 8(o)(3)(B)’’ and inserting ‘‘

8 and 8(h)(2)(iii)’’; and

9 (C) in subsection (h)(2), by striking ‘‘sec10 tion 8(c)’’ and inserting ‘‘section 8(e)’’.

11 (10) HOUSING ACCESS.—Section 204 of the

12 Housing and Community Development Amendments

13 of 1978 (12 U.S.C. 1701z–12) is amended by striking

14 ‘‘to a holder of a certificate of eligibility under that

15 section solely because of such prospective tenant’s sta16 tus as a certificate holder’’ and inserting ‘‘to a family

17 that is approved for assistance under such section

18 solely because of such the family’s status as assisted

19 under such section’’.

20 (11) ELIHPA OF 1987.—The references in sec21 tions 225(b)(3)(D), 226(a)(3), and 228(a)(4) of the

22 Emergency Low Income Housing Preservation Act of

23 1987 (as in effect immediately before the enactment of

24 the Cranston-Gonzalez National Affordable Housing

25 Act) to section 8(b) of the United States Housing Act
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1 of 1937 shall be considered to refer to section 8(e) of

2 the United States Housing Act of 1937 (as amended

3 by the Housing and Community Development Act of

4 1994).

5 (12) LIHPRHA OF 1990.—Title II of the Hous6 ing and Community Development Act of 1987 (42

7 U.S.C. 4101 et seq.) is amended—

8 (A) in section 215(a)—

9 (i) in paragraph (1), by striking ‘‘sec10 tion 8(c)’’ and inserting ‘‘section 8(e)’’; and

11 (ii) in paragraph (2), by striking ‘‘sec12 tion 8(c)(1)’’ and inserting ‘‘section

13 8(e)(1)’’;

14 (B) in section 220(d)(3)(B), by striking

15 ‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;

16 (C) in section 222—

17 (i) in subsection (a)(2)(D), by striking

18 ‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;

19 and

20 (ii) in subsection (d)(2)(C)(i), by strik21 ing ‘‘sections 8(b) and 8(o) of the United

22 States Housing Act of 1937 (other than

23 project-based assistance attached to the

24 housing)’’ and inserting ‘‘tenant-based as-
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1 sistance under section 8 of the United

2 States Housing Act of 1937’’;

3 (D) in section 223(a), by striking ‘‘the cer4 tificate and voucher programs under sections

5 8(b) and 8(o)’’ and inserting ‘‘section 8’’; and

6 (E) in section 226(b)(6)(B), by striking

7 ‘‘sections 8(d)(1)(A) and 8(o)(3)’’ and inserting

8 ‘‘section 8(h)(2)’’.

9 (13) DISASTER RELIEF.—

10 (A) TENANT-BASED ASSISTANCE.—Section

11 931 of the Cranston-Gonzalez National Afford12 able Housing Act (42 U.S.C. 1437c note) is

13 amended—

14 (i) in the section heading, by striking

15 ‘‘CERTIFICATES AND VOUCHERS’’ and

16 inserting ‘‘TENANT-BASED ASSIST17 ANCE’’; and

18 (ii) by striking ‘‘assistance under the

19 certificate and voucher programs under sec20 tions 8 (b) and (o)’’ and inserting ‘‘tenant21 based assistance under section 8’’.

22 (B) MODERATE REHABILITATION ASSIST23 ANCE.—Section 932 of the Cranston-Gonzalez

24 National Affordable Housing Act (42 U.S.C.

25 1437c note) is amended by inserting after ‘‘such
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1 Act’’ the following: ‘‘, as such section was in ef2 fect (pursuant to section 289(b)(2) of the Cran3 ston-Gonzalez National Affordable Housing Act)

4 immediately before the enactment of the Housing

5 and Community Development Act of 1994,’’.

6 (14) PUBLIC HOUSING MINCS DEMONSTRA7 TION.—Section 522(f)(6)(B) of the Cranston-Gonzalez

8 National Affordable Housing Act (42 U.S.C. 1437f

9 note) is amended—

10 (A) by striking ‘‘assistance under section

11 8(b)’’ and inserting ‘‘tenant-based assistance

12 under section 8’’; and

13 (B) by striking ‘‘section 8(d)(1)(A)(i)’’ and

14 inserting ‘‘section 8(h)(2)’’.

15 (15) PUBLIC HOUSING NEW CONSTRUCTION IN16 COME ELIGIBILITY.—Section 545(c)(2) of the Cran17 ston-Gonzalez National Affordable Housing Act (42

18 U.S.C. 1437f note) is amended by striking ‘‘section

19 8(d)(1)(A)(ii)’’ and inserting ‘‘section 8(h)(3)’’.

20 (16) SECTION 8 EXCESSIVE RENT BURDEN

21 DATA.—Section 550(b) of the Cranston-Gonzalez Na22 tional Affordable Housing Act (42 U.S.C. 1437f note)

23 is amended—
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1 (A) in paragraph (1), by striking ‘‘under

2 the certificate and voucher programs established’’

3 and inserting ‘‘with tenant-based assistance’’;

4 (B) in the first sentence of paragraph (2),

5 by striking ‘‘, for each’’ and all that follows

6 through ‘‘participating in the program’’ and in7 serting ‘‘the percentage of families receiving ten8 ant-based assistance’’; and

9 (C) in paragraph (3), by striking ‘‘assist10 ance under the certicate or voucher program’’

11 and inserting ‘‘tenant-based assistance under sec12 tion 8 of the United States Housing Act of

13 1937’’.

14 (17) RURAL HOUSING PRESERVATION GRANTS.—

15 Section 533(a) of the Housing Act of 1949 (42 U.S.C.

16 1490m) is amended by striking ‘‘assistance payments

17 as provided by section 8(o)’’ and inserting ‘‘tenant18 based assistance payments under section 8 (including

19 assistance in accordance with section 8(f)(2)’’.

20 (18) FEDERALLY ASSISTED HOUSING OCCUPANCY

21 STANDARDS.—Section 643(b)(2) of the Housing and

22 Community Development Act of 1992 (42 U.S.C.

23 13603(b)(2)) is amended by striking ‘‘section 8(d)(1)’’

24 and inserting ‘‘section 8(h)’’.
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1 (19) RESERVATION OF SECTION 8 UNITS FOR

2 DISABLED FAMILIES.—Section 655 of the Housing

3 and Community Development Act of 1992 (42 U.S.C.

4 13615) is amended by striking ‘‘section 8(d)(1)(A)(i)

5 of the United States Housing Act of 1937 and the

6 first sentence of section 8(o)(3)(B) of such Act’’ and

7 inserting ‘‘section 8(h)(2) of the United States Hous8 ing Act of 1937’’.

9 (20) GAO REPORT ON LEAD EXPOSURE.—Sec10 tion 1056(a) of the Housing and Community Devel11 opment Act of 1992 (42 U.S.C. 4855) is amended by

12 striking ‘‘subsections (b) and (o) of’’.

13 (21) NATIONAL HOUSING ACT.—The National

14 Housing Act is amended—

15 (A) in section 203(v) (12 U.S.C. 1709(v)),

16 as added by section 185(c)(1)(B) of the Housing

17 and Community Development Act of 1992, by

18 striking ‘‘section 8(y)’’ and inserting ‘‘section

19 8(t)’’; and

20 (B) in section 236(f)(5)(A)(i) (12 U.S.C.

21 1715z–1(f)(5)(A)(i)), by striking ‘‘section 8(c)’’

22 and inserting ‘‘section 8(e)’’.

23 (c) APPLICABILITY.—The amendments under this sec24 tion are made on the date of the enactment of this Act, but

25 shall apply on and after October 1, 1995, only to assistance
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1 under section 8 of the United States Housing Act of 1937

2 provided pursuant to an assistance contract entered into

3 or renewed on or after such date. Any such assistance pro4 vided pursuant to an assistance contract entered into before

5 such date shall be subject to the provisions of such section

6 8 as in effect immediately before the enactment of this Act

7 or otherwise applicable to such assistance.

8 (d) TRANSITION.—

9 (1) CONVERSION.—The Secretary may provide

10 for the conversion of assistance under the certificate

11 and voucher programs, as such programs existed be12 fore the date of the enactment of this Act, to the cer13 tificate program established under the amendments

14 under this section.

15 (2) CONTINUATION OF ASSISTANCE.—The Sec16 retary of Housing and Urban Development shall take

17 any action necessary to ensure that the provision of

18 assistance under section 8 of the United States Hous19 ing Act of 1937 to families receiving assistance under

20 such section on the date of the enactment of this Act

21 is not interrupted because of the amendments under

22 this section.

23 (e) REGULATIONS.—The Secretary shall implement the

24 amendments under this section by regulation issued after

25 notice and opportunity for public comment.
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1 SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST

2 MORTGAGES FOR SECTION 8 PROJECTS.

3 Section 8 of the United States Housing Act of 1937

4 (42 U.S.C. 1437f), as amended by the preceding provisions

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

6 following new subsection:

7 ‘‘(v) REFINANCING INCENTIVE.—For a project that (1)

8 was constructed, substantially rehabilitated, or moderately

9 rehabilitated under this section, (2) is subject to an assist10 ance contract under this section, and (3) was subject to a

11 mortgage that has been refinanced under section 223(a)(7)

12 or section 223(f) of the National Housing Act to lower the

13 periodic debt service payments of the owner, the Secretary

14 may pay the owner the amount of the up front costs to the

15 owner of refinancing. The Secretary may make such pay16 ments only from savings in the amount of assistance pay17 ments, as determined by the Secretary on a project-by18 project basis and after application of amounts in accord19 ance with section 1012 of the Stewart B. McKinney Home20 less Assistance Amendments Act of 1988, that result from

21 the refinancing during the first year after the refinancing.’’.

22 SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS

23 RESIDUAL RECEIPTS.

24 (a) IN GENERAL.—The Secretary of Housing and

25 Urban Development shall carry out a demonstration pro26 gram, in conjunction with State housing agencies, under
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1 which the Secretary, at the request of owners of qualified

2 projects, makes amounts in the account for residual receipts

3 or excess amounts for the qualified projects available for use

4 under model programs to expand the supply of affordable

5 housing.

6 (b) LIMITATION.—The Secretary may not make any

7 amounts available for use under the demonstration program

8 under this section from the account of a qualified project

9 for residual receipts or excess amounts unless the amount

10 remaining in the account, together with replacement re11 serves for the project, is sufficient (in the determination of

12 the Secretary) to maintain, manage, and preserve the

13 project as affordable housing.

14 (c) QUALIFIED PROJECTS.—For purposes of this sec15 tion, the term ‘‘qualified project’’ means a housing project—

16 (1) assisted with project-based assistance under

17 section 8 of the United States Housing Act of 1937;

18 or

19 (2) constructed or substantially rehabilitated

20 pursuant to assistance provided under section 8(b)(2)

21 of the United States Housing Act of 1937, as such sec22 tion existed before November 30, 1983.

23 SEC. 145. TREATMENT OF CERTAIN PROJECTS.

24 (a) CONVERSION OF SECTION 23 PROJECT.—From

25 amounts available for the conversion of the Tamaqua
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1 Highrise project in the Borough of Tamaqua, Pennsylvania,

2 from a leased housing contract under section 23 of the Unit3 ed States Housing Act of 1937 to tenant-based assistance

4 under section 8 of such Act, the Secretary of Housing and

5 Urban Development shall, to the extent such amounts are

6 made available in appropriation Acts, enter into an obliga7 tion for the conversion of the project to a project-based rent8 al assistance contract under section 8 of such Act, notwith9 standing the requirement for rehabilitation or the percent10 age limitations under section 8(d)(2) of such Act (as in ef11 fect before the date of the enactment of this Act) and sub12 paragraph (A) of section 8(i)(2) of such Act (as amended

13 by section 143 of this Act).

14 (b) COMPLIANCE WITH REHABILITATION REQUIRE15 MENT.—Rehabilitation activities undertaken by E.T.C. En16 terprises in connection with 16 scattered-site dwelling units

17 that were rehabilitated to provide housing for low-income

18 families and are located in Perth Amboy, New Jersey, are

19 hereby deemed to have been conducted pursuant to an agree20 ment with the Secretary of Housing and Urban Develop21 ment under clause (ii) of the third sentence of section

22 8(d)(2)(A) of the United States Housing Act of 1937 (as

23 in effect before the date of the enactment of this Act) and

24 subparagraph (A) of section 8(i)(2) of such Act (as amended

25 by section 143 of this Act).
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1 SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF

2 OWNERS AND LANDLORDS IN SECTION 8

3 RENTAL ASSISTANCE PROGRAM.

4 The Secretary of Housing and Urban Development

5 shall conduct a study—

6 (1) to determine the extent to which the require7 ments of section 8(p)(2) of the United States Housing

8 Act of 1937 (as amended by this Act) and section 8(t)

9 of such Act (as in effect before the enactment of this

10 Act) cause owners of multifamily rental housing to

11 abstain from entering into contracts for housing as12 sistance payments under such section; and

13 (2) to identify other factors causing owners of

14 such housing to abstain from entering into such con15 tracts.

16 In conducting the study, the Secretary shall consult a sig17 nificant number of owners in a wide range of areas. The

18 Secretary shall submit a report to the Congress describing

19 the results of the study not later than February 1, 1996.

20 SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STAND21 ARDS.

22 The Secretary of Housing and Urban Development

23 shall conduct a study of the existing standards for housing

24 quality for dwelling units assisted under the program for

25 rental assistance under section 8 of the United States Hous26 ing Act of 1937. The study shall determine—
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1 (1) whether the standards are effective in ensur2 ing decent, safe, and sanitary housing;

3 (2) how, and the extent to which, the standards

4 are enforced; and

5 (3) how the standards or the enforcement of the

6 standards may be improved.

7 The Secretary shall submit a report to the Congress

8 not later than 2 years after the date of the enactment of

9 this Act describing the results of the study and containing

10 any recommendations of the Secretary to carry out para11 graph (3).

12 Subtitle D—Renewal of Expiring

13 Contracts for Section 8 New Con14 struction and Substantial Reha15 bilitation Projects

16 SEC. 151. FINDINGS AND PURPOSE.

17 (a) CONGRESSIONAL FINDINGS.—The Congress finds

18 that—

19 (1) housing built or substantially rehabilitated

20 pursuant to section 8 of the United States Housing

21 Act of 1937 is an important national resource that

22 has provided decent, safe, and affordable housing to

23 hundreds of thousands of low-income families who

24 otherwise would not have obtained affordable housing;
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1 (2) the Federal Government is the steward of this

2 assisted housing stock and has an affirmative obliga3 tion to preserve it as housing for low-income families,

4 consistent with considerations of fairness to all inter5 ested parties, including owners, residents, property

6 managers, the community in which the housing is lo7 cated, and taxpayers;

8 (3) because section 8(e)(1) of the United States

9 Housing Act of 1937 (as in effect prior to November

10 30, 1983) provided, for the most part, that contracts

11 to make assistance payments to owners of newly con12 structed or substantially rehabilitated housing fi13 nanced with assistance of a loan made by, or insured,

14 guaranteed or intended for purchase by the Federal

15 Government, other than pursuant to section 244 of the

16 National Housing Act, could not exceed 20 years and

17 because such housing was constructed or substantially

18 rehabilitated during the period from 1975 to 1985, a

19 substantial number of contracts that provide for such

20 assistance will soon expire (with other housing con21 structed or substantially rehabilitated pursuant to

22 such section of law supported through housing assist23 ance contracts of longer duration, which will expire

24 at a later time);
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1 (4) failure to enter into new housing assistance

2 contracts under equitable and financially sound terms

3 and conditions will reduce the supply of decent, safe,

4 and affordable housing for low-income Americans,

5 while the demonstrated need for such housing remains

6 great;

7 (5) in order for the urban and rural population

8 centers of the United States to regain their viability,

9 the housing stock in such population centers must be

10 preserved, which includes preserving housing built or

11 substantially rehabilitated under section 8 of the

12 United States Housing Act of 1937;

13 (6) assisted housing projects located in areas of

14 relative affluence can promote racial, social, and eco15 nomic integration, and such projects should be main16 tained as part of the affordable housing inventory to

17 the maximum extent practicable;

18 (7) the number of units of housing currently re19 ceiving project-based section 8 assistance should not

20 be reduced as a result of the expiration of any current

21 contracts; and

22 (8) the number of households currently assisted

23 by reason of residence in housing projects receiving

24 project-based section 8 assistance should not be re25 duced as a result of the expiration of any current con-
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1 tracts to provide project-based assistance, though some

2 of the specific families currently living in such hous3 ing may either receive such assistance in another lo4 cation or become recipients of tenant-based assistance

5 under appropriate circumstances (with the preference,

6 as a matter of public policy, to the continued assist7 ance of such households through project-based assist8 ance).

9 (b) PURPOSE.—It is the purpose of this subtitle to pro10 vide for the preservation of affordable housing constructed

11 or substantially rehabilitated pursuant to section 8 of the

12 United States Housing Act of 1937, and to provide afford13 able housing opportunities for at least the same number of

14 families as are provided such housing by reason of their

15 residence in housing projects receiving project-based assist16 ance under such section, in a manner that is administra17 tively efficient, cost-effective, and fair to all interested par18 ties, including owners, residents, property managers and

19 the communities in which the housing is located.

20 SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTEN21 TION TO RENEW.

22 (a) NOTICE TO OWNER.—Not later than 27 months be23 fore the date of expiration of an expiring contract (or, in

24 the case of a qualified project subject to an expiring contract

25 for which the date of expiration occurs less than 27 months
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1 after the date of the enactment of this Act, not later than

2 6 months after the date of enactment of this Act), the Sec3 retary shall notify the owner of the qualified project, in

4 writing, that the owner has an affirmative obligation pur5 suant to subsection (b).

6 (b) NOTICE BY OWNER TO SECRETARY.—Not later

7 than 24 months before the date of expiration of an expiring

8 contract (or, in the case of a qualified project subject to

9 an expiring contract for which the date of expiration occurs

10 less than 27 months after the date of the enactment of this

11 Act, not later than 9 months after the date of enactment

12 of this Act), the owner of the qualified project shall simulta13 neously—

14 (1) submit to the Secretary written notice stating

15 whether or not the owner intends to enter into a new

16 contract pursuant to this subtitle for project-based as17 sistance for the qualified project; and

18 (2) submit a copy of the notice to the chief execu19 tive officer of the State or unit of general local gov20 ernment for the jurisdiction within which the project

21 is located, any mortgagee of the project, the tenants

22 of the project (including any resident council for the

23 project), and such other individuals or entities as the

24 Secretary may require.
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1 (c) SUBMISSION OF PROPOSAL TO ENTER INTO NEW

2 CONTRACT.—If in the notice required by subsection (b) the

3 owner indicates an intention to enter into a new contract

4 for assistance for the qualified project, not later than 3

5 months after submitting such notice to the Secretary, the

6 owner shall simultaneously—

7 (1) submit to the Secretary a proposal specifying

8 terms and conditions for the new contract, which

9 shall comply with the requirements for new contracts

10 under this subtitle; and

11 (2) submit a copy of the notice to the chief execu12 tive officer of the State or unit of general local gov13 ernment for the jurisdiction within which the project

14 is located, any mortgagee of the project, the tenants

15 of the project (including any resident council for the

16 project), and such other individuals or entities as the

17 Secretary may require.

18 (d) CAPITAL NEEDS ASSESSMENT.—

19 (1) REQUIREMENT.—Within a reasonable period

20 of time after receiving a proposal under subsection (c)

21 to enter into a new contract for a qualified project,

22 the Secretary shall conduct a comprehensive assess23 ment of the needs of the project to determine the reha24 bilitation needs and replacement reserves necessary to
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1 preserve the project during the ensuing 10-year pe2 riod.

3 (2) CONTENT.—The assessment shall obtain the

4 same information regarding the qualified project that

5 is required to be contained in a comprehensive needs

6 assessment under section 403 of the Housing and

7 Community Development Act of 1992 for a covered

8 multifamily housing property subject to title IV of

9 such Act, shall assess the management performance

10 for the project, and shall obtain any other informa11 tion as the Secretary considers appropriate for pur12 poses of this subtitle regarding the project, tenants,

13 and market area in which the project is located.

14 (e) TENANT AND COMMUNITY PARTICIPATION.—

15 (1) ESTABLISHMENT OF PROCEDURES.—The

16 Secretary shall establish procedures that provide an

17 opportunity for tenants of a qualified project (includ18 ing any resident council) and other affected parties to

19 participate effectively in the process established under

20 this section and section 153 to determine whether and

21 under what terms and conditions a new contract will

22 be provided for the project or other assistance will be

23 made available.

24 (2) CONTENT OF PROCEDURES.— The procedures

25 established under this subsection shall include provid-
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1 ing timely and adequate written notice of the pro2 posed decisions of the owner and the Secretary re3 garding the qualified project, timely access to all rel4 evant information (not including information deter5 mined to be proprietary under standards established

6 by the Secretary), an adequate period to analyze such

7 information and submit comments to the Secretary

8 (which the Secretary shall take into consideration in

9 carrying out this subtitle), and, if requested, arrang10 ing meetings with representatives of the Secretary

11 and the owner.

12 (3) APPLICABILITY.—The procedures established

13 under this subsection shall provide for the participa14 tion of tenants of a qualified project and other af15 fected parties in at least the following actions:

16 (A) Physical inspection of the qualified

17 property under section 155(b) and determination

18 of capital needs of a property pursuant to sub19 section (d).

20 (B) Any determination under section 154

21 regarding the owner of the project.

22 (C) Review of notice and any proposal sub23 mitted by the owner under subsections (b) and

24 (c) of this section.
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1 (D) Determination of the response of the

2 Secretary under section 153.

3 (E) Determination of the terms of any new

4 contract for the project.

5 (F) Establishing and carrying out any plan

6 for sale of the project under section 157(c)(1).

7 (G) Establishing and carrying out of any

8 plan to provide assistance under subsection (d)

9 or (f) of section 157.

10 (4) MINIMUM PERIOD FOR TENANT NOTIFICA11 TION.—The Secretary shall notify tenants of a quali12 fied project of any agreement to enter into a new con13 tract for the project or of the failure to enter into a

14 new contract for the project, as the case may be, not

15 less than 12 months before the expiration of expiring

16 contract. If, in the case of a failure to enter into a

17 new contract for a qualified project, the Secretary

18 fails to comply with the requirement under the pre19 ceding sentence, the Secretary shall (subject only to

20 the availability of budget authority) provide such ad21 ditional assistance as may be necessary to extend the

22 contract for such 12-month period.

23 SEC. 153. SECRETARY’S RESPONSE TO OWNER’S PROPOSAL.

24 (a) REQUIREMENT.—Except in the case of an owner

25 who submits a notice under section 152(b) stating an inten-
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1 tion not to enter into a new contract and in the case of

2 rejection of an owner’s proposal under subsection (c), not

3 later than 90 days after an owner submits a proposal under

4 section 152(c) for a qualified project (or not later than 30

5 days after the expiration of the period under section 152(b),

6 in the case of an owner failing to provide notice under such

7 subsection), the Secretary shall take action under subsection

8 (b) to enter into a new contract.

9 (b) RESPONSE TO OWNER’S PROPOSAL.—Subject only

10 to the availability of budget authority, the Secretary shall

11 take the following actions:

12 (1) STATUS QUO CONTRACTS.—In the case of a

13 qualified project for which the maximum monthly

14 rents for units in the project that are assisted under

15 the expiring contract do not (24 months before the

16 date of the expiration of the contract) exceed 110 per17 cent of the fair market rentals for dwelling units of

18 the applicable sizes and types of dwelling units in the

19 market area in which the qualified housing is located

20 and a qualified project for which the owner agrees to

21 reduce the maximum monthly rents so that the rents

22 do not exceed 110 percent of such fair market rent23 als—

24 (A) if the owner’s proposal under section

25 152(c) provides for establishing maximum
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1 monthly rents under the contract for dwelling

2 units in the project pursuant to the procedure

3 under section 156(a) and otherwise complies

4 with the requirements of this subtitle, the Sec5 retary shall agree to the owner’s proposal and

6 shall enter into a new contract for the project;

7 and

8 (B) if the owner’s proposal under section

9 152(c) does not provide for establishing maxi10 mum monthly rents under the contract for dwell11 ing units in the project pursuant to the proce12 dure under section 156(a) or otherwise fails to

13 comply with the requirements of this title, or the

14 owner has failed to submit a proposal, the Sec15 retary shall make an offer to enter into a new

16 contract for the project (by modifying the own17 er’s proposal under section 152(c), if the owner

18 has submitted a proposal) and, if the owner ac19 cepts, the Secretary shall enter into such a new

20 contract for the project.

21 The Secretary may not offer or agree to enter into a

22 new contract for a qualified project, or enter into such

23 a contract, that establishes maximum monthly rents

24 under the contract for dwelling units in the project

25 pursuant to the procedure under section 156(a) unless
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1 the maximum monthly rents under the expiring con2 tract for the project meet the requirements of the mat3 ter in this paragraph preceding subparagraph (A).

4 (2) BUDGET-BASED CONTRACTS.—In the case of

5 a qualified project for which the maximum monthly

6 rents for units in the project that are assisted under

7 the expiring contract (24 months before the date of the

8 expiration of the contract) exceed 110 percent of the

9 fair market rentals for dwelling units of the applica10 ble sizes and types of dwelling units in the market

11 area in which the qualified housing is located—

12 (A) if the owner’s proposal under section

13 152(c) provides for establishing maximum

14 monthly rents under the contract for dwelling

15 units in the project pursuant to the procedure

16 under section 156(b) and otherwise complies

17 with the requirements of this subtitle, the Sec18 retary shall agree to the owner’s proposal under

19 section 152(c) and shall enter into a new con20 tract for the project; and

21 (B) if the owner’s proposal under section

22 152(c) does not provide for establishing maxi23 mum monthly rents under the contract for dwell24 ing units in the project pursuant to the proce25 dure under section 156(b) or otherwise fails to
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1 comply with the requirements of this title, or the

2 owner has failed to submit a proposal, the Sec3 retary shall make an offer to enter into a new

4 contract for the project (by modifying the own5 er’s proposal under section 152(c), if the owner

6 has submitted a proposal) and, if the owner ac7 cepts, the Secretary shall enter into such a new

8 contract for the project.

9 (3) AVOIDING OVERCONCENTRATION OF LOW-IN10 COME HOUSING.—Notwithstanding paragraphs (1)

11 and (2), with respect to a qualified project for which

12 the Secretary is to provide a new contract under ei13 ther such paragraph, the Secretary may reduce the

14 number of dwelling units otherwise required to be as15 sisted under the new contract (pursuant to section

16 155(a)(3)) if—

17 (A) the Secretary determines that the

18 project is located in a market area in which

19 there is a high concentration of dwelling units

20 occupied by or affordable to very low-income

21 families;

22 (B) the Secretary consults with the owner of

23 the project, the tenants of the project (including

24 any resident council), and representatives of the

25 community in which the project is located re-
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1 garding such reduction and action under sub2 paragraph (D);

3 (C) the owner and affected tenants consent

4 to the reduction and action under subparagraph

5 (D);

6 (D) the Secretary provides project-based as7 sistance for a number of dwelling units that is

8 not less than the difference between the number

9 of units otherwise required to be assisted under

10 the new contract and the number actually as11 sisted under the new contract; and

12 (E) the dwelling units assisted under sub13 paragraph (D) are located in market areas other

14 than the area in which the qualified project is lo15 cated and such areas do not have a high con16 centration of dwelling units occupied by or af17 fordable to very low-income families.

18 The Secretary shall determine the maximum monthly

19 rents for dwelling units assisted under subparagraph

20 (D) using the procedures under paragraph (2) of this

21 subsection and section 156. In determining the maxi22 mum monthly rents under the new contract for any

23 dwelling units in the qualified project, the allowance

24 under section 156(b)(1)(G) may be increased to reflect
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1 higher costs per unit assisted attributable to assisting

2 less units.

3 (c) REJECTION OF OWNER’S PROPOSAL.—The Sec4 retary may reject a proposal submitted pursuant to section

5 152(c) only for a reason contained in the regulations issued

6 under section 154.

7 (d) NOTICE OF SECRETARY’S ACTION.—The Secretary

8 shall simultaneously—

9 (1) submit written notice of any action under

10 subsection (b) or (c) to the owner of the qualified

11 project for which such action is taken; and

12 (2) submit a copy of the notice to the chief execu13 tive officer of the appropriate State or unit of general

14 local government for the jurisdiction within which the

15 project is located, any mortgagee of the project, the

16 tenants of the project (including any resident council

17 for the project), and such other individuals or entities

18 as the Secretary may require.

19 Notice under this subsection shall be submitted not later

20 than the expiration of the period for the qualified project

21 referred to in subsection (a). If the Secretary does not pro22 vide notice to the owner as required under this subsection,

23 the proposal of the owner shall be considered to have been

24 accepted without modification. Any notice rejecting a pro-
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1 posal by the owner shall clearly state the reason for rejecting

2 the proposal.

3 (e) MODIFICATIONS TO OWNER’S PROPOSAL.—The

4 Secretary may propose modifications to an owner’s pro5 posal submitted pursuant to section 152(c) only to the ex6 tent necessary to make the proposal comply with the re7 quirements under this subtitle for acceptance by the Sec8 retary.

9 (f) LIMITATION ON SECRETARY’S AUTHORITY TO RE10 JECT OR MODIFY.—The Secretary may not reject or pro11 pose modifications to a proposal submitted pursuant to sec12 tion 152(c) because an enforcement action is pending

13 against the owner. Notwithstanding any other provision of

14 this subtitle, in such event, the Secretary shall, subject only

15 to the availability of budget authority, extend the applicable

16 expiring contract for the period until the enforcement action

17 is concluded.

18 SEC. 154. LIMITATION ON NEW CONTRACTS.

19 (a) IN GENERAL.—The Secretary may refuse to enter

20 into a new contract with the owner of a qualified project

21 if the Secretary determines that the owner of the project

22 submitting the proposal has committed—

23 (1) violations of laws, regulations, regulatory

24 agreements, or other agreements for which the Sec25 retary may impose suspension, debarment, civil
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1 money penalties, and such other major forms of en2 forcement action available to the Secretary under law;

3 or

4 (2) other substantial and repeated violations of

5 laws, regulations, regulatory agreements or other

6 agreements that have not been cured within a reason7 able period of time after notice was provided to the

8 owner.

9 (b) REGULATIONS.—Not later than 45 days after the

10 date of enactment of this Act, the Secretary shall publish

11 for comment proposed regulations identifying the violations

12 that, under subsection (a), prohibit the Secretary from en13 tering into a new contract.

14 SEC. 155. REQUIRED TERMS OF NEW CONTRACTS.

15 (a) IN GENERAL.—The Secretary may accept the pro16 posal of an owner (made under section 152(c) or negotia17 tions pursuant to such a proposal), and may propose modi18 fications to such a proposal and make an offer to enter into

19 a new contract for qualified housing, only if the agreement

20 provides for a new contract for the qualified housing that

21 complies with the following requirements:

22 (1) RENEWAL FOR REMAINING USEFUL LIFE OF

23 PROPERTY.—A new contract shall contain binding

24 commitments necessary to ensure that—
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1 (A) the contract shall be renewed as pro2 vided in paragraph (5) upon expiration for the

3 entire remaining useful life of the qualified

4 project subject to the contract, subject only to the

5 availability of budget authority, the provisions of

6 this subtitle, and the provisions of the contract

7 or law regarding termination of the contract for

8 cause; and

9 (B) renewal of the contract under para10 graph (5) shall not alter or affect the terms of the

11 contract.

12 (2) PROJECT-BASED ASSISTANCE.—A new con13 tract shall provide that the Secretary shall provide

14 project-based assistance under this subtitle for dwell15 ing units in the qualified project subject to the con16 tract based upon maximum monthly rents (including

17 utilities and all maintenance and management

18 charges) that the owner may receive for the dwelling

19 units.

20 (3) LOW-INCOME OCCUPANCY.—A new contract

21 shall provide that, during the term of the contract, the

22 owner shall make available for occupancy only by

23 families that (at the time of their initial occupancy)

24 are low-income families or very low-income families

25 (as the contract shall provide) the number of dwelling
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1 units in the qualified project subject to the contract

2 for which assistance is provided under the expiring

3 contract.

4 (4) MAINTENANCE OF HOUSING.—The new con5 tract shall require the owner of the qualified project

6 to maintain the housing in compliance with housing

7 quality standards established by the Secretary for

8 housing assisted under section 8 of the United States

9 Housing Act of 1937.

10 (5) CONTRACT TERM.—A new contract shall have

11 a term of 60 months and shall be renewable for addi12 tional 60-month terms without limitation.

13 (6) SECTION 8 REQUIREMENTS.—A new contract

14 shall provide that the qualified project subject to the

15 contract shall be subject to the requirements applica16 ble to housing assisted under section 8(i) of the Unit17 ed States Housing Act of 1937.

18 (7) CAPITAL NEEDS.—A new contract shall con19 tain such terms as the Secretary and the owner agree

20 to regarding conducting rehabilitation and replace21 ment activities for the project and may provide

22 amounts to the owner for meeting immediate rehabili23 tation and replacement needs of the qualified project

24 if the Secretary determines that providing such

25 amounts would be more cost effective to the Secretary
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1 than financing such activities through increased

2 project debt.

3 (8) MAXIMUM MONTHLY RENTS.—A new contract

4 shall provide that the maximum monthly rents for the

5 project under the contract shall be the amount deter6 mined under section 156 upon entering into the con7 tract, and shall be adjusted annually as provided

8 under such section, except that—

9 (A) the maximum monthly rents shall be re10 determined in the manner provided under sec11 tions 153(b) and 156 upon each renewal of the

12 contract; and

13 (B) the owner of the project may, at any

14 time, submit a written request to the Secretary

15 for a redetermination of the maximum monthly

16 rents for the project using the procedure under

17 section 156(b) and, after such request, the rents

18 shall be determined using such method for the re19 mainder of the term of the contract.

20 (9) CONSIDERATION OF TENANT CONCERNS.—A

21 new contract shall provide that the owner of the

22 qualified housing shall—

23 (A) establish and, in good faith, carry out

24 a procedure, acceptable to the tenants (including

25 any resident council) of the project, for tenants
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1 to submit to the owner comments, questions, and

2 requests regarding any issues concerning the

3 project (including the condition, management,

4 and ownership of the project); and

5 (B) make a good faith effort to respond to

6 such comments, questions, and requests within a

7 reasonable period of time.

8 (b) PROPERTY INSPECTIONS AND MANAGEMENT RE9 VIEWS REQUIRED BY SECRETARY.—The Secretary shall

10 conduct an inspection of the physical condition of each

11 qualified project for which a new contract is entered into

12 under this subtitle and shall conduct a review of the man13 agement of each such qualified project, not less than once

14 every 3 years. The Secretary may conduct such an inspec15 tion or review more often, as the Secretary considers appro16 priate, taking into consideration requests and comments

17 from tenants of the qualified project (including any resident

18 council) and from representatives of the unit of general local

19 government for the jurisdiction in which the project is lo20 cated.

21 SEC. 156. MAXIMUM MONTHLY RENT UNDER NEW CON22 TRACTS.

23 (a) STATUS QUO RENT DETERMINATION.—

24 (1) PROCEDURE.—If the maximum monthly

25 rents under a new contract for a qualified project are
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1 to be established under this subsection, the rents shall

2 be established at the amount equal to the maximum

3 monthly rents under the expiring contract existing at

4 the time 24 months before the date of the expiration

5 of the contract (or an amount mutually agreed to by

6 the Secretary and the owner that is less than such

7 amount).

8 (2) RENT ADJUSTMENTS.—Annual increases in

9 the maximum monthly rents for any qualified project

10 for which the rents under a new contract are to be de11 termined under this subsection shall be based on the

12 application of the annual adjustment factor, pursuant

13 to section 8(d)(3) of the United States Housing Act

14 of 1937.

15 (3) SERVICE COORDINATORS.—Notwithstanding

16 paragraph (1), the maximum monthly rents estab17 lished (and adjusted) under this subsection for a

18 qualified project shall be increased to the extent nec19 essary to provide for the total costs of a service coordi20 nator under section 161 for the project.

21 (b) BUDGET-BASED RENT DETERMINATION.—

22 (1) PROCEDURE.—If the maximum monthly

23 rents under a new contract for a qualified project are

24 to be established under this subsection, the rents shall

25 be established at such a level or levels that would pro-
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1 vide income sufficient to support the following actual

2 and projected costs of operating the project:

3 (A) DEBT SERVICE.—The debt service on

4 any federally-insured or assisted loans for the

5 qualified project or any other loans for the

6 project approved by the Secretary at the time the

7 loans were entered into or subsequently, except

8 that the Secretary may provide that such debt

9 service shall not include—

10 (i) any debt service attributable to any

11 equity loan insured under section 241(f) of

12 the National Housing Act or any similar

13 loan made for the purposes of liquidating

14 the equity of the owner in the qualified

15 project; and

16 (ii) if the Secretary requires refinanc17 ing of debt under section 159 and the owner

18 does not refinance as provided in such sec19 tion, any debt service relating to such debt

20 in excess of the amount that the Secretary

21 determines is appropriate under prevailing

22 market conditions at the time such refi23 nancing was required to occur.

24 (B) OPERATING EXPENSES.—Operating ex25 penses for the qualified project, including costs of
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1 measures to reduce or control crime, and the

2 total costs of a service coordinator under section

3 161 for the project.

4 (C) RESERVES.—Adequate reserves for the

5 qualified project, as determined pursuant to a

6 comprehensive needs assessment for the project

7 prepared and approved in accordance with title

8 IV of the Housing and Community Development

9 Act of 1992 or in such other manner as the Sec10 retary may require.

11 (D) ALLOWANCE FOR LOSSES.—An allow12 ance for potential operating losses of the quali13 fied project caused by vacancies and failure to

14 collect rents, which shall be an amount equal to

15 5 percent of any rental income from the project

16 (including any amounts paid in rent for utili17 ties).

18 (E) DISTRIBUTION TO OWNER.—An allow19 ance for a distribution to the owner of the quali20 fied project, which shall be an amount per dwell21 ing unit in the project per year that is deter22 mined by the Secretary taking into consideration

23 the size, location, and amount of rents of the

24 project. The allowance shall be adjusted upon

25 any renewal of the new contract, in the manner
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1 determined by the Secretary, to provide for infla2 tion.

3 (F) TENANT ORGANIZATION.—An amount

4 for technical assistance to the resident council (if

5 any) of the qualified project or for technical as6 sistance in organizing or operating a resident

7 council, which shall be an amount equal to $20

8 per dwelling unit in the project per year. The

9 Secretary shall provide that such amounts shall

10 not be made available to the owner but shall be

11 accessible only by resident councils or by tenants

12 for establishment or operation of resident coun13 cils.

14 (G) ALLOWANCE FOR UNIQUE COSTS.—An

15 allowance for unique costs specific to and char16 acteristic of qualified housing or other housing

17 for low-income families receiving project-based

18 assistance from the Secretary, in the amount

19 agreed to by the Secretary and the owner.

20 (H) ALLOWANCE FOR HIGH-RENT AREAS.—

21 If the Secretary determines that the prevailing

22 rents in the market area in which a qualified

23 project is located exceed the fair market rentals

24 for dwelling units of the applicable sizes and
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1 types of dwelling units in the market area in

2 which the qualified housing is located—

3 (i) an allowance may be provided (at

4 the discretion of the Secretary) in an

5 amount necessary to provide maximum

6 monthly rents under this subsection in an

7 amount equal to the prevailing market rents

8 in the area; and

9 (ii) an allowance in the amount re10 ferred to in clause (i) shall be provided if

11 the Secretary determines that there is a lack

12 of sufficient housing in the market area in

13 which the project is located that is afford14 able to low-income families.

15 (2) RENT ADJUSTMENTS.—

16 (A) IN GENERAL.—Annual increases in the

17 maximum monthly rents for any qualified

18 project for which the rents under a new contract

19 are to be determined under this subsection shall

20 be based on the application of the operating cost

21 adjustment factor, pursuant to section 8(d)(3) of

22 the United States Housing Act of 1937.

23 (B) EXCESSIVE ADJUSTMENTS.—The Sec24 retary may require the owner of a qualified

25 project for which a new contract has been pro-
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1 vided to submit a proposal in the manner pro2 vided under paragraph (3) for redetermination

3 of maximum monthly rents for the project if—

4 (i) not less than 2 rent adjustments

5 have been made pursuant to subparagraph

6 (A) for the project;

7 (ii) an intervening redetermination of

8 maximum monthly rents for the project

9 pursuant to paragraph (1) has not oc10 curred; and

11 (iii) the Secretary determines that the

12 rents resulting from the rent adjustments

13 are materially in excess of the rents nec14 essary to support the costs for the project

15 described in paragraph (1).

16 If pursuant to such a redetermination the Sec17 retary determines that the rents for the project

18 are greater than the amount described in clause

19 (iii), the Secretary may reduce the maximum

20 monthly rents for the project to the amount de21 scribed in clause (iii), effective on the first day

22 of the month following written notification by

23 the Secretary to the owner of such new rents.

24 (3) TIMING.—If the Secretary requests an owner

25 of a qualified project or a project for which a new
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1 contract is to be provided to submit a proposal for

2 maximum monthly rents based on costs described in

3 paragraph (1) and the owner fails to submit such a

4 proposal during the 90-day period beginning upon re5 ceipt of such request, the Secretary may establish the

6 maximum monthly rents for the project based on such

7 information as is available to the Secretary from the

8 owner’s most recent audited financial statements,

9 without the agreement of the owner.

10 (4) ADDITIONAL INFORMATION FROM OWNER.—

11 The owner of a qualified project (including a project

12 for which a new contract has been provided) may, at

13 any time, submit to the Secretary information re14 garding prevailing rent levels for comparable dwelling

15 units in the market area in which the project is lo16 cated and the Secretary shall consider such informa17 tion in making any determinations or agreements

18 under this subsection regarding the project.

19 SEC. 157. ACTIONS IN CASES OF FAILURE TO ENTER INTO

20 NEW CONTRACT.

21 (a) NOTICE.—If—

22 (1) the owner of a qualified project indicates, in

23 the notice required under section 152(b), an intention

24 not to enter into a new contract,
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1 (2) the Secretary and the owner fail to agree to

2 enter into a new contract after a reasonable period of

3 negotiation, or

4 (3) the Secretary refuses to enter into a new con5 tract with the owner pursuant to section 154,

6 the Secretary shall provide notice containing the informa7 tion under subsection (b) to the owner, the chief executive

8 officer of the State or unit of general local government for

9 the jurisdiction within which the project is located, any

10 mortgagee of the project, the tenants of the project (includ11 ing any resident council for the project), and such other

12 individuals or entities as the Secretary considers appro13 priate.

14 (b) CONTENTS OF NOTICE.—Notice under subsection

15 (a) shall identify the qualified project, state the intention

16 of the Secretary to enter into a new contract for the project

17 with an owner of the project acceptable to the Secretary,

18 state that the Secretary may take either of the actions au19 thorized under subsection (c) with respect to the project, and

20 propose maximum monthly rents for the project subject to

21 the requirements of sections 153(b) and 156.

22 (c) ATTEMPTED SALE OF PROJECT.—After providing

23 notice under subsection (b) for a qualified project—

24 (1) the Secretary shall negotiate with the owner

25 and other interested parties to develop a plan for sale
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1 of the project in a timely manner to a new owner who

2 agrees to enter into a new contract with the Secretary

3 and who may be a nonprofit or for-profit entity, a

4 State or local governmental entity, a tenant (or group

5 of tenants) or a resident council; a new contract

6 under this paragraph may be provided pursuant to

7 the loan management program under section 8(q)(2)

8 of the United States Housing Act of 1937 or a con9 tract through a public housing agency for project10 based assistance under section 8(i) of such Act; and

11 (2) notwithstanding paragraph (1), the Sec12 retary may acquire the qualified project by con13 demnation, under judicial process, pursuant to the

14 first section of the Act of August 1, 1888 (Chapter

15 728, 25 Stat. 357; 40 U.S.C. 257).

16 (d) FAILURE TO SELL PROJECT.—

17 (1) TRANSFER OF PROJECT-BASED ASSISTANCE

18 TO OTHER HOUSING.—If, after providing notice under

19 subsection (b) for a qualified project and making rea20 sonable efforts under subsection (c)(1) the Secretary

21 fails to enter into a new contract for the project (and

22 determines that action under subsection (c)(2) is not

23 appropriate), the Secretary shall, subject only to the

24 availability of budget authority and the absence of

25 qualified requests for such assistance, provide project-
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1 based rental assistance for at least the same number

2 of dwelling units in housing located within the same

3 market area as the qualified project as were assisted

4 under the expiring contract for the project. Tenants of

5 the qualified project shall be offered initial occupancy

6 in dwelling units assisted pursuant to this para7 graph.

8 (2) CONSULTATION.—In providing project-based

9 assistance under this subsection, the Secretary shall

10 consult with nonprofit and for-profit entities, State

11 and local governmental entities, and tenants and any

12 resident council of the project, regarding acquisition

13 and operation of housing to be assisted under this

14 subsection.

15 (e) TECHNICAL ASSISTANCE.—Using a portion of any

16 amounts in an account for residual receipts established for

17 a qualified project and any amounts made available for

18 new contracts under this subtitle, the Secretary shall (sub19 ject to the availability of such amounts) provide for tech20 nical assistance for tenants of the project (including any

21 resident councils), nonprofit organizations, nonprofit devel22 opers of affordable housing, and State and local govern23 mental agencies to the extent necessary to—
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1 (1) develop the capacity and ability of such enti2 ties to carry out activities pursuant to subsections

3 (c)(1) and (d); and

4 (2) assist such entities in preparing submissions,

5 proposals, and such other documents and entering

6 into contracts, agreements, and other arrangements

7 involved in such activities.

8 (f) ASSISTANCE FOR PROJECT TENANTS.—

9 (1) RIGHT TO RECEIVE ASSISTANCE.—If, in the

10 notice required by section 152(b), the owner indicates

11 a preference not to enter into a new contract or the

12 Secretary fails to enter into a new contract for the

13 project, the Secretary shall provide assistance under

14 paragraphs (2) and (3), subject only to the availabil15 ity of budget authority, for each family who on the

16 date of the expiration of the expiring contract resides

17 in a dwelling unit in the project that is assisted

18 under the expiring contract.

19 (2) TYPE OF ASSISTANCE.—Assistance required

20 under this paragraph shall be provided, as deter21 mined by the Secretary, in one of the following forms:

22 (A) TENANT-BASED ASSISTANCE.—Assist23 ance may be provided as tenant-based rental as24 sistance under the provisions of section 8(b) of

25 the United States Housing Act of 1937, as in ef-
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1 fect on June 1, 1994, except that in providing

2 such assistance the Secretary may increase the

3 maximum monthly rental amount to the extent

4 necessary to permit families remain in the dwell5 ing unit they occupy in the qualified project or

6 to obtain a comparable dwelling unit in the

7 same market area.

8 (B) OCCUPANCY IN A UNIT RECEIVING

9 PROJECT-BASED ASSISTANCE.—The family may

10 be offered occupancy of an available dwelling

11 unit that is assisted under a contract pursuant

12 to subsection (c)(1) or (d).

13 (3) RELOCATION ASSISTANCE.—Assistance re14 quired under this section is assistance to the tenant

15 of a qualified project in the amount of the total cost

16 of relocating to a unit assisted under paragraph (2).

17 SEC. 158. CONTRACT EXTENSION.

18 Subject to the availability of budget authority, the Sec19 retary may extend any expiring contract in force on the

20 date of enactment of this Act, under identical terms and

21 conditions, for not more than 24 months if the Secretary

22 determines that such extension is necessary to protect ten23 ants of the qualified project subject to the contract or the

24 General Insurance Fund established under section 519 of

25 the National Housing Act, except that—
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1 (1) the authority under this section may be exer2 cised only once for any contract or qualified project;

3 and

4 (2) such authority may not be exercised for a

5 qualified project for which the owner has provided

6 timely notification under section 152(b) indicating

7 an intention not to enter into a new contract for the

8 project, unless the owner expressly agrees to the exten9 sion or the Secretary is taking action pursuant to sec10 tion 152(e)(5) or 153(f).

11 SEC. 159. FINANCING AND RESTRUCTURING UNDERLYING

12 DEBT AND TREATMENT OF RESIDUAL RE13 CEIPTS.

14 (a) IN GENERAL.—Before entering into a new contract

15 with a present or future owner of a qualified project, the

16 Secretary shall encourage and, subject to the exceptions in

17 subsection (d), may require—

18 (1) the restructuring of debt if the costs to the

19 Federal Government of such restructuring are less

20 than the costs incurred by the Federal Government

21 under a contract for assistance under section 8 of the

22 United States Housing Act of 1937 at the project’s

23 current debt level; and
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1 (2) the refinancing of all debt that is financed at

2 a rate 250 basis points in excess of prevailing market

3 rates for debt with a similar maturity.

4 Any project refinancing or debt restructuring shall be ac5 companied by a corresponding reduction in the maximum

6 monthly rents for the project.

7 (b) FHA-INSURED PROJECTS.—Subject to the excep8 tions set forth in subsection (d), the Secretary shall require

9 an owner of a project subject to a mortgage insured by the

10 Secretary which is to be assisted under a new contract to

11 certify that any debt that meets the conditions of paragraph

12 (1) or (2) of subsection (a) will be restructured or refi13 nanced, as applicable.

14 (c) STATE-FINANCED PROJECTS.—The Secretary shall

15 establish procedures to inform State agencies that insure

16 or finance mortgages of the provisions of this subtitle, and

17 shall encourage such agencies to refinance or otherwise re18 structure debt which meets the conditions of paragraph (1)

19 or (2) of subsection (a).

20 (d) EXCEPTIONS.—The Secretary shall not require the

21 refinancing or debt restructuring of any project, if—

22 (1) the project was financed through obligations

23 issued by a State or local housing agency or the Gov24 ernment National Mortgage Association and such refi25 nancing or debt restructuring is inconsistent with ap-
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1 plicable law or agreements governing such financing;

2 and

3 (2) in the Secretary’s determination, the refi4 nancing will not result in significant savings to the

5 Department of Housing and Urban Development or to

6 the mortgagor.

7 (e) DISCRETIONARY ASSISTANCE.—To facilitate re8 newal consistent with this section and section 156(b), the

9 Secretary may, from amounts appropriated under this sub10 title—

11 (1) pay the owner’s nonmortgageable transaction

12 costs;

13 (2) provide the State insuring agency or the

14 mortgagee with an equitable share of the savings re15 captured from the refinancing;

16 (3) apply a share of the savings recaptured from

17 the refinancing to the project’s reserves or capital ex18 penses;

19 (4) bifurcate the note to leave a first note service20 able within rents reflective of the local market; and

21 (5) assist in financing a project’s rehabilitation

22 needs through the provision of up-front grants from—

23 (A) residual receipts distributed to the Sec24 retary;
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1 (B) the budget authority provided for in2 creases in new contracts to pay for rehabilita3 tion, if the Secretary determines that the provi4 sion of such grants in addition to rental assist5 ance under section 8 of the United States Hous6 ing Act of 1937 would be cost-effective; and

7 (C) savings resulting from refinancing or

8 otherwise restructuring the debt.

9 (f) RESIDUAL RECEIPTS.—

10 (1) IN GENERAL.—Residual receipts distributed

11 to the Secretary shall be retained by the Secretary for

12 use under this subtitle.

13 (2) EXPEDITED ACQUISITION.—The Secretary

14 may expedite the acquisition of residual receipts by

15 entering into agreements with owners of housing cov16 ered by an expiring contract to provide such owner

17 with a share of the receipts, not to exceed 15 percent,

18 only if the share will be applied to the project or to

19 its reserves.

20 SEC. 160. RETENTION OF PROGRAM SAVINGS BY SEC21 RETARY.

22 Any savings achieved through implementation of the

23 provisions of this Act, except for such savings made avail24 able to State or local housing agencies pursuant to section

25 159, shall be retained by the Secretary to increase affordable
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1 housing opportunities, in such manner as may be deter2 mined by statute, or as may be determined by the Secretary.

3 SEC. 161. SUPPORTIVE SERVICES.

4 (a) PROVISION OF SERVICE COORDINATOR.—Each

5 owner of qualified project or a project for which a new con6 tract has been provided shall provide, to the extent amounts

7 are available pursuant to subsection (b) or another provi8 sion of this subtitle, that the project is served (on a full9 or part-time basis in a manner approved by the Secretary)

10 by a service coordinator under section 671 of the Housing

11 and Community Development Act of 1992. The preceding

12 sentence shall apply only after the expiration of the 270-

13 day period beginning on the date of the enactment of this

14 Act.

15 (b) PAYMENT OF COSTS.—Notwithstanding any other

16 provision of law, the salary and other costs associated with

17 employing a service coordinator shall be considered an eligi18 ble project expense for a qualified project which may be

19 fully funded under the expiring contract, as provided by

20 the Secretary.

21 SEC. 162. DELEGATION OF AUTHORITY.

22 The Secretary may delegate the authority of the Sec23 retary under this subtitle, as the Secretary considers appro24 priate, to officials of States and units of general local gov-
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1 ernment, who may also act as contract administrators

2 under applicable law.

3 SEC. 163. DEFINITIONS.

4 For purposes of this subtitle—

5 (1) the term ‘‘expiring contract’’ means any con6 tract for assistance under section 8 of the United

7 States Housing Act of 1937 pursuant to the authority

8 referred to in paragraph (4)(A) of this subsection;

9 (2) the term ‘‘fair market rental’’ means the fair

10 market rental established pursuant to the authority

11 under—

12 (A) section 8(c)(1) of the United States

13 Housing Act of 1937, as such section existed be14 fore the date of the enactment of this Act; or

15 (B) section 8(e) of the United States Hous16 ing Act of 1937, as in effect after the date of the

17 enactment of this Act;

18 (3) the terms ‘‘low-income family’’ and ‘‘very

19 low-income family’’ have the meanings given the

20 terms in section 3 of the United States Housing Act

21 of 1937;

22 (4) the term ‘‘maximum monthly rents’’ means,

23 with respect to a new contract for a qualified project,

24 the maximum monthly rent that the owner is entitled
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1 to receive for dwelling units in the project assisted

2 under the new contract;

3 (5) the term ‘‘new contract’’ means—

4 (A) a contract pursuant to this subtitle to

5 provide project-based assistance for a qualified

6 project; and

7 (B) a contract pursuant to the provisions of

8 subsection (d) or (f)(2)(B) of section 157 or sec9 tion 153(b)(3);

10 (6) the term ‘‘owner’’ includes the current or sub11 sequent owner or owners of a qualified project;

12 (7) the terms ‘‘qualified project’’ and ‘‘project’’

13 mean a multifamily housing project that—

14 (A) was constructed or substantially reha15 bilitated pursuant to assistance provided under

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

17 of 1937, as such section existed before November

18 30, 1983; and

19 (B) is assisted under an expiring contract;

20 (8) the term ‘‘resident council’’ means any demo21 cratically operated organization of tenants of a quali22 fied project; and

23 (9) the term ‘‘Secretary’’ means the Secretary of

24 Housing and Urban Development.
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1 SEC. 164. REGULATIONS.

2 The Secretary shall issue any final regulations nec3 essary to carry out this subtitle, which shall take effect not

4 later than 6 months after the date of the enactment of this

5 Act. The regulations shall be issued after notice and oppor6 tunity for public comment in accordance with the procedure

7 under section 553 of title 5, United States Code, applicable

8 to substantive rules (notwithstanding subsections (a)(2),

9 (b)(B), and (d)(3) of such section).

