I

103D CONGRESS

2D SESSION H. R. 3838

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

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

2 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Effective date.

TITLE I—HOUSING ASSISTANCE

Subtitle A—General Provisions

Sec. 101. Low-income housing authorization.

Sec. 102. Definition of ‘‘families’’.

Sec. 103. Family self-sufficiency program.

Subtitle B—Public and Indian Housing

Sec. 111. Disallowance of earned income for residents who obtain employment.

Sec. 112. Ceiling rents.

Sec. 113. Major reconstruction of obsolete projects.

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

Sec. 115. Public housing operating subsidies.

Sec. 116. Elimination of requirement to identify CIAP replacement needs.

Sec. 117. Public housing vacancy reduction.

Sec. 118. Replacement housing for demolished or disposed public housing.

Sec. 119. Public housing resident management.

Sec. 120. Public housing family investment centers.

Sec. 121. Revitalization of severely distressed public housing.

Sec. 122. Applicability of public housing amendments to Indian housing.

Sec. 123. Public housing early childhood development services.

Sec. 124. Indian housing childhood development services.

Sec. 125. Public housing one-stop perinatal services demonstration.

Subtitle C—Section 8 Assistance

Sec. 141. Moving to opportunity for fair housing.

Sec. 142. Community investment demonstration program.

Sec. 143. Restatement and revision of section 8 rental assistance program.

Subtitle D—Homeownership Programs

Sec. 151. HOPE homeownership programs.

Sec. 152. National Homeownership Trust.

Sec. 153. Section 235 mortgage refinancing.

Subtitle E—Other Programs

Sec. 161. Community partnerships against crime.

Sec. 162. Public housing youth sports programs.

Sec. 163. Low-income housing preservation.

Sec. 164. Flexible subsidy program.

Sec. 165. Housing counseling.

Sec. 166. Preventing mortgage defaults on multifamily housing projects.

Sec. 167. Youthbuild program.

TITLE II—HOME INVESTMENT PARTNERSHIPS

Sec. 201. Authorization of appropriations.
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Sec. 202. Participation by State agencies or instrumentalities.

Sec. 203. Simplification of program-wide income targeting for rental housing.

Sec. 204. Homeownership units.

Sec. 205. Comprehensive affordable housing strategy.

Sec. 206. Simplification of matching requirements.

Sec. 207. Repeal of separate audit requirement.

Sec. 208. Environmental review requirements.

Sec. 209. Use of CDBG funds for HOME program expenses.

Sec. 210. GAO study of use of HOME program funds.

Sec. 211. Capacity building for community development and affordable housing.

Sec. 212. Applicability and regulations.

TITLE III—SUPPORTIVE HOUSING PROGRAMS

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

disabilities.

Sec. 302. Elder cottage housing demonstration program.

Sec. 303. Revised congregate services.

Sec. 304. Elderly independence demonstration.

Sec. 305. Housing opportunities for persons with AIDS.

Sec. 306. 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. Home equity conversion mortgages for elderly homeowners.

Sec. 404. Multifamily housing financing programs.

Sec. 405. Indian housing loan guarantees.

Subtitle B—Multifamily Housing Property Disposition

Sec. 431. Short title.

Sec. 432. Disposition of multifamily housing projects owned by HUD.

Sec. 433. Clarification of public housing preferences.

Sec. 434. Amendment to National Housing Act.

Sec. 435. Effective date.

Subtitle C—Secondary Mortgage Market Programs

Sec. 451. Limitation on GNMA guarantees of mortgage-backed securities.

Subtitle D—Emergency Mortgage Relief

Sec. 471. Amendments to Emergency Homeowners’ Relief Act.

TITLE V—RURAL HOUSING

Sec. 501. Program authorizations.

Sec. 502. Section 502 homeownership loans.

Sec. 503. Prepayment of rural rental housing loans.

Sec. 504. Designation of underserved areas and reservation of assistance.

Sec. 505. Administrative appeals.

Sec. 506. Section 515 rural rental housing.

Sec. 507. Rental assistance payments.
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Sec. 508. Rural housing assistance targeting report.

Sec. 509. Priority for rural housing voucher assistance.

Sec. 510. Native American rural housing capacity demonstration program.

Sec. 511. Rural community development initiative.

Sec. 512. 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. Economic development grants.

Sec. 603. Guarantee of obligations backed by section 108 loans.

Sec. 604. Section 108 loan guarantees for colonias.

Sec. 605. Assistance for colonias.

Subtitle B—Other Community Development Programs

Sec. 631. Neighborhood Reinvestment Corporation.

Sec. 632. John Heinz neighborhood development program.

TITLE VII—REGULATORY AND MISCELLANEOUS PROGRAMS

Sec. 701. Fair housing initiatives program.

Sec. 702. HUD program monitoring and research.

Sec. 703. HUD salaries and expenses.

Sec. 704. Subsidy layering review.

Sec. 705. HUD research and development.

Sec. 706. National Institute of Building Sciences.

Sec. 707. Residential lead-based paint hazard reduction.

Sec. 708. New towns demonstration program for emergency relief of Los Angeles.

Sec. 709. Solar assistance financing entity.

Sec. 710. National American Indian Housing Council.

Sec. 711. Housing Assistance Council.

TITLE VIII—HOUSING PROGRAMS UNDER STEWART B. MCKINNEY

HOMELESS ASSISTANCE ACT

Sec. 801. Short title.

Subtitle A—Housing Assistance

Sec. 811. Emergency shelter grants program.

Sec. 812. Supportive housing program.

Sec. 813. Safe havens for homeless individuals demonstration program.

Sec. 814. Section 8 assistance for single room occupancy dwellings.

Sec. 815. Shelter plus care program.

Sec. 816. Rural homelessness grant program.

Sec. 817. Strategy to eliminate unfit transient facilities.

Sec. 818. Innovative homeless initiatives demonstration program.

Subtitle B—Interagency Council on the Homeless

Sec. 831. Authorization of appropriations.

Sec. 832. Extension.

Subtitle C—Federal Emergency Management Food and Shelter Program
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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.

7 TITLE I—HOUSING ASSISTANCE

8 Subtitle A—General Provisions

9 SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.

10 (a) AGGREGATE BUDGET AUTHORITY.—Section

11 5(c)(6) of the United States Housing Act of 1937 (42

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

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

14 authority that may be obligated for assistance referred to

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

16 appropriation Acts) by $8,603,634,603 on October 1,

17 1994, and by $8,860,274,842 on October 1, 1995.’’.

18 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

19 5(c)(7) of the United States Housing Act of 1937 (42

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

21 designation and all that follows through the end of sub22 paragraph (B) and inserting the following:

23 ‘‘(7)(A) Using the additional budget authority pro24 vided under paragraph (6) and the balances of budget au25 thority that become available during fiscal year 1995, the
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1 Secretary shall, to the extent approved in appropriation

2 Acts, reserve authority to enter into obligations aggregat3 ing—

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

5 (a)(2), not more than $891,772,592, of which

6 amount not more than $276,171,263 shall be avail7 able for Indian housing;

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

9 than $2,122,546,291, of which $20,000,000 shall be

10 available for 15-year contracts for project-based as11 sistance to be used for a multicultural tenant

12 empowerment and homeownership project located in

13 the District of Columbia;

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

15 substantial redesign, reconstruction, and redevelop16 ment of existing obsolete public housing projects and

17 buildings, not more than $122,776,000;

18 ‘‘(iv) for comprehensive improvement assistance

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

20 $3,327,106,000;

21 ‘‘(v) for assistance under section 8 for family

22 unification under subsection (q)(3) of such section,

23 not more than $107,326,000;
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1 ‘‘(vi) for assistance under section 8(o)(4) for

2 families utilizing the portability of assistance under

3 section 8, $100,000,000;

4 ‘‘(vii) for assistance under section 8 for prop5 erty disposition, not more than $571,650,000;

6 ‘‘(viii) for assistance under section 8 for loan

7 management, not more than $216,798,520;

8 ‘‘(ix) for extensions of contracts expiring under

9 section 8, such sums as may be necessary, which

10 shall be for 5-year contracts for assistance under

11 section 8 and vouchers under section 8(o) (as in ef12 fect before the date of the enactment of this Act)

13 and for loan management assistance under such sec14 tion;

15 ‘‘(x) for amendments to contracts under section

16 8, such sums as may be necessary;

17 ‘‘(xi) for adjustments to annual contributions

18 contracts for public housing and section 8 assistance

19 for the costs of providing service coordinators under

20 sections 9(a)(1)(B)(ii), 8(i)(4), and 8(n)(3), not

21 more than $93,112,000;

22 ‘‘(xii) for public housing lease adjustments and

23 amendments, such sums as may be necessary;

24 ‘‘(xiii) for assistance under section 18(e) for re25 placement housing for units demolished or disposed
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1 of under section 18, not more than $200,000,000, of

2 which not more than 75 percent shall be available

3 for providing public housing units and not more

4 than 25 percent shall be available for providing as5 sistance under section 8;

6 ‘‘(xiv) for conversions from leased housing con7 tracts under section 23 of this Act (as in effect im8 mediately before the enactment of the Housing and

9 Community Development Act of 1974) to assistance

10 under section 8, not more than $3,960,000; and

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

13 than $801,587,200.

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

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

16 that become available during fiscal year 1996, the Sec17 retary shall, to the extent approved in appropriation Acts,

18 reserve authority to enter into obligations aggregating—

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

20 (a)(2), not more than $918,525,770, of which

21 amount not more than $284,456,401 shall be avail22 able for Indian housing;

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

24 than $2,186,222,680, of which $20,000,000 shall be

25 available for 15-year contracts for project-based as-
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1 sistance to be used for a multicultural tenant

2 empowerment and homeownership project located in

3 the District of Columbia;

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

5 substantial redesign, reconstruction, and redevelop6 ment of existing obsolete public housing projects and

7 buildings, not more than $126,459,280;

8 ‘‘(iv) for comprehensive improvement assistance

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

10 $3,426,919,180;

11 ‘‘(v) for assistance under section 8 for family

12 unification under subsection (q)(3) of such section,

13 not more than $110,545,780;

14 ‘‘(vi) for assistance under section 8(o)(4) for

15 families utilizing the portability of assistance under

16 section 8, $103,000,000;

17 ‘‘(vii) for assistance under section 8 for prop18 erty disposition, not more than $588,799,500;

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

20 management, not more than $223,302,476;

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

22 section 8, such sums as may be necessary, which

23 shall be for 5-year contracts for assistance under

24 section 8 and vouchers under section 8(o) (as in ef25 fect before the date of the enactment of this Act)
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1 and for loan management assistance under such sec2 tion;

3 ‘‘(x) for amendments to contracts under section

4 8, such sums as may be necessary;

5 ‘‘(xi) for adjustments to annual contributions

6 contracts for public housing and section 8 assistance

7 for the costs of providing service coordinators under

8 sections 9(a)(1)(B)(ii), 8(i)(4), and 8(n)(3), not

9 more than $95,905,360;

10 ‘‘(xii) for public housing lease adjustments and

11 amendments, such sums as may be necessary;

12 ‘‘(xiii) for assistance under section 18(e) for re13 placement housing for units demolished or disposed

14 of under section 18, not more than $206,000,000, of

15 which not more than 75 percent shall be available

16 for providing public housing units and not more

17 than 25 percent shall be available for providing as18 sistance under section 8;

19 ‘‘(xiv) for conversions from leased housing con20 tracts under section 23 of this Act (as in effect im21 mediately before the enactment of the Housing and

22 Community Development Act of 1974) to assistance

23 under section 8, not more than $3,960,000; and
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1 ‘‘(xv) for grants under section 24 for revitaliza2 tion of severely distressed public housing, not more

3 than $825,634,816.’’.

4 SEC. 102. DEFINITION OF ‘‘FAMILIES’’.

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

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

7 is amended by striking ‘‘means families with children’’ and

8 inserting ‘‘includes families with children and’’.

9 SEC. 103. FAMILY SELF-SUFFICIENCY PROGRAM.

10 (a) FUNDING.—The last sentence of section 23(h)(2)

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

12 1437u(h)(2)) is amended to read as follows: ‘‘There are

13 authorized to be appropriated for costs under this para14 graph $26,677,000 for fiscal year 1995 and $27,477,310

15 for fiscal year 1996.’’.

16 (b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Sec17 tion 23(d) of the United States Housing Act of 1937 (42

18 U.S.C. 1437u(d)) is amended—

19 (1) in paragraph (2)—

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

21 and inserting ‘‘may’’;

22 (B) in the 2nd sentence, by inserting after

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

24 choose to escrow amounts under this para25 graph’’;
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1 (C) by striking the 3rd and 4th sentences

2 and inserting the following new sentence:

3 ‘‘Amounts in the escrow account may be with4 drawn by the participating family upon the suc5 cessful performance of the obligations of the

6 family under the contract of participation en7 tered into by the family under subsection (c), as

8 determined according to the specific goals and

9 terms included in the contract, and under other

10 circumstances, as determined by the public

11 housing agency with the approval of the Sec12 retary.’’; and

13 (2) by striking the 2d sentence of paragraph

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

15 plan may require the establishment of escrow sav16 ings accounts under paragraph (2), a description of

17 the procedures for release of escrowed amounts, and

18 any other incentives designed by the public housing

19 agency.’’.

20 (c) REPEAL OF INCENTIVE AWARD ALLOCATION.—

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

22 U.S.C. 1437u) is amended—

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

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

25 as subsections (i) through (n), respectively.
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1 Subtitle B—Public and Indian

2 Housing

3 SEC. 111. DISALLOWANCE OF EARNED INCOME FOR RESI4 DENTS WHO OBTAIN EMPLOYMENT.

5 (a) IN GENERAL.—Section 3 of the United States

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

7 striking the undesignated paragraph at the end of sub8 section (c)(3) (as added by section 515(b) of the Cranston9 Gonzalez National Affordable Housing Act) and inserting

10 the following new subsection:

11 ‘‘(d) DISALLOWANCE OF EARNED INCOME FROM

12 PUBLIC HOUSING RENT DETERMINATIONS.—

13 ‘‘(1) IN GENERAL.—Subject only to paragraph

14 (2), the rent payable under subsection (a) for any

15 public housing unit by a family whose income in16 creases as a result of employment of a member of

17 the family who was previously unemployed for one or

18 more years may not be increased for a period of 18

19 months (beginning upon the commencement of em20 ployment) as a result of the increased income due to

21 such employment.

22 ‘‘(2) BUDGET COMPLIANCE.—To the extent

23 that paragraph (1) results in additional costs under

24 this Act, the provisions of such paragraph shall be

25 effective only to the extent that amounts to cover
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1 such additional costs are provided in advance in ap2 propriation Acts.’’.

3 (b) APPLICABILITY OF AMENDMENT.—Notwithstand4 ing the amendment made by subsection (a), any resident

5 of public housing participating in the program under the

6 authority contained in the undesignated paragraph at the

7 end of section 3(c)(3) of the United States Housing Act

8 of 1937 (as such paragraph existed before the date of en9 actment of this subsection) shall continue to be governed

10 by such authority.

11 (c) CONFORMING AMENDMENT.—Section 957(a) of

12 the Cranston-Gonzalez National Affordable Housing Act

13 (42 U.S.C. 12714(a)) is amended by striking ‘‘Notwith14 standing any other law and subject’’ and inserting ‘‘Sub15 ject only to the provisions of section 3(d) of the United

16 States Housing Act of 1937 and’’.

17 SEC. 112. CEILING RENTS.

18 (a) DETERMINATION BASED UPON REASONABLE

19 RENTAL VALUE.—Section 3(a)(2)(A)(iii) of the United

20 States Housing Act of 1937 (42 U.S.C.

21 1437a(a)(2)(A)(iii)) is amended to read as follows:

22 ‘‘(iii) is not less than the reasonable rental

23 value of the unit, as determined by the Secretary.’’.
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1 (b) LIMITATION OF BENEFIT DERIVED.—Section

2 3(a)(2) of the United States Housing Act of 1937 is

3 amended—

4 (1) in subparagraph (A), by striking ‘‘Any’’ and

5 inserting ‘‘Except as provided in subparagraph (B),

6 any’’;

7 (2) by redesignating subparagraph (B) as sub8 paragraph (C); and

9 (3) by inserting after subparagraph (A) the fol10 lowing new subparagraph:

11 ‘‘(B) A public housing agency may not determine the

12 monthly rent under subparagraph (A) for any family re13 siding in a public housing project of the agency who, for

14 the entire duration of a period of 36 consecutive months

15 (such period beginning after the date of the enactment of

16 the Housing and Community Development Act of 1994),

17 has (i) had an income exceeding the income of a low18 income family, and (ii) has paid as monthly rent for a

19 dwelling unit in any project administered by the agency

20 an amount determined pursuant to subparagraph (A). The

21 monthly rent for a dwelling unit in public housing for such

22 a family shall be the amount determined under paragraph

23 (1).’’.

24 (c) REGULATIONS.—The Secretary shall, by notice

25 published in the Federal Register, establish such require-
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1 ments as may be necessary to carry out the provisions of

2 subparagraphs (A) and (B) of section 3(a)(2) of the

3 United States Housing Act of 1937, as amended by this

4 section. The Secretary shall issue final regulations to carry

5 out the provisions of such section, based on such notice,

6 after providing opportunity for public comment on the no7 tice.

8 SEC. 113. MAJOR RECONSTRUCTION OF OBSOLETE

9 PROJECTS.

10 (a) ASSISTANCE FOR RECONSTRUCTION.—Section

11 5(j)(2) of the United States Housing Act of 1937 (42

12 U.S.C. 1437c(j)(2)) is amended—

13 (1) in subparagraph (A), by striking ‘‘Notwith14 standing’’ and all that follows through ‘‘fiscal year’’

15 and inserting the following: ‘‘The Secretary may

16 provide assistance under this paragraph’’;

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

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

19 (3) in subparagraph (F)(i), by striking ‘‘re20 served or’’; and

21 (4) in subparagraph (G)(i), by striking ‘‘re22 served under subparagraph (A)’’ and inserting

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

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

25 5(j)(2)(G)(i) of the United States Housing Act of 1937
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1 (42 U.S.C. 1437c(j)(2)(G)(i)) is amended by striking ‘‘fis2 cal years 1993 and 1994’’ and inserting ‘‘fiscal years 1995

3 and 1996’’.

4 SEC. 114. NEW CONSTRUCTION OF PROJECTS FOR DIS5 ABLED FAMILIES.

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

7 of 1937 (42 U.S.C. 1437c(j)(3)(A)) is amended by strik8 ing ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fiscal

9 years 1995 and 1996’’.

10 SEC. 115. PUBLIC HOUSING OPERATING SUBSIDIES.

11 Section 9(c) of the United States Housing Act of

12 1937 (42 U.S.C. 1437g(c)) is amended—

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

14 all that follows and inserting the following new sen15 tence: ‘‘There are authorized to be appropriated for

16 purposes of providing annual contributions under

17 this section $2,750,000,000 for fiscal year 1995 and

18 $2,832,500,000 for fiscal year 1996.’’.

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

20 1994’’ and inserting ‘‘1995 and 1996’’; and

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

22 1994’’ and inserting ‘‘1995 and 1996’’.
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1 SEC. 116. ELIMINATION OF REQUIREMENT TO IDENTIFY

2 CIAP REPLACEMENT NEEDS.

3 Section 14 of the United States Housing Act of 1937

4 (42 U.S.C. 1437l) is amended—

5 (1) in subsection (d)—

6 (A) by striking paragraph (2);

7 (B) in paragraph (4), in the matter pre8 ceding subparagraph (A)—

9 (i) by striking ‘‘and replacements,’’;

10 and

11 (ii) by striking ‘‘(1), (2), and (3)’’ and

12 inserting ‘‘(1) and (2)’’; and

13 (C) by redesignating paragraphs (3) and

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

15 (2) in subsection (f)(1)—

16 (A) in subparagraph (A), by striking

17 ‘‘(d)(4)(A)’’ and inserting ‘‘(d)(3)(A)’’;

18 (B) by striking subparagraph (B);

19 (C) in subparagraph (C), by striking

20 ‘‘(d)(4)’’ and inserting ‘‘(d)(3)’’; and

21 (D) in subparagraph (D)—

22 (i) by striking ‘‘(1), (2), and (3)’’ and

23 inserting ‘‘(1) and (2)’’; and

24 (ii) by striking ‘‘(d)(4)’’ and inserting

25 ‘‘(d)(3)’’;
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1 (3) in subsection (g), by striking ‘‘(d)(4)’’ and

2 inserting ‘‘(d)(3)’’; and

3 (4) in subsection (h)(2), by striking ‘‘(d)(4)’’

4 and inserting ‘‘(d)(3)’’.

5 SEC. 117. PUBLIC HOUSING VACANCY REDUCTION.

6 Section 14(p)(6)(A) of the United States Housing

7 Act of 1937 (42 U.S.C. 1437l(p)(6)(A)) is amended by

8 striking ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fis9 cal years 1995 and 1996’’.

10 SEC. 118. REPLACEMENT HOUSING FOR DEMOLISHED OR

11 DISPOSED PUBLIC HOUSING.

12 Section 18(e) of the United States Housing Act of

13 1937 (42 U.S.C. 1437p) is amended to read as follows:

14 ‘‘(e) ASSISTANCE FOR REPLACEMENT HOUSING.—

15 The Secretary may provide assistance under this sub16 section for—

17 ‘‘(1) providing replacement public housing units

18 pursuant to subsection (b)(3)(A) for units demol19 ished or disposed of pursuant to this section; and

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

21 replacement housing pursuant to subsection

22 (b)(3)(A) for units demolished or disposed of pursu23 ant to this section.’’.
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1 SEC. 119. PUBLIC HOUSING RESIDENT MANAGEMENT.

2 Section 20(f)(3) of the United States Housing Act

3 of 1937 (42 U.S.C. 1437r(f)(3)) is amended to read as

4 follows:

5 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

6 There are authorized to be appropriated to carry out

7 this subsection $5,000,000 for fiscal year 1995 and

8 $5,000,000 for fiscal year 1996.’’.

9 SEC. 120. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.

10 Section 22(k) of the United States Housing Act of

11 1937 (42 U.S.C. 1437t(k)) is amended to read as follows:

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

13 are authorized to be appropriated to carry out this section

14 $26,831,500 for fiscal year 1995 and $27,636,445 for fis15 cal year 1996.’’.

16 SEC. 121. REVITALIZATION OF SEVERELY DISTRESSED PUB17 LIC HOUSING.

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

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

20 1437v(c)) is amended—

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

22 and inserting ‘‘$500,000’’;

23 (2) in paragraph (3)—

24 (A) by redesignating subparagraphs (E)

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

26 respectively; and
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1 (B) by inserting after subparagraph (D)

2 the following new subparagraph:

3 ‘‘(E) planning for community service ac4 tivities to be carried out by residents, other

5 members of the community, and other persons

6 willing to contribute to the social, economic, or

7 physical improvement of the community;’’; and

8 (3) in paragraph (4)—

9 (A) by redesignating subparagraphs (D)

10 and (E) as subparagraphs (E) and (F), respec11 tively; and

12 (B) by inserting after subparagraph (C)

13 the following new subparagraph:

14 ‘‘(D) to the extent the applicant is request15 ing amounts for community service activities, a

16 description of the planning activities for com17 munity service to be carried out by residents,

18 other members of the community, and other

19 persons willing to contribute to the social, eco20 nomic, or physical improvement of the commu21 nity;’’.

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

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

24 amended—

25 (1) in paragraph (2)—
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•HR 3838 SC

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

6 for 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

10 contributed from non-Federal sources, and

11 may be in the form of cash, administrative

12 costs, and the reasonable value of in-kind

13 contributions, and may include funding

14 under title I of the Housing and Commu15 nity Development Act of 1974.’’;

16 (B) by redesignating subparagraphs (E)

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

18 (F) through (J), respectively; and

19 (C) by inserting after subparagraph (D)

20 the following new subparagraph:

21 ‘‘(E) community service activities to be

22 carried out by residents, other members of the

23 community, and other persons willing to con24 tribute to the social, economic, or physical im25 provement of the community;’’;
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•HR 3838 SC

1 (2) in paragraph (3)—

2 (A) by redesignating subparagraphs (D)

3 and (E) as subparagraphs (E) and (F), respec4 tively; and

5 (B) by inserting after subparagraph (C)

6 the following new subparagraph:

7 ‘‘(D) to the extent the applicant is request8 ing amounts for community service activities, a

9 description of the community service activities

10 to be carried out by residents, other members

11 of the community, and other persons willing to

12 contribute to the social, economic, or physical

13 improvement of the community;’’; and

14 (3) in paragraph (4)(D), by striking ‘‘the po15 tential of the applicant for developing a successful

16 and affordable’’ and inserting ‘‘the quality of the

17 proposed’’.

18 (c) DEFINITIONS.—Subsection (h) of section 24 of

19 the United States Housing Act of 1937 is amended—

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

21 following new paragraphs:

22 ‘‘(6) SEVERELY DISTRESSED PUBLIC HOUS23 ING.—The term ‘severely distressed public housing’

24 means a public housing project or building in a

25 project that—
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•HR 3838 SC

1 ‘‘(A) requires major redesign, reconstruc2 tion, or redevelopment, or partial or total demo3 lition, to correct serious deficiencies in the

4 original design (including inappropriately high

5 population density), deferred maintenance,

6 physical deterioration or obsolescence or major

7 systems, and other deficiencies in the physical

8 plant of the project;

9 ‘‘(B) is—

10 ‘‘(i)(I) occupied predominantly by

11 families with children which have extremely

12 low incomes, high rates of unemployment,

13 and extensive dependency on various forms

14 of public assistance; and

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

16 criminal activity (including drug-related

17 criminal activity); or

18 ‘‘(ii) has a vacancy rate, as deter19 mined by the Secretary, of 50 percent or

20 more;

21 ‘‘(C) can not be revitalized through assist22 ance under other programs, such as the pro23 grams under sections 9 and 14, or through

24 other administrative means because of the inad25 equacy of available amounts; and
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•HR 3838 SC

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

2 the building is (in the determination of the Sec3 retary) sufficiently separable from the remain4 der of the project of which the building is part

5 to make use of the building feasible for pur6 poses of this section.

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

8 services’ includes all activities which will promote

9 upward mobility, self-sufficiency, and improved qual10 ity of life for the residents of the public housing

11 project involved, and shall include literacy training,

12 job training, day care, and economic development ac13 tivities. Support services may be provided to resi14 dents of the neighborhood in which the public hous15 ing project involved is located.’’;

16 (2) by redesignating paragraphs (2) through

17 (4) as paragraphs (3) through (5), respectively; and

18 (3) by inserting after paragraph (1) the follow19 ing new paragraph:

20 ‘‘(2) COMMUNITY SERVICE.—The term ‘commu21 nity service’ means services provided on a volunteer

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

23 physical improvement of the community to be

24 served, including opportunity for the upward mobil25 ity of participants providing the community service,
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•HR 3838 SC

1 through completion of education requirements, job

2 training, or alternative methods of developing skills

3 and job readiness.’’.

4 SEC. 122. APPLICABILITY OF PUBLIC HOUSING AMEND5 MENTS TO INDIAN HOUSING.

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

7 States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is

8 amended to read as follows:

9 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other10 wise provided by law, the provisions of title I shall apply

11 to low-income housing developed or operated pursuant to

12 a contract between the Secretary and an Indian housing

13 authority.’’.

14 (b) APPLICABILITY OF AMENDMENT.—The amend15 ment made by subsection (a) shall not affect provisions

16 of the United States Housing Act of 1937 that were made

17 applicable to public housing developed or operated pursu18 ant to a contract between the Secretary and an Indian

19 housing authority in accordance with section 201(b)(2) of

20 such Act, as such section existed before the effective date

21 of this section.

22 (c) APPLICABILITY OF HOUSING AND COMMUNITY

23 DEVELOPMENT ACT OF 1992.—Sections 103(a)(1), 112,

24 114, 116, 118, 903, and 927 of the Housing and Commu25 nity Development Act of 1992 shall apply to public hous-
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•HR 3838 SC

1 ing developed or operated pursuant to a contract between

2 the Secretary and an Indian housing authority.

3 SEC. 123. PUBLIC HOUSING EARLY CHILDHOOD DEVELOP4 MENT SERVICES.

5 Section 222(g) of the Housing and Urban-Rural Re6 covery Act of 1983 (12 U.S.C. 1701z–6 note) is amended

7 to read as follows:

8 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated to carry out this section

10 $15,000,000 for fiscal year 1995 and $15,450,000 for fis11 cal year 1996. Any amounts appropriated to carry out this

12 section shall remain available until expended.’’.

13 SEC. 124. INDIAN HOUSING CHILDHOOD DEVELOPMENT

14 SERVICES.

15 (a) FUNDING.—Section 518(a) of the Cranston-Gon16 zalez National Affordable Housing Act (12 U.S.C. 1701z–

17 6 note) is amended by striking the first and second sen18 tences and inserting the following new sentence: ‘‘There

19 are authorized to be appropriated to carry out the dem20 onstration program under this section $5,580,540 for fis21 cal year 1995 and $5,747,956 for fiscal year 1996.’’.
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•HR 3838 SC

1 SEC. 125. PUBLIC HOUSING ONE-STOP PERINATAL SERV2 ICES DEMONSTRATION.

3 Section 521(g) of the Cranston-Gonzalez National

4 Affordable Housing Act (42 U.S.C. 1437t note) is amend5 ed to read as follows:

6 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated for carrying out the

8 demonstration program under this section $214,652 for

9 fiscal year 1995 and $221,092 for fiscal year 1996.’’.

10 Subtitle C—Section 8 Assistance

11 SEC. 141. MOVING TO OPPORTUNITY FOR FAIR HOUSING.

12 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

13 152(e) of the Housing and Community Development Act

14 of 1992 (42 U.S.C. 1437f note) is amended by striking

15 the first sentence and inserting the following new sen16 tence: ‘‘The budget authority available under section 5(c)

17 of the United States Housing Act of 1937 for tenant18 based assistance under section 8 of such Act is authorized

19 to be increased by $176,387,500, on or after October 1,

20 1994, and by $181,679,125, on or after October 1, 1995,

21 to carry out the demonstration under this section.’’.

22 (b) COUNSELING.—The second sentence of section

23 106(a)(3) of the Housing and Urban Development Act of

24 1968 (12 U.S.C. 1701x(a)(3)) is amended to read as fol25 lows: ‘‘Of the amounts appropriated for purposes of this

26 subsection for each of fiscal years 1995 and 1996, up to
29

•HR 3838 SC

1 $500,000 shall be available for use for counseling and

2 other activities in connection with the demonstration pro3 gram under section 152 of the Housing and Community

4 Development Act of 1992.’’.

5 SEC. 142. COMMUNITY INVESTMENT DEMONSTRATION PRO6 GRAM.

7 Section 6(j) of the HUD Demonstration Act of 1993

8 (42 U.S.C. 1437f note) is amended to read as follows:

9 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated to carry out this section

11 $103,000,000 for fiscal year 1995 and $106,090,000 for

12 fiscal year 1996.’’.

13 SEC. 143. RESTATEMENT AND REVISION OF SECTION 8

14 RENTAL ASSISTANCE PROGRAM.

15 (a) IN GENERAL.—Section 8 of the United States

16 Housing Act of 1937 (42 U.S.C. 1437f) is amended to

17 read as follows:

18 ‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME

19 FAMILIES

20 ‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—

21 ‘‘(1) IN GENERAL.—For the purposes of aiding

22 low-income families in obtaining a decent place to

23 live and promoting economically mixed housing, the

24 Secretary may provide assistance payments with re25 spect to existing housing in accordance with the pro26 visions of this section.
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•HR 3838 SC

1 ‘‘(2) ELDERLY HOUSING.—Notwithstanding any

2 other provision of this Act, assistance payments

3 under this section may be provided, in accordance

4 with regulations prescribed by the Secretary, with

5 respect to some or all of the units in any project ap6 proved pursuant to section 202 of the Housing Act

7 of 1959 (as in effect before October 1, 1991).

8 ‘‘(b) ANNUAL CONTRIBUTIONS CONTRACTS FOR

9 RENTAL ASSISTANCE.—

10 ‘‘(1) IN GENERAL.—The Secretary may enter

11 into annual contributions contracts under this sub12 section with public housing agencies to provide rent13 al housing assistance under this section for low-in14 come families. The Secretary shall enter into a sepa15 rate annual contributions contract with each public

16 housing agency to obligate the authority approved

17 each year. Each such annual contributions contract

18 shall bind the Secretary to make such authority, and

19 any amendments increasing such authority, available

20 to the public housing agency for a specified period.

21 ‘‘(2) SECRETARY ACTING AS PHA.—In areas

22 where no public housing agency has been organized

23 or where the Secretary determines that a public

24 housing agency is unable to implement the provi25 sions of this section, the Secretary may enter into
31

•HR 3838 SC

1 such contracts and perform the other functions as2 signed to a public housing agency by this section.

3 ‘‘(3) TREATMENT OF ASSISTANCE FOR SUP4 PORTIVE HOUSING FOR THE DISABLED.—The Sec5 retary may not consider the receipt by a public hous6 ing agency of assistance under section 811(b)(1) of

7 the Cranston-Gonzalez National Affordable Housing

8 Act, or the amount received, in approving assistance

9 under this section for the agency or in determining

10 the amount of such assistance to be provided to the

11 agency.

12 ‘‘(c) ASSISTANCE CONTRACTS.—

13 ‘‘(1) IN GENERAL.—Each public housing agen14 cy that receives amounts under an annual contribu15 tions contract may enter into assistance contracts to

16 make rental assistance payments to owners of exist17 ing dwelling units in accordance with the provisions

18 of this section.

19 ‘‘(2) PHA ACTING AS OWNER.—A public hous20 ing agency may contract to make rental assistance

21 payments under this section to itself (or any agency

22 or instrumentality thereof) as the owner of dwelling

23 units, and the agency shall be subject to the same

24 program requirements as are applied to other own-
32

•HR 3838 SC

1 ers. In such cases, the Secretary may establish ini2 tial rents within applicable limits.

3 ‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)

4 and 6 and any other provisions of this Act that are

5 inconsistent with the provisions of this section shall

6 not apply to assistance contracts entered into pursu7 ant to this section.

8 ‘‘(d) MAXIMUM MONTHLY RENT.—

9 ‘‘(1) IN GENERAL.—Each assistance contract

10 entered into pursuant to this section shall establish

11 the maximum monthly rent (including utilities and

12 all maintenance and management charges) that the

13 owner is entitled to receive for each dwelling unit for

14 which rental assistance payments are to be made

15 under the contract. Except as provided in paragraph

16 (2), the maximum monthly rent shall not exceed by

17 more than 10 percent the fair market rental under

18 subsection (e) for the market area in which the

19 dwelling unit is located. If units assisted under this

20 section are exempt from local rent control while they

21 are so assisted or otherwise, the maximum monthly

22 rent for such units shall be reasonable in comparison

23 with other units in the market area that are exempt

24 from local rent control.
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•HR 3838 SC

1 ‘‘(2) EXCEPTION.—The maximum monthly rent

2 may exceed the fair market rental by more than 10

3 but not more than 20 percent, but only if the Sec4 retary determines that special circumstances warrant

5 such higher maximum rent or that such higher rent

6 is necessary to the implementation of a comprehen7 sive housing affordability strategy under section 105

8 of the Cranston-Gonzalez National Affordable Hous9 ing Act.

10 ‘‘(3) ANNUAL ADJUSTMENTS.—Each assistance

11 contract shall provide for adjustment in the maxi12 mum monthly rents for units covered by the contract

13 not less than annually to reflect changes in the fair

14 market rentals established under subsection (e) for

15 the housing area for similar types and sizes of dwell16 ing units or, if the Secretary determines, on the

17 basis of a reasonable formula.

18 ‘‘(4) ADJUSTMENTS DUE TO EXPENSES.—Each

19 assistance contract shall further provide for the Sec20 retary to make additional adjustments in the maxi21 mum monthly rent for units assisted under the con22 tract to the extent the Secretary determines such ad23 justments are necessary to reflect increases in the

24 actual and necessary expenses of owning and main25 taining the units that have resulted from substantial
34

•HR 3838 SC

1 general increases in real property taxes, utility rates,

2 or similar costs that are not adequately compensated

3 for by the adjustment in the maximum monthly rent

4 authorized by paragraph (3). The Secretary shall

5 make additional adjustments in the maximum

6 monthly rent for units under contract (subject to the

7 availability of appropriations for contract amend8 ments) to the extent the Secretary determines such

9 adjustments are necessary to reflect increases in the

10 actual and necessary expenses of owning and main11 taining the units that have resulted from the expira12 tion of a real property tax exemption.

13 ‘‘(5) ADJUSTMENTS DUE TO CRIMINAL ACTIV14 ITY.—If the Secretary determines that a project as15 sisted under this section is located in a community

16 where criminal activity is generally prevalent and the

17 operating, maintenance, and capital repair expenses

18 for the project have been substantially increased pri19 marily as a result of the prevalence of such activity,

20 the Secretary may (at the discretion of the Secretary

21 and subject to the availability of appropriations for

22 contract amendments for this purpose), on a project23 by-project basis, provide adjustments to the maxi24 mum monthly rents, to a level not exceeding 120

25 percent of the project rents, to cover the costs of
35

•HR 3838 SC

1 maintenance, security, capital repairs, and reserves

2 required for the owner to carry out a strategy ac3 ceptable to the Secretary for addressing the problem

4 of criminal activity. The Secretary may waive the

5 applicability of any rent comparability standard re6 quired under this subsection to implement this para7 graph.

8 ‘‘(6) ADJUSTMENTS DUE TO LEAD-BASED

9 PAINT REDUCTION FOR HOUSING RECEIVING

10 PROJECT-BASED ASSISTANCE.—The Secretary may

11 (at the discretion of the Secretary and subject to the

12 availability of appropriations for contract amend13 ments), on a project-by-project basis for projects re14 ceiving project-based assistance, provide adjustments

15 to the maximum monthly rents to cover the costs of

16 evaluating and reducing lead-based paint hazards, as

17 defined in section 1004 of the Residential Lead18 Based Paint Hazard Reduction Act of 1992.

19 ‘‘(7) LIMITATIONS ON ADJUSTMENTS.—

20 ‘‘(A) GENERAL COMPARABILITY RULE.—

21 Adjustments in the maximum rents under para22 graphs (3) through (6) shall not result in mate23 rial differences between the rents charged for

24 assisted units and unassisted units of similar
36

•HR 3838 SC

1 quality, type, and age in the same market area,

2 as determined by the Secretary.

3 ‘‘(B) COMPARABILITY STUDIES.—

4 ‘‘(i) To carry out subparagraph (A),

5 the Secretary shall issue regulations to

6 provide for conducting comparability stud7 ies for projects where the Secretary has

8 reason to believe that the application of the

9 formula adjustments under paragraph (3)

10 would result in such material differences.

11 The Secretary shall conduct such studies

12 upon the request of any owner of any

13 project, or as the Secretary determines to

14 be appropriate by establishing, to the ex15 tent practicable, a modified annual adjust16 ment factor for such market area, as the

17 Secretary shall designate, that is geo18 graphically smaller than the applicable

19 housing area used for the establishment of

20 the annual adjustment factor under para21 graph (3). The Secretary shall establish

22 such modified annual adjustment factor on

23 the basis of the results of a study con24 ducted by the Secretary of the rents

25 charged, and any change in such rents
37

•HR 3838 SC

1 over the previous year, for assisted units

2 and unassisted units of similar quality,

3 type, and age in the smaller market area.

4 Where the Secretary determines that such

5 modified annual adjustment factor cannot

6 be established or that such factor when ap7 plied to a particular project would result in

8 material differences between the rents

9 charged for assisted units and unassisted

10 units of similar quality, type, and age in

11 the same market area, the Secretary may

12 apply an alternative methodology for con13 ducting comparability studies in order to

14 establish rents that are not materially dif15 ferent from rents charged for comparable

16 unassisted units.

17 ‘‘(ii) If the Secretary or appropriate

18 State agency does not complete and submit

19 to the project owner a comparability study

20 not later than 60 days before the anniver21 sary date of the assistance contract under

22 this section, the automatic annual adjust23 ment factor shall be applied. The Secretary

24 may not reduce the contract rents in effect

25 on or after April 15, 1987, for newly con-
38

•HR 3838 SC

1 structed, substantially rehabilitated, or

2 moderately rehabilitated projects assisted

3 under this section (including projects as4 sisted under this section as in effect prior

5 to November 30, 1983), unless the project

6 has been refinanced in a manner that re7 duces the periodic payments of the owner.

8 Any maximum monthly rent that has been

9 reduced by the Secretary after April 14,

10 1987, and prior to November 7, 1988,

11 shall be restored to the maximum monthly

12 rent in effect on April 15, 1987.

13 ‘‘(iii) For any project which has had

14 its maximum monthly rents reduced after

15 April 14, 1987, the Secretary shall make

16 assistance payments (from amounts re17 served for the original contract) to the

18 owner of such project in an amount equal

19 to the difference between the maximum

20 monthly rents in effect on April 15, 1987,

21 and the reduced maximum monthly rents,

22 multiplied by the number of months that

23 the reduced maximum monthly rents were

24 in effect.

25 ‘‘(e) FAIR MARKET RENTALS.—
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•HR 3838 SC

1 ‘‘(1) IN GENERAL.—The Secretary shall estab2 lish fair market rentals under this subsection peri3 odically, but not less than annually, for existing

4 rental dwelling units suitable for occupancy by low5 income families assisted under this section. The Sec6 retary shall establish the fair market rental by mar7 ket area for various sizes and types of dwelling

8 units.

9 ‘‘(2) EFFECTIVENESS AND ADJUSTMENT.—The

10 Secretary shall publish proposed fair market rentals

11 for each area in the Federal Register with reason12 able time for public comment, and such fair market

13 rentals shall become effective upon the date of publi14 cation in final form in the Federal Register. Each

15 fair market rental in effect under this subsection

16 shall be adjusted to be effective on October 1 of each

17 year to reflect changes, based on the most recent

18 available data trended so the rentals will be current

19 for the year to which they apply, of rents for exist20 ing rental dwelling units, as the case may be, of var21 ious sizes and types in the market area suitable for

22 occupancy by families assisted under this section.

23 ‘‘(3) CERTAIN AREAS.—The Secretary shall es24 tablish separate fair market rentals under this sub25 section for Westchester County in the State of New
40

•HR 3838 SC

1 York. The Secretary shall also establish separate fair

2 market rentals under this paragraph for Monroe

3 County in the Commonwealth of Pennsylvania. In

4 establishing fair market rentals for the remaining

5 portion of the market areas in which Monroe County

6 is located, the Secretary shall establish the fair mar7 ket rentals as if such portion included Monroe

8 County.

9 ‘‘(f) AMOUNT OF MONTHLY ASSISTANCE PAY10 MENT.—

11 ‘‘(1) IN GENERAL.—The amount of the monthly

12 assistance payment under this section with respect

13 to any dwelling unit shall be the difference between

14 the maximum monthly rent that the contract pro15 vides that the owner is to receive for the unit and

16 the rent the family is required to pay under section

17 3(a).

18 ‘‘(2) INCREASES IN ASSISTANCE PAYMENTS.—

19 The Secretary shall take any action necessary, in20 cluding making contracts for assistance payments in

21 amounts exceeding the amounts required upon the

22 initial renting of dwelling units, reserving annual

23 contributions authority for the purpose of amending

24 assistance contracts, or allocating a portion of new

25 authorizations for the purpose of amending assist-
41

•HR 3838 SC

1 ance contracts, to ensure that assistance payments

2 are increased on a timely basis to cover increases in

3 maximum monthly rents or decreases in family in4 comes.

5 ‘‘(3) REVIEWS OF FAMILY INCOMES.—

6 ‘‘(A) IN GENERAL.—Reviews of family in7 comes for purposes of this section shall be made

8 annually and shall be subject to the provisions

9 of section 904(e) of the Stewart B. McKinney

10 Homeless Assistance Amendments Act of 1988.

11 Any other reviews of family incomes under this

12 paragraph may be used only for the purpose of

13 ensuring that a family does not pay as rent for

14 a dwelling unit assisted under this section more

15 than the amount required under section 3(a).

16 ‘‘(B) PROCEDURES.—The Secretary shall

17 establish procedures that are appropriate and

18 necessary to ensure that income data provided

19 to public housing agencies and owners by fami20 lies applying for or receiving assistance under

21 this section is complete and accurate. In estab22 lishing such procedures, the Secretary shall an23 nually select a random sample of families to au24 thorize the Secretary to obtain information on

25 the families for the purpose of income verifica-
42

•HR 3838 SC

1 tion, or to allow the families to provide such in2 formation themselves. Such information may in3 clude data concerning unemployment compensa4 tion and Federal income taxation and data re5 lating to benefits made available under the So6 cial Security Act, the Food Stamp Act of 1977,

7 or title 38, United States Code.

8 ‘‘(C) CONFIDENTIALITY.—Any income in9 formation received pursuant to this paragraph

10 shall remain confidential and shall be used only

11 for the purpose of verifying incomes in order to

12 determine eligibility of families for benefits (and

13 the amount of such benefits, if any) under this

14 section.

15 ‘‘(g) ELIGIBILITY OF UNITS FOR ASSISTANCE.—

16 Each assistance contract shall provide that assistance pay17 ments may be made only with respect to the following

18 dwelling units:

19 ‘‘(1) OCCUPIED UNITS.—A dwelling unit under

20 lease for occupancy by a family determined to be a

21 low-income family at the time it initially occupies the

22 dwelling unit or by a family that qualifies to receive

23 assistance under this section pursuant to section 223

24 or 226 of the Low-Income Housing Preservation and

25 Resident Homeownership Act of 1990.
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•HR 3838 SC

1 ‘‘(2) UNOCCUPIED UNITS.—An unoccupied

2 dwelling unit, but only if—

3 ‘‘(A)(i) a family vacates the dwelling unit

4 before the expiration date of the lease for occu5 pancy, or (ii) a good faith effort is being made

6 to fill the unoccupied unit; and

7 ‘‘(B) the costs of such vacancy are not

8 charged to or paid by the family vacating the

9 dwelling unit.

10 Payments for units referred to in this paragraph

11 may be made only for a period not exceeding 60

12 days, except that such payments may be made, in

13 the case of a newly constructed or substantially re14 habilitated project, after the expiration of such 60-

15 day period in an amount equal to the debt service

16 attributable to such an unoccupied dwelling unit for

17 a period not to exceed one year, if a good faith effort

18 is being made to fill the unit and the unit provides

19 decent, safe, and sanitary housing. No such payment

20 may be made after the expiration of such 60-day pe21 riod if the Secretary determines that the dwelling

22 unit is in a project which provides the owner with

23 revenues exceeding the costs incurred by such owner

24 with respect to such project.
44

•HR 3838 SC

1 ‘‘(h) OTHER PROVISIONS OF ASSISTANCE CON2 TRACTS.—Contracts to make assistance payments entered

3 into by any public housing agency (or by the Secretary)

4 with an owner of existing housing units shall meet the

5 following requirements:

6 ‘‘(1) CONTRACT TERM.—Each assistance con7 tract shall have a term of not less than one month

8 nor more than 180 months. The Secretary shall per9 mit public housing agencies to enter into assistance

10 contracts having terms of less than 12 months to the

11 extent necessary to avoid disruption in assistance to

12 eligible families if the annual contributions contract

13 for the agency under subsection (b) will expire with14 in 1 year.