10 SEC. 165. AUTHORIZATION OF APPROPRIATIONS.

11 There are authorized to be appropriated such sums as

12 may be necessary to carry out the provisions of this subtitle

13 for which amounts are not provided under section 5(c) of

14 the United States Housing Act of 1937.

15 Subtitle E—Homeownership

16 Programs

17 SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.

18 (a) AUTHORIZATION OF APPROPRIATIONS AND TECH19 NICAL ASSISTANCE.—

20 (1) IN GENERAL.—Section 402 of the Cranston21 Gonzalez National Affordable Housing Act (42 U.S.C.

22 12870) is amended by striking subsections (a) and (b)

23 and inserting the following new subsection:

24 ‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au25 thorized to be appropriated for grants under this title

26 $100,000,000 for fiscal year 1995 and $100,000,000 for fis-
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1 cal year 1996, which shall be available for activities author2 ized under subtitles B and C. Any amounts appropriated

3 pursuant to this subsection shall remain available until ex4 pended.’’.

5 (b) HOPE II MATCHING REQUIREMENTS.—Section

6 423(c)(1) of the Cranston-Gonzalez National Affordable

7 Housing Act (42 U.S.C. 12873(c)) is amended by striking

8 ‘‘33 percent’’ and inserting ‘‘25 percent’’.

9 (c) ELIGIBILITY UNDER HOPE III OF HOMES ON

10 LEASED LAND OWNED BY COMMUNITY LAND TRUSTS.—

11 Section 446(4) of the Cranston-Gonzalez National Afford12 able Housing Act (42 U.S.C. 12896(4)) is amended—

13 (1) by inserting ‘‘(A)’’ before ‘‘owned’’; and

14 (2) by inserting before the period at the end the

15 following: ‘‘, or (B) located on leased land owned by

16 a community land trust (as such term is defined in

17 section 233 of the HOME Investment Partnerships

18 Act)’’.

19 SEC. 172. NATIONAL HOMEOWNERSHIP FUND.

20 Subtitle A of title III of the Cranston-Gonzalez Na21 tional Affordable Housing Act (42 U.S.C. 12701 note) is

22 amended to read as follows:
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1 ‘‘Subtitle A—National

2 Homeownership Fund

3 ‘‘SEC. 301. SHORT TITLE.

4 ‘‘This subtitle may be cited as the ‘National Home5 ownership Fund Act’.

6 ‘‘SEC. 302. AUTHORITY.

7 ‘‘The Secretary of Housing and Urban Development

8 may make grants under this subtitle to States (including

9 State housing finance agencies), local housing finance agen10 cies, and nonprofit housing intermediaries to provide as11 sistance, in accordance with the provisions of this subtitle,

12 for the acquisition of principal residences for first-time

13 homebuyers (including homebuyers buying shares in lim14 ited equity cooperatives).

15 ‘‘SEC. 303. ELIGIBLE ASSISTANCE.

16 ‘‘A grantee may use amounts received under this sub17 title only to provide assistance to first-time homebuyers in

18 the following manners:

19 ‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance

20 payments to provide amounts for the downpayment

21 (including closing costs and other costs payable at the

22 time of closing) on a mortgage for the homebuyer.

23 ‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist24 ance payments to provide loans that have such terms
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1 for payment of interest and principal as may be de2 termined by the grantee.

3 ‘‘(3) CAPITALIZATION OF REVOLVING LOAN

4 FUNDS.—To establish revolving loan funds (or to

5 make grants to public organizations or agencies to es6 tablish such funds) to provide homeownership assist7 ance to eligible first-time homebuyers in accordance

8 with the provisions of this subtitle. Any grantee under

9 this subtitle (and any subgrantee of such a grantee)

10 shall provide an equal amount of local investment for

11 such revolving loan fund and any proceeds or repay12 ments from loans made under this paragraph shall be

13 returned to the revolving loan fund established under

14 this paragraph to be used for purposes related to this

15 section.

16 ‘‘(4) INTEREST RATE BUYDOWNS.—Assistance

17 payments so that the rate of interest payable on a

18 mortgage by the homebuyer does not exceed 6 percent.

19 ‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.

20 ‘‘(a) HOMEBUYER.—Assistance may be provided only

21 to homebuyers meeting the following requirements:

22 ‘‘(1) FIRST-TIME HOMEBUYER.—The homebuyer

23 is an individual who—

24 ‘‘(A)(i) (and whose spouse) has had no own25 ership in a principal residence during the 3-year
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1 period ending on the date of purchase of the

2 property with respect to which assistance pay3 ments are made under this subtitle;

4 ‘‘(ii) is a displaced homemaker who, except

5 for owning a home with his or her spouse or re6 siding in a home owned by the spouse, meets the

7 requirements of clause (i); or

8 ‘‘(iii) is a single parent who, except for

9 owning a home with his or her spouse or resid10 ing in a home owned by the spouse while mar11 ried, meets the requirements of clause (i); and

12 ‘‘(B) meets the requirements of subpara13 graph (A)(i), (ii), or (iii), except for owning, as

14 a principal residence, a dwelling unit whose

15 structure is not permanently affixed to a perma16 nent foundation in accordance with local or

17 other applicable regulations.

18 ‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The

19 aggregate annual income of the homebuyer and the

20 members of the family of the homebuyer residing with

21 the homebuyer, for the 12-month period preceding the

22 date of the application of the homebuyer for assist23 ance under this subtitle, does not exceed 115 percent

24 of the median income for a family of 4 persons (ad25 justed by family size) in the applicable metropolitan
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1 statistical area (or such other area that the Secretary

2 determines for areas outside of metropolitan statis3 tical areas). The Secretary shall provide for certifi4 cation of such income for purposes of initial eligi5 bility for assistance payments under this subtitle.

6 ‘‘(b) MORTGAGE.—Assistance may be provided only for

7 mortgages meeting the following requirements:

8 ‘‘(1) PRINCIPAL RESIDENCE.—The property sub9 ject to the mortgage is a single-family residence or

10 unit in a cooperative (including any manufactured

11 home park owned by residents or owned by nonprofit

12 organizations for future ownership by residents) or

13 condominium, or a single family residence located on

14 leased land owned by a community land trust, and

15 is the principal residence of the homebuyer.

16 ‘‘(2) MAXIMUM MORTGAGE AMOUNT.—The prin17 cipal obligation of the first mortgage and any second

18 mortgage assistance provided under this subtitle does

19 not exceed the principal amount that could be insured

20 under section 203(b) of the National Housing Act

21 with respect to a property having the same number

22 of dwelling units.

23 ‘‘(c) MINIMUM DOWNPAYMENT.—For first-time home24 buyers to receive downpayment assistance under section

25 303(a)(1), the homebuyer shall have paid not less than 1
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1 percent of the cost of acquisition of the property (excluding

2 any mortgage insurance premiums paid at the time the

3 mortgage is insured), as such cost is estimated by the Sec4 retary.

5 ‘‘SEC. 305. COUNSELING REQUIREMENTS.

6 ‘‘Each grantee under this subtitle shall ensure that

7 each homebuyer receiving assistance under this subtitle

8 from the grantee (or any subgrantee of such grantee) shall

9 be provided prepurchase and postpurchase homeownership

10 counseling from individuals certified by the Secretary

11 under section 106(e) of the Housing and Urban Develop12 ment Act of 1968.

13 ‘‘SEC. 306. ALLOCATION OF GRANT AMOUNTS.

14 ‘‘(a) IN GENERAL.—The Secretary may make a grant

15 under this subtitle only to a State (including a State hous16 ing finance agency), local housing finance agency, or non17 profit housing intermediary that submits to the Secretary

18 an application under this section that is approved by the

19 Secretary. Applications shall be made in such form and in

20 accordance with such procedures as the Secretary shall es21 tablish.

22 ‘‘(b) MINIMUM REQUIREMENTS.—An application

23 under this section shall contain a plan that describes how

24 the applicant will achieve the objectives of this subtitle. The

25 application shall include—
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1 ‘‘(1) a description of the geographic area, includ2 ing the revitalization area included, to be covered by

3 the program to provide assistance under this subtitle;

4 ‘‘(2) the characteristics of the households to be

5 served by the program;

6 ‘‘(3) a description and evidence of the commit7 ment of other public and private resources to be made

8 available in the revitalization area and other areas in

9 which homebuyers receive assistance under this sub10 title;

11 ‘‘(4) a description of any secondary market and

12 private mortgage insurance involvement and commit13 ment in connection with assistance under this sub14 title;

15 ‘‘(5) a description of how prepurchase and

16 postpurchase counseling will be provided to home17 buyers assisted under this subtitle;

18 ‘‘(6) a description of any restrictions on resale

19 and profits;

20 ‘‘(7) a description of existing affordable housing

21 programs and resources available to undertake reha22 bilitation of properties when needed;

23 ‘‘(8) a description of the process for award and

24 disbursement of assistance to homebuyers; and
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1 ‘‘(9) a description of the history of the applicant

2 in undertaking similar projects.

3 ‘‘(c) SELECTION.—The Secretary shall allocate

4 amounts available in any fiscal year for assistance under

5 this subtitle to States (including State housing finance

6 agencies), local housing finance agencies, or nonprofit hous7 ing intermediaries for homebuyers through a national com8 petition in accordance with criteria established by the Sec9 retary. The criteria shall include the extent to which the

10 applicant has experience in providing homeownership op11 portunities for low- and moderate-income households.

12 ‘‘(d) TARGETING FOR REVITALIZATION AREAS.—Each

13 grantee under this subtitle shall use not more than 50 per14 cent of any amounts received under this subtitle for assist15 ance under section 303(a) for homebuyers purchasing resi16 dences in revitalization areas using mortgages insured

17 under section 203(b) of the National Housing Act.

18 ‘‘SEC. 307. REPORT.

19 ‘‘Not later than 18 months after the date of the issu20 ance of final regulations pursuant to section 310, the Sec21 retary shall submit to the Congress a report stating the

22 amount of loans made in revitalization areas and in other

23 areas, the amount of loans insured under the National

24 Housing Act made in connection with assistance under this

25 section and the amount of privately insured loans made in
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1 connection with such assistance, and an analysis of the ef2 fectiveness of such assistance in assisting first-time home3 buyers.

4 ‘‘SEC. 308. DEFINITIONS.

5 ‘‘For purposes of this subtitle:

6 ‘‘(1) ASSISTANCE.—The term ‘assistance’

7 means—

8 ‘‘(A) any downpayment assistance provided

9 under section 303(1);

10 ‘‘(B) any second mortgage loan provided

11 under section 303(2);

12 ‘‘(C) any loan provided from a revolving

13 fund established under section 303(3); and

14 ‘‘(D) any payment for buydown of an inter15 est rate provided under section 303(4).

16 ‘‘(2) COMMUNITY LAND TRUST.—The term ‘com17 munity land trust’ has the meaning given the term in

18 section 233 of the Cranston-Gonzalez National Afford19 able Housing Act.

20 ‘‘(3) DISPLACED HOMEMAKER.—The term ‘dis21 placed homemaker’ means an individual who—

22 ‘‘(A) is an adult;

23 ‘‘(B) has not worked full-time, full-year in

24 the labor force for a number of years, but has
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1 during such years, worked primarily without re2 muneration to care for the home and family; and

3 ‘‘(C) is unemployed or underemployed and

4 is experiencing difficulty in obtaining or up5 grading employment.

6 ‘‘(4) REVITALIZATION AREA.—The term ‘revital7 ization area’ means—

8 ‘‘(A) an empowerment zone or enterprise

9 community approved under Subchapter U of

10 Chapter 1 of the Internal Revenue Code of 1986,

11 or an equivalent State-approved enterprise zone;

12 and

13 ‘‘(B) a neighborhood that, in the determina14 tion of the Secretary, is targeted by a unit of

15 general local government for revitalization using

16 coordinated affordable housing programs and en17 hanced supportive services.

18 ‘‘(5) NONPROFIT HOUSING INTERMEDIARY.—The

19 term ‘nonprofit housing intermediary’ means a non20 profit organization that the Secretary determines has

21 among its principal purposes activities described in

22 clauses (1) and (2) of section 802(a) of the Housing

23 and Community Development Act of 1974.

24 ‘‘(6) SINGLE PARENT.—The term ‘single parent’

25 means an individual who—
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1 ‘‘(A) is unmarried or legally separated from

2 a spouse; and

3 ‘‘(B)(i) has 1 or more minor children for

4 whom the individual has custody or joint cus5 tody; or

6 ‘‘(ii) is pregnant.

7 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

8 the Secretary of Housing and Urban Development.

9 ‘‘(8) STATE.—The term ‘State’ means the States

10 of the United States, the District of Columbia, the

11 Commonwealth of Puerto Rico, the Commonwealth of

12 the Northern Mariana Islands, Guam, the Virgin Is13 lands, American Samoa, and any other territory or

14 possession of the United States.

15 ‘‘(9) STATE HOUSING FINANCE AGENCY.—The

16 term ‘State housing finance agency’ has the meaning

17 given the term in section 802(b) of the Housing and

18 Community Development Act of 1974.

19 ‘‘(10) LOCAL HOUSING FINANCE AGENCY.—The

20 term ‘local housing finance agency’ means a housing

21 finance agency of any city, county, town, township,

22 parish, village, or other general purpose subdivision

23 of a State, or of any combination of such political

24 subdivisions recognized by the Secretary, or any other
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1 agency or instrumentality of such an entity that car2 ries out activities described in section 303.

3 ‘‘SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There are authorized to be appropriated for assist5 ance under this subtitle $115,000,000 for fiscal year 1995

6 and $215,000,000 for fiscal year 1996. Any amount appro7 priated under this section shall remain available until ex8 pended.

9 ‘‘SEC. 310. REGULATIONS.

10 ‘‘Not later than 10 days after the date of the enactment

11 of the Housing and Community Development Act of 1994,

12 the Secretary shall issue an interim rule to implement this

13 subtitle. The Secretary shall issue final regulations nec14 essary to implement this subtitle not later than 90 days

15 after issuance of such interim rule.’’.

16 SEC. 173. SECTION 235 MORTGAGE REFINANCING.

17 Section 235(r) of the National Housing Act (12 U.S.C.

18 1715z(r)) is amended—

19 (1) in paragraph (2)(C), by inserting after ‘‘refi20 nanced’’ the following: ‘‘, plus the costs incurred in

21 connection with the refinancing as described in para22 graph (4)(B) to the extent that the amount for those

23 costs is not otherwise included in the interest rate as

24 permitted by subparagraph (E) or paid by the Sec25 retary as authorized by paragraph (4)(B)’’;
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1 (2) in paragraph (4)—

2 (A) in the matter preceding subparagraph

3 (A), by inserting after ‘‘otherwise)’’ the following:

4 ‘‘and the mortgagee (with respect to the amount

5 described in subparagraph (A))’’; and

6 (B) in subparagraph (A), by inserting after

7 ‘‘mortgagor’’ the following: ‘‘and the mortgagee’’;

8 and

9 (3) by amending paragraph (5) to read as fol10 lows:

11 ‘‘(5) The Secretary shall use amounts of budget author12 ity recaptured from assistance payments contracts relating

13 to mortgages that are being refinanced for assistance pay14 ments contracts with respect to mortgages insured under

15 this subsection. The Secretary may also make such recap16 tured amounts available for incentives under paragraph

17 (4)(A) and the costs incurred in connection with the refi18 nancing under paragraph (4)(B). For purposes of sub19 section (c)(3)(A), the amount of recaptured budget author20 ity that the Secretary commits for assistance payments con21 tracts relating to mortgages insured under this subsection

22 and for amounts paid under paragraph (4) shall not be

23 construed as unused.’’.
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1 SEC. 174. HOUSING COUNSELING FOR HOMEOWNERSHIP

2 AND RENTAL HOUSING CHOICE.

3 (a) EXTENSIONS OF PROGRAMS.—

4 (1) EMERGENCY HOMEOWNERSHIP COUNSEL5 ING.—Section 106(c)(9) of the Housing and Urban

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

7 amended by striking ‘‘September 30, 1994’’ and in8 serting ‘‘September 30, 1996’’.

9 (2) PREPURCHASE AND FORECLOSURE-PREVEN10 TION COUNSELING DEMONSTRATION.—Section

11 106(d)(13) of the Housing and Urban Development

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

13 striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal year

14 1996’’.

15 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

16 106 of the Housing and Urban Development Act of 1968

17 (12 U.S.C. 1701x) is amended—

18 (1) in subsection (a), by striking paragraph (3)

19 (2) in subsection (c)—

20 (A) by striking paragraph (8); and

21 (B) by redesignating paragraph (9) (as

22 amended by subsection (a)) as paragraph (8);

23 (3) in subsection (d)—

24 (A) by striking paragraph (12); and

25 (B) by redesignating paragraph (13) (as

26 amended by subsection (a)) as paragraph (12);
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1 (4) in subsection (f), by striking paragraph (7);

2 and

3 (5) by adding at the end the following new sub4 section:

5 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated to carry out this section

7 $62,000,000 for fiscal year 1995 and $65,000,000 for fiscal

8 year 1996, of which amounts $30,000,000 shall be available

9 in each such fiscal year to carry out subsection (c). Any

10 amounts appropriated pursuant to this subsection shall re11 main available until expended.’’.

12 (c) OUTREACH.—Section 106(a) of the Housing and

13 Urban Development Act of 1968 (12 U.S.C. 1701x(a)) is

14 amended—

15 (1) in paragraph (1)—

16 (A) by striking ‘‘The’’ and inserting ‘‘AC17 TIVITIES.—The’’;

18 (B) in the matter preceding clause (i), by

19 inserting ‘‘or consortia of organizations’’ after

20 ‘‘organizations’’;

21 (C) in clause (iii), by striking ‘‘and’’ at the

22 end;

23 (D) in clause (iv), by striking the period at

24 the end and inserting a semicolon; and
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1 (E) by inserting at the end the following

2 new clauses:

3 ‘‘(v) the provision of outreach activities designed

4 to improve the access of low- and moderate-income

5 households to homeownership and sources of mortgage

6 credit;

7 ‘‘(vi) the provision of counseling to applicants

8 for and recipients of tenant-based assistance to enable

9 such families to move to areas of mixed incomes; and

10 ‘‘(vii) counseling and advice to tenants and

11 homeowners regarding understanding financial prac12 tices, matters, and transactions commonly engaged in

13 by, or involving, tenants and homeowners, including

14 activities and services provided by banks and other fi15 nancial institutions, extension of credit, standard

16 lending practices, checking accounts and check cash17 ing, and savings accounts, which shall be made avail18 able in such manners and languages appropriate for

19 low-income and disadvantaged families residing in

20 the area in which the entity providing the counseling

21 and advice is located.’’;

22 (2) in paragraph (2)—

23 (A) by striking ‘‘The’’ and inserting ‘‘ELI24 GIBLE HOMEOWNERS.—The’’; and
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1 (B) in the second sentence, by inserting ‘‘or

2 consortia of organizations’’ after ‘‘organiza3 tions’’; and

4 (3) by inserting after paragraph (2) the follow5 ing new paragraphs:

6 ‘‘(3) HOMEOWNERSHIP COUNSELING.—The Secretary

7 of Housing and Urban Development may contract with na8 tional, State, or community-based entities, and consortia

9 of such entities, and local public or private organizations

10 (including public housing agencies), to carry out activities

11 under paragraph (1)(v). Contractors shall be selected on a

12 competitive basis, in accordance with selection criteria de13 termined by the Secretary. The contractors shall carry out

14 activities prescribed by the Secretary, including activities

15 such as—

16 ‘‘(A) assisting homebuyers by working with

17 mortgage lending entities to make mortgage credit

18 available to low- and moderate-income homebuyers;

19 ‘‘(B) leveraging Federal funds with other sources

20 of funding to support activities under its counseling

21 program, including leveraging private, community22 based resources for the purpose of assisting prospec23 tive mortgagors achieve homeownership;

24 ‘‘(C) conducting outreach and marketing to pro25 spective homebuyers, particularly homebuyers in tar-
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1 geted neighborhoods with a high proportion of low2 and moderate-income and minority renter households;

3 ‘‘(D) coordinating a prepurchase homeownership

4 strategy that includes linking other counseling provid5 ers and community-based organizations approved by

6 the Secretary, assisting prospective homebuyers to re7 pair credit, educating potential homebuyers on the re8 quirements of homeownership, providing technical as9 sistance, assisting in the packaging of mortgage loan

10 applications, and matching a family’s resources with

11 appropriate government and private sector home12 ownership assistance programs; and

13 ‘‘(E) creating post-purchase counseling programs

14 that include default- prevention counseling to assist

15 homebuyers to retain their homes.

16 ‘‘(4) RENTAL COUNSELING.—The Secretary of Housing

17 and Urban Development may contract with national, State,

18 or community-based entities, and consortia of such entities,

19 and local public or private organizations (including public

20 housing agencies), to carry out activities under paragraph

21 (1)(vi). Contractors shall be selected on a competitive basis,

22 in accordance with selection criteria determined by the Sec23 retary. The contractors shall carry out activities prescribed

24 by the Secretary, including activities such as—
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1 ‘‘(A) advising families on strategies for obtaining

2 appropriate housing;

3 ‘‘(B) providing transportation assistance and

4 other services to give families access to areas without

5 high concentrations of persons living in poverty;

6 ‘‘(C) continuing advice and counseling to assist

7 families after moving to areas without high con8 centrations of persons living in poverty; and

9 ‘‘(D) undertaking aggressive outreach to poten10 tial owners to expand the availability of housing in

11 areas without high concentrations of persons living in

12 poverty.

13 Each entity receiving assistance pursuant to this para14 graph shall make counseling and assistance under this

15 paragraph available to low-income families who are re16 ferred to the entity pursuant to section 8(s)(2) of the United

17 States Housing Act of 1937, including counseling and as18 sistance regarding housing opportunities in the area of ju19 risdiction of the public housing agency involved and assist20 ance in obtaining new rental residences in areas within

21 such jurisdiction not having high concentrations of persons

22 living in poverty.’’.

23 (d) NOTIFICATION.—Section 106(c)(5)(C) of the Hous24 ing and Urban Development Act of 1968 is amended by

25 adding at the end the following new flush sentence:
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1 ‘‘Except as provided in clauses (i) and (ii), this

2 subparagraph may not be construed to apply to

3 any other loan for which the borrower is a vet4 eran.’’.

5 Subtitle F—Other Programs

6 SEC. 181. COMMUNITY PARTNERSHIPS AGAINST CRIME.

7 (a) SHORT TITLE, PURPOSES, AND AUTHORITY TO

8 MAKE GRANTS.—Chapter 2 of subtitle C of title V of the

9 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 et seq.) is

10 amended by striking the chapter heading and all that fol11 lows through section 5123 and inserting the following:

12 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

13 AGAINST CRIME

14 ‘‘SEC. 5121. SHORT TITLE.

15 ‘‘This chapter may be cited as the ‘Community Part16 nerships Against Crime Act of 1994’.

17 ‘‘SEC. 5122. PURPOSES.

18 ‘‘The purposes of this chapter are to—

19 ‘‘(1) improve the quality of life for the vast ma20 jority of law-abiding public housing residents by re21 ducing the levels of fear, violence, and crime in their

22 communities;

23 ‘‘(2) substantially expand and enhance the Fed24 eral Government’s commitment to eliminating crime
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1 in and around public housing and other federally as2 sisted low-income housing;

3 ‘‘(3) broaden the scope of the Public and Assisted

4 Housing Drug Elimination Act of 1990 to apply to

5 all types of crime, and not simply crime that is drug6 related;

7 ‘‘(4) encourage the involvement of a broad range

8 of community-based groups and residents of neighbor9 ing housing that is owned or assisted by the Secretary

10 in the development and implementation of anti-crime

11 plans;

12 ‘‘(5) reduce crime and disorder in and around

13 public housing through the expansion of community14 oriented policing activities and problem solving;

15 ‘‘(6) provide training, information services, and

16 other technical assistance to program participants;

17 and

18 ‘‘(7) establish a standardized assessment system

19 to evaluate need among public housing agencies and

20 to measure progress in reaching crime reduction

21 goals.

22 ‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

23 ‘‘The Secretary of Housing and Urban Development

24 may make grants in accordance with the provisions of this

25 chapter for use in eliminating crime in and around public
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1 housing and other federally assisted low-income housing

2 projects to (1) public housing agencies, and (2) private, for3 profit and nonprofit owners of federally assisted low-income

4 housing. In designing the program for grants under this

5 chapter, the Secretary shall consult with the Attorney Gen6 eral.’’.

7 (b) ELIGIBLE ACTIVITIES.—

8 (1) IN GENERAL.—Section 5124(a) of the Anti9 Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is

10 amended—

11 (A) in the matter preceding paragraph (1),

12 by inserting ‘‘and around’’ after ‘‘used in’’;

13 (B) in paragraph (3), by inserting before

14 the semicolon the following: ‘‘, including fencing,

15 lighting, locking, and surveillance systems’’;

16 (C) in paragraph (4), by striking subpara17 graph (A) and inserting the following new sub18 paragraph:

19 ‘‘(A) to investigate crime; and’’;

20 (D) in paragraph (6)—

21 (i) by striking ‘‘in and around public

22 or other federally assisted low-income hous23 ing projects’’; and

24 (ii) by striking ‘‘and’’ after the semi25 colon; and
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1 (E) by striking paragraph (7) and inserting

2 the following new paragraphs:

3 ‘‘(7) providing funding to nonprofit public hous4 ing resident management corporations and resident

5 councils to develop security and crime prevention pro6 grams involving site residents;

7 ‘‘(8) the employment or utilization of one or

8 more individuals, including law enforcement officers,

9 made available by contract or other cooperative ar10 rangement with State or local law enforcement agen11 cies, to engage in community- and problem-oriented

12 policing involving interaction with members of the

13 community in proactive crime control and prevention

14 activities;

15 ‘‘(9) programs and activities for or involving

16 youth, including training, education, recreation and

17 sports, career planning, and entrepreneurship and

18 employment activities and after school and cultural

19 programs; and

20 ‘‘(10) service programs for residents that address

21 the contributing factors of crime, including programs

22 for job training, education, drug and alcohol treat23 ment, and other appropriate social services.’’.
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1 (2) OTHER PHA-OWNED HOUSING.—Section

2 5124(b) of the Anti-Drug Abuse Act of 1988 (42

3 U.S.C. 11903(b)) is amended—

4 (A) in the matter preceding paragraph

5 (1)—

6 (i) by striking ‘‘drug-related crime in’’

7 and inserting ‘‘crime in and around’’; and

8 (ii) by striking ‘‘paragraphs (1)

9 through (7)’’ and inserting ‘‘paragraphs (1)

10 through (10)’’; and

11 (B) in paragraph (2), by striking ‘‘drug-re12 lated’’ and inserting ‘‘criminal’’.

13 (c) GRANT PROCEDURES.—Section 5125 of the Anti14 Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended to

15 read as follows:

16 ‘‘SEC. 5125. GRANT PROCEDURES.

17 ‘‘(a) PHA’S WITH 250 OR MORE UNITS.—

18 ‘‘(1) GRANTS.—In each fiscal year, the Secretary

19 shall make a grant under this chapter from any

20 amounts available under section 5131(b)(1) for the

21 fiscal year to each of the following public housing

22 agencies:

23 ‘‘(A) NEW APPLICANTS.—Each public hous24 ing agency that owns or operates 250 or more

25 public housing dwelling units and has—
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1 ‘‘(i) submitted an application to the

2 Secretary for a grant for such fiscal year,

3 which includes a 5-year crime deterrence

4 and reduction plan under paragraph (2);

5 and

6 ‘‘(ii) had such application and plan

7 approved by the Secretary.

8 ‘‘(B) RENEWALS.—Each public housing

9 agency that owns or operates 250 or more public

10 housing dwelling units and for which—

11 ‘‘(i) a grant was made under this

12 chapter for the preceding Federal fiscal

13 year;

14 ‘‘(ii) the term of the 5-year crime de15 terrence and reduction plan applicable to

16 such grant includes the fiscal year for which

17 the grant under this subsection is to be

18 made; and

19 ‘‘(iii) the Secretary has determined,

20 pursuant to a performance review under

21 paragraph (4), that during the preceding

22 fiscal year the agency has substantially ful23 filled the requirements under subparagraphs

24 (A) and (B) of paragraph (4).
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1 ‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC2 TION PLAN.—Each application for a grant under this

3 subsection shall contain a 5-year crime deterrence

4 and reduction plan. The plan shall describe, for the

5 public housing agency submitting the plan—

6 ‘‘(A) the nature of the crime problem in

7 public housing owned or operated by the public

8 housing agency;

9 ‘‘(B) the building or buildings of the public

10 housing agency affected by the crime problem;

11 ‘‘(C) the impact of the crime problem on

12 residents of such building or buildings; and

13 ‘‘(D) the actions to be taken during the term

14 of the plan to reduce and deter such crime, which

15 shall include actions involving residents, law en16 forcement, and service providers.

17 The term of a plan shall be the period consisting of

18 5 consecutive fiscal years, which begins with the first

19 fiscal year for which funding under this chapter is

20 provided to carry out the plan.

21 ‘‘(3) AMOUNT.—In any fiscal year, the amount

22 of the grant for a public housing agency receiving a

23 grant pursuant to paragraph (1) shall be the amount

24 that bears the same ratio to the total amount made

25 available under section 5131(b)(1) as the total num-
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1 ber of public dwelling units owned or operated by

2 such agency bears to the total number of dwelling

3 units owned or operated by all public housing agen4 cies that own or operate 250 or more public housing

5 dwelling units that are approved for such fiscal year.

6 ‘‘(4) PERFORMANCE REVIEW.—For each fiscal

7 year, the Secretary shall conduct a performance re8 view of the activities carried out by each public hous9 ing agency receiving a grant pursuant to this sub10 section to determine whether the agency—

11 ‘‘(A) has carried out such activities in a

12 timely manner and in accordance with its 5-

13 year crime deterrence and reduction plan; and

14 ‘‘(B) has a continuing capacity to carry out

15 such plan in a timely manner.

16 ‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec17 retary shall establish such deadlines and requirements

18 for submission of applications under this subsection

19 as the Secretary determines appropriate for timely

20 and orderly allocation and disbursement of amounts

21 made available for grants under this subsection.

22 ‘‘(6) REVIEW AND DETERMINATION.—The Sec23 retary shall review each application submitted under

24 this subsection upon submission and shall approve the

25 application unless the application and the 5-year
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1 crime deterrence and reduction plan are inconsistent

2 with the purposes of this chapter or any requirements

3 established by the Secretary or the information in the

4 application or plan is not substantially complete.

5 Upon approving or determining not to approve an

6 application and plan submitted under this subsection,

7 the Secretary shall notify the public housing agency

8 submitting the application and plan of such approval

9 or disapproval.

10 ‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the

11 Secretary notifies an agency that the application and

12 plan of the agency is not approved, not later than the

13 expiration of the 15-day period beginning upon such

14 notice of disapproval, the Secretary shall also notify

15 the agency, in writing, of the reasons for the dis16 approval, the actions that the agency could take to

17 comply with the criteria for approval, and the dead18 lines for such actions.

19 ‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—If

20 the Secretary fails to notify an agency of approval or

21 disapproval of an application and plan submitted

22 under this subsection before the expiration of the 60-

23 day period beginning upon the submission of the plan

24 or fails to provide notice under paragraph (7) within

25 the 15-day period under such paragraph to an agency
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1 whose application has been disapproved, the applica2 tion and plan shall be considered to have been ap3 proved for purposes of this section.

4 ‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND OWN5 ERS OF FEDERALLY ASSISTED LOW-INCOME HOUSING.—

6 ‘‘(1) APPLICATIONS AND PLANS.—To be eligible

7 to receive a grant under this chapter, a public hous8 ing agency that owns or operates fewer than 250 pub9 lic housing dwelling units or an owner of federally as10 sisted low-income housing shall submit an application

11 to the Secretary at such time, in such manner, and

12 accompanied by such additional information as the

13 Secretary may require. The application shall include

14 a plan for addressing the problem of crime in and

15 around the housing for which the application is sub16 mitted, describing in detail activities to be conducted

17 during the fiscal year for which the grant is re18 quested.

19 ‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN 250

20 UNITS.—In each fiscal year the Secretary may, to the

21 extent amounts are available under section

22 5131(b)(2), make grants under this chapter to public

23 housing agencies that own or operate fewer than 250

24 public housing dwelling units and have submitted ap25 plications under paragraph (1) that the Secretary has
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1 approved pursuant to the criteria under paragraph

2 (4).

3 ‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW-IN4 COME HOUSING.—In each fiscal year the Secretary

5 may, to the extent amounts are available under sec6 tion 5131(b)(3), make grants under this chapter to

7 owners of federally assisted low-income housing that

8 have submitted applications under paragraph (1)

9 that the Secretary has approved pursuant to the cri10 teria under paragraphs (4) and (5).

11 ‘‘(4) CRITERIA FOR APPROVAL OF APPLICA12 TIONS.—The Secretary shall determine whether to ap13 prove each application under this subsection on the

14 basis of—

15 ‘‘(A) the extent of the crime problem in and

16 around the housing for which the application is

17 made;

18 ‘‘(B) the quality of the plan to address the

19 crime problem in the housing for which the ap20 plication is made;

21 ‘‘(C) the capability of the applicant to carry

22 out the plan; and

23 ‘‘(D) the extent to which the tenants of the

24 housing, the local government, local community25 based nonprofit organizations, local tenant orga-
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1 nizations representing residents of neighboring

2 projects that are owned or assisted by the Sec3 retary, and the local community support and

4 participate in the design and implementation of

5 the activities proposed to be funded under the

6 application.

7 In each fiscal year, the Secretary may give preference

8 to applications under this subsection for housing

9 made by applicants who received a grant for such

10 housing for the preceding fiscal year under this sub11 section or under the provisions of this chapter as in

12 effect immediately before the date of the enactment of

13 the Housing and Community Development Act of

14 1994.

15 ‘‘(5) ADDITIONAL CRITERIA FOR FEDERALLY AS16 SISTED LOW-INCOME HOUSING.—In addition to the

17 selection criteria under paragraph (4), the Secretary

18 may establish other criteria for evaluating applica19 tions submitted by owners of federally assisted low-in20 come housing, except that such additional criteria

21 shall be designed only to reflect—

22 ‘‘(A) relevant differences between the finan23 cial resources and other characteristics of public

24 housing authorities and owners of federally as25 sisted low-income housing; or
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1 ‘‘(B) relevant differences between the prob2 lem of crime in public housing administered by

3 such public housing agencies and the problem of

4 crime in federally assisted low-income housing.’’.

5 (d) DEFINITIONS.—Section 5126 of the Anti-Drug

6 Abuse Act of 1988 (42 U.S.C. 11905) is amended—

7 (1) by striking paragraphs (1) and (2);

8 (2) in paragraph (4), by striking ‘‘section’’ be9 fore ‘‘221(d)(4)’’;

10 (3) by redesignating paragraphs (3) and (4) (as

11 so amended) as paragraphs (1) and (2), respectively;

12 and

13 (4) by adding at the end the following new para14 graph:

15 ‘‘(3) PUBLIC HOUSING AGENCY.—The term ‘pub16 lic housing agency’ has the meaning given the term

17 in section 3(b) of the United States Housing Act of

18 1937.’’.

19 (e) IMPLEMENTATION.—Section 5127 of the Anti-Drug

20 Abuse Act of 1988 (42 U.S.C. 11906) is amended by striking

21 ‘‘Cranston-Gonzalez National Affordable Housing Act’’ and

22 inserting ‘‘Housing and Community Development Act of

23 1994’’.

24 (f) REPORTS.—Section 5128 of the Anti-Drug Abuse

25 Act of 1988 (42 U.S.C. 11907) is amended—
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1 (1) by striking ‘‘The Secretary’’ and inserting

2 the following:

3 ‘‘(a) REPORTS BY GRANTEES.—The Secretary’’;

4 (2) by striking ‘‘drug-related crime in’’ and in5 serting ‘‘crime in and around’’;

6 (3) by striking ‘‘described in section 5125(a)’’

7 and inserting ‘‘for the grantee submitted under sub8 section (a) or (b) of section 5125, as applicable’’; and

9 (4) by adding at the end the following new sub10 section:

11 ‘‘(b) REPORTS BY SECRETARY.—For each fiscal year

12 in which the Secretary makes grants under this chapter,

13 the Secretary shall submit a report to the Congress describ14 ing the progress achieved in crime deterrence and reduction

15 in the public housing and federally assisted low-income

16 housing for which such grant assistance has been provided.

17 The report shall include any recommendations of the Sec18 retary for changes in the program of assistance under this

19 chapter.’’.

20 (g) TECHNICAL ASSISTANCE AND FUNDING.—Chapter

21 2 of subtitle C of title V of the Anti-Drug Abuse Act of 1988

22 is amended by striking section 5130 (42 U.S.C. 11909) and

23 inserting the following new sections:
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1 ‘‘SEC. 5130. TECHNICAL ASSISTANCE.

2 ‘‘(a) IN GENERAL.—To the extent amounts are made

3 available under section 5131(c), the Secretary may provide

4 training, information services, and other technical assist5 ance to public housing agencies and other entities with re6 spect to their participation in the program under this chap7 ter, which shall include activities under subsection (b) of

8 this section. Such technical assistance may be provided di9 rectly by the Secretary or indirectly pursuant to grants,

10 contracts, or cooperative agreements.

11 ‘‘(b) USE.—The Secretary may use amounts available

12 for use under this section—

13 ‘‘(1) to establish and operate the clearinghouse

14 on drug abuse in public housing and the regional

15 training program on drug abuse in public housing

16 under sections 5143 and 5144 of this Act;

17 ‘‘(2) to obtain assistance in establishing and

18 managing assessment and evaluation criteria and

19 specifications and to obtain the opinions of experts in

20 relevant fields; and

21 ‘‘(3) upon the request of a public housing agency,

22 to assist the agency in evaluating the extent of the

23 crime problem in any public housing administered by

24 the agency and preparing a 5-year crime deterrence

25 and reduction plan under section 5125(a) or an ap26 plication and plan under section 5125(b)(1), which
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1 assistance may include providing personnel and fund2 ing to identify and secure local resources to assist in

3 deterring and reducing crime.

4 ‘‘(c) PRIORITY.—In selecting entities to receive tech5 nical assistance under this section, the Secretary shall give

6 priority to public housing agencies that have submitted ap7 plications and plans under section 5125 that the Secretary

8 has determined do not meet the requirements for approval

9 for assistance under this chapter.

10 ‘‘SEC. 5131. FUNDING.

11 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There is

12 authorized to be appropriated to carry out this chapter

13 $300,000,000 for fiscal year 1995 and $325,000,000 for fis14 cal year 1996. Any amount appropriated under this sub15 section shall remain available until expended.

16 ‘‘(b) ALLOCATION.—Of any amounts appropriated to

17 carry out this chapter in any fiscal year that remain after

18 reserving amounts for use under subsection (c)—

19 ‘‘(1) 85 percent shall be available only for assist20 ance pursuant to section 5125(a) to public housing

21 agencies that own or operate 250 or more public hous22 ing dwelling units;

23 ‘‘(2) 10 percent shall be available only for assist24 ance pursuant to section 5125(b)(2) to public housing
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1 agencies that own or operate fewer than 250 public

2 housing dwelling units; and

3 ‘‘(3) 5 percent shall be available only for assist4 ance to federally assisted low-income housing pursu5 ant to section 5125(b)(3).

6 ‘‘(c) SET-ASIDE FOR TECHNICAL ASSISTANCE.—Of

7 any amount made available in fiscal years 1994 and 1995

8 to carry out this chapter, the Secretary shall use not more

9 than $10,000,000 in each such fiscal year to provide tech10 nical assistance under section 5130.’’.

11 (h) CONFORMING AMENDMENTS.—The table of contents

12 in section 5001 of the Anti-Drug Abuse Act of 1988 (Public

13 Law 100–690; 102 Stat. 4295) is amended—

14 (1) by striking the item relating to the heading

15 for chapter 2 of subtitle C and inserting the following:

‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;

16 (2) by striking the item relating to section 5122

17 and inserting the following new item:

‘‘Sec. 5122. Purposes.’’;

18 (3) by striking the item relating to section 5125

19 and inserting the following new item:

‘‘Sec. 5125. Grant procedures.’’;

20 and

21 (4) by striking the item relating to section 5130

22 and inserting the following new items:

‘‘Sec. 5130. Technical Assistance.

‘‘Sec. 5131. Funding.’’.
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1 SEC. 182. LOW-INCOME HOUSING PRESERVATION.

2 (a) ASSISTANCE AND INCENTIVES.—Section 234 of the

3 Housing and Community Development Act of 1987 (12

4 U.S.C. 4124) is amended to read as follows:

5 ‘‘SEC. 234. AUTHORIZATION OF APPROPRIATIONS.

6 ‘‘(a) IN GENERAL.—There are authorized to be appro7 priated for assistance and incentives authorized under this

8 subtitle $400,000,000 for fiscal year 1995 and $450,000,000

9 for fiscal year 1996.

10 ‘‘(b) GRANTS.—Subject to approval in appropriation

11 Acts, not more than $40,000,000 of the amounts made

12 available under subsection (a) for fiscal year 1995, and not

13 more than $40,000,000 of the amounts made available

14 under subsection (a) for fiscal year 1996, shall be available

15 for grants under section 221(d)(2).’’.

16 (b) TECHNICAL ASSISTANCE AND CAPACITY BUILD17 ING.—The first sentence of section 257 of the Housing and

18 Community Development Act of 1987 (12 U.S.C. 4147) is

19 amended to read as follows: ‘‘The Secretary shall use not

20 more than $20,000,000 of the amounts made available

21 under section 234(a) for fiscal year 1995, and not more

22 than $20,000,000 of the amounts made available under sec23 tion 234(a) for fiscal year 1996, to carry out this subtitle.’’.

24 (c) REPEAL OF RENT LIMITATIONS.—The National

25 Housing Act is amended—
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1 (1) in section 221 (12 U.S.C. 1715l), by striking

2 subsection (l).

3 (2) in section 236(f) (12 U.S.C. 1715z–1(f)), by

4 striking paragraph (6).

5 (d) EQUITY LOANS.—Section 241(f)(2)(B)(ii) of the

6 National Housing Act (12 U.S.C. 1715z–6(f)(2)(B)(ii)) is

7 amended by inserting ‘‘(excluding the amount of rehabilita8 tion costs required by the plan of action and related

9 charges)’’ after ‘‘loan amount’’.

10 (e) TREATMENT AS ELIGIBLE HOUSING.—Notwith11 standing section 229(1)(B) of the Housing and Community

12 Development Act of 1987, the Northwest Towers project, lo13 cated at 1170 West Erie, in Chicago, Illinois, shall be con14 sidered eligible low-income housing for purposes of title II

15 of such Act, except that—

16 (1) the Secretary of Housing and Urban Devel17 opment may approve a plan of action under such

18 title for the project only if the plan of action (A) pro19 vides for transfer of the ownership of the project (i)

20 in accordance with section 226 of such title to a resi21 dent council of the project, or (ii) in accordance with

22 section 220 of such title to a community-based non23 profit organization approved by the residents of the

24 project, and (B) otherwise complies with the require25 ments of such title; and
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1 (2) the Secretary of Housing and Urban Devel2 opment shall reduce the aggregate amount of any in3 centives otherwise to be provided under such title for

4 the project by the amount of any outstanding indebt5 edness on the loan for the project under section 201

6 of the Housing and Community Development Amend7 ments of 1978.

8 SEC. 183. FLEXIBLE SUBSIDY PROGRAM.

9 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

10 201(j)(5) of the Housing and Community Development

11 Amendments of 1978 (12 U.S.C. 1715z–1a(j)(5)) is amend12 ed to read as follows:

13 ‘‘(5) There are authorized to be appropriated for assist14 ance under the flexible subsidy fund not to exceed

15 $50,000,000 for fiscal year 1995 and $55,000,000 for fiscal

16 year 1996.’’.

17 (b) ALLOCATION.—Section 201(n)(2)(B)(ii) of the

18 Housing and Community Development Amendments of

19 1978 (12 U.S.C. 1715z–1a(n)(2)(B)(ii)) is amended by in20 serting ‘‘and federally assisted’’ before ‘‘mortgages’’.

21 (c) USE OF SECTION 236 RENTAL ASSISTANCE FUND

22 AMOUNTS.—Section 236(f)(3) of the National Housing Act

23 (12 U.S.C. 1715z–1(f)(3)) is amended by striking ‘‘Septem24 ber 30, 1994’’ and inserting ‘‘September 30, 1996’’.
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1 SEC. 184. YOUTHBUILD PROGRAM.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

3 402 of the Cranston-Gonzalez National Affordable Housing

4 Act (42 U.S.C. 12870), as amended by the preceding provi5 sions of this title, is amended by inserting after subsection

6 (a) the following new subsection:

7 ‘‘(b) YOUTHBUILD PROGRAM.—There are authorized to

8 be appropriated for activities under subtitle D $50,000,000

9 for fiscal year 1995 and $50,000,000 for fiscal year 1996.

10 Any amounts appropriated pursuant to this subsection

11 shall remain available until expended.’’.

12 (b) ELIGIBLE ACTIVITIES.—Section 454(b) of the

13 Cranston-Gonzalez National Affordable Housing Act (42

14 U.S.C. 12899c(b)) is amended—

15 (1) in paragraph (2), by striking ‘‘Acquisition’’

16 and all that follows through ‘‘facilities’’ and inserting

17 ‘‘Acquisition, rehabilitation, or acquisition and reha18 bilitation of housing and related facilities, or con19 struction of new housing and related facilities (in20 cluding community facilities designed to serve the

21 needs of low- and very low-income families),’’;

22 (2) by striking paragraph (6); and

23 (3) by redesignating paragraphs (7) and (8) as

24 paragraphs (6) and (7), respectively.

25 (c) PRIORITY FOR APPLICANTS SUPPLEMENTING

26 GRANT AMOUNTS.—Section 454(e) of the Cranston-Gon-
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1 zalez National Affordable Housing Act (42 U.S.C.

2 12899c(e)) is amended to read as follows:

3 ‘‘(e) PRIORITY FOR APPLICANTS WHO OBTAIN PRO4 GRAM FUNDS FROM OTHER SOURCES.—The Secretary

5 shall give priority in the award of grants under this section

6 to applicants to the extent that they have obtained amounts

7 or in-kind contributions, or commitments to provide such

8 amounts or contributions, from Federal, State, local, or pri9 vate sources other than assistance under this subtitle in an

10 amount constituting not less than 10 percent of the total

11 budget of the applicant for the Youthbuild program, that

12 will be used for carrying out any aspect of the Youthbuild

13 program of the applicant.’’.

14 (d) RESIDENTIAL RENTAL HOUSING REQUIRE15 MENTS.—Section 455(a) of the Cranston-Gonzalez National

16 Affordable Housing Act (42 U.S.C. 12899d(a)) is amend17 ed—

18 (1) in the matter preceding paragraph (1), by

19 inserting after ‘‘subtitle’’ the following: ‘‘for costs such

20 as construction, rehabilitation, and acquisition’’; and

21 (2) in paragraph (1), by striking subparagraph

22 (A) and inserting the following new subparagraph:

23 ‘‘(A) at least 80 percent of the units shall

24 be occupied, or available for occupancy, by indi25 viduals and families with incomes that do not
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1 exceed 50 percent of the area median income, ad2 justed for family size; and’’.

3 (e) RESERVATION OF FUNDS.—Section 458(d) of the

4 Cranston-Gonzalez National Affordable Housing Act (42

5 U.S.C. 12899g(d)) is amended by inserting before the period

6 at the end the following: ‘‘and not more than 1 percent of

7 such available amounts to implement, pursuant to sub8 section (a) of this section, a management information sys9 tem to gather and analyze information necessary to assess

10 the quality and effects of the program under this subtitle

11 and to monitor Youthbuild programs funded under this sub12 title’’.

13 (f) PROGRAM NAME.—The heading for subtitle D of

14 title IV of the Cranston-Gonzalez National Affordable Hous15 ing Act (42 U.S.C. 12899 et seq.) is amended to read as

16 follows:

17 ‘‘Subtitle D—Youthbuild’’.

18 SEC. 185. DISPOSITION OF HUD-OWNED MULTIFAMILY

19 HOUSING PROPERTIES.

20 Section 203(g) of the Housing and Community Devel21 opment Amendments of 1978 (12 U.S.C. 1701z–11(g)) is

22 amended—

23 (1) in paragraph (2), by striking ‘‘and’’ at the

24 end;
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1 (2) in paragraph (3), by striking the period at

2 the end and inserting ‘‘; and’’;

3 (3) by redesignating paragraphs (2) and (3) (as

4 so amended) as paragraphs (3) and (4), respectively;

5 and

6 (4) by inserting after paragraph (1) the follow7 ing new paragraph:

8 ‘‘(2) upon the conclusion of the first year of such

9 2-year period, the Secretary shall examine the income

10 and rent of the family and of other very low-income

11 families who are preexisting tenants of the project

12 and the rents charged for units in the project and for

13 similar units in the market area in which the project

14 is located, to determine whether upon the expiration

15 of such 2-year period the rent charged for the unit oc16 cupied by the family and for similar units in the

17 same market area will be significantly more than the

18 amount charged for the unit occupied by the family

19 during such 2-year period;’’; and

20 (5) by adding at the end the following new para21 graph:

22 ‘‘(5) if the Secretary determines pursuant to

23 paragraph (2) that, upon the expiration of the 2-year

24 period, the family will not be able to rent a unit in

25 the project or a similar unit in the market area in
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1 which the project is located without paying in rent

2 significantly more than the amount charged for the

3 unit occupied by the family during such 2-year pe4 riod, the Secretary shall, to the extent budget author5 ity is available, provide tenant-based assistance on

6 behalf of the family under a contract under section 8

7 of the United States Housing Act of 1937 having a

8 5-year term.’’.

9 SEC. 186. GUIDELINES FOR SCREENING, ADMISSION, AND

10 EVICTIONS IN PUBLIC AND ASSISTED HOUS11 ING.

12 Not later than December 31, 1994, the Secretary of

13 Housing and Urban Development shall issue guidelines for

14 owners and managers of public and assisted housing with

15 respect to screening applicants for occupancy in such hous16 ing, admissions to such housing, and evictions of residents

17 of such housing who are users or former users of illegal

18 drugs or who violate lease provisions because of alcohol use.

19 The Secretary shall issue such guidelines based on the report

20 to the Congress issued by the Public and Assisted Housing

21 Occupancy Task Force on April 7, 1994, pursuant to sec22 tion 643(a)(7) of the Housing and Community Development

23 Act of 1992.
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1 SEC. 187. METROPOLITAN AREA-WIDE STRATEGY DEM2 ONSTRATION.

3 (a) IN GENERAL.—The Secretary of Housing and

4 Urban Development (in this section referred to as the ‘‘Sec5 retary’’) shall carry out, through consortia of units of gen6 eral local government, a demonstration program to make

7 assisted housing available in 3 metropolitan areas on a

8 metropolitan, area-wide basis.

9 (b) PURPOSE.—The demonstration program under

10 this section shall be designed to determine the most effective

11 manner to—

12 (1) affirmatively further fair housing and ad13 dress the problem of racial segregation in metropoli14 tan areas;

15 (2) achieve the goal of overcoming spatial sepa16 ration and segregation of families by race, which

17 shall include testing the effect of filling vacancies in

18 assisted housing by use of a consolidated waiting list;

19 (3) enlist cooperation of units of general local

20 government, public housing agencies, and private

21 owners of assisted housing in achieving such goals;

22 (4) make public housing facilitate social and eco23 nomic mobility;

24 (5) eliminate housing discrimination; and

25 (6) accomplish related objectives determined by

26 the Secretary.
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1 (c) ELIGIBILITY OF CONSORTIA.—The Secretary shall

2 select the consortia of units of general local government to

3 participate in the demonstration program on a competitive

4 basis and make a grant to each consortia selected. The Sec5 retary may select only consortia that demonstrate to the

6 Secretary, as the Secretary shall require, that a sufficient

7 number of units of general local government, public housing

8 agencies, and private owners of assisted housing are com9 mitted to participate in the demonstration to make the dem10 onstration feasible, which shall include commitment to com11 ply with alternative program requirements specified by the

12 Secretary.

13 (d) DURATION.—The demonstration program shall be

14 carried out for a period of 3 years with respect to each site

15 selected.

16 (e) WAIVERS.—The Secretary may waive, or specify

17 alternative requirements for, any provision of any statute

18 or regulation that the Secretary administers if the Sec19 retary finds that the waiver or alternative requirement (1)

20 is necessary to facilitate the demonstration program, and

21 (2) would not be inconsistent with the overall purpose of

22 the statute or regulation affected. In no event may the Sec23 retary waive, or specify alternative requirements for, statu24 tory requirements related to nondiscrimination, fair hous25 ing, labor standards, or the environment, except that the
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1 Secretary may waive affirmative marketing requirements

2 for participants in the demonstration program.

3 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

4 authorized to be appropriated for the costs related to re5 gional planning, housing counseling, development of a

6 model consolidated waiting list, and administration under

7 the demonstration established by this section, such sums as

8 may be necessary for each of fiscal years 1995 and 1996.

9 TITLE II—HOME INVESTMENT

10 PARTNERSHIPS

11 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

12 (a) IN GENERAL.—Section 205 of the Cranston-Gon13 zalez National Affordable Housing Act (42 U.S.C. 12724)

14 is amended to read as follows:

15 ‘‘SEC. 205. AUTHORIZATION.

16 ‘‘There are authorized to be appropriated to carry out

17 this title $1,775,000,000 for fiscal year 1995, and

18 $2,000,000,000 for fiscal year 1996, of which—

19 ‘‘(1) not more than $25,000,000 for fiscal year

20 1995, and $25,000,000 for fiscal year 1996, shall be

21 for community housing partnership activities author22 ized under section 233; and

23 ‘‘(2) not more than $22,000,000 for fiscal year

24 1995, and $22,000,000 for fiscal year 1996, shall be
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1 for activities in support of State and local housing

2 strategies authorized under subtitle C.’’.

3 (b) NOTICE OF FUNDING AVAILABILITY.—For each of

4 fiscal years 1995 and 1996, the Secretary shall cause to be

5 published in the Federal Register notice of the availability

6 of any amounts made available under section 205(1) of the

7 Cranston-Gonzalez National Affordable Housing Act (as

8 amended by subsection (a)) that are available for commu9 nity housing partnership activities authorized under sec10 tion 233. Each such notice shall be published not later than

11 the expiration of the 90-day period beginning on the date

12 that amounts are appropriated for each of such fiscal years

13 to carry out the program under title II of the Cranston14 Gonzalez National Affordable Housing Act.

15 SEC. 202. ELIGIBLE USES OF INVESTMENT.

16 Section 212(a)(1) of the Cranston-Gonzalez National

17 Affordable Housing Act (42 U.S.C. 12742(a)(1)) is amended

18 by striking ‘‘financing costs’’ and inserting ‘‘costs of financ19 ing (including credit enhancements, loan guarantees, and

20 debt service reserves)’’.

21 SEC. 203. QUALIFICATION AS AFFORDABLE RENTAL HOUS22 ING.

23 Section 215(a) of the Cranston-Gonzalez National Af24 fordable Housing Act (42 U.S.C. 12742(a)) is amended—
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1 (1) in paragraph (1)(A), by striking ‘‘bears rents

2 not greater than’’ and inserting ‘‘is occupied by ten3 ants who pay as rent’’;

4 (2) in paragraph (3), by inserting after the pe5 riod at the end of the first sentence the following new

6 sentence: ‘‘A tenant occupying a rental unit assisted

7 with amounts provided under this title shall be con8 sidered to be a very low-income family until the

9 household’s income increases to more than 140 percent

10 of the applicable income limitation under paragraph

11 (1)(B).’’; and

12 (3) by adding at the end the following new para13 graph:

14 ‘‘(6) RENTAL SUBSIDIES.—Notwithstanding

15 paragraph (1), housing shall not be considered to fail

16 to qualify as affordable housing under this title be17 cause it includes units for which—

18 ‘‘(A) payments are made under section 8 of

19 the United States Housing Act of 1937 or any

20 comparable rental assistance program; and

21 ‘‘(B) because of increases in the income of

22 tenants of the housing, the rent paid by the ten23 ants under the assistance program with respect

24 to such unit exceeds 30 percent of the adjusted
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1 income of a family whose income equals 65 per2 cent of the median income for the area.’’.