15 ‘‘(2) PREFERENCES.—Each assistance contract

16 shall provide that, in making assistance available

17 pursuant to the contract—

18 ‘‘(A) for not less than 70 percent of the

19 families who initially receive project-based as20 sistance, and

21 ‘‘(B) for not less than 90 percent of the

22 families who initially receive tenant-based as23 sistance in any 1-year period,

24 preference shall be given to families that (i) occupy

25 substandard housing (including families that are
45

•HR 3838 SC

1 homeless or living in a shelter for homeless families),

2 (ii) are paying more than 50 percent of family in3 come for rent, (iii) are involuntarily displaced (in4 cluding displacement because of disposition of a mul5 tifamily housing project under section 203 of the

6 Housing and Community Development Amendments

7 of 1978) at the time they are seeking assistance

8 under this section, or (iv) are residing in public

9 housing.

10 ‘‘(3) SECONDARY PREFERENCES.—Each assist11 ance contract shall provide that, for any assistance

12 remaining in any 1-year period after assistance is

13 made available pursuant to paragraph (2), pref14 erence for such assistance shall be given to families

15 who qualify under a system of local preferences es16 tablished by the public housing agency in writing

17 and after public hearing to respond to local housing

18 needs and priorities, which may include—

19 ‘‘(A) assisting very low-income families

20 who either reside in transitional housing as21 sisted under title IV of the Stewart B. McKin22 ney Homeless Assistance Act or participate in

23 a program designed to provide public assistance

24 recipients with greater access to employment

25 and educational opportunities;
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•HR 3838 SC

1 ‘‘(B) assisting families in accordance with

2 subsection (q)(1)(B);

3 ‘‘(C) assisting families identified by local

4 public agencies involved in providing for the

5 welfare of children as having a lack of adequate

6 housing that is a primary factor in the immi7 nent placement of a child in foster care, or in

8 preventing the discharge of a child from foster

9 care and reunification with his or her family;

10 ‘‘(D) assisting youth, upon discharge from

11 foster care, in cases in which return to the fam12 ily or extended family or adoption is not avail13 able;

14 ‘‘(E) assisting veterans who are eligible

15 and have applied for assistance, will use the as16 sistance for a dwelling unit designed for the

17 handicapped, and, upon discharge or eligibility

18 for discharge from a hospital or nursing home,

19 have physical disability which, because of the

20 configuration of their homes, prevents them

21 from access to or use of their homes; and

22 ‘‘(F) achieving other objectives of national

23 housing policy as established by law.

24 ‘‘(4) TENANT SELECTION.—Each assistance

25 contract shall provide that the selection of tenants
47

•HR 3838 SC

1 for such dwelling units shall be the function of the

2 owner, subject to any provisions of the annual con3 tributions contract between the Secretary and the

4 agency. The owner shall use tenant selection criteria,

5 which shall provide as follows:

6 ‘‘(A) PROHIBITION OF PERSONS ENGAGED

7 IN DRUG ACTIVITY.—The criteria shall prohibit

8 any individual or family evicted from housing

9 assisted under this Act by reason of drug-relat10 ed criminal activity from having a preference

11 under any provision of this paragraph for 3

12 years unless the evicted tenant successfully

13 completes a rehabilitation program approved by

14 the agency or owner. The agency or the owner

15 may waive the application of the preceding sen16 tence under standards established by the Sec17 retary, which shall provide for such waiver for

18 any member of a family of an individual prohib19 ited from tenancy under this subparagraph who

20 the agency or owner determines clearly did not

21 participate in and had no knowledge of such

22 criminal activity or when circumstances leading

23 to eviction no longer exist.

24 ‘‘(B) OTHER REQUIREMENTS FOR

25 PROJECT-BASED ASSISTANCE.—With respect
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•HR 3838 SC

1 only to project-based assistance, the criteria

2 shall—

3 ‘‘(i) be consistent with the purpose of

4 improving housing opportunities for very

5 low-income families;

6 ‘‘(ii) be reasonably related to program

7 eligibility and an applicant’s ability to per8 form the obligations of the assisted lease;

9 ‘‘(iii) be established in writing; and

10 ‘‘(iv) provide for the owner to prompt11 ly provide to any rejected applicant (I)

12 written notice of the grounds for the rejec13 tion, and (II) an opportunity to meet with

14 the decision maker to evaluate the validity

15 of the reasons for rejection and rectify any

16 erroneous decisions.

17 ‘‘(5) LEASE PROVISIONS.—Each assistance con18 tract shall provide that the lease between the tenant

19 of any unit and the owner shall be for at least one

20 year or the term of such assistance contract, which21 ever is shorter, and that the lease shall contain other

22 terms and conditions specified by the Secretary, in23 cluding provisions meeting the requirements of para24 graphs (6), (7), and (8).
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•HR 3838 SC

1 ‘‘(6) GENERAL GROUNDS FOR TERMINATION OF

2 TENANCY.—Each assistance contract shall provide

3 that the owner shall not terminate the tenancy of

4 the tenant of any unit except for serious or repeated

5 violation of the terms and conditions of the lease, for

6 violation of applicable Federal, State, or local law, or

7 for other good cause.

8 ‘‘(7) TERMINATION FOR CRIMINAL ACTIVITY.—

9 Each assistance contract shall provide that any

10 criminal activity that threatens the health, safety, or

11 right to peaceful enjoyment of the premises by other

12 tenants, any criminal activity that threatens the

13 health, safety, or right to peaceful enjoyment of

14 their residences by persons residing in the immediate

15 vicinity of the premises, or any drug-related criminal

16 activity on or near such premises, engaged in by a

17 tenant of any unit, any member of the tenant’s

18 household, or any guest or other person under the

19 tenant’s control, shall be cause for termination of

20 tenancy.

21 ‘‘(8) NOTICE OF TERMINATION OF TENANCY.—

22 Each assistance contract shall provide that before

23 terminating the tenancy of any tenant, the owner

24 shall provide written notice to the tenant specifying

25 the legal and factual grounds for such action. Such
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•HR 3838 SC

1 notice shall be provided to the tenant not less than

2 30 days before termination, except that in cases of

3 termination for nonpayment of rent such notice shall

4 be provided not less than 14 days before termi5 nation.

6 ‘‘(9) MAINTENANCE AND REPLACEMENT.—

7 Each assistance contract shall provide that mainte8 nance and replacement (including redecoration) shall

9 be performed in accordance with the standard prac10 tice for the building concerned as established by the

11 owner and agreed to by the agency (or the Sec12 retary). With the approval of the Secretary, the pub13 lic housing agency administering a contract under

14 this section with respect to existing housing units

15 may exercise all management and maintenance re16 sponsibilities with respect to the units pursuant to a

17 contract between such agency and the owner of such

18 units. Each assistance contract shall also provide

19 that, if the agency (or the Secretary) determines

20 that a unit assisted under this section fails to com21 ply in any material respect with standards for hous22 ing quality for units so assisted, the agency (or the

23 Secretary) may withhold some or all of the assist24 ance amounts under this section with respect to such

25 unit and promptly—
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•HR 3838 SC

1 ‘‘(A) use such amounts to make necessary

2 repairs or contract to have such repairs made;

3 ‘‘(B) release any withheld amounts to the

4 owner after repairs are made by the owner, in

5 an amount not exceeding the cost of the re6 pairs;

7 ‘‘(C) release any withheld amounts to the

8 applicable State or local housing agency after

9 repairs are made by such agency, in an amount

10 not exceeding the cost of the repairs; or

11 ‘‘(D) upon the request of the tenant, re12 lease any withheld amounts to—

13 ‘‘(i) the tenant to reimburse the ten14 ant for the reasonable cost of any nec15 essary repairs performed or paid for by the

16 tenant; or

17 ‘‘(ii) such person secured by the ten18 ant and approved by the agency (or the

19 Secretary) to make such necessary repairs.

20 If an agency (or the Secretary) withholds any assist21 ance amounts pursuant to the preceding sentence,

22 the agency (or the Secretary) may not terminate the

23 assistance contract unless and until the tenant has

24 relocated to decent, safe, and sanitary housing.
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•HR 3838 SC

1 ‘‘(10) STANDARDS AND OBLIGATIONS OF RESI2 DENCY IN HOUSING RECEIVING PROJECT-BASED AS3 SISTANCE.—Each assistance contract for project4 based assistance under subsection (i) shall provide

5 that the owner shall ensure and maintain compliance

6 with subtitle C of title VI of the Housing and Com7 munity Development Act of 1992 and any regula8 tions issued under such subtitle.

9 ‘‘(11) OTHER.—Each assistance contract shall

10 provide that the agency and the owner shall carry

11 out such other appropriate terms and conditions as

12 may be mutually agreed to by the agency and owner.

13 ‘‘(i) PROJECT-BASED ASSISTANCE.—

14 ‘‘(1) AUTHORITY.—Pursuant to an annual con15 tributions contract entered into under subsection

16 (b), a public housing agency may enter into a assist17 ance contract providing for assistance payments

18 under this section that are attached to a structure.

19 ‘‘(2) REQUIREMENTS.—Any public housing

20 agency may approve project-based assistance under

21 this subsection with respect to any or all of the as22 sistance provided by the public housing agency if—

23 ‘‘(A) the owner agrees to rehabilitate the

24 structure other than with assistance under this
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•HR 3838 SC

1 Act and the owner otherwise complies with the

2 requirements of this section; and

3 ‘‘(B) in the case of any newly constructed

4 structure, the owner or prospective owner

5 agrees to construct the structure other than

6 with assistance under this Act and otherwise

7 complies with the requirements of this section.

8 ‘‘(3) LONG-TERM AFFORDABILITY.—

9 ‘‘(A) IN GENERAL.—In the case of an as10 sistance contract for project-based assistance

11 under this subsection, a public housing agency

12 shall enter into a contract with an owner, con13 tingent upon the future availability of appro14 priations for the purpose of renewing expiring

15 contracts for assistance payments as provided

16 in appropriations Acts, to extend the term of

17 the underlying assistance contract for such pe18 riod or periods as the Secretary determines to

19 be appropriate to achieve long-term afford20 ability of the housing. The contract shall obli21 gate the owner to have the extensions of the as22 sistance contract accepted by the owner and the

23 owner’s successors in interest.

24 ‘‘(B) TERM OF ASSISTANCE FOR LOW-IN25 COME HOUSING PRESERVATION.—The contract
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•HR 3838 SC

1 for assistance may, at the option of the public

2 housing agency, have an initial term not exceed3 ing 15 years for any assistance that is at4 tached—

5 ‘‘(i) to projects assisted under a State

6 program that permits the owner of the

7 projects to prepay a State assisted or sub8 sidized mortgage on the structure; and

9 ‘‘(ii) for the purpose of providing in10 centives to owners to preserve such

11 projects for occupancy by low- and mod12 erate-income families (for the period that

13 assistance under this subparagraph is

14 available) and assisting low-income tenants

15 to afford any increases in rent that may be

16 required to induce the owner to maintain

17 occupancy in the project by low- and mod18 erate-income tenants.

19 Any assistance provided to low-income tenants

20 in the manner described in this subparagraph

21 shall not be considered for purposes of the limi22 tation under subsection (h)(2) regarding the

23 percentage of families that may receive assist24 ance under this section who do not qualify for

25 preferences under such subsection.
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•HR 3838 SC

1 ‘‘(4) SERVICE COORDINATORS.—In determining

2 the amount of assistance provided under an assist3 ance contract for project-based assistance under this

4 paragraph or a contract for assistance for housing

5 constructed or substantially rehabilitated pursuant

6 to assistance provided under section 8(b)(2) of this

7 Act (as such section existed before October 1, 1983),

8 the Secretary may, to the extent amounts are pro9 vided under section 5(c), increase the amount annu10 ally provided with respect to such project to provide

11 for the costs of employing or otherwise retaining the

12 services of one or more service coordinators under

13 section 671 of the Housing and Community Devel14 opment Act of 1992 to coordinate the provision of

15 any services within the project for residents of the

16 project who are elderly or disabled families.

17 ‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—

18 ‘‘(1) NOTICE BY OWNER.—Any owner terminat19 ing any assistance contract shall provide written no20 tice to the Secretary and the tenants involved of the

21 proposed termination not less than one year before

22 the termination of the contract (but not less than 90

23 days in the case of tenant-based assistance). The no24 tice shall specify the date of the termination and the

25 reasons for the termination, with detail sufficient to
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•HR 3838 SC

1 enable the Secretary to evaluate whether the termi2 nation is lawful and whether additional actions can

3 be taken by the Secretary to avoid the termination.

4 The notice shall include a statement that the owner

5 and the Secretary may agree to a renewal of the

6 contract, thus avoiding the termination.

7 ‘‘(2) REVIEW OF NOTICE BY SECRETARY.—The

8 Secretary shall review the notice, shall consider

9 whether additional actions can be taken by the Sec10 retary to avoid the termination, and shall ensure a

11 proper adjustment of the contract rents for the

12 project in compliance with the requirements of sub13 section (d) and paragraph (3) of this subsection.

14 The Secretary shall issue a written finding of the le15 gality of the termination and the reasons for the ter16 mination, including the actions considered or taken

17 to avoid the termination. Within 30 days after issu18 ance of the findings, the owner shall provide written

19 notice to each tenant of the decision, together with

20 the written findings of the Secretary regarding the

21 termination. In the case of project-based assistance,

22 the Secretary and the owner shall complete the ac23 tions under this paragraph not later than the expira24 tion of the 9-month period beginning upon the date
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•HR 3838 SC

1 that the owner provides written notice of termination

2 under paragraph (1).

3 ‘‘(3) ADJUSTMENT OF CONTRACT RENT.—If an

4 owner provides notice of proposed termination under

5 paragraph (1) and the contract rent is less than the

6 maximum monthly rent for units assisted under this

7 section, the Secretary shall adjust the contract rent

8 based on the maximum monthly rent for units as9 sisted under this section and the value of the low10 income housing.

11 ‘‘(4) NOTICE OF RENT INCREASES.—Each as12 sistance contract for project-based assistance under

13 this section shall require the owner to notify tenants

14 at least 90 days before the expiration of the contract

15 of any rent increase which may occur as a result of

16 the expiration of such contract.

17 ‘‘(5) DEFINITION OF TERMINATION.—For pur18 poses of this subsection, the term ‘termination’

19 means the expiration of the assistance contract or

20 the refusal of the owner to renew an assistance con21 tract, which shall include the termination of tenancy

22 by an owner for business reasons.

23 ‘‘(k) RENTAL ASSISTANCE FOR MANUFACTURED

24 HOUSING.—
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•HR 3838 SC

1 ‘‘(1) IN GENERAL.—The Secretary may enter

2 into contracts to make assistance payments under

3 this subsection to assist low-income families by mak4 ing rental assistance payments on behalf of any such

5 family that utilizes a manufactured home as its prin6 cipal place of residence. In carrying out this sub7 section, the Secretary may—

8 ‘‘(A) enter into annual contributions con9 tracts with public housing agencies pursuant to

10 which such agencies may enter into assistance

11 contracts to make such assistance payments to

12 the owners of such real property; or

13 ‘‘(B) enter into such contracts directly

14 with the owners of such real property.

15 ‘‘(2) USE OF ASSISTANCE.—Rental assistance

16 payments under this subsection may be made with

17 respect to the rental of the real property on which

18 is located a manufactured home that is owned by a

19 low-income family or with respect to the rental by

20 such a family of a manufactured home and the real

21 property on which it is located.

22 ‘‘(3) ASSISTANCE FOR RENTAL OF MANUFAC23 TURED HOME SITE.—

24 ‘‘(A) MAXIMUM MONTHLY RENT.—A con25 tract entered into pursuant to this paragraph
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•HR 3838 SC

1 shall establish the maximum monthly rent (in2 cluding maintenance and management charges)

3 that the owner is entitled to receive for the

4 space on which a manufactured home is located

5 and with respect to which assistance payments

6 are to be made. The maximum monthly rent

7 shall not exceed by more than 10 percent the

8 fair market rental established by the Secretary

9 periodically (but not less than annually) with

10 respect to the market area for the rental of real

11 property suitable for occupancy by families as12 sisted under this paragraph.

13 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

14 PAYMENT.—The amount of any monthly assist15 ance payment with respect to any family that

16 rents real property that is assisted under this

17 paragraph, and on which is located a manufac18 tured home that is owned by such family shall

19 be the difference between the rent the family is

20 required to pay under section 3(a) and the sum

21 of—

22 ‘‘(i) the monthly payment made by

23 such family to amortize the cost of pur24 chasing the manufactured home;
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1 ‘‘(ii) the monthly utility payments

2 made by such family, subject to reasonable

3 limitations prescribed by the Secretary;

4 and

5 ‘‘(iii) the maximum monthly rent per6 mitted with respect to the real property

7 which is rented by such family for the pur8 pose of locating its manufactured home;

9 except that in no case may such assistance ex10 ceed the total amount of such maximum month11 ly rent.

12 ‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC13 TURED HOME AND SITE.—

14 ‘‘(A) MAXIMUM MONTHLY RENT.—Con15 tracts entered into pursuant to this paragraph

16 shall establish the maximum monthly rent per17 mitted with respect to the manufactured home

18 and the real property on which it is located and

19 with respect to which assistance payments are

20 to be made. The maximum monthly rent shall

21 not exceed by more than 10 percent the fair

22 market rental established by the Secretary peri23 odically (but not less than annually) with re24 spect to the market area for the rental of a

25 manufactured home and the real property on
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•HR 3838 SC

1 which it is located suitable for occupancy by

2 families assisted under this paragraph; except

3 that the maximum monthly rent may exceed the

4 fair market rental by more than 10 but not

5 more than 20 percent if the Secretary deter6 mines that special circumstances warrant such

7 higher maximum rent.

8 ‘‘(B) AMOUNT OF MONTHLY ASSISTANCE

9 PAYMENT.—The amount of any monthly assist10 ance payment with respect to any family that

11 rents a manufactured home and the real prop12 erty on which it is located and that is assisted

13 under this paragraph shall be the difference be14 tween the rent the family is required to pay

15 under section 3(a) and the sum of—

16 ‘‘(i) the monthly utility payments

17 made by such family, subject to reasonable

18 limitations prescribed by the Secretary;

19 and

20 ‘‘(ii) the maximum monthly rent per21 mitted with respect to the manufactured

22 home and real property on which it is lo23 cated.

24 ‘‘(5) ADJUSTMENT OF MAXIMUM MONTHLY

25 RENTS.—The provisions of paragraphs (3) through
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1 (7) of subsection (d) shall apply to the adjustments

2 of maximum monthly rents under this subsection.

3 ‘‘(6) CONTRACT TERM.—Each contract entered

4 into under the subsection shall be for a term of not

5 less than one month and not more than 180 months;

6 except that in any case in which the manufactured

7 home park is substantially rehabilitated or newly

8 constructed, such term may not be less than 240

9 months, nor more than the maximum term for a

10 manufactured home loan permitted under section

11 2(b) of the National Housing Act.

12 ‘‘(7) APPLICABILITY.—The Secretary may carry

13 out this subsection without regard to whether the

14 manufactured home park is existing, substantially

15 rehabilitated, or newly constructed.

16 ‘‘(8) LIMITATION ON SUBSTANTIALLY REHA17 BILITATED AND NEWLY CONSTRUCTED MANUFAC18 TURED HOME PARKS.—In the case of any substan19 tially rehabilitated or newly constructed manufac20 tured home park containing spaces with respect to

21 which assistance is made under this subsection, the

22 principal amount of the mortgage attributable to the

23 rental spaces within the park may not exceed an

24 amount established by the Secretary which is equal

25 to or less than the limitation for manufactured home
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1 parks described in section 207(c)(3) of the National

2 Housing Act, and the Secretary may increase such

3 limitation in high cost areas in the manner described

4 in such section.

5 ‘‘(9) OTHER REQUIREMENTS.—The Secretary

6 may prescribe other terms and conditions necessary

7 for the purpose of carrying out this subsection and

8 that are consistent with the purposes of this sub9 section.

10 ‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—

11 ‘‘(1) AUTHORITY.—In making assistance avail12 able under this section and assistance under section

13 441 and part V of subtitle F of title IV of the Stew14 art B. McKinney Homeless Assistance Act, the Sec15 retary may provide assistance with respect to resi16 dential properties in which some or all of the dwell17 ing units do not contain bathroom or kitchen facili18 ties, if—

19 ‘‘(A) the property is located in an area in

20 which there is a significant demand for such

21 units, as determined by the Secretary;

22 ‘‘(B) the unit of general local government

23 in which the property is located and the local

24 public housing agency approve of such units

25 being utilized for such purpose; and
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•HR 3838 SC

1 ‘‘(C) the unit of general local government

2 in which the property is located and the local

3 public housing agency certify to the Secretary

4 that the property complies with local health and

5 safety standards.

6 ‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE

7 FOR SINGLE PERSONS.—The Secretary may waive,

8 in appropriate cases, the limitation and preference in

9 section 3(b)(3)(A) with respect to the assistance

10 made available under this subsection.

11 ‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI12 LIES.—

13 ‘‘(1) SHARED HOUSING.—To assist elderly fam14 ilies and disabled families (as defined in section

15 3(b)) who elect to live in a shared housing arrange16 ment in which they benefit as a result of sharing the

17 facilities of a dwelling with others in a manner that

18 effectively and efficiently meets their housing needs

19 and thereby reduces their costs of housing, the Sec20 retary shall permit assistance provided under this

21 section to be used by such families in such arrange22 ments. In carrying out this subsection, the Secretary

23 shall issue minimum habitability standards for the

24 purpose of ensuring decent, safe, and sanitary hous-
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1 ing for such families while taking into account the

2 special circumstances of shared housing.

3 ‘‘(2) PRIORITY FOR NONELDERLY DISABLED

4 FAMILIES.—In allocating assistance under this sec5 tion, a public housing agency that serves more than

6 one unit of general local government may, at the dis7 cretion of the agency, give priority to disabled fami8 lies that are not elderly families.

9 ‘‘(3) AUTHORITY TO PROVIDE PREFERENCES

10 FOR THE ELDERLY AND RESERVE UNITS FOR THE

11 DISABLED.—Notwithstanding subsection (h)(2) or

12 (3), an owner of a covered section 8 housing project

13 (as such term is defined in section 659 of the Hous14 ing and Community Development Act of 1992) may

15 give preference for occupancy of dwelling units in

16 the project, and reserve units for occupancy, in ac17 cordance with subtitle D of title VI of the Housing

18 and Community Development Act of 1992.

19 ‘‘(n) ADMINISTRATIVE FEES.—

20 ‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL

21 PROGRAM.—The Secretary shall establish a fee for

22 the costs incurred by a public housing agency in ad23 ministering the program for rental assistance under

24 this section, which shall be, together with other fees

25 authorized under this subsection, included in any
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1 amounts provided to the public housing agency

2 under the annual contributions contract for the

3 agency. The amount of the fee for each month for

4 which a dwelling unit is covered by an assistance

5 contract shall be 8.2 percent of the fair market rent6 al established under subsection (e) for a 2-bedroom

7 existing rental dwelling unit in the market area of

8 the public housing agency. The Secretary may in9 crease the fee if necessary to reflect the higher costs

10 of administering small programs and programs oper11 ating over large geographic areas.

12 ‘‘(2) OTHER FEES.—The Secretary shall also

13 establish reasonable fees (as determined by the Sec14 retary) for—

15 ‘‘(A) the costs of preliminary expenses that

16 a public housing agency documents it has in17 curred in connection with new allocations of as18 sistance under the program for rental assist19 ance under this section, which shall not exceed

20 $275 per unit assisted;

21 ‘‘(B) the costs incurred in assisting fami22 lies who experience difficulty (as determined by

23 the Secretary) in obtaining appropriate housing

24 under the program;
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•HR 3838 SC

1 ‘‘(C) the costs incurred in administering

2 the provision of rental assistance under this

3 section through the self-sufficiency program

4 under section 23; and

5 ‘‘(D) extraordinary costs approved by the

6 Secretary.

7 ‘‘(3) AUTHORITY TO INCLUDE COSTS OF SERV8 ICE COORDINATORS IN FEES.—

9 ‘‘(A) IN GENERAL.—Fees under this sub10 section may be used for the costs of employing

11 or otherwise retaining the services of one or

12 more service coordinators under section 671 of

13 the Housing and Community Development Act

14 of 1992 to coordinate the provision of support15 ive services for elderly families and disabled

16 families on whose behalf tenant-based assist17 ance is provided under this section or section

18 811(b)(1). Such service coordinators shall have

19 the same responsibilities with respect to such

20 families as service coordinators of covered fed21 erally assisted housing projects have under sec22 tion 671 of such Act with respect to residents

23 of such projects.

24 ‘‘(B) REQUIREMENT.—To the extent

25 amounts are provided in appropriation Acts
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1 under section 5(c) for use under this para2 graph, the Secretary shall increase fees under

3 this subsection to provide for the costs of such

4 service coordinators for public housing agencies.

5 ‘‘(4) BUDGET COMPLIANCE.—The Secretary

6 may establish or increase a fee in accordance with

7 this subsection only to such extent or in such

8 amounts as are provided in appropriation Acts.

9 ‘‘(5) FEES FOR 1995 AND 1996.—Notwithstand10 ing any other provision of this subsection, the fee for

11 the costs incurred by a public housing agency in ad12 ministering the program for rental assistance under

13 this section during fiscal years 1995 and 1996 shall

14 be equal to the fee determined for fiscal year 1994

15 under section 11(a) of the HUD Demonstration Act

16 of 1993.

17 ‘‘(o) PORTABILITY OF ASSISTANCE.—

18 ‘‘(1) AUTHORITY.—Except as provided in para19 graph (3), any family on behalf of whom is provided

20 tenant-based rental assistance under this section and

21 who moves to an eligible dwelling unit located within

22 the same State, or the same or a contiguous metro23 politan statistical area, as the metropolitan statis24 tical area within which is located the area of juris25 diction of the public housing agency approving the
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•HR 3838 SC

1 assistance for the family, may use such assistance to

2 rent such eligible dwelling unit.

3 ‘‘(2) ADMINISTRATION.—The public housing

4 agency having authority with respect to the dwelling

5 unit to which a family moves under this subsection

6 shall have the responsibility of carrying out the pro7 visions of this section with respect to the family. If

8 no public housing agency has authority with respect

9 to the dwelling unit to which a family moves under

10 this subsection, the public housing agency approving

11 the assistance shall have such responsibility.

12 ‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA

13 RESIDENCY.—

14 ‘‘(A) AUTHORITY.—At the discretion of a

15 public housing agency and to the extent pro16 vided in subparagraph (B), the agency may pro17 vide that a family may use tenant-based rental

18 assistance under this section to rent an eligible

19 dwelling unit that is not located within the area

20 of jurisdiction of the agency approving the as21 sistance only if, before such use, the family has

22 rented and occupied an eligible dwelling unit

23 within such jurisdiction for not less than 12

24 consecutive months using assistance provided

25 by such agency.
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•HR 3838 SC

1 ‘‘(B) LIMITATION.—If a public housing

2 agency elects to restrict the use of tenant-based

3 rental assistance pursuant to subparagraph (A)

4 and provides such assistance on behalf of more

5 than 300 families, the agency may not restrict

6 the use of such assistance with respect to as7 sistance provided on behalf of 10 percent of the

8 number of families receiving such assistance

9 that exceeds 300.

10 ‘‘(4) PROVISION OF RENTAL ASSISTANCE FOR

11 PORTABILITY PURPOSES.—

12 ‘‘(A) AMOUNT.—To the extent budget au13 thority for use under this paragraph is made

14 available in appropriation Acts, the Secretary

15 shall provide rental assistance under this sec16 tion in accordance with this paragraph.

17 ‘‘(B) USE.—Amounts provided for use

18 under this paragraph shall be used only to pro19 vide a public housing agency with additional

20 amounts (as determined under subparagraph

21 (D)) to provide assistance for families on behalf

22 of whom assistance is provided under this sec23 tion by another public housing agency and who

24 move into an eligible dwelling unit located with-
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1 in the area of jurisdiction of the agency to re2 ceive assistance under this paragraph.

3 ‘‘(C) REQUIREMENT.—Amounts provided

4 for use under this paragraph may be made

5 available to a public housing agency only if the

6 agency has provided assistance pursuant to the

7 first sentence of paragraph (2) on behalf of

8 families who have moved into eligible dwelling

9 units located within the area of jurisdiction of

10 the agency in an amount not less than the less11 er of (i) 5 percent of the total amount received

12 by the agency for assistance under this section

13 for the fiscal year, or (ii) the amount necessary

14 to assist 25 percent of average annual number

15 of families previously assisted by the agency

16 who relinquish such assistance in a year (based

17 on the preceding 3 calendar years).

18 ‘‘(p) PROHIBITION OF DISCRIMINATION.—

19 ‘‘(1) BASED ON RESIDENCY IN PUBLIC HOUS20 ING.—In selecting families for the provision of as21 sistance under this section, a public housing agency

22 may not exclude or penalize a family solely because

23 the family resides in a public housing project.

24 ‘‘(2) BASED ON RECEIPT OF ASSISTANCE.—An

25 owner who has entered into an assistance contract
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•HR 3838 SC

1 under this section on behalf of any tenant in a mul2 tifamily housing project shall not refuse to lease any

3 available dwelling unit in any multifamily housing

4 project of such owner that rents for an amount not

5 greater than the fair market rental for a comparable

6 unit (as determined by the Secretary under sub7 section (e)) to a family who has been approved by

8 a public housing agency for rental assistance under

9 this section and is in possession of evidence of such

10 approval, a proximate cause of which is the status

11 of such prospective tenant as such an assisted fam12 ily, and to enter into an assistance contract respect13 ing such unit.

14 ‘‘(3) DEFINITION.—For purposes of this sub15 section, the term ‘multifamily housing project’

16 means a residential building containing more than 4

17 dwelling units.

18 ‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—

19 ‘‘(1) ASSISTANCE FOR RESIDENTS OF REHA20 BILITATED PROJECTS.—In the case of low-income

21 families living in rental projects rehabilitated under

22 section 17 of this Act or section 533 of the Housing

23 Act of 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

6 under this section may be provided for families

7 who would have to pay more than 30 percent of

8 their adjusted income for rent after rehabilita9 tion whether they choose to remain in, or to

10 move 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

14 available to address the physical or economic

15 displacement, or potential economic displace16 ment, of existing tenants pursuant to subpara17 graphs (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

23 projects (i) subject to mortgages that are in24 sured under the National Housing Act or mort25 gages that have been assigned to the Secretary,
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1 (ii) that were held by the Secretary and have

2 been sold, and (iii) that were assisted under

3 section 202 of the 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

8 project is subsidized or unsubsidized.

9 ‘‘(C) EXTENSION OF CONTRACT.—The

10 Secretary shall extend any expiring contract en11 tered into under this section for loan manage12 ment assistance or execute a new contract for

13 project-based loan management assistance, if

14 the owner agrees to continue providing housing

15 for low-income families during the term of the

16 contract.

17 ‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—

18 ‘‘(A) IN GENERAL.—The Secretary may

19 provide assistance under this section to be used

20 only in connection with tenant-based assistance

21 under this section on behalf of any family (i)

22 who is otherwise eligible for such assistance,

23 and (ii) who the public child welfare agency for

24 the jurisdiction has certified is a family for

25 whom the lack of adequate housing is a primary
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1 factor in the imminent placement of the fami2 ly’s child or children in out-of-home care or the

3 delayed discharge of a child or children to the

4 family from out-of-home care.

5 ‘‘(B) ALLOCATION.—Any amounts made

6 available under this paragraph shall be allo7 cated by the Secretary through a national com8 petition among applicants based on dem9 onstrated need for assistance under this para10 graph. To be considered for assistance, an ap11 plicant shall submit to the Secretary a written

12 proposal containing a report from the public

13 child welfare agency serving the jurisdiction of

14 the applicant that describes how a lack of ade15 quate housing in the jurisdiction is resulting in

16 the initial or prolonged separation of children

17 from their families, and how the applicant will

18 coordinate with the public child welfare agency

19 to identify eligible families and provide the fam20 ilies with assistance under this paragraph.

21 ‘‘(D) DEFINITIONS.—For purposes of this

22 paragraph:

23 ‘‘(i) APPLICANT.—The term ‘appli24 cant’ means a public housing agency.
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1 ‘‘(ii) PUBLIC CHILD WELFARE AGEN2 CY.—The term ‘public child welfare agen3 cy’ means the public agency responsible

4 under applicable State law for determining

5 that a child is at imminent risk of place6 ment in out-of-home care or that a child in

7 out-of-home care under the supervision of

8 the public agency may be returned to his

9 or her family.

10 ‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—Not later

11 than 30 days after the beginning of each fiscal year, the

12 Secretary shall publish in the Federal Register a plan for

13 reducing, to the extent feasible, year-to-year fluctuations

14 in the levels of budget authority that will be required over

15 the succeeding 5-year period to renew expiring assistance

16 contracts entered into under this section after the enact17 ment of the Housing and Community Development Act

18 of 1974. To the extent necessary to carry out such plan

19 and to the extent approved in appropriations Acts, the

20 Secretary is authorized to enter into annual contributions

21 contracts with terms of less than 60 months.

22 ‘‘(s) GENERAL PROVISIONS.—

23 ‘‘(1) PROHIBITION OF HIGH-RISE PROJECTS

24 FOR FAMILIES WITH CHILDREN.—Notwithstanding

25 any other provision of this section, after the date of
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1 enactment of the Housing and Community Develop2 ment Act of 1977, the Secretary shall prohibit high3 rise elevator projects for families with children un4 less the Secretary determines that there is no prac5 tical alternative.

6 ‘‘(2) PLEDGING ASSISTANCE CONTRACTS AS SE7 CURITY.—An owner may pledge, or offer as security

8 for any loan or obligation, an assistance contract en9 tered into pursuant to this section, but only if such

10 security is in connection with a project constructed

11 or rehabilitated pursuant to authority under this

12 section and the terms of the financing or any refi13 nancing have been approved by the Secretary.

14 ‘‘(3) ASSISTANCE IN FINDING UNITS.—Each

15 public housing agency that provides rental housing

16 assistance under this section on behalf of low-income

17 families shall make available, to such families, coun18 seling and assistance regarding housing opportuni19 ties in the area of jurisdiction of the agency, includ20 ing assistance in obtaining new rental residences.

21 ‘‘(t) HOMEOWNERSHIP OPTION.—

22 ‘‘(1) USE OF ASSISTANCE FOR HOMEOWNER23 SHIP.—A family receiving tenant-based assistance

24 under this section may receive assistance for occu-
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1 pancy of a dwelling owned by one or more members

2 of the family if the family—

3 ‘‘(A) is a first-time homeowner;

4 ‘‘(B)(i) participates in the family self-suffi5 ciency program under section 23 of the public

6 housing agency providing the assistance; or

7 ‘‘(ii) demonstrates that the family has in8 come from employment or other sources (other

9 than public assistance), as determined in ac10 cordance with requirements of the Secretary,

11 that is not less than twice the payment stand12 ard established by the public housing agency

13 (or such other amount as may be established by

14 the Secretary);

15 ‘‘(C) except as provided by the Secretary,

16 demonstrates at the time the family initially re17 ceives tenant-based assistance under this sub18 section that one or more adult members of the

19 family have achieved employment for the period

20 as the Secretary shall require;

21 ‘‘(D) participates in a homeownership and

22 housing counseling program provided by the

23 agency; and

24 ‘‘(E) meets any other initial or continuing

25 requirements established by the public housing
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1 agency in accordance with requirements estab2 lished by the Secretary.

3 ‘‘(2) MONTHLY ASSISTANCE PAYMENT.—

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

5 other provisions of this section governing deter6 mination of the amount of assistance payments

7 under this section on behalf of a family, the

8 monthly assistance payment for any family as9 sisted under this subsection shall be the amount

10 by which the fair market rental for the area es11 tablished under subsection (e)(1) exceeds 30

12 percent of the family’s monthly adjusted in13 come; except that the monthly assistance pay14 ment shall not exceed the amount by which the

15 monthly homeownership expenses, as deter16 mined in accordance with requirements estab17 lished by the Secretary, exceeds 10 percent of

18 the family’s monthly income.

19 ‘‘(B) EXCLUSION OF EQUITY FROM IN20 COME.—For purposes of determining the

21 monthly assistance payment for a family, the

22 Secretary shall not include in family income an

23 amount imputed from the equity of the family

24 in a dwelling occupied by the family with assist25 ance under this subsection.
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1 ‘‘(3) RECAPTURE OF CERTAIN AMOUNTS.—

2 Upon sale of the dwelling by the family, the Sec3 retary shall recapture from any net proceeds the

4 amount of additional assistance (as determined in

5 accordance with requirements established by the

6 Secretary) paid to or on behalf of the eligible family

7 as a result of paragraph (2)(B).

8 ‘‘(4) DOWNPAYMENT REQUIREMENT.—Each

9 public housing agency providing assistance under

10 this subsection shall ensure that each family assisted

11 shall provide from its own resources not less than 80

12 percent of any downpayment in connection with a

13 loan made for the purchase of a dwelling. Such re14 sources may include amounts from any escrow ac15 count for the family established under section 23(d).

16 Not more than 20 percent of the downpayment may

17 be provided from other sources, such as from non18 profit entities and programs of States and units of

19 general local government.

20 ‘‘(5) INELIGIBILITY UNDER OTHER PRO21 GRAMS.—A family may not receive assistance under

22 this subsection during any period when assistance is

23 being provided for the family under other Federal

24 homeownership assistance programs, as determined

25 by the Secretary, which shall include assistance
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1 under the HOME Investment Partnerships Act, the

2 Homeownership and Opportunity Through HOPE

3 Act, title II of the Housing and Community Devel4 opment Act of 1987, and section 502 of the Housing

5 Act of 1949.

6 ‘‘(6) INAPPLICABILITY OF CERTAIN PROVI7 SIONS.—Assistance under this subsection shall not

8 be subject to the requirements of the following provi9 sions:

10 ‘‘(A) Subsection (h)(3) of this section.

11 ‘‘(B) Any other provisions of this section

12 governing maximum amounts payable to owners

13 and amounts payable by assisted families.

14 ‘‘(C) Any other provisions of this section

15 concerning contracts between public housing

16 agencies and owners.

17 ‘‘(E) Any other provisions of this Act

18 that are inconsistent with the provisions of this

19 subsection.

20 ‘‘(7) REVERSION TO RENTAL STATUS.—

21 ‘‘(A) FHA-INSURED MORTGAGES.—If a

22 family receiving assistance under this sub23 section for occupancy of a dwelling defaults

24 under a mortgage for the dwelling insured by

25 the Secretary under the National Housing Act,
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1 the family may not continue to receive rental

2 assistance under this section unless the family

3 (i) transfers to the Secretary marketable title to

4 the dwelling, (ii) moves from the dwelling with5 in the period established or approved by the

6 Secretary, and (iii) agrees that any amounts

7 the family is required to pay to reimburse the

8 escrow account under section 23(d)(3) may be

9 deducted by the public housing agency from the

10 assistance payment otherwise payable on behalf

11 of the family.

12 ‘‘(B) OTHER MORTGAGES.—If a family re13 ceiving assistance under this subsection defaults

14 under a mortgage not insured under the Na15 tional Housing Act, the family may not con16 tinue to receive rental assistance under this sec17 tion unless it complies with requirements estab18 lished by the Secretary.

19 ‘‘(C) ALL MORTGAGES.—A family receiving

20 assistance under this subsection that defaults

21 under a mortgage may not receive assistance

22 under this subsection for occupancy of another

23 dwelling owned by one or more members of the

24 family.
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1 ‘‘(8) DEFINITION OF FIRST-TIME HOME2 OWNER.—For purposes of this subsection, the term

3 ‘first-time homeowner’ means—

4 ‘‘(A) a family, no member of which has

5 had a present ownership interest in a principal

6 residence during the 3 years preceding the date

7 on which the family initially receives assistance

8 for homeownership under this subsection; and

9 ‘‘(B) any other family, as the Secretary

10 may prescribe.

11 ‘‘(u) DEFINITIONS.—For purposes of this section:

12 ‘‘(1) ANNUAL CONTRIBUTIONS CONTRACT.—

13 The term ‘annual contributions contract’ means a

14 contract under subsection (b) between the Secretary

15 and a public housing agency to provide amounts for

16 rental assistance payments under this section to the

17 public housing agency.

18 ‘‘(2) ASSISTANCE CONTRACT.—The term ‘as19 sistance contract’ means a contract under subsection

20 (c) between a public housing agency (or the Sec21 retary) and an owner to make rental assistance pay22 ments under this section to the owner.

23 ‘‘(3) DEBT SERVICE.—The term ‘debt service’

24 means the required payments for principal and in-
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1 terest made with respect to a mortgage secured by

2 housing assisted under this Act.

3 ‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The

4 term ‘drug-related criminal activity’ means the ille5 gal manufacture, sale, distribution, use, or posses6 sion with intent to manufacture, sell, distribute, or

7 use, of a controlled substance (as such term is de8 fined in section 102 of the Controlled Substances

9 Act).

10 ‘‘(5) OWNER.—The term ‘owner’ means any

11 private person or entity, including a cooperative, an

12 agency of the Federal Government, or a public hous13 ing agency, having the legal right to lease or sub14 lease dwelling units, and such term shall include any

15 principals, general partners, primary shareholders,

16 and other similar participants in any entity owning

17 a multifamily housing project (as such term is de18 fined in subsection (p)(3)), as well as the entity it19 self.

20 ‘‘(6) PARTICIPATING JURISDICTION.—The term

21 ‘participating jurisdiction’ means a State or unit of

22 general local government designated by the Sec23 retary to be a participating jurisdiction under title

24 II of the Cranston-Gonzalez National Affordable

25 Housing Act.
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1 ‘‘(7) PROJECT-BASED ASSISTANCE.—The term

2 ‘project-based assistance’ means rental assistance

3 under this section that is attached to a structure

4 pursuant to subsection (i).

5 ‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in6 clude, with respect to members of a cooperative, the

7 charges under the occupancy agreements between

8 such members and the cooperative.

9 ‘‘(9) RENTAL ASSISTANCE.—The term ‘rental

10 assistance’ means assistance provided under this sec11 tion on behalf of low-income families for the rental

12 of a dwelling unit.

13 ‘‘(10) TENANT-BASED ASSISTANCE.—The term

14 ‘tenant-based assistance’ means rental assistance

15 under this section that is not project-based assist16 ance.’’.

17 (b) TRANSITION.—

18 (1) APPLICABILITY.—The amendment made by

19 subsection (a) shall apply only to assistance under

20 section 8 of the United States Housing Act of 1937

21 provided pursuant to an assistance contract entered

22 into or renewed during fiscal year 1995 or there23 after. Any such assistance provided pursuant to an

24 assistance contract entered into before the com25 mencement of fiscal year 1995 shall be subject to
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1 the provisions of such section 8 as in effect imme2 diately before the enactment of this Act or otherwise

3 applicable to such assistance.

4 (2) CONTINUATION OF ASSISTANCE.—The Sec5 retary of Housing and Urban Development shall

6 take any action necessary to ensure that the provi7 sion of assistance under section 8 of the United

8 States Housing Act of 1937 to families receiving as9 sistance under such section on the date of the enact10 ment of this Act is not interrupted because of the

11 amendment made by subsection (a).

12 (c) CONFORMING AMENDMENTS.—

13 (1) UNITED STATES HOUSING ACT OF 1937.—

14 The United States Housing Act of 1937 is amend15 ed—

16 (A) in section 3(a)(1) (42 U.S.C.

17 1437a(a)(1)), by striking ‘‘(other than a family

18 assisted under section 8(o) or (y) or paying rent

19 under section 8(c)(3)(B))’’ and inserting

20 ‘‘(other than a family assisted under section

21 8(t))’’;

22 (B) in section 5 (42 U.S.C. 1737c)—

23 (i) in subsection (c)(7)(C), by striking

24 ‘‘section 8(b)(1)’’ each place it appears and

25 inserting ‘‘section 8’’;
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1 (ii) in subsection (j)(1)(B)(i), by strik2 ing ‘‘section 8(o)(6)’’ and inserting ‘‘sec3 tion 8’’; and

4 (iii) in subsection (j)(1)(D), by strik5 ing ‘‘subsection (b) or (o) of’’;

6 (C) in section 6(p)(1)(B) (42 U.S.C.

7 1437d(p)(1)(B)), by striking ‘‘holding certifi8 cates and vouchers’’ and inserting ‘‘eligible and

9 approved for assistance’’;

10 (D) in section 18(b)(3) (42 U.S.C.

11 1437p(b)(3))—

12 (i) in subparagraph (A)(iv), by strik13 ing ‘‘section 8(b)(1)’’ and inserting ‘‘sec14 tion 8’’;

15 (ii) in subparagraph (A)(v), by strik16 ing ‘‘(excluding vouchers under section

17 8(o))’’ each place it appears;

18 (iii) in subparagraph (B)—

19 (I) in the matter preceding clause

20 (i), by striking ‘‘(notwithstanding the

21 limitation under section 8(d)(2)(A) on

22 the amount of project-based assist23 ance provided by an agency)’’; and
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1 (II) in clause (ii), by striking

2 ‘‘(excluding vouchers under section

3 8(o))’’; and

4 (iv) in subparagraph (C), by striking

5 ‘‘certificates and vouchers available’’ and

6 inserting ‘‘families receiving tenant-based

7 assistance’’;

8 (E) in section 21(b)(3)—

9 (i) by striking ‘‘a certificate under

10 section 8(b)(1) or a housing voucher under

11 section 8(o)’’ and inserting ‘‘tenant-based

12 assistance under section 8’’; and

13 (ii) by striking ‘‘such certificate’’ and

14 inserting ‘‘such assistance’’;

15 (F) in section 23—

16 (i) in subsection (a), by striking ‘‘as17 sistance under the certificate and voucher

18 programs’’ and inserting ‘‘tenant-based as19 sistance’’;

20 (ii) in subsection (b)—

21 (I) in paragraph (1), by striking

22 ‘‘assistance under subsection (b) or

23 (o) of’’ and inserting ‘‘tenant-based

24 assistance under’’;
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1 (II) in paragraph (3)(A), by

2 striking ‘‘Certificate and voucher as3 sistance under section 8(b) and (o)’’

4 and inserting ‘‘Tenant-based assist5 ance under section 8’’; and

6 (III) in paragraph (4), by strik7 ing ‘‘Assistance under the certificate

8 or voucher programs’’ and inserting

9 ‘‘Tenant-based assistance’’;

10 (iii) in subsection (c)(1), by striking

11 ‘‘assistance under the certificate and

12 voucher programs of’’ and inserting ‘‘ten13 ant-based assistance from’’;

14 (iv) in subsection (d)(3) (as added by

15 section 185(b) of the Housing and Com16 munity Development Act of 1992 (Public

17 Law 102–550; 106 Stat. 3747)), by strik18 ing ‘‘section 8(y)’’ and inserting ‘‘section

19 8(t)’’; and

20 (v) in subsection (h)(1)—

21 (I) by striking ‘‘section 8(q) for

22 the costs incurred in administering

23 the provision of certificate and vouch24 er’’ and inserting ‘‘section 8(n) for the
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1 costs incurred in administering the

2 provision of tenant-based’’; and

3 (II) by striking ‘‘section

4 8(q)(2)(A)(i)’’ and inserting ‘‘section

5 8(n)(2)(A)’’; and

6 (G) in section 304(g)(3) (42 U.S.C.