3 SEC. 204. REPAYMENT OF INVESTMENT.

4 Section 219 of the Cranston-Gonzalez National Afford5 able Housing Act (42 U.S.C. 12749) is amended by adding

6 at the end the following new subsection:

7 ‘‘(d) REPAYMENT OF MATCHING AMOUNTS.—Amounts

8 provided by a participating jurisdiction pursuant to sec9 tion 220 for housing not assisted under this title shall be

10 recognized for purposes of section 220(a), notwithstanding

11 that such amounts are not repaid to the jurisdiction’s

12 HOME Investment Trust Fund, if such amounts are drawn

13 from an affordable housing program operated by the juris14 diction, repaid to the program, and available for use only

15 for the program or for providing housing that qualifies as

16 affordable housing.’’.

17 SEC. 205. MATCHING REQUIREMENTS.

18 Section 220 of the Cranston-Gonzalez National Afford19 able Housing Act (42 U.S.C. 12750) is amended—

20 (1) in the first sentence of subsection (a), by in21 serting ‘‘the participating jurisdiction certifies’’ before

22 ‘‘qualifies’’; and

23 (2) in subsection (b)(1)—

24 (A) in subparagraph (A), by striking ‘‘or’’;
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1 (B) in subparagraph (B), by striking the

2 period at the end and inserting ‘‘; or’’; and

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

4 subparagraph:

5 ‘‘(C) is made with respect to housing that is

6 substantially equivalent to housing that qualifies

7 as affordable housing under section 215.’’.

8 SEC. 206. SUPPORT FOR STATE AND LOCAL HOUSING

9 STRATEGIES.

10 Subtitle C of title II of the Cranston-Gonzalez National

11 Affordable Housing Act (42 U.S.C. 12781 et seq.) is amend12 ed by adding at the end the following new section:

13 ‘‘SEC. 246. STRATEGIC PLANNING AND URBAN DESIGN.

14 ‘‘The Secretary may use amounts available under this

15 subtitle to provide grants to States, units of general local

16 government, and metropolitan, non-metropolitan, and re17 gional planning agencies, for the following activities:

18 ‘‘(1) Urban design and the development of public

19 amenities in low-income neighborhoods that serve as

20 a catalyst for the renewal of the neighborhood.

21 ‘‘(2) Development and implementation of com22 prehensive plans that focus on local and metropolitan

23 strategies which create sustainable community devel24 opment at the neighborhood, city, and metropolitan

25 level.
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1 ‘‘(3) Expanding economic opportunities for low2 and moderate-income families through areawide plan3 ning approaches that provide educational and em4 ployment opportunities for such persons.

5 ‘‘(4) Coordinated efforts that stimulate fair hous6 ing, further the deconcentration of the poor and mi7 norities, reduce the isolation of income groups within

8 communities, remove barriers to affordable housing

9 development, and expand housing opportunities for

10 low- and moderate-income families.

11 ‘‘(5) The conservation of important historic, vis12 ual, and cultural features.

13 ‘‘(6) The development and implementation of

14 comprehensive approaches that integrate poorer,

15 inner-city neighborhoods into the greater metropolitan

16 region.

17 ‘‘(7) Any other activities the Secretary deter18 mines will further the purposes of this section.’’.

19 SEC. 207. LABOR REQUIREMENTS.

20 Section 286(b) of the Cranston-Gonzalez National Af21 fordable Housing Act (42 U.S.C. 12836(b)) is amended by

22 adding at the end the following new sentence: ‘‘Subsection

23 (a) shall not apply in the case of housing for which a site

24 is acquired, but which is not constructed, using funds made

25 available under this subtitle.’’.
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1 TITLE III—SUPPORTIVE

2 HOUSING PROGRAMS

3 SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE

4 ELDERLY AND FOR PERSONS WITH DISABIL5 ITIES.

6 Section 601 of the Housing and Community Develop7 ment Act of 1992 (Public Law 102–550; 106 Stat. 3802)

8 is amended by striking subsection (a) and inserting the fol9 lowing new subsection:

10 ‘‘(a) AGGREGATE FUNDING.—There are authorized to

11 be appropriated for the purpose of providing assistance in

12 accordance with section 202 of the Housing Act of 1959 and

13 section 811 of the Cranston-Gonzalez National Affordable

14 Housing Act, $1,948,000,000 for fiscal year 1995 and

15 $1,954,000,000 for fiscal year 1996.’’.

16 SEC. 302. SUPPORTIVE HOUSING FOR THE ELDERLY.

17 (a) ELDER COTTAGE HOUSING UNITS.—Section

18 202(b) of the Housing Act of 1959 (12 U.S.C. 1701q(b))

19 is amended by inserting after the second sentence the follow20 ing new sentence: ‘‘Such assistance may also be used to fi21 nance the acquisition and installation of elder cottage hous22 ing units that are small, freestanding, barrier-free, energy

23 efficient, removable and designed to be installed adjacent

24 to existing 1- to 4-family dwellings and are used as sup-
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1 portive housing for the elderly in accordance with this sec2 tion.’’.

3 (b) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

4 202(k)(3) of the Housing Act of 1959 (12 U.S.C.

5 1701q(k)(3)) is amended by striking the first sentence and

6 inserting the following new sentences: ‘‘The term ‘frail elder7 ly’ means an elderly person whose level of functional dis8 ability jeopardizes her or his ability to continue to live

9 independently. The Secretary shall, to the extent possible,

10 develop assessment measures of functional disability that

11 are appropriate for purposes of this section and will provide

12 for effective use of the program under this section with other

13 programs providing supportive services.’’.

14 (c) REPEAL OF DEMONSTRATION.—Section 806 of the

15 Cranston-Gonzalez National Affordable Housing Act (12

16 U.S.C. 1701q note) is hereby repealed.

17 SEC. 303. SUPPORTIVE HOUSING FOR PERSONS WITH DIS18 ABILITIES.

19 (a) PHA’S AS ELIGIBLE SPONSORS.—Section 811 of

20 the Cranston-Gonzalez National Affordable Housing Act (42

21 U.S.C. 8013) is amended—

22 (1) in the first sentence of subsection (f), by in23 serting ‘‘and public housing agencies’’ after ‘‘private

24 nonprofit organizations’’; and

25 (2) in subsection (k)—
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1 (A) in paragraph (5), by striking ‘‘private

2 nonprofit organization’’ and inserting ‘‘eligible

3 sponsor’’; and

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

5 paragraph:

6 ‘‘(10) The term ‘eligible sponsor’ means—

7 ‘‘(A) in the case of capital advances under

8 subsection (b)(2) and project rental assistance

9 under subsections (b)(2) and (3)—

10 ‘‘(i) a private nonprofit organization;

11 and

12 ‘‘(ii) a public housing agency, but only

13 in the case of a jurisdiction for which the

14 Secretary determines that, during the 3-

15 year period ending upon the date of the ap16 plication of the agency for assistance under

17 subsection (b)(2) or (3)—

18 ‘‘(I) no private nonprofit organi19 zation has submitted an application

20 under subsection (f) for assistance for a

21 project located in such area; and

22 ‘‘(II) no private nonprofit organi23 zation has had such an application ap24 proved for a project located in such

25 area; and
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1 ‘‘(B) in the case of tenant-based rental as2 sistance under subsection (b)(1)—

3 ‘‘(i) a private nonprofit organization;

4 and

5 ‘‘(ii) a public housing agency, but only

6 to the extent that such assistance is used for

7 providing assistance in accordance with an

8 allocation plan for the agency under section

9 7(f) of the United States Housing Act of

10 1937.’’.

11 (b) RENTAL ASSISTANCE FOR EXISTING BUILDINGS.—

12 Section 811 of the Cranston-Gonzalez National Affordable

13 Housing Act is amended—

14 (1) in subsection (d)(2), by adding at the end the

15 following new sentence: ‘‘The Secretary may enter

16 into contracts with private, nonprofit organizations

17 to provide project rental assistance for supportive

18 housing for persons with disabilities, regardless of

19 whether the housing is developed with capital ad20 vances under this section.’’;

21 (2) in subsection (e)(1), by inserting ‘‘with cap22 ital advances’’ after ‘‘assisted’’;

23 (3) by striking the first 2 sentences of subsection

24 (e)(2) and inserting the following new sentences: ‘‘The

25 initial term of a contract entered into under sub-
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1 section (d)(2) shall be 240 months for housing devel2 oped with a capital advance, and shall be not more

3 than 60 months for housing not developed with a cap4 ital advance. The Secretary shall, to the extent ap5 proved in appropriation Acts, extend any expiring

6 contracts for a term of not less than 60 months.’’;

7 (4) in subsection (g)(1), by inserting ‘‘(if appli8 cable)’’ after ‘‘develop’’;

9 (5) in subsections (g)(3) and (g)(5), by inserting

10 ‘‘design or’’ before ‘‘proposed’’ each place it appears;

11 (6) in subsection (j), by striking paragraph (3)

12 and inserting the following new paragraph:

13 ‘‘(3) SITE CONTROL.—

14 ‘‘(A) CAPITAL ADVANCES.—In the case of

15 housing to be assisted with capital advances

16 under this section, an applicant may obtain

17 ownership or control of a suitable site different

18 from the site specified in the initial application.

19 If an applicant fails to obtain ownership or con20 trol of the site within 1 year after notification

21 of an award for assistance, the assistance shall

22 be recaptured and reallocated.

23 ‘‘(B) PROJECT RENTAL ASSISTANCE.—In

24 the case of housing to be assisted only with

25 project rental assistance, the applicant shall have
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1 ownership or control of a suitable site at the

2 time of application. The Secretary may approve

3 a change in site at any time from the date the

4 application is submitted to the expiration date of

5 the rental assistance contract.’’;

6 (7) in subsection (j)(4), by striking ‘‘The’’ and

7 inserting the following: ‘‘In the case of housing as8 sisted with capital advances under this section, the’’;

9 (8) in the second sentence of subsection (k)(1), by

10 striking ‘‘the development of’’;

11 (9) in subsection (k)(5), by inserting before the

12 period at the end the following: ‘‘, or that receives

13 rental assistance under this section to operate a

14 project for supportive housing for persons with dis15 abilities’’; and

16 (10) in subsection (m)(3), by striking ‘‘(1)’’ and

17 inserting ‘‘(2)’’.

18 (c) AUTHORITY TO PROVIDE ASSISTANCE.—Section

19 811 of the Cranston-Gonzalez National Affordable Housing

20 Act is amended—

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

22 following new subsection:

23 ‘‘(b) GENERAL AUTHORITY.—The Secretary may pro24 vide assistance to eligible sponsors to expand the supply of
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1 supportive housing for persons with disabilities. Such as2 sistance shall be provided as—

3 ‘‘(1) tenant-based rental assistance on behalf of

4 eligible persons with disabilities, in accordance with

5 subsection (d)(4);

6 ‘‘(2) capital advances in accordance with sub7 section (d)(1), together with contracts for project rent8 al assistance in accordance with subsection (d)(2); or

9 ‘‘(3) contracts for project rental assistance in ac10 cordance with subsection (d)(2).’’;

11 (2) in subsection (d)(1), by adding at the end the

12 following new sentences: ‘‘Capital advances may be

13 used to finance the acquisition, acquisition and mod14 erate rehabilitation, construction, reconstruction, or

15 moderate or substantial rehabilitation of housing, in16 cluding the acquisition from the Resolution Trust

17 Corporation, to be used as supportive housing for per18 sons with disabilities and may include real property

19 acquisition, site improvement, conversion, demolition,

20 relocation, and other expenses that the Secretary de21 termines are necessary to expand the supply of sup22 portive housing for persons with disabilities. Such as23 sistance may also be used to finance the acquisition

24 and installation of cottage housing units that are

25 small, freestanding, barrier-free, energy efficient, re-
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1 movable and designed to be installed adjacent to exist2 ing 1- to 4-family dwellings and are used as support3 ive housing for the persons with disabilities in accord4 ance with this section.’’;

5 (3) in subsections (d)(3), (e)(1), and (f), by in6 serting ‘‘or (3)’’ after ‘‘subsection (b)(2)’’ each place

7 it appears; and

8 (4) by striking paragraph (4) of subsection (d)

9 and inserting the following new paragraph:

10 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

11 ‘‘(A) ADMINISTRATION.—Tenant-based rent12 al assistance that is provided under subsection

13 (b)(1) shall be administered under the same rules

14 governing rental assistance made available under

15 section 8 of the United States Housing Act of

16 1937.

17 ‘‘(B) PUBLIC HOUSING AGENCIES.—A pub18 lic housing agency may provide tenant-based

19 rental assistance under subsection (b)(1) only if

20 the public housing agency has submitted, and

21 had approved, an allocation plan under section

22 7(f) of the United States Housing Act of 1937

23 and any such assistance made available to a

24 public housing agency shall be provided by the

25 agency in accordance with such allocation plan.
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1 In determining the amount of assistance pro2 vided under subsection (b)(1) for a public hous3 ing agency, the Secretary shall consider the needs

4 of the agency as described in the allocation

5 plan.’’.

6 (d) TECHNICAL CHANGES.—Section 811(k)(6) of the

7 Cranston-Gonzalez National Affordable Housing Act is

8 amended by striking subparagraph (A) and inserting the

9 following new subparagraph:

10 ‘‘(A) that has received tax-exempt status

11 under section 501(c)(3) or (4) of the Internal

12 Revenue Code of 1986;’’.

13 SEC. 304. REVISED CONGREGATE SERVICES.

14 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

15 802(n)(1) of the Cranston-Gonzalez National Affordable

16 Housing Act (42 U.S.C. 8011(n)(1)) is amended by striking

17 the matter preceding subparagraph (A) and inserting the

18 following:

19 ‘‘(1) AUTHORIZATION AND USE.—There are au20 thorized to be appropriated to carry out this section

21 $25,000,000 for fiscal year 1995, and $26,000,000 for

22 fiscal year 1996, of which not more than—’’.

23 (b) MEAL FEES AND MATCHING AMOUNTS.—Section

24 802 of the Cranston-Gonzalez National Affordable Hous25 ing Act (42 U.S.C. 8011) is amended—
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1 (1) in subparagraph (A) of subsection (d)(7),

2 by striking ‘‘The fees for meals shall be in the fol3 lowing amounts:’’ and all that follows through the

4 end of the subparagraph; and

5 (2) in subsection (i)(1)—

6 (A) in subparagraph (A)(i), by striking

7 ‘‘50 percent’’ and inserting ‘‘25 percent’’;

8 (B) in subparagraph (A)(ii), by striking

9 ‘‘40 percent’’ and inserting ‘‘65 percent’’; and

10 (C) in subparagraph (C), by striking ‘‘10

11 percent’’ and inserting ‘‘25 percent’’.

12 (c) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

13 802(k)(8) of the Cranston-Gonzalez National Affordable

14 Housing Act is amended by striking the first sentence and

15 inserting the following new sentences: ‘‘The term ‘frail el16 derly’ means an elderly person whose level of functional

17 disability jeopardizes her or his ability to continue to live

18 independently. The Secretary shall, to the extent possible,

19 develop assessment measures of functional disability that

20 are appropriate for purposes of this section and will pro21 vide for effective use of the program under this section

22 with other programs providing supportive services.’’.
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1 SEC. 305. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER2 LY INDEPENDENCE.

3 (a) SECTION 8 ASSISTANCE.—The first sentence of sec4 tion 803(j) of the Cranston-Gonzalez National Affordable

5 Housing Act (42 U.S.C. 8012(j)) is amended to read as fol6 lows: ‘‘The budget authority available under section 5(c) of

7 the United States Housing Act of 1937 for assistance under

8 section 8 of such Act is authorized to be increased by

9 $25,000,000 on or after October 1, 1994, and by

10 $25,000,000 on or after October 1, 1995.’’.

11 (b) SUPPORTIVE SERVICES AUTHORIZATION.—The

12 first sentence of section 803(k) of the Cranston-Gonzalez Na13 tional Affordable Housing Act (42 U.S.C. 8012(k)) is

14 amended to read as follows: ‘‘There are authorized to be ap15 propriated for the Secretary to carry out the responsibilities

16 for supportive services under the demonstrations under this

17 section $7,000,000 to become available in fiscal year 1995,

18 and $7,000,000 to become available in fiscal year 1996.’’.

19 (c) SUPPORTIVE SERVICES CONTRIBUTIONS.—Section

20 803(c)(1) of the Cranston-Gonzalez National Affordable

21 Housing Act is amended—

22 (1) in subparagraph (A), by striking ‘‘40 per23 cent’’ and inserting ‘‘65 percent’’; and

24 (2) in subparagraph (B), by striking ‘‘50 per25 cent’’ and inserting ‘‘25 percent’’.
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1 (d) DEFINITION OF ‘‘FRAIL ELDERLY’’.—Section

2 803(g)(3) of the Cranston-Gonzalez National Affordable

3 Housing Act is amended by striking the first sentence and

4 inserting the following new sentences: ‘‘The term ‘frail elder5 ly person’ means an elderly person whose level of functional

6 disability jeopardizes her or his ability to continue to live

7 independently. The Secretary shall, to the extent possible,

8 develop assessment measures of functional disability that

9 are appropriate for purposes of this section and will provide

10 for effective use of the program under this section with other

11 programs providing supportive services.’’.

12 (e) AMENDMENT TO HEADING.—Section 803 of the

13 Cranston-Gonzalez National Affordable Housing Act (42

14 U.S.C. 8012) is amended by striking the section designation

15 and heading and inserting the following:

16 ‘‘SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER17 LY INDEPENDENCE.’’.

18 SEC. 306. HOUSING OPPORTUNITIES FOR PERSONS WITH

19 AIDS.

20 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

21 863 of the Cranston-Gonzalez National Affordable Housing

22 Act (42 U.S.C. 12912) is amended to read as follows:
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1 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to carry out

3 this subtitle $212,000,000 for fiscal year 1995 and

4 $225,000,000 for fiscal year 1996.’’.

5 (b) TECHNICAL ASSISTANCE.—Section 854(c)(3) of the

6 Cranston-Gonzalez National Affordable Housing Act (42

7 U.S.C. 12903(c)(3)) is amended—

8 (1) in subparagraph (A)—

9 (A) in clause (i), by striking ‘‘and’’ at the

10 end;

11 (B) in clause (ii), by striking the period at

12 the end and inserting ‘‘; and’’; and

13 (C) by adding at the end the following new

14 clause:

15 ‘‘(iii) nonprofit organizations that pro16 vide technical assistance on a national, re17 gional, or State-wide basis to nonprofit or18 ganizations carrying out eligible activities

19 under section 855 for eligible persons, to

20 provide such technical assistance, except

21 that not more than 2 percent of the amounts

22 available in any fiscal year for allocation

23 under this paragraph shall be used as pro24 vided in this clause.’’; and
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1 (2) in subparagraph (B), by striking ‘‘this para2 graph’’ and inserting ‘‘clauses (i) and (ii) of subpara3 graph (A)’’.

4 (c) COOPERATION.—

5 (1) IN GENERAL.—Section 856(c) of the Cran6 ston-Gonzalez National Affordable Housing Act (42

7 U.S.C. 12905(c)) is amended by striking ‘‘The recipi8 ent’’ and all that follows and inserting the following:

9 ‘‘The recipient shall establish and implement a proc10 ess for ensuring coordination and community input

11 in planning for and providing services assisted with

12 amounts provided under this subtitle. The planning

13 process shall include consultation and coordination

14 with the agencies of the relevant State and local gov15 ernments responsible for services for eligible persons

16 in the area served by the applicant and with other

17 public and private organizations and agencies provid18 ing services for such eligible persons (including indi19 viduals with human immunodeficiency virus disease),

20 including community-based and AIDS service organi21 zations, providers of social services, providers of men22 tal health care, providers of substance abuse treatment

23 services, nonprofit providers of housing for eligible

24 persons, and affected communities.’’.
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1 (2) APPLICATION.—Section 854(d) of the Cran2 ston-Gonzalez National Affordable Housing Act (42

3 U.S.C. 12903(d)) is amended—

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

5 the end;

6 (B) by redesignating paragraph (6) as

7 paragraph (7); and

8 (C) by inserting after paragraph (5) the fol9 lowing new paragraph:

10 ‘‘(6) a description of the activities to be under11 taken in fulfilling the requirements under section

12 856(c); and’’.

13 (d) ADMINISTRATIVE EXPENSES.—Section 856(g)(2)

14 of the Cranston-Gonzalez National Affordable Housing Act

15 (42 U.S.C. 12905(g)(2)) is amended—

16 (1) by striking ‘‘title’’ and inserting ‘‘subtitle’’;

17 and

18 (2) by striking ‘‘, including the costs of staff nec19 essary to carry out eligible activities’’.

20 SEC. 307. SERVICE COORDINATORS.

21 (a) PUBLIC HOUSING.—Section 9 of the United States

22 Housing Act of 1937 (42 U.S.C. 1437g) is amended in sub23 section (a)(1)(B)(ii)—

24 (1) in the 1st sentence, by striking ‘‘Annual’’

25 and all that follows through ‘‘such project,’’ and in-
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1 serting ‘‘To the extent amounts are made available

2 pursuant to section 5(c) for carrying out this clause,

3 the Secretary may increase the annual contributions

4 provided under this section to any public housing

5 agency for any project to provide’’; and

6 (2) by striking the last 2 sentences.

7 (b) OTHER FEDERALLY ASSISTED MULTIFAMILY

8 HOUSING.—Section 676(c) of the Housing and Community

9 Development Act of 1992 (42 U.S.C. 13632(c)) is amended

10 to read as follows:

11 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are

12 authorized to be appropriated for grants under this section

13 such sums as may be necessary for each of fiscal years 1995

14 and 1996.’’.

15 TITLE IV—MORTGAGE INSUR16 ANCE AND SECONDARY MORT17 GAGE MARKET

18 Subtitle A—Mortgage Insurance

19 and Loan Guarantee Programs

20 SEC. 401. LIMITATION ON INSURANCE AUTHORITY.

21 Section 531(b) of the National Housing Act (12 U.S.C.

22 1735f–9(b)) is amended to read as follows:

23 ‘‘(b) Notwithstanding any other provision of law and

24 subject only to the absence of qualified requests for insur25 ance, to the authority provided in this Act, and to the limi-
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1 tation in subsection (a), the Secretary shall enter into com2 mitments to insure mortgages under this Act with an aggre3 gate principal amount of $105,000,000,000 during fiscal

4 year 1995 and $91,000,000,000 during fiscal year 1996.’’.

5 SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY

6 BOARD.

7 Section 202(b)(11) of the National Housing Act (12

8 U.S.C. 1708(b)(11)) is amended by striking ‘‘January 1,

9 1995.’’ and inserting ‘‘January 1, 1997.’’.

10 SEC. 403. MAXIMUM MORTGAGE AMOUNT CEILING FOR SIN11 GLE FAMILY MORTGAGES.

12 Subparagraph (A) of the first sentence of section

13 203(b)(2) of the National Housing Act (12 U.S.C.

14 1709(b)(2)(A)) is amended by striking clause (ii) and in15 serting the following new clause:

16 ‘‘(ii) 85 percent of the dollar amount

17 limitation determined under section

18 305(a)(2) of the Federal Home Loan Mort19 gage Corporation Act (as adjusted annually

20 under such section) for a residence of the

21 applicable size;’’.

22 SEC. 404. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SIN23 GLE FAMILY MORTGAGE INSURANCE.

24 Subparagraph (A) of the first sentence of section

25 203(b)(2) of the National Housing Act (12 U.S.C.
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1 1709(b)(2)(A)) is amended by striking ‘‘the dollar amount

2 limitation in effect under this section for the area on May

3 12, 1992’’ and inserting the following: ‘‘50 percent of the

4 dollar amount limitation determined under section

5 305(a)(2) of the Federal Home Loan Mortgage Corporation

6 Act (as adjusted annually under such section) for a resi7 dence of the applicable size’’.

8 SEC. 405. ELIMINATION OF RESTRICTIONS REGARDING NEW

9 CONSTRUCTION.

10 (a) IN GENERAL.—Section 203(b)(2) of the National

11 Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the

12 matter following subparagraph (B)—

13 (1) in the 1st undesignated paragraph, by strik14 ing ‘‘Notwithstanding any other provision of this sec15 tion,’’ and all that follows through ‘‘beginning of con16 struction.’’; and

17 (2) by striking the 2d undesignated paragraph

18 (relating to mortgage insurance amounts for resi19 dences having solar energy systems).

20 (b) REPEAL OF AUTHORITY TO EXPEND AMOUNTS

21 FROM INSURANCE FUND TO CORRECT SUBSTANTIAL DE22 FECTS.—Section 518 of the National Housing Act (12

23 U.S.C. 1735b) is hereby repealed.
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1 SEC. 406. AUTHORITY TO USE AMOUNTS BORROWED FROM

2 FAMILY MEMBERS FOR DOWNPAYMENTS.

3 (a) IN GENERAL.—Section 203(b)(9) of the National

4 Housing Act (12 U.S.C. 1709(b)(9)) is amended by insert5 ing before the period at the end the following: ‘‘: Provided

6 further, That for purposes of this paragraph, the Secretary

7 shall consider as cash or its equivalent any amounts bor8 rowed from a family member (as such term is defined in

9 section 201), subject only to the requirements that, in any

10 case in which the repayment of such borrowed amounts is

11 secured by a lien against the property, such lien shall be

12 subordinate to the mortgage and the sum of the principal

13 obligation of the mortgage and the obligation secured by

14 such lien may not exceed 100 percent of the appraised value

15 of the property plus any initial service charges, appraisal,

16 inspection, and other fees in connection with the mortgage’’.

17 (b) DEFINITION OF FAMILY MEMBER.—Section 201 of

18 the National Housing Act (12 U.S.C. 1707) is amended by

19 adding at the end the following new subsections:

20 ‘‘(e) The term ‘family member’ means, with respect to

21 a mortgagor under such section, a child, parent, or grand22 parent of the mortgagor (or the mortgagor’s spouse). In de23 termining whether any of the relationships referred to in

24 the preceding sentence exist, a legally adopted son or daugh25 ter of an individual (and a child who is a member of an

26 individual’s household, if placed with such individual by
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1 an authorized placement agency for legal adoption by such

2 individual), and a foster child of an individual, shall be

3 treated as a child of such individual by blood.

4 ‘‘(f) The term ‘child’ means, with respect to a mortga5 gor under such section, a son, stepson, daughter, or step6 daughter of such mortgagor.’’.

7 SEC. 407. INDEMNIFICATION FOR MULTIFAMILY HOUSING

8 PROJECT MANAGERS.

9 Section 207(l) of the National Housing Act (12 U.S.C.

10 1713(l)) is amended by inserting before the period at the

11 end the following: ‘‘: Provided further, That, for properties

12 acquired by the Secretary under this section and for prop13 erties secured by any mortgage assigned and transferred to

14 or held by the Secretary, the Secretary may indemnify

15 management contractors against claims by third persons for

16 death, bodily injury, or loss of or damage to property on

17 such terms as the Secretary determines appropriate’’.

18 SEC. 408. EXTENSION OF MULTIFAMILY HOUSING MORT19 GAGE AUCTION PROVISIONS.

20 The first sentence of section 221(g)(4)(C)(viii) of the

21 National Housing Act (12 U.S.C. 1715l(g)(4)(C)(viii)) is

22 amended by striking ‘‘September 30, 1995’’ and inserting

23 ‘‘December 31, 2005’’.
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1 SEC. 409. STREAMLINED REFINANCING FOR HUD-HELD

2 MORTGAGES.

3 (a) IN GENERAL.—Section 223(a) of the National

4 Housing Act (12 U.S.C. 1715n) is amended—

5 (1) in paragraph (7), by striking the colon pre6 ceding ‘‘Provided further,’’ and all that follows

7 through ‘‘and the mortgagee’’;

8 (2) by redesignating paragraph (8) as para9 graph (9);

10 (3) by inserting after paragraph (7) the follow11 ing new paragraph:

12 ‘‘(8) given to refinance a mortgage held by the

13 Secretary, upon such terms and conditions as the Sec14 retary may prescribe, covering property on which

15 there is located a 1- to 4-family residence, or a 1-fam16 ily unit in a condominium project, which mortgage

17 was formerly insured under this Act and subsequently

18 assigned to the Secretary: Provided, That the mortga19 gor has not previously refinanced a mortgage pursu20 ant to this paragraph: Provided further, That the

21 mortgagor has made all payments due under the note

22 secured by the existing mortgage and all payments

23 due under the note for at least the previous 6 months,

24 or the mortgagor is under a forbearance agreement

25 and has made all payments due under the note se26 cured by the existing mortgage for at least the pre-
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1 vious 6 months: Provided further, That the principal

2 amount of the refinancing mortgage may not exceed

3 the outstanding principal balance of the existing

4 mortgage by more than additional amounts owed by

5 the mortgagor due to the delinquency and to the re6 ceipt of assignment assistance under section 230: Pro7 vided further, That the monthly payment due under

8 the refinancing mortgage may not exceed the monthly

9 payment due under the existing mortgage: Provided

10 further, That the refinancing mortgage may have a

11 term not more than 12 years in excess of the

12 unexpired term of the assigned mortgage: Provided

13 further, That the refinancing mortgage may be in14 sured under section 203(b) or 221(d)(2) of this Act,

15 at the option of the mortgagee, or under section 234(c)

16 of this Act in the case of a condominium: Provided

17 further, That a refinancing mortgage insured under

18 section 221(d)(2) shall involve a principal obligation

19 in an amount not to exceed 50 percent of the applica20 ble dollar limitation for a 1- to 4-family residence

21 under section 203(b)(2): Provided further, That the

22 authority under this paragraph to refinance a mort23 gage shall terminate 30 months after the date of en24 actment of this Act: Provided further, That the total
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1 number of mortgages refinanced under this paragraph

2 may not exceed 20,000; or’’; and

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

4 material:

5 ‘‘A mortgage of the character described in paragraphs (1)

6 through (6) of this subsection shall have a maturity and

7 a principal obligation not in excess of the maximums pre8 scribed under the applicable section or title of this Act, ex9 cept that in no case may the principal obligation of a mort10 gage referred to in paragraph (5) of this subsection exceed

11 90 percent of the appraised value of the mortgage property,

12 and shall bear interest at such rate as may be agreed upon

13 by the mortgagor and the mortgagee.’’.

14 (b) IMPLEMENTATION.—The Secretary of Housing and

15 Urban Development may implement the authority to refi16 nance a mortgage held by the Secretary under section

17 223(a)(8) of the National Housing Act, as added by the

18 amendment made by subsection (a)(3) of this section, by

19 notice published in the Federal Register setting forth such

20 requirements as may be necessary.

21 SEC. 410. HOME EQUITY CONVERSION MORTGAGES FOR EL22 DERLY HOMEOWNERS.

23 (a) EXTENSION OF PROGRAM.—The first sentence of

24 section 255(g) of the National Housing Act (12 U.S.C.
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1 1715z–20(g)) is amended by striking ‘‘September 30, 1995’’

2 and inserting ‘‘September 30, 2000’’.

3 (b) ELIGIBLE RESIDENCES.—Section 255(d)(3) of the

4 National Housing Act (12 U.S.C. 1715z–20(d)(3)) is

5 amended to read as follows:

6 ‘‘(3) be secured by a dwelling that is designed

7 principally for a 1- to 4-family residence in which

8 the mortgagor occupies 1 of the units;’’.

9 (c) EXPANSION OF PROGRAM.—The second sentence of

10 section 255(g) of the National Housing Act (12 U.S.C.

11 1715z–20(g)) is amended by striking ‘‘25,000’’ and insert12 ing ‘‘50,000’’.

13 (d) REPORTS.—Section 255(k) of the National Hous14 ing Act is amended by adding at the end the following new

15 sentences: ‘‘Each biennial report shall also include the re16 sults of a survey conducted during the period since the most

17 recent report under this subsection to determine (A) the fi18 nancial and other needs of elderly homeowners that cause

19 such homeowners to consider obtaining home equity conver20 sion mortgages, and (B) the extent of consumer satisfaction

21 regarding the program under this section and counseling

22 provided pursuant to the requirements of this section. In

23 conducting the survey, the Secretary shall consult a rep24 resentative sample of mortgagors of mortgages insured

25 under this section and of elderly homeowners who have ex-
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1 pressed interest in obtaining, but did not obtain, such mort2 gages.’’.

3 (e) AVOIDANCE OF PREEMPTION OF STATE LAW.—Sec4 tion 255(b)(3) of the National Housing Act is amended—

5 (1) in clause (B), by striking ‘‘, notwithstanding

6 any State constitution, law, or regulation’’; and

7 (2) by adding at the end the following new sen8 tence: ‘‘Notwithstanding any other provision of this

9 section, the Secretary may not provide insurance for

10 a home equity conversion mortgage in the State of

11 Texas if under the State constitution, or a law or reg12 ulation of such State, such mortgages are prohibited

13 or foreclosure or forced sale of the property subject to

14 such a mortgage is prohibited.’’.

15 SEC. 411. SINGLE FAMILY RISK-SHARING MORTGAGE INSUR16 ANCE PROGRAM.

17 (a) IN GENERAL.—Title II of the National Housing

18 Act (12 U.S.C. 1707 et seq.) is amended by adding at the

19 end the following new section:

20 ‘‘SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL

21 AGENCIES

22 ‘‘SEC. 256. (a) PURPOSES.—The purposes of the pro23 gram under this section are (1) to increase the availability

24 of single family mortgage financing in areas where there

25 is need for mortgage insurance under this Act that cannot

26 be met due to particularly high average median house prices
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1 in the area, and (2) to foster arrangements with State and

2 local agencies to share the risk of mortgage insurance.

3 ‘‘(b) AUTHORITY.—Notwithstanding any other provi4 sion of this Act inconsistent with this section, the Secretary

5 may insure and make commitments to insure under this

6 section mortgages on single family properties under risk7 sharing mortgage insurance programs established with 1 or

8 more States or agencies. Under such programs, the Sec9 retary shall insure a portion of the mortgage, and the State

10 or local agency shall insure the remainder or (at the discre11 tion of the agency) a portion of the remainder and provide

12 for private mortgage insurance companies to insure any

13 portion of the remainder not insured by the agency. The

14 portion of the mortgage insured under this section by the

15 Secretary and the State or local agency, in the aggregate,

16 may not exceed 35 percent of the outstanding principal obli17 gation of the mortgage (and such fees, interest, and other

18 expenses determined by the Secretary to be appropriate).

19 ‘‘(c) ELIGIBLE MORTGAGES.—The Secretary may in20 sure under this section, and make commitments to insure

21 under this section, only mortgages that—

22 ‘‘(1) are executed—

23 ‘‘(A) in connection with the acquisition of a

24 single family property; or
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1 ‘‘(B) for the refinancing of a mortgage that

2 was previously insured under this section; and

3 ‘‘(2) involve a property located in an area—

4 ‘‘(A) for which the amount under clause (ii)

5 of section 203(b)(2)(A) is less than the amount

6 determined under clause (i) of such section for a

7 residence of the applicable size; and

8 ‘‘(B) that has a State agency that—

9 ‘‘(i) is fully authorized under State

10 and local laws and is adequately capital11 ized, in the determination of the Secretary,

12 to carry out this section; and

13 ‘‘(ii)(I) carries the designation of ‘top

14 tier’ or its equivalent, as evaluated by

15 Standard and Poors or any other nation16 ally recognized rating agency; or

17 ‘‘(II) receives a rating of ‘A’ for its

18 general obligation bonds from a nationally

19 recognized rating agency.

20 ‘‘(d) APPLICATIONS.—

21 ‘‘(1) APPROVAL.—The Secretary may approve an

22 application submitted by a State or local agency to

23 establish a risk-sharing program under this section,

24 only if the Secretary determines that the State or

25 local agency has demonstrated that—
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1 ‘‘(A) it has the legal authority under State

2 law and, where applicable, local law, to partici3 pate in the program under this section;

4 ‘‘(B) it has carried out, or has the potential

5 to carry out, a financially sound, efficient, and

6 effective mortgage insurance program; and

7 ‘‘(C) it has the ongoing administrative and

8 financial capacity necessary to carry out a pro9 gram under this section.

10 ‘‘(2) CANCELLATION OF APPROVAL.—The Sec11 retary may cancel approval of a State or local agency

12 under this section for a violation of requirements and

13 procedures under the risk-sharing agreement between

14 the State or local agency and the Secretary or for

15 other good cause, by giving notice to the State or local

16 agency. The cancellation shall be effective upon re17 ceipt of the notice by the agency or at a later date

18 specified by the Secretary. A decision by the Secretary

19 to cancel approval shall be final and conclusive and

20 shall not be subject to judicial review.

21 ‘‘(e) DELEGATION OF AUTHORITY TO INSURE TO

22 STATE AND LOCAL AGENCIES.—Pursuant to a risk-sharing

23 agreement with a State or local agency, the Secretary shall

24 delegate the authority to insure and make commitments to

25 insure the portion of mortgages to be insured by the Sec-
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1 retary under this section to the State or local agency. The

2 risk-sharing agreement shall contain such other matters as

3 the Secretary and the State or local agency agree.

4 ‘‘(f) UNDERWRITING STANDARDS AND LOAN TERMS

5 AND CONDITIONS.—The State or local agency shall adopt

6 underwriting standards and loan terms and conditions for

7 purposes of underwriting loans to be insured under this sec8 tion. Such standards shall be at least as stringent as the

9 standards pursuant to this Act for mortgages insured under

10 section 203 and shall be subject to review and approval by

11 the Secretary.

12 ‘‘(g) MORTGAGE INSURANCE PREMIUMS.—

13 ‘‘(1) REQUIREMENT.—The State or local agency

14 shall require the payment of mortgage insurance pre15 miums by mortgagors.

16 ‘‘(2) SHARES.—The Secretary shall establish

17 policies and procedures for the sharing of premiums

18 between the Secretary and the State or local agency,

19 based on the relative risk to, and administrative costs

20 of, the Secretary and the State or local agency. The

21 share paid to the Secretary shall not be less than an

22 amount necessary to cover the risk to, and adminis23 trative costs of, the Secretary.

24 ‘‘(h) LIMITATIONS ON PRINCIPAL MORTGAGE

25 AMOUNT.—
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1 ‘‘(1) INSURED PORTION.—The portion of the

2 mortgage insured under this section by the Secretary

3 may not exceed an amount equal to the lesser of (A)

4 80 percent of the appraised value of the property, or

5 (B) the maximum amount the Secretary may insure

6 under section 203(b) of this Act for the area (but not

7 including any amount for a mortgage insurance pre8 mium).

9 ‘‘(2) TOTAL PRINCIPAL AMOUNT.—The total

10 principal amount of a mortgage insured under this

11 section by the Secretary and the State or local agency

12 (A) shall exceed the maximum amount the Secretary

13 may insure under subparagraph (A) of the first sen14 tence of section 203(b)(2) for the area, and (B) may

15 not exceed the conforming loan limitation determined

16 under section 305(a)(2) of the Federal Home Loan

17 Mortgage Corporation Act for a residence of the ap18 plicable size, as adjusted annually.

19 ‘‘(3) LOAN-TO-VALUE RATIO.—The principal ob20 ligation of a mortgage may not exceed an amount de21 termined in accordance with subparagraph (B) of the

22 first sentence of section 203(b)(2) plus the mortgage

23 insurance premium.

24 ‘‘(4) REFINANCING MORTGAGES.—Notwithstand25 ing paragraph (2)(A) or (3), in the case of refinanc-
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1 ing of an existing mortgage that was previously in2 sured under this section, the principal obligation of a

3 refinancing mortgage may not exceed the outstanding

4 principal balance of the existing mortgage plus any

5 mortgage insurance premium.

6 ‘‘(i) INSURANCE CLAIMS.—

7 ‘‘(1) PROCEDURE.—In the case of a default and

8 foreclosure of a mortgage insured under this section,

9 the mortgagee may file a claim with the State or local

10 agency for insurance benefits in accordance with re11 quirements established by the State or local agency

12 and approved by the Secretary. The agency shall pay

13 the full amount of the claim owed to the mortgagee.

14 If the loss on the insured mortgage exceeds the amount

15 of insurance by the agency, the Secretary shall reim16 burse the agency for the difference.

17 ‘‘(2) MUTUAL MORTGAGE INSURANCE FUND.—

18 The insurance of a mortgage under this section by the

19 Secretary shall be an obligation of the Mutual Mort20 gage Insurance Fund created pursuant to section 205.

21 ‘‘(j) INAPPLICABILITY OF THE ASSIGNMENT PRO22 GRAM.—Section 230 shall not apply to mortgages insured

23 under the program authorized by this section.
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1 ‘‘(k) RESTRICTION ON GNMA SECURITIZATION.—The

2 Government National Mortgage Association shall not

3 securitize any loans insured under this section.

4 ‘‘(l) DEFINITIONS.—For purposes of this section, the

5 following definitions shall apply:

6 ‘‘(1) The term ‘local agency’ means an agency of

7 a unit of general local government, as defined by the

8 Secretary, that has the authority to insure mortgages

9 and to participate with the Secretary in the single

10 family risk-sharing program under this section, or an

11 agency or instrumentality of a local agency if the

12 agency or instrumentality has such authority.

13 ‘‘(2) The term ‘State agency’ means an agency of

14 a State that has the authority to insure mortgages

15 and to participate with the Secretary in the single

16 family risk-sharing program under this section, or an

17 agency or instrumentality of a State agency if the

18 agency or instrumentality has such authority.

19 ‘‘(3) The term ‘single family property’ means a

20 property upon which there is located a dwelling de21 signed principally for occupancy by 1 family, and in22 cludes a condominium and a cooperative.

23 ‘‘(4) The term ‘State’ means the several States,

24 the Commonwealth of Puerto Rico, the District of Co25 lumbia, Guam, the Commonwealth of the Northern
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1 Mariana Islands, American Samoa, and the Virgin

2 Islands.’’.

3 (b) REGULATIONS.—The Secretary of Housing and

4 Urban Development shall issue any regulations necessary

5 to implement the amendment made by subsection (a).

6 SEC. 412. DELEGATION OF SINGLE FAMILY MORTGAGE IN7 SURING AUTHORITY TO DIRECT ENDORSE8 MENT MORTGAGEES.

9 Title II of the National Housing Act (12 U.S.C. 1707

10 et seq.), as amended by the preceding provisions of this Act,

11 is further amended by adding at the end the following new

12 section:

13 ‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT

14 ENDORSEMENT MORTGAGEES

15 ‘‘SEC. 257. (a) AUTHORITY.—The Secretary may dele16 gate, to one or more mortgagees approved by the Secretary

17 under the direct endorsement program, the authority of the

18 Secretary under this Act to insure mortgages involving

19 property upon which there is located a dwelling designed

20 principally for occupancy by 1 to 4 families.

21 ‘‘(b) CONSIDERATIONS.—In determining whether to

22 delegate authority to a mortgagee under this section, the

23 Secretary shall consider the experience and performance of

24 the mortgagee under the direct endorsement program, the

25 default rate of insured mortgages originated by the mortga26 gee compared to the default rate of all insured mortgages
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1 in comparable markets, and such other factors as the Sec2 retary determines appropriate to minimize risk of loss to

3 the insurance funds under this Act.

4 ‘‘(c) ENFORCEMENT OF INSURANCE REQUIREMENTS.—

5 ‘‘(1) IN GENERAL.—If the Secretary determines

6 that a mortgage insured by a mortgagee pursuant to

7 delegation of authority under this section was not

8 originated in accordance with the requirements estab9 lished by the Secretary, and the Secretary pays an in10 surance claim with respect to the mortgage within a

11 reasonable period specified by the Secretary, the Sec12 retary may require the mortgagee approved under

13 this section to indemnify the Secretary for the loss.

14 ‘‘(2) FRAUD OR MISREPRESENTATION.—If fraud

15 or misrepresentation was involved in connection with

16 the origination, the Secretary may require the mort17 gagee approved under this section to indemnify the

18 Secretary for the loss regardless of when an insurance

19 claim is paid.

20 ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—If

21 a mortgagee to which the Secretary has made a delegation

22 under this section violates the requirements and procedures

23 established by the Secretary or the Secretary determines

24 that other good cause exists, the Secretary may cancel a

25 delegation of authority under this section to the mortgagee
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1 by giving notice to the mortgagee. Such a cancellation shall

2 be effective upon receipt of the notice by the mortgagee or

3 at a later date specified by the Secretary. A decision by

4 the Secretary to cancel a delegation shall be final and con5 clusive and shall not be subject to judicial review.

6 ‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap7 proving a delegation under this section, the Secretary shall

8 issue regulations establishing appropriate requirements and

9 procedures, including requirements and procedures govern10 ing the indemnification of the Secretary by the mortgagee.’’.

11 SEC. 413. ELIGIBILITY OF MORTGAGES ON HOMES ON

12 LEASED LAND OWNED BY COMMUNITY LAND

13 TRUSTS.

14 Title II of the National Housing Act (12 U.S.C. 1707

15 et seq.), as amended by the preceding provisions of this Act,

16 is further amended by adding at the end the following new

17 section:

18 ‘‘ELIGIBILITY OF MORTGAGES ON HOMES ON LEASED LAND

19 OWNED BY COMMUNITY LAND TRUSTS

20 ‘‘SEC. 258. (a) ELIGIBILITY FOR INSURANCE.—In pro21 viding mortgage insurance under any provision of this title

22 for a mortgage covering a 1- to 4-family residence, the Sec23 retary may insure a mortgage covering such a residence

24 which is located on property owned by a community land

25 trust without regard to the extent to which the resale price
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1 of the residence is restricted or the manner in which such

2 price is established.

3 ‘‘(b) LIMITATION ON RESTRICTIONS.—The Secretary

4 may not, as a condition of such insurance, establish any

5 requirements regarding the resale price of residences on

6 land owned by a community land trust, except that the Sec7 retary may require that a ground lease or other document

8 establishing legally enforceable restrictions or limitations

9 on the resale price provide that the restrictions or limita10 tions be cancelable in the event of foreclosure or delivery

11 of a deed in lieu of foreclosure (or assignment).

12 ‘‘(c) DEFINITION OF ‘COMMUNITY LAND TRUST’.—For

13 purposes of this section, the term ‘community land trust’

14 has the meaning given the term in section 233 of the Cran15 ston-Gonzalez National Affordable Housing Act.’’.

16 SEC. 414. INSURANCE OF 2-STEP SINGLE FAMILY MORT17 GAGES.

18 Title II of the National Housing Act (12 U.S.C. 1701

19 et seq.), as amended by the preceding provisions of this Act,

20 is further amended by adding at the end the following new

21 section:

22 ‘‘2-STEP SINGLE FAMILY MORTGAGES

23 ‘‘SEC. 259. (a) AUTHORITY.—After making the finding

24 required under subsection (d), the Secretary may insure

25 under any provision of this title a mortgage involving prop26 erty upon which there is located a dwelling designed prin-
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1 cipally for occupancy by 1 to 4 families, where the mortgage

2 provides that the effective rate of interest charged is—

3 ‘‘(1) fixed for the duration of a specified period

4 that consists of not less than the first 5 years of the

5 mortgage term;

6 ‘‘(2) adjusted by the mortgagee upon the expira7 tion of the specified period referred to in paragraph

8 (1) for the mortgage; and

9 ‘‘(3) for the term of the mortgage remaining after

10 such adjustment—

11 ‘‘(A) fixed at the adjusted rate established

12 pursuant to paragraph (2); or

13 ‘‘(B) periodically adjusted by the mortgagee.

14 ‘‘(b) REDETERMINATION OF RATE.—For each mort15 gage insured pursuant to this section, the adjustment of the

16 effective rate of interest pursuant to subsection (a)(2) may

17 be accomplished through adjustments in the monthly pay18 ment amount, the outstanding principal balance, or the

19 mortgage term, or a combination of such factors, except that

20 in no case may any extension of a mortgage term result

21 in a total term in excess of 40 years. The adjustment in

22 the effective rate of interest shall correspond to a specified

23 national interest rate index that is approved in regulations

24 issued by the Secretary and information on which is readily
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1 accessible to the mortgagors from generally available pub2 lished sources.

3 ‘‘(c) LIMITATIONS ON SECOND-STEP PERIODIC

4 RATES.—For each mortgage insured pursuant to this sec5 tion for which the effective rate of interest charged pursuant

6 to subsection (a)(3) is periodically adjusted under subpara7 graph (B) of such subsection, such adjustments in the inter8 est rate—

9 ‘‘(1) may be accomplished through adjustments

10 in the monthly payment amount, the outstanding

11 principal balance, or the mortgage term, or a com12 bination of such factors, except that in no case may

13 any extension of a mortgage term result in a total

14 term in excess of 40 years;

15 ‘‘(2) shall correspond to a specified national in16 terest rate index that is approved in regulations is17 sued the Secretary and information on which is read18 ily accessible to the mortgagors from generally avail19 able published sources;

20 ‘‘(3) shall be made on an annual basis;

21 ‘‘(4) shall be limited, with respect to any single

22 interest rate increase, to no more than 1 percent on

23 the outstanding loan balance; and
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1 ‘‘(5) be limited to a maximum increase of 5 per2 centage points above the initial contract interest rate

3 over the term of the mortgage.

4 ‘‘(d) CONDITIONS ON INSURING AUTHORITY.—The Sec5 retary may insure mortgages pursuant to this section only

6 after determining that the risk posed by such insurance to

7 the financial safety and soundness of the insurance fund

8 of which the mortgage insurance is an obligation does not

9 exceed such risk posed by insurance of mortgages of equiva10 lent terms having fixed interest rates over such terms.

11 ‘‘(e) DESCRIPTION OF FEATURES.—The Secretary

12 shall issue regulations requiring that the mortgagee make

13 available to the mortgagor, at the time of loan application,

14 a written explanation of the features of the 2-step mortgage

15 insured pursuant to this section.

16 ‘‘(f) LIMITATION OF TOTAL NUMBER OF MORTGAGES

17 INSURED.—The aggregate number of mortgages and loans

18 insured pursuant to this section in any fiscal year may

19 not exceed 10 percent of the aggregate number of mortgages

20 and loans insured by the Secretary under this title during

21 the preceding fiscal year.’’.
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1 SEC. 415. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS

2 IN HIGH-COST AREAS.

3 (a) IN GENERAL.—Each of the provisions under sub4 section (b) is amended by striking ‘‘140 percent’’ and in5 serting ‘‘152 percent’’.

6 (b) PROVISIONS AMENDED.—The provisions under this

7 subsection are the following sections of title II of the Na8 tional Housing Act (12 U.S.C. 1707 et seq.):

9 (1) Section 207(c)(3).

10 (2) Section 213(b)(2).

11 (3) Section 220(d)(3)(B)(iii).

12 (4) Section 221(d)(3)(ii).

13 (5) Section 221(d)(4)(ii).

14 (6) Section 231(c)(2).

15 (7) Section 234(e)(3).

16 SEC. 416. CALCULATION OF CREDIT SUBSIDY FOR FHA

17 REFINANCINGS AND OFFSET OF NEGATIVE

18 SUBSIDIES.

19 (a) REFINANCING.—Paragraph (2) of section 542 of

20 the National Housing Act (12 U.S.C. 1735f–20(2)) is

21 amended by adding at the end the following new sentence:

22 ‘‘In the case of a mortgage insured under this Act that refi23 nances an existing insured mortgage, the cost to the Govern24 ment shall not exceed an amount that is determined by ap25 plying the subsidy rate used for the insurance authority

26 pursuant to which the refinanced mortgage was insured to
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1 the amount of the refinancing mortgage which exceeds the

2 outstanding principal balance of the refinanced mortgage,

3 which amount may be adjusted, if necessary, by reason of

4 an extension in the remaining term of the refinanced mort5 gage.’’.

6 (b) OFFSETS.—Section 542 of the National Housing

7 Act is amended by adding at the end the following new flush

8 sentence:

9 ‘‘The cost, as defined in section 502 of the Congressional

10 Budget Act of 1974, for any fiscal year of new insurance

11 commitments and of modifications to existing loans, loan

12 guarantees, or insurance commitments, shall be determined

13 by subtracting the aggregate amount of negative subsidies

14 from the aggregate amount of positive subsidies for the fiscal

15 year.’’.

16 SEC. 417. APPROVAL OF POINT-OF-USE PURIFICATION SYS17 TEMS AND TESTING OF SYSTEMS.

18 (a) IN GENERAL.—Section 424 of the Housing and

19 Community Development Act of 1987 (12 U.S.C. 1701z–

20 15) is amended—

21 (1) in subsection (a), by inserting after the pe22 riod at the end the following new sentence: ‘‘The Sec23 retary of Housing and Urban Development shall pro24 vide for the approval under subsection (c) of both

25 point-of-use and point-of-entry water treatment
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1 equipment and water purification systems that meet

2 the standards established under this section.’’;

3 (2) in the first sentence of subsection (b), by

4 striking ‘‘general standards recognized by the Depart5 ment as modified for local or regional conditions’’

6 and inserting the following: ‘‘standards for testing

7 using (1) industry-accepted product testing protocols,

8 or (2) protocols that utilize technically valid meth9 odology using analytical testing methods of the Envi10 ronmental Protection Agency for drinking water qual11 ity and maximum contaminant levels or equivalent

12 methods’’;

13 (3) by redesignating subsection (b) (as amended

14 by paragraph (2) of this section) as subsection (c);

15 and

16 (4) by inserting after subsection (a) the following

17 new subsection:

18 ‘‘(b) POINT-OF-USE EQUIPMENT.—For any property

19 in which the water treatment or purification system in op20 eration employs point-of-use equipment, the Secretary may

21 not require that a treatment or purification system be em22 ployed on any water supply source serving the property

23 that provides water that will not be used primarily for

24 human consumption.’’.
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1 (b) REGULATIONS.—The Secretary of Housing and

2 Urban Development shall issue any regulations necessary

3 to carry out section 424 of the Housing and Community

4 Development Act of 1987, as amended by subsection (a) of

5 this section, not later than the expiration of the 6-month

6 period beginning on the date of the enactment of this Act.

7 SEC. 418. ENERGY EFFICIENT MORTGAGES PILOT PRO8 GRAM.

9 Section 106 of the Energy Policy Act of 1992 (42

10 U.S.C. 12712 note) is amended—

11 (1) in subsection (a)(2)—

12 (A) in subparagraph (A), by inserting

13 ‘‘(which may be an adjustable rate mortgage in14 sured under section 251 of such Act and may be

15 a mortgage for a property that is not the prin16 cipal or secondary residence of the mortgagor to

17 the extent provided in section 203(g) of such

18 Act)’’ after ‘‘Act’’; and

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

20 subparagraph:

21 ‘‘(D) RATING AND INSTALLATION.—The pro22 gram shall provide that the person conducting

23 the home energy rating report under subsection

24 (c)(2) for the property subject to the energy effi25 cient mortgage may also, subject only to the ap-
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1 proval of the mortgagee and mortgagor, install

2 the energy efficiency improvements.’’; and

3 (2) in subsection (c)—

4 (A) in paragraph (1), by inserting ‘‘(in5 cluding an adjustable rate mortgage loan eligible

6 for insurance under section 251 of such Act)’’

7 after ‘‘Act’’; and

8 (B) in the first sentence of paragraph (2),

9 by striking ‘‘the total present value cost’’ and all

10 that follows through the end of the sentence and

11 inserting the following: ‘‘energy improvements

12 that generate energy savings in the first year

13 after improvement that are greater than the in14 crease in the amount of the loan payment for

15 such first-year due to the energy improvements.