7 1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)

8 and section 8(o)(9)’’ and inserting ‘‘section 8’’.

9 (2) ELDERLY INDEPENDENCE.—Section 803 of

10 the Cranston-Gonzalez National Affordable Housing

11 Act (42 U.S.C. 8012) is amended—

12 (A) in subsection (a), by striking ‘‘housing

13 certificates and vouchers’’ and inserting ‘‘assist14 ance under section 8 of the United States

15 Housing Act of 1937’’; and

16 (B) in subsection (b)—

17 (i) in the 1st sentence, by striking

18 ‘‘not more than 1500 incremental vouchers

19 and certificates under sections 8(b) and

20 8(o) of the United States Housing Act of

21 1937’’ and inserting ‘‘incremental assist22 ance under section 8 of the United States

23 Housing Act of 1937 on behalf of not more

24 than 1,500 frail elderly persons’’;
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1 (ii) in the 3rd sentence, by striking

2 ‘‘the housing certificate or voucher pro3 gram of the agency’’ and inserting ‘‘the

4 agency’s program for assistance under

5 such section 8’’; and

6 (iii) in the last sentence, by striking

7 ‘‘sections 8(b) and 8(o)’’ and inserting

8 ‘‘section 8’’.

9 (3) MCKINNEY ACT.—Section 441(b) of the

10 Stewart B. McKinney Homeless Assistance Act (42

11 U.S.C. 11401(b)) is amended—

12 (A) by striking ‘‘section 8(n)’’ and insert13 ing ‘‘section 8(l)’’; and

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

15 sentence: ‘‘Moderate rehabilitation under this

16 section shall be carried out in the manner pro17 vided under the provisions of section 8(e) of the

18 United States Housing Act of 1937, as such

19 section was in effect immediately before the en20 actment of the Housing and Community Devel21 opment Act of 1994.’’.

22 (4) NATIONAL HOUSING ACT.—Section 203(v)

23 of the National Housing Act (12 U.S.C. 1709(v)), as

24 added by section 185(c)(1)(B) of the Housing and

25 Community Development Act of 1992, is amended
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1 by striking ‘‘section 8(y)’’ and inserting ‘‘section

2 8(t)’’.

3 Subtitle D—Homeownership

4 Programs

5 SEC. 151. HOPE HOMEOWNERSHIP PROGRAMS.

6 (a) AUTHORIZATION OF APPROPRIATIONS AND

7 TECHNICAL ASSISTANCE.—

8 (1) IN GENERAL.—Section 402 of the Cran9 ston-Gonzalez National Affordable Housing Act (42

10 U.S.C. 12870) is amended by striking subsections

11 (a) and (b) and inserting the following new sub12 section:

13 ‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au14 thorized to be appropriated for grants under this title

15 $100,000,000 for fiscal year 1995 and $100,000,000 for

16 fiscal year 1996, which shall be available for activities au17 thorized under subtitles B and C. Any amounts appro18 priated pursuant to this subsection shall remain available

19 until expended.’’.

20 (b) MATCHING REQUIREMENTS.—

21 (1) HOPE II.—Section 423(c) of the Cranston22 Gonzalez National Affordable Housing Act (42

23 U.S.C. 12873(c)) is amended by striking ‘‘33 per24 cent’’ and inserting ‘‘25 percent’’.
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1 (2) HOPE III.—Section 443(c)(1) of the Cran2 ston-Gonzalez National Affordable Housing Act (42

3 U.S.C. 12893(c)(1)) is amended by striking ‘‘33 per4 cent’’ and inserting ‘‘25 percent’’.

5 SEC. 152. NATIONAL HOMEOWNERSHIP TRUST.

6 (a) EXTENSION OF TRUST.—Section 310 of the

7 Cranston-Gonzalez National Affordable Housing Act (42

8 U.S.C. 12859) is amended by striking ‘‘The’’ and all that

9 follows and inserting the following: ‘‘The Trust shall ter10 minate at the end of September 30, 1996.’’.

11 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

12 308 of the Cranston-Gonzalez National Affordable Hous13 ing Act (42 U.S.C. 12857) is amended to read as follows:

14 ‘‘SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘There are authorized to be appropriated for assist16 ance payments under this subtitle $558,809,562 for fiscal

17 year 1995 and $575,573,849 for fiscal year 1996, of

18 which such sums as may be necessary shall be available

19 in each such fiscal year for use under section 303(e). Any

20 amount appropriated under this section shall be deposited

21 in the Fund and shall remain available until expended,

22 subject to the provisions of section 309.’’.

23 SEC. 153. SECTION 235 MORTGAGE REFINANCING.

24 Section 235(r) of the National Housing Act (12

25 U.S.C. 1715z(r)) is amended—
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1 (1) in paragraph (2)(C), by inserting after ‘‘re2 financed’’ the following: ‘‘, plus the costs incurred in

3 connection with the refinancing as described in para4 graph (4)(B) to the extent that the amount for those

5 costs is not otherwise included in the interest rate

6 as permitted by subparagraph (E) or paid by the

7 Secretary as authorized by paragraph (4)(B)’’;

8 (2) in paragraph (4)—

9 (A) in the matter preceding subparagraph

10 (A), by inserting after ‘‘otherwise)’’ the follow11 ing: ‘‘and the mortgagee (with respect to the

12 amount described in subparagraph (A))’’; and

13 (B) in subparagraph (A), by inserting after

14 ‘‘mortgagor’’ the following: ‘‘and the mortga15 gee’’; and

16 (3) by amending paragraph (5) to read as fol17 lows:

18 ‘‘(5) The Secretary shall use amounts of budget au19 thority recaptured from assistance payments contracts re20 lating to mortgages that are being refinanced for assist21 ance payments contracts with respect to mortgages in22 sured under this subsection. The Secretary may also make

23 such recaptured amounts available for incentives under

24 paragraph (4)(A) and the costs incurred in connection

25 with the refinancing under paragraph (4)(B). For pur-
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1 poses of subsection (c)(3)(A), the amount of recaptured

2 budget authority that the Secretary commits for assist3 ance payments contracts relating to mortgages insured

4 under this subsection and for amounts paid under para5 graph (4) shall not be construed as unused.’’.

6 Subtitle E—Other Programs

7 SEC. 161. COMMUNITY PARTNERSHIPS AGAINST CRIME.

8 (a) SHORT TITLE, PURPOSES, AND AUTHORITY TO

9 MAKE GRANTS.—Sections 5121, 5122, and 5123 of the

10 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 note,

11 11901, 11902) are amended to read as follows:

12 ‘‘SEC. 5121. SHORT TITLE.

13 ‘‘This chapter may be cited as the ‘Community Part14 nerships Against Crime Act of 1994’.

15 ‘‘SEC. 5122. PURPOSES.

16 ‘‘The purposes of this chapter are to—

17 ‘‘(1) substantially expand and enhance the Fed18 eral Government’s commitment to eliminating crime

19 in and around public housing and other federally as20 sisted housing projects;

21 ‘‘(2) broaden the scope of the Public and As22 sisted Housing Drug Elimination Act of 1990 to

23 apply to all types of crime and not simply crime that

24 is drug-related;
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1 ‘‘(3) target opportunities for long-term commit2 ments of funding primarily to public housing agen3 cies with serious crime problems;

4 ‘‘(4) encourage the involvement of a broad

5 range of community-based groups, and residents of

6 neighboring housing that is owned or assisted by the

7 Secretary, in the development and implementation of

8 anti-crime plans;

9 ‘‘(5) reduce crime and disorder in and around

10 public housing through the expansion of community11 oriented policing activities and problem solving;

12 ‘‘(6) provide training, information services, and

13 other technical assistance to program participants;

14 and

15 ‘‘(7) establish a standardized assessment sys16 tem to evaluate need among public housing agencies,

17 and to measure progress in reaching crime reduction

18 goals.

19 ‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

20 ‘‘(a) IN GENERAL.—The Secretary of Housing and

21 Urban Development, in accordance with the provisions of

22 this chapter, may make grants, for use in eliminating

23 crime in and around public and other federally assisted

24 low-income housing projects to public housing agencies

25 (including Indian housing authorities) and private, for-
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1 profit and nonprofit owners of federally assisted low-in2 come housing, pursuant to applications submitted and ap3 proved under section 5125. In designing the program

4 under this chapter, the Secretary shall consult with the

5 Attorney General.

6 ‘‘(b) GRANT PERIOD.—Except as provided in sub7 section (c), a grant under this chapter shall be made to

8 cover a period of up to 2 years, as determined by the Sec9 retary, taking into consideration the period for which the

10 grant is requested as stated in the application under sec11 tion 5125.

12 ‘‘(c) GRANT PERIOD FOR PHA’S HAVING SEVERE

13 CRIME PROBLEMS.—In carrying out this chapter, the Sec14 retary may make grants to public housing agencies having

15 especially severe crime problems that cover a period of 1

16 year and that shall be renewed annually for each of the

17 succeeding 4 years, subject to—

18 ‘‘(1) the availability of amounts provided in ap19 propriation Acts, and

20 ‘‘(2) a finding by the Secretary, after an annual

21 or more frequent performance review, that the public

22 housing agency is performing under the terms of the

23 grant and applicable laws in a satisfactory manner,

24 a need for such assistance continues to exist, and
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1 the agency meets such other requirements as the

2 Secretary may prescribe.

3 The Secretary shall, by regulations issued after notice and

4 opportunity for public comment, set forth criteria for de5 termining public housing agencies that have especially se6 vere crime problems.’’.

7 (b) ELIGIBLE ACTIVITIES.—Section 5124 of the

8 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11903) is

9 amended—

10 (1) in subsection (a)—

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: ‘‘, such as fencing,

15 lighting, locking, and surveillance systems’’;

16 (C) by striking paragraph (4)(A) and in17 serting the following new subparagraph:

18 ‘‘(A) to investigate crime; and’’;

19 (D) in paragraph (6)—

20 (i) by striking ‘‘in and around public

21 or other federally assisted low-income

22 housing projects’’; and

23 (ii) by striking ‘‘and’’ after the semi24 colon; and
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1 (E) by striking paragraph (7) and insert2 ing 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

6 programs involving site residents;

7 ‘‘(8) the employment or utilization of 1 or more

8 individuals, including law enforcement officers, made

9 available by contract or other cooperative arrange10 ment with State or local law enforcement agencies,

11 to engage in community- and problem-oriented polic12 ing involving interaction with members of the com13 munity on proactive crime control and prevention;

14 ‘‘(9) programs and activities for or involving

15 youth, including activities involving training, edu16 cation, after school programs, cultural programs,

17 recreation and sports, career planning, and entrepre18 neurship and employment; and

19 ‘‘(10) service programs for residents that ad20 dress the contributing factors of crime, including

21 programs for job training, education, and other ap22 propriate social services.’’.

23 (2) in subsection (b)—

24 (A) in the matter preceding paragraph

25 (1)—
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1 (i) by striking ‘‘drug-related crime in’’

2 and inserting ‘‘crime in and around’’; and

3 (ii) by striking ‘‘paragraphs (1)

4 through (7)’’ and inserting ‘‘paragraphs

5 (1) through (10)’’;

6 (B) by striking paragraph (1) and insert7 ing the following new paragraph:

8 ‘‘(1) the housing is located in—

9 ‘‘(A) an area that has a severe crime prob10 lem, as determined by the Secretary; or

11 ‘‘(B) a high intensity drug trafficking area

12 designated pursuant to section 1005 of this

13 Act; and’’; and

14 (C) in paragraph (2), by striking ‘‘drug-re15 lated’’ and inserting ‘‘criminal’’.

16 (c) APPLICATIONS.—Section 5125 of the Anti-Drug

17 Abuse Act of 1988 (42 U.S.C. 11904) is amended—

18 (1) in subsection (a)—

19 (A) in the first sentence, by striking ‘‘, a

20 public housing resident management corpora21 tion,’’;

22 (B) in the second sentence (i) by striking

23 ‘‘drug-related crime on the premises of’’ and in24 serting the following: ‘‘crime in and around’’;

25 and
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1 (C) by inserting before the period at the

2 end the following: ‘‘and the period during which

3 any grant amounts received pursuant to the ap4 plication are to be used’’;

5 (2) in subsection (b)—

6 (A) in paragraph (1), by striking ‘‘drug-re7 lated crime problem in’’ and inserting in lieu

8 thereof the following: ‘‘crime problem in and

9 around’’;

10 (B) in paragraph (2), by inserting ‘‘and

11 around’’ after ‘‘crime problem in’’; and

12 (C) in paragraph (4), by inserting after

13 ‘‘local government’’ the following: ‘‘, local com14 munity-based non-profit organizations, local

15 resident organizations that represent the resi16 dents of neighboring projects that are owned or

17 assisted by the Secretary,’’;

18 (3) in subsection (c)(2), by striking ‘‘drug-relat19 ed’’ each place it appears;

20 (4) in subsection (d)—

21 (A) by striking ‘‘drug-related’’; and

22 (B) by redesignating such subsection as

23 subsection (e); and

24 (5) by inserting after subsection (c) the follow25 ing new subsection:
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1 ‘‘(d) PREFERENCES.—In selecting applicants to re2 ceive grants under this chapter (not including grants pur3 suant to section 5123(c)), the Secretary may give pref4 erence to an applicant for a grant that is to be used to

5 continue or expand activities assisted under a grant pre6 viously made under this chapter, but only if the Secretary

7 finds that the program carried out by the applicant under

8 the previous grant is being managed soundly and dem9 onstrates success, and a need for such assistance contin10 ues to exist.’’.

11 (d) DEFINITIONS.—Section 5126 of the Anti-Drug

12 Abuse Act of 1988 (42 U.S.C. 11905) is amended—

13 (1) by striking paragraphs (1) and (2); and

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

15 paragraphs (1) and (2), respectively.

16 (e) IMPLEMENTATION.—Section 5127 of the Anti17 Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended

18 by striking ‘‘Cranston-Gonzalez National Affordable

19 Housing Act’’ and inserting ‘‘Housing and Community

20 Development Act of 1994’’.

21 (f) REPORTS.—Section 5128 of the Anti-Drug Abuse

22 Act of 1988 (42 U.S.C. 11907) is amended by striking

23 ‘‘drug-related crime in’’ and inserting ‘‘crime in and

24 around’’.
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1 (g) AUTHORIZATION OF APPROPRIATIONS.—Section

2 5130 of the Anti-Drug Abuse Act of 1988 (42 U.S.C.

3 11909) is amended—

4 (1) in subsection (a), by striking the first sen5 tence and inserting the following new sentence:

6 ‘‘There are authorized to be appropriated to carry

7 out this chapter $272,950,000 for fiscal year 1995

8 and $281,138,500 for fiscal year 1996.’’;

9 (2) by striking the second sentence of sub10 section (b); and

11 (3) by striking subsection (c).

12 (h) TECHNICAL ASSISTANCE.—Chapter 2 of subtitle

13 C of title V of the Anti-Drug Abuse Act of 1988 (42

14 U.S.C. 11901 et seq.) is amended—

15 (1) by redesignating section 5130 as section

16 5131; and

17 (2) by inserting after section 5129 the following

18 new section:

19 ‘‘SEC. 5130. TECHNICAL ASSISTANCE.

20 ‘‘(a) AUTHORITY.—Of the amounts appropriated an21 nually for each of fiscal years 1995 and 1996 to carry

22 out this chapter, the Secretary may use an amount not

23 exceeding $10,000,000, directly or indirectly, under

24 grants, contracts, cooperative agreements, or otherwise, to

25 provide training, information services, and other technical
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1 assistance to public housing agencies and other entities

2 with respect to their participation in the program author3 ized by this chapter.

4 ‘‘(b) USE.—Such technical assistance may include—

5 ‘‘(1) the establishment and operation of the

6 clearinghouse on drug abuse in public housing and

7 the regional training program on drug abuse in pub8 lic housing under sections 5143 and 5144 of this

9 Act; and

10 ‘‘(2) obtaining assistance in establishing and

11 managing assessment and evaluation criteria and

12 specifications under this chapter, and obtaining the

13 opinions of experts in relevant fields.’’.

14 (i) CONFORMING AMENDMENTS.—The Anti-Drug

15 Abuse Act of 1988 is amended—

16 (1) by striking the heading for chapter 2 of

17 subtitle C of title V and inserting the following new

18 heading:

19 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

20 AGAINST CRIME’’;

21 and

22 (2) in the table of contents in section 5001

23 (Public Law 100–690; 102 Stat. 4295)—
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1 (A) by striking the item relating to the

2 heading for chapter 2 of subtitle C and insert3 ing the following new item:

‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;

4 (B) by striking the item relating to section

5 5122 and inserting the following new item:

‘‘Sec. 5122. Purposes.’’; .....................................................................

6 and

7 (C) by striking the item relating to section

8 5130 and inserting the following new items:

‘‘Sec. 5130. Authorization of appropriations.

‘‘Sec. 5131. Technical assistance.’’.

9 SEC. 162. PUBLIC HOUSING YOUTH SPORTS PROGRAMS.

10 Section 520 of the Cranston-Gonzalez National Af11 fordable Housing Act (42 U.S.C. 11903a) is amended—

12 (1) in subsection (a), by striking ‘‘provided for

13 public and assisted housing drug elimination grants

14 under section 5130(a) of the Anti-Drug Abuse Act

15 of 1988’’ and inserting ‘‘made available under sub16 section (k)’’; and

17 (2) by striking subsection (k) and inserting the

18 following new subsection:

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

20 are authorized to be appropriated for grants under this

21 section $13,647,000 for fiscal year 1995 and $14,056,925

22 for fiscal year 1996.’’.
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1 SEC. 163. LOW-INCOME HOUSING PRESERVATION.

2 (a) ASSISTANCE AND INCENTIVES.—Section 234 of

3 the Housing and Community Development Act of 1987

4 (12 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 ap7 propriated for assistance and incentives authorized under

8 this subtitle $685,011,183 for fiscal year 1995 and

9 $705,561,518 for fiscal year 1996.

10 ‘‘(b) GRANTS.—Subject to approval in appropriation

11 Acts, not more than $50,000,000 of the amounts made

12 available under subsection (a) for fiscal year 1995, and

13 not more than $50,000,000 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

18 and Community Development Act of 1987 (12 U.S.C.

19 4147) is amended to read as follows: ‘‘The Secretary shall

20 use not more than $25,000,000 of the amounts made

21 available under section 234(a) for fiscal year 1995, and

22 not more than $25,000,000 of the amounts made available

23 under section 234(a) for fiscal year 1996, to carry out

24 this subtitle.’’.
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1 SEC. 164. FLEXIBLE SUBSIDY PROGRAM.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

3 201(j)(5) of the Housing and Community Development

4 Amendments of 1978 (12 U.S.C. 1715z–1a(j)(5)) is

5 amended to read as follows:

6 ‘‘(5) There are authorized to be appropriated for as7 sistance under the flexible subsidy fund not to exceed

8 $56,024,172 for fiscal year 1995 and $57,704,897 for fis9 cal year 1996.’’.

10 (b) USE OF SECTION 236 RENTAL ASSISTANCE

11 FUND AMOUNTS.—Section 236(f)(3) of the National

12 Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by

13 striking ‘‘September 30, 1994’’ and inserting ‘‘September

14 30, 1996’’.

15 SEC. 165. HOUSING COUNSELING.

16 (a) COUNSELING SERVICES.—The first sentence of

17 section 106(a)(3) of the Housing and Urban Development

18 Act of 1968 (12 U.S.C. 1701x(a)(3)) is amended by strik19 ing ‘‘except that’’ and all that follows through the period

20 at the end and inserting the following: ‘‘except that for

21 such purposes there are authorized to be appropriated

22 $50,000,000 for fiscal year 1995 and $51,500,000 for fis23 cal year 1996.’’.

24 (b) EMERGENCY HOMEOWNERSHIP COUNSELING.—

25 (1) AUTHORIZATION OF APPROPRIATIONS.—

26 The first sentence of section 106(c)(8) of the Hous-
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•HR 3838 SC

1 ing and Urban Development Act of 1968 (12 U.S.C.

2 1701x(c)(8)) is amended to read as follows: ‘‘There

3 are authorized to be appropriated to carry out this

4 section $7,512,820 for fiscal year 1995 and

5 $7,738,205 for fiscal year 1995, of which amounts

6 $1,000,000 shall be available in each such fiscal year

7 to carry out paragraph (5)(D).’’.

8 (2) EXTENSION OF PROGRAM.—Section

9 106(c)(9) of the Housing and Urban Development

10 Act of 1968 (12 U.S.C. 1701x(c)(9)) is amended by

11 striking ‘‘September 30, 1994’’ and inserting ‘‘Sep12 tember 30, 1996’’.

13 (c) PREPURCHASE AND FORECLOSURE-PREVENTION

14 COUNSELING DEMONSTRATION.—

15 (1) AUTHORIZATION OF APPROPRIATIONS.—

16 Section 106(d)(12) of the Housing and Urban De17 velopment Act of 1968 (12 U.S.C. 1701x(d)(12)) is

18 amended to read as follows:

19 ‘‘(12) AUTHORIZATION OF APPROPRIATIONS.—

20 There are authorized to be appropriated to carry out

21 this subsection $391,740 for fiscal year 1995 and

22 $403,492 for fiscal year 1996.’’.

23 (2) EXTENSION OF PROGRAM.—Section

24 106(d)(13) of the Housing and Urban Development

25 Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended
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1 by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal

2 year 1996’’.

3 (d) COUNSELOR TRAINING AND CERTIFICATION PRO4 GRAM.—Section 106(f)(7) of the Housing and Urban De5 velopment Act of 1968 (12 U.S.C. 1701x(f)(7)) is amend6 ed to read as follows:

7 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

8 There are authorized to be appropriated to carry out

9 this subsection $2,146,520 for fiscal year 1995 and

10 $2,210,916 for fiscal year 1996.’’.

11 SEC. 166. PREVENTING MORTGAGE DEFAULTS ON MULTI12 FAMILY HOUSING PROJECTS.

13 (a) MULTIFAMILY HOUSING PLANNING AND INVEST14 MENT STRATEGIES.—

15 (1) PREPARATION OF ASSESSMENTS FOR INDE16 PENDENT ENTITIES.—Section 402(a) of the Housing

17 and Community Development Act of 1992 (12

18 U.S.C. 1715–1a note) is amended by adding at the

19 end the following new sentence: ‘‘The assessment

20 shall be prepared by an entity that does not have an

21 identity of interest with the owner.’’.

22 (2) TIMING OF SUBMISSION OF NEEDS ASSESS23 MENTS.—Section 402(b) of the Housing and Com24 munity Development Act of 1992 (12 U.S.C. 17152–

25 1a note) is amended to read as follows:
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1 ‘‘(b) TIMING.—To ensure that assessments for all

2 covered multifamily housing properties will be submitted

3 on or before the conclusion of fiscal year 1997, the Sec4 retary shall require the owners of such properties, includ5 ing covered multifamily housing properties for the elderly,

6 to submit the assessments for the properties in accordance

7 with the following schedule:

8 ‘‘(1) For fiscal year 1994, 10 percent of the ag9 gregate number of such properties.

10 ‘‘(2) For each of fiscal years 1995, 1996, and

11 1997, an additional 30 percent of the aggregate

12 number of such properties.’’.

13 (3) REVIEW OF COMPREHENSIVE NEEDS AS14 SESSMENTS.—Section 404(d) of the Housing and

15 Community Development Act of 1992 (12 U.S.C.

16 1715–1a note) is amended to read as follows:

17 ‘‘(d) REVIEW.—

18 ‘‘(1) IN GENERAL.—The Secretary shall review

19 each comprehensive needs assessment for complete20 ness and adequacy before the expiration of the 90-

21 day period beginning on the receipt of the assess22 ment and shall notify the owner of the property for

23 which the assessment was submitted of the findings

24 of such review.
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1 ‘‘(2) INCOMPLETE OR INADEQUATE ASSESS2 MENTS.—If the Secretary determines that the as3 sessment is substantially incomplete or inadequate,

4 the Secretary shall—

5 ‘‘(A) notify the owner of the portion or

6 portions of the assessment requiring completion

7 or other revision; and

8 ‘‘(B) require the owner to submit an

9 amended assessment to the Secretary not later

10 than 30 days after such notification.’’.

11 (4) REPEAL OF NOTICE PROVISION.—Section

12 404 of the Housing and Community Development

13 Act of 1992 (12 U.S.C. 1715–1a note) is amend14 ed—

15 (A) by striking subsection (f); and

16 (B) by redesignating subsection (g) as sub17 section (f).

18 (5) FUNDING.—Title IV of the Housing and

19 Community Development Act of 1992 (12 U.S.C.

20 1715z–1a note) is amended by adding at the end the

21 following new section:

22 ‘‘SEC. 409. FUNDING.

23 ‘‘(a) ALLOCATION OF ASSISTANCE.—Based upon

24 needs identified in comprehensive needs assessments, and

25 subject to otherwise applicable program requirements, in-
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1 cluding selection criteria, the Secretary may allocate the

2 following assistance to owners of covered multifamily

3 housing projects and may provide such assistance on a

4 noncompetitive basis:

5 ‘‘(1) Operating assistance and capital improve6 ment assistance for troubled multifamily housing

7 projects pursuant to section 201 of the Housing and

8 Community Development Amendments of 1978, ex9 cept for assistance set aside under section 201(n)(1).

10 ‘‘(2) Loan management assistance available

11 pursuant to section 8 of the United States Housing

12 Act of 1937.

13 ‘‘(b) OPERATING ASSISTANCE AND CAPITAL IM14 PROVEMENT ASSISTANCE.—In providing assistance under

15 subsection (a) the Secretary shall use the selection criteria

16 set forth in section 201(n) of the Housing and Community

17 Development Amendments of 1978.

18 ‘‘(c) AMOUNT OF ASSISTANCE.—The Secretary may

19 fund all or only a portion of the needs identified in the

20 capital needs assessment of an owner selected to receive

21 assistance under this section.’’.

22 (b) FLEXIBLE SUBSIDY PROGRAM.—

23 (1) DELETION OF UTILITY COST REQUIRE24 MENTS.—Section 201(i) of the Housing and Com-
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1 munity Development Amendments of 1978 (12

2 U.S.C. 1715z–1a(i)) is hereby repealed.

3 (2) REPEAL OF MANDATORY CONTRIBUTION

4 FROM OWNER.—Section 201(k)(2) of the Housing

5 and Community Development Amendments of 1978

6 (12 U.S.C. 1715z–1a(k)(2)) is amended by striking

7 ‘‘, except that’’ and all that follows and inserting a

8 period.

9 (3) FUNDING.—Section 201(n) of the Housing

10 and Community Development Amendments of 1978

11 (42 U.S.C. 1715z–1a(n)) is amended to read as

12 follows:

13 ‘‘(n) ALLOCATION OF ASSISTANCE.—

14 ‘‘(1) SET-ASIDE.—In providing, and contracting

15 to provide, assistance for capital improvements

16 under this section, in each fiscal year the Secretary

17 shall set aside an amount, as determined by the Sec18 retary, for projects that are eligible for incentives

19 under section 224(b) of the Emergency Low Income

20 Housing Preservation Act of 1987, as such section

21 existed before the date of enactment of the Cran22 ston-Gonzalez National Affordable Housing Act. The

23 Secretary may make such assistance available on a

24 noncompetitive basis.
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1 ‘‘(2) GENERAL RULES FOR ALLOCATION.—Ex2 cept as provided in paragraph (3), with respect to

3 assistance under this section not set aside for

4 projects under paragraph (1), the Secretary—

5 ‘‘(A) may award assistance on a non6 competitive basis; and

7 ‘‘(B) shall award assistance to eligible

8 projects on the basis of—

9 ‘‘(i) the extent to which the project is

10 physically or financially troubled, as evi11 denced by the comprehensive needs assess12 ment submitted in accordance with title IV

13 of the Housing and Community Develop14 ment Act of 1992; and

15 ‘‘(ii) the extent to which such assist16 ance is necessary and reasonable to pre17 vent the default of federally insured mort18 gages.

19 ‘‘(3) EXCEPTIONS.—The Secretary may make

20 exceptions to selection criteria set forth in paragraph

21 (2) to permit the provision of assistance to eligible

22 projects based upon—

23 ‘‘(A) the extent to which such assistance is

24 necessary to prevent the imminent foreclosure

25 or default of a project whose owner has not
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•HR 3838 SC

1 submitted a comprehensive needs assessment

2 pursuant to title IV of the Housing and Com3 munity Development Act of 1992;

4 ‘‘(B) the extent to which the project pre5 sents an imminent threat to the life, health,

6 and safety of project residents; or

7 ‘‘(C) such other criteria as the Secretary

8 may specify by regulation or by notice printed

9 in the Federal Register.

10 ‘‘(4) CONSIDERATIONS.—In providing assist11 ance under this section, the Secretary shall take into

12 consideration—

13 ‘‘(A) the extent to which there is evidence

14 that there will be significant opportunities for

15 residents (including a resident council or resi16 dent management corporation, as appropriate)

17 to be involved in the management of the project

18 (except that this paragraph shall have no appli19 cation to projects that are owned as coopera20 tives); and

21 ‘‘(B) the extent to which there is evidence

22 that the project owner has provided competent

23 management and complied with all regulatory

24 and administrative handbooks (including such

25 handbooks with respect to the comprehensive
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1 servicing of multifamily projects as the Sec2 retary may issue).’’.

3 (4) REPEAL.—Section 201 of the Housing and

4 Community Development Amendments of 1978 (12

5 U.S.C. 1715z–1a) is amended—

6 (A) by striking subsection (o); and

7 (B) by redesignating subsection (p) as sub8 section (o).

9 (c) IMPLEMENTATION AND EFFECTIVE DATE FOR

10 SUBSECTIONS (a) AND (b).—The Secretary shall, by no11 tice published in the Federal Register, which shall take

12 effect upon publication, establish such requirements as

13 may be necessary to implement the amendments made by

14 subsections (a) and (b). The notice shall invite public com15 ments and, not later than 12 months after the date on

16 which the notice is published, the Secretary shall issue

17 final regulations based on the initial notice, taking into

18 account any public comments received.

19 (d) STREAMLINED REFINANCING.—As soon as prac20 ticable, the Secretary shall implement a streamlined refi21 nancing program under the authority provided in section

22 223 of the National Housing Act to prevent the default

23 of mortgages insured by the FHA which cover multifamily

24 housing projects, as defined in section 203(b) of the Hous25 ing and Community Development Amendments of 1978.
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•HR 3838 SC

1 (e) GAO STUDY ON PREVENTION OF DEFAULT.—

2 (1) IN GENERAL.—Not later than September 1,

3 1995, the Comptroller General of the United States

4 shall submit to the Committee on Banking, Finance

5 and Urban Affairs of the House of Representatives

6 and the Committee on Banking, Housing, and

7 Urban Affairs of the Senate a report that evaluates

8 the adequacy of loan loss reserves in the General In9 surance and Special Risk Insurance Funds and pre10 sents recommendations for the Secretary to prevent

11 losses from occurring.

12 (2) CONTENTS.—The report submitted under

13 paragraph (1) shall—

14 (A) evaluate the factors considered in ar15 riving at loss estimates and determine whether

16 other factors should be considered;

17 (B) determine the relative benefit of creat18 ing a new, actuarially sound insurance fund for

19 all new multifamily housing insurance commit20 ments; and

21 (C) recommend alternatives to the Sec22 retary’s current procedures for preventing the

23 future default of multifamily housing project

24 mortgages insured under title II of the National

25 Housing Act.
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1 SEC. 167. YOUTHBUILD PROGRAM.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

3 402 of the Cranston-Gonzalez National Affordable Hous4 ing Act (42 U.S.C. 12870), as amended by the preceding

5 provisions of this title, is amended by inserting after sub6 section (a) the following new subsection:

7 ‘‘(b) YOUTHBUILD PROGRAM.—There are authorized

8 to be appropriated for activities under subtitle D

9 $50,000,000 for fiscal year 1995 and $51,500,000 for fis10 cal year 1996. Any amounts appropriated pursuant to this

11 subsection shall remain available until expended.’’.

12 (b) PROGRAM NAME.—The heading for subtitle D of

13 title IV of the Cranston-Gonzalez National Affordable

14 Housing Act (42 U.S.C. 12899 et seq.) is amended to read

15 as follows:

16 ‘‘Subtitle D—Youthbuild’’.

17 TITLE II—HOME INVESTMENT

18 PARTNERSHIPS

19 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

20 Section 205 of the Cranston-Gonzalez National Af21 fordable Housing Act (42 U.S.C. 12724) is amended to

22 read as follows:

23 ‘‘SEC. 205. AUTHORIZATION.

24 ‘‘There are authorized to be appropriated to carry out

25 this title $2,238,820,360 for fiscal year 1995, and

26 $2,305,984,971 for fiscal year 1996, of which—
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•HR 3838 SC

1 ‘‘(1) not more than $25,000,000 for fiscal year

2 1995, and $25,000,000 for fiscal year 1996, shall be

3 for community housing partnership activities author4 ized under section 233; and

5 ‘‘(2) not more than $22,000,000 for fiscal year

6 1995, and $22,000,000 for fiscal year 1996, shall be

7 for activities in support of State and local housing

8 strategies authorized under subtitle C.’’.

9 SEC. 202. PARTICIPATION BY STATE AGENCIES OR INSTRU10 MENTALITIES.

11 Section 104(2) of the Cranston-Gonzalez National

12 Affordable Housing Act (42 U.S.C. 12704(2)) is amended

13 by inserting before the period at the end the following:

14 ‘‘, and any agency or instrumentality thereof that is estab15 lished pursuant to legislation and designated by the chief

16 executive to act on behalf of the State with regard to the

17 provisions of this Act’’.

18 SEC. 203. SIMPLIFICATION OF PROGRAM-WIDE INCOME

19 TARGETING FOR RENTAL HOUSING.

20 Section 214(1) of the Cranston-Gonzalez National

21 Affordable Housing Act (42 U.S.C. 12744(1)) is amend22 ed—

23 (1) in subparagraph (A)—

24 (A) by striking ‘‘such funds are invested

25 with respect to dwelling units that are occupied
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1 by’’ and inserting ‘‘(i) the families receiving

2 such rental assistance are’’; and

3 (B) by striking ‘‘, and’’ and inserting ‘‘or

4 (ii) the dwelling units assisted with such funds

5 are occupied by families having such incomes;

6 and’’; and

7 (2) in subparagraph (B)—

8 (A) by striking ‘‘such funds are invested

9 with respect to dwelling units that are occupied

10 by’’ and inserting ‘‘(i) the families receiving

11 such rental assistance are’’; and

12 (B) by inserting before the semicolon at

13 the end the following: ‘‘, or (ii) the dwelling

14 units assisted with such funds are occupied by

15 such households’’.

16 SEC. 204. HOMEOWNERSHIP UNITS.

17 (a) REMOVAL OF FIRST-TIME HOMEBUYER RE18 QUIREMENT.—Section 215(b) of the Cranston-Gonzalez

19 National Affordable Housing Act (42 U.S.C. 12745(b)) is

20 amended—

21 (1) by striking paragraph (3); and

22 (2) by redesignating paragraphs (4) and (5) as

23 paragraphs (3) and (4), respectively.

24 (b) SIMPLIFICATION OF RESALE PROVISIONS.—Sec25 tion 215(b)(4)(B) of the Cranston-Gonzalez National Af-
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1 fordable Housing Act (42 U.S.C. 12745(b)(4)(B)), as re2 designated by subsection (a) of this section, is amended

3 by striking ‘‘subsection’’ and inserting ‘‘title’’.

4 SEC. 205. COMPREHENSIVE AFFORDABLE HOUSING STRAT5 EGY.

6 Section 218(d) of the Cranston-Gonzalez National

7 Affordable Housing Act (42 U.S.C. 12748(d)) is amended

8 in the first sentence, by inserting ‘‘that it is complying

9 with a current housing affordability strategy that has been

10 approved by the Secretary in accordance with section 105,

11 and’’ after ‘‘certification’’.

12 SEC. 206. SIMPLIFICATION OF MATCHING REQUIREMENTS.

13 Section 220(a) of the Cranston-Gonzalez National

14 Affordable Housing Act (42 U.S.C. 12750(a)) is amended

15 to read as follows:

16 ‘‘(a) CONTRIBUTION.—Each participating jurisdic17 tion shall make contributions to housing that qualifies as

18 affordable housing under this title that total, throughout

19 a fiscal year, not less than 25 percent of the funds drawn

20 from the jurisdiction’s HOME Investment Trust Fund in

21 such fiscal year. Such contributions shall be in addition

22 to any amounts made available under section

23 216(3)(A)(ii).’’.
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1 SEC. 207. REPEAL OF SEPARATE AUDIT REQUIREMENT.

2 Section 283 of the Cranston-Gonzalez National Af3 fordable Housing Act (42 U.S.C. 12833) is amended—

4 (1) by striking the section designation and

5 heading and inserting the following:

6 ‘‘SEC. 283. AUDITS BY COMPTROLLER GENERAL.’’;

7 (2) by striking subsection (a);

8 (3) in subsection (b)—

9 (A) by striking ‘‘(b) AUDITS BY THE

10 COMPTROLLER GENERAL.—’’;

11 (B) by redesignating paragraphs (1) and

12 (2) as subsections (a) and (b), respectively; and

13 (C) by moving subsections (a) and (b), as

14 redesignated by subparagraph (B), 2 ems to the

15 left so that such subsections are flush with the

16 left margin; and

17 (4) in subsection (a), as redesignated by para18 graph (3)(B), by striking the second sentence.

19 SEC. 208. ENVIRONMENTAL REVIEW REQUIREMENTS.

20 Section 288 of the Cranston-Gonzalez National Af21 fordable Housing Act (42 U.S.C. 12838) is amended—

22 (1) in subsection (a)—

23 (A) in the first sentence, by striking ‘‘par24 ticipating jurisdictions’’ and inserting ‘‘jurisdic25 tions, Indian tribes, or insular areas’’; and
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1 (B) by adding at the end the following new

2 sentences: ‘‘The regulations shall provide—

3 ‘‘(1) for the monitoring of the performance of

4 environmental reviews under this section;

5 ‘‘(2) in the discretion of the Secretary, for the

6 provision or facilitation of training for the perform7 ance of such reviews; and

8 ‘‘(3) for the suspension or termination of the

9 assumption under this section.

10 The Secretary’s duty under the preceding sentence shall

11 not be construed to limit or reduce any responsibility as12 sumed by a State or unit of general local government with

13 respect to any particular release of funds.’’;

14 (2) in the first sentence of subsection (b), by

15 striking ‘‘participating jurisdiction’’ and inserting

16 ‘‘jurisdiction, Indian tribe, or insular area’’;

17 (3) in subsection (c)(4)(B), by striking ‘‘partici18 pating jurisdiction’’ and inserting ‘‘jurisdiction, In19 dian tribe, or insular area’’; and

20 (4) in subsection (d), by striking ‘‘ASSISTANCE

21 TO A STATE.—In the case of assistance to States’’

22 and inserting the following: ‘‘ASSISTANCE TO UNITS

23 OF GENERAL LOCAL GOVERNMENT FROM A

24 STATE.—In the case of assistance to units of gen25 eral local government from a State’’.
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1 SEC. 209. USE OF CDBG FUNDS FOR HOME PROGRAM EX2 PENSES.

3 (a) ADMINISTRATIVE EXPENSES.—Section

4 105(a)(13) of the Housing and Community Development

5 Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by in6 serting after ‘‘charges related to’’ the following: ‘‘(A) ad7 ministering the HOME program under title II of the

8 Cranston-Gonzalez National Affordable Housing Act; and

9 (B)’’.

10 (b) PROJECT DELIVERY COSTS.—Section 105(a)(21)

11 of the Housing and Community Development Act of 1974

12 (42 U.S.C. 5305(a)(21)) is amended—

13 (1) by inserting ‘‘in connection with tenant14 based rental assistance and affordable housing

15 projects assisted under title II of the Cranston-Gon16 zalez National Affordable Housing Act’’ after ‘‘hous17 ing counseling’’; and

18 (2) by striking ‘‘authorized’’ and all that follows

19 through ‘‘any law’’ and inserting ‘‘assisted under

20 title II of the Cranston-Gonzalez National Afford21 able Housing Act’’.

22 SEC. 210. GAO STUDY OF USE OF HOME PROGRAM FUNDS.

23 The Comptroller General of the United States shall

24 conduct a study of the use of amounts provided under title

25 II of the Cranston-Gonzalez National Affordable Housing

26 Act to participating jurisdictions for each of fiscal years
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1 1992, 1993, and 1994, and the activities undertaken with

2 such amounts. The study shall determine, for the amounts

3 provided for each such fiscal year—

4 (1) the amount expended for single family hous5 ing and the types and number of units provided;

6 (2) the amount expended for multifamily rental

7 housing and the types and number of units provided;

8 (3) the amount expended for new construction

9 of housing and the types and number of units pro10 vided;

11 (4) the amount expended for rehabilitation of

12 housing and the types and number of units provided;

13 and

14 (5) the amount expended pursuant to sections

15 231 and 232 of the Cranston-Gonzalez National Af16 fordable Housing Act for activities of community

17 housing development organizations, including—

18 (A) the amount expended for providing

19 housing, the types of assistance provided, and

20 types and number of units provided; and

21 (B) the amount expended for technical and

22 other assistance and the types of assistance

23 provided.
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1 Not later than March 31, 1995, the Comptroller General

2 shall submit to the Congress a report containing the re3 sults of the study conducted under this section.

4 SEC. 211. CAPACITY BUILDING FOR COMMUNITY DEVELOP5 MENT AND AFFORDABLE HOUSING.

6 Section 4(e) of the HUD Demonstration Act of 1993

7 (42 U.S.C. 9816 note) is amended to read as follows:

8 ‘‘(e) FUNDING.—From any amounts appropriated to

9 carry out title II of the Cranston-Gonzalez National Af10 fordable Housing Act for fiscal years 1995 and 1996,

11 $25,000,000 shall be available in each such fiscal year to

12 carry out this section.’’.

13 SEC. 212. APPLICABILITY AND REGULATIONS.

14 The amendments made by this title shall apply with

15 respect to any amounts made available to carry out title

16 II of the Cranston-Gonzalez National Affordable Housing

17 Act after the date of the enactment of this Act and any

18 amounts made available to carry out such title before such

19 date of enactment that remain unobligated on such date.

20 The Secretary shall issue any regulations necessary to

21 carry out the amendments made by this title not later than

22 the expiration of the 45-day period beginning on the date

23 of the enactment of this Act.
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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

9 following new subsection:

10 ‘‘(a) AGGREGATE FUNDING.—There are authorized

11 to be appropriated for the purpose of providing assistance

12 in accordance with section 202 of the Housing Act of 1959

13 and section 811 of the Cranston-Gonzalez National Af14 fordable Housing Act, $1,591,350,000 for fiscal year 1995

15 and $1,639,090,500 for fiscal year 1996.’’.

16 SEC. 302. ELDER COTTAGE HOUSING DEMONSTRATION

17 PROGRAM.

18 (a) FUNDING.—The first sentence of section

19 806(b)(2) of the Cranston-Gonzalez National Affordable

20 Housing Act (12 U.S.C. 1701q note) is amended to read

21 as follows: ‘‘Notwithstanding any other law, the Secretary

22 shall reserve from any amounts available for capital ad23 vances and project rental assistance under section 202 of

24 the Housing Act of 1959, amounts sufficient in each of

25 fiscal years 1995 and 1996 to provide not less than 100
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1 units under the demonstration under this subsection in

2 connection with each such section.’’.

3 (b) REPORT.—Section 806(b)(3) of the Cranston4 Gonzalez National Affordable Housing Act (12 U.S.C.

5 1701q note) is amended by striking ‘‘January 1, 1994,

6 the Secretary shall submit a’’ and inserting ‘‘January 1,

7 1995, the Secretary shall submit an interim’’.

8 SEC. 303. REVISED CONGREGATE SERVICES.

9 Section 802(n)(1) of the Cranston-Gonzalez National

10 Affordable Housing Act (42 U.S.C. 8011(n)(1)) is amend11 ed by striking the matter preceding subparagraph (A) and

12 inserting the following:

13 ‘‘(1) AUTHORIZATION AND USE.—There are au14 thorized to be appropriated to carry out this section

15 $25,750,000 for fiscal year 1995, and $26,522,500

16 for fiscal year 1996, of which not more than—’’.

17 SEC. 304. ELDERLY INDEPENDENCE DEMONSTRATION.

18 (a) SECTION 8 ASSISTANCE.—The first sentence of

19 section 803(j) of the Cranston-Gonzalez National Afford20 able Housing Act (42 U.S.C. 8012(j)) is amended to read

21 as follows: ‘‘The budget authority available under section

22 5(c) of the United States Housing Act of 1937 for assist23 ance under section 8 of such Act is authorized to be in24 creased by $41,092,979 on or after October 1, 1994, and

25 by $42,325,768 on or after October 1, 1995.’’.
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1 (b) SUPPORTIVE SERVICES AUTHORIZATION.—The

2 first sentence of section 803(k) of the Cranston-Gonzalez

3 National Affordable Housing Act (42 U.S.C. 8012(k)) is

4 amended to read as follows: ‘‘There are authorized to be

5 appropriated for the Secretary to carry out the responsibil6 ities for supportive services under the demonstrations

7 under this section $10,732,600 to become available in fis8 cal year 1995, and $11,054,578 to become available in fis9 cal year 1996.’’.

10 (c) AMENDMENT TO HEADING.—Section 803(k) of

11 the Cranston-Gonzalez National Affordable Housing Act

12 (42 U.S.C.8012) is amended by striking the section des13 ignation and heading and inserting the following:

14 ‘‘SEC. 803. ELDERLY INDEPENDENCE DEMONSTRATION.’’.