16 In the case of a base loan insured under section

17 251 of the National Housing Act, the interest

18 rate used to determine the amount of such in19 crease in the loan payment shall be the maxi20 mum allowable interest rate under the mort21 gage.’’.

22 SEC. 419. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT

23 DEMONSTRATIONS.

24 Section 542 of the Housing and Community Develop25 ment Act of 1992 (12 U.S.C. 1707 note) is amended—
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1 (1) in subsection (b)(5), by striking ‘‘1993 and

2 1994’’ and inserting ‘‘1995 and 1996’’; and

3 (2) in subsection (c)(4), by striking ‘‘1993, 1994,

4 and 1995’’ and inserting ‘‘1995, 1996, and 1997’’.

5 SEC. 420. INDIAN HOUSING LOAN GUARANTEES.

6 (a) LIMITATION ON OUTSTANDING AGGREGATE PRIN7 CIPAL AMOUNT.—Section 184(i)(5)(C) of the Housing and

8 Community Development Act of 1992 (12 U.S.C. 1515z–

9 13a(i)(5)(C)) is amended by striking ‘‘fiscal years 1993 and

10 1994’’ and inserting ‘‘fiscal years 1995 and 1996’’.

11 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR12 ANTEE FUND.—Section 184(i)(7) of the Housing and Com13 munity Development Act of 1992 (12 U.S.C. 1515z–

14 13a(i)(7)) is amended to read as follows:

15 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

16 There are authorized to be appropriated to the Guar17 antee Fund to carry out this section $50,000,000 for

18 fiscal year 1995 and $50,000,000 for fiscal year

19 1996.’’.

20 SEC. 421. NATIONAL COMMISSION ON THE FUTURE OF THE

21 FEDERAL HOUSING ADMINISTRATION.

22 (a) PURPOSE.—The purpose of this section is to estab23 lish a national commission to develop recommendations re24 garding the appropriate future role of the Federal Govern25 ment in providing mortgage insurance, for modernizing
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1 and improving the structure and operations of the Federal

2 Housing Administration, for protecting the safety and

3 soundness of the insurance funds of the FHA, and for serv4 ing families currently underserved by the mortgage finance

5 system.

6 (b) ESTABLISHMENT.—There is hereby established a

7 commission to be known as the National Commission on

8 the Future of the Federal Housing Administration.

9 (c) MEMBERSHIP.—

10 (1) IN GENERAL.—The Commission shall consist

11 of the Secretary of Housing and Urban Development

12 and 16 members appointed, not later than 60 days

13 after amounts to carry out this section are made

14 available under subsection (h), as follows:

15 (A) 4 members shall be appointed by the

16 Chairman of the Committee on Banking, Hous17 ing, and Urban Affairs of the Senate and 4

18 members shall be appointed by the Ranking Mi19 nority Member of such Committee.

20 (B) 4 members shall be appointed by the

21 Chairman of the Committee on Banking, Fi22 nance and Urban Affairs of the House of Rep23 resentatives and 4 members shall be appointed

24 by the Ranking Minority Member of such Com25 mittee.
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1 (2) QUALIFICATIONS.—The 8 members of the

2 Commission appointed under each of subparagraphs

3 (A) and (B) of paragraph (1) shall include—

4 (A) 1 individual who represents the mort5 gage finance industry;

6 (B) 1 individual with knowledge and expe7 rience from a secondary mortgage market entity;

8 (C) 1 individual with knowledge and expe9 rience concerning home sales or multifamily

10 housing management;

11 (D) 1 individual who represents the private

12 mortgage insurance industry;

13 (E) 1 individual with knowledge and expe14 rience concerning single family or multifamily

15 housing asset management;

16 (F) 1 individual who represents a State or

17 local housing agency active in single family or

18 multifamily housing activities;

19 (G) 1 individual who represents the inter20 ests of consumers or communities, in single fam21 ily or multifamily housing; and

22 (H) 1 individual who represents or resides

23 in an urban or rural neighborhood whose resi24 dents consist predominantly of members of mi25 norities.
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1 (3) CHAIRPERSON.—The Commission shall elect

2 a chairperson from among members of the Commis3 sion.

4 (4) QUORUM.—A majority of the members of the

5 Commission shall constitute a quorum for the trans6 action of business.

7 (5) VOTING.—Each member of the Commission

8 shall be entitled to 1 vote, and all votes shall be given

9 equal weight.

10 (6) VACANCIES.—Any vacancy on the Commis11 sion shall not affect the powers of the Commission

12 and shall be filled in the manner in which the origi13 nal appointment was made.

14 (7) PROHIBITION ON ADDITIONAL PAY.—Members

15 of the Commission shall serve without compensation,

16 but shall be reimbursed for travel, subsistence, and

17 other necessary expenses incurred in the performance

18 of their duties as members of the Commission.

19 (d) SUBCOMMITTEES.—In carrying out its duties

20 under subsection (e), the Commission shall establish 2 sub21 committees, 1 of which shall carry out such duties with re22 spect to issues relating to mortgage insurance for multifam23 ily housing and 1 of which shall carry out such duties with

24 respect to issues relating to mortgage insurance for single

25 family housing.
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1 (e) DUTIES.—

2 (1) IN GENERAL.—The Commission shall conduct

3 a study of the existing operations of the FHA and

4 shall make recommendations regarding the future

5 mission, organization, responsibilities, and function

6 of the FHA. In conducting the study and formulating

7 recommendations, the Commission shall—

8 (A) determine the most appropriate role for

9 the Federal Government in extending the avail10 ability of mortgage credit and review various al11 ternative mortgage products and, with regard to

12 the mission and functions of the FHA, the ap13 propriateness of the use of such products by the

14 FHA;

15 (B) determine whom FHA programs are in16 tended to serve;

17 (C) consider whether the FHA could func18 tion more effectively if organized as a govern19 ment corporation, a government-sponsored enter20 prise, or with any other organizational structure

21 different from the existing structure;

22 (D) consider whether the personnel, procure23 ment, budgeting, and other requirements gen24 erally applicable to the Federal agencies should

25 be modified in their applicability to the FHA;
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1 (E) review the laws establishing and relat2 ing to the FHA and determine whether amend3 ments to such law would be appropriate to re4 structure the FHA, or to provide new authority

5 or increased flexibility for the operations of the

6 FHA;

7 (F) determine ways in which the FHA can

8 more effectively contribute to the revitalization of

9 inner cities and increase housing opportunities

10 for low-income families;

11 (G) determine ways to improve the manage12 ment and sale of assets owned by the FHA;

13 (H) determine ways to reduce the risk of fu14 ture insurance losses from the existing inventory

15 of outstanding mortgages insured by the FHA;

16 and

17 (I) determine ways to improve the private

18 management of multifamily properties insured

19 by the FHA.

20 (2) INTERIM REPORT.—Not later than the expi21 ration of the 10-month period beginning upon the ap22 pointment of all of the members of the Commission

23 under subsection (c), the Commission shall submit to

24 the Secretary of Housing and Urban Development

25 and to the Congress an interim report containing the
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1 preliminary information and evaluations specified in

2 paragraph (1) and initial recommendations for legis3 lative and administrative actions to carry out the de4 terminations made pursuant to paragraph (1).

5 (3) REPORT.—Not later than the expiration of

6 the 18-month period beginning upon the appointment

7 of all of the members of the Commission under sub8 section (c), the Commission shall submit to the Sec9 retary of Housing and Urban Development and to the

10 Congress a report containing the information and

11 evaluations specified in paragraph (1) and specific

12 recommendations for legislative and administrative

13 actions to carry out the determinations made pursu14 ant to paragraph (1).

15 (f) POWERS.—

16 (1) HEARINGS.—The Commission may, for the

17 purpose of carrying out this section, hold such hear18 ings and sit and act at such times and places as the

19 Commission considers appropriate.

20 (2) RULES AND REGULATIONS.—The Commis21 sion may adopt such rules and regulations as may be

22 necessary to establish its procedures and to govern the

23 manner of its operations, organization, and person24 nel.

25 (3) ASSISTANCE FROM FEDERAL AGENCIES.—
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1 (A) INFORMATION.—The Commission may

2 secure directly from any department or agency of

3 the United States such data and information as

4 the Commission may require for the purpose of

5 carrying out this section. Upon request of the

6 Commission, any such department or agency

7 shall furnish such data or information. The

8 Commission may acquire data or information

9 directly from such departments or agencies to the

10 same extent that the Secretary may acquire such

11 data or information.

12 (B) ADMINISTRATIVE SUPPORT.—The Gen13 eral Services Administration shall provide to the

14 Commission, on a reimbursable basis, adminis15 trative support services requested by the Commis16 sion.

17 (C) PERSONNEL DETAILS.—Upon the re18 quest of the chairperson of the Commission, the

19 Secretary shall, to the extent possible and subject

20 to the discretion of the Secretary, detail any of

21 the personnel of the Department of Housing and

22 Urban Development, on a nonreimbursable basis,

23 to assist the Commission in carrying out its du24 ties under this section.
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1 (4) MAILS.—The Commission may use the Unit2 ed States mails in the same manner and under the

3 same conditions as other Federal agencies.

4 (5) CONTRACTING.—The Commission may, to

5 such extent and in such amounts as are provided in

6 appropriations Acts, enter into contracts necessary to

7 carry out its duties under this section.

8 (6) ADVISORY COMMITTEE.—The Commission

9 shall be considered an advisory committee within the

10 meaning of the Federal Advisory Committee Act.

11 (7) STAFF.—

12 (A) EXECUTIVE DIRECTOR.—The Commis13 sion shall appoint an executive director of the

14 Commission who shall be compensated at a rate

15 fixed by the Commission, but which may not ex16 ceed the rate established for level V of the Execu17 tive Schedule under title 5, United States Code.

18 (B) PERSONNEL.—In addition to the execu19 tive director, the Commission may appoint and

20 fix the compensation of such personnel as the

21 Commission considers appropriate, in accord22 ance with the provisions of title 5, United States

23 Code, governing appointments in the competitive

24 service, and the provisions of chapter 51 and

25 subchapter III of chapter 53 of such title, relat-
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1 ing to classification and General Schedule pay

2 rates.

3 (C) LIMITATION.—This paragraph shall be

4 effective only to the extent amounts are made

5 available in appropriation Acts.

6 (g) DEFINITIONS.—For purposes of this section, the

7 following definitions shall apply:

8 (1) The term ‘‘Commission’’ means the National

9 Commission on the Future of the Federal Housing

10 Administration.

11 (2) The term ‘‘FHA’’ means the Federal Housing

12 Administration of the Department of Housing and

13 Urban Development.

14 (3) The term ‘‘Secretary’’ means the Secretary of

15 Housing and Urban Development.

16 (h) FUNDING.—Of any amounts appropriated pursu17 ant to section 501 of the Housing and Urban Development

18 Act of 1970, the Secretary shall set aside to carry out this

19 section $1,000,000 for fiscal year 1995. Any amounts made

20 available pursuant to this subsection shall remain available

21 until expended.

22 (i) SUNSET.—The Commission shall terminate upon

23 the expiration of the 18-month period that begins upon the

24 appointment of all of the members of the Commission under

25 subsection (c).
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1 SEC. 422. ACTION AND REPORT ON COOPERATIVE HOME2 OWNERSHIP FOR LOW- AND MODERATE-IN3 COME FAMILIES.

4 (a) REVIEW.—The Secretary of Housing and Urban

5 Development, acting through the Assistant Secretary who

6 is the Federal Housing Commissioner, shall review the re7 port of The Urban Institute, dated May 1994 and entitled

8 ‘‘Performance of HUD Subsidized Loans: Does Cooperative

9 Housing Matter?’’.

10 (b) ACTION.—Not later than 9 months after the date

11 of the enactment of this Act, the Secretary shall implement

12 any recommendations made in the report referred to in sub13 section (a) that (1) the Secretary considers appropriate and

14 feasible, (2) are within the jurisdiction of the Assistant Sec15 retary referred to in subsection (a), and (3) the Secretary

16 has authority under law to implement.

17 (c) REPORT.—The Secretary shall submit a report to

18 the Congress not later than 9 months after the date of the

19 enactment of this Act, which shall—

20 (1) evaluate the report referred to in subsection

21 (a);

22 (2) describe any action taken under subsection

23 (b);

24 (3) identify and proposes the elimination of any

25 Federal housing policies or programs that, in the de26 termination of the Secretary, inhibit the development
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1 of cooperative homeownership for low- and moderate2 income families; and

3 (4) recommend any legislative action necessary

4 to eliminate the policies or programs identified under

5 paragraph (3).

6 SEC. 423. STUDY OF ACTIVITY OF PRIVATE MORTGAGE

7 BANKERS AND INSURERS.

8 (a) STUDY.—The Secretary of Housing and Urban De9 velopment shall conduct a study to determine the patterns

10 of lending and insurance activity of private mortgage lend11 ers and private mortgage insurers, respectively. The study

12 shall be designed to determine—

13 (1) the geographical areas in which properties

14 are located for which loans are made by private mort15 gage lenders and the characteristics of such areas;

16 (2) the extent of lending activity by private

17 mortgage lenders, in terms of number of loans and

18 principal amount, in areas having a low median in19 come, a moderate median income, and other areas;

20 (3) the types of loans made by private mortgage

21 lenders, and the extent of lending activity, in each of

22 the areas described in paragraph (2), which shall in23 clude the types and extent of any lending activity

24 made in connection with economic development of

25 low- and moderate-income areas;
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1 (4) the geographical areas in which properties

2 are located for which mortgage insurance is provided

3 by private mortgage insurers and the characteristics

4 of such areas;

5 (5) the extent of insurance activity by private

6 mortgage insurers, in terms of number of loans in7 sured and principal amount insured, in areas having

8 a low median income, a moderate median income,

9 and other areas; and

10 (6) the types of loans insured and extent of in11 surance activity by private mortgage insurers in each

12 of the areas described in paragraph (5), which shall

13 include the types and extent of any insurance activity

14 made in connection with mortgages or loans for eco15 nomic development activity in low- and moderate-in16 come areas.

17 (b) REPORT.—The Secretary shall submit a report to

18 the Congress describing the results of the study under this

19 section not later than the expiration of the 6-month period

20 beginning on the date of the enactment of this Act.

21 (c) DEFINITIONS.—For purposes of this section—

22 (1) the term ‘‘private mortgage insurer’’ means

23 a person who provides insurance against the

24 nonpayment of, or default on, a mortgage or loan for

25 residential or commercial property that is not insur-
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1 ance made available under the National Housing Act,

2 title 38 of the United States Code, or title V of the

3 Housing Act of 1949; and

4 (2) the term ‘‘private mortgage lender’’ means

5 any lender that is not subject to the supervision, ap6 proval, regulation, or insuring of the Board of Gov7 ernors of the Federal Reserve System, the Federal De8 posit Insurance Corporation, the Comptroller of the

9 Currency, the Office of Thrift Supervision, the Na10 tional Credit Union Administration, or any other

11 Federal agency that regulates lending activity. The

12 term does not include institutions engage primarily

13 in the purchase of mortgage loans.

14 Subtitle B—Secondary Mortgage

15 Market Programs

16 SEC. 441. LIMITATION ON GNMA GUARANTEES OF MORT17 GAGE-BACKED SECURITIES.

18 Section 306(g)(2) of the Federal National Mortgage As19 sociation Charter Act (12 U.S.C. 1721(g)(2)) is amended

20 to read as follows:

21 ‘‘(2) Notwithstanding any other provision of law and

22 subject only to the absence of qualified requests for guaran23 tees, to the authority provided in this subsection, and to

24 the extent of or in such amounts as any funding limitation

25 approved in appropriation Acts, the Association shall enter
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1 into commitments to issue guarantees under this subsection

2 in an aggregate amount of $130,000,000,000 during fiscal

3 year 1995 and $130,000,000,000 during fiscal year 1996.

4 There are authorized to be appropriated to cover the costs

5 (as such term is defined in section 502 of the Congressional

6 Budget Act of 1974) of guarantees issued under this Act

7 by the Association such sums as may be necessary for each

8 of fiscal years 1995 and 1996.’’.

9 SEC. 442. ASSESSMENT COLLECTION DATES FOR OFFICE OF

10 FEDERAL HOUSING ENTERPRISE OVERSIGHT.

11 Section 1316(b) of the Housing and Community Devel12 opment Act of 1992 (12 U.S.C. 4516(b)) is amended by

13 striking paragraph (2) and inserting the following new

14 paragraph:

15 ‘‘(2) TIMING OF PAYMENT.—The annual assess16 ment shall be payable semiannually for each fiscal

17 year, on October 1st and April 1st.’’.

18 Subtitle C—Emergency Mortgage

19 Relief

20 SEC. 461. AMENDMENTS TO EMERGENCY HOMEOWNERS’ RE21 LIEF ACT.

22 (a) FINDINGS.—Section 102(a) of the Emergency

23 Homeowners’ Relief Act (12 U.S.C. 2701(a)) is amended—

24 (1) by striking paragraph (1) and inserting the

25 following new paragraph:
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1 ‘‘(1) certain homeowners in the United States

2 are encountering severe economic hardships as a re3 sult of unemployment or a reduction in income;’’;

4 (2) in paragraph (2), by striking ‘‘adverse eco5 nomic conditions’’ and inserting ‘‘economic hard6 ships’’; and

7 (3) in paragraph (3), by striking ‘‘economic con8 ditions’’ and inserting ‘‘their economic conditions’’.

9 (b) MORTGAGES ELIGIBLE FOR ASSISTANCE.—Section

10 103 of the Emergency Homeowners’ Relief Act (12 U.S.C.

11 2702) is amended—

12 (1) in paragraph (5), by striking ‘‘and’’ at the

13 end;

14 (2) in paragraph (6)—

15 (A) by inserting ‘‘a 1- to 4-family residence

16 that is’’ after ‘‘is’’; and

17 (B) by striking the period at the end and

18 inserting ‘‘; and’’; and

19 (3) by adding at the end the following new para20 graph:

21 ‘‘(7) the delinquency for which the holder of the

22 mortgage intends to foreclose commenced after the

23 date of the enactment of the Housing and Community

24 Development Act of 1994.’’.
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

2 109(a) of the Emergency Homeowners’ Relief Act (12

3 U.S.C. 2708(a)) is amended by striking ‘‘, except that’’ and

4 all that follows through ‘‘$500,000,000’’ and inserting ‘‘for

5 fiscal years 1995 and 1996’’.

6 (d) EXPIRATION DATE.—Section 109(b) of the Emer7 gency Homeowners’ Relief Act (12 U.S.C. 2708(b)) is

8 amended by striking ‘‘September 30, 1977’’ and inserting

9 ‘‘September 30, 1996’’.

10 (e) NOTIFICATION.—Section 110 of the Emergency

11 Homeowners’ Relief Act (12 U.S.C. 2709) is amended—

12 (1) in paragraph (1) of the 1st sentence—

13 (A) by striking ‘‘October 1, 1977’’ and in14 serting ‘‘September 30, 1996’’; and

15 (B) by inserting ‘‘single family’’ before ‘‘res16 idential’’;

17 (2) in paragraph (2) of the 1st sentence, by strik18 ing ‘‘until one year from the date of the enactment of

19 this title’’ and inserting ‘‘during fiscal years 1995

20 and 1996’’; and

21 (3) in the 2d sentence, by striking ‘‘Federal

22 Home Loan Bank Board, the Federal Savings and

23 Loan Insurance Corporation’’ and inserting ‘‘Office of

24 Thrift Supervision’’.
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1 (f) REPORTS.—Section 111 of the Emergency Home2 owners’ Relief Act (12 U.S.C. 2710) is amended—

3 (1) by striking ‘‘Within’’ and all that follows

4 through ‘‘Congress on’’ and inserting the following:

5 ‘‘For fiscal year 1995 and each fiscal year thereafter

6 that begins before the date in section 109(b), the Sec7 retary shall submit a report under this section to the

8 Congress. The report for a fiscal year shall be submit9 ted not later than 60 days after the end of the fiscal

10 year and shall describe’’;

11 (2) by striking ‘‘purposes’’ and inserting ‘‘pur12 pose’’;

13 (3) by inserting ‘‘and’’ before ‘‘(4)’’; and

14 (4) by striking ‘‘; and (5)’’ and all that follows

15 and inserting a period.

16 Subtitle D—Nonjudicial Fore17 closure of Defaulted Single Fam18 ily Mortgages

19 SEC. 481. SHORT TITLE.

20 This subtitle may be cited as the ‘‘Single Family Mort21 gage Foreclosure Act of 1994’’.

22 SEC. 482. FINDINGS AND PURPOSE.

23 (a) FINDINGS.—The Congress finds that—

24 (1) disparate State laws under which mortgages

25 are foreclosed on behalf of the Secretary of Housing
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1 and Urban Development covering one- to four-family

2 residential properties burden certain programs ad3 ministered by the Secretary, increase the costs of col4 lecting these obligations, and cause detriment to the

5 community generally;

6 (2) long periods to complete the foreclosure of

7 these mortgages under certain State laws lead to dete8 rioration in the condition of the properties involved;

9 necessitate substantial Federal holding expenditures;

10 increase the risk of vandalism, fire loss, depreciation,

11 damage, and waste with respect to the properties; and

12 adversely affect the neighborhoods in which the prop13 erties are located;

14 (3) these conditions seriously impair the Sec15 retary’s ability to protect the Federal financial inter16 est in the affected properties and frustrate attainment

17 of the objectives of the underlying Federal program

18 authority;

19 (4) the availability of a uniform and more expe20 ditious procedure, with no right of redemption in the

21 mortgagor or others, for the foreclosure of these mort22 gages by the Secretary will tend to ameliorate these

23 conditions; and

24 (5) providing the Secretary with a nonjudicial

25 foreclosure procedure will reduce unnecessary litiga-
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1 tion by removing many foreclosures from the courts

2 where they contribute to overcrowded calendars.

3 (b) PURPOSE.—The purpose of this subtitle is to create

4 a uniform Federal foreclosure remedy for single family

5 mortgages that (1) are held by the Secretary of Housing

6 and Urban Development pursuant to title I or title II of

7 the National Housing Act or (2) secure loans obligated by

8 the Secretary under section 312 of the Housing Act of 1964.

9 SEC. 483. DEFINITIONS.

10 As used in this subtitle—

11 (1) the term ‘‘bona fide purchaser’’ means a pur12 chaser for value in good faith and without notice of

13 any adverse claim, who will, therefore, acquire the se14 curity property free of any adverse claim;

15 (2) the term ‘‘mortgage’’ means a deed of trust,

16 mortgage, deed to secure debt, security agreement, or

17 any other form of instrument under which any inter18 est in property, real, personal or mixed, or any inter19 est in property including leaseholds, life estates, rever20 sionary interests, and any other estates under appli21 cable State law, is conveyed in trust, mortgaged, en22 cumbered, pledged, or otherwise rendered subject to a

23 lien for the purpose of securing the payment of money

24 or the performance of an obligation;
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1 (3) the term ‘‘single family mortgage’’ means a

2 mortgage that covers property on which there is lo3 cated a one- to four-family residence, which mort4 gage—

5 (A) is held by the Secretary pursuant to

6 title I or title II of the National Housing Act,

7 or

8 (B) secures a loan obligated by the Sec9 retary under section 312 of the Housing Act of

10 1964, as it existed before its repeal by section

11 289 of the Cranston-Gonzalez National Afford12 able Housing Act (except that a mortgage secur13 ing such a loan that covers property containing

14 non-residential space and a one- to four-family

15 dwelling shall not be subject to this Act);

16 (4) the term ‘‘mortgage agreement’’ means the

17 note or debt instrument and the mortgage instrument,

18 deed of trust instrument, trust deed, or instrument or

19 instruments creating the mortgage, including any in20 strument incorporated by reference therein and any

21 instrument or agreement amending or modifying any

22 of the foregoing;

23 (5) the term ‘‘mortgagor’’ means the obligor,

24 grantor, or trustor named in the mortgage agreement

25 and, unless the context otherwise indicates, includes
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1 the current owner of record of the security property

2 whether or not personally liable on the mortgage debt;

3 (6) the term ‘‘owner’’ means any person who has

4 an ownership interest in property and includes heirs,

5 devisees, executors, administrators, and other personal

6 representatives, and trustees of testamentary trusts if

7 the owner of record is deceased;

8 (7) the term ‘‘person’’ includes any individual,

9 group of individuals, association, partnership, cor10 poration, or organization;

11 (8) the terms ‘‘record’’ and ‘‘recorded’’ include

12 ‘‘register’’ and ‘‘registered’’ in the instance of reg13 istered land;

14 (9) the term ‘‘security property’’ means the prop15 erty (real, personal or mixed) or an interest in prop16 erty (including leaseholds, life estates, reversionary

17 interests, and any other estates under applicable

18 State law), together with fixtures and other interests

19 subject to the lien of the mortgage under applicable

20 State law;

21 (10) the term ‘‘State’’ means the several States,

22 the District of Columbia, the Commonwealth of Puer23 to Rico, the United States Virgin Islands, Guam,

24 American Samoa, the Northern Mariana Islands, the
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1 Trust Territory of the Pacific Islands, and Indian

2 tribes as defined by the Secretary;

3 (11) the term ‘‘county’’ means county as defined

4 in section 2 of title I, United States Code; and

5 (12) the term ‘‘Secretary’’ means the Secretary of

6 Housing and Urban Development.

7 SEC. 484. APPLICABILITY.

8 Single family mortgages encumbering real estate lo9 cated in any State may be foreclosed by the Secretary in

10 accordance with this subtitle, or pursuant to other fore11 closure procedures available, at the option of the Secretary.

12 SEC. 485. DESIGNATION OF FORECLOSURE COMMISSIONER.

13 A foreclosure commissioner or commissioners des14 ignated pursuant to this subtitle shall have a nonjudicial

15 power of sale as provided in this subtitle. Where the Sec16 retary wishes to foreclose upon a single family mortgage,

17 the Secretary may designate a foreclosure commissioner

18 and, with or without cause, may designate a substitute fore19 closure commissioner to replace a previously designated

20 foreclosure commissioner, by executing a duly acknowl21 edged, written designation stating the name and business

22 or residential address of the commissioner or substitute

23 commissioner. The designation shall be effective upon execu24 tion. The foreclosure commissioner, if a natural person,

25 shall be a resident of the State in which the security prop-
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1 erty is located and, if not a natural person, the foreclosure

2 commissioner must be duly authorized to transact business

3 under the laws of the State in which the security property

4 is located. The foreclosure commissioner shall be a person

5 who is responsible, financially sound, and competent to con6 duct the foreclosure. More than one foreclosure commissioner

7 may be designated. If a natural person is designated as

8 foreclosure commissioner or substitute foreclosure commis9 sioner, such person shall be designated by name, except that

10 where such person is designated in his or her capacity as

11 an official or employee of a government or corporate entity,

12 such person may be designated by his or her unique title

13 or position instead of by name.

14 SEC. 486. PREREQUISITES TO FORECLOSURE.

15 Foreclosure by the Secretary under this subtitle of a

16 single family mortgage may be commenced, as provided in

17 section 488, upon the breach of a covenant or condition in

18 the mortgage agreement for which foreclosure is authorized

19 under the mortgage, except that no such foreclosure may

20 be commenced unless any previously pending proceeding,

21 judicial or nonjudicial, separately instituted by the Sec22 retary to foreclose the mortgage other than under this sub23 title has been withdrawn, dismissed, or otherwise termi24 nated. No such separately instituted foreclosure proceeding

25 on the mortgage shall be instituted by the Secretary during
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1 the pendency of foreclosure pursuant to this subtitle. Noth2 ing in this subtitle shall preclude the Secretary from enforc3 ing any right, other than foreclosure, under applicable Fed4 eral or State law, including any right to obtain a monetary

5 judgment. Nothing in this subtitle shall preclude the Sec6 retary from foreclosing under this subtitle where the Sec7 retary has obtained or is seeking any other remedy avail8 able pursuant to Federal or State law or under the mort9 gage agreement, including, but not limited to, the appoint10 ment of a receiver, mortgagee-in-possession status, or relief

11 under an assignment of rents.

12 SEC. 487. NOTICE OF FORECLOSURE SALE.

13 The notice of foreclosure sale to be served in accordance

14 with this subtitle shall be subscribed with the name and

15 address of the foreclosure commissioner and the date on

16 which subscribed, and shall set forth the following informa17 tion:

18 (1) The names of the Secretary, the original

19 mortgagee (if other than the Secretary), and the origi20 nal mortgagor.

21 (2) The street address or a description of the lo22 cation of the security property, and a description of

23 the security property, sufficient to identify the prop24 erty to be sold.
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1 (3) The date of the mortgage, the office in which

2 the mortgage is recorded, and the liber and folio or

3 other description of the location of recordation of the

4 mortgage.

5 (4) The failure to make payment, including the

6 due date of the earliest installment payment remain7 ing wholly unpaid as of the date the notice is sub8 scribed, or the description of other default or defaults

9 upon which foreclosure is based, and the acceleration

10 of the secured indebtedness.

11 (5) The date, time, and place of the foreclosure

12 sale.

13 (6) A statement that the foreclosure is being con14 ducted pursuant to this subtitle.

15 (7) The types of costs, if any, to be paid by the

16 purchaser upon transfer of title.

17 (8) The amount and method of deposit to be re18 quired at the foreclosure sale (except that no deposit

19 shall be required of the Secretary), the time and meth20 od of payment of the balance of the foreclosure pur21 chase price, and other appropriate terms of sale.

22 SEC. 488. COMMENCEMENT OF FORECLOSURE.

23 (a) REQUEST.—If the Secretary as holder of a single

24 family mortgage determines that the prerequisites to fore25 closure set forth in section 486 are satisfied, the Secretary
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1 may request the foreclosure commissioner to commence fore2 closure of a single family mortgage. Upon such request, the

3 foreclosure commissioner shall commence foreclosure of the

4 mortgage, by commencing service of a notice of default and

5 foreclosure sale in accordance with section 489.

6 (b) SUBSTITUTE COMMISSIONER.—After commence7 ment of a foreclosure under this subtitle, the Secretary may

8 designate a substitute foreclosure commissioner at any time

9 before the time of foreclosure sale, and the foreclosure shall

10 continue without prejudice, unless the substitute commis11 sioner, in his or her sole discretion, finds that continuation

12 of the foreclosure sale will unfairly affect the interests of

13 the mortgagor. If the substitute commissioner makes such

14 a finding, the substitute commissioner shall cancel the fore15 closure sale, or adjourn such sale in the manner provided

16 in section 491(c). Upon designation of a substitute fore17 closure commissioner, a copy of the written notice of such

18 designation referred to in section 485 shall be served (1)

19 by mail, as provided in such section 489 (except that the

20 minimum time periods between mailing and the date of

21 foreclosure sale prescribed in such section shall not apply),

22 or (2) in any other manner which, in the substitute commis23 sioner’s sole discretion, is conducive to achieving timely no24 tice of such substitution.
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1 SEC. 489. SERVICE OF NOTICE OF FORECLOSURE.

2 The foreclosure commissioner shall serve the notice of

3 foreclosure sale provided for in section 487 upon the follow4 ing persons and in the following manner, and no additional

5 notice shall be required to be served, notwithstanding any

6 notice requirements of any State or local law:

7 (1) TIMING.—At least 45 days prior to the date

8 of the foreclosure sale, the notice of foreclosure sale re9 quired by section 488 of this subtitle shall be filed in

10 the manner authorized for filing a notice of an action

11 concerning real property according to the law of the

12 State where the security property is located or, if

13 none, in the manner authorized by section 3201 of

14 title 28, United States Code.

15 (2) NOTICE BY MAIL.—The notice of foreclosure

16 sale shall be sent by certified or registered mail, post17 age prepaid and return receipt requested to the fol18 lowing:

19 (A) The current security property owner of

20 record, as the record exists 60 days before the

21 date originally set for foreclosure sale, whether or

22 not the notice describes a sale adjourned as pro23 vided in this subtitle.

24 (B) All mortgagors of record or other per25 sons who appear of record or in the mortgage

26 agreement to be liable for part or all of the mort-
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1 gage debt, as the record exists 60 days before the

2 date originally set for foreclosure sale, whether or

3 not the notice describes a sale adjourned as pro4 vided in this subtitle, except any such mortga5 gors or persons who have been released.

6 (C) All dwelling units in the security prop7 erty, whether or not the notice describes a sale

8 adjourned as provided in this subtitle.

9 (D) All persons holding liens of record upon

10 the security property, as the record exists 60

11 days before the date originally set for foreclosure

12 sale, whether or not the notice describes a sale

13 adjourned as provided in this subtitle.

14 Notice under subparagraphs (A) and (B) of this para15 graph shall be mailed at least 45 days before the date

16 of foreclosure sale, and shall be mailed to the owner

17 or mortgagor at the last known address of the owner

18 or mortgagor, or, if none, to the address of the secu19 rity property, or, at the discretion of the foreclosure

20 commissioner, to any other address believed to be that

21 of such owner or mortgagor. Notice under subpara22 graph (C) of this paragraph shall be mailed at least

23 45 days before the date of foreclosure sale. If the

24 names of the occupants of the security property are

25 not known to the Secretary, or the security property
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1 has more than one dwelling, the notice shall be posted

2 at the security property at least 45 days prior to the

3 foreclosure sale. Notice under subparagraph (D) of

4 this paragraph shall be mailed at least 45 days before

5 the date of foreclosure sale, and shall be mailed to

6 each such lienholder’s address as stated of record or,

7 at the discretion of the foreclosure commissioner, to

8 any other address believed to be that of such

9 lienholder. Notice by mail pursuant to this subsection

10 or section 488(b) shall be deemed duly given upon

11 mailing, whether or not received by the addressee and

12 whether or not a return receipt is received or the let13 ter is returned.

14 (3) PUBLICATION.—A copy of the notice of de15 fault and foreclosure sale shall be published, as pro16 vided herein, once a week during three successive cal17 endar weeks before the sale date. Such publication

18 shall be in a newspaper or newspapers having general

19 circulation in the county or counties in which the se20 curity property being sold is located. To the extent

21 practicable, the newspaper or newspapers chosen shall

22 be a newspaper or newspapers, if any is available,

23 having circulation conducive to achieving notice of

24 foreclosure by publication. A legal newspaper that is

25 accepted as a newspaper of legal record in the county
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1 or counties in which the security property being sold

2 is located shall be considered a newspaper having gen3 eral circulation for the purposes of this paragraph.

4 Should there be no newspaper published at least week5 ly which has a general circulation in one of the coun6 ties in which the security property being sold is lo7 cated, copies of the notice of default and foreclosure

8 sale shall be posted at the courthouse of any county

9 or counties in which the security property is located

10 and at the place where the sale is to be held at least

11 21 days before the date of sale.

12 SEC. 490. PRESALE REINSTATEMENT.

13 (a) IN GENERAL.—Except as provided in sections

14 488(b) and 491(c), the foreclosure commissioner shall with15 draw the security property from foreclosure and cancel the

16 foreclosure sale only if—

17 (1) the Secretary so directs the commissioner

18 prior to or at the time of sale;

19 (2) the commissioner finds, upon application of

20 the mortgagor at least three days before the date of

21 sale, that the default or defaults upon which the fore22 closure is based did not exist at the time of service of

23 the notice of default and foreclosure sale; or

24 (3)(A) in the case of a foreclosure involving a

25 monetary default, there is tendered to the foreclosure
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1 commissioner before public auction is completed the

2 entire amount of principal and interest which would

3 be due if payments under the mortgage had not been

4 accelerated;

5 (B) in the case of a foreclosure involving a

6 nonmonetary default, the foreclosure commissioner,

7 upon application of the mortgagor before the date of

8 foreclosure sale, finds that such default is cured; and

9 (C) there is tendered to the foreclosure commis10 sioner before public auction is completed all amounts

11 due under the mortgage agreement (excluding addi12 tional amounts which would have been due if mort13 gage payments had been accelerated), all amounts of

14 expenditures secured by the mortgage, and all costs of

15 foreclosure incurred for which payment from the pro16 ceeds of foreclosure is provided in section 492, except

17 that the Secretary shall have discretion to refuse to

18 cancel a foreclosure pursuant to this paragraph if the

19 current mortgagor or owner of record has on one or

20 more previous occasions caused a foreclosure of the

21 mortgage, commenced pursuant to this subtitle or oth22 erwise, to be canceled by curing a default.

23 (b) OPPORTUNITY TO SECRETARY.—Before withdraw24 ing the security property from foreclosure in the cir25 cumstances described in subsection (a)(2) or (a)(3), the fore-
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1 closure commissioner shall afford the Secretary a reasonable

2 opportunity to demonstrate why the security property

3 should not be so withdrawn.

4 (c) EFFECT ON MORTGAGE.—In any case in which a

5 foreclosure commenced under this subtitle is canceled, the

6 mortgage shall continue in effect as though acceleration had

7 not occurred.

8 (d) EFFECT ON SUBSEQUENT FORECLOSURE.—If the

9 foreclosure commissioner cancels a foreclosure sale under

10 this subtitle a new foreclosure may be subsequently com11 menced as provided in this subtitle.

12 (e) NOTICE OF CANCELLATION.—The foreclosure com13 missioner shall file a notice of cancellation in the same

14 place and manner provided for filing the notice of fore15 closure sale in section 489.

16 SEC. 491. CONDUCT OF SALE AND ADJOURNMENT.

17 (a) TIME AND LOCATION.—Foreclosure sale pursuant

18 to this subtitle shall be at public auction, and shall be sched19 uled to begin between the hours of 9 a.m. and 4 p.m. local

20 time. The foreclosure sale shall be held at a location speci21 fied in the notice of default and foreclosure sale, which shall

22 be a location where foreclosure real estate auctions are cus23 tomarily held in the county or one of the counties in which

24 the property to be sold is located, or at a courthouse therein,

25 or at or on the property to be sold. Sale of security property
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1 situated in two or more counties may be held in any one

2 of the counties in which any part of the security property

3 is situated. The foreclosure commissioner may designate the

4 order in which multiple tracts of security are sold.

5 (b) SALE PROCEDURES.—The foreclosure commis6 sioner shall conduct the foreclosure sale in accordance with

7 the provisions of this subtitle and in a manner fair to both

8 the mortgagor and the Secretary. Written one-price sealed

9 bids shall be accepted by the foreclosure commissioner from

10 the Secretary and other persons for entry by announcement

11 by the commissioner at the sale. The Secretary and any

12 other person may bid at the foreclosure sale, including the

13 Secretary or any other person who has submitted a written

14 one-price bid. The foreclosure commissioner or any relative,

15 related business entity, or employee of such commissioner

16 or entity shall not be permitted to bid in any manner on

17 the security property subject to foreclosure sale, except that

18 the foreclosure commissioner or an auctioneer may be di19 rected by the Secretary to enter a bid on the Secretary’s

20 behalf. The foreclosure commissioner may serve as auc21 tioneer, or, in accordance with regulations of the Secretary,

22 may employ an auctioneer to be paid from the commission

23 provided for in section 492(5).

24 (c) ADJOURNMENT OR CANCELLATION.—The fore25 closure commissioner shall have discretion, prior to or at
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1 the time of sale to adjourn or cancel the foreclosure sale

2 if the commissioner determines, in the commissioner’s dis3 cretion, that circumstances are not conducive to a sale

4 which is fair to the mortgagor and the Secretary or that

5 additional time is necessary to determine whether the secu6 rity property should be withdrawn from foreclosure as pro7 vided in section 490. The foreclosure commissioner may ad8 journ a sale to a later hour the same day by announcing

9 or posting the new time and place of the foreclosure sale,

10 or may adjourn the foreclosure sale for not less than 9 nor

11 more than 31 days, in which case the commissioner shall

12 serve a notice of default and foreclosure sale revised to recite

13 that the foreclosure sale has been adjourned to a specified

14 date and to include any corrections the foreclosure commis15 sioner deems appropriate. Such notice shall be served by

16 publication and mailing in accordance with section 489,

17 except that publication may be made on any of 3 separate

18 days before the revised date of foreclosure sale, and mailing

19 may be made at any time at least 7 days before the date

20 to which the foreclosure sale has been adjourned.

21 (d) DEPOSIT.—The foreclosure commissioner may re22 quire a bidder to make a cash deposit in an amount or

23 percentage set by him and stated in the notice of foreclosure

24 sale before the bid is accepted. A successful bidder at the

25 foreclosure sale who fails to comply with the terms of the
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1 sale may be required to forfeit the cash deposit or, at the

2 election of the foreclosure commissioner after consultation

3 with the Secretary, shall be liable to the agency for any

4 costs incurred by the agency as a result of such failure.

5 (e) PRESUMPTION.—Any foreclosure sale held in ac6 cordance with this subtitle shall be conclusively presumed

7 to have been conducted in a legal, fair, and reasonable man8 ner. The sale price shall be conclusively presumed to be rea9 sonable and equal to the fair market value of the property.

10 SEC. 492. FORECLOSURE COSTS.

11 The following foreclosure costs shall be paid from the

12 sale proceeds before satisfaction of any other claim to such

13 sale proceeds:

14 (1) Necessary advertising costs and postage in15 curred in giving notice pursuant to sections 489 and

16 491.

17 (2) Mileage for posting notices and for the fore18 closure commissioner’s or auctioneer’s attendance at

19 the sale as provided in section 1921 of title 28,

20 United States Code, for mileage by the most reason21 able road distance.

22 (3) Reasonable and necessary costs actually in23 curred in connection with any necessary search of

24 title and lien records.
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1 (4) Necessary out-of-pocket costs incurred by the

2 foreclosure commissioner to record documents.

3 (5) A commission for the foreclosure commis4 sioner other than an employee of the United States for

5 the conduct of the foreclosure to the extent authorized

6 by the Secretary.

7 SEC. 493. DISPOSITION OF SALE PROCEEDS.

8 Money realized from a foreclosure sale shall be made

9 available for obligation and expenditure—

10 (1) first, to cover the costs of foreclosure provided

11 for in section 492;

12 (2) then, to pay valid tax liens or assessments if

13 required by the notice of foreclosure sale;

14 (3) then, to pay any liens recorded before the re15 cording of the mortgage which are required to be paid

16 in conformity with the terms of sale in the notice of

17 foreclosure sale;

18 (4) then, to service charges and advances for

19 taxes, assessments, and property insurance premiums;

20 (5) then, to the interest;

21 (6) then, to the principal balance secured by the

22 mortgage (including expenditures for the necessary

23 protection, preservation, and repair of the security

24 property as authorized under the mortgage agreement
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1 and interest thereon if provided for in the mortgage

2 agreement); and

3 (7) then, to late charges.

4 Any surplus after payment of the foregoing shall be paid

5 to holders of liens recorded after the mortgage in the order

6 of priority under Federal law or the law of the State where

7 the security property is located and then to the appropriate

8 mortgagor. If the person to whom such surplus is to be paid

9 cannot be located, or if the surplus available is insufficient

10 to pay all claimants and the claimants cannot agree on

11 the allocation of the surplus, or if any person claiming an

12 interest in the mortgage proceeds does not agree that some

13 or all of the sale proceeds should be paid to a claimant as

14 provided in this section, that part of the sale proceeds in

15 question may be deposited by the foreclosure commissioner

16 with an appropriate official or court authorized under law

17 to receive disputed funds in such circumstances. If such a

18 procedure for the deposit of disputed funds is not available,

19 and the foreclosure commissioner files a bill of interpleader

20 or is sued as a stakeholder to determine entitlement to such

21 funds, the foreclosure commissioner’s necessary costs in tak22 ing or defending such action shall be deductible from the

23 disputed funds.
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1 SEC. 494. TRANSFER OF TITLE AND POSSESSION.

2 (a) DELIVERY OF DEED.—The foreclosure commis3 sioner shall deliver a deed or deeds to the purchaser or pur4 chasers without warranty or covenants to the purchaser or

5 purchasers and obtain the balance of the purchase price in

6 accordance with the terms of sale provided in the notice of

7 default and foreclosure sale. Notwithstanding State law to

8 the contrary, the commissioner’s deed shall be a conveyance

9 of property, and no judicial proceeding shall be required

10 ancillary or supplementary to the procedures provided in

11 this subtitle to assure the validity of the conveyance or con12 firmation of such conveyance.

13 (b) POSSESSION.—A purchaser at a foreclosure sale

14 held pursuant to this subtitle shall be entitled to possession

15 upon passage of title to the mortgaged property, subject to

16 an interest or interests not barred under section 496. Any

17 person remaining in possession after the passage of title

18 shall be deemed a tenant at sufferance subject to eviction

19 under local law.

20 (c) DEATH OF PURCHASER.—If a purchaser dies before

21 execution and delivery of the deed conveying the property

22 to the purchaser, the foreclosure commissioner shall execute

23 and deliver the deed to the representative of the purchaser’s

24 estate upon payment of the purchase price in accordance

25 with the terms of sale. Such delivery to the representative
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1 of the purchaser’s estate shall have the same effect as if ac2 complished during the lifetime of the purchaser.

3 (d) BONA FIDE PURCHASER.—The purchaser of prop4 erty under this subtitle shall be presumed to be a bona fide

5 purchaser without notice of defects, if any, in the title con6 veyed to said purchaser if the purchaser would have been

7 considered a bona fide purchaser without notice had the sale

8 been made voluntarily and in person by the debtor.

9 (e) NULLIFICATION OF RIGHT OF REDEMPTION.—

10 There shall be no right of redemption, or right of possession

11 based upon right of redemption, in the mortgagor or others

12 subsequent to a foreclosure pursuant to this subtitle. Section

13 204(l) of the National Housing Act and section 701 of the

14 Department of Housing and Urban Development Reform

15 Act of 1989 shall not apply to mortgages foreclosed under

16 this subtitle.

17 (f) TAX.—When conveyance is made to the Secretary,

18 no tax shall be imposed or collected with respect to the fore19 closure commissioner’s deed, whether as a tax upon the in20 strument or upon the privilege of conveying or transferring

21 title to the property. Failure to collect or pay a tax of the

22 type and under the circumstances stated in the preceding

23 sentence shall not be grounds for refusing to record such

24 a deed, for failing to recognize such recordation as impart-
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1 ing notice, or for denying the enforcement of such a deed

2 and its provisions in any State or Federal court.

3 SEC. 495. RECORD OF FORECLOSURE AND SALE.

4 (a) RECORD.—To establish a sufficient record of fore5 closure and sale, the foreclosure commissioner shall include

6 in the recitals of the deed to the purchaser or prepare an

7 affidavit or addendum to the deed stating—

8 (1) the date, time and place of sale;

9 (2) that the mortgage was held by the Secretary,

10 the date of the mortgage, the office in which the mort11 gage was recorded, and the liber and folio or other de12 scription of the recordation of the mortgage;

13 (3) the particulars of the foreclosure commis14 sioner’s service of notice of default and foreclosure sale

15 in accordance with sections 489 and 491;

16 (4) the date and place of filing the notice of fore17 closure sale;

18 (5) that the foreclosure was conducted in accord19 ance with the provisions of this subtitle and with the

20 terms of the notice of default and foreclosure sale; and

21 (6) the sale amount.

22 (b) EFFECT OF STATEMENTS.—The statements set

23 forth in subsection (a) shall be prima facie evidence of the

24 truth of such recitals and statement of facts in any Federal

25 or State court; and shall be a conclusive presumption in
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1 favor of bona fide purchasers and encumbrancers for value

2 without notice. Encumbrancers for value include liens

3 placed by lenders who provide the purchaser with purchase

4 money in exchange for a security interest in the newly-con5 veyed property.

6 (c) RECORDATION.—The deed executed by the fore7 closure commissioner, the foreclosure commissioner’s affida8 vit and any other instruments submitted for recordation in

9 relation to the foreclosure of the security property under this

10 subtitle shall be accepted for recordation by the registrar

11 of deeds or other appropriate official of the county or coun12 ties in which the security property is located upon ten13 dering of payment of the usual recording fees for such in14 struments without regard to the compliance of those instru15 ments with local filing requirements.

16 SEC. 496. EFFECT OF SALE.

17 A sale, made and conducted as prescribed in this sub18 title to a bona fide purchaser, shall be an entire bar of all

19 claims upon, or with respect to, the property sold, of each

20 of the following persons:

21 (1) Any person to whom the notice of foreclosure

22 sale was mailed as provided in this subtitle, and the

23 heir, devisee, executor, administrator, successor or as24 signee claiming under any such person.
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1 (2) Any person claiming any interest in the

2 property subordinate to that of the mortgage, if such

3 person had actual knowledge of the sale.

4 (3) Each person, claiming any interest in the

5 property, whose assignment, mortgage, or other con6 veyance was not duly recorded or filed in the proper

7 place for recording or filing, or whose judgment or de8 cree was not duly docketed or filed in the proper place

9 for docketing or filing, prior to the date on which the

10 notice of sale was first served by publication, as re11 quired by section 489(2); and the executor, adminis12 trator, or assignee of such a person.

13 (4) Every other person claiming under a statu14 tory lien or encumbrance created subsequent to the re15 cording or filing of the mortgage being foreclosed, at16 taching to the title or interest of any person des17 ignated in any of the foregoing subsections of this sec18 tion.

19 SEC. 497. COMPUTATION OF TIME.

20 Periods of time provided for in this subtitle shall be

21 calculated in consecutive calendar days including the day

22 or days on which the actions or events occur or are to occur

23 for which the period of time is provided and including the

24 day on which an event occurs or is to occur from which

25 the period is to be calculated.
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1 SEC. 498. SEPARABILITY.

2 If any clause, sentence, paragraph, or part of this sub3 title shall, for any reason, be adjudged by a court of com4 petent jurisdiction to be invalid or invalid as applied to

5 a class of cases, such judgment shall not affect, impair, or

6 invalidate the remainder thereof and of this subtitle, but

7 shall be confined in its operation to the clause, sentence,

8 paragraph, or part thereof directly involved in the con9 troversy in which such judgment shall have been rendered.

10 SEC. 499. DEFICIENCY JUDGMENT.

11 (a) IN GENERAL.—If after deducting the disburse12 ments provided for in section 493 of this subtitle, the price

13 at which the security property is sold at a foreclosure sale

14 is less than the unpaid balance of the debt secured by the

15 security property, resulting in a deficiency, the Secretary

16 may refer the matter to the Attorney General who may com17 mence an action or actions against any or all debtors to

18 recover the deficiency, unless specifically prohibited by the

19 mortgage. The United States is also entitled to recover any

20 amount authorized by section 3011 of title 28, United

21 States Code, and costs of the action.

22 (b) LIMITATION.—Any action commenced to recover

23 the deficiency must be brought within 6 years of the last

24 sale of the security property.
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1 TITLE V—RURAL HOUSING

2 SEC. 501. PROGRAM AUTHORIZATIONS.

3 (a) INSURANCE AND GUARANTEE AUTHORITY.—Sec4 tion 513(a) of the Housing Act of 1949 (42 U.S.C. 1483(a))

5 is amended to read as follows:

6 ‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—

7 ‘‘(1) IN GENERAL.—The Secretary may, to the

8 extent approved in appropriation Acts, insure and

9 guarantee loans under this title during fiscal years

10 1995 and 1996, in aggregate amounts not to exceed

11 $3,231,103,950 and $3,360,037,069, respectively, as

12 follows:

13 ‘‘(A) For insured or guaranteed loans under

14 section 502 on behalf of low-income borrowers re15 ceiving assistance under section 521(a)(1),

16 $1,802,500,000 for fiscal year 1995 and

17 $1,856,575,000 for fiscal year 1996.

18 ‘‘(B) For guaranteed loans under section

19 502(h) on behalf of low- and moderate-income

20 borrowers, $772,500,000 for fiscal year 1995 and

21 $795,675,000 for fiscal year 1996.

22 ‘‘(C) For loans under section 504,

23 $36,050,000 for fiscal year 1995 and $37,131,500

24 for fiscal year 1996.
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1 ‘‘(D) For insured loans under section 514,

2 $18,053,950 for fiscal year 1995 and $18,595,569

3 for fiscal year 1996.

4 ‘‘(E) For insured loans under section 515,

5 $600,000,000 for fiscal year 1995 and

6 $650,000,000 for fiscal year 1996.

7 ‘‘(F) For loans under section 523(b)(1)(B),

8 $1,000,000 for fiscal year 1995 and $1,030,000

9 for fiscal year 1996.

10 ‘‘(G) For site loans under section 524,

11 $1,000,000 for fiscal year 1995 and $1,030,000

12 for fiscal year 1996.

13 ‘‘(2) LIMITATION ON USE.—Notwithstanding any

14 other provision of law, insured or guaranteed loan

15 authority in this title for any fiscal year shall not be

16 transferred or used for any purpose not specified in

17 this title.’’.

18 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

19 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b)) is

20 amended to read as follows:

21 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated for fiscal years 1995 and

23 1996, and to remain available until expended, the following

24 amounts:
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1 ‘‘(1) For grants under section 502(c)(5)(C)(i),

2 $10,000,000 for fiscal year 1995, and $10,000,000 for

3 fiscal year 1996.

4 ‘‘(2) For grants under section 504, $31,000,000

5 for fiscal year 1995 and $31,930,000 for fiscal year

6 1996.

7 ‘‘(3) For purposes of section 509(c), $1,000,000

8 for fiscal year 1995 and $1,030,000 for fiscal year

9 1996.

10 ‘‘(4) For project preparation grants under sec11 tion 509(f)(6), $5,688,278 for fiscal year 1995 and

12 $5,858,926 for fiscal year 1996.

13 ‘‘(5) In fiscal years 1995 and 1996, such sums

14 as may be necessary to meet payments on notes or

15 other obligations issued by the Secretary under section

16 511 equal to—

17 ‘‘(A) the aggregate of the contributions

18 made by the Secretary in the form of credits on

19 principal due on loans made pursuant to section

20 503; and

21 ‘‘(B) the interest due on a similar sum rep22 resented by notes or other obligations issued by

23 the Secretary.
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1 ‘‘(6) For grants for service coordinators under

2 section 515(y), $1,073,260 for fiscal year 1995 and

3 $1,105,458 for fiscal year 1996.

4 ‘‘(7) For financial assistance under section

5 516—

6 ‘‘(A) for low-rent housing and related facili7 ties for domestic farm labor under subsections

8 (a) through (j) of such section, $15,000,000 for

9 fiscal year 1995 and $18,000,000 for fiscal year

10 1996; and

11 ‘‘(B) for housing for rural homeless and mi12 grant farmworkers under subsection (k) of such

13 section, $10,269,230 for fiscal year 1995 and

14 $11,407,307 for fiscal year 1996.

15 ‘‘(8) For grants under section 523(f),

16 $14,918,314 for fiscal year 1995 and $15,365,863 for

17 fiscal year 1996.

18 ‘‘(9) For grants under section 533, $33,056,408

19 for fiscal year 1993 and $34,048,100 for fiscal year

20 1994.

21 ‘‘(10) For grants under section 538, $10,000,000

22 for fiscal year 1995, which shall remain available

23 until the end of fiscal year 1997.
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1 ‘‘(11) For assistance under section 539,

2 $10,000,000 for fiscal year 1995 and $12,000,000 for

3 fiscal year 1996.’’.

4 (c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—Sec5 tion 513(c) of the Housing Act of 1949 (42 U.S.C.

6 1483(c)(1)) is amended by striking ‘‘(c)’’ and all that fol7 lows through the end of paragraph (1) and inserting the

8 following:

9 ‘‘(c) RENTAL AND OPERATING ASSISTANCE.—(1) The

10 Secretary, to the extent approved in appropriations Acts

11 for fiscal years 1995 and 1996, may enter into rental assist12 ance payment contracts under section 521(a)(2)(A) and

13 contracts for operating assistance under section 521(a)(5),

14 aggregating $454,079,620 for fiscal year 1995 and

15 $467,702,009 for fiscal year 1996.’’.

16 (d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT

17 CONTRACTS.—Section 513(d) of the Housing Act of 1949

18 (42 U.S.C. 1483(d)) is amended to read as follows:

19 ‘‘(d) SUPPLEMENTAL RENTAL ASSISTANCE CON20 TRACTS.—The Secretary, to the extent approved in appro21 priations Acts for fiscal years 1995 and 1996, may enter

22 into 5-year supplemental rental assistance contracts under

23 section 502(c)(5)(D) aggregating $13,070,160 for fiscal year

24 1995 and $13,462,265 for fiscal year 1996.’’.
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1 (e) RURAL HOUSING VOUCHER AUTHORITY.—Section

2 513(e) of the Housing Act of 1949 (42 U.S.C. 1483(e)) is

3 amended to read as follows:

4 ‘‘(e) RURAL HOUSING VOUCHERS.—There are author5 ized to be appropriated for rural housing vouchers under

6 section 542, $30,000,000 for fiscal year 1995 and

7 $40,000,000 for fiscal year 1996.’’.

8 (f) RENTAL HOUSING LOAN AUTHORITY.—Section

9 515(b) of the Housing Act of 1949 (42 U.S.C. 1485(b)) is

10 amended—

11 (1) by striking paragraph (4); and

12 (2) by redesignating paragraphs (5) and (6) as

13 paragraphs (4) and (5), respectively.

14 SEC. 502. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL

15 HOUSING PROGRAMS.

16 Section 501(b)(6) of the Housing Act of 1949 (42

17 U.S.C. 1471(b)(6)) is amended by adding at the end the

18 following new sentence: ‘‘In any case in which assistance

19 made available under this title may be provided to a State

20 or State agency or in which a State or State agency is eligi21 ble to participate in a program or activity under this title,

22 such assistance may also be provided to Indian tribes and

23 tribal agencies and Indian tribes and tribal agencies shall

24 be eligible to participate, respectively.’’.
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1 SEC. 503. ESCROW FUND.

2 Section 501(e) of the Housing Act of 1949 (42 U.S.C.

3 1471(e)) is amended by striking the third and fourth sen4 tences and inserting the following: ‘‘The Secretary may es5 tablish in the Treasury of the United States an escrow fund

6 for the deposit of such periodic payments. The Secretary

7 may direct the Secretary of the Treasury to invest and rein8 vest amounts in the escrow fund in public debt securities

9 with maturities suitable for the needs of the escrow fund

10 and bearing interest at rates determined by the Secretary

11 of the Treasury, taking into consideration the current aver12 age market yield on outstanding marketable obligations of

13 the United States of comparable maturities. Any interest

14 earned shall be credited to the escrow fund. The Secretary

15 shall disburse amounts at the appropriate time or times for

16 the purposes for which the amounts were escrowed in the

17 fund. The interest rate to be paid on escrowed amounts shall

18 be determined annually based on the interest earned less

19 an amount not to exceed 1 percent which shall be used for

20 expenses in carrying out the provisions of this title.’’.

21 SEC. 504. SECTION 502 HOMEOWNERSHIP LOANS.

22 (a) REMOTE RURAL AREAS.—Section 502(f) of the

23 Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—

24 (1) by striking paragraph (1);

25 (2) by redesignating paragraph (2) as para26 graph (1); and
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1 (3) by adding at the end the following new para2 graph:

3 ‘‘(2) SECURITY.—In making a loan under this

4 section for housing located in a rural area that is a

5 remote rural area (which shall include tribal allotted

6 or Indian trust land) where the borrower resides or

7 is employed, the Secretary shall consider the actual

8 replacement cost of the property and structure for

9 which the loan is made as adequate security for the

10 loan required under subsection (b).’’.

11 (b) PERMANENT DEFERRED MORTGAGE PROGRAM.—

12 Section 502(g) of the Housing Act of 1949 (42 U.S.C.

13 1472(g)) is amended to read as follows:

14 ‘‘(g) DEFERRED MORTGAGE PROGRAM.—With respect

15 to families or persons otherwise eligible for assistance under

16 subsection (d) but having incomes below the amount deter17 mined to qualify for a loan under this section, the Secretary

18 may defer mortgage payments beyond the amount afford19 able at 1 percent interest, taking into consideration income,

20 taxes and insurance. Deferred mortgage payments shall be

21 converted to payment status when the ability of the bor22 rower to repay improves.’’.

23 (c) REAMORTIZATION.—Section 505 of the Housing

24 Act of 1949 (42 U.S.C. 1475) is amended—
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1 (1) in the section heading, by inserting ‘‘,

2 REAMORTIZATION,’’ after ‘‘MORATORIUM’’;

3 (2) in subsection (a), by inserting before the last

4 sentence the following: ‘‘The Secretary may not fore5 close such a mortgage securing such a loan upon

6 which a moratorium has been granted solely because

7 the borrower does not have the ability to repay the

8 loan. Upon the expiration of a moratorium, the Sec9 retary shall enter into an agreement with the bor10 rower providing to the borrower such assistance as the

11 Secretary is authorized to provide under this title and

12 may foreclose with respect to the loan only if the bor13 rower fails to make 3 monthly payments required

14 under such agreement.’’;

15 (3) by redesignating subsection (b) as subsection

16 (c); and

17 (4) by inserting after subsection (a) the following

18 new subsection:

19 ‘‘(b) REAMORTIZATION.—

20 ‘‘(1) AUTHORITY.—With respect to a loan made

21 under section 502, after a moratorium under sub22 section (a) of this section for the loan or at any other

23 time the Secretary considers appropriate, the Sec24 retary may reamortize the outstanding indebtedness,

25 including principal and interest, under the loan for
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1 a period not to exceed 38 years from the date of the

2 making of the loan, subject to the provisions of para3 graph (2).

4 ‘‘(2) GRADUATED REPAYMENT AGREEMENT.—In

5 reamortizing a loan pursuant to paragraph (1), the

6 Secretary may lower the interest rate to the existing

7 lending rate for loans under section 502 or establish

8 a schedule of payments under the loan that provides,

9 after the application of interest credit, for payments

10 in an amount less than the amount of the payments

11 originally provided for under the loan agreement for

12 a period not exceeding that required to amortize the

13 loan over its term, except that such period may not

14 exceed 3 years.’’.

15 (d) ELIGIBILITY OF AREA.—Section 502 of the Hous16 ing Act of 1949 (42 U.S.C. 1472) is amended by adding

17 at the end the following new subsection:

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

19 make loans under this section for properties in the Pinewest

20 Subdivision, located in Gibsonville, North Carolina, in the

21 same manner as provided under this section for properties

22 in rural areas.’’.

23 SEC. 505. LOAN GUARANTEES.

24 Section 502(h)(11) of the Housing Act of 1949 (42

25 U.S.C. 1472(h)(11)) is amended by adding at the end the
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1 following new sentence: ‘‘The Secretary may not pool or re2 allocate any authority to guarantee loans under this section

3 that was allocated for use in any State before August 1 of

4 the fiscal year in which such authority was allocated.’’.

5 SEC. 506. PREPAYMENT OF RURAL RENTAL HOUSING

6 LOANS.

7 (a) TECHNICAL ASSISTANCE GRANTS AND LOANS FOR

8 NONPROFIT AND PUBLIC AGENCY PURCHASERS OF PRE9 PAYMENT PROPERTIES.—Section 502(c)(5)(C)(i) of the

10 Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is amend11 ed to read as follows:

12 ‘‘(i) to the extent provided in appropriation

13 Acts, make a grant or predevelopment loan in an

14 amount not exceeding $50,000 to the nonprofit orga15 nization or public agency whose offer to purchase is

16 accepted under this paragraph to cover reasonable

17 costs, as determined by the Secretary and not includ18 ing the purchase price, incurred by the organization

19 or agency in purchasing and assuming responsibil20 ities for the housing and related facilities involved,

21 which may include costs for pursuing acquisition, ap22 praisals, financing fees, accounting, administration,

23 consultants, legal assistance, architectural assistance,

24 engineering assistance, application fees, overhead, and

25 other expenses;’’.
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1 (b) EQUITY TAKEOUT LOANS.—

2 (1) AUTHORITY AND LIMITATION.—Section

3 502(c)(4)(B)(iv) of the Housing Act of 1949 (42

4 U.S.C. 1472(c)(4)(B)(iv)) is amended by inserting be5 fore the period at the end the following: ‘‘or under

6 paragraphs (1) and (2) of section 514(j), except that

7 an equity loan referred to in this clause may not be

8 made available after the date of the enactment of the

9 Housing and Community Development Act of 1994

10 unless the Secretary determines that the other incen11 tives available under this subparagraph are not ade12 quate to provide a fair return on the investment of

13 the borrower, to prevent prepayment of the loan in14 sured under section 514 or 515, or to prevent the dis15 placement of tenants of the housing for which the loan

16 was made’’.

17 (2) APPROVAL OF ASSISTANCE.—Subparagraph

18 (C) of section 502(c)(4) of the Housing Act of 1949

19 is amended by striking the matter preceding clause (i)

20 and inserting the following:

21 ‘‘(C) APPROVAL OF ASSISTANCE.—The Secretary may

22 approve assistance under subparagraph (B) for assisted

23 housing only if the restrictive period has expired for any

24 loan for the housing made or insured under section 514 or

25 515 pursuant to a contract entered into after December 21,
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1 1979, but before the date of the enactment of the Department

2 of Housing and Urban Development Reform Act of 1989,

3 and the Secretary determines that the combination of assist4 ance provided—’’.

5 (3) LOAN TERMS.—Section 514 of the Housing

6 Act of 1949 (42 U.S.C. 1484) is amended by adding

7 at the end the following new subsection:

8 ‘‘(j) EQUITY TAKEOUT LOANS FOR PRESERVATION OF

9 LOW-INCOME HOUSING.—With respect to a loan insured

10 under subsection (a), the Secretary may—

11 ‘‘(1) make or insure an equity loan in the form

12 of a supplemental loan for the purpose of equity take13 out to the owner of housing financed with a loan in14 sured under this section pursuant to a contract en15 tered into before December 15, 1989, for the purpose

16 of extending the affordability of the housing for low17 income families or persons and very low-income fami18 lies or persons for not less than 20 years, except that

19 such loan may not exceed 90 percent of the value of

20 the equity in the project as determined by the Sec21 retary;

22 ‘‘(2) transfer and reamortize an existing loan in

23 connection with assistance provided under paragraph

24 (1); and
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1 ‘‘(3) make or insure a loan to enable a nonprofit

2 organization or public agency to make a purchase de3 scribed in section 502(c)(5).’’.

4 (4) TECHNICAL CORRECTION RELATING TO SEC5 TION 515 HOUSING.—Section 515(c)(1) of the Housing

6 Act of 1949 (42 U.S.C. 1485(c)(1)) is amended by

7 striking ‘‘December 21, 1979’’ and inserting ‘‘Decem8 ber 15, 1989’’.

9 (c) PHASE-IN OF RENT INCREASES.—Section

10 502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.

11 1472(c)(4)(B)(vi)) is amended by inserting before the period

12 at the end the following: ‘‘, except that any such increase

13 in rents for current tenants (except for increases made nec14 essary by increases in operating costs) shall (I) be phased

15 in equally over a period of not less than 3 years, if such

16 increase is 30 percent or more, and (II) be limited to not

17 more than 10 percent per year if such increase is more than

18 10 percent but less than 30 percent’’.

19 (d) TREATMENT OF ACCELERATION UPON DEFAULT.—

20 Section 502 of the Housing Act of 1949 (42 U.S.C. 1472)

21 is amended—

22 (1) in subsection (b)(2), by inserting ‘‘or any

23 payment in the case of acceleration of the amount due

24 under such a loan pursuant to any default,’’ after

25 ‘‘515’’; and
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1 (2) in subsection (c)—

2 (A) in paragraph (1)(A), by inserting before

3 the 1st comma the following: ‘‘, accept any pay4 ment tendered in the case of acceleration of the

5 amount due pursuant to any default on’’;

6 (B) in paragraph (1)(B), by inserting be7 fore the 1st comma the following: ‘‘, accept any

8 payment tendered in the case of acceleration of

9 the amount due pursuant to any default on’’;

10 (C) in paragraph (2)—

11 (i) by inserting after ‘‘prepaid’’ the fol12 lowing: ‘‘, paid in full pursuant to accelera13 tion of the amount due resulting from de14 fault,’’; and

15 (ii) by inserting ‘‘, payment,’’ after

16 ‘‘prepayment’’;

17 (D) in paragraph (4)(A), by inserting after

18 ‘‘prepay,’’ the following: ‘‘accepting any pay19 ment tendered in the case of acceleration of the

20 amount due pursuant to any default on,’’; and

21 (E) in paragraph (5)—

22 (i) in subparagraph (A)(ii), by insert23 ing after ‘‘prepay,’’ the following: ‘‘accept

24 the payment tendered in the case of accel-
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1 eration of the amount due pursuant to de2 fault on,’’;

3 (ii) in the 1st sentence of subparagraph

4 (F), by inserting after ‘‘prepay,’’ the follow5 ing: ‘‘accept payment tendered in the case of

6 acceleration of the amount due pursuant to

7 default on,’’;

8 (iii) in the 2d sentence of subpara9 graph (F), by inserting after ‘‘prepay,’’ the

10 following: ‘‘payment tendered in the case of

11 acceleration of the amount due pursuant to

12 default,’’;

13 (iv) in the last sentence of subpara14 graph (F), by striking ‘‘offers to prepay,’’

15 and inserting the following: ‘‘such offers to

16 prepay, payments in the case of acceleration

17 of the amount due pursuant to default,’’;

18 and

19 (v) in the matter in subparagraph (G)

20 that precedes clause (i), by inserting after

21 ‘‘prepay,’’ the following: ‘‘any payment ten22 dered in the case of acceleration of the

23 amount due pursuant to default on,’’.
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1 (e) TEST FOR ALLOWABLE PREPAYMENT.—Section

2 502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C.

3 1472(c)(5)(G)(ii)) is amended to read as follows:

4 ‘‘(ii) the Secretary makes a written finding

5 that—

6 ‘‘(I) prepayment, payment in the case of ac7 celeration, or refinancing will not (a) materially

8 increase economic hardship for current tenants,

9 and (b) involuntarily displace current tenants

10 (except for good cause), where comparable and

11 affordable housing is not readily available at the

12 time of displacement, determined without regard

13 to the availability of Federal housing assistance

14 that would address any such hardship or invol15 untary displacement; and

16 ‘‘(II) the supply of vacant, comparable

17 housing is sufficient to ensure that such prepay18 ment will not materially affect (a) the availabil19 ity of decent, safe, and sanitary housing afford20 able to low-income and very low-income families

21 or persons in the area that the housing could

22 reasonably be expected to serve, (b) the ability of

23 low-income and very low-income families or per24 sons to find affordable, decent, safe, and sanitary

25 housing near employment opportunities, or (c)
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1 the housing opportunities of minorities in the

2 community within which the housing is lo3 cated.’’.

4 SEC. 507. DESIGNATION OF UNDERSERVED AREAS AND RES5 ERVATION OF ASSISTANCE.

6 (a) REAUTHORIZATION AND SET-ASIDE.—Section

7 509(f)(4) of the Housing Act of 1949 (42 U.S.C. 1479(f)(4))

8 is amended—

9 (1) in subparagraph (A)—

10 (A) in the first sentence—

11 (i) by striking ‘‘5.0 percent in fiscal

12 years 1993 and 1994’’ and inserting ‘‘not

13 less than 5 percent or more than 10 percent

14 for each of fiscal years 1995 and 1996’’; and

15 (ii) by striking ‘‘514, 515, and 524’’

16 and inserting ‘‘and 515’’; and

17 (B) in the second sentence, by striking ‘‘sec18 tions 514 and 515’’ and inserting ‘‘section 515’’;

19 and

20 (2) in subparagraph (B)(ii), by striking ‘‘5 per21 cent’’ and inserting ‘‘10 percent’’.

22 (b) POVERTY LEVEL FOR DESIGNATION.—Section

23 509(f)(1) of the Housing Act of 1949 is amended—

24 (1) in subparagraph (A), by striking ‘‘20 per25 cent’’ and inserting ‘‘15 percent’’; and
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1 (2) in subparagraph (B), by striking ‘‘10 per2 cent’’ and inserting ‘‘5 percent’’.

3 (c) POVERTY LEVEL FOR PREFERENCE.—Section

4 509(f)(2) of the Housing Act of 1949 is amended—

5 (1) in subparagraph (A), by striking ‘‘28 per6 cent’’ and inserting ‘‘20 percent’’; and

7 (2) in subparagraph (B), by striking ‘‘13 per8 cent’’ and inserting ‘‘7 percent’’.

9 (d) ADDITIONAL QUALIFICATION AS UNDERSERVED

10 AREA.—Section 509(f)(1) of the Housing Act of 1949 is

11 amended by inserting after subparagraph (B) the following

12 new flush sentence:

13 ‘‘The Secretary may also designate a county or com14 munity as a targeted underserved area if the Sec15 retary determines that the county or community has

16 severe unmet housing needs, including needs caused

17 by severe economic and social dislocation such as nat18 ural disasters, structural employment changes, or per19 sistent poverty, or has experienced long-term popu20 lation and job losses.’’.

21 (e) GEOGRAPHICAL DIVERSITY.—Section 509(f)(1) of

22 the Housing Act of 1949 is amended by adding at the end

23 the following: ‘‘In designating targeted underserved areas

24 under this paragraph for any fiscal year, the Secretary may

25 not designate more than 10 counties and communities lo-
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1 cated in any single State or in the Commonwealth of Puerto

2 Rico. If more than 10 counties and communities in any

3 single State or the Commonwealth of Puerto Rico qualify

4 under this paragraph for designation as an underserved

5 area, the Secretary shall designate the counties and commu6 nities for which the sum of the percentages under subpara7 graphs (A) and (B) are the greatest.’’.

8 (f) 2-YEAR AND 3-YEAR DESIGNATIONS.—Section

9 509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f)) is

10 amended—

11 (1) in paragraph (1)—

12 (A) in the 1st sentence, by striking ‘‘in each

13 fiscal year’’; and

14 (B) in the 2d sentence, by striking ‘‘year

15 in’’ and inserting ‘‘first year for’’;

16 (2) in paragraph (2)—

17 (A) in the first sentence, by striking ‘‘para18 graph (4)’’ and inserting ‘‘paragraph (5)’’; and

19 (B) by striking the last sentence;

20 (3) in paragraph (3)(B), by striking ‘‘paragraph

21 (2)’’ and inserting ‘‘paragraph (3)’’;

22 (4) in paragraph (4)(A), by striking ‘‘paragraph

23 (7)’’ and inserting ‘‘paragraph (8)’’;

24 (5) by redesignating paragraphs (2) through (8)

25 as paragraphs (3) through (9), respectively; and
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1 (6) by inserting after paragraph (1) the follow2 ing new paragraph:

3 ‘‘(2) TIMING AND DURATION OF DESIGNA4 TIONS.—

5 ‘‘(A) IN GENERAL.—Except as provided in

6 subparagraph (B), the Secretary shall redesig7 nate the targeted underserved areas under this

8 subsection once every 2 fiscal years and such des9 ignations shall remain in effect for a period of

10 2 fiscal years. The first such 2-year designation

11 shall be made for fiscal years 1995 and 1996.

12 ‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—

13 The Secretary shall ensure that, at all times, not

14 less than 5 counties or communities that contain

15 tribal allotted or Indian trust land are included

16 among the 100 counties and communities des17 ignated as targeted underserved areas. The Sec18 retary shall redesignate the counties or commu19 nities designated as a targeted underserved area

20 in compliance with this subparagraph once every

21 3 fiscal years and such designations shall remain

22 in effect for 3 fiscal years. The first such 3-year

23 designation shall be made for fiscal years 1995

24 through 1997. Upon designation, the Secretary
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1 shall specify any targeted underserved area des2 ignated in compliance with this subparagraph.’’.

3 SEC. 508. ADMINISTRATIVE APPEALS.

4 (a) APPEALS.—Section 510(g) of the Housing Act of

5 1949 (42 U.S.C. 1480(g)) is amended—

6 (1) by inserting after ‘‘termination and’’ the fol7 lowing: ‘‘, in the case of any eviction not related to

8 any drug-related or criminal activity, nonpayment of

9 rent, or activity that threatens the health, safety, or

10 right to peaceful enjoyment of the premises by other

11 residents,’’; and

12 (2) by inserting after ‘‘reverse the decision’’ the

13 following: ‘‘and is mutually selected within a reason14 able period of time by the person adversely affected by

15 the reduction or termination of assistance and the

16 person reducing or terminating assistance’’.

17 (b) ATTORNEYS.—Section 510(d)(1) of the Housing

18 Act of 1949 is amended—

19 (1) in the matter preceding subparagraph (A),

20 by inserting ‘‘or 515’’ after ‘‘502’’; and

21 (2) in subparagraph (C)(ii), by inserting ‘‘with

22 respect to litigation under section 502,’’ before ‘‘rep23 resentation’’.
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1 SEC. 509. SECTION 515 RURAL RENTAL HOUSING.

2 (a) LOAN TERM.—Section 515(a)(2) of the Housing

3 Act of 1949 (42 U.S.C. 1485(a)(2)) is amended by inserting

4 before the semicolon the following: ‘‘, except that the Sec5 retary may also make loans for a period of up to 30 years

6 from the making of the loan’’.

7 (b) DEVELOPMENT COST.—Section 515(e)(4) of the

8 Housing Act of 1949 is amended by inserting ‘‘franchise

9 fees,’’ after ‘‘impact fees,’’.

10 (c) LIMITATION ON PROJECT TRANSFERS.—Section

11 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amend12 ed by inserting after subsection (g) the following new sub13 section:

14 ‘‘(h) PROJECT TRANSFERS.—After the date of the en15 actment of the Housing and Community Development Act

16 of 1994, any interest in the ownership of a project for which

17 a loan is made or insured under this section may be trans18 ferred only if the Secretary determines that such transfer

19 would be in the best interests of the tenants of the housing

20 for which the loan was made or insured and of the Federal

21 Government.’’.

22 (d) EQUITY LOANS.—Section 515(t) of the Housing

23 Act of 1949 is amended—

24 (1) by striking paragraphs (4) and (5); and

25 (2) by redesignating paragraphs (6) through (8)

26 as paragraphs (4) through (6), respectively.
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1 (e) SET-ASIDE FOR NONPROFIT ENTITIES.—The first

2 sentence of section 515(w)(1) of the Housing Act of 1949

3 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fiscal years

4 1993 and 1994’’ and inserting ‘‘fiscal years 1995 and

5 1996’’.

6 (f) AUTHORITY FOR STREAMLINED MORTGAGE MODI7 FICATIONS.—Section 515 of the Housing Act of 1949 (42

8 U.S.C. 1485) is amended by adding at the end the following

9 new subsection:

10 ‘‘(aa) MORTGAGE MODIFICATIONS.—

11 ‘‘(1) PURPOSE AND AUTHORITY.—In order to re12 duce the amount of debt service payments and operat13 ing costs of borrowers under loans made or insured

14 under this section, reduce rents paid by residents of

15 housing financed with such loans, and reduce the

16 amount of rental assistance necessary for such hous17 ing, the Secretary may refinance the outstanding

18 principal obligation of a loan made under this sub19 section in accordance with the provisions applicable

20 (at the time of such refinancing) to loans made under

21 this section that the Secretary determines are appro22 priate for purposes of this subsection and the terms

23 and conditions of the original loan.

24 ‘‘(2) USE OF HOUSING.—Any terms of the origi25 nal loan relating to use of the housing and related fa-
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1 cilities for the purposes specified in this section shall

2 continue to apply to the housing in the same manner

3 as if the loan were not modified under this subsection.

4 ‘‘(3) TREATMENT OF MODIFIED MORTGAGE

5 UNDER PREPAYMENT RESTRICTIONS.—Any loan

6 modified under this subsection shall be considered a

7 loan originally made under this section, for purposes

8 of the limitations under subsection (c) on prepayment

9 and refinancing under subsection (b)(3). For purposes

10 of determining the financial status of the loan or the

11 housing securing the loan, the Secretary may consider

12 the terms of the refinancing.

13 ‘‘(4) TERMS.—The Secretary shall, by regula14 tion, establish any requirements and conditions the

15 Secretary considers appropriate to provide for refi16 nancing under this subsection, including any limita17 tions on term of the refinancing loan.

18 ‘‘(5) EXPEDITED PROCEDURE.—The Secretary

19 shall establish an expedited procedure for providing

20 refinancing under this subsection, which—

21 ‘‘(A) shall not require application under the

22 same procedures applicable to loans made under

23 subsection (a); and

24 ‘‘(B) shall take into consideration any in25 formation obtained by the Secretary in making
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1 and servicing the loan under subsection (a) for

2 which refinancing under this subsection is re3 quested.’’.

4 SEC. 510. OPTIONAL CONVERSION OF RENTAL ASSISTANCE

5 PAYMENTS TO OPERATING SUBSIDY FOR MI6 GRANT FARMWORKER PROJECTS.

7 (a) IN GENERAL.—Section 521(a) of the Housing Act

8 of 1949 (42 U.S.C. 1490a(a)) is amended by adding at the

9 end the following new paragraph:

10 ‘‘(5) OPERATING ASSISTANCE FOR MIGRANT FARM11 WORKER PROJECTS.—

12 ‘‘(A) AUTHORITY.—In the case of housing (and

13 related facilities) for migrant farmworkers provided

14 or assisted with a loan under section 514 or a grant

15 under section 516, the Secretary may, at the request

16 of the owner of the project, use amounts provided for

17 rental assistance payments under paragraph (2) to

18 provide assistance for the costs of operating the

19 project. Any project assisted under this paragraph

20 may not receive rental assistance under paragraph

21 (2).

22 ‘‘(B) AMOUNT.—In any fiscal year, the assist23 ance provided under this paragraph for any project

24 shall not exceed an amount equal to 90 percent of the

25 operating costs for the project for the year, as deter-
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1 mined by the Secretary. The amount of assistance to

2 be provided for a project under this paragraph shall

3 be an amount that makes units in the project avail4 able to migrant farmworkers in the area of the project

5 at rates generally not exceeding 30 percent of the

6 monthly adjusted incomes of such farmworkers, based

7 on the prevailing incomes of such farmworkers in the

8 area.

9 ‘‘(C) SUBMISSION OF INFORMATION.—The owner

10 of a project assisted under this paragraph shall be re11 quired to provide to the Secretary, at least annually,

12 a budget of operating expenses and estimated rental

13 income, which the Secretary shall use to determine the

14 amount of assistance for the project.

15 ‘‘(D) DEFINITIONS.—For purposes of this para16 graph, the following definitions shall apply:

17 ‘‘(i) The term ‘migrant farmworker’ shall

18 have the same meaning given the term in section

19 516(k)(7).

20 ‘‘(ii) The term ‘operating cost’ means ex21 penses incurred in operating a project, including

22 expenses for—

23 ‘‘(I) administration, maintenance, re24 pair, and security of the project;
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1 ‘‘(II) utilities, fuel, furnishings, and

2 equipment for the project; and

3 ‘‘(III) maintaining adequate reserve

4 funds for the project.’’.

5 (b) CONFORMING AMENDMENTS.—Title V of the Hous6 ing Act of 1949 (42 U.S.C. 1471 et seq.) is amended—

7 (1) in section 502—

8 (A) in subsection (c)(1)(A)(i), by striking

9 ‘‘or (a)(2)’’ and inserting ‘‘, (a)(2), or (5)’’;

10 (B) in subsection (c)(4)(B)(ii), by inserting

11 before the period at the end the following: ‘‘, or

12 additional assistance or an increase in assist13 ance provided under section 521(a)(5)’’;

14 (C) in subsection (c)(4)(B)(iii), by inserting

15 before the period at the end the following: ‘‘, or

16 current tenants of projects not assisted under sec17 tion 521(a)(5)’’;

18 (D) in subsection (c)(5)(C)(iii)—

19 (i) by striking the 2d comma; and

20 (ii) by inserting ‘‘or any assistance

21 payments received under section 521(a)(5),’’

22 before ‘‘with respect’’;

23 (E) in subsection (c)(5)(D), by inserting be24 fore the period at the end the following: ‘‘or, in

25 the case of housing assisted under section
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1 521(a)(5), does not exceed the rents established

2 for the project under such section’’;

3 (2) in the second sentence of section 509(f)(5) (as

4 redesignated by the preceding provisions of this title),

5 by striking ‘‘an amount of section 521 rental assist6 ance’’ and inserting ‘‘, from amounts available for as7 sistance under paragraphs (2) and (5) of section

8 521(a), an amount’’;

9 (3) in section 513(c)(2)—

10 (A) in the matter preceding subparagraph

11 (A), by inserting ‘‘or contracts for operating as12 sistance under section 521(a)(5)’’ after

13 ‘‘521(a)(2)(A)’’;

14 (B) in subparagraph (A), by inserting ‘‘or

15 operating assistance contracts’’ after ‘‘contracts’’;

16 (C) in subparagraph (B), by striking ‘‘rent17 al’’ each place it appears; and

18 (D) in subparagraph (C), by inserting ‘‘or

19 operating assistance contracts’’ after ‘‘contracts’’;

20 (4) in section 521(a)(2)(B)—

21 (A) by inserting ‘‘or paragraph (5)’’ after

22 ‘‘this paragraph’’; and

23 (B) by striking ‘‘which shall’’ and all that

24 follows through the period at the end and insert25 ing the following: ‘‘. The budget (and the income,
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1 in the case of a project assisted under this para2 graph) shall be used to determine the amount of

3 the assistance for each project.’’;

4 (5) in section 521(c), by striking ‘‘subsection

5 (a)(2)’’ and inserting ‘‘subsections (a)(2) and (a)(5)’’;

6 (6) in section 521(e), by inserting after ‘‘recipi7 ent’’ the following: ‘‘or any tenant in a project as8 sisted under subsection (a)(5)’’; and

9 (7) in section 530, by striking ‘‘rental assistance

10 payments with respect to such project under section

11 521(a)(2)(A)’’ and inserting ‘‘assistance payments

12 with respect to such project under section

13 521(a)(2)(A) or 521(a)(5)’’.

14 SEC. 511. DEFINITION OF RURAL AREA.

15 The last sentence of section 520 of the Housing Act

16 of 1949 (42 U.S.C. 1490) is amended by striking ‘‘city of’’

17 and inserting ‘‘cities of South Tucson, Arizona, and’’.

18 SEC. 512. ELIGIBILITY OF MANUFACTURED HOME PARKS

19 FOR BUILDING SITE LOANS FOR COOPERA20 TIVES.

21 The first sentence of section 524(a)(1) of the Housing

22 Act of 1949 (42 U.S.C. 1490d(a)(1)) is amended by insert23 ing before the period at the end the following: ‘‘, and for

24 the acquisition and development of manufactured home
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1 parks owned by nonprofit organizations for future owner2 ship by low- and moderate-income residents of the park’’.

3 SEC. 513. RURAL HOUSING ASSISTANCE TARGETING RE4 PORT.

5 Section 532(a) of the Housing Act of 1949 (42 U.S.C.

6 1490l) is amended by adding at the end the following new

7 flush material:

8 ‘‘The Secretary shall submit a report to the Congress for

9 each fiscal year describing the geographical distribution of

10 housing for which eligible loan applications for assistance

11 under this title are submitted in such year and for which

12 amounts are obligated in such year. The report shall de13 scribe the areas in which the housing to be assisted under

14 the applications is located, the number of eligible applica15 tions received for housing in such areas, the number of eligi16 ble applications for housing in such areas that were ap17 proved and funded and the amounts of such funding, the

18 extent of the rural character of such areas, and any actions

19 taken by the Secretary to comply with the requirement

20 under paragraph (3). The report for a fiscal year shall be

21 submitted not later than 180 days after the conclusion of

22 such fiscal year.’’.
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1 SEC. 514. PRIORITY FOR RURAL HOUSING VOUCHER AS2 SISTANCE.

3 Section 542 of the Housing Act of 1949 (42 U.S.C.

4 1490r) is amended by adding at the end the following new

5 subsection:

6 ‘‘(c) PRIORITY.—

7 ‘‘(1) REQUIREMENT.—In providing assistance

8 under this section, the Secretary shall give preference

9 to providing assistance for rental housing that—

10 ‘‘(A) is financed or assisted with a loan,

11 guarantee, insurance, or other assistance pro12 vided under this title; and

13 ‘‘(B)(i) has a significant number of units,

14 as determined by the Secretary, that have been

15 vacant for extended periods; or

16 ‘‘(ii) is occupied by a significant number of

17 families, as determined by the Secretary, who

18 pay as rent for a unit in the housing an amount

19 exceeding 30 percent of the family’s monthly ad20 justed income.

21 ‘‘(2) PROJECT-BASED ASSISTANCE.—To provide

22 assistance according to the preference under para23 graph (1), the Secretary may enter into contracts

24 with owners of housing described in paragraph (1) to

25 provide voucher assistance payments that are at-
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1 tached to such housing on behalf of very low-income

2 families who reside in such housing.’’.

3 SEC. 515. NATIVE AMERICAN RURAL HOUSING CAPACITY

4 DEMONSTRATION PROGRAM.

5 Title V of the Housing Act of 1949 is amended by in6 serting after section 537 (42 U.S.C. 1490p–1) the following

7 new section:

8 ‘‘SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION

9 PROGRAM FOR NATIVE AMERICANS AND

10 ALASKAN NATIVES.

11 ‘‘(a) AUTHORITY.—The Secretary shall carry out a

12 program under this section to demonstrate the effectiveness

13 of assisting Native Americans and Alaskan Natives in un14 derserved areas to apply for, obtain, and use housing assist15 ance under this title.

16 ‘‘(b) GRANTS.—Under the demonstration under this

17 section, the Secretary shall make grants to technical assist18 ance providers selected under subsection (f) to carry out ac19 tivities under subsection (c) with respect to tribes selected

20 under subsection (e) (and members of the tribes) in the se21 lected areas. Of the amounts provided to a technical assist22 ance provider under a grant under this section, 40 percent

23 shall be disbursed to the technical assistance provider in

24 fiscal year 1995, 30 percent shall be so disbursed in fiscal
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1 year 1996, and 30 percent shall be so disbursed in fiscal

2 year 1997.

3 ‘‘(c) USE OF ASSISTANCE.—

4 ‘‘(1) ELIGIBLE ACTIVITIES.—Any amounts pro5 vided to a technical assistance provider under a grant

6 under this section shall be used by the technical as7 sistance provider only—

8 ‘‘(A) to train individuals for employment as

9 local project coordinators under paragraph (2),

10 which shall include training regarding the avail11 ability, application for, and use of housing as12 sistance under this title with respect to tribes

13 and members of tribes;

14 ‘‘(B) to provide ongoing technical assistance

15 and training to local project coordinators;

16 ‘‘(C) to provide assistance to the tribes se17 lected under subsection (e) in the selected areas,

18 or to Native American or Alaskan Native hous19 ing organizations serving such tribes, to employ

20 local project coordinators trained pursuant to

21 subparagraph (A); and

22 ‘‘(D) to establish a revolving fund to pro23 vide loans to tribes and members of tribes for

24 customary and reasonable costs incurred in pre25 paring and submitting applications for housing
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1 assistance under this title to be used in the se2 lected areas (including costs of credit reports),

3 except that not more than $1,500 may be pro4 vided for the purpose under this subparagraph to

5 any single tribe or Native American or Alaskan

6 Native housing organization.

7 ‘‘(2) LOCAL PROJECT COORDINATOR.—For pur8 poses of this section, a local project coordinator shall

9 be an individual who—

10 ‘‘(A) is employed by a tribe selected under

11 subsection (e) in, or Native American or Alaskan

12 Native housing organization serving, the selected

13 area;

14 ‘‘(B) provides advice and assistance to the

15 tribe or the tribes served by the organization

16 (and members of such tribes), regarding the

17 availability, application for, and use of housing

18 assistance under this title;

19 ‘‘(C) otherwise facilitates the use of such as20 sistance by the tribes and their members; and

21 ‘‘(D) assists the tribes and their members in

22 obtaining loans from the revolving fund estab23 lished under paragraph (1)(D).

24 ‘‘(d) TRIBAL CONTRIBUTIONS TO DEMONSTRATION

25 PROGRAM.—Each tribe selected under subsection (e) for
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1 participation in the demonstration program under this sec2 tion shall enter into an agreement with the technical assist3 ance provider to provide in-kind or financial assistance, in

4 addition to amounts provided under this section, for activi5 ties under the demonstration program, in an amount deter6 mined by the tribe and the technical assistance provider.

7 The assistance provided pursuant to such agreement may

8 include assistance in the form of office space, equipment,

9 transportation, salary enhancement, and fringe benefits,

10 and other forms of assistance.

11 ‘‘(e) SELECTION OF TRIBES AND AREAS.—

12 ‘‘(1) ELIGIBILITY.—The Secretary shall provide

13 for the technical assistance providers receiving grants

14 under this section to select for participation in the

15 demonstration under this section not more than a

16 total of 15 tribes—

17 ‘‘(A) that are located in counties or commu18 nities—

19 ‘‘(i) that are eligible for designation as

20 targeted underserved areas under section

21 509(f); or

22 ‘‘(ii) that include tribal allotted or In23 dian trust land; and

24 ‘‘(B) that—
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1 ‘‘(i) have agreed to participate in the

2 demonstration under this section by des3 ignating individuals for training as local

4 project coordinators under subsection (c); or

5 ‘‘(ii) are located in a county or com6 munity within which is located a Native

7 American or Alaskan Native housing orga8 nization that has so agreed to participate in

9 the demonstration under this section.

10 ‘‘(2) CRITERIA FOR SELECTION.—Each technical

11 assistance provider selecting tribes pursuant to para12 graph (1) shall make such selections according to cri13 teria that include—

14 ‘‘(A) the extent of substandard housing on

15 the reservation of the tribe;

16 ‘‘(B) the extent of the waiting list for hous17 ing assistance under Federal housing programs

18 in the community or community under para19 graph (1)(A);

20 ‘‘(C) the extent of interest in and willing21 ness to participate in the demonstration pro22 gram under this section for a 3-year period; and

23 ‘‘(D) the extent of willingness to provide in24 kind or financial assistance in addition to
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1 amounts provided under this section for activi2 ties under the demonstration program.

3 ‘‘(3) TREATMENT AS TARGETED UNDERSERVED

4 AREAS.—Notwithstanding the designation of counties

5 and communities as targeted underserved areas under

6 section 509(f)(1) and the provisions of section 520,

7 any selected area under this section shall be consid8 ered a targeted underserved area for fiscal years 1995,

9 1996, and 1997, for purposes of eligibility for assist10 ance with amounts reserved under section

11 509(f)(4)(A).

12 ‘‘(f) SELECTION OF TECHNICAL ASSISTANCE PROVID13 ERS.—

14 ‘‘(1) ELIGIBILITY.—The Secretary may make a

15 grant under this section only to a nonprofit organiza16 tion having experience in providing training and

17 technical assistance regarding the use of housing as18 sistance under this title and in administering revolv19 ing loan funds for costs relating to housing assistance

20 programs under this title.

21 ‘‘(2) APPLICATION.—The Secretary shall provide

22 for nonprofit organizations meeting the requirements

23 under paragraph (1) to submit applications for a

24 grant under this section during a period of not more
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1 than 45 days that begins upon publication of the no2 tice of funding availability under subsection (i).

3 ‘‘(3) SELECTION.—Not more than 30 days after

4 expiration of such period, the Secretary shall select, to

5 receive grants under this section, 1 or more nonprofit

6 organizations submitting applications that are—

7 ‘‘(A) capable of carrying out the duties of

8 technical assistance providers under this section;

9 ‘‘(B) knowledgeable and experienced regard10 ing housing needs and issues of Native Ameri11 cans and Alaskan Natives and housing assist12 ance programs under this title; and

13 ‘‘(C) agree to comply with the provisions of

14 this section.

15 ‘‘(g) REPORTS.—

16 ‘‘(1) LOCAL PROJECT COORDINATORS.—Each

17 local project coordinator trained or assisted by a tech18 nical assistance provider with amounts from a grant

19 under this section shall submit a report to the tech20 nical assistance provider for each of fiscal years 1995

21 through 1997, regarding the activities of the coordina22 tor. The report shall be submitted not later than 30

23 days after the conclusion of the fiscal year for which

24 the report is made.
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1 ‘‘(2) TECHNICAL ASSISTANCE PROVIDERS.—Each

2 technical assistance provider receiving a grant under

3 this section shall submit a report to the Secretary for

4 each of fiscal years 1995 through 1997, summarizing

5 the information submitted under paragraph (1) for

6 the fiscal year and describing the activities of the

7 technical assistance provider under the demonstration

8 under this section during the fiscal year. The report

9 shall be submitted not later than 60 days after the

10 conclusion of the fiscal year for which the report is

11 made.

12 ‘‘(3) SECRETARY.—The Secretary shall submit a

13 report to the Congress for each of fiscal years 1995

14 through 1997 describing the demonstration under this

15 section and the findings of the Secretary as a result

16 of the demonstration. The report shall be submitted

17 not later than 90 days after the conclusion of the fis18 cal year for which the report is made.

19 ‘‘(h) DEFINITIONS.—For purposes of this section:

20 ‘‘(1) ALASKAN NATIVE VILLAGE.—The term

21 ‘Alaskan Native Village’ has the same meaning given

22 the term ‘Native village’ in section 3 of the Alaska

23 Native Claims Settlement Act.

24 ‘‘(2) NATIVE AMERICAN OR ALASKAN NATIVE

25 HOUSING ORGANIZATION.—The term ‘Native Amer-
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1 ican or Alaskan Native housing organization’ means

2 a nonprofit organization that primarily serves a tribe

3 or tribes, and includes Indian housing authorities

4 and other housing entities of a tribe.

5 ‘‘(3) NONPROFIT ORGANIZATION.—The term

6 ‘nonprofit organization’ means any private, nonprofit

7 organization that—

8 ‘‘(A) is organized or chartered under State,

9 tribal, or local laws;

10 ‘‘(B) has no part of its net earning inuring

11 to the benefit of any member, founder, contribu12 tor, or individual;

13 ‘‘(C) complies with standards of financial

14 accountability acceptable to the Secretary; and

15 ‘‘(D) through its articles of incorporation or

16 through resolution of the governing body of a

17 tribe, has among its purposes significant activi18 ties related to the provision of decent housing

19 that is affordable to low- and moderate-income

20 families.

21 ‘‘(4) SELECTED AREA.—The term ‘selected area’

22 means, with respect to any tribe selected under sub23 section (e), the county or community meeting the re24 quirements of subsection (e)(1) in which the tribe se25 lected is located.
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1 ‘‘(5) TECHNICAL ASSISTANCE PROVIDER.—The

2 term ‘technical assistance provider’ means a nonprofit

3 organization (including a tribe and an Indian hous4 ing authority) that is selected under subsection (f) to

5 receive a grant under this section.

6 ‘‘(6) TRIBE.—The term ‘tribe’ means any Indian

7 tribe, band, group, or nation, including Alaska Indi8 ans, Aleuts, and Eskimos, and any Alaskan Native

9 Village, of the United States, that is considered an el10 igible recipient under the Indian Self-Determination

11 and Education Assistance Act or was considered an

12 eligible recipient under chapter 67 of title 31, United

13 States Code, prior to the repeal of such chapter.

14 ‘‘(i) NOTICE OF FUNDING AVAILABILITY.—

15 ‘‘(1) PUBLICATION.—The Secretary shall cause to

16 be published in the Federal Register notice of the

17 availability of any amounts made available for

18 grants under this section. Such notice shall be pub19 lished not later than the expiration of the 90-day pe20 riod beginning on the date that amounts are appro21 priated to carry out this section.

22 ‘‘(2) CONTENTS.—The notice referred to in para23 graph (1) shall—
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1 ‘‘(A) describe the requirements for eligibility

2 to receive a grant, the purposes of the grant, and

3 the permissible uses of grant amounts;

4 ‘‘(B) contain an address to which requests

5 for additional information regarding the dem6 onstration under this section may be made; and

7 ‘‘(C) state the deadline established by the

8 Secretary pursuant to subsection (f)(2) for the

9 submission of applications for a grant.’’.

10 SEC. 516. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

11 Title V of the Housing Act of 1949 (42 U.S.C. 1471

12 et seq.) is amended by inserting after section 538 (as added

13 by the preceding provisions of this title) the following new

14 section:

15 ‘‘SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

16 ‘‘(a) IN GENERAL.—The Secretary is authorized to

17 provide assistance to develop the capacity and ability of

18 community development corporations, community housing

19 development organizations, and other nonprofit organiza20 tions to undertake community development and affordable

21 housing projects and programs in rural areas.

22 ‘‘(b) FORM OF ASSISTANCE.—Assistance under this

23 section may be used for—

24 ‘‘(1) training, education, support, and advice to

25 enhance the technical and administrative capabilities
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1 of community development corporations, community

2 housing development organizations, and nonprofit or3 ganizations in rural areas;

4 ‘‘(2) loans, grants, or predevelopment assistance

5 to community development corporations, community

6 housing development organizations, and nonprofit or7 ganizations to carry out community development and

8 affordable housing activities that benefit low-income

9 families in rural areas; and

10 ‘‘(3) such other activities for rural areas as may

11 be determined by the Secretary.

12 ‘‘(c) MATCHING REQUIREMENT.—Assistance provided

13 under this section shall be matched from private sources in

14 an amount equal to 3 times the amount made available

15 under this section.

16 ‘‘(d) IMPLEMENTATION.—The Secretary shall by notice

17 establish such requirements as may be necessary to carry

18 out the provisions of this section. The notice shall take effect

19 upon issuance.’’.

20 SEC. 517. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

21 HOUSING IN RURAL AREAS.

22 Title V of the Housing Act of 1949 (42 U.S.C. 1471

23 et seq.) is amended by inserting after section 539 (as added

24 by the preceding provision of this title) the following new

25 section:
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1 ‘‘SEC. 540. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

2 HOUSING IN RURAL AREAS.

3 ‘‘(a) AUTHORITY.—The Secretary may make commit4 ments to guarantee eligible loans for the development costs

5 of eligible housing and related facilities, and may guarantee

6 such eligible loans, in accordance with this section.

7 ‘‘(b) EXTENT OF GUARANTEE.—A guarantee made

8 under this section shall guarantee repayment of an amount

9 not exceeding 90 percent of the amount of the unpaid prin10 cipal and interest of the loan for which the guarantee is

11 made. The liability of the United States under any guaran12 tee under this section shall decrease or increase pro rata

13 with any decrease or increase of the amount of the unpaid

14 portion of the obligation.

15 ‘‘(c) ELIGIBLE BORROWERS.—A loan guaranteed

16 under this section may be made to a nonprofit organization,

17 an agency or body of any State government or political sub18 division thereof, or a private entity.

19 ‘‘(d) ELIGIBLE HOUSING.—A loan may be guaranteed

20 under this section only if the loan is used for the develop21 ment costs of housing and related facilities (as such terms

22 are defined in section 515(e)) that—

23 ‘‘(1) consists of 5 or more adequate dwellings;

24 ‘‘(2) is available for occupancy only by low or

25 moderate income families or persons, whose incomes

26 at the time of initial occupancy do not exceed 115
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1 percent of the median income of the area, as deter2 mined by the Secretary;

3 ‘‘(3) will remain available as provided in para4 graph (2), according to such binding commitments as

5 the Secretary may require, for the period of the origi6 nal term of the loan guaranteed, unless the Secretary

7 waives the applicability of such requirement for the

8 loan only after determining, based on objective infor9 mation, that—

10 ‘‘(A) there is no longer a need for low- and

11 moderate-income housing in the market area in

12 which the housing is located;

13 ‘‘(B) housing opportunities for low-income

14 households and minorities will not be reduced as

15 a result of the waiver; and

16 ‘‘(C) additional Federal assistance will not

17 be necessary as a result of the waiver; and

18 ‘‘(4) is located in a rural area.

19 ‘‘(e) ELIGIBLE LENDERS.—

20 ‘‘(1) REQUIREMENT.—A loan may be guaranteed

21 under this subsection only if the loan is made by a

22 lender that the Secretary determines—

23 ‘‘(A) meets the qualifications, and has been

24 approved by the Secretary of Housing and

25 Urban Development, to make loans for multifam-
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1 ily housing that are to be insured under the Na2 tional Housing Act;

3 ‘‘(B) meets the qualifications, and has been

4 approved by the Federal National Mortgage As5 sociation and the Federal Home Loan Mortgage

6 Corporation, to make loans for multifamily

7 housing that are to be sold to such corporations;

8 or

9 ‘‘(C) meets any qualifications that the Sec10 retary may, by regulation, establish for partici11 pation of lenders in the loan guarantee program

12 under this section.

13 ‘‘(2) ELIGIBILITY LIST AND ANNUAL AUDIT.—The

14 Secretary shall establish a list of eligible lenders and

15 shall annually conduct an audit of each lender in16 cluded in the list for purposes of determining whether

17 such lender continues to be an eligible lender.

18 ‘‘(f) LOAN TERMS.—Each loan guaranteed pursuant

19 to this subsection shall—

20 ‘‘(1) provide for complete amortization by peri21 odic payments to be made for a term not to exceed

22 40 years;

23 ‘‘(2) involve a rate of interest agreed upon by the

24 borrower and the lender that does not exceed the max25 imum allowable rate established by the Secretary for
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1 purposes of this section and is fixed over the term of

2 the loan;

3 ‘‘(3) involve a principal obligation (including

4 initial service charges, appraisal, inspection, and

5 other fees as the Secretary may approve) not to ex6 ceed—

7 ‘‘(A) in the case of a borrower that is a

8 nonprofit organization or an agency or body of

9 any State or local government, 97 percent of the

10 development costs of the housing and related fa11 cilities or the value of the housing and facilities,

12 whichever is less;

13 ‘‘(B) in the case of a borrower that is a for14 profit entity not referred to in subparagraph

15 (A), 90 percent of the development costs of the

16 housing and related facilities or the value of the

17 housing and facilities, whichever is less; and

18 ‘‘(C) in the case of any borrower, for such

19 part of the property as may be attributable to

20 dwelling use, the applicable maximum per unit

21 dollar amount limitations under section 207(c)

22 of the National Housing Act;

23 ‘‘(4) be secured by a first mortgage on the hous24 ing and related facilities for which the loan is made,
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1 or otherwise, as the Secretary may determine nec2 essary to ensure repayment of the obligation; and

3 ‘‘(5) for at least 20 percent of the loans made

4 under this section, the Secretary shall provide the bor5 rower with assistance in the form of credits pursuant

6 to section 521(a)(1)(B) to the extent necessary to re7 duce the rate of interest under paragraph (2) to the

8 applicable Federal rate, as such term is used in sec9 tion 42(i)(2)(D) of the Internal Revenue Code of

10 1986.

11 ‘‘(g) GUARANTEE FEE.—At the time of issuance of a

12 loan guaranteed under this section, the Secretary may col13 lect from the lender a fee equal to not more than 1 percent

14 of the principal obligation of the loan.

15 ‘‘(h) AUTHORITY FOR LENDERS TO ISSUE CERTIFI16 CATES OF GUARANTEE.—The Secretary may authorize cer17 tain eligible lenders to determine whether a loan meets the

18 requirements for guarantee under this section and, subject

19 to the availability of authority to enter into guarantees

20 under this section, execute a firm commitment for a guar21 antee binding upon the Secretary and issue a certificate

22 of guarantee evidencing a guarantee, without review and

23 approval by the Secretary of the specific loan. The Sec24 retary may establish standards for approving eligible lend25 ers for a delegation of authority under this subsection.
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1 ‘‘(i) PAYMENT UNDER GUARANTEE.—

2 ‘‘(1) NOTICE OF DEFAULT.—In the event of de3 fault by the borrower on a loan guaranteed under this

4 section, the holder of the guarantee certificate for the

5 loan shall provide written notice of the default to the

6 Secretary.

7 ‘‘(2) FORECLOSURE.—After receiving notice

8 under paragraph (1) and providing written notice of

9 action under this paragraph to the Secretary, the

10 holder of the guarantee certificate for the loan may

11 initiate foreclosure proceedings for the loan in a court

12 of competent jurisdiction, in accordance with regula13 tions issued by the Secretary, to obtain possession of

14 the security property. After the court issues a final

15 order authorizing foreclosure on the property, the

16 holder of the certificate shall be entitled to payment

17 by the Secretary under the guarantee (in the amount

18 provided under subsection (b)) upon (A) conveyance

19 to the Secretary of title to the security property, (B)

20 submission to the Secretary of a claim for payment

21 under the guarantee, and (C) assignment to the Sec22 retary of all the claims of the holder of the guarantee

23 against the borrower or others arising out of the loan

24 transaction or foreclosure proceedings, except claims

25 released with the consent of the Secretary.
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1 ‘‘(3) ASSIGNMENT BY SECRETARY.—After receiv2 ing notice under paragraph (1), the Secretary may

3 accept assignment of the loan if the Secretary deter4 mines that the assignment is in the best interests of

5 the United States. Assignment of a loan under this

6 paragraph shall include conveyance to the Secretary

7 of title to the security property, assignment to the

8 Secretary of all rights and interests arising under the

9 loan, and assignment to the Secretary of all claims

10 against the borrower or others arising out of the loan

11 transaction. Upon assignment of a loan under this

12 paragraph, the holder of a guarantee certificate for

13 the loan shall be entitled to payment by the Secretary

14 under the guarantee (in the amount provided under

15 subsection (b)).

16 ‘‘(4) REQUIREMENTS.—Before any payment

17 under a guarantee is made under paragraph (2) or

18 (3), the holder of the guarantee certificate shall ex19 haust all reasonable possibilities of collection on the

20 loan guaranteed. Upon payment, in whole or in part,

21 to the holder, the note or judgment evidencing the debt

22 shall be assigned to the United States and the holder

23 shall have no further claim against the borrower or

24 the United States. The Secretary shall then take such
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1 action to collect as the Secretary determines appro2 priate.

3 ‘‘(j) VIOLATION OF GUARANTEE REQUIREMENTS BY

4 LENDERS ISSUING GUARANTEES.—

5 ‘‘(1) INDEMNIFICATION.—If the Secretary deter6 mines that a loan guaranteed by an eligible lender

7 pursuant to delegation of authority under subsection

8 (h) was not originated in accordance with the re9 quirements under this section and the Secretary pays

10 a claim under the guarantee for the loan, the Sec11 retary may require the eligible lender authorized

12 under subsection (h) to issue the guarantee certificate

13 for the loan—

14 ‘‘(A) to indemnify the Secretary for the loss,

15 if the payment under the guarantee was made

16 within a reasonable period specified by the Sec17 retary; or

18 ‘‘(B) to indemnify the Secretary for the loss

19 regardless of when payment under the guarantee

20 was made, if the Secretary determines that fraud

21 or misrepresentation was involved in connection

22 with the origination of the loan.

23 ‘‘(2) TERMINATION OF AUTHORITY TO ISSUE

24 GUARANTEES.—The Secretary may cancel a delega25 tion of authority under subsection (h) to an eligible
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1 lender if the Secretary determines that the lender has

2 violated the requirements and procedures for guaran3 teed loans under this section or for other good cause.

4 Any such cancellation shall be made by giving notice

5 to the eligible lender and shall take effect upon receipt

6 of the notice by the mortgagee or at a later date, as

7 the Secretary may provide. A decision by the Sec8 retary to cancel a delegation shall be final and con9 clusive and shall not be subject to judicial review.