15 SEC. 305. HOUSING OPPORTUNITIES FOR PERSONS WITH

16 AIDS.

17 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

18 863 of the Cranston-Gonzalez National Affordable Hous19 ing Act (42 U.S.C. 12912) is amended to read as follows:

20 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

21 ‘‘There are authorized to be appropriated to carry out

22 this subtitle $250,000,000 for fiscal year 1995 and

23 $257,500,000 for fiscal year 1996.’’.
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1 (b) TECHNICAL ASSISTANCE.—Section 854(c)(3) of

2 the Cranston-Gonzalez National Affordable Housing Act

3 (42 U.S.C. 12903(c)(3)) is amended—

4 (1) in subparagraph (A)—

5 (A) in clause (i), by striking ‘‘and’’ at the

6 end;

7 (B) in clause (ii), by striking the period at

8 the end and inserting ‘‘; and’’; and

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

10 clause:

11 ‘‘(iii) nonprofit organizations that pro12 vide technical assistance on a national, re13 gional, or State-wide basis to nonprofit or14 ganizations carrying out eligible activities

15 under section 855 for eligible persons, to

16 provide such technical assistance, except

17 that not more than 2 percent of the

18 amounts available in any fiscal year for al19 location under this paragraph shall be used

20 as provided in this clause.’’; and

21 (2) in subparagraph (B), by striking ‘‘this para22 graph’’ and inserting ‘‘clauses (i) and (ii) of sub23 paragraph (A)’’.

24 (c) COOPERATION.—
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1 (1) IN GENERAL.—Section 856(c) of the Cran2 ston-Gonzalez National Affordable Housing Act (42

3 U.S.C. 12905(c)) is amended by striking ‘‘The recip4 ient’’ and all that follows and inserting the following:

5 ‘‘The recipient shall establish and implement a proc6 ess for ensuring coordination and community input

7 in planning for and providing services assisted with

8 amounts provided under this subtitle. The planning

9 process shall include consultation and coordination

10 with the agencies of the relevant State and local gov11 ernments responsible for services for eligible persons

12 in the area served by the applicant and with other

13 public and private organizations and agencies pro14 viding services for such eligible persons (including

15 individuals with human immunodeficiency virus dis16 ease), including community-based and AIDS service

17 organizations, providers of social services, providers

18 of mental health care, providers of substance abuse

19 treatment services, nonprofit providers of housing

20 for eligible persons, and affected communities.’’.

21 (2) APPLICATION.—Section 854(d) of the Cran22 ston-Gonzalez National Affordable Housing Act (42

23 U.S.C. 12903(d)) is amended—

24 (1) in paragraph (5), by striking ‘‘and’’ at the

25 end;
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1 (2) by redesignating paragraph (6) as para2 graph (7); and

3 (3) by inserting after paragraph (5) the follow4 ing new paragraph:

5 ‘‘(6) a description of the activities to be under6 taken in fulfilling the requirements under section

7 856(c); and’’.

8 (d) ADMINISTRATIVE EXPENSES.—Section 856(g)(2)

9 of the Cranston-Gonzalez National Affordable Housing

10 Act (42 U.S.C. 12905(g)(2)) is amended—

11 (1) by striking ‘‘title’’ and inserting ‘‘subtitle’’;

12 and

13 (2) by striking ‘‘, including the costs of staff

14 necessary to carry out eligible activities’’.

15 SEC. 306. SERVICE COORDINATORS.

16 (a) PUBLIC HOUSING.—Section 9 of the United

17 States Housing Act of 1937 (42 U.S.C. 1437g) is amend18 ed—

19 (1) in subsection (a)(1)(B)(ii)—

20 (A) in the 1st sentence, by striking ‘‘An21 nual’’ and all that follows through ‘‘such

22 project,’’ and inserting ‘‘To the extent amounts

23 are made available pursuant to section 5(c) for

24 carrying out this clause, the Secretary may in25 crease the annual contributions provided under
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1 this section to any public housing agency for

2 any project to provide’’; and

3 (B) by striking the last 2 sentences.

4 (b) OTHER FEDERALLY ASSISTED MULTIFAMILY

5 HOUSING.—Section 676(c) of the Housing and Commu6 nity Development Act of 1992 (42 U.S.C. 13632(c)) is

7 amended to read as follows:

8 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated for grants under this

10 section such sums as may be necessary for each of fiscal

11 years 1995 and 1996.’’.

12 TITLE IV—MORTGAGE INSUR13 ANCE AND SECONDARY

14 MORTGAGE MARKET

15 Subtitle A—Mortgage Insurance

16 and Loan Guarantee Programs

17 SEC. 401. LIMITATION ON INSURANCE AUTHORITY.

18 Section 531(b) of the National Housing Act (12

19 U.S.C. 1735f–9(b)) is amended to read as follows:

20 ‘‘(b) Notwithstanding any other provision of law and

21 subject only to the absence of qualified requests for insur22 ance, to the authority provided in this Act, and to the limi23 tation in subsection (a), the Secretary shall enter into

24 commitments to insure mortgages under this Act with an

25 aggregate principal amount of $105,000,000,000 during
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1 fiscal year 1995 and $105,000,000,000 during fiscal year

2 1996.’’.

3 SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY

4 BOARD.

5 Section 202(b)(11) of the National Housing Act (12

6 U.S.C. 1708(b)(11)) is amended by striking ‘‘January 1,

7 1995.’’ and inserting ‘‘January 1, 1997.’’.

8 SEC. 403. HOME EQUITY CONVERSION MORTGAGES FOR EL9 DERLY HOMEOWNERS.

10 The 1st sentence of section 255(g) of the National

11 Housing Act (12 U.S.C. 1715z–20(g)) is amended by

12 striking ‘‘September 30, 1995’’ and inserting ‘‘September

13 30, 1996’’.

14 SEC. 404. MULTIFAMILY HOUSING FINANCING PROGRAMS.

15 (a) FUNDING.—

16 (1) RISK-SHARING PILOT PROGRAM.—Section

17 542(b)(5) of the Housing and Community Develop18 ment Act of 1992 (12 U.S.C. 1707 note) is amended

19 by striking ‘‘fiscal years 1993 and 1994’’ and insert20 ing ‘‘fiscal years 1995 and 1996’’.

21 (2) HOUSING FINANCE AGENCY PILOT PRO22 GRAM.—Section 542(c)(4) of the Housing and Com23 munity Development Act of 1992 (12 U.S.C. 1707

24 note) is amended by striking ‘‘30,000 units over fis-
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1 cal years 1993, 1994, and 1995’’ and inserting

2 ‘‘10,000 units in fiscal year 1996’’.

3 (b) AMENDMENTS TO RISK-SHARING PILOT PRO4 GRAM.—Section 542(b) of the Housing and Community

5 Development Act of 1992 (12 U.S.C. 1707 note) is

6 amended—

7 (1) by striking paragraphs (1) and (2) and in8 serting the following new paragraphs:

9 ‘‘(1) IN GENERAL.—The Secretary shall carry

10 out a pilot program in conjunction with qualified

11 participating entities to determine the effectiveness

12 of Federal credit enhancement for loans for afford13 able multifamily housing through a system of risk14 sharing agreements with such entitled.

15 ‘‘(2) PROGRAM REQUIREMENTS.—

16 ‘‘(A) IN GENERAL.—In carrying out the

17 pilot program under this subsection, the Sec18 retary shall enter into risk-sharing agreements

19 with qualified participating entities.

20 ‘‘(B) MORTGAGE INSURANCE AND REIN21 SURANCE.—Agreements under subparagraph

22 (A) may provide for (i) insurance through the

23 Federal Housing Administration of loans for af24 fordable multifamily housing originated by or

25 through, or purchased by, qualified participat-
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1 ing entities, and (ii) reinsurance, including rein2 surance of pools of loans, on affordable multi3 family housing. In entering into risk-sharing

4 agreements under this subsection covering

5 mortgages, the Secretary may give preference to

6 mortgages that are not already in the portfolios

7 of qualified participating entities.

8 ‘‘(C) RISK APPORTIONMENT.—Agreements

9 entered into under this subsection between the

10 Secretary and a qualified participating entity

11 shall specify the percentage of loss that each of

12 the parties to the agreement will assume in the

13 event of default of the insured or reinsured

14 multifamily mortgage. Such agreements shall

15 specify that the qualified participating entity

16 and the Secretary shall share any loss in ac17 cordance with the risk-sharing agreement.

18 ‘‘(D) REIMBURSEMENT CAPACITY.—Agree19 ments entered into under this subsection be20 tween the Secretary and a qualified participat21 ing entity shall provide evidence acceptable to

22 the Secretary of the capacity of such entity to

23 fulfill any reimbursement obligations made pur24 suant to this subsection. Evidence of such ca-
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1 pacity which may be considered by the Sec2 retary may include—

3 ‘‘(i) a pledge of the full faith and

4 credit of a qualified participating entity to

5 fulfill any obligations entered into by the

6 entity;

7 ‘‘(ii) reserves pledged or otherwise re8 stricted by the qualified participating en9 tity in an amount equal to an agreed upon

10 percentage of the loss assumed by the en11 tity under subparagraph (C);

12 ‘‘(iii) funds pledged through a State

13 or local guarantee fund; or

14 ‘‘(iv) any other form of evidence mu15 tually agreed upon by the Secretary and

16 the qualified participating entity.

17 ‘‘(E) UNDERWRITING STANDARDS.—The

18 Secretary shall allow any qualified participating

19 entity to use its own underwriting standards

20 and loan terms and conditions for purposes of

21 underwriting loans to be insured under this

22 subsection, except as provided in this section,

23 without further review by the Secretary, except

24 that the Secretary may impose additional un25 derwriting criteria and loan terms and condi-
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•HR 3838 SC

1 tions for contractual agreements where the Sec2 retary retains more than 50 percent of the risk

3 of loss. Any financing permitted on property in4 sured under this subsection other than the first

5 mortgage shall be expressly subordinate to the

6 insured mortgage.

7 ‘‘(F) AUTHORITY OF SECRETARY.—The

8 Secretary, upon request of a qualified partici9 pating entity, may insure or reinsure and make

10 commitments to insure or reinsure under this

11 section any mortgage, advance, loan, or pool of

12 mortgages otherwise eligible under this section,

13 pursuant to a risk-sharing agreement providing

14 that the qualified participating entity will carry

15 out (under a delegation or otherwise, and with

16 or without compensation, but subject to audit,

17 exception, or review requirements) such credit

18 approval, appraisal, inspection, issuance of com19 mitments, approval of insurance of advances,

20 cost certification, servicing, property disposi21 tion, or other functions as the Secretary shall

22 approve as consistent with the purpose of this

23 section. All appraisals of property for mortgage

24 insurance under this section shall be completed

25 by a Certified General Appraiser in accordance
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1 with the Uniform Standards of Professional Ap2 praisal Practice.

3 ‘‘(G) DISCLOSURE OF RECORDS.—Quali4 fied participating entities shall make available

5 to the Secretary or the Secretary’s designee, at

6 the Secretary’s request, such financial and

7 other records as the Secretary deems necessary

8 for purposes of review and monitoring for the

9 program under this section.

10 ‘‘(H) INELIGIBILITY OF HOUSING FOR

11 TRANSIENT OR HOTEL PURPOSES.—Notwith12 standing any other provision of this section, no

13 new, existing, or rehabilitated multifamily hous14 ing with respect to which a mortgage is insured

15 or reinsured under this subsection shall be op16 erated for transient or hotel purposes. For pur17 poses of this paragraph, the term ‘rental for

18 transient or hotel purposes’ shall have such

19 meaning as prescribed by the Secretary, except

20 that rental for any period less than 30 days

21 shall constitute rental for such purposes.’’;

22 (2) in paragraph (4), by striking ‘‘financial in23 stitutions and entities to be eligible to enter into re24 insurance agreements’’ and inserting ‘‘eligibility
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1 under this subsection of qualified participating enti2 ties’’;

3 (3) in the first sentence of paragraph (5), by

4 striking ‘‘1993 and 1994’’ and inserting ‘‘1995 and

5 1996’’;

6 (4) by striking paragraph (8) and inserting the

7 following new paragraph:

8 ‘‘(11) IMPLEMENTATION.—The Secretary shall

9 take any administrative actions necessary to initiate

10 the pilot program under this subsection.’’; and

11 (5) by inserting after paragraph (7) the follow12 ing new paragraphs:

13 ‘‘(8) PROHIBITION ON GINNIE MAE

14 SECURITIZATION.—The Government National Mort15 gage Association shall not securitize any multifamily

16 loans insured or reinsured under this subsection.

17 ‘‘(9) QUALIFICATION AS AFFORDABLE HOUS18 ING.—Multifamily housing securing loans insured or

19 reinsured under this subsection shall qualify as af20 fordable only if the housing is occupied by families

21 and bears rents not greater than the gross rent for

22 rent-restricted residential units as determined under

23 section 42(g) of the Internal Revenue Code of 1986.

24 ‘‘(10) CERTIFICATION OF SUBSIDY LAYERING

25 COMPLIANCE.—In the case of projects allocated a
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1 low-income housing tax credit pursuant to section 42

2 of the Internal Revenue Code of 1986, the require3 ments of section 102(d) of the Department of Hous4 ing and Urban Development Reform Act of 1989

5 may be satisfied in connection with a commitment to

6 insure a mortgage under this subsection by a certifi7 cation by a housing credit agency (including an en8 tity established by a State that provides mortgage

9 insurance) to the Secretary that the combination of

10 assistance within the jurisdiction of the Secretary

11 and other government assistance provided in connec12 tion with a property for which a mortgage is to be

13 insured shall not be any greater than is necessary to

14 provide affordable housing.’’.

15 (c) AMENDMENTS TO HOUSING FINANCE AGENCY

16 PILOT PROGRAM.—Section 542(c) of the Housing and

17 Community Development Act of 1992 (12 U.S.C. 1707

18 note) is amended—

19 (1) in paragraph (1), by inserting after ‘‘quali20 fied housing finance agencies’’ the following: ‘‘(in21 cluding entities established by States that provide

22 mortgage insurance)’’;

23 (2) in paragraph (2)—

24 (A) in subparagraph (C), by striking the

25 last sentence and inserting the following: ‘‘Such
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•HR 3838 SC

1 agreements shall specify that the qualified

2 housing finance agency and the Secretary shall

3 share any loss in accordance with the risk-shar4 ing agreement.’’;

5 (B) in subparagraph (E), by adding at the

6 end the following new sentence: ‘‘Any financing

7 permitted on property insured under this sub8 section other than the first mortgage shall be

9 expressly subordinate to the insured mort10 gage.’’; and

11 (C) by adding at the end the following new

12 subparagraph:

13 ‘‘(F) DISCLOSURE OF RECORDS.—Quali14 fied housing finance agencies shall make avail15 able to the Secretary such financial and other

16 records as the Secretary deems necessary for

17 program review and monitoring purposes.’’;

18 (3) in paragraph (7)—

19 (A) by striking ‘‘very low-income’’; and

20 (B) by striking ‘‘42(g)(2)’’ and inserting

21 ‘‘42(g)’’;

22 (4) by redesignating paragraph (8) as para23 graph (9); and

24 (5) by inserting after paragraph (7) the follow25 ing new paragraph:
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•HR 3838 SC

1 ‘‘(8) ENVIRONMENTAL AND OTHER REVIEWS.—

2 ‘‘(A) ENVIRONMENTAL REVIEWS.—

3 ‘‘(i) IN GENERAL.—(I) In order to en4 sure that the policies of the National Envi5 ronmental Policy Act of 1969 and other

6 provisions of law which further the pur7 poses of such Act (as specified in regula8 tions issued by the Secretary) are most ef9 fectively implemented in connection with

10 the insurance of mortgages under para11 graph (2) and to assure to the public

12 undiminished protection of the environ13 ment, the Secretary, in lieu of the environ14 mental protection procedures otherwise ap15 plicable, may under such regulations pro16 vide for agreements to endorse for insur17 ance mortgages under paragraph (2) upon

18 the request of a qualified housing finance

19 agency under this subsection if the State

20 or unit of general local government, as des21 ignated by the Secretary in accordance

22 with regulations, assumes all of the respon23 sibilities for environmental review, deci24 sionmaking, and action pursuant to such

25 Act, and such other provisions of law as
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1 the regulations of the Secretary specify,

2 that would otherwise apply to the Sec3 retary with respect to the insurance of

4 mortgages on particular properties.

5 ‘‘(II) The Secretary shall issue regula6 tions to carry out this subparagraph only

7 after consultation with the Council on En8 vironmental Quality. Such regulations

9 shall, among other matters, provide (aa)

10 for the monitoring of the performance of

11 environmental reviews under this subpara12 graph, (bb) in the discretion of the Sec13 retary, for the provision or facilitation of

14 training for the performance of such re15 views, and (cc) in the discretion of the Sec16 retary, for the suspension or termination of

17 the assumption under subclause (I). The

18 Secretary’s duty under the preceding sen19 tence shall not be construed to limit or re20 duce any responsibility assumed by a State

21 or unit of general local government with

22 respect to any particular property under

23 subclause (I).

24 ‘‘(ii) PROCEDURE.—Where the provi25 sions authorized by this paragraph apply,
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1 the Secretary shall approve a mortgage for

2 the provision of mortgage insurance only if

3 the qualified housing finance agency sub4 mits to the Secretary a request for such

5 approval—

6 ‘‘(I) not less than 15 days prior

7 to such approval;

8 ‘‘(II) prior to any approval, com9 mitment, or endorsement of mortgage

10 insurance on the property on behalf of

11 the Secretary; and

12 ‘‘(III) prior to any commitment

13 by the qualified housing finance agen14 cy to provide financing under the risk15 sharing agreement with respect to the

16 property.

17 The request for approval shall be accom18 panied by a certification of the State or

19 unit of general local government that

20 meets the requirements of clause (iii). Ap21 proval by the Secretary of any such certifi22 cation shall be deemed to satisfy the Sec23 retary’s responsibilities under the National

24 Environmental Policy Act of 1969 and

25 such other provisions of law as the regula-
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•HR 3838 SC

1 tions of the Secretary specify insofar as

2 such responsibilities relate to the provision

3 of mortgage insurance on the property that

4 is covered by such certification.

5 ‘‘(iii) CERTIFICATION.—A certification

6 under the procedures authorized by this

7 paragraph shall—

8 ‘‘(I) be in a form acceptable to

9 the Secretary;

10 ‘‘(II) be executed by the chief ex11 ecutive officer or other officer of the

12 State or unit of general local govern13 ment who qualifies under regulations

14 of the Secretary;

15 ‘‘(III) specify that the State or

16 unit of general local government

17 under this section has fully carried

18 out its responsibilities as described

19 under clause (i); and

20 ‘‘(IV) specify that the certifying

21 officer consents to assume the status

22 of a responsible Federal official under

23 the National Environmental Policy

24 Act of 1969 and each provision of law

25 specified in regulations issued by the
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1 Secretary insofar as the provisions of

2 such Act or other such provision of

3 law apply pursuant to clause (i), and

4 is authorized and consents on behalf

5 of the State or unit of general local

6 government and himself or herself to

7 accept the jurisdiction of the Federal

8 courts for the purpose of enforcement

9 of the responsibilities as such an offi10 cial.

11 ‘‘(iv) APPROVAL BY STATES.—In

12 cases where a unit of general local govern13 ment carries out the responsibilities de14 scribed under clause (i), the Secretary may

15 permit the State to perform those actions

16 of the Secretary described in clause (ii)

17 and the performance of such actions by the

18 State, where permitted by the Secretary,

19 shall be deemed to satisfy the Secretary’s

20 responsibilities referred to in the third sen21 tence of clause (ii).

22 ‘‘(B) LEAD-BASED PAINT POISONING PRE23 VENTION.—In carrying out the requirements of

24 section 302 of the Lead-Based Paint Poisoning

25 Prevention Act, the Secretary may provide by
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1 regulation for the assumption of all or part of

2 the Secretary’s duties under such Act by quali3 fied housing finance agencies, for purposes of

4 this section.

5 ‘‘(C) CERTIFICATION OF SUBSIDY

6 LAYERING COMPLIANCE.—In the case of

7 projects allocated a low-income housing tax

8 credit pursuant to section 42 of the Internal

9 Revenue Code of 1986, the requirements of sec10 tion 102(d) of the Department of Housing and

11 Urban Development Reform Act of 1989 may

12 be satisfied in connection with a commitment to

13 insure a mortgage under this subsection by a

14 certification by a housing credit agency (includ15 ing an entity established by a State that pro16 vides mortgage insurance) to the Secretary that

17 the combination of assistance within the juris18 diction of the Secretary and other government

19 assistance provided in connection with a prop20 erty for which a mortgage is to be insured shall

21 not be any greater than is necessary to provide

22 affordable housing.’’.

23 (d) DEFINITIONS.—Section 544 of the Housing and

24 Community Development Act of 1992 (12 U.S.C. 1707

25 note) is amended—
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1 (1) by striking paragraph (1) and inserting the

2 following new paragraph:

3 ‘‘(1) The term ‘multifamily housing’ means

4 housing accommodations on the mortgaged property

5 that are designed principally for residential use, con6 form to standards satisfactory to the Secretary, and

7 consist of not less than 5 rental units on 1 site.

8 Such units may be detached, semidetached, row

9 house, or multifamily structures.’’;

10 (2) by redesignating paragraphs (1) (as so

11 amended), (2), (3), and (4) as paragraphs (3), (4),

12 (6), and (7), respectively;

13 (3) by inserting before paragraph (3) (as so re14 designated) the following new paragraphs:

15 ‘‘(1) The term ‘first mortgage’ means a single

16 first lien that is given to secure advances on, or the

17 unpaid purchase price of, real estate, under the laws

18 of the State in which the real estate is located, to19 gether with the credit instrument, if any, secured

20 thereby.

21 ‘‘(2) The term ‘mortgage’ means a first mort22 gage on real estate that is—

23 ‘‘(A) owned in fee simple; or

24 ‘‘(B) on a leasehold—
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1 ‘‘(i) under a lease for not less than 99

2 years that is renewable; or

3 ‘‘(ii) under a lease having a period of

4 not less than 10 years to run beyond the

5 maturity of the mortgage.’’;

6 (4) by inserting after paragraph (4) (as so re7 designated) the following new paragraph:

8 ‘‘(5) The term ‘qualified participating entity’

9 means an entity approved by the Secretary for par10 ticipation in the pilot program under this subsection,

11 which may include—

12 ‘‘(A) the Federal National Mortgage Asso13 ciation;

14 ‘‘(B) the Federal Home Loan Mortgage

15 Corporation;

16 ‘‘(C) housing finance agencies; and

17 ‘‘(D) the Federal Housing Finance

18 Board.’’; and

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

20 paragraph:

21 ‘‘(8) The terms ‘unit of general local govern22 ment’ and ‘State’ have the meanings given such

23 terms in section 102(a) of the Housing and Commu24 nity Development Act of 1974.’’.
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1 (e) NATIONAL INTERAGENCY TASK FORCE ON MUL2 TIFAMILY HOUSING.—The first sentence of section 543(h)

3 of the Housing and Community Development Act of 1992

4 (12 U.S.C. 1707 note) is amended to read as follows:

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

6 section $6,439,560 for fiscal year 1995 and $6,632,747

7 for fiscal year 1996.’’.