10 ‘‘(k) REFINANCING.—Any loan guaranteed under this

11 section may be refinanced and extended in accordance with

12 terms and conditions that the Secretary shall prescribe, but

13 in no event for an additional amount or term that exceeds

14 the limitations under subsection (f).

15 ‘‘(l) NONASSUMPTION.—The borrower under a loan

16 that is guaranteed under this section and under which any

17 portion of the principal obligation or interest remains out18 standing may not be relieved of liability with respect to

19 the loan, notwithstanding the transfer of property for which

20 the loan was made.

21 ‘‘(m) GEOGRAPHICAL TARGETING.—

22 ‘‘(1) STUDY.—The Secretary shall provide for an

23 independent entity to conduct a study to determine

24 the extent to which borrowers in the United States

25 will utilize loan guarantees under this section, the
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1 rural areas in the United States in which borrowers

2 can best utilize and most need loans guaranteed

3 under this section, and the rural areas in the United

4 States in which housing of the type eligible for a loan

5 guarantee under this section is most needed by low6 and moderate-income families. The Secretary shall re7 quire the independent entity conducting the study to

8 submit a report to the Secretary and to the Congress

9 describing the results of the study not later than the

10 expiration of the 90-day period beginning on the date

11 of the enactment of the Housing and Community De12 velopment Act of 1994.

13 ‘‘(2) TARGETING.—In providing loan guarantees

14 under this section, the Secretary shall establish stand15 ards to target and give priority to rural areas in

16 which borrowers can best utilize and most need loans

17 guaranteed under this section, as determined by the

18 Secretary based on the results of the study under

19 paragraph (1) and any other information the Sec20 retary considers appropriate.

21 ‘‘(n) INAPPLICABILITY OF CREDIT-ELSEWHERE

22 TEST.—Section 501(c) shall not apply to guarantees, or

23 loans guaranteed, under this section.

24 ‘‘(o) TENANT PROTECTIONS.—The Secretary shall es25 tablish standards for the treatment of tenants of housing
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1 developed using amounts from a loan guaranteed under this

2 section, which shall incorporate, to the extent applicable,

3 existing standards applicable to tenants of housing devel4 oped with loans made under section 515. Such standards

5 shall include standards for fair housing and equal oppor6 tunity, lease and grievance procedures, and tenant appeals

7 of adverse actions.

8 ‘‘(p) HOUSING STANDARDS.—The standards estab9 lished under section 515(m) for housing and related facili10 ties assisted under section 515 shall apply to housing and

11 related facilities the development costs of which are financed

12 in whole or in part with a loan guaranteed under this sec13 tion.

14 ‘‘(q) LIMITATION ON COMMITMENTS TO GUARANTEE

15 LOANS.—

16 ‘‘(1) REQUIREMENT OF APPROPRIATIONS.—The

17 authority of the Secretary to enter into commitments

18 to guarantee loans under this section, and to guaran19 tee loans, shall be effective for any fiscal year only to

20 the extent or in such amounts as are or have been

21 provided in appropriations Acts for such fiscal year.

22 ‘‘(2) LIMITATION ON PROJECTS AND OUTSTAND23 ING AGGREGATE PRINCIPAL AMOUNT.—Subject to the

24 limitation in paragraph (1), the Secretary may enter

25 into commitments to guarantee loans under this sec-
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1 tion for not more than 25 housing projects in each of

2 fiscal years 1995 and 1996, having an aggregate out3 standing principal amount not exceeding $50,000,000

4 in each of such fiscal years.

5 ‘‘(r) REPORT.—

6 ‘‘(1) IN GENERAL.—The Secretary shall submit a

7 report to the Congress, not later than the expiration

8 of the 2-year period beginning on the date of the en9 actment of the Housing and Community Development

10 Act of 1994, describing the program under this section

11 for guaranteeing loans.

12 ‘‘(2) CONTENTS.—The report shall—

13 ‘‘(A) describe the types of borrowers provid14 ing housing with loans guaranteed under this

15 section, the areas served by the housing provided

16 and the geographical distribution of the housing,

17 the levels of income of the residents of the hous18 ing, the number of dwelling units provided, the

19 extent to which borrowers under such loans have

20 obtained other financial assistance for develop21 ment costs of housing provided with the loans,

22 and the extent to which borrowers under such

23 loans have used low-income housing tax credits

24 provided under section 42 of the Internal Reve-
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1 nue Code of 1986 in connection with the housing

2 provided with the loans;

3 ‘‘(B) analyze the financial viability of the

4 housing provided with loans guaranteed under

5 this section and the need for project-based rental

6 assistance for such housing;

7 ‘‘(C) include any recommendations of the

8 Secretary for expanding or improving the pro9 gram under this section for guaranteeing loans;

10 and

11 ‘‘(D) include any other information regard12 ing the program for guaranteeing loans under

13 this section that the Secretary considers appro14 priate.

15 ‘‘(s) DEFINITIONS.—For purposes of this subsection,

16 the following definitions shall apply:

17 ‘‘(1) The term ‘development cost’ has the mean18 ing given the term in section 515(e).

19 ‘‘(2) The term ‘eligible lender’ means a lender de20 termined by the Secretary to meet the requirements of

21 subparagraph (A), (B), (C), or (D) of subsection

22 (e)(1).

23 ‘‘(3) The terms ‘housing’ and ‘related facilities’

24 have the meanings given such terms in section 515(e).
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1 ‘‘(t) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated for fiscal years 1995 and

3 1996 such sums as may be necessary for costs (as such term

4 is defined in section 502 of the Congressional Budget Act

5 of 1974) of loan guarantees made under this section.

6 ‘‘(u) TERMINATION DATE.—A loan may not be guar7 anteed under this section after September 30, 1996.’’.

8 SEC. 518. RURAL HOUSING LOAN DELEGATED PROCESSING

9 DEMONSTRATION.

10 (a) AUTHORITY.—Not later than the expiration of the

11 180-day period beginning on the date of enactment of this

12 Act, the Secretary of Agriculture shall implement a system

13 for making, processing, and servicing loans under section

14 502 of the Housing Act of 1949 that delegates such functions

15 to nonprofit organizations approved by the Secretary of Ag16 riculture. Under the system, the Secretary shall retain the

17 authority to approve loan amounts and interest credit

18 agreements and to execute binding loan commitments and

19 credit agreements.

20 (b) USE IN TARGETED UNDERSERVED AREAS.—The

21 Secretary of Agriculture shall carry out the delegated proc22 essing system under subsection (a) only with respect to

23 loans for housing located in, and amounts reserved for use

24 in, areas for which a designation under section 509(f) is

25 in effect.
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1 (c) REPORT.—The Secretary of Agriculture shall sub2 mit an interim report to the Congress not later than 12

3 months after the date of the initial implementation of the

4 delegated processing system under this section describing

5 the activities taken under the system and evaluating the ef6 fectiveness of the system.

7 (d) TERMINATION OF AUTHORITY.—The Secretary of

8 Agriculture may not carry out the delegated processing sys9 tem under this section after September 30, 1996.

10 TITLE VI—COMMUNITY

11 DEVELOPMENT

12 Subtitle A—Community

13 Development Block Grant Program

14 SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND GUAR15 ANTEE AUTHORITY.

16 (a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—The

17 second sentence of section 103 of the Housing and Commu18 nity Development Act of 1974 (42 U.S.C. 5303) is amended

19 to read as follows: ‘‘For purposes of assistance under section

20 106, there are authorized to be appropriated $4,400,000,000

21 for fiscal year 1995 and $4,500,000,000 for fiscal year

22 1996.’’.

23 (b) LIMITATION ON LOAN GUARANTEES.—The fifth

24 sentence of section 108(a) of the Housing and Community

25 Development Act of 1974 (42 U.S.C. 5308(a)) is amended
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1 to read as follows: ‘‘Notwithstanding any other provision

2 of law and subject only to the absence of qualified appli3 cants or proposed activities and to the authority provided

4 in this section, to the extent approved or provided in appro5 priation Acts, the Secretary shall enter into commitments

6 to guarantee notes and obligations under this section with

7 an aggregate principal amount of $2,054,000,000 for fiscal

8 year 1995 and $2,054,000,000 for fiscal year 1996.’’.

9 (c) SPECIAL PURPOSE GRANTS.—Section 107 of the

10 Housing and Community Development Act of 1974 (42

11 U.S.C. 5307) is amended—

12 (1) by striking ‘‘SEC. 107’’ and all that follows

13 through the end of paragraph (1) of subsection (a)

14 and inserting the following:

15 ‘‘SEC. 107. (a) AUTHORIZATION OF APPROPRIA16 TIONS.—

17 ‘‘(1) IN GENERAL.—There are authorized to be

18 appropriated for each of fiscal years 1995 and 1996,

19 $60,000,000, for grants under subsection (b). Of such

20 amounts—

21 ‘‘(A) $7,000,000 shall be available in each

22 such year for grants under subsection (b)(1);

23 ‘‘(B) such sums as may be necessary shall

24 be available in each such year for grants under

25 subsection (b)(2);
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1 ‘‘(C) $7,000,000 shall be available in each

2 such year for grants under subsection (b)(3);

3 ‘‘(D) $28,000,000 shall be available in each

4 such year for grants under subsection (b)(4);

5 ‘‘(E) $6,000,000 shall be available in each

6 such year for grants under subsection (b)(5);

7 ‘‘(F) $2,000,000 shall be available in each

8 such year for grants under subsection (b)(6);

9 ‘‘(G) $8,000,000 shall be available in each

10 such year for grants under subsection (b)(7);

11 ‘‘(H) such sums as may be necessary shall

12 be available in each such year for grants under

13 subsection (b)(8);

14 ‘‘(I) $3,000,000 shall be available in each

15 such year for grants under subsection (c); and

16 ‘‘(J) such sums as may be necessary shall be

17 available in fiscal year 1995 for a grant to the

18 City of Bridgeport, Connecticut, subject to bind19 ing commitments made by the City of Bridgeport

20 and the State of Connecticut that the amount

21 made available pursuant to this subparagraph

22 will be supplemented with an additional amount

23 equal to such amount under this subparagraph,

24 which shall be provided by the city and the State

25 in equal amounts.’’; and
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1 (2) in subsection (b)—

2 (A) in paragraph (6), by striking ‘‘and’’ at

3 the end;

4 (B) in paragraph (7), by striking the period

5 at the end and inserting a semicolon; and

6 (C) by adding at the end the following new

7 paragraph:

8 ‘‘(8) to 10 metropolitan cities and urban coun9 ties that receive grants under section 106, have high

10 rates of fire incidents, a substantial number of low11 income residents, and a high rate of death and serious

12 injury caused by fire among youth, elderly, and mi13 norities, for obtaining a nitrogen enhanced, bio14 degradable, noncorrosive fire suppression liquid and

15 for training firefighters to use such liquid; and in

16 any year in which grants are made under this para17 graph, the Secretary shall include in the report re18 quired under section 113 a description of the effective19 ness of grants made under this paragraph in prevent20 ing loss of life and property; and’’.

21 SEC. 602. MANAGEMENT INFORMATION SYSTEMS.

22 Section 103 of the Housing and Community Develop23 ment Act of 1974 (42 U.S.C 5303) is amended—

24 (1) by inserting ‘‘(a) IN GENERAL.—’’ after

25 ‘‘103.’’; and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(b) RESERVATION FOR MANAGEMENT INFORMATION

4 SYSTEMS.—Of the amount approved in an appropriation

5 Act for each of fiscal years 1995 and 1996 under this sec6 tion, the Secretary may reserve not more than 0.5 percent

7 for improving management information systems used by the

8 Secretary and recipients under this title.’’.

9 SEC. 603. ELIGIBLE ACTIVITIES.

10 (a) RECONSTRUCTION ACTIVITIES AND REMOVAL OF

11 TOXIC MATERIALS.—Section 105(a) of the Housing and

12 Community Development Act of 1974 (42 U.S.C. 5305(a))

13 is amended—

14 (1) in paragraph (4), by striking ‘‘, demolition,

15 removal,’’ and inserting ‘‘(including the removal of

16 toxic materials and other contaminants from prop17 erties), demolition, removal, reconstruction,’’;

18 (2) in paragraph (8), by striking ‘‘fiscal year

19 1994’’ and inserting ‘‘fiscal years 1994, 1995, and

20 1996’’;

21 (3) in paragraph (13), by striking ‘‘and’’ at the

22 end;

23 (4) by striking paragraph (19);

24 (5) in paragraph (24), by striking ‘‘and’’ at the

25 end;
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1 (6) in paragraph (25), by striking the period at

2 the end and inserting ‘‘; and’’;

3 (7) by redesignating paragraphs (20) through

4 (25) as paragraphs (19) through (24), respectively;

5 and

6 (8) by redesignating paragraph (21) (as added

7 by section 1012(f)(3) of the Housing and Community

8 Development Act of 1992 (Public Law 102–550; 106

9 Stat. 3905) as paragraph (25).

10 (b) HOMEOWNERSHIP ACTIVITIES.—Section 907(b)(2)

11 of the Cranston-Gonzalez National Affordable Housing Act

12 (42 U.S.C. 5305 note) is hereby repealed.

13 SEC. 604. REALLOCATIONS.

14 Section 106(c) of the Housing and Community Devel15 opment Act of 1974 (42 U.S.C. 5304(c)) is amended by

16 striking paragraph (4).

17 SEC. 605. LIMITATION ON EXTENT OF USE OF LOAN GUAR18 ANTEES FOR HOUSING PURPOSES.

19 Section 108 of the Housing and Community Develop20 ment Act of 1974 (42 U.S.C. 5308) is amended by inserting

21 after subsection (h) the following new subsection:

22 ‘‘(i) LIMITATION ON USE.—Of any amounts obtained

23 from notes or other obligations issued by an eligible public

24 entity or public agency designated by an eligible public en25 tity and guaranteed under this section pursuant to an ap-
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1 plication for a guarantee submitted after the date of the

2 enactment of the Housing and Community Development

3 Act of 1992, the aggregate amount used for the purposes

4 described in clauses (2) and (4) of subsection (a), and for

5 other housing activities under the purposes described in

6 clauses (1) and (3) of subsection (a), may not exceed 10

7 percent of such amounts obtained by the eligible public en8 tity or agency.’’.

9 SEC. 606. ECONOMIC DEVELOPMENT GRANTS.

10 (a) ELIGIBLE ACTIVITIES.—Section 108(q)(2) of the

11 Housing and Community Development Act of 1974 (42

12 U.S.C. 5308(q)(2)) is amended by inserting before the pe13 riod at the end the following: ‘‘and for the construction, re14 habilitation, or financing of retail and service facilities,

15 mixed-use projects, projects that link economic development

16 and housing, community centers, farmers’ markets, and

17 community-based business expansions’’.

18 (b) ELIGIBLE PUBLIC ENTITIES.—Section 108(q)(1) of

19 the Housing and Community Development Act of 1974 is

20 amended by inserting after ‘‘eligible public entities’’ the fol21 lowing: ‘‘, and to eligible public entities in conjunction with

22 community- or neighborhood-based organizations,’’.

23 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

24 108(q) of the Housing and Community Development Act
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1 of 1974 is amended by adding at the end the following new

2 paragraph:

3 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.—

4 There are authorized to be appropriated for grants

5 under this subsection $100,000,000 for fiscal year

6 1995 and $100,000,000 for fiscal year 1996.’’.

7 SEC. 607. USE OF UDAG RECAPTURES.

8 Section 119(o) of the Housing and Community Devel9 opment Act of 1974 (42 U.S.C. 5318(o)) is amended by

10 striking ‘‘October 1, 1993’’ and inserting in lieu thereof

11 ‘‘April 11, 1994’’.

12 SEC. 608. EXTENSION OF CERTAIN CDBG ASSISTANCE.

13 (a) EXTENSION.—Section 916(f) of the Cranston-Gon14 zalez National Affordable Housing Act (42 U.S.C. 5306

15 note) is amended by striking ‘‘1991’’ and all that follows

16 through ‘‘1994’’ and inserting ‘‘beginning before the com17 mencement of fiscal year 1998’’.

18 (b) ELIGIBILITY.—Section 916(e)(4) of the Cranston19 Gonzalez National Affordable Housing Act (42 U.S.C. 5306

20 note) is amended by inserting ‘‘other than Riverside Coun21 ty, California,’’ after ‘‘area’’.
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1 Subtitle B—Other Community

2 Development Programs

3 SEC. 631. NEIGHBORHOOD REINVESTMENT CORPORATION.

4 The first sentence of section 608(a)(1) of the Neighbor5 hood Reinvestment Corporation Act (42 U.S.C. 8107(a)) is

6 amended to read as follows: ‘‘There are authorized to be ap7 propriated to the corporation to carry out this title

8 $35,000,000 for fiscal year 1995 and $35,000,000 for fiscal

9 year 1996.’’.

10 SEC. 632. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT

11 PROGRAM.

12 Section 123(g) of the Housing and Urban-Rural Re13 covery Act of 1983 (42 U.S.C. 5318 note) is amended to

14 read as follows:

15 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

16 are authorized to be appropriated to carry out this section

17 $10,000,000 for fiscal year 1995 and $10,000,000 for fiscal

18 year 1996.’’.

19 SEC. 633. CAPACITY BUILDING FOR COMMUNITY DEVELOP20 MENT AND AFFORDABLE HOUSING.

21 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 4

22 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816

23 note) is amended by striking subsection (e) and inserting

24 the following new subsection:
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1 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated to carry out this section

3 $60,000,000 for fiscal year 1995 and $60,000,000 for fiscal

4 year 1996.’’.

5 (b) DELIVERY OF ASSISTANCE.—Section 4 of the HUD

6 Demonstration Act of 1993 (42 U.S.C. 9816 note) is amend7 ed—

8 (1) in subsection (a)—

9 (A) by inserting ‘‘and directly to commu10 nity-based organizations and capacity-building

11 organizations’’ after ‘‘Initiative’’;

12 (B) by inserting ‘‘neighborhood’’ after ‘‘un13 dertake’’; and

14 (C) by striking ‘‘and affordable housing’’

15 and inserting ‘‘, affordable housing, revitaliza16 tion, economic development, youth and family

17 support, and community service’’;

18 (2) in subsection (b)—

19 (A) in paragraph (1), by striking ‘‘and

20 community housing development organizations’’

21 and inserting ‘‘, community housing develop22 ment organizations, and community-based orga23 nizations’’ before the semicolon at the end;

24 (B) in paragraph (2)—
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1 (i) by striking ‘‘and community hous2 ing development organizations’’ and insert3 ing ‘‘, community housing development or4 ganizations, and community-based organi5 zations’’;

6 (ii) by inserting ‘‘neighborhood’’ after

7 ‘‘carry out’’; and

8 (iii) by striking ‘‘low-income’’ and in9 serting ‘‘low- and moderate-income’’; and

10 (C) in paragraph (3), by inserting ‘‘or the

11 community-based organization’’ after ‘‘Initia12 tive’’;

13 (3) in subsection (c), by inserting ‘‘to the Na14 tional Community Development Initiative’’ after

15 ‘‘provided’’;

16 (4) by redesignating subsection (d) as subsection

17 (e); and

18 (5) by inserting after subsection (c) the following

19 new subsection:

20 ‘‘(d) SELECTION CRITERIA.—The Secretary shall select

21 community-based organizations and capacity-building or22 ganizations to receive assistance under this section based

23 upon selection criteria established by the Secretary, which

24 shall include the extent to which the activities proposed to
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1 be conducted by the organization with assistance under this

2 section will—

3 ‘‘(1) develop new community-based organizations

4 in unorganized or underserved areas;

5 ‘‘(2) assist eligible private nonprofit community6 based organizations located in low- or moderate-in7 come neighborhoods or areas having a concentration

8 of low- and moderate-income persons;

9 ‘‘(3) be targeted to areas in economic distress;

10 ‘‘(4) be conducted by an organization that pro11 vides for neighborhood resident participation in the

12 activities of the organization (including participation

13 of low- and moderate-income residents) and the extent

14 to which the households and businesses in the area

15 served are members of the organization;

16 ‘‘(5) benefit low- and moderate-income persons

17 residing in the area served by the applicant;

18 ‘‘(6) encourage linking and coordinating hous19 ing, economic, and human development;

20 ‘‘(7) be coordinated with local law enforcement

21 agencies, local public housing agencies, and local pub22 lic housing resident management corporations and

23 resident councils, with respect to anti crime initia24 tives; and
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1 ‘‘(8) leverage contributions to support a wide va2 riety of community development initiatives from the

3 private sector, foundations, colleges and universities,

4 civic groups, social, cultural, religious, and other in5 stitutions, and the national service program, in a

6 manner that achieves the greatest long-term private

7 sector support.’’.

8 SEC. 634. COLONIAS ASSISTANCE PROGRAM.

9 (a) GRANT AUTHORITY.—The Secretary may make

10 grants in accordance with the provisions of this section to

11 units of general local government, States, non-profit organi12 zations, or entities or instrumentalities established under

13 the authority of any of such entities, for use in addressing

14 the community development and housing needs of colonias.

15 (b) ELIGIBLE ACTIVITIES.—Assistance under this sec16 tion may be used only to carry out the following activities:

17 (1) Any activity eligible under section 105 of the

18 Housing and Community Development Act of 1974 or

19 section 212(a) of the HOME Investment Partnerships

20 Act.

21 (2) Refinancing the existing debt of homeowners

22 to convert existing land transactions and interests

23 into mortgages.
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1 (3) Constructing new housing, including self2 help, energy-efficient, and innovative housing design

3 initiatives.

4 (4) Developing new subdivisions for affordable

5 housing.

6 (5) Re-platting and redeveloping existing sub7 divisions.

8 (6) Planning for and constructing infrastructure

9 necessary for the development of housing, economic

10 development, and community facilities and amenities.

11 (7) Such other activities as the Secretary deems

12 appropriate to further the purposes of this section.

13 (c) MODEL PROGRAMS.—

14 (1) IN GENERAL.—Of amounts allocated under

15 subsection (j)(2), the Secretary shall make grants

16 under this subsection to the entities referred to in sub17 section (a) for the purpose of establishing model pro18 grams of assistance for addressing the community de19 velopment, housing, and other needs of the residents

20 of the colonias.

21 (d) SELECTION OF GRANTEES.—

22 (1) GEOGRAPHIC DISTRIBUTION.—The Secretary

23 shall designate—

24 (A) at least one project in each State to re25 ceive a grant under this subsection; and
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1 (B) at least one project within a metropoli2 tan area in any State to receive a grant under

3 this subsection.

4 (2) SELECTION PROCESS.—The Secretary shall

5 select grantees under this subsection on a non-com6 petitive basis, through negotiation with the grantee.

7 (3) SELECTION CRITERIA.—In selecting projects

8 for grants under this subsection, the Secretary shall

9 consider—

10 (A) the extent of need in the colonia;

11 (B) the likely effectiveness of the proposed

12 approach in addressing identified needs;

13 (C) the extent to which funding for the

14 project is committed from sources other than

15 under this section;

16 (D) the need to consider a variety of solu17 tions to a variety of needs situations; and

18 (E) such other factors as the Secretary

19 deems appropriate to carry out the objectives of

20 this section.

21 (e) COMPETITIVE GRANTS.—

22 (1) PURPOSE.—Grants under this subsection

23 shall be made, in accordance with paragraph (2), to

24 the entities referred to in subsection (a) for the pur25 pose of assisting the community development and
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1 housing needs of the residents of one or more colonias

2 in an area or region.

3 (2) RESERVATION OF FUNDS.—Of amounts allo4 cated under subsection (j)(2), the Secretary shall re5 serve a target amount for grants under this subsection

6 for use in colonias in each State. The Secretary shall

7 determine the amount be reserved based on such objec8 tive factors of need as the Secretary deems appro9 priate, which may include rates of poverty in, and

10 the population of, colonias. The Secretary shall reallo11 cate any amounts set-aside under this paragraph for

12 which the Secretary determines there will not be suffi13 cient approvable applications in a fiscal year.

14 (3) USE OF FUNDS.—Any amount not reserved

15 or reallocated under paragraph (2) may be used in

16 colonias in any State.

17 (4) APPLICATIONS.—Applications for grants

18 under this subsection shall be submitted at such time

19 and in accordance with such procedures, as the Sec20 retary shall prescribe. Applications shall contain the

21 following information, which the Secretary shall con22 sider in selecting projects for grants under this sub23 section:

24 (A) The extent of need in the colonia.
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1 (B) An estimate of the likely effectiveness of

2 the proposed approach in addressing identified

3 needs.

4 (C) A description of the extent to which

5 funding for the project is committed from sources

6 other than under this section.

7 (D) Any other information that the Sec8 retary deems appropriate to carry out the objec9 tives of this section.

10 (5) SELECTION OF GRANTEES.—The Secretary

11 shall select grantees for grants under this subsection

12 on the basis of a competition, following publication of

13 a notice of funding availability in the Federal Reg14 ister.

15 (f) RECORDS, REPORTS, AND AUDITS.—

16 (1) KEEPING OF RECORDS.—Each grantee under

17 this section shall keep such records as may be reason18 ably necessary to disclose the amounts and the dis19 position of grant amounts received under this section

20 and to ensure compliance with the requirements of

21 this section.

22 (2) GRANTEE REPORTS.—Each grantee under

23 this section shall submit to the Secretary a report, or

24 series of reports, in a form and at a time specified

25 by the Secretary. Each report shall—
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1 (A) describe the use of funds made available

2 to the grantee under this section; and

3 (B) describe and analyze the effect of as4 sisted activities in addressing the community de5 velopment and housing needs of the residents of

6 colonias.

7 (g) ACCESS TO DOCUMENTS BY SECRETARY.—The Sec8 retary shall have access for the purpose of audit and exam9 ination to any books, documents, papers, and records of a

10 grantee that are pertinent to assistance received in connec11 tion with, and the requirements of, this section.

12 (h) ACCESS TO DOCUMENTS BY COMPTROLLER GEN13 ERAL.—The Comptroller General of the United States, or

14 any of the duly authorized representatives of the Comptrol15 ler General, shall have access for the purpose of audit and

16 examination to any books, documents, papers, and records

17 of a grantee that are pertinent to assistance received under,

18 and the requirements of, this section.

19 (i) DEFINITIONS.—For purposes of this section, the fol20 lowing definitions shall apply:

21 (1) The terms ‘‘colonia’’ and ‘‘United States22 Mexico Border Region’’ have the meanings given the

23 terms in section 916(e) of the Cranston-Gonzalez Na24 tional Affordable Housing Act.
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1 (2) The term ‘‘metropolitan area’’ has the mean2 ing given the term in section 102(a) of the Housing

3 and Community Development Act of 1974.

4 (3) The term ‘‘nonprofit organization’’ means—

5 (A) an organization—

6 (i) that is described in section 501(c)

7 of the Internal Revenue Code of 1986; and

8 (ii) is exempt from taxation under sec9 tion 501(a) of such Code; or

10 (B) an organization—

11 (i) no part of the net earnings of which

12 inures to the benefit of any member, found13 er, contributor, or individual;

14 (ii) that in the case of a private non15 profit organization, has a voluntary board;

16 (iii) that has an accounting system, or

17 has designated a fiscal agent in accordance

18 with requirements established by the Sec19 retary; and

20 (iv) that practices nondiscrimination

21 in the provision of assistance.

22 (4) The term ‘‘Secretary’’ means the Secretary of

23 Housing and Urban Development.

24 (5) The term ‘‘State’’ means the States of Cali25 fornia, Arizona, New Mexico, and Texas.
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1 (6) The term ‘‘unit of general local government’’

2 means—

3 (A) a city, town, township, county, parish,

4 village, or other general purpose political sub5 division of a State; and

6 (B) any agency or instrumentality thereof

7 that is established pursuant to legislation and

8 designated by the chief executive to act on behalf

9 of the jurisdiction with regard to provisions of

10 this section.

11 The term includes a consortium of geographically con12 tiguous units of general local government, if the Sec13 retary determines that the consortium—

14 (i) has sufficient authority and administra15 tive capability to carry out the purposes of this

16 section on behalf of its member jurisdictions; and

17 (ii) meets such other requirements as the

18 Secretary may prescribe.

19 (j) FUNDING.—

20 (1) AUTHORIZATION OF APPROPRIATIONS.—

21 There are authorized to be appropriated for grants

22 under this section $100,000,000 for each of fiscal

23 years 1995 and 1996. Any amount appropriated to

24 carry out this section shall remain available until ex25 pended.
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1 (2) ALLOCATION OF FUNDS.—Of the amounts ap2 propriated under paragraph (1) for any fiscal year—

3 (A) 80 percent shall be available for grants

4 to establish model programs under subsection (c);

5 and

6 (B) 20 percent shall be available for com7 petitive grants under subsection (e).

8 SEC. 635. GRANTS FOR EMPOWERMENT ZONES AND ENTER9 PRISE COMMUNITIES.

10 (a) GRANT AUTHORITY.—The Secretary of Housing

11 and Urban Development may make grants to units of gen12 eral local government in which empowerment zones and en13 terprise communities have been designated pursuant to sec14 tion 1391 of the Internal Revenue Code of 1986.

15 (b) USE.—Grants under this section may be used only

16 to assist units of general local government in implementing

17 the strategic plan for community revitalization required for

18 each designated empowerment zone and enterprise commu19 nity by expanding business opportunities and job creation

20 through economic development activities and by stimulating

21 the use of project-based rental assistance certificates and

22 other activities to construct or rehabilitate rental housing,

23 as follows:

24 (1) ECONOMIC DEVELOPMENT ACTIVITIES.—

25 Grants amounts under this section used for economic
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1 development activities may be used only for activities

2 eligible to be carried out with amounts provided

3 under title I of the Housing and Community Develop4 ment Act of 1974.

5 (2) ASSISTED HOUSING.—Grant amounts under

6 this section used for housing activities may be used

7 for—

8 (A) project-based assistance activities eligi9 ble under section 8 of the United States Housing

10 Act of 1937 or similar State and local programs;

11 (B) activities eligible for assistance under

12 title II of the Cranston-Gonzalez National Af13 fordable Housing Act or a similar local afford14 able housing program; and

15 (C) other housing activities that meet the

16 requirements of this subsection, as the Secretary

17 may approve.

18 (c) TECHNICAL ASSISTANCE.—From amounts reserved

19 under subsection (i)(2), the Secretary shall carry out, di20 rectly or through contracts, training and information ac21 tivities in connection with the program under this section.

22 (d) APPLICATIONS.—A locality in which an

23 empowerment zone or enterprise community has been des24 ignated, which designation remains in effect, may submit

25 an application to the Secretary for a grant under this sec-
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1 tion. The application shall contain such information and

2 certifications as the Secretary may require, including a cer3 tification that the grant will be used in accordance with

4 the approved strategic plan. Where a zone or community

5 is within the jurisdiction of more than one unit of general

6 local government, the application shall be submitted jointly

7 by the units of general local government and shall specify

8 whether and, if so, how the grant is to be divided among

9 the units.

10 (e) FUNDING.—To the extent amounts are available to

11 carry out this section, for applications approved by the Sec12 retary the amount of a grant under this section for a fiscal

13 year shall be —

14 (1) $50,000,000 for each urban empowerment

15 zone;

16 (2) $20,000,000 for each rural empowerment

17 zone; and

18 (3) $1,400,000 for each enterprise community.

19 (f) TERMS AND CONDITIONS.—Grants made under this

20 section shall be subject to such terms and conditions as the

21 Secretary may establish.

22 (g) USE IN CONJUNCTION WITH LOAN GUARAN23 TEES.—Grants made under this section may be used in con24 junction with loans guaranteed under section 108 of the
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1 Housing and Community Development Act of 1974 and the

2 Home Investment Partnerships Act.

3 (h) RECORDS, REPORTS, AND AUDITS.—

4 (1) KEEPING OF RECORDS.—Each grantee under

5 this section shall keep such records as may be reason6 ably necessary to disclose the amounts and the dis7 position of grant amounts received under this subtitle

8 and to ensure compliance with the requirements of

9 this section.

10 (2) GRANTEE REPORTS.—Each grantee under

11 this section shall submit to the Secretary a report, or

12 series of reports, in a form and at a time specified

13 by the Secretary. Each report shall—

14 (A) describe the use of amounts made avail15 able under this section; and

16 (B) describe and analyze the effect of as17 sisted activities in addressing the objectives of

18 this section.

19 (3) ACCESS TO DOCUMENTS BY SECRETARY.—

20 The Secretary shall have access for the purpose of

21 audit and examination to any books, documents, pa22 pers, and records of the grantee that are pertinent to

23 assistance received in connection with, and the re24 quirements of, this section.
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1 (4) ACCESS TO DOCUMENTS BY COMPTROLLER

2 GENERAL.—The Comptroller General of the United

3 States, or any of the duly authorized representatives

4 of the Comptroller General, shall have access for the

5 purpose of audit and examination to any books, docu6 ments, papers, and records of the grantee that are

7 pertinent to assistance received under, and the re8 quirements of, this section.

9 (i) FUNDING.—

10 (1) AUTHORIZATION OF APPROPRIATIONS.—

11 There are authorized to be appropriated for purposes

12 of this section $250,000,000 for fiscal year 1995 and

13 $250,000,000 for fiscal year 1996. Any amount ap14 propriated to carry out this section shall remain

15 available until expended.

16 (2) RESERVATION OF AMOUNTS FOR TRAINING

17 AND INFORMATION ACTIVITIES.—Of the amounts ap18 propriated pursuant to paragraph (1) for any fiscal

19 year, the Secretary shall reserve not more than 0.5

20 percent for use only to carry out the training and in21 formation activities referred to in subsection (c).

22 SEC. 636. USE OF GRANT AMOUNTS.

23 (a) BUFFALO, NEW YORK.—Notwithstanding any

24 other provision of law, the City of Buffalo, New York, may

25 retain amounts provided under an urban development ac-
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1 tion grant under section 119 of the Housing and Commu2 nity Development Act of 1974 for Project No. B–87–AA–

3 36–0540 and use such funds for the Towne Gardens Plaza

4 project, and may retain amounts provided under such a

5 grant for Project No. B–87–AA–36–0521 and use such

6 funds for the American Axle project, if such projects are

7 commenced not later than 6 months after the date of the

8 enactment of this Act.

9 (b) PITTSBURGH, PENNSYLVANIA.—Notwithstanding

10 any other provision of law, the city of Pittsburgh, Penn11 sylvania, may retain any amounts provided under an

12 urban development action grant for Project No. B–86–AA–

13 42–0275 and use such funds for the Central Pittsburgh

14 Plaza project, if such project is commenced not later than

15 6 months after the date of the enactment of this Act.

16 (c) RICHMOND, VIRGINIA.—The Secretary of Housing

17 and Urban Development shall cancel the indebtedness of the

18 city of Richmond, Virginia, relating to the categorical pro19 gram settlement grant provided to the city to settle four

20 urban renewal programs (Project No. B–78–UR–51–0019).

21 The city of Richmond, Virginia, is hereby relieved of all

22 liability to the Federal Government for such grant and any

23 fees and charges payable in connection with such grant.

24 (d) LOCKPORT TOWNSHIP, ILLINOIS.—The Secretary

25 of Housing and Urban Development shall cancel the indebt-
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1 edness of Lockport Township, Illinois, relating to the public

2 facilities loan for Project No. ILL–11–PFL0112. Lockport

3 Township, Illinois, is hereby relieved of all liability to the

4 Federal Government for the outstanding principal balance

5 on such loan, the amount of accrued interest on such loan,

6 and any other fees and charges payable in connection with

7 such loan.

8 (e) BUDGET COMPLIANCE.—Subsections (c) and (d) of

9 this section shall be effective only to the extent, or in such

10 amounts, as are provided in appropriation Acts.

11 TITLE VII—REGULATORY AND

12 MISCELLANEOUS PROGRAMS

13 SEC. 701. FAIR HOUSING INITIATIVES PROGRAM.

14 Section 561(g) of the Housing and Community Devel15 opment Act of 1987 (42 U.S.C. 3616 note) is amended to

16 read as follows:

17 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

18 are authorized to be appropriated to carry out the provi19 sions of this section $26,000,000 for fiscal year 1995 and

20 $27,000,000 for fiscal year 1996, of which—

21 ‘‘(1) not less than $9,000,000 for fiscal year 1995

22 and $9,000,000 for fiscal year 1996 shall be for pri23 vate enforcement initiatives authorized under sub24 section (b), divided equally between activities speci-
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1 fied under subsection (b)(1) and those specified under

2 subsection (b)(2);

3 ‘‘(2) not less than $3,000,000 for fiscal year 1995

4 and $3,000,000 for fiscal year 1996 shall be for quali5 fied fair housing enforcement organizations author6 ized under subsection (c)(1);

7 ‘‘(3) not less than $7,000,000 for fiscal year 1995

8 and $7,000,000 for fiscal year 1996 shall be for the

9 creation of new fair housing enforcement organiza10 tions authorized under subsection (c)(2); and

11 ‘‘(4) not less than $7,000,000 for fiscal year 1995

12 and $7,000,000 for fiscal year 1996 shall be for edu13 cation and outreach programs authorized under sub14 section (d), to be divided equally between activities

15 specified under subsection (d)(1) and those specified

16 under subsections (d)(2) and (d)(3).

17 Any amount appropriated under this section shall remain

18 available until expended.’’.

19 SEC. 702. HUD PROGRAM MONITORING AND EVALUATION.

20 The first sentence of section 7(r)(6) of the Department

21 of Housing and Urban Development Act (42 U.S.C.

22 3535(r)(6)) is amended to read as follows: ‘‘There are au23 thorized to be appropriated to carry out this subsection such

24 sums as may be necessary for fiscal years 1995 and 1996.’’.
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1 SEC. 703. HUD SALARIES AND EXPENSES.

2 Section 7(s) of the Department of Housing and Urban

3 Development Act (42 U.S.C. 3535(s)) is amended to read

4 as follows:

5 ‘‘(s) AUTHORIZATION OF APPROPRIATIONS FOR SALA6 RIES AND EXPENSES.—Notwithstanding any other provi7 sion of law, there are authorized to be appropriated such

8 sums as may be necessary for each of fiscal years 1995 and

9 1996 for salaries and expenses to carry out the purposes

10 of this section. There is also authorized to be appropriated

11 for fiscal year 1996, $40,000,000, for the training, travel

12 to training, continuing education, professional develop13 ment, and improvement of skills of employees of the Depart14 ment.’’.

15 SEC. 704. USE OF TECHNICAL ASSISTANCE AMOUNTS BY OR

16 FOR HUD STAFF.

17 Section 7 of the Department of Housing and Urban

18 Development Act (42 U.S.C. 3535) is amended by adding

19 at the end the following new subsection:

20 ‘‘(t) USE OF TECHNICAL ASSISTANCE AMOUNTS.—The

21 Secretary may transfer to any of the accounts of the Depart22 ment for salaries and expenses from any other account from

23 which amounts may be drawn for technical assistance such

24 amounts as the Secretary determines are reasonable to re25 imburse such salaries and expenses account, but only if such

26 reimbursement is made for expenditures for the costs of per-
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1 sonal services, travel, and transportation, and other object

2 classifications that are incurred for the technical assistance,

3 training, and related activities provided by or to officials

4 and employees of the Department for a program that is

5 funded from such other account and in which the costs of

6 technical assistance are otherwise eligible for expenditure.

7 Up to 10 percent of the amount transferred may be used

8 for technical assistance, training, travel, and related ex9 penses provided to officials and employees of the Depart10 ment. The authority under this subsection to transfer

11 amounts shall be in addition to any other authority of the

12 Secretary to transfer funds among accounts which exists on

13 the date of the enactment of the Housing and Community

14 Development Act of 1992 or is provided after such date.’’.

15 SEC. 705. ANNUAL REPORT REGARDING REPEAL OF UN16 FUNDED PROGRAMS.

17 Section 8 of the Department of Housing and Urban

18 Development Act (42 U.S.C. 3536) is amended—

19 (1) by inserting ‘‘(a) IN GENERAL.—’’ after

20 ‘‘SEC. 8.’’; and

21 (2) by adding at end the following new sub22 section:

23 ‘‘(b) UNFUNDED PROGRAMS.—In each annual report

24 under this section, the Secretary shall—
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1 ‘‘(1) identify each program under the jurisdic2 tion of the Department for which amounts have been

3 authorized to be appropriated for each of the 3 most

4 recently completed fiscal years but for which, for all

5 3 of such years, amounts have not been appropriated;

6 and

7 ‘‘(2) include proposed legislation repealing the

8 provisions of Federal law authorizing the programs

9 identified pursuant to paragraph (1) and providing

10 requirements for the treatment, after such repeal, of

11 any assistance provided under such provisions before

12 the repeal.’’.

13 SEC. 706. REQUIREMENTS FOR PARTICIPATION OF WOMEN

14 IN CONSTRUCTION ASSISTED UNDER HUD

15 PROGRAMS.

16 The Department of Housing and Urban Development

17 Act (42 U.S.C. 3531 et seq.) is amended by adding at the

18 end the following new section:

19 ‘‘SEC. 15. REQUIREMENTS FOR PARTICIPATION OF WOMEN

20 IN CONSTRUCTION ASSISTED UNDER HUD

21 PROGRAMS.

22 ‘‘(a) BIDS.—Except as provided in subsection (c), each

23 contractor submitting a bid or contract proposal for a cov24 ered construction contract (and each applicant for construc25 tion assistance that will carry out construction) shall in-
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1 clude in the bid or proposal (or application for construction

2 assistance) documentation sufficient to ensure that the con3 tractor will comply with the requirements of this section

4 or certifications that the contractor will make a good faith

5 effort to comply with such requirements. The Secretary

6 shall, by regulation, establish standards for such docu7 mentation and certifications and shall provide for contrac8 tors (and applicants) making certifications to periodically

9 provide to the Secretary evidence of such good faith efforts.

10 ‘‘(b) PARTICIPATION REQUIREMENTS.—Any contrac11 tor who enters into a covered construction contract (and

12 any recipient of construction assistance carrying out con13 struction), and any subcontractor thereof, shall employ and

14 maintain the employment of construction trades workers in

15 construction covered by the covered construction contract

16 (or assisted with the construction assistance)—

17 ‘‘(1) for any contractor or subcontractor (or re18 cipient of construction assistance) whose total number

19 of employees is not less than 6 and not more than 19,

20 not less than 1 woman; and

21 ‘‘(2) for any contractor or subcontractor (or re22 cipient of construction assistance) whose total number

23 of employees is 20 or more, a number of women that

24 is not less than 10 percent of the positions in each of
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1 the construction trades performed by the contractor or

2 subcontractor (or recipient of construction assistance).

3 ‘‘(c) EXEMPTION FOR SMALL CONTRACTORS.—Any

4 contractor (or recipient) whose total number of employees

5 is 5 or less shall not be subject to the requirements of this

6 section.

7 ‘‘(d) DEFINITIONS.—For purposes of this section:

8 ‘‘(1) The term ‘construction assistance’ means

9 any assistance provided under any program adminis10 tered by the Secretary that is used for any construc11 tion, but does not include mortgage insurance under

12 the National Housing Act.

13 ‘‘(2) The term ‘construction trades workers’

14 means workers in any construction trade, includ15 ing—

16 ‘‘(A) brickmasons, stonemasons, and tile set17 ters;

18 ‘‘(B) carpenters;

19 ‘‘(C) electricians and power transmission

20 installers;

21 ‘‘(D) painters, paperhangers, and plasterers;

22 ‘‘(E) plumbers, pipefitters, and steamfitters;

23 ‘‘(F) carpet installers;

24 ‘‘(G) drywall installers and drywall finish25 ers;
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1 ‘‘(H) concrete and terrazzo finishers;

2 ‘‘(I) glaziers;

3 ‘‘(J) insulation workers;

4 ‘‘(K) paving, surfacing, and tamping equip5 ment operators;

6 ‘‘(L) roofers;

7 ‘‘(M) sheetmetal duct installers;

8 ‘‘(N) structural metal workers;

9 ‘‘(O) power equipment operators (including

10 truck drivers, and backhoe, bulldozer, crane,

11 loader, and grader operators);

12 ‘‘(P) sprinkler installers;

13 ‘‘(Q) elevator installers;

14 ‘‘(R) laborers; and

15 ‘‘(S) landscapers.

16 ‘‘(3) The term ‘contractor’ includes firms, part17 nerships, corporations, and any other persons, and

18 any combination thereof.

19 ‘‘(4) The term ‘covered construction contract’

20 means an agreement to provide labor and related ma21 terials, supplies, or services for any construction

22 that—

23 ‘‘(A) involves any construction assistance;

24 and
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1 ‘‘(B) if such construction assistance is pro2 vided—

3 ‘‘(i) under the community development

4 block grant program under title I of the

5 Housing and Community Development Act

6 of 1974 or the HOME Investment Partner7 ships Act, involves a total project cost of not

8 less than $100,000; or

9 ‘‘(ii) under any other program admin10 istered by the Secretary, involves a total

11 project cost of not less than $200,000.

12 ‘‘(5) The term ‘subcontractor’ means any firm,

13 partnership, corporation, or any other person, or any

14 combination thereof, who enters into a contract or

15 agreement with a contractor to perform a substantial

16 specified portion of a covered construction contract.’’.

17 SEC. 707. NOTIFICATION OF HUD FUNDING AWARDS.

18 Section 102(a)(1) of the Department of Housing and

19 Urban Development Reform Act of 1989 (42 U.S.C.

20 3545(a)(1)) is amended by adding at the end the following

21 new sentence: ‘‘Each notice of the availability of assistance

22 shall include an estimate of the date by which the Depart23 ment will notify applicants for such assistance whose appli24 cations or requests for assistance are approved of such ap25 proval.’’.
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1 SEC. 708. EXCLUSION OF GNMA FROM HUD PERSONNEL

2 CEILINGS.

3 Section 502(a) of the Housing Act of 1948 (12 U.S.C.

4 1701c(a)) is amended by adding at the end the following

5 new sentence: ‘‘Notwithstanding any other provision of law,

6 employees of the Government National Mortgage Associa7 tion Department in the Department of Housing and Urban

8 Development shall not be considered employees of the De9 partment for purposes of any limitation on the number of

10 employees of the Department.’’.

11 SEC. 709. HUD RESEARCH AND DEVELOPMENT.

12 The second sentence of section 501 of the Housing and

13 Urban Development Act of 1970 (12 U.S.C. 1701z–1) is

14 amended to read as follows: ‘‘There are authorized to be ap15 propriated to carry out this title $40,000,000 for fiscal year

16 1995 and $42,000,000 for fiscal year 1996.’’.

17 SEC. 710. PREVENTING FRAUD AND ABUSE IN RURAL RENT18 AL HOUSING PROGRAM.

19 (a) IN GENERAL.—Section 904 of the Stewart B.

20 McKinney Homeless Assistance Amendments Act of 1988

21 (42 U.S.C. 3544) is amended—

22 (1) in the heading for the section, by inserting

23 ‘‘AND RURAL RENTAL HOUSING PROGRAM’’ be24 fore the period at the end;

25 (2) by striking paragraph (1) of subsection (a)

26 and inserting the following new paragraph:
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1 ‘‘(1) SECRETARY CONCERNED.—The term ‘Sec2 retary concerned’ means—

3 ‘‘(A) the Secretary of Housing and Urban

4 Development, with respect to programs of the De5 partment of Housing and Urban Development;

6 and

7 ‘‘(B) the Secretary of Agriculture, with re8 spect to the program for rural rental housing

9 under section 515 of the Housing Act of 1949.’’;

10 (3) in subsection (b), in the matter preceding

11 paragraph (1), by inserting after ‘‘income,’’ the fol12 lowing: ‘‘and as a condition of initial or continuing

13 eligibility for participation in the program for rural

14 rental housing under section 515 of the Housing Act

15 of 1949,’’;

16 (4) in subsection (c)(2)(A)—

17 (A) by inserting before ‘‘from the improper’’

18 the following: ‘‘or the program for rural rental

19 housing under section 515 of the Housing Act of

20 1949’’; and

21 (B) by inserting before ‘‘and (in’’ the follow22 ing: ‘‘and the Department of Agriculture’’;

23 (5) in the last sentence of subsection (c)(3)(A), by

24 inserting ‘‘an officer or employee of the Department

25 of Agriculture,’’ after ‘‘Development,’’;
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1 (6) in subsection (e), by inserting after ‘‘Develop2 ment’’ the following: ‘‘or the program for rural rental

3 housing under section 515 of the Housing Act of

4 1949,’’;

5 (7) in subsection (a)(2), in the matter in sub6 section (b) that precedes paragraph (1), and in para7 graphs (1) and (2) of subsection (b), by striking ‘‘the

8 Secretary’’ each place it appears and inserting ‘‘the

9 Secretary concerned’’; and

10 (8) in subsection (b)(3)—

11 (A) by striking ‘‘the Secretary authorizing

12 the Secretary’’ and inserting ‘‘the Secretary con13 cerned authorizing the Secretary concerned’’; and

14 (B) by striking ‘‘of the Secretary’’ and in15 serting ‘‘of the Secretary concerned’’.

16 (b) ACCESS TO RECORDS.—Section 303(i)(1) of the

17 Social Security Act (42 U.S.C. 503(i)(1)) is amended—

18 (1) in subparagraph (A), in the matter preceding

19 clause (i)—

20 (A) by inserting ‘‘or the Department of Ag21 riculture, as applicable,’’ before ‘‘and to rep22 resentatives’’;

23 (B) by inserting ‘‘of Housing and Urban

24 Development or in the program for rural rental
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1 housing under section 515 of the Housing Act of

2 1949’’ after ‘‘by the Department’’; and

3 (C) by inserting ‘‘or the Secretary of Agri4 culture, as applicable’’ before the dash at the end;

5 and

6 (2) in subparagraph (B), by inserting ‘‘or under

7 the program for rural rental housing under section

8 515 of the Housing Act of 1949’’ before the period at

9 the end.

10 (c) RETURN INFORMATION.—Section 6103(l)(7)(D)(ix)

11 of the Internal Revenue Code of 1986 is amended—

12 (1) by inserting ‘‘and the program for rural

13 rental housing under section 515 of the Housing Act

14 of 1949’’ after ‘‘income,’’;

15 (2) by inserting ‘‘or the Secretary of Agriculture,

16 as applicable,’’ after ‘‘Secretary of Housing and

17 Urban Development’’; and

18 (3) by inserting ‘‘or the Department of Agri19 culture’’ before ‘‘with respect to’’.

20 SEC. 711. NATIONAL INSTITUTE OF BUILDING SCIENCES.

21 The second sentence of section 809(i) of the Housing

22 and Community Development Act of 1974 (12 U.S.C.

23 1701j–2(i)) is amended to read as follows: ‘‘In addition to

24 the amounts authorized to be appropriated under the first

25 sentence of this subsection, there are authorized to be appro-
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1 priated to the Institute to carry out the provisions of this

2 section $2,000,000 for fiscal year 1995 and $2,000,000 for

3 fiscal year 1996.’’.

4 SEC. 712. RESIDENTIAL LEAD-BASED PAINT HAZARD RE5 DUCTION.

6 (a) TARGET HOUSING HAZARD REDUCTION.—

7 (1) AUTHORIZATION OF APPROPRIATIONS.—Sec8 tion 1011(p) of the Housing and Community Devel9 opment Act of 1992 (42 U.S.C. 4852(p)) is amended

10 to read as follows:

11 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For the

12 purposes of carrying out this Act, there are authorized to

13 be appropriated $100,000,000 for fiscal year 1995 and

14 $110,000,000 for fiscal year 1996.’’.

15 (2) TECHNICAL ASSISTANCE AND CAPACITY

16 BUILDING.—Section 1011(g) of the Housing and

17 Community Development Act of 1992 (42 U.S.C.

18 4852(g)) is amended—

19 (A) in paragraph (1)—

20 (i) in the first sentence, by inserting

21 before the period at the end the following: ‘‘,

22 by providing technical assistance, either di23 rectly, or indirectly under contracts or oth24 erwise’’; and
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1 (ii) by striking the second sentence;

2 and

3 (B) by striking paragraph (2) and inserting

4 the following new paragraph:

5 ‘‘(2) SET-ASIDE.—Of the total amount approved

6 in appropriation Acts under subsection (p), there

7 shall be set aside to carry out this subsection

8 $3,000,000 for fiscal year 1995 and $3,000,000 for

9 fiscal year 1996.’’.

10 (b) HUD RESEARCH.—

11 (1) CONDUCTING OF RESEARCH.—Section 1052

12 of the Housing and Community Development Act of

13 1992 (42 U.S.C. 4854a) is amended by inserting after

14 ‘‘other Federal agencies,’’ the following: ‘‘either di15 rectly, or indirectly under contract or otherwise,’’.

16 (2) FUNDING.—Section 1053 of the Housing and

17 Community Development Act of 1992 (42 U.S.C.

18 4854b) is amended to read as follows:

19 ‘‘SEC. 1054. FUNDING.

20 ‘‘Of the total amount approved in appropriation Acts

21 under section 1011(p), there shall be set aside to carry out

22 this part $5,000,000 for fiscal year 1995 and $5,000,000

23 for fiscal year 1996.’’.

24 (3) OTHER ACTIVITIES.—Part 1 of subtitle D of

25 title X of the Housing and Community Development
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1 Act of 1992 (42 U.S.C. 4854 et seq.) is amended by

2 inserting after section 1052 the following new section:

3 ‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI4 TIES.

5 ‘‘The Secretary may use amounts available to carry

6 out this part to undertake, either directly, or indirectly

7 under contract or otherwise, pursuant to title V of the Hous8 ing and Urban Development Act of 1970, such studies, tests

9 (including pilot tests of new or revised programs), evalua10 tions, demonstrations, education of the public, and prepara11 tion of training materials, as are consistent with the pur12 poses of this Act.’’.

13 SEC. 713. GAO STUDY OF LEAD-BASED PAINT DETECTION

14 TECHNOLOGIES AND TENANT NOTIFICATION

15 PROCEDURES.

16 (a) IN GENERAL.—The Comptroller General of the

17 United States shall conduct a study of the lead-based paint

18 detection and abatement programs of the Department of

19 Housing and Urban Development, which shall include—

20 (1) analysis of existing lead-based paint detec21 tion technologies including an analysis of the effec22 tiveness of x-ray fluorescence analyzers (in this sec23 tion referred to as ‘‘XRF’’);
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1 (2) evaluation of the qualifications of XRF con2 tractors and whether national certification standards

3 should be imposed;

4 (3) analysis of whether the 1.0 mg/cm2 action

5 level for lead paint, as directed in section 302 of the

6 Lead-Based Paint Poisoning Prevention Act, is too

7 high to adequately protect tenant health, and in con8 duction such analysis, the Comptroller General shall

9 consult with the Consumer Product Safety Commis10 sion, the Department of Health and Human Services,

11 and the Environmental Protection Agency; and

12 (4) evaluation of the effectiveness of tenant noti13 fication procedures of the Department of Housing and

14 Urban Development pursuant to a finding of lead15 based paint in public housing.

16 (b) REPORT.—Not later than the expiration of the 6-

17 month period beginning on the date of the enactment of this

18 Act, the Comptroller General shall submit to the Congress

19 a report describing the results of the study required by sub20 section (a).

21 SEC. 714. CIVIL MONEY PENALTIES FOR VIOLATIONS OF

22 HOME MORTGAGE DISCLOSURE ACT BY

23 NONSUPERVISED MORTGAGEES.

24 Section 305 of the Home Mortgage Disclosure Act of

25 1975 (12 U.S.C. 2804) is amended—
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1 (1) in subsection (b)—

2 (A) in paragraph (2), by inserting ‘‘and’’ at

3 the end;

4 (B) in paragraph (3), by striking ‘‘; and’’

5 at the end and inserting a period; and

6 (C) by striking paragraph (4);

7 (2) by redesignating subsection (c) as subsection

8 (d); and

9 (3) by inserting after subsection (b) the following

10 new subsection:

11 ‘‘(c) POWERS OF THE SECRETARY OF HOUSING AND

12 URBAN DEVELOPMENT.—

13 ‘‘(1) IN GENERAL.—The Secretary of Housing

14 and Urban Development (in this subsection referred

15 to as the ‘Secretary’) shall enforce compliance with

16 the requirements imposed under this title with regard

17 to lending institutions not described in subsection (b).

18 ‘‘(2) CIVIL MONEY PENALTIES.—Pursuant to

19 paragraph (1) of this subsection, the Secretary may

20 impose a civil money penalty for failure to comply

21 with the requirements of this title.

22 ‘‘(3) AMOUNT OF PENALTY.—The amount of the

23 penalty, as determined by the Secretary, may not ex24 ceed $5,000 for each violation, except that the maxi25 mum penalty for all violations by any particular
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1 lending institution during any 1-year period shall

2 not exceed $1,000,000.

3 ‘‘(4) VIOLATIONS FOR WHICH A PENALTY MAY BE

4 IMPOSED.—A civil money penalty may be imposed

5 for the late submission of a report, failure to submit

6 a report, submission of an illegible report, submission

7 of an erroneous report, and failure to submit a cor8 rected report for a report that was illegible or erro9 neous.

10 ‘‘(5) AGENCY PROCEDURES.—

11 ‘‘(A) ESTABLISHMENT.—The Secretary shall

12 establish standards and procedures governing the

13 imposition of civil money penalties under this

14 section. The standards and procedures shall pro15 vide for the Secretary to make the determination

16 to impose the penalty or to use an administra17 tive entity (such as the Mortgagee Review Board,

18 established pursuant to section 202(c) of the Na19 tional Housing Act) to make the determination;

20 shall provide for the imposition of a penalty

21 only after the lending institution has been given

22 an opportunity for a hearing on the record; and

23 may provide for review by the Secretary of a de24 termination or order, or interlocutory ruling,

25 arising from a hearing.
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1 ‘‘(B) FINAL ORDERS.—If no hearing is re2 quested within 15 days of receipt of the notice of

3 opportunity for hearing, the imposition of the

4 penalty shall constitute a final and unappealable

5 determination. If the Secretary reviews the deter6 mination or order, the Secretary may affirm,

7 modify, or reverse that determination or order. If

8 the Secretary does not review the determination

9 or order within 90 days of the issuance of the de10 termination or order, the determination or order

11 shall be final.

12 ‘‘(C) FACTORS IN DETERMINING AMOUNT OF

13 PENALTY.—In determining the amount of a pen14 alty under this subsection, consideration shall be

15 given to such factors as the gravity of the offense,

16 any history of prior offenses, ability to pay the

17 penalty, deterrence of future violations, and such

18 other factors as the Secretary may determine to

19 be appropriate.

20 ‘‘(D) REVIEWABILITY OF IMPOSITION OF

21 PENALTY.—The Secretary’s determination or

22 order imposing a penalty under this subsection

23 shall not be subject to review, except as provided

24 in this subsection.
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1 ‘‘(6) JUDICIAL REVIEW OF AGENCY DETERMINA2 TION.—

3 ‘‘(A) IN GENERAL.—After exhausting all ad4 ministrative remedies established by the Sec5 retary under this subsection, a lending institu6 tion against whom the Secretary has imposed a

7 civil money penalty under this subsection may

8 obtain a review of the penalty as may be ad9 dressed in the notice of determination to impose

10 a penalty in the appropriate court of appeals of

11 the United States, by filing in such court, within

12 20 days after the entry of such order or deter13 mination, a written petition praying that the

14 Secretary’s determination or order be modified

15 or set aside in whole or in part.

16 ‘‘(B) OBJECTIONS NOT RAISED IN HEAR17 ING.—The court shall not consider any objection

18 that was not raised in the hearing conducted

19 pursuant to this subsection unless a demonstra20 tion is made of extraordinary circumstances

21 causing the failure to raise the objection. If any

22 party demonstrates to the satisfaction of the

23 court that additional evidence not presented at

24 the hearing is material and that there were rea25 sonable grounds for the failure to present such
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1 evidence at the hearing, the court shall remand

2 the matter to the Secretary for consideration of

3 the additional evidence.

4 ‘‘(C) SCOPE OF REVIEW.—The decisions,

5 findings, and determinations of the Secretary

6 shall be reviewed pursuant to section 706 of title

7 5, United States Code.

8 ‘‘(D) ORDER TO PAY PENALTY.—Notwith9 standing any other provision of law, in any such

10 review, the court shall have the power to order

11 payment of the penalty imposed by the Sec12 retary.

13 ‘‘(7) ACTION TO COLLECT PENALTY.—If a lend14 ing institution fails to comply with the Secretary’s

15 determination or order imposing a civil money pen16 alty under this subsection, after the determination or

17 order is no longer subject to review as provided by

18 this subsection, the Secretary may bring an action in

19 an appropriate United States district court to obtain

20 a monetary judgment against the lending institution.

21 In such an action, the validity and appropriateness

22 of the Secretary’s determination or order imposing

23 the penalty shall not be subject to review. The mone24 tary judgment may, in the court’s discretion, include
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1 the attorneys fees and other expenses incurred by the

2 United States in connection with the action.

3 ‘‘(8) SETTLEMENT BY SECRETARY.—The Sec4 retary may compromise, modify, or remit any civil

5 money penalty which may be imposed under this sub6 section.

7 ‘‘(9) REGULATIONS.—The Secretary shall issue

8 such regulations as the Secretary deems appropriate

9 to implement this subsection.

10 ‘‘(10) DEPOSIT OF PENALTIES IN TREASURY.—

11 All civil money penalties collected under this sub12 section shall be deposited in the Miscellaneous Re13 ceipts Account of the Treasury.’’.

14 SEC. 715. REMOVAL OF REGULATORY BARRIERS TO AF15 FORDABLE HOUSING.

16 (a) PURPOSES.—Section 1202 of the Housing and

17 Community Development Act of 1992 (42 U.S.C. 12705a)

18 is amended—

19 (1) in paragraph (1), by striking ‘‘State and

20 local governments to further identify and remove’’

21 and inserting ‘‘the further identification and removal

22 of’’; and

23 (2) by striking paragraph (2) and inserting the

24 following new paragraph:
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1 ‘‘(2) to encourage the establishment of partner2 ships between local governments and builders and de3 velopers of affordable housing to facilitate develop4 ment of innovative land use and building practices to

5 overcome regulatory barriers.’’.

6 (b) GRANTS.—Section 1204 of the Housing and Com7 munity Development Act of 1992 (42 U.S.C. 12705c) is

8 amended—

9 (1) by striking subsection (a) and inserting the

10 following new subsection:

11 ‘‘(a) IN GENERAL.—The amounts available for use

12 under this Act may be used for grants under subsections

13 (b) and (c), for evaluation of grantees, and for contracts

14 with intermediaries for the administration of such grants.’’;

15 (2) in subsection (b)—

16 (A) in the heading for the subsection, by

17 striking ‘‘GRANTS’’ and inserting ‘‘AND RE18 GIONAL STRATEGIES FOR BARRIER REMOVAL’’;

19 (B) in matter preceding paragraph (1), by

20 inserting after ‘‘States’’ the following: ‘‘, consor21 tia of units of general local government, associa22 tions of units of general local government, and

23 metropolitan or regional governments’’;
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1 (C) in paragraph (3), by striking ‘‘a State

2 program to reduce State and local’’ and insert3 ing ‘‘State or regional programs to reduce’’;

4 (D) in paragraph (4), by inserting ‘‘or

5 local’’ after ‘‘State’’;

6 (E) in paragraph (5), by striking ‘‘State’’;

7 and

8 (F) by striking paragraph (6) and inserting

9 the following new paragraph:

10 ‘‘(6) developing proposed legislation or adminis11 trative policies for enactment by the State or local

12 government addressing expanded housing opportunity

13 and barrier removal, including implementation of ac14 tive programs encouraging housing opportunities for

15 low- and moderate-income families through activities

16 such as comprehensive planning requirements, metro17 politan fair-share requirements for affordable housing,

18 inclusionary zoning legislation, establishment of new

19 land development standards, and review of zoning

20 standards and plans.’’;

21 (3) by striking subsection (c) and inserting the

22 following new subsection:

23 ‘‘(c) BARRIER REMOVAL DEMONSTRATION.—The Sec24 retary may make grants to units of general local govern25 ment to encourage the establishment of partnerships between
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1 local governments and builders and developers under which

2 the local government commits to modify existing land use

3 and building practices and the builder or developer agrees

4 to use innovative land planning and development ap5 proaches to build affordable housing in ways which would

6 overcome regulatory barriers. Assistance under this sub7 section may be used to assist the builder or developer obtain

8 additional architectural, engineering, and land planning

9 services to build affordable housing and to provide assist10 ance to the locality in providing specialized review and in

11 meeting technical responsibilities resulting from the re12 moval of the regulatory barriers. During and after comple13 tion of these demonstration projects, the Secretary may

14 evaluate the cost impact of the modified regulations and

15 the long-term impact of the project on regulatory reform.’’;

16 (4) by striking subsections (d) through (g) and

17 inserting the following new subsection:

18 ‘‘(d) APPLICATION AND SELECTION.—

19 ‘‘(1) APPLICATION.—The Secretary shall provide

20 for the form and manner of applications for grants

21 under this section, which in the case of grants under

22 subsection (c), shall include resolutions and other evi23 dence by the applicable regulating bodies evidencing

24 commitments—
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1 ‘‘(A) to waive or modify existing applicable

2 zoning, building code, site planning, and other

3 related development requirements;

4 ‘‘(B) to approve the project based upon an

5 individual review of the technical data, site

6 plans, and architectural submissions of the

7 project, utilizing the most recent research and

8 practices of building engineering and land devel9 opment; and

10 ‘‘(C) to accelerate development review and

11 processing.

12 ‘‘(2) CRITERIA FOR APPROVAL.—The Secretary

13 shall establish criteria for approval of applications

14 under this subsection and for the competitive selection

15 of grantees under this section.’’;

16 (5) in subsection (h), by striking ‘‘State and unit

17 of general local government receiving’’ and inserting

18 ‘‘recipient of’’; and

19 (6) by redesignating subsections (h) and (i) as

20 subsections (e) and (f), respectively.

21 (c) REPORTS.—Section 1207 of the Housing and Com22 munity Development Act of 1992 (42 U.S.C. 12705a note)

23 is amended by striking ‘‘this Act’’ and inserting ‘‘the Hous24 ing and Community Development Act of 1994’’.
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1 (d) CDBG SPECIAL PURPOSE GRANTS.—Section

2 107(b) of the Housing and Community Development Act

3 of 1974 (42 U.S.C. 5307(b)) is amended by inserting at the

4 end the following new paragraph:

5 ‘‘(9) to eligible grantees, and for other purposes,

6 under the Removal for Regulatory Barriers to Afford7 able Housing Act of 1992.’’.

8 SEC. 716. NEW TOWNS DEMONSTRATION PROGRAM FOR

9 EMERGENCY RELIEF OF LOS ANGELES.

10 (a) INSURANCE AUTHORITY.—The first sentence of sec11 tion 1104(d) of the Housing and Community Development

12 Act of 1992 (42 U.S.C. 5318 note) is amended to read as

13 follows: ‘‘To the extent provided in appropriation Acts, the

14 Secretary shall use any authority provided pursuant to sec15 tion 531(b) of the National Housing Act to enter into com16 mitments to insure loans and mortgages under this section

17 in fiscal years 1995 and 1996 with an aggregate principal

18 amount not exceeding such sums as may be necessary to

19 carry out the demonstration under this title.’’.

20 (b) SECOND MORTGAGE ASSISTANCE.—Section

21 1105(e) of the Housing and Community Development Act

22 of 1992 (42 U.S.C. 5318 note) is amended to read as follows:

23 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are

24 authorized to be appropriated for fiscal years 1995 and
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1 1996 such sums as may be necessary for providing assist2 ance under this section.’’.

3 (c) COMMUNITY DEVELOPMENT ASSISTANCE.—Section

4 1106(h) of the Housing and Community Development Act

5 of 1992 (42 U.S.C. 5318 note) is amended to read as follows:

6 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated for fiscal years 1995 and

8 1996 such sums as may be necessary for assistance under

9 this section.’’.

10 SEC. 717. AUTHORIZATION OF APPROPRIATIONS FOR PUB11 LIC SERVICES FACILITY.

12 (a) AUTHORIZATION OF APPROPRIATIONS.—There are

13 authorized to be appropriated for fiscal year 1995 such

14 sums as may be necessary for a grant by the Secretary of

15 Housing and Urban Development to the City of Springfield,

16 Massachusetts (in this section referred to as the ‘‘City’’),

17 for the redevelopment of a facility formerly used as a United

18 States Post Office for use as a consolidated facility for city

19 public services in accordance with the plans, budgets, and

20 timetables for such facility developed by the City.

21 (b) CITY CONTRIBUTION.—Notwithstanding any other

22 provision of this section, the Secretary may not make any

23 amount provided pursuant to this section available to the

24 City unless the City contributes for redevelopment of the

25 facility referred to in subsection (a) an amount constituting
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1 not less than 25 percent of the total cost of the redevelop2 ment project.

3 (c) AVAILABILITY OF AMOUNTS.—Of any amounts ap4 propriated pursuant to this section, the Secretary shall pro5 vide $2,500,000 to the City in fiscal year 1995 and the re6 mainder shall remain available until the end of fiscal 1996

7 and shall be provided to the City in such year.

8 (d) REPORTS.—The Secretary may require the City to

9 submit such reports and other information as the Secretary

10 considers necessary to ensure that the amounts provided

11 under this section are used in accordance with this section

12 and that amounts are provided by the City in accordance

13 with subsection (b).

14 SEC. 718. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

15 There is authorized to be appropriated for assistance

16 for the National American Indian Housing Council

17 $1,000,000 for fiscal year 1995 and $1,000,000 for fiscal

18 year 1996, for providing training and technical assistance

19 to Indian Housing Authorities.

20 SEC. 719. HOUSING ASSISTANCE COUNCIL.

21 There is authorized to be appropriated for assistance

22 for the Housing Assistance Council $5,000,000 for fiscal

23 year 1995 and $5,000,000 for fiscal year 1996, for provid24 ing training, technical assistance, and financial assistance

25 to develop affordable housing in rural areas.
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1 SEC. 720. DEMONSTRATION PROGRAM FOR OUTREACH TO

2 AVOID DISCONNECTION OF UTILITIES.

3 (a) ACTION OF SECRETARY.—The Secretary of Hous4 ing and Urban Development shall provide technical advice

5 and assistance to Maryland Energy Advocates to establish

6 and carry out a program under (b).

7 (b) OUTREACH PROGRAM.—The program under this

8 subsection shall be a program, carried out by Maryland En9 ergy Advocates, to—

10 (1) identify low-income families living in Balti11 more, Maryland, and the surrounding areas, includ12 ing low-income families residing in housing for which

13 assistance is provided by the Federal Government,

14 whose electricity or other utility services have been

15 disconnected because of failure to pay amounts owed;

16 (2) provide counseling and advice to such fami17 lies regarding utility payments, family budgeting,

18 sources and programs of assistance for utility pay19 ments, and such other matters as may be necessary to

20 avoid the disconnection of utility service in the future;

21 and

22 (3) determine the most effective manners of iden23 tifying low-income families in need of advice or as24 sistance to avoid disconnection of utility services and

25 the most effective actions to help low-income families

26 avoid such disconnection.
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1 (c) REPORT.—After consultation with Maryland En2 ergy Advocates regarding the implementation and results

3 of the program under subsection (b), but not later than the

4 expiration of the 18-month period beginning on the date

5 of the enactment of this Act, the Secretary of Housing and

6 Urban Development shall submit a report to the Congress

7 that—

8 (1) describes the program and the activities car9 ried out under the program;

10 (2) describes the extent to which the utility serv11 ices of low-income families are disconnected; and

12 (3) identifies the most effective manners of iden13 tifying low-income families in need of advice or as14 sistance to avoid disconnection of utility services and

15 the most effective actions to help low-income families

16 avoid such disconnection, including any such actions

17 appropriate for the Federal Government.

18 SEC. 721. FEDERAL DEPOSIT INSURANCE CORPORATION AF19 FORDABLE HOUSING PROGRAM.

20 (a) REAUTHORIZATION.—Section 40(b) of the Federal

21 Deposit Insurance Act (12 U.S.C. 1831q(b)) is amended—

22 (1) in paragraph (1), by striking ‘‘during’’ and

23 all that follows through ‘‘paragraph (2)(A)’’ and in24 serting ‘‘until the end of fiscal year 1997’’;
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1 (2) in paragraph (2)(A), in the matter preceding

2 clause (i), by striking ‘‘3-year’’; and

3 (3) in paragraph (2)(C), by striking ‘‘3-year’’.

4 (b) FACILITATION OF PROGRAM.—Section 40 of the

5 Federal Deposit Insurance Act is amended by adding at

6 the end the following new subsection:

7 ‘‘(r) FACILITATION OF PROGRAM.—Notwithstanding

8 any provision of this section or any other provision of law,

9 the Corporation shall be considered to be in compliance with

10 this section if (in the sole discretion of the Corporation)

11 the Corporation at any time modifies, amends, or waives

12 any provisions of this section to maximize the efficient use

13 of amounts appropriated to carry out this section. The Cor14 poration shall not be subject to suit for any failure to com15 ply with the requirements of this section.’’.

16 SEC. 722. STATE AGENCIES AS SURETIES.

17 Section 9304 of title 31, United States Code, is amend18 ed by adding at the end the following new subsection:

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

20 any financing authority established by any State, which

21 meets the requirements of paragraphs (2) and (3) of sub22 section (a) may be treated as a surety corporation for pur23 poses of this chapter.’’.
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1 TITLE VIII—HOUSING PRO2 GRAMS UNDER STEWART B.

3 MCKINNEY HOMELESS AS4 SISTANCE ACT

5 SEC. 801. SHORT TITLE.

6 This title may be cited as the ‘‘Stewart B. McKinney

7 Homeless Housing Assistance Amendments Act of 1994’’.

8 Subtitle A—Housing Assistance

9 CHAPTER 1—REORGANIZATION OF CER10 TAIN MCKINNEY ACT HOUSING PROVI11 SIONS

12 SEC. 811. FLEXIBLE GRANT PROGRAM.

13 Title IV of the Stewart B. McKinney Homeless Assist14 ance Act (42 U.S.C. 11361 et seq.) is amended—

15 (1) by striking subtitles A, B, C, D, and F;

16 (2) by striking the headings for subtitles E and

17 G;

18 (3) by redesignating sections 441 (as amended by

19 the preceding provisions of this Act), 491, and 592

20 (as added by section 1414 of the Housing and Com21 munity Development Act of 1992) as sections 451,

22 453, and 454, respectively;

23 (4) by striking sections 442 and 443; and

24 (5) by inserting after the heading for the title the

25 following:
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1 ‘‘Subtitle A—Flexible Grant

2 Program

3 ‘‘CHAPTER 1—GENERAL PROVISIONS

4 ‘‘SEC. 401. PURPOSES.

5 ‘‘The purposes of this subtitle are to—

6 ‘‘(1) expand and reorganize the Federal commit7 ment to alleviate homelessness by providing States,

8 Indian tribes, and localities with the resources to

9 more efficiently and effectively design a comprehen10 sive system to address the shelter, service, and perma11 nent housing needs of homeless individuals and fami12 lies in the United States;

13 ‘‘(2) help very low-income families avoid becom14 ing homeless;

15 ‘‘(3) meet the emergency shelter needs of homeless

16 persons and families;

17 ‘‘(4) provide transitional or specialized perma18 nent housing to facilitate the movement of homeless

19 persons and families to independent living;

20 ‘‘(5) provide supportive services to help homeless

21 persons and families lead independent and dignified

22 lives;

23 ‘‘(6) encourage the cooperation and participation

24 of the States and units of general local government,

25 together with private nonprofit organizations, in
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1 planning and implementing comprehensive homeless

2 assistance programs;

3 ‘‘(7) reduce the costs to States, units of general

4 local government, and private nonprofit organizations

5 in applying for and using Federal housing assistance

6 for families and persons who are homeless; and

7 ‘‘(8) begin meeting the needs of most of the Na8 tion’s homeless population through the existing Fed9 eral programs providing basic assistance for low-in10 come families and persons.

11 ‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

12 ‘‘There are authorized to be appropriated—

13 ‘‘(1) $635,000,000 for fiscal year 1995 for grants

14 in accordance with section 813 of the Housing and

15 Community Development Act of 1994; and

16 ‘‘(2) $786,620,000 for fiscal year 1996 for grants

17 under this subtitle.

18 Any amounts appropriated pursuant to this section shall

19 remain available until expended.

20 ‘‘SEC. 403. DEFINITIONS.

21 ‘‘For purposes of this subtitle, the following definitions

22 shall apply:

23 ‘‘(1) The term ‘allocation unit of general local

24 government’ means a metropolitan city and an urban

25 county.
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1 ‘‘(2) The term ‘applicant’ means an eligible

2 grantee that submits an application under section

3 408 for a grant under this subtitle.

4 ‘‘(3) The term ‘disability’ means—

5 ‘‘(A) a disability as defined in section 223

6 of the Social Security Act;

7 ‘‘(B) to be determined to have, pursuant to

8 regulations issued by the Secretary, a physical,

9 mental, or emotional impairment which (i) is

10 expected to be a long-continued and indefinite

11 duration, (ii) substantially impedes an individ12 ual’s ability to live independently, and (iii) of

13 such a nature that such ability could be im14 proved by more suitable housing conditions;

15 ‘‘(C) a developmental disability as defined

16 in section 102 of the Developmental Disabilities

17 Assistance and Bill of Rights Act; or

18 ‘‘(D) the disease of acquired

19 immunodeficiency syndrome or any conditions

20 arising from the etiologic agency for acquired

21 immunodeficiency syndrome.

22 Subparagraph (D) shall not be construed to limit eli23 gibility under subparagraphs (A) through (C) or the

24 provisions referred to in subparagraphs (A) through

25 (C).
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1 ‘‘(4) The term ‘eligible grantee’ means—

2 ‘‘(A) an allocation unit of general local gov3 ernment, Indian Tribe, or insular area that

4 elects to administer a grant under section

5 410(a)(1);

6 ‘‘(B) a public agency or a private nonprofit

7 organization (or a consortium of such organiza8 tions) designated by the Secretary under section

9 410(a)(3) to administer grant amounts for an

10 allocation unit of general local government, In11 dian tribe, or insular area;

12 ‘‘(C) an entity eligible to receive grant

13 amounts from the Secretary under section

14 410(a)(4);

15 ‘‘(D) a State that elects under section

16 410(b)(1)(A) to administer a grant;

17 ‘‘(E) a unit of general local government se18 lected under section 410(b)(5) to receive grant

19 amounts from the Secretary; and

20 ‘‘(F) a private nonprofit organization se21 lected under section 410(b)(4) to receive grant

22 amounts from the Secretary.

23 ‘‘(5) The term ‘families’ has the same meaning

24 given the term under section 3(b) of the United States

25 Housing Act of 1937.
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1 ‘‘(6) The term ‘grantee’ means—

2 ‘‘(A) an allocation unit of general local gov3 ernment, Indian Tribe, or insular area that re4 ceives a grant under this subtitle and admin5 isters the grant under section 410(a)(1);

6 ‘‘(B) an allocation unit of general local gov7 ernment, Indian tribe, or insular area that re8 ceives a grant under this subtitle and designates

9 a public agency or private nonprofit organiza10 tion (or a consortium of such organizations) to

11 administer grant amounts for the jurisdiction

12 under section 410(a)(2);

13 ‘‘(C) a public agency or a private nonprofit

14 organization (or a consortium or such organiza15 tions) designated by the Secretary under section

16 410(a)(3) to administer grant amounts for an

17 allocation unit of general local government, In18 dian tribe, or insular area, and that receives

19 grant amounts under this subtitle;

20 ‘‘(D) an entity that receives grant amounts

21 from the Secretary under section 410(a)(4);

22 ‘‘(E) a State that receives grant amounts

23 under this subtitle and administers such

24 amounts under section 410(b)(1)(A);
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1 ‘‘(F) a unit of general local government that

2 receives grant amounts from the Secretary under

3 section 410(b)(5); and

4 ‘‘(G) a private nonprofit organization that

5 receives grant amounts from the Secretary under

6 section 410(b)(4);

7 ‘‘(7) The term ‘homeless family’ means a group

8 of one or more related individuals who are homeless

9 individuals.

10 ‘‘(8) The term ‘Indian tribe’ means any Indian

11 tribe, band, group, and nation, including Alaska In12 dians, Aleuts, and Eskimos, and any Alaskan Native

13 Village, of the United States, which is considered an

14 eligible recipient under the Indian Self-Determination

15 and Education Assistance Act or was considered an

16 eligible recipient under chapter 67 of title 31, United

17 States Code, before the repeal of such chapter.

18 ‘‘(9) The term ‘insular area’ means the Virgin

19 Islands, Guam, American Samoa, and the Common20 wealth of the Northern Mariana Islands.

21 ‘‘(10) The term ‘low-demand services and refer22 rals’ means the provision of health care, mental

23 health, substance abuse, and other supportive services

24 and referrals for services in a noncoercive manner,

25 which may include medication management, edu-
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1 cation, counseling, job training, and assistance in ob2 taining entitlement benefits and in obtaining other

3 supportive service including mental health treatment

4 and substance abuse treatment.

5 ‘‘(11) The term ‘metropolitan city’ has the mean6 ing given the term in section 102(a) of the Housing

7 and Community Development Act of 1974.

8 ‘‘(12) The term ‘operating costs’ means expenses

9 of operating any housing assisted under this subtitle

10 with respect to—

11 ‘‘(A) the administration, maintenance, re12 pair, and security of such housing;

13 ‘‘(B) utilities, fuels, furnishings, and equip14 ment for such housing; and

15 ‘‘(C) the conducting of the assessments of

16 and the provision of supportive services to the

17 residents of such housing.

18 ‘‘(13) The term ‘outpatient health services’ means

19 outpatient health care, outpatient mental health serv20 ices, outpatient substance abuse services, case manage21 ment services and child immunization.

22 ‘‘(14) The term ‘private nonprofit organization’

23 means an organization—
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1 ‘‘(A) no part of the net earnings of which

2 inures to the benefit of any member, founder,

3 contributor, or individual;

4 ‘‘(B) that has a voluntary board;

5 ‘‘(C) that has an accounting system or has

6 designated a fiscal agent in accordance with re7 quirements established by the Secretary; and

8 ‘‘(D) that practices nondiscrimination in

9 the provision of assistance.

10 ‘‘(15) The term ‘project’ means a structure or a

11 portion of a structure that is acquired or rehabilitated

12 with assistance provided under this subtitle or with

13 respect to which the Secretary provides technical as14 sistance or annual payments for operation costs.

15 ‘‘(16) The term ‘project sponsor’ means an entity

16 that—

17 ‘‘(A) provides housing or assistance for

18 homeless individuals or families by carrying out

19 eligible activities under chapter 2 that are as20 sisted under this subtitle; and

21 ‘‘(B) meets such minimum standards as the

22 Secretary considers appropriate.

23 ‘‘(17) The term ‘recipient’ means a grantee

24 (other than a State distributing grant amounts to

25 State recipients) and a State recipient.
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1 ‘‘(18) The term ‘Secretary’ means the Secretary

2 of Housing and Urban Development.

3 ‘‘(19) The term ‘State’ means a State of the

4 United States and the Commonwealth of Puerto Rico,

5 or any agency or instrumentality thereof that is es6 tablished pursuant to legislation and designated by

7 the chief executive to act on behalf of the jurisdiction

8 with regard to provisions of this subtitle.

9 ‘‘(20) The term ‘State recipient’ means—

10 ‘‘(A) a unit of general local government

11 within a State (other than an allocation unit of

12 general local government) that receives grant

13 amounts from the State under section 410(b)(3);

14 and

15 ‘‘(B) a private nonprofit organization that

16 receives grant amounts from a State under sec17 tion 410(b)(4).

18 ‘‘(21)(A) The term ‘supportive services’ means

19 assistance that—

20 ‘‘(i) addresses the special needs of homeless

21 person, such as deinstitutionalized persons, fami22 lies with children, persons with mental disabil23 ities, other persons with disabilities, the elderly,

24 and veterans intended to be served by a project;

25 and
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1 ‘‘(ii) assists in accomplishing the purposes

2 of the different types of housing for the homeless

3 eligible for assistance under this subtitle.

4 ‘‘(B) Such term includes—

5 ‘‘(i) food services, child care, substance

6 abuse treatment, assistance in obtaining perma7 nent housing, outpatient health services, employ8 ment counseling, nutritional counseling, security

9 arrangements for the protection of residents of

10 facilities to assist the homeless, and such other

11 services essential for maintaining or moving to12 ward independent living as the Secretary deter13 mines to be appropriate; and

14 ‘‘(ii) assistance to homeless persons in ob15 taining other Federal, State, and local assistance

16 available for such individuals, including public

17 assistance benefits, mental health benefits, em18 ployment counseling, and medical assistance.

19 ‘‘(C) Such term does not include the provi20 sion of major medical equipment.

21 ‘‘(D) All or part of the supportive services

22 may be provided directly by the project sponsor

23 or by arrangements with other public or private

24 service providers.
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1 ‘‘(22) The term ‘unit of general local government’

2 means—

3 ‘‘(A) a city, town, township, county, parish,

4 village, or other general purpose political sub5 division of a State;

6 ‘‘(B) the District of Columbia; and

7 ‘‘(C) any agency or instrumentality thereof

8 that is established pursuant to legislation and

9 designated by the chief executive to act on behalf

10 of the jurisdiction with regard to provisions of

11 this subtitle.

12 The term includes a consortium of geographically con13 tiguous units of general local government if the Sec14 retary determines that the consortium—

15 ‘‘(i) has sufficient authority and adminis16 trative capability to carry out the purposes of

17 this subtitle on behalf of its member jurisdic18 tions; and

19 ‘‘(ii) will, according to a written certifi20 cation by the State (or State, if the consortium

21 includes jurisdictions in more than one State),

22 direct its activities to alleviation of problems of

23 homeless individuals or families within the State

24 or States.
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1 ‘‘(23) The term ‘urban county’ has the meaning

2 given the term in section 102(a) of the Housing and

3 Community Development Act of 1974.

4 ‘‘(24) The term ‘very low-income families’ has

5 the same meaning given the term under section 104

6 of the Cranston-Gonzalez National Affordable Hous7 ing Act.

8 ‘‘SEC. 404. PROVISION OF GRANTS.

9 ‘‘(a) AUTHORITY AND USE.—The Secretary may make

10 grants to eligible grantees in accordance with the provisions

11 of this subtitle. Grants under this subtitle may be used

12 only—

13 ‘‘(1) to carry out activities under chapter 2 for

14 assisting homeless individuals and families that are

15 conducted to provide comprehensive homeless assist16 ance required under section 405; and

17 ‘‘(2) for administrative expenses, to the extent

18 provided in section 436.

19 ‘‘(b) GENERAL RULE FOR AWARD OF GRANTS.—Ex20 cept as provided in subsection (c), the Secretary shall make

21 grants using amounts appropriated under section 402 in

22 the manner provided in this subtitle.

23 ‘‘(c) INSUFFICIENT APPROPRIATIONS.—

24 ‘‘(1) TRIGGER.—If the amounts appropriated

25 pursuant to section 402 for any fiscal year are less
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1 than 50 percent of the amount authorized to be ap2 propriated under such section for the year, the Sec3 retary shall use such amounts to make grants under

4 the provisions of this title as in effect immediately be5 fore the enactment of the Housing and Community

6 Development Act of 1994.

7 ‘‘(2) GRANT REQUIREMENTS.—The Secretary

8 shall establish requirements for grants made under

9 this subsection, as the Secretary considers appro10 priate, that are additional or alternative to the re11 quirements under the provisions of this title as in ef12 fect immediately before the enactment of the Housing

13 and Community Development Act of 1994.

14 ‘‘(3) GRANT CRITERIA.—The criteria for award15 ing grants under this subsection shall include—

16 ‘‘(A) the extent to which there is a need for

17 assistance for homeless individuals and families

18 in the jurisdiction in which the grant will be

19 used;

20 ‘‘(B) the extent to which the activities pro21 posed to be carried out with grant amounts will

22 further the provision of comprehensive homeless

23 assistance required under section 405(b)(1);

24 ‘‘(C) the extent to which private nonprofit

25 organizations providing assistance to homeless
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1 individuals and families in the jurisdiction have

2 been, and will be, included in planning for the

3 receipt of assistance under this subtitle, the de4 velopment of the application under section 408,

5 and the execution of the proposed activities; and

6 ‘‘(D) such other criteria as the Secretary

7 considers appropriate to further the purposes of

8 this subsection and this subtitle.

9 ‘‘(4) SET ASIDE FOR INDIAN TRIBES AND INSU10 LAR AREAS.—In making grants under this subsection,

11 the Secretary may to set aside such amounts as the

12 Secretary considers appropriate for grants for Indian

13 tribes and insular areas.

14 ‘‘SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

15 ‘‘(a) ESTABLISHMENT AND MAINTENANCE.—Each ap16 plicant shall, based on information provided in the current

17 comprehensive affordable housing strategy for the appro18 priate jurisdiction under section 105 of the Cranston-Gon19 zalez National Affordable Housing Act or such other plan

20 as the Secretary may prescribe, use assistance provided

21 under this subtitle in a manner that ensures that com22 prehensive homeless assistance is established and main23 tained within the jurisdiction of the applicant.
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1 ‘‘(b) REQUIREMENTS.—For purposes of this subtitle,

2 comprehensive homeless assistance required under this sec3 tion shall include—

4 ‘‘(1) providing a system of outreach and assess5 ment for—

6 ‘‘(A) determining whether an individual or

7 family is homeless, needs assistance to avoid

8 being homeless, or needs other assistance; and

9 ‘‘(B) ensuring that individuals and families

10 so identified receive appropriate housing and

11 supportive services;

12 ‘‘(2) providing assistance to the extent necessary

13 to avoid eviction (or foreclosure) and termination of

14 utility services of low- and very low-income families

15 to prevent such families from becoming homeless;

16 ‘‘(3) making emergency shelters with appropriate

17 supportive services available to the extent necessary to

18 ensure that homeless individuals and families for

19 which such housing is appropriate receive adequate

20 shelter, including during any period in which an as21 sessment referred to in paragraph (1) is performed for

22 such an individual or family;

23 ‘‘(4) making transitional housing with appro24 priate supportive services available to the extent nec25 essary to ensure that homeless individuals and fami-
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1 lies for which such housing is appropriate are pre2 pared for increased responsibility and permanent

3 housing, or permanent supportive housing, after the

4 transition period;

5 ‘‘(5) making permanent supportive housing,

6 available to the extent necessary to meet the long-term

7 housing needs of all homeless individuals and fami8 lies;

9 ‘‘(6) providing assistance to meet specific needs

10 of various subpopulations of the homeless, especially

11 the unique needs of homeless veterans; and

12 ‘‘(7) providing for coordination of assistance

13 provided under this subtitle and assistance provided

14 under other Federal, State, and local programs that

15 may be used to assist homeless individuals and fami16 lies, including—

17 ‘‘(A) assistance under the programs for pub18 lic and Indian housing and section 8 rental as19 sistance under the United States Housing Act of

20 1937 (including the program for section 8 assist21 ance for moderate rehabilitation under section

22 451 of this Act and the shelter plus care program

23 for such assistance under section 452 of this Act),

24 the HOME Investment Partnerships Act, the

25 community development block grant program
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1 under title I of the Housing and Community De2 velopment Act of 1974, the program for support3 ive housing for the elderly under section 202 of

4 the Housing Act of 1959, the program for sup5 portive housing for persons with disabilities

6 under section 811 of the Cranston-Gonzalez Na7 tional Affordable Housing Act, and the program

8 for housing opportunities for persons with AIDS

9 under subtitle D of title VIII of the Cranston10 Gonzalez National Affordable Housing Act;

11 ‘‘(B) programs administered by the Director

12 of the Federal Emergency Management Agency;

13 ‘‘(C) programs administered by the Sec14 retary of Labor, including programs for employ15 ment and training;

16 ‘‘(D) programs administered by the Sec17 retary of Health and Human Services, including

18 programs for health care, mental health care, so19 cial services, income support services, runaway

20 youth, and unfit transient facilities;

21 ‘‘(E) programs administered by the Sec22 retary of Veterans Affairs (including programs

23 for compensation benefits, health care, and men24 tal health care, and other services and programs)
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1 that are specifically designed to assist homeless

2 veterans;

3 ‘‘(F) programs administered by the Sec4 retary of Education, including programs for

5 adult education and education for homeless chil6 dren and youth;

7 ‘‘(G) programs administered by the Cor8 poration for National and Community Service,

9 including programs for national service; and

10 ‘‘(H) such other assistance as the Secretary

11 shall prescribe upon consultation with the Inter12 agency Council on the Homeless.

13 ‘‘SEC. 406. MATCHING REQUIREMENTS.

14 ‘‘(a) IN GENERAL.—Except as provided in subsection

15 (c), each recipient shall supplement the amount of grants

16 provided under this subtitle to the recipient with an equal

17 amount of funds from non-Federal sources, which shall in18 clude funds from project sponsors receiving assistance from

19 the recipient.

20 ‘‘(b) SUPPLEMENTAL FUNDS.—Supplemental funds

21 may include (1) the value of any donated material or build22 ing, the value of any lease on a building, (2) any salary

23 paid to staff to carry out the program of a project sponsor,

24 (3) the value of the time and services contributed by volun25 teers to carry out the program of project sponsor at a rate
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1 determined by the Secretary, and (4) the proceeds from

2 bond financing validly issued by a State or unit of general

3 local government, agency, or instrumentality thereof, and

4 repayable with revenues derived from a project assisted

5 under this subtitle, except that not more than 25 percent

6 of the contribution required may be derived from the pro7 ceeds of such bond financings. Any State or local govern8 ment funds used independently from the program under

9 this title, or designated for such use, to assist the homeless

10 by carrying out activities that would be eligible for assist11 ance under this subtitle shall be considered supplemental

12 funds under this section.

13 ‘‘(c) STATES.—

14 ‘‘(1) REQUIRED SUPPLEMENTATION.—Except as

15 provided in paragraph (3), in the case of a State ad16 ministering grant amounts under section

17 410(b)(1)(A), in each fiscal year, the State shall sup18 plement the amount of grants provided under this

19 subtitle with an amount of funds from sources other

20 than this subtitle equal to the difference between the

21 amount received under this subtitle and $100,000.

22 ‘‘(2) BENEFIT OF MATCH.—Each grantee that is

23 a State shall obtain any supplemental amounts re24 quired under paragraph (1) from State recipients re25 ceiving amounts under the grant in a manner so that
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1 the benefit of the $100,000 subtrahend under para2 graph (1) is appropriately divided among State re3 cipients for which providing such supplemental

4 amounts would—

5 ‘‘(A) create a significant hardship for the

6 recipient; or

7 ‘‘(B) interfere with the overall purpose of

8 the homeless assistance program of the recipient.

9 ‘‘(3) EXCEPTION.—If, in any fiscal year, a State

10 receives $100,000 or less in grant amounts under this

11 subtitle, paragraph (1) shall not apply to the State

12 for the fiscal year.

13 ‘‘(d) CERTIFICATION.—Each recipient shall certify, to

14 the satisfaction of the Secretary, its compliance with the

15 provisions of this section, which shall describe the sources

16 and amounts of supplemental funds provided pursuant to

17 this section.

18 ‘‘SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND

19 PROJECT SPONSORS.

20 ‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON21 PROFIT ORGANIZATIONS.—Each recipient shall make avail22 able more than 50 percent of the grant amounts it receives

23 for any fiscal year to project sponsors that are private non24 profit organizations to carry out eligible activities under

25 chapter 2, except that the Secretary may waive the applica-
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1 bility of this requirement if the recipient demonstrates to

2 the Secretary that the requirement interferes with the abil3 ity of the recipient to provide assistance under this subtitle

4 because of a paucity of qualified private nonprofit organi5 zations in the jurisdiction of the recipient.

6 ‘‘(b) HOUSING QUALITY.—Each recipient shall ensure

7 that housing assisted with grant amounts provided under

8 this subtitle is decent, safe, and sanitary and, when appro9 priate, complies with all applicable State and local housing

10 codes, building codes, and licensing requirements in the ju11 risdiction in which the housing is located.

12 ‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec13 retary may prescribe such terms and conditions as the Sec14 retary considers necessary to prevent project sponsors from

15 unduly benefiting from the sale or other disposition of

16 projects other than a sale or other disposition resulting in

17 the use of the project for the direct benefit of very low-in18 come families.

19 ‘‘(d) CONFIDENTIALITY.—Each recipient shall develop

20 and implement procedures to ensure the confidentiality of

21 records pertaining to any individual provided family vio22 lence prevention or treatment services under any project

23 and to ensure that the address or location or any family

24 violence shelter project assisted with grant amounts under

25 this subtitle will, except with written authorization of the
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1 person or person responsible for the operation of such shel2 ter, not be made public.

3 ‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—To

4 the maximum extent practicable, the Secretary shall ensure

5 that recipients involve, through employment, volunteer serv6 ices, or otherwise, homeless individuals and families in con7 structing, renovating, maintaining, and operating facilities

8 assisted with grant amounts under this subtitle, in provid9 ing services so assisted, and in providing services for occu10 pants of facilities so assisted.

11 ‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—

12 The Secretary shall, by regulation, provide that each recipi13 ent shall require each project sponsor receiving assistance

14 under this subtitle from the recipient to provide for the par15 ticipation of not less than one homeless individual or for16 merly homeless individual on the board of directors or other

17 equivalent policy making entity of the project sponsor, to

18 the extent that such entity considers and makes policies and

19 decision regarding any project, facility, services, or other

20 activities assisted with grant amounts under this subtitle.

21 A recipient may grant waivers to project sponsors unable

22 to meet the requirement under the preceding sentence if the

23 project sponsor agrees to otherwise consult with homeless or

24 formerly homeless individuals in considering and making

25 such policies and decisions.
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1 ‘‘SEC. 408. APPLICATION.

2 ‘‘(a) REQUIREMENT.—Except as otherwise provided in

3 section 404(c), the Secretary may make a grant under this

4 subtitle only to an eligible grantee that submits an applica5 tion under this section that is approved by the Secretary.

6 ‘‘(b) FORM AND PROCEDURE.—Applications shall be

7 submitted in such form and in accordance with such proce8 dures as the Secretary shall, by regulation, establish.

9 ‘‘(c) CONTENT.—An application under this section

10 shall—

11 ‘‘(1) include a detailed description, based on in12 formation provided in the current comprehensive

13 housing affordability strategy under section 105 of the

14 Cranston-Gonzalez National Affordable Housing Act

15 for the appropriate jurisdiction or such other plan as

16 the Secretary may prescribe, of—

17 ‘‘(A) the existing population of homeless in18 dividuals and families for the jurisdiction of the

19 applicant; and

20 ‘‘(B) the existing facilities and services de21 signed to assist such population;

22 ‘‘(2) include a detailed description of the com23 prehensive homeless assistance under section 405 to be

24 established and maintained within the jurisdiction of

25 the applicant;
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1 ‘‘(3) provide an assessment of what is required

2 to establish and maintain the provision of comprehen3 sive homeless assistance required under section 405

4 for the jurisdiction of the applicant;

5 ‘‘(4) set forth a multiyear strategy for establish6 ing and maintaining the provision of comprehensive

7 homeless assistance for the jurisdiction, as described

8 pursuant to paragraph (2), and include timetables,

9 goals, and budget estimates for accomplishing each

10 element of the strategy;

11 ‘‘(5) set forth a 1-year action plan that identifies

12 all activities to be carried out with assistance under

13 this subtitle and demonstrates how such activities will

14 further the strategy set forth pursuant to paragraph

15 (4);

16 ‘‘(6) except in the case of an application by a

17 State that elects under section 410(b)(1)(A) to admin18 ister grants under this subtitle, describe the means the

19 applicant will use to distribute grant amounts to

20 project sponsors and whether such amounts will be

21 awarded on a competitive or noncompetitive basis;

22 ‘‘(7) contain certifications or other such forms of

23 proof of commitments of financial and other resources

24 from each public agency or private nonprofit organi25 zation that has a role in establishing and maintain-
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1 ing the provision of comprehensive homeless assistance

2 for the jurisdiction of the applicant, required under

3 section 405;

4 ‘‘(8) contain assurances satisfactory to the Sec5 retary that activities carried out under chapter 2

6 with grant amounts under this subtitle will comply

7 with the requirements of this subtitle;

8 ‘‘(9) in the case of an application by a State

9 that elects to under section 410(b)(1)(A) administer

10 grants under this subtitle, describe the method of dis11 tribution of such amounts to State recipients;

12 ‘‘(10) except with respect to an application by a

13 State that elects to under section 410(b)(1)(A) to ad14 minister grants under this subtitle, contain a certifi15 cation from the public official responsible for submit16 ting the comprehensive housing affordability strategy

17 under section 105 of the Cranston-Gonzalez National

18 Affordable Housing Act for the State or unit of gen19 eral local government within which a project is to be

20 located (or such other plan as the Secretary may re21 quire) that the proposed project is consistent with the

22 approved housing strategy of such State or unit of

23 general local government;

24 ‘‘(11) contain a certification that the applicant

25 will comply with the requirements of the Fair Hous-
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1 ing Act, title VI of the Civil Rights Act of 1964, sec2 tion 504 of the Rehabilitation Act of 1973, and the

3 Age Discrimination Act of 1975, and will affirma4 tively further fair housing; and

5 ‘‘(12) contain a certification that the applicant

6 will comply with the requirements of this subtitle and

7 other applicable laws.

8 ‘‘(d) RELATIONSHIP TO CHAS AND CONSOLIDATED

9 PLAN.—In establishing requirements for applications under

10 this section, the Secretary shall provide that if an applicant

11 includes in the application information also required under

12 the comprehensive housing affordability strategy for the ap13 propriate jurisdiction under section 105 of the Cranston14 Gonzalez National Affordable Housing Act or such other

15 plan as the Secretary may require, the requirements under

16 such subsection regarding such information shall be consid17 ered to be fulfilled by the submission of the application.

18 ‘‘SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

19 ‘‘(a) INSULAR AREAS.—In each fiscal year, from any

20 amounts appropriated for such year to carry out this sub21 title, the Secretary shall allocate amounts to insular areas

22 in accordance with an allocation formula established by the

23 Secretary.

24 ‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL

25 LOCAL GOVERNMENT.—
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1 ‘‘(1) FORMULA ALLOCATION.—

2 ‘‘(A) IN GENERAL.—For each fiscal year, of

3 the amounts that remain after amounts are re4 served for insular areas under subsection (a), the

5 Secretary shall allocate assistance according to

6 this paragraph.

7 ‘‘(B) FORMULA.—The Secretary shall allo8 cate amounts under this paragraph using a for9 mula established by the Secretary that allocates

10 amounts for allocation units of general local gov11 ernment and States, and for Indian tribes, in a

12 manner that provides that the percentage of the

13 total amount referred to in subparagraph (A) for

14 any fiscal year that is allocated for any State or

15 allocation unit of general local government, or

16 for Indian tribes, is equal to the percentage of

17 the total amount available for section 106 of the

18 Housing and Community Development Act of

19 1974 for the prior fiscal year that was allocated

20 for such State or allocation unit of general local

21 government, or for Indian tribes.

22 ‘‘(C) MINIMUM AMOUNT.—If, in any fiscal

23 year, allocation under the provisions of subpara24 graphs (A) and (B) would result in any alloca25 tion unit of general local government receiving a
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1 grant of less than 0.05 percent of the amounts

2 appropriated to carry out this subtitle for the

3 fiscal year, such amount shall instead be reallo4 cated to the State for use under section 410(b).

5 ‘‘(D) 70 PERCENT FOR UNITS OF GENERAL

6 LOCAL GOVERNMENT.—In each fiscal year, the

7 amount allocated under this paragraph for each

8 allocation unit of general local government shall

9 be the amount that results from increasing all of

10 the amounts determined pursuant to the preced11 ing subparagraphs for allocation units of general

12 local government on a pro rata basis so that the

13 sum of such amounts is equal to 70 percent of

14 the remainder of the amount appropriated for

15 the year to carry out this subtitle after amounts

16 are allocated for insular areas under subsection

17 (a).

18 ‘‘(E) 30 PERCENT FOR STATES.—In each

19 fiscal year, the amount allocated under this

20 paragraph for each State shall be the amount

21 that results from decreasing all of the amounts

22 determined pursuant to the preceding subpara23 graphs for States on a pro rata basis so that the

24 sum of such amounts is equal to 30 percent of

25 the remainder of the amount appropriated for
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1 the year to carry out this subtitle after amounts

2 are allocated for insular areas under subsection

3 (a).

4 ‘‘(2) GRANT AMOUNT FOR STATES AND ALLOCA5 TION UNITS OF GENERAL LOCAL GOVERNMENT.—

6 ‘‘(A) IN GENERAL.—The amount allocated

7 for a fiscal year under paragraph (1) for an al8 location unit of general local government or a

9 State shall be the maximum amount that the al10 location unit or State may receive under this

11 subtitle for the fiscal year.

12 ‘‘(B) REDUCTION.—In any fiscal year, the

13 Secretary may provide a grant under this sub14 title for a State or for an allocation unit of gen15 eral local government in an amount less than the

16 amount allocated under paragraph (1), if the

17 Secretary determines based upon review of the

18 application of the jurisdiction under section 408

19 or as a result of the annual performance review

20 and audit under section 413, that the jurisdic21 tion has failed to comply fully with the require22 ments under section 408 or 411 or that such ac23 tion is otherwise appropriate.

24 ‘‘(c) REALLOCATIONS.—Any amounts that a State or

25 an allocation unit of general local government is eligible
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1 to receive for a fiscal year under subsection (b) that are

2 not received for use in the jurisdiction, as provided by sub3 sections (a) and (b) of section 410, or that become available

4 as a result of actions under section 413(b), shall be added

5 to amounts available for allocation under this section for

6 the succeeding fiscal year.

7 ‘‘SEC. 410. ADMINISTRATION OF PROGRAM.

8 ‘‘(a) GRANTS TO ALLOCATION UNITS OF GENERAL

9 LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR

10 AREAS.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graphs (2), (3), and (4), an allocation unit of general

13 local government, Indian tribe, or insular area shall

14 administer grant amounts for any fiscal year received

15 under section 409 by such grantees.

16 ‘‘(2) ADMINISTRATION BY DESIGNEES OF JURIS17 DICTION.—

18 ‘‘(A) AUTHORITY TO ELECT.—An allocation

19 unit of general local government, Indian tribe, or

20 insular area may elect for any fiscal year to des21 ignate a public agency or a private nonprofit or22 ganization (or a consortium of such organiza23 tions) to administer grant amounts under sec24 tion 409 for the jurisdiction.
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1 ‘‘(B) ELECTION REQUIREMENTS.—The Sec2 retary shall prescribe the manner and time for

3 making an election under subparagraph (A), and

4 shall establish criteria for the approval of agen5 cies and organizations designated, which shall

6 require such agencies and organizations to dem7 onstrate experience of the entity in providing as8 sistance to homeless individuals and families in

9 the jurisdiction.

10 ‘‘(C) DIRECT PROVISION OF ASSISTANCE.—

11 The Secretary may, at the request of the jurisdic12 tion, provide grant amounts directly to the agen13 cy or organization designated under this para14 graph.

15 ‘‘(3) ADMINISTRATION BY DESIGNEES OF SEC16 RETARY.—If an allocation unit of general local gov17 ernment, Indian tribe, or insular area, or (if appro18 priate) a public agency or private nonprofit organi19 zation designated by the jurisdiction under paragraph

20 (2), does not receive a grant under section 409 for

21 any fiscal year because of failure to meet the applica22 tion requirements of section 408, the Secretary may

23 designate an agency or organization meeting the cri24 teria established under paragraph (2)(B) to receive

25 the grant.
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1 ‘‘(4) ADMINISTRATION BY SECRETARY.—If for

2 any fiscal year the Secretary determines that the

3 grant amounts allocated under section 409 for an al4 location unit of general local government, Indian

5 tribe, or insular area will not be used in the jurisdic6 tion as provided by the preceding provisions of this

7 subsection, the Secretary may administer such

8 amounts for the jurisdiction. The Secretary shall pre9 scribe such procedures and requirements as the Sec10 retary considers appropriate for administering grant

11 amounts under this paragraph.

12 ‘‘(b) GRANTS TO STATES.—

13 ‘‘(1) IN GENERAL.—To receive an allocation

14 under section 409, each State shall elect—

15 ‘‘(A) to administer grant amounts received

16 under section 409, as provided in paragraphs (2)

17 and (3); or

18 ‘‘(B) to have the Secretary administer such

19 grant amounts for the State, as provided in

20 paragraph (5).

21 If a State elects to administer grant amounts under

22 subparagraph (A), the election shall be irrevocable.

23 ‘‘(2) STATE PROGRAM.—A State administering

24 grant amounts as provided in paragraph (1)(A)—
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1 ‘‘(A) shall distribute the amounts remaining

2 after use in accordance with subparagraph (B)

3 to State recipients for use under this subtitle;

4 ‘‘(B) may use up to 15 percent of the grant

5 amounts received under section 409 to carry out

6 its own homeless assistance program under this

7 subtitle, except that—

8 ‘‘(i) such amounts may only be used

9 for eligible activities under chapter 2 for

10 which States are eligible recipients under

11 this subtitle; and

12 ‘‘(ii) the Secretary may increase the

13 percentage limitation under this subpara14 graph in the case of any State homeless as15 sistance program that is limited to provid16 ing assistance in areas of the State that are

17 not allocation units of general local govern18 ment; and

19 ‘‘(C) may retain not to exceed 5.0 percent

20 of the amount to be distributed under subpara21 graph (A) to State recipients to defray the cost

22 of carrying out its responsibilities under this

23 subtitle.

24 Unless a State demonstrates to the satisfaction of the

25 Secretary that the needs for assistance for activities
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1 under this subtitle in areas of the State that are not

2 allocation units of general local government have been

3 fulfilled, grant amounts received by State may only

4 be used to carry out activities in areas of the State

5 that do not include allocation units of general local

6 government.

7 ‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE8 CIPIENTS.—

9 ‘‘(A) CHOICE OF ADMINISTRATION.—A

10 State administering grant amounts as provided

11 in paragraph (1)(A) shall, for each fiscal year,

12 afford each such recipient the options of—

13 ‘‘(i) administering the grant amounts

14 on its own behalf;

15 ‘‘(ii) designating a public agency or a

16 private nonprofit organization (as provided

17 by subsection (a)(2)) to administer the

18 grant amounts for the jurisdiction; or

19 ‘‘(iii) entering into an agreement with

20 the State, in consultation with private non21 profit organizations providing assistance to

22 homeless individuals and families in the ju23 risdiction, under which the State will ad24 minister the grant amounts for the jurisdic25 tion.
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1 A recipient may choose to exercise such options

2 at such time and in accordance with such cri3 teria as the Secretary may prescribe.

4 ‘‘(B) DIRECT PROVISION OF ASSISTANCE.—

5 A State may, at the request of the State recipi6 ent, provide grant amounts directly to the agen7 cy or organization designated under subpara8 graph (A)(ii).

9 ‘‘(C) DISTRIBUTION OF AMOUNTS.—The

10 State shall distribute amounts to State recipients

11 (or to agencies or organizations designated under

12 subparagraph (A)(ii), as appropriate) on the

13 basis of an application containing such informa14 tion as the State may prescribe. Each applica15 tion shall evidence an intent to establish and

16 maintain the provision of comprehensive home17 less assistance in the jurisdiction of the recipient,

18 except that the State may waive this requirement

19 with respect to one or more proposed activities,

20 where the State determines that—

21 ‘‘(i) the activities are necessary to meet

22 the needs of homeless individuals and fami23 lies within the jurisdiction; and
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1 ‘‘(ii) comprehensive homeless assistance

2 is not necessary, due to the nature and ex3 tent of homelessness in the jurisdiction.

4 ‘‘(D) PREFERENCE FOR CERTAIN STATE RE5 CIPIENTS.—In selecting State recipients and

6 making awards under subparagraph (C), the

7 State shall give preference to applications that

8 demonstrate higher relative levels of homeless

9 need and fiscal distress.

10 ‘‘(4) STATE OR HUD ADMINISTRATION OF

11 GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in

12 any fiscal year a State distributes grant amounts to

13 a State recipient, but the recipient fails to receive the

14 amounts pursuant to paragraph (3)(A), the Secretary

15 or the State, as the Secretary may provide, may dis16 tribute the amounts to private nonprofit organiza17 tions in the jurisdiction. If the Secretary distributes

18 the amounts, the Secretary shall deduct the amounts

19 distributed from the grant provided to the State for

20 the fiscal year.

21 ‘‘(5) HUD ADMINISTRATION OF STATE PRO22 GRAM.—If a State elects pursuant to paragraph

23 (1)(B) to have the Secretary administer grant

24 amounts for the State received under section 409, the

25 Secretary may distribute grant amounts to State re-
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1 cipients for the State, in accordance with require2 ments and procedures prescribed by the Secretary.

3 The Secretary shall establish criteria for selecting re4 cipients and making awards under this paragraph,

5 which shall include giving preference to applications

6 that demonstrate higher relative levels of homeless

7 need and fiscal distress.

8 ‘‘SEC. 411. CITIZEN PARTICIPATION.

9 ‘‘(a) IN GENERAL.—Each grantee who is not a State

10 recipient shall ensure that citizens, and appropriate private

11 nonprofit organizations and other interested groups and en12 tities, participate fully in developing and carrying out the

13 program for providing assistance under this subtitle in the

14 jurisdiction of the recipient. The Secretary shall prescribe

15 such requirements to carry out this section as the Secretary

16 deems appropriate, which shall include requirements appli17 cable to the homeless assistance planning boards referred

18 to in subsection (b) and the citizen participation provisions

19 of subsection (c), and the timing of, and sequence for, carry20 ing out the requirements of such subsections.

21 ‘‘(b) HOMELESS ASSISTANCE PLANNING BOARDS.—

22 ‘‘(1) ESTABLISHMENT.—As a condition of a

23 grantee who is not a State recipient receiving assist24 ance under this subtitle, the chief executive officer of

25 the appropriate unit government in the jurisdiction of
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1 the grantee shall establish a homeless assistance plan2 ning board under this subsection.

3 ‘‘(2) FUNCTIONS.—Each board under this sub4 section shall assist the recipient in—

5 ‘‘(A) determining whether grant amounts of

6 the grantee should be administered by the grant7 ee, a public agency or private nonprofit organi8 zation, or the State or the Secretary, under sub9 sections (a) and (b) of section 410;

10 (B) developing the application under sec11 tion 408;

12 (C) overseeing the activities carried out

13 with assistance under this subtitle; and

14 (D) evaluating the performance of the

15 grantee (and recipients of the grantee) in carry16 ing out such activities.

17 ‘‘(3) MEMBERSHIP.—Each board under this sub18 section shall consist of members appointed by the

19 chief executive officer referred to in paragraph (1)

20 (subject to recommendations in accordance with para21 graph (4)), and shall include—

22 ‘‘(A) not less than one member representing

23 homeless individuals and families;

24 ‘‘(B) not less than one member representing

25 homeless advocates;
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1 ‘‘(C) not less than one member representing

2 individuals and entities providing assistance to

3 homeless individuals and families, including

4 agencies of units of general local government

5 providing Federal assistance;

6 ‘‘(D) not less than one member representing

7 the business community;

8 ‘‘(E) not less than 1 member representing

9 labor;

10 ‘‘(F) not less than one member who is a

11 community representative;

12 ‘‘(G) not less than one member of the local

13 board established for the jurisdiction for purposes

14 of allocating amounts under the emergency food

15 and shelter program of the Federal Emergency

16 Management Agency;

17 ‘‘(H) not less than one member representing

18 the grantee; and

19 ‘‘(I) in the case of a grantee that is a

20 State—

21 ‘‘(i) one member representing the State

22 agency or instrumentality dealing with

23 mental health; and
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1 ‘‘(ii) one member representing the

2 State agency or instrumentality dealing

3 with education.

4 ‘‘(4) DISTRIBUTION OF MEMBERSHIP.—Not less

5 than 50 percent of the members of each board under

6 this subsection (including the members required under

7 subparagraphs (A), (B), (C), and (G) of paragraph

8 (3)) shall be individuals who were recommended for

9 membership by individuals and entities other than a

10 unit of general local government or any agency there11 of.

12 ‘‘(5) BOARD REVIEW.—

13 ‘‘(A) APPLICANTS.—No eligible grantee may

14 submit an application to the Secretary under

15 section 408, and no grantee may submit to the

16 Secretary a performance report under subsection

17 413(a), unless the board under this subsection for

18 the jurisdiction of the grantee has reviewed, and

19 been provided an opportunity to include any

20 comments of the board in, the application or re21 port.

22 ‘‘(B) STATE RECIPIENTS.—No State recipi23 ent may submit an application under section

24 410(b)(3) or a performance report to a State,

25 unless the board under this subsection for the ju-
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1 risdiction has reviewed, and been provided an

2 opportunity to include any comments of the

3 board in, the application or report.

4 ‘‘(6) REVIEW BY SECRETARY.—A member or

5 members of the board under this subsection for a ju6 risdiction or other members of the community may

7 request the Secretary to review process for constitut8 ing or operating the board to determine whether the

9 process is fair. If the Secretary finds that the process

10 is unfair and submits a written justification to the

11 board within 15 days of the request for review, the

12 Secretary may disapprove the application under sec13 tion 408 for the jurisdiction or refuse to accept a per14 formance report under section 413(a).

15 ‘‘(7) CONFLICTS OF INTEREST.—The Secretary

16 shall prescribe standards governing potential conflicts

17 of interest under which members of boards under this

18 subsection may participate in activities carried out

19 under this subtitle.

20 ‘‘(c) INVOLVEMENT OF CITIZENS AND OTHERS.—

21 ‘‘(1) IN GENERAL.—Each recipient shall—

22 ‘‘(A) make available to its citizens, public

23 agencies, and other interested parties informa24 tion concerning the amount of assistance the ju25 risdiction expects to receive and the range of ac-
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1 tivities that may be undertaken with the assist2 ance;

3 ‘‘(B) publish the proposed application in a

4 manner that, in the determination of the Sec5 retary, affords affected citizens, public agencies,

6 and other interested parties a reasonable oppor7 tunity to examine its content and to submit com8 ments on it;

9 ‘‘(C) hold one or more public hearings to ob10 tain the views of citizens, public agencies, and

11 other interested parties on the housing needs of

12 the jurisdiction; and

13 ‘‘(D) provide citizens, public agencies, and

14 other interested parties with reasonable access to

15 records regarding any uses of any assistance the

16 recipient may have received under this subtitle

17 during the preceding 5 years.

18 ‘‘(2) NOTICE AND COMMENT.—Before submitting

19 any performance report under section 413(a) or any

20 substantial amendment to an application under sec21 tion 408, a recipient shall provide citizens with rea22 sonable notice of, and opportunity to comment on, the

23 performance report or application.

24 ‘‘(3) CONSIDERATION OF COMMENTS.—A recipi25 ent shall consider any comments or views of citizens
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1 in preparing a final application, amendment to an

2 application, or performance report for submission. A

3 summary of such comments or views shall be attached

4 when an application, amendment to an application,

5 or performance report is submitted. The submitted

6 application, amendment, or report shall be made

7 available to the public.

8 ‘‘(4) AUTHORITY OF SECRETARY.—The Secretary

9 shall establish procedures appropriate and practicable

10 for providing a fair hearing and timely resolution of

11 citizen complaints related to applications or perform12 ance reports under this subtitle.

13 ‘‘(d) REQUIREMENTS FOR CITIZEN PARTICIPATION

14 FOR STATE RECIPIENTS AND RECIPIENTS OF AMOUNTS

15 FROM THE SECRETARY.—

16 ‘‘(1) STATE RECIPIENTS.—The State may pre17 scribe citizen participation requirements comparable

18 (to the extent appropriate) to the requirements under

19 the preceding provisions of this section for cases in

20 which a State distributes grant amounts to State re21 cipients, as provided in section 410(b)(2).

22 ‘‘(2) RECIPIENTS FROM SECRETARY.—The Sec23 retary may prescribe citizen participation require24 ments comparable (to the extent appropriate) to the
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1 requirements under the preceding provisions of this

2 section for cases in which the Secretary—

3 ‘‘(A) administers the grant amounts of an

4 allocation unit of general local government, as

5 provided in section 410(a)(4); or

6 ‘‘(B) distributes grant amounts to recipi7 ents, as provided in paragraph (3), (4), or (5)

8 of section 410(b).

9 ‘‘(3) INAPPLICABLE LAWS.—The Federal Advi10 sory Committee Act and section 12 of the Department

11 of Housing and Urban Development Act shall not

12 apply with respect to the actions of the Secretary re13 ferred to in paragraph (2). The Secretary shall estab14 lish appropriate standards under this paragraph to

15 ensure the integrity of the process for awarding assist16 ance.

17 ‘‘SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

18 ‘‘(a) FLOOD ELEVATION REQUIREMENTS.—Flood pro19 tection standards applicable to housing acquired, rehabili20 tated, or assisted under this subtitle shall be no more restric21 tive than the standards applicable to any other program

22 administrated by the Secretary.

23 ‘‘(b) ENVIRONMENTAL PROTECTION.—The provisions

24 of, and regulations and procedures applicable under, section

25 104(g) of the Housing and Community Development Act
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1 of 1974 shall apply to assistance and projects under this

2 subtitle.

3 ‘‘(c) GAO AUDITS.—Insofar as they relate to funds

4 provided under this subtitle, the financial transactions of

5 grantees and project sponsors may be audited by the Gen6 eral Accounting Office under such rules and regulations as

7 may be prescribed by the Comptroller General of the United

8 States. The representatives of the General Accounting Office

9 shall have access to all books, accounts, records, reports, files

10 and other papers, things, or property belonging to, or in

11 use by such grantees, and project sponsors pertaining to the

12 financial transactions and necessary to facilitate the audit.

13 ‘‘SEC. 413. REPORTS, REVIEWS, AND AUDITS.

14 ‘‘(a) GRANTEE PERFORMANCE REPORT.—Each grant15 ee shall submit to the Secretary a performance and evalua16 tion report concerning the use of funds made available

17 under this subtitle. The report shall be submitted at such

18 time and contain such information as the Secretary shall

19 prescribe, and shall be made available to the relevant boards

20 referred to in section 411(b) and to citizens, public agencies,

21 and other interested parties in the jurisdiction of the grant22 ee in sufficient time to permit the board and the citizens,

23 public agencies, and other interested parties to comment on

24 the report before submission.
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1 ‘‘(b) REVIEWS AND AUDITS.—The Secretary shall, at

2 least on an annual basis, make such reviews and audits

3 as may be necessary or appropriate to determine—

4 ‘‘(1) in the case of a grantee (other than a grant5 ee referred to in paragraph (2)), whether the grant6 ee—

7 ‘‘(A) has carried out its activities in a time8 ly manner;

9 ‘‘(B) has made progress toward establishing

10 and maintaining the comprehensive homeless as11 sistance system in conformity with its applica12 tion under this subtitle;

13 ‘‘(C) has carried out its activities and cer14 tifications in accordance with the requirements

15 of this subtitle and other applicable laws; and

16 ‘‘(D) has a continuing capacity to carry out

17 its activities in a timely manner; and

18 ‘‘(2) in the case of States distributing grant

19 amounts to State recipients, whether the State—

20 ‘‘(A) has distributed amounts to State re21 cipients in a timely manner and in conformance

22 with the method of distribution described in its

23 application;
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1 ‘‘(B) has carried out its activities and cer2 tifications in compliance with the requirements

3 of this subtitle and other applicable laws; and

4 ‘‘(C) has made such reviews and audits of

5 the State recipients as may be necessary or ap6 propriate to determine whether they have satis7 fied the applicable performance criteria con8 tained in paragraph (1).

9 The Secretary may make appropriate adjustments in the

10 amount of grants in accordance with the Secretary’s find11 ings under this subsection. With respect to assistance made

12 available for State recipients, the Secretary may adjust, re13 duce, or withdraw such assistance, or take other action as

14 appropriate in accordance with the Secretary’s reviews and

15 audits under this subsection, except that amounts already

16 properly expended on eligible activities under this subtitle

17 shall not be recaptured or deducted from future assistance

18 to such recipients.

19 ‘‘SEC. 414. NONDISCRIMINATION IN PROGRAMS AND ACTIVI20 TIES.

21 ‘‘(a) IN GENERAL.—No person in the United States

22 shall on the ground of race, color, national origin, religion,

23 or sex be excluded from participation in, be denied the bene24 fits of, or be subjected to discrimination under any program

25 or activity funded in whole or in part with funds made
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1 available under this subtitle. Any prohibition against dis2 crimination on the basis of age under the Age Discrimina3 tion Act of 1975 or with respect to an otherwise qualified

4 handicapped individual, as provided in section 504 of the

5 Rehabilitation Act of 1973, shall also apply to any such

6 program or activity.

7 ‘‘(b) LIMITATIONS.—

8 ‘‘(1) INDIAN TRIBES.—No grant may be made

9 under this subtitle to an Indian tribe unless the ap10 plicant provides satisfactory assurances that its pro11 gram will be conducted and administered in conform12 ity with title II of Public Law 90–284. The Secretary

13 may waive, in connection with grants to Indian

14 tribes, the provisions of subsection (a).

15 ‘‘(2) HAWAIIAN HOME LANDS.—The provisions of

16 this subtitle relating to discrimination on the basis of

17 race shall not apply to the provision of assistance

18 under this subtitle to the Hawaiian Home Lands.

19 ‘‘SEC. 415. CONSULTATION.

20 ‘‘In carrying out the provisions of this subtitle, includ21 ing the issuance of regulations, the Secretary shall consult

22 with other Federal agencies administering programs affect23 ing homeless individuals and families through the Inter24 agency Council on the Homeless established under title II.
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1 ‘‘SEC. 416. RECORDS, REPORTS, AND AUDITS.

2 ‘‘(a) KEEPING OF RECORDS.—Any recipient (includ3 ing a State distributing grant amounts to State recipients

4 as provided in section 410(b)(2)) shall keep such records

5 as may be reasonably necessary—

6 ‘‘(1) to disclose the amounts and the disposition

7 of the grant amounts; and

8 ‘‘(2) to ensure compliance with the requirements

9 of this subtitle.

10 ‘‘(b) ACCESS TO DOCUMENTS BY SECRETARY.—The

11 Secretary shall have access for the purpose of audit and ex12 amination to any books, documents, papers, and records of

13 any recipient specified in subsection (a) that are pertinent

14 to grant amounts received in connection with, and the re15 quirements of, this subtitle.

16 ‘‘(c) ACCESS TO DOCUMENTS BY COMPTROLLER GEN17 ERAL.—The Comptroller General of the United States, or

18 any of the duly authorized representatives of the Comptrol19 ler General, shall have access for the purpose of audit and

20 examination to any books, documents, papers, and records

21 of any recipient specified in subsection (a) that are perti22 nent to grant amounts received in connection with, and the

23 requirements of, this subtitle.

24 ‘‘SEC. 417. REPORTS TO CONGRESS.

25 ‘‘The Secretary shall submit a report to the Congress

26 annually, summarizing the activities carried out under this
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1 subtitle and setting forth the findings, conclusions, and rec2 ommendations of the Secretary as a result of the activities.

3 The report shall be submitted not later than 4 months after

4 the end of each fiscal year (except that, in the case of fiscal

5 year 1995, the report shall be submitted not later than 6

6 months after the end of the fiscal year).

7 ‘‘CHAPTER 2—ELIGIBLE ACTIVITIES

8 ‘‘SEC. 431. HOMELESSNESS PREVENTION.

9 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

10 grant amounts under this subtitle for activities designed to

11 help persons and families described in subsection (b) avoid

12 becoming homeless, which shall include assistance for mak13 ing mortgage payments, rental payments, and utility pay14 ments and any activities other than those found by the Sec15 retary to be inconsistent with the purposes of this Act.

16 ‘‘(b) REQUIREMENTS FOR ASSISTANCE.—Assistance

17 may be provided under this section only to very low-income

18 persons and families who have received eviction (or mort19 gage delinquency or foreclosure) notices or notices of termi20 nation of utility services and who—

21 ‘‘(1) are unable to make the required payments

22 due to a sudden reduction in income;

23 ‘‘(2) need such assistance to avoid the eviction or

24 termination of services; and
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1 ‘‘(3) have a reasonable prospect of being able to

2 resume payments within a reasonable period of time.

3 ‘‘SEC. 432. EMERGENCY SHELTER.

4 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

5 grant amounts under this subtitle for—

6 ‘‘(1) the renovation, major rehabilitation, or con7 version of a building or buildings to be used as emer8 gency shelters;

9 ‘‘(2) the provision of supportive services, if such

10 services do not supplant any services provided by the

11 local government during any part of the 12-month pe12 riod ending on the date of the commencement of the

13 operation of the emergency shelter; and

14 ‘‘(3) maintenance, operation, insurance, utilities,

15 and furnishings for emergency shelters.

16 ‘‘(b) DEFINITION.—A project shall be considered emer17 gency shelter for purposes of this section if the project is

18 designed to provide overnight sleeping accommodations for

19 homeless persons. An emergency shelter may include appro20 priate eating and cooking accommodations.

21 ‘‘(c) PROGRAM REQUIREMENTS.—A recipient may use

22 grant amounts under this subtitle for an emergency shelter

23 project only if the project sponsor has agreed that it will—

24 ‘‘(1) in the case of assistance involving major re25 habilitation or conversion of a building, maintain the
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1 building as a shelter for homeless individuals and

2 families for not less than a 10-year period unless,

3 within such 10-year period, the need for maintaining

4 the building as a full-time shelter ceases to exist and

5 the building is used for the remainder of such period

6 to carry out other eligible activities under this sub7 title;

8 ‘‘(2) in the case of assistance involving rehabili9 tation (other than major rehabilitation or conversion

10 of a building), maintain the building as a shelter for

11 homeless individuals and families for not less than a

12 3-year period; or

13 ‘‘(3) in the case of assistance involving only ac14 tivities described in paragraphs (2) and (3) of sub15 section (a), provide services or shelter to homeless in16 dividuals and families at the original site or struc17 ture or other sites or structures serving the same gen18 eral population for the period during which such as19 sistance is provided;

20 ‘‘(4) comply with the standards of habitability

21 prescribed under subsection (d) by the Secretary and

22 (if applicable) the State or unit of general local gov23 ernment; and

24 ‘‘(5) assist homeless persons in obtaining—
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1 ‘‘(A) appropriate supportive service, includ2 ing permanent housing, medical and mental

3 health treatment, counseling, supervision, and

4 other services essential for achieving independent

5 living; and

6 ‘‘(B) other Federal, State, local, and private

7 assistance available for homeless persons.

8 ‘‘(d) MINIMUM STANDARDS OF HABITABILITY.—The

9 Secretary shall prescribe such minimum standards of habit10 ability as the Secretary determines to be appropriate to en11 sure that emergency shelters assisted under this section are

12 environments that provide appropriate privacy, safety, and

13 sanitary and other health-related conditions for homeless

14 persons and families. Grantees may establish standards of

15 habitability in addition to those prescribed by the Sec16 retary.

17 ‘‘SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

18 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

19 grant amounts under this subtitle to provide assistance to

20 a project sponsor of supportive housing in the following

21 manners:

22 ‘‘(1) ACQUISITION AND REHABILITATION.—As23 sistance may be provided in the form of an advance

24 in an amount not exceeding cost of acquisition, sub25 stantial rehabilitation, or acquisition and rehabilita-
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1 tion of an existing structure for use as supportive

2 housing. The repayment of any outstanding debt owed

3 on a loan made to purchase an existing structure

4 shall be considered to be a cost of acquisition eligible

5 for an advance under this paragraph if the structure

6 was not used as supportive housing before the receipt

7 of assistance.

8 ‘‘(2) MODERATE REHABILITATION.—Assistance

9 may be provided in the form of a grant for moderate

10 rehabilitation of an existing structure for use as sup11 portive housing. Assistance under this paragraph

12 shall not preclude assistance under paragraph (1).

13 ‘‘(3) OPERATING COSTS.—Assistance may be pro14 vided in the form of annual payments for operating

15 costs of supportive housing (including supportive

16 housing that is newly constructed with assistance pro17 vided from sources other than this subtitle) in an

18 amount not exceeding 75 percent of the annual oper19 ating costs of such housing.

20 ‘‘(4) TECHNICAL ASSISTANCE.—Technical assist21 ance may be provided in—

22 ‘‘(A) establishing supportive housing in an

23 existing structure;

24 ‘‘(B) operating supportive housing in exist25 ing structures and in structures that are newly
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1 constructed with assistance provided from

2 sources other than this subtitle; and

3 ‘‘(C) providing supportive services to the

4 residents of supportive housing (including sup5 portive housing that is newly constructed with

6 assistance provided from sources other than this

7 subtitle).

8 ‘‘(5) EMPLOYMENT ASSISTANCE PROGRAM.—As9 sistance may be provided in the form of a grant for

10 establishing and operating an employment assistance

11 program for the residents of supportive housing,

12 which shall include—

13 ‘‘(A) employment of residents in the oper14 ation and maintenance of the housing; and

15 ‘‘(B) the payment of the transportation

16 costs of residents to places of employment.

17 ‘‘(6) SUPPORTIVE SERVICES.—Assistance may be

18 provided in the form of a grant for costs of supportive

19 services provided to homeless individuals. Any project

20 sponsor, including program recipients under title IV

21 of this Act before the date of the enactment of the

22 Housing and Community Development Act of 1994,

23 may reapply for such assistance or for the renewal of

24 such assistance to continue services funded under

25 prior grants or to provide other services.
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1 ‘‘(7) CHILD CARE SERVICES.—Assistance may be

2 provided in the form of a grant to establish and oper3 ate a child care services program for homeless fami4 lies, which shall—

5 ‘‘(A) include—

6 ‘‘(i) establishing, licensing, and operat7 ing an on-site child care facility for the

8 residents of transitional housing;

9 ‘‘(ii) making contributions for the child

10 care costs of residents of transitional hous11 ing to existing community child care pro12 grams and facilities; and

13 ‘‘(iii) counseling designed to inform the

14 residents of transitional housing of public

15 and private child care services for which

16 they are eligible; and

17 ‘‘(B) provide only child care services that

18 comply with any applicable State and local laws

19 and regulations.

20 A grant under this paragraph for any child care serv21 ices program may not exceed the amount equal to 75

22 percent of the cost of operating the program for a pe23 riod not exceeding 5 years.
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1 ‘‘(b) SUPPORTIVE HOUSING.—Housing for homeless

2 individuals shall be considered to be supportive housing for

3 purposes of this section if—

4 ‘‘(1) the housing is safe and sanitary and meets

5 any applicable State and local housing codes and li6 censing requirements in the jurisdiction in which the

7 housing is located;

8 ‘‘(2) the housing is—

9 ‘‘(A) transitional housing;

10 ‘‘(B) permanent housing for homeless per11 sons with disabilities; or

12 ‘‘(C) a particularly innovative project for,

13 or alternative methods of, meeting the immediate

14 and long-term needs of homeless individuals and

15 families (or is part of such a project); and

16 ‘‘(3) supportive services are provided in connec17 tion with the housing to address the special needs of

18 homeless individuals intended to be served by the

19 housing.

20 ‘‘(c) TRANSITIONAL HOUSING.—For purposes of this

21 section, the term ‘transitional housing’ means housing, the

22 purpose of which is to facilitate the movement of homeless

23 individuals and families to permanent housing within 24

24 months or such longer period as the Secretary determines

25 necessary.
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1 ‘‘(d) PERMANENT HOUSING FOR HOMELESS PERSONS

2 WITH DISABILITIES.—For purposes of this section, the term

3 ‘permanent housing for homeless persons with disabilities’

4 means community-based housing for homeless persons with

5 disabilities that—

6 ‘‘(1) is a home designed solely for housing home7 less persons with disabilities or dwelling units in a

8 multifamily housing project, condominium project, or

9 cooperative project;

10 ‘‘(2) in the case of a home, is located on a site

11 that does not contain another home used for the same

12 purposes and that is not contiguous to another site

13 containing a home used for the same purposes; and

14 ‘‘(3) provides long-term housing and supportive

15 services for not more than—

16 ‘‘(A) 8 such persons in a single structure or

17 contiguous structures;

18 ‘‘(B) 16 such persons, but only if not more

19 than 20 percent of the units in a structure are

20 designated for such persons; or

21 ‘‘(C) more than 16 persons if the applicant

22 demonstrates that local market conditions dictate

23 the development of a large project and such de24 velopment will achieve the neighborhood integra-
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1 tion objectives of the program within the context

2 of the affected community.

3 ‘‘(e) PROGRAM REQUIREMENTS.—

4 ‘‘(1) REQUIRED AGREEMENTS.—A recipient may

5 use grant amounts under this subtitle for a supportive

6 housing project under this section only if the project

7 sponsor for the project has agreed—

8 ‘‘(A) to operate the proposed project as sup9 portive housing for not less than 10 years;

10 ‘‘(B) to conduct an ongoing assessment of

11 the supportive services required by the residents

12 of the project;

13 ‘‘(C) to provide such residential supervision

14 as the Secretary determines is necessary to facili15 tate the adequate provision of supportive services

16 to the residents of the project; and

17 ‘‘(D) to comply with such other terms and

18 conditions as the Secretary or recipient may es19 tablish for purposes of carrying out this program

20 in an effective and efficient manner.

21 ‘‘(2) OCCUPANT CHARGE.—Each homeless indi22 vidual or family residing in a project assisted under

23 this section that provides supportive housing may be

24 required to pay an occupancy charge in an amount

25 determined by the project sponsor, which may not ex-
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1 ceed the amount determined under section 3(a) of the

2 United States Housing Act of 1937. Occupancy

3 charges paid may be reserved, in whole or in part, to

4 assist residents in moving to permanent housing.

5 ‘‘(f) SINGLE ROOM OCCUPANCY DWELLINGS.—A

6 project assisted under this section may provide supportive

7 housing or supportive services in dwelling units that do not

8 contain bathrooms or kitchen facilities and are appropriate

9 for use as supportive housing or in projects containing some

10 or all such dwelling units.

11 ‘‘SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

12 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

13 grant amounts under this subtitle for—

14 ‘‘(1) the construction of a structure for use in

15 providing a safe haven or the acquisition, rehabilita16 tion, or acquisition and rehabilitation of an existing

17 structure for use in providing a safe haven;

18 ‘‘(2) the leasing of an existing structure for use

19 in providing a safe haven;

20 ‘‘(3) operating costs of a safe haven;

21 ‘‘(4) costs of administering a safe haven pro22 gram, in an amount not exceeding 10 percent of the

23 amounts made available for activities under para24 graphs (1) through (3);
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1 ‘‘(5) conducting outreach activities designed to

2 inform eligible persons about and attract them to a

3 safe haven program;

4 ‘‘(6) the provision of low-demand services and re5 ferrals for residents of a safe haven; and

6 ‘‘(7) conducting other activities that further the

7 purposes of this section, including the modification of

8 an existing facility to use a portion of a facility to

9 provide a safe haven.

10 ‘‘(b) DEFINITION.—For purposes of this section, the

11 term ‘safe haven’ means housing for homeless persons who,

12 at the time, are unwilling or unable to participate in men13 tal health treatment programs or to receive other supportive

14 services. Such a facility may provide—

15 ‘‘(1) 24-hour residence for eligible persons who

16 may reside for an unspecified duration;

17 ‘‘(2) private or semiprivate accommodations;

18 ‘‘(3) common use of kitchen facilities, dining

19 rooms, and bathrooms;

20 ‘‘(4) supportive services to eligible persons who

21 are not residents on a drop-in basis; and

22 ‘‘(5) overnight occupancy limited to no more

23 than 25 persons.

24 ‘‘(c) ELIGIBILITY FOR SSI AND MEDICAID.—
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1 ‘‘(1) SUPPLEMENTAL SECURITY INCOME.—All

2 provisions of the supplemental security income pro3 gram under title XVI of the Social Security Act and

4 of State programs in supplementation thereof shall

5 apply to participants in the safe havens demonstra6 tion program under this subtitle, except that no indi7 vidual living in a safe haven shall—

8 ‘‘(A) be considered an inmate of a public

9 institution (as provided in section 1611(e)(1)(A)

10 of such Act); or

11 ‘‘(B) have benefits under such title XVI re12 duced or terminated because of the receipt of sup13 port and maintenance (as provided in section

14 1612(a)(2)(A) of such Act), to the extent such

15 support and maintenance is received as a result

16 of participation in the safe havens demonstra17 tion program.

18 ‘‘(2) MEDICAID.—A safe haven shall not be con19 sidered a hospital, nursing facility, institution for

20 mental disease as defined under section 1905(i) of the

21 Social Security Act, or any other inpatient facility,

22 for purposes of the programs under title XIX of such

23 Act, and individuals shall not be denied eligibility for

24 Medicaid because of residency in such residence.
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1 ‘‘SEC. 435. SHELTER PLUS CARE.

2 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

3 grant amounts under this subtitle to provide shelter plus

4 care for homeless persons with disabilities (primarily per5 sons who have severe and persistent mental or emotional

6 impairments that seriously limit a person’s ability to live

7 independently, have chronic programs with alcohol, drugs,

8 or both, or have acquired immunodeficiency syndrome and

9 related diseases) and the families of such persons.

10 ‘‘(b) DEFINITION.—For purposes of this section, the

11 term ‘shelter plus care’ means rental housing assistance, in

12 connection with supportive services funded from sources

13 other than under this section. Such rental housing assist14 ance may be tenant-based, project-based, or sponsor-based.

15 ‘‘SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EX16 PENSES.

17 ‘‘(a) AVAILABILITY OF GRANT AMOUNTS.—A recipient

18 may use grant amounts under this subtitle for the following

19 expenses:

20 ‘‘(1) ADMINISTRATIVE EXPENSES.—During—

21 ‘‘(A) the first year in which a recipient re22 ceives grant amounts under this subtitle, for ad23 ministrative expenses in connection with plan24 ning the development of, and establishing, its

25 program under this subtitle;
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1 ‘‘(B) subsequent years, to defray the cost of

2 administering the program; and

3 ‘‘(C) any year in which a recipient receives

4 grant amounts under this subtitle, to defray the

5 cost of establishing and operating the board re6 ferred to in section 411(b).

7 Not more than 5 percent of any amounts provided to

8 a recipient under this subtitle for a fiscal year may

9 be used for activities under this paragraph.

10 ‘‘(2) CAPACITY BUILDING FOR NONPROFIT ORGA11 NIZATIONS.—For building the capacity of private

12 nonprofit organizations to participate in the com13 prehensive homeless assistance system of the recipient,

14 except that not more than 2 percent of any amounts

15 provided to a recipient under this subtitle for a fiscal

16 year may be used for activities under this paragraph.

17 ‘‘(b) PROVISION OF ADMINISTRATIVE EXPENSES FOR

18 CERTAIN ENTITIES.—

19 ‘‘(1) PROVISION OF AMOUNTS.—Any recipient

20 under paragraph (2) shall make available, to defray

21 the administrative expenses of the designee or the

22 State, not more than 5 percent from amounts eligible

23 for this purpose under subsection (a)(1).

24 ‘‘(2) RECIPIENTS COVERED.—The recipients

25 under this paragraph shall be—
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1 ‘‘(A) any allocation unit of general local

2 government, Indian Tribe, or insular area, that

3 designates a public agency or a private nonprofit

4 organization under section 410(a)(2);

5 ‘‘(B) any State recipient that designates a

6 public agency or a private nonprofit organiza7 tion under section 410(b)(3)(A)(ii); and

8 ‘‘(C) any State recipient that enters into an

9 agreement under section 410(b)(3)(A)(iii) with a

10 State.

11 ‘‘SEC. 437. OTHER APPROVED ACTIVITIES.

12 ‘‘The Secretary, in cooperation with grantees, recipi13 ents, and other appropriate parties, shall develop additional

14 activities to carry out the purposes of this subtitle. A recipi15 ent may use grants amounts under this subtitle to carry

16 out any such activities developed and approved by the Sec17 retary.

18 ‘‘Subtitle B—Other Permanent

19 Housing Assistance Programs

20 for the Homeless’’.

21 SEC. 812. REGULATIONS.

22 Not later than 60 days after the date of enactment of

23 this Act, the Secretary of Housing and Urban Development

24 shall by notice establish any requirements necessary to

25 carry out the provisions contained in the amendments made
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1 by this chapter. Based on such notice, the Secretary shall

2 issue regulations to carry out such provisions not later than

3 12 months after the date of the enactment of this Act.

4 SEC. 813. TRANSITION PROVISIONS.

5 (a) IN GENERAL.—Notwithstanding the provisions of

6 subtitle A of title IV of the Stewart B. McKinney Homeless

7 Assistance Act (as amended by this chapter), during fiscal

8 year 1995, the Secretary of Housing and Urban Develop9 ment shall allocate homeless assistance made available

10 under title IV of the Stewart B. McKinney Homeless Assist11 ance Act in accordance with the regulations for such title

12 in effect immediately before the enactment of this Act. Of

13 any amounts appropriated to carry out section 2 of the

14 HUD Demonstration Act of 1993 in fiscal year 1995, the

15 Secretary may use not more than 10 percent for providing

16 technical assistance to assist recipients under subtitle A of

17 title IV of the Stewart B. McKinney Homeless Assistance

18 Act (as amended by this chapter) to establish a program

19 for providing homeless assistance in accordance with the

20 provisions of such subtitle.

21 (b) REPORT ON SINGLE ROOM OCCUPANCY ASSIST22 ANCE.—Not later than July 1, 1995, the Secretary shall

23 submit a report to the Congress evaluating the effectiveness

24 of combining the programs for assistance for single room

25 occupancy dwellings under sections 451 and 452 of the
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1 Stewart B. McKinney Homeless Assistance Act (as so redes2 ignated and amended by this Act) into the program for as3 sistance under subtitle A of title IV of such Act and, if effec4 tive, describing how to provide such assistance under the

5 program under such subtitle A.

6 CHAPTER 2—OTHER HOUSING ASSIST7 ANCE PROGRAMS FOR THE HOMELESS

8 UNDER MCKINNEY ACT

9 SEC. 821. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU10 PANCY DWELLINGS.

11 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

12 451(a) of the Stewart B. McKinney Homeless Assistance

13 Act (42 U.S.C. 11401(a)), as so redesignated by section

14 811(3) of this Act, is amended to read as follows:

15 ‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budget

16 authority available under section 5(c) of the United States

17 Housing Act of 1937 for assistance under section 8(e)(2)

18 of such Act (as in effect immediately before October 1, 1991)

19 is authorized to be increased by $200,000,000 on or after

20 October 1, 1994, and by $206,000,000 on or after October

21 1, 1995.’’.

22 (b) PROGRAM CHANGES.—Section 451 of the Stewart

23 B. McKinney Homeless Assistance Act (42 U.S.C.

24 11401(a)), as so redesignated by section 811(3) of this Act,

25 is amended—
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1 (1) in the second sentence of subsection (c), in

2 the matter preceding paragraph (1), by striking ‘‘con3 taining’’ and inserting the following: ‘‘for the provi4 sion of assistance under this section that is specifi5 cally provided for in the comprehensive homeless as6 sistance described in the application under section

7 408 of the relevant eligible grantee and that con8 tains’’; and

9 (2) in subsection (j)(1), by inserting ‘‘recipient

10 under subtitle A,’’ after ‘‘authority,’’.

11 SEC. 822. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE

12 SINGLE ROOM OCCUPANCY DWELLINGS.

13 Title IV of the Stewart B. McKinney Homeless Assist14 ance Act (42 U.S.C. 11361 et seq.) is amended by inserting

15 after section 451, as so redesignated by section 811(3) of

16 this Act, the following new section:

17 ‘‘SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS

18 CARE SINGLE ROOM OCCUPANCY DWELLINGS.

19 ‘‘(a) PURPOSE.—The purpose of the program under

20 this section is to provide assistance for the moderate reha21 bilitation of single room occupancy housing to be made

22 available for rental, in connection with supportive services

23 funded from sources other than this section, to homeless per24 sons with disabilities (primarily persons who are seriously

25 mentally ill, have chronic problems with alcohol, drugs, or
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1 both, or have acquired immunodeficiency syndrome and re2 lated diseases) and the families of such persons.

3 ‘‘(b) MODERATE REHABILITATION ASSISTANCE.—The

4 Secretary may use amounts made available to carry out

5 this section for moderate rehabilitation of single room occu6 pancy housing described in section 8(l) of the United States

7 Housing Act of 1937 for occupancy by eligible persons in

8 accordance with this section. Such amounts may be used

9 in connection with the moderate rehabilitation of efficiency

10 units if the building owner agrees to pay the additional

11 cost of rehabilitating and operating the efficiency units.

12 ‘‘(c) FUNDING LIMITATIONS.—

13 ‘‘(1) TARGETED POPULATIONS.—To the maxi14 mum extent practicable, the Secretary shall reserve

15 not less than 50 percent of all amounts made avail16 able to carry out this section for homeless individuals

17 who are seriously mentally ill or have chronic prob18 lems with alcohol, drugs, or both.

19 ‘‘(2) GEOGRAPHICAL LIMITATION.—Of the assist20 ance made available under this section for any fiscal

21 year, not more than 10 percent may be used for pro22 grams located within any one unit of general local

23 government.

24 ‘‘(d) SUPPORTIVE SERVICES REQUIREMENTS.—
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1 ‘‘(1) REQUIREMENT OF MATCHING AMOUNTS.—

2 Each recipient of assistance under this section shall

3 supplement the assistance provided under this section

4 with an equal amount of funds for supportive services

5 from sources other than this section. Each recipient

6 shall certify to the Secretary its compliance with this

7 paragraph, and shall include with the certification a

8 description of the sources and amounts of such sup9 plemental funds.

10 ‘‘(2) DETERMINATION OF MATCHING AMOUNTS.—

11 In calculating the amount of supplemental funds pro12 vided under this section, a recipient may include the

13 value of any lease on a building, any salary paid to

14 staff to carry out the program of the recipient, and

15 the value of the time and services contributed by vol16 unteers to carry out the program of the recipient at

17 a rate determined by the Secretary.

18 ‘‘(3) RECAPTURE.—If the supportive services and

19 funding for the supportive services required by this

20 subsection are not provided by a recipient, the Sec21 retary may recapture any unexpended housing assist22 ance provided under this section to the recipient.

23 ‘‘(e) CONTRACT REQUIREMENTS.—Each contract for

24 annual contributions entered into by the Secretary with a
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1 public housing agency to obligate budget authority made

2 available to carry out this section shall—

3 ‘‘(1) commit the Secretary to make the authority

4 available to the public housing agency for an aggre5 gate period of 10 years, and require that any amend6 ments increasing the authority shall be available for

7 the remainder of such 10-year period;

8 ‘‘(2) provide the Secretary with the option to

9 renew the contract for an additional period of 10

10 years, subject to the availability of authority;

11 ‘‘(3) provide that, notwithstanding any other

12 provision of law, first priority for occupancy of hous13 ing rehabilitated under this section shall be given to

14 homeless persons; and

15 ‘‘(4) require installation in the housing assisted

16 of a sprinkler system that protects all major spaces,

17 hard-wired smoke detectors, and any other fire safety

18 improvements as may be required by State or local

19 law.

20 For purposes of this subsection, the term ‘major spaces’

21 means hallways, large common areas, and other areas speci22 fied in local fire, building, or safety codes.

23 ‘‘(f) APPLICATIONS.—

24 ‘‘(1) IN GENERAL.—An application for rental

25 housing assistance under this section shall be submit-
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1 ted by an applicant in such form and in accordance

2 with such procedures as the Secretary shall establish.

3 ‘‘(2) MINIMUM CONTENTS.—The Secretary shall

4 require that an application identify the need for the

5 assistance in the community to be served and shall

6 contain at a minimum—

7 ‘‘(A) a request for housing assistance under

8 this section specifying the number of units re9 quested and the amount of necessary budget au10 thority;

11 ‘‘(B) a description of the size and character12 istics of the population of eligible persons;

13 ‘‘(C) an identification of the need for the

14 program in the community to be served;

15 ‘‘(D) the identity of the proposed service

16 provider or providers (which may be, or include,

17 the applicant) and a statement of the qualifica18 tions of the provider or providers;

19 ‘‘(E) a description of the supportive services

20 that the applicant proposes to assure will be

21 available for eligible persons;

22 ‘‘(F) a description of the resources that are

23 expected to be made available to provide the sup24 portive services required by subsection (d);
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1 ‘‘(G) a description of the mechanisms for

2 developing a housing and supportive services

3 plan for each person and for monitoring each

4 person’s progress in meeting that plan;

5 ‘‘(H) reasonable assurances satisfactory to

6 the Secretary that the supportive services will be

7 provided for the full term of the housing assist8 ance under this section and a certification from

9 the applicant that it will fund the supportive

10 services itself if the planned resources do not be11 come available for any reason;

12 ‘‘(I) a certification by the public official re13 sponsible for submitting the comprehensive hous14 ing affordability strategy under section 105 of

15 the Cranston-Gonzalez National Affordable

16 Housing Act that the proposed activities are con17 sistent with the approved housing strategy of the

18 unit of general local government within which

19 housing assistance under this section will be pro20 vided; and

21 ‘‘(J) identification of the specific structures

22 that the recipient is proposing for assistance.

23 ‘‘(g) SELECTION CRITERIA.—The Secretary shall es24 tablish selection criteria for a national competition for as25 sistance under this section which shall include—
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1 ‘‘(1) the ability of the applicant to develop and

2 operate the proposed assisted housing and supportive

3 services program, taking into account the quality of

4 any ongoing program of the applicant;

5 ‘‘(2) geographic diversity among the projects to

6 be assisted;

7 ‘‘(3) the need for a program providing housing

8 assistance and supportive services for eligible persons

9 in the area to be served;

10 ‘‘(4) the quality of the proposed program for pro11 viding supportive services and housing assistance;

12 ‘‘(5) the extent to which the proposed funding for

13 the supportive services is or will be available;

14 ‘‘(6) the extent to which the project would meet

15 the needs of the homeless persons proposed to be served

16 by the program;

17 ‘‘(7) the extent to which the program integrates

18 program recipients into the community served by the

19 program;

20 ‘‘(8) the cost-effectiveness of the proposed pro21 gram; and

22 ‘‘(9) such other factors as the Secretary specifies

23 in regulations to be appropriate for purposes of car24 rying out the program established by this section in

25 an effective and efficient manner.
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1 ‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—

2 The Secretary shall, by regulation, require each recipient

3 of assistance under this section to provide for the consulta4 tion and participation of not less than one homeless indi5 vidual or former homeless individual on the board of direc6 tors or other equivalent policymaking entity of the recipi7 ent, to the extent that such entity considers and makes poli8 cies and decisions regarding any housing assisted under

9 this section or services for such housing. The Secretary may

10 grant waivers to recipients unable to meet the requirement

11 under the preceding sentence if the recipient agrees to other12 wise consult with homeless or formerly homeless individuals

13 in considering and making such policies and decisions.

14 ‘‘(i) REQUIRED AGREEMENTS.—The Secretary may

15 not approve assistance under this section for an applicant

16 unless the applicant agrees—

17 ‘‘(1) to operate the proposed program in accord18 ance with the provisions of this section;

19 ‘‘(2) to conduct an ongoing assessment of the

20 housing assistance and supportive services required by

21 the participants in the program;

22 ‘‘(3) to ensure the adequate provision of support23 ive services to the participants in the program;

24 ‘‘(4) to comply with such other terms and condi25 tions as the Secretary may establish for purposes of
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1 carrying out the program in an effective and efficient

2 manner; and

3 ‘‘(5) to the maximum extent practicable, to in4 volve homeless individuals and families, through em5 ployment volunteer services, or otherwise, in con6 structing or rehabilitating housing assisted under this

7 section and in providing services required under this

8 section.

9 ‘‘(j) HOUSING STANDARDS AND RENT REASONABLE10 NESS.—

11 ‘‘(1) STANDARDS REQUIRED.—The Secretary

12 shall require that—

13 ‘‘(A) before any assistance may be provided

14 to or on behalf of a person, each unit assisted

15 under this section shall be inspected by the ap16 plicant directly or by another entity, including

17 the local public housing agency, to determine

18 that the unit meets the housing quality stand19 ards under section 8 of the United States Hous20 ing Act of 1937 and that the occupancy charge

21 for the dwelling unit is reasonable; and

22 ‘‘(B) the recipient shall make at least an23 nual inspections of each unit assisted under this

24 section during the term of the contract for such

25 assistance.
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1 ‘‘(2) PROHIBITION.—No assistance may be pro2 vided under this section for a dwelling unit (A) for

3 which the occupancy charge is not reasonable, or (B)

4 which fails to meet the housing standards, unless the

5 owner promptly corrects the deficiency and the recipi6 ent verifies the correction.

7 ‘‘(k) TENANT RENT.—Each tenant of a dwelling unit

8 assisted under this section shall pay as rent an amount de9 termined in accordance with the provisions of section

10 3(a)(1) of the United States Housing Act of 1937.

11 ‘‘(l) ADMINISTRATIVE FEES.—From amounts made

12 available to carry out this section, the Secretary shall make

13 amounts available to pay the entity administering the hous14 ing assistance an administrative fee in an amount deter15 mined appropriate by the Secretary for the costs of admin16 istering the housing assistance.

17 ‘‘(m) OCCUPANCY.—

18 ‘‘(1) OCCUPANCY AGREEMENT.—The occupancy

19 agreement between a tenant and an owner of a dwell20 ing unit assisted under this section shall be for at

21 least one month.

22 ‘‘(2) VACANCY PAYMENTS.—If an eligible person

23 vacates a dwelling unit assisted under this section be24 fore the expiration of the occupancy agreement, no as25 sistance payment may be made with respect to the
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1 unit after the month that follows the month during

2 which the unit was vacated, unless it is occupied by

3 another eligible person.

4 ‘‘(n) TERMINATION OF ASSISTANCE.—

5 ‘‘(1) AUTHORITY.—If an eligible individual who

6 receives assistance under this section violates program

7 requirements, the recipient may terminate assistance

8 in accordance with the process established pursuant to

9 paragraph (2).

10 ‘‘(2) PROCEDURE.—In terminating assistance

11 under this paragraph, the recipient shall provide a

12 formal process that recognizes the rights of individ13 uals receiving such assistance to due process of law.

14 ‘‘(o) DEFINITIONS.—For purposes of this section, the

15 following definitions shall apply:

16 ‘‘(1) The term ‘acquired immunodeficiency syn17 drome and related diseases’ has the meaning given

18 such term in section 853 of the Cranston-Gonzalez

19 National Affordable Housing Act.

20 ‘‘(2) The term ‘applicant’ means a State, unit of

21 general local government, Indian tribe, or public

22 housing agency.

23 ‘‘(3) The term ‘eligible person’ means a homeless

24 person with disabilities (primarily persons who are

25 seriously mentally ill, have chronic problems with al-
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1 cohol, drugs, or both, or have acquired

2 immunodeficiency syndrome and related diseases)

3 and the family of such a person.

4 ‘‘(4) The term ‘Indian tribe’ has the meaning

5 given such term in section 102 of the Housing and

6 Community Development Act of 1974.

7 ‘‘(5) The term ‘nonprofit organization’ has the

8 meaning given such term by section 104 of the Cran9 ston-Gonzalez National Affordable Housing Act, and

10 includes community mental health centers established

11 as public nonprofit organizations.

12 ‘‘(6) The term ‘person with disabilities’ has the

13 meaning given such term in section 811 of the Cran14 ston-Gonzalez National Affordable Housing Act.

15 ‘‘(7) The term ‘public housing agency’ has the

16 meaning given such term in section 3(b) of the United

17 States Housing Act of 1937.

18 ‘‘(8) The term ‘recipient’ means an applicant

19 approved for participation in the program to provide

20 assistance under this section.

21 ‘‘(9) The term ‘Secretary’ means the Secretary of

22 Housing and Urban Development.

23 ‘‘(10) The term ‘seriously mentally ill’ means

24 having a severe and persistent mental or emotional
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1 impairment that seriously limits a person’s ability to

2 live independently.

3 ‘‘(11) The term ‘State’ means each of the several

4 States, the District of Columbia, the Commonwealth

5 of Puerto Rico, the Commonwealth of the Northern

6 Mariana Islands, the Virgin Islands, Guam, Amer7 ican Samoa, and any other territory or possession of

8 the United States.

9 ‘‘(12) The term ‘supportive services’ means as10 sistance that the Secretary determines (A) addresses

11 the special needs of eligible persons; and (B) provides

12 appropriate services or assists such persons in obtain13 ing appropriate services, including health care, men14 tal health services, substance and alcohol abuse serv15 ices, child care services, case management services,

16 counseling, supervision, education, job training, and

17 other services essential for achieving and maintaining

18 independent living. Inpatient acute hospital care

19 shall not qualify as a supportive service.

20 ‘‘(13) The term ‘unit of general local government’

21 has the meaning given such term in section 102 of the

22 Housing and Community Development Act of 1974.

23 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For pur24 poses of providing assistance under this section, there are
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1 authorized to be appropriated $75,000,000 for fiscal year

2 1995 and $75,000,000 for fiscal year 1996.’’.

3 SEC. 823. RURAL HOMELESSNESS GRANT PROGRAM.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 453(l)(1) of the Stewart B. McKinney Homeless Assistance

6 Act (42 U.S.C. 11408(l)(1)), as so redesignated by section

7 811(3) of this Act, is amended to read as follows:

8 ‘‘(1) IN GENERAL.—There are authorized to be

9 appropriated to carry out this section $32,197,800 for

10 fiscal year 1995 and $33,163,734 for fiscal year

11 1996.’’.

12 (b) TRANSFER TO DEPARTMENT OF AGRICULTURE.—

13 Section 453 of the Stewart B. McKinney Homeless Assist14 ance Act, as so redesignated by section 811(3) of this Act,

15 is amended—

16 (1) in subsection (a), by striking ‘‘Secretary of

17 Housing and Urban Development’’ and inserting

18 ‘‘Secretary of Agriculture’’; and

19 (2) in subsection (k), by striking paragraph (3)

20 and inserting the following new paragraph:

21 ‘‘(3) The term ‘Secretary’ means the Secretary of

22 Agriculture.’’.

23 SEC. 824. CLERICAL AMENDMENT.

24 The table of contents in section 101(b) of the Stewart

25 B. McKinney Homeless Assistance Act is amended by strik-
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1 ing the items relating to title IV and inserting the following

2 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.’’.
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1 CHAPTER 3—MISCELLANEOUS HOMELESS

2 HOUSING PROVISIONS

3 SEC. 831. INNOVATIVE HOMELESS PROGRAM.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 2(f) of the HUD Demonstration Act of 1993 is amended

6 to read as follows:

7 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—

8 ‘‘(1) IN GENERAL.—There are authorized to be

9 appropriated to carry out this section $100,000,000

10 for fiscal year 1995.

11 ‘‘(2) USE OF AMOUNTS.—Any amounts appro12 priated under paragraph (1) may be used only to

13 carry out the comprehensive homeless initiative under

14 subsection (c).’’.

15 (b) EXTENSION OF PROGRAM.—Section 2(g) of the

16 HUD Demonstration Act of 1993 (42 U.S.C. 11301 note)

17 is amended by striking ‘‘1994’’ and inserting ‘‘1995’’.

18 SEC. 832. FHA SINGLE FAMILY PROPERTY DISPOSITION.

19 Section 1407 of the Housing and Community Develop20 ment Act of 1992 (Public Law 102–550; 106 Stat. 4034)

21 is amended by striking subsections (a) and (b) and insert22 ing the following new subsections:

23 ‘‘(a) IMMEDIATE AVAILABILITY.—In carrying out the

24 program for disposition of single family properties acquired

25 by the Department of Housing and Urban Development for
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1 use by the homeless under subpart E of part 291 of title

2 24, Code of Federal Regulations, the Secretary of Housing

3 and Urban Development shall make any eligible property

4 available for lease under such program without listing and

5 making such property generally available for sale for any

6 intervening period.

7 ‘‘(b) DISCOUNT.—Any property made available for

8 sale under the program referred to in subsection (a) shall

9 be made available at a price equal to the fair market value

10 of the property less a 20 percent discount.’’.

11 Subtitle B—Interagency Council on

12 the Homeless

13 SEC. 841. AUTHORIZATION OF APPROPRIATIONS.

14 Section 208 of the Stewart B. McKinney Homeless As15 sistance Act (42 U.S.C. 11318) is amended to read as fol16 lows:

17 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

18 ‘‘There are authorized to be appropriated to carry out

19 this title $1,609,890 for fiscal year 1995 and $1,658,187

20 for fiscal year 1996.’’.

21 SEC. 842. CHAIRPERSON.

22 Section 202(b) of the Stewart B. McKinney Homeless

23 Assistance Act (42 U.S.C. 11312(b) is amended to read as

24 follows:

25 ‘‘(b) CHAIRPERSON AND VICE CHAIRPERSON.—
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1 ‘‘(1) CHAIRPERSON.—The Council shall elect a

2 Chairperson from among its members, who shall have

3 a term of 2 years. A member of the Council by reason

4 of any of paragraphs (1) through (16) of subsection

5 (a) who serves as Chairperson for a term may not be

6 elected to serve as Chairperson for the succeeding

7 term. The preceding sentence shall not apply to any

8 member serving as Chairperson on the date of the en9 actment of the Housing and Community Development

10 Act of 1994.

11 ‘‘(2) VICE CHAIRPERSON.—The Vice Chairperson

12 of the Council shall have a term of 2 years and shall

13 be—

14 ‘‘(A) the Secretary of Housing and Urban

15 Development, if such Secretary is not elected as

16 the Chairperson of the Council; or

17 ‘‘(B) elected by the Council from among its

18 members, if the Secretary of Housing and Urban

19 Development is elected as the Chairperson of the

20 Council.’’.

21 SEC. 843. EXTENSION.

22 Section 209 of the Stewart B. McKinney Homeless As23 sistance Act (42 U.S.C. 11319) is amended by striking ‘‘Oc24 tober 1, 1994’’ and inserting ‘‘October 1, 1996’’.
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1 Subtitle C—Federal Emergency

2 Management Agency Food and

3 Shelter Program

4 SEC. 851. AUTHORIZATION OF APPROPRIATIONS.

5 Section 322 of the Stewart B. McKinney Homeless As6 sistance Act (42 U.S.C. 11352) is amended to read as fol7 lows:

8 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘There are authorized to be appropriated to carry out

10 this title $193,186,800 for fiscal year 1995 and

11 $198,982,404 for fiscal year 1996.’’.

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