8 SEC. 405. INDIAN HOUSING LOAN GUARANTEES.

9 (a) LIMITATION ON OUTSTANDING AGGREGATE

10 PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous11 ing and Community Development Act of 1992 (12 U.S.C.

12 1515z–13a(i)(C)(5)) is amended by striking ‘‘fiscal years

13 1993 and 1994’’ and inserting ‘‘fiscal years 1995 and

14 1996’’.

15 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR16 ANTEE FUND.—Section 184(i)(7) of the Housing and

17 Community Development Act of 1992 (12 U.S.C. 1515z–

18 13a(i)(7)) is amended to read as follows:

19 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

20 There are authorized to be appropriated to the

21 Guarantee Fund to carry out this section

22 $50,000,000 for fiscal year 1995 and $50,000,000

23 for fiscal year 1996.’’.
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1 Subtitle B—Multifamily Housing

2 Property Disposition

3 SEC. 431. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Multifamily Hous5 ing Property Disposition Reform Act’’.

6 SEC. 432. DISPOSITION OF MULTIFAMILY HOUSING

7 PROJECTS OWNED BY HUD.

8 (a) CONGRESSIONAL FINDINGS.—The Congress finds

9 that—

10 (1) the portfolio of multifamily housing project

11 mortgages insured by the FHA is severely troubled

12 and at risk of default, requiring the Secretary to in13 crease loss reserves from $5,500,000,000 in 1991 to

14 $11,900,000,000 in 1992 to cover estimated future

15 losses;

16 (2) the inventory of multifamily housing

17 projects owned by the Secretary has more than tri18 pled since 1989;

19 (3) the cost to the Federal Government of own20 ing and maintaining multifamily housing projects es21 calated to approximately $250,000,000 in fiscal year

22 1992;

23 (4) the inventory of multifamily housing

24 projects subject to mortgages held by the Secretary

25 has increased dramatically, to more than 2,400
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1 mortgages, and approximately half of these mort2 gages, with over 230,000 units, are delinquent;

3 (5) the inventory of insured and formerly in4 sured multifamily housing projects is rapidly deterio5 rating, endangering tenants and neighborhoods;

6 (6) many of the more than 5 million families

7 having a critical need for housing that is affordable

8 and habitable could benefit from the disposition of

9 projects in the inventory owned by the Secretary;

10 and

11 (7) the current statutory framework governing

12 the disposition of multifamily housing projects effec13 tively impedes the Government’s ability to dispose of

14 projects, protect tenants, and ensure that projects

15 are maintained over time.

16 (b) MANAGEMENT AND DISPOSITION OF MULTIFAM17 ILY HOUSING PROJECTS.—Section 203 of the Housing

18 and Community Development Amendments of 1978 (12

19 U.S.C. 1701z–11) is amended to read as follows:

20 ‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM21 ILY HOUSING PROJECTS.

22 ‘‘(a) GOALS.—The Secretary of Housing and Urban

23 Development shall manage or dispose of multifamily hous24 ing projects that are owned by the Secretary or that are
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1 subject to a mortgage held by the Secretary in a manner

2 consistent with this section that—

3 ‘‘(1) is consistent with the National Housing

4 Act;

5 ‘‘(2) will, in the least costly fashion among rea6 sonable available alternatives, preserve the housing

7 as available to and affordable by low-income fami8 lies;

9 ‘‘(3) will protect the financial interests of the

10 Federal Government; and

11 ‘‘(4) will, in the least costly fashion among rea12 sonable available alternatives, further the goals of—

13 ‘‘(A) preserving and revitalizing residential

14 neighborhoods;

15 ‘‘(B) maintaining existing housing stock in

16 a decent, safe, and sanitary condition;

17 ‘‘(C) minimizing the involuntary displace18 ment of tenants;

19 ‘‘(D) maintaining housing for the purpose

20 of providing rental housing, cooperative hous21 ing, and homeownership opportunities for low22 income persons; and

23 ‘‘(E) minimizing the need to demolish mul24 tifamily housing projects.
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1 The Secretary, in determining the manner in which a

2 project is to be managed or disposed of, may balance com3 peting goals relating to individual projects in a manner

4 that will further the purposes of this section.

5 ‘‘(b) DEFINITIONS.—For purposes of this section:

6 ‘‘(1) MULTIFAMILY HOUSING PROJECT.—The

7 term ‘multifamily housing project’ means any multi8 family rental housing project which is, or prior to

9 acquisition by the Secretary was, assisted or insured

10 under the National Housing Act, or was subject to

11 a loan under section 202 of the Housing Act of

12 1959.

13 ‘‘(2) ASSISTED PROJECT.—The term ‘assisted

14 project’ means a multifamily housing project that,

15 immediately prior to the assignment of the mortgage

16 on such project to, or the acquisition of such mort17 gage by, the Secretary, was receiving any of the fol18 lowing types of assistance:

19 ‘‘(A) Rent supplement payments under sec20 tion 101 of the Housing and Urban Develop21 ment Act of 1965.

22 ‘‘(B) Additional assistance payments under

23 section 236(f)(2) of the National Housing Act.

24 ‘‘(C) Housing assistance payments made

25 under section 23 of the United States Housing
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1 Act of 1937 (as in effect before January 1,

2 1975).

3 ‘‘(D) Housing assistance payments made

4 under section 8 of the United States Housing

5 Act of 1937 (excluding payments made for ten6 ant-based assistance under section 8).

7 ‘‘(3) AFFORDABLE.—A unit shall be considered

8 affordable if—

9 ‘‘(A) for units occupied—

10 ‘‘(i) by very low-income families, the

11 rent does not exceed 30 percent of 50 per12 cent of the area median income, as deter13 mined by the Secretary, with adjustments

14 for smaller and larger families, except that

15 the Secretary may establish the rent based

16 on an amount higher or lower than 50 per17 cent of the median for the area on the

18 basis of the Secretary’s findings that such

19 variation is necessary because of prevailing

20 levels of construction costs or fair market

21 rents, or unusually high or low family in22 comes; and

23 ‘‘(ii) by low-income families other

24 than very low-income families, the rent

25 does not exceed 30 percent of 80 percent
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1 of the area median income, as determined

2 by the Secretary, except that the Secretary

3 may establish the rent based on an amount

4 higher or lower than 80 percent of the me5 dian for the area on the basis of the Sec6 retary’s findings that such variation is nec7 essary because of prevailing levels of con8 struction costs or fair market rents, or un9 usually high or low family incomes; or

10 ‘‘(B) assistance is provided under section 8

11 of the United States Housing Act of 1937 for

12 the unit or on behalf of the family residing in

13 the unit.

14 ‘‘(4) DATE OF DISPOSITION.—The term ‘date of

15 disposition’ means, with respect to a multifamily

16 housing project acquired pursuant to this section by

17 a purchaser other than the Secretary at foreclosure

18 or after sale by the Secretary, the date on which the

19 project is acquired by the purchaser.

20 ‘‘(5) LOW-INCOME FAMILIES AND VERY LOW-IN21 COME FAMILIES.—The terms ‘low-income families’

22 and ‘very low-income families’ shall have the mean23 ings given the terms in section 3(b) of the United

24 States Housing Act of 1937.
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1 ‘‘(6) PREEXISTING TENANT.—The term ‘pre2 existing tenant’ means, with respect to a multifamily

3 housing project acquired pursuant to this section by

4 a purchaser other than the Secretary at foreclosure

5 or after sale by the Secretary, a family that resides

6 in a unit in the project immediately before the date

7 of disposition of the project.

8 ‘‘(7) MARKET AREA.—The term ‘market area’

9 means a market area determined by the Secretary

10 for purposes of establishing fair market rentals

11 under section 8(e) of the United States Housing Act

12 of 1937.

13 ‘‘(8) SECRETARY.—The term ‘Secretary’ means

14 the Secretary of Housing and Urban Development.

15 ‘‘(c) MANAGEMENT OR DISPOSITION OF

16 PROJECTS.—

17 ‘‘(1) DISPOSITION TO PURCHASERS.—The Sec18 retary may, in carrying out this section, dispose of

19 a multifamily housing project owned by the Sec20 retary on a negotiated, competitive bid, or other

21 basis, on such terms as the Secretary deems appro22 priate considering the low-income character of the

23 project and the market area in which the project is

24 located and the requirements of this section, to a
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1 purchaser determined by the Secretary to be capable

2 of—

3 ‘‘(A) satisfying the conditions of the dis4 position;

5 ‘‘(B) implementing a sound financial and

6 physical management program that is designed

7 to enable the project to meet anticipated oper8 ating and repair expenses to ensure that the

9 project will remain in decent, safe, and sanitary

10 condition;

11 ‘‘(C) responding to the needs of the ten12 ants and working cooperatively with tenant or13 ganizations;

14 ‘‘(D) providing adequate organizational,

15 staff, and financial resources to the project; and

16 ‘‘(E) meeting such other requirements as

17 the Secretary may determine.

18 ‘‘(2) CONTRACTING FOR MANAGEMENT SERV19 ICES.—The Secretary may, in carrying out this sec20 tion—

21 ‘‘(A) contract for management services for

22 a multifamily housing project that is owned by

23 the Secretary (or for which the Secretary is

24 mortgagee in possession), on a negotiated, com25 petitive bid, or other basis at a price deter-
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1 mined by the Secretary to be reasonable, with

2 a manager the Secretary has determined is ca3 pable of—

4 ‘‘(i) implementing a sound financial

5 and physical management program that is

6 designed to enable the project to meet an7 ticipated operating and maintenance ex8 penses to ensure that the project will re9 main in decent, safe, and sanitary condi10 tion;

11 ‘‘(ii) responding to the needs of the

12 tenants and working cooperatively with

13 tenant organizations;

14 ‘‘(iii) providing adequate organiza15 tional, staff, and other resources to imple16 ment a management program determined

17 by the Secretary; and

18 ‘‘(iv) meeting such other requirements

19 as the Secretary may determine;

20 ‘‘(B) require the owner of a multifamily

21 housing project that is subject to a mortgage

22 held by the Secretary to contract for manage23 ment services for the project in the manner de24 scribed in subparagraph (A); and
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1 ‘‘(C) contract for management of such

2 projects with nonprofit organizations and public

3 agencies, including public housing authorities.

4 ‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—

5 ‘‘(1) HOUSING PROJECTS OWNED BY THE SEC6 RETARY.—In the case of multifamily housing

7 projects that are owned by the Secretary (or for

8 which the Secretary is mortgagee in possession), the

9 Secretary shall—

10 ‘‘(A) to the greatest extent possible, main11 tain all such occupied projects in a decent, safe,

12 and sanitary condition;

13 ‘‘(B) to the greatest extent possible, main14 tain full occupancy in all such projects; and

15 ‘‘(C) maintain all such projects for pur16 poses of providing rental or cooperative hous17 ing.

18 ‘‘(2) HOUSING PROJECTS SUBJECT TO A MORT19 GAGE HELD BY SECRETARY.—In the case of any

20 multifamily housing project that is subject to a

21 mortgage held by the Secretary, the Secretary shall

22 require the owner of the project to carry out the re23 quirements of paragraph (1).

24 ‘‘(3) HOUSING STANDARDS.—In disposing of

25 any multifamily housing project under this section,
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1 the Secretary shall enter into an agreement with the

2 purchaser under which the purchaser agrees that the

3 project will be rehabilitated so that it is in compli4 ance with, and will be maintained in compliance

5 with, any standards under applicable State or local

6 laws, rules, ordinances, or regulations relating to the

7 physical condition of the housing and any such

8 standards established by the Secretary.

9 ‘‘(e) REQUIRED DISPOSITION ASSISTANCE FOR AS10 SISTED PROJECTS.—Except as provided in subsection (f),

11 in disposing of any assisted project to a purchaser other

12 than the Secretary at foreclosure or after sale by the Sec13 retary, the Secretary shall enter into a contract under sec14 tion 8 of the United States Housing Act of 1937 (to the

15 extent budget authority is available) with the owner of the

16 assisted project to provide project-based assistance under

17 such section for the project, subject to the following re18 quirements:

19 ‘‘(1) NUMBER OF UNITS ASSISTED.—The con20 tract shall be sufficient to assist at least all units in

21 the assisted project covered by an assistance con22 tract under any of the authorities referred to in sub23 section (b)(2) immediately before the date of disposi24 tion of the project.
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1 ‘‘(2) VACANCIES.—The contract shall provide

2 that, when a vacancy occurs in any unit in the as3 sisted project requiring project-based rental assist4 ance pursuant to this subsection that is occupied by

5 a family who is not eligible for assistance under such

6 section 8, the owner shall lease the available unit to

7 a family eligible for assistance under such section 8.

8 ‘‘(f) OPTION TO SUBSTITUTE TENANT-BASED DIS9 POSITION ASSISTANCE FOR ASSISTED PROJECTS IN SOFT

10 MARKETS.—

11 ‘‘(1) AUTHORITY.—In disposing of any assisted

12 project that is located in a market area in which, in

13 the determination of the Secretary, an adequate sup14 ply of habitable, affordable housing for very low-in15 come families and other low-income families is avail16 able, the Secretary may, for any unit in the assisted

17 project otherwise required to receive assistance pur18 suant to subsection (e), provide tenant-based assist19 ance under section 8 of the United States Housing

20 Act of 1937 on behalf of one low-income family in21 stead of providing project-based assistance for the

22 unit.

23 ‘‘(2) FAMILY ASSISTED.—Notwithstanding any

24 other provision of law, the tenant-based assistance

25 provided under this subsection to replace project-
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1 based assistance otherwise required for a unit in an

2 assisted project shall be used on behalf of the family

3 that is the preexisting tenant of such unit, during

4 the period beginning upon the availability of such

5 assistance and ending upon the earlier of (A) the ex6 piration of the term of the assistance contract for

7 the tenant-based assistance, or (B) the time at

8 which such family first fails to qualify for such as9 sistance. If, pursuant to the preceding sentence,

10 such assistance ceases to be used on behalf of the

11 preexisting tenant family of the unit, the public

12 housing agency administering such assistance may

13 make the assistance available to another family

14 qualified to receive such assistance from the agency.

15 ‘‘(3) ASSISTANCE CONTRACT.—Tenant-based

16 assistance under this subsection shall be provided

17 pursuant to an annual contribution contract entered

18 into by the Secretary and the appropriate public

19 housing agency.

20 ‘‘(4) APPLICABILITY OF AVAILABILITY AND AF21 FORDABILITY RESTRICTIONS.—The requirements of

22 subsection (g) shall apply to any unit in an assisted

23 project for which project-based assistance otherwise

24 required under subsection (e) has been replaced pur-
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1 suant to this subsection by providing tenant-based

2 assistance.

3 ‘‘(g) REQUIRED AVAILABILITY AND AFFORDABILITY

4 RESTRICTIONS FOR UNASSISTED UNITS.—

5 ‘‘(1) IN GENERAL.—In disposing of any multi6 family housing project to a purchaser other than the

7 Secretary at foreclosure or after sale by the Sec8 retary, the Secretary shall require the purchaser of

9 the project to establish use or rent restrictions for

10 the project to ensure compliance, during the remain11 ing useful life of the project (as defined by the Sec12 retary), with the following requirements:

13 ‘‘(A) LOW-INCOME USE.—Subject to sub14 paragraph (B), any unit in the project that

15 does not receive project-based assistance under

16 subsection (e) shall be made available to only

17 low-income families and shall be affordable to

18 such families.

19 ‘‘(B) VERY LOW-INCOME UNITS.—In the

20 project, not less than 40 percent of the units

21 referred to in subparagraph (A) shall be made

22 available to only very low-income families and

23 shall be affordable to such families.

24 ‘‘(C) RENT RESTRICTIONS FOR UNAS25 SISTED VERY LOW-INCOME FAMILIES.—Any un-
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1 assisted very low-income family who is a pre2 existing tenant of the project may not pay as

3 rent for a unit in the project an amount in ex4 cess of 30 percent of the adjusted income of the

5 family at any time during the period beginning

6 upon the date of disposition of the project and

7 ending upon the time at which the family first

8 fails to qualify as a very low-income family.

9 ‘‘(D) PHASE-IN OF RENT INCREASES.—If

10 the disposition under this section of any multi11 family housing project results in any rent in12 crease for any unassisted very low-income fam13 ily who is a preexisting tenant of the project

14 and is paying less than 30 percent of the ad15 justed income of the family for rent, such rent

16 increases shall be phased in equally over a pe17 riod of not less than 3 years.

18 ‘‘(2) ASSISTANCE FOR VERY LOW-INCOME TEN19 ANTS.—If, as a result of actions taken pursuant to

20 this subsection, the rent charged to any very low-in21 come family residing in a unit in the project for

22 which project-based assistance under subsection (e)

23 is not provided exceeds the amount payable as rent

24 under paragraph (1)(C), the Secretary shall provide
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1 assistance under section 8 of such Act on behalf of

2 such family.

3 ‘‘(3) DEFINITION OF ‘UNASSISTED VERY LOW4 INCOME FAMILY’.—For purposes of this subsection,

5 the term ‘unassisted very low-income family’ means

6 a very low-income family who resides in a unit that

7 is not assisted with project-based assistance under

8 section 8 of the United States Housing Act of 1937

9 and on whose behalf tenant-based assistance under

10 such section is not provided.

11 ‘‘(h) DISCRETIONARY ACTIONS AND ASSISTANCE.—

12 In disposing of any multifamily housing project under this

13 section, the Secretary may take, in combination with the

14 actions required under subsections (e), (f), and (g), one

15 or more of the following actions:

16 ‘‘(1) DISCOUNTED SALES PRICE.—In accord17 ance with the authority provided under the National

18 Housing Act, the Secretary may reduce the selling

19 price of the project. Such reduced sales price shall

20 be reasonably related to the intended use of the

21 property after sale, any rehabilitation requirements

22 for the project, the rents for units in the project that

23 can be supported by the market, the amount of rent24 al assistance available for the project under section
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1 8 of the United States Housing Act of 1937, and

2 the occupancy profile of the project.

3 ‘‘(2) SHORT-TERM LOANS.—The Secretary may

4 provide a short-term loan to facilitate the sale of a

5 multifamily housing project if—

6 ‘‘(A) the loan has a term of not more than

7 5 years;

8 ‘‘(B) the Secretary determines, based upon

9 documentation provided to the Secretary, that

10 the borrower has obtained a commitment of

11 permanent financing to replace the short-term

12 loan from a lender who meets standards estab13 lished by the Secretary; and

14 ‘‘(C) the terms of the loan are consistent

15 with prevailing practices in the marketplace or

16 the provision of the loan results in no cost to

17 the Government, as defined in section 502 of

18 the Congressional Budget Act of 1974.

19 To the extent or in such amounts as are provided in

20 appropriation Acts, during each of fiscal years 1995

21 and 1996 the Secretary may enter into loan commit22 ments under this paragraph and make loans under

23 this paragraph with an aggregate principal amount

24 of $50,000,000. There are authorized to be appro25 priated such sums as may be necessary to cover any
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1 costs (as such term is defined in section 502 of the

2 Congressional Budget Act of 1974) of loan obliga3 tions entered into pursuant to this paragraph.

4 ‘‘(3) UP-FRONT GRANTS AND LOANS.—

5 ‘‘(A) IN GENERAL.—The Secretary may

6 utilize the budget authority provided for con7 tracts issued under this section for project8 based assistance under section 8 of the United

9 States Housing Act of 1937 to (in addition to

10 providing project-based section 8 rental assist11 ance)—

12 ‘‘(i) provide up-front grants and loans

13 to nonprofit organizations or public agen14 cies (including public housing agencies) for

15 the necessary cost of rehabilitation and

16 other related development costs; or

17 ‘‘(ii) pay any cost to the Government,

18 as defined in section 502 of the Congres19 sional Budget Act of 1974, for loans made

20 pursuant to paragraph (3) of this sub21 section.

22 ‘‘(B) APPLICABILITY OF USE RESTRIC23 TIONS.—The requirements under subsection (g)

24 regarding units not receiving project-based as25 sistance under subsection (e) shall apply with
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1 respect to any units in a project assisted under

2 this paragraph that otherwise would have re3 ceived project-based assistance under section 8

4 of the United States Housing Act of 1937.

5 ‘‘(C) AUTHORIZATION OF APPROPRIA6 TIONS.—There is authorized to be appropriated

7 for grants and loans under this paragraph

8 $250,000,000 for each of fiscal years 1995 and

9 1996, of which such sums as may be necessary

10 shall be available in each such fiscal year for

11 the costs (as such term is defined in section

12 502 of the Congressional Budget Act of 1974)

13 of such loans.

14 ‘‘(4) ALTERNATIVE USES.—

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

16 other provision of law, after providing notice to

17 and an opportunity to comment by preexisting

18 tenants, the Secretary may allow not more than

19 5 percent of the total number of units in multi20 family housing projects that are disposed of by

21 the Secretary during any single fiscal year to be

22 made available for—

23 ‘‘(i) uses (other than rental or cooper24 ative uses) that benefit the tenants of the

25 project, including low-income homeowner-
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1 ship opportunities, or in any particular

2 project, community space, office space for

3 tenant or housing-related service providers

4 or security programs, or small business

5 uses; or

6 ‘‘(ii) any other uses, if the Secretary

7 and the unit of general local government or

8 area-wide governing body determine that

9 such use will further fair housing, commu10 nity development, or neighborhood revital11 ization goals.

12 ‘‘(B) DISPLACEMENT PROTECTION.—The

13 Secretary may take actions under subparagraph

14 (A) only if—

15 ‘‘(i) tenant-based rental assistance

16 under section 8 of the United States Hous17 ing Act of 1937 is made available to each

18 eligible family residing in the project that

19 is displaced as a result of such actions; and

20 ‘‘(ii) the Secretary determines that

21 sufficient habitable, affordable rental hous22 ing is available in the market area in which

23 the project is located to allow use of such

24 assistance.
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1 ‘‘(5) TRANSFER FOR USE UNDER OTHER PRO2 GRAMS OF SECRETARY.—

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

4 other provision of this section, the Secretary

5 may transfer a multifamily housing project—

6 ‘‘(i) to a public housing agency for use

7 of the project as public housing; or

8 ‘‘(ii) to an entity eligible to own or op9 erate housing assisted under section 202 of

10 the Housing Act of 1959 or under section

11 811 of the Cranston-Gonzalez National Af12 fordable Housing Act for use as supportive

13 housing under either of such sections.

14 ‘‘(B) REQUIREMENTS FOR AGREEMENT.—

15 An agreement providing for the transfer of a

16 project described in subparagraph (A) shall—

17 ‘‘(i) contain such terms, conditions,

18 and limitations as the Secretary deter19 mines appropriate, including requirements

20 to ensure use of the project as public hous21 ing, supportive housing under section 202

22 of the Housing Act of 1959, or supportive

23 housing under section 811 of the Cran24 ston-Gonzalez National Affordable Housing

25 Act, as applicable; and
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1 ‘‘(ii) ensure that no tenant of the

2 project will be displaced as a result of ac3 tions taken under this paragraph.

4 ‘‘(i) CONTRACT REQUIREMENTS.—Contracts for

5 project-based rental assistance under section 8 of the

6 United States Housing Act of 1937 provided pursuant to

7 this section shall be subject to the following requirements:

8 ‘‘(1) CONTRACT TERM.—The contract shall

9 have a term of 15 years, except that—

10 ‘‘(A) the term may be less than 15 years

11 to the extent that the Secretary finds that,

12 based on the rental charges and financing for

13 the multifamily housing project to which the

14 contract relates, the financial viability of the

15 project can be maintained under a contract hav16 ing such a term;

17 ‘‘(B) to the extent that units receive

18 project-based assistance for a contract term of

19 less than 15 years, the Secretary shall require

20 that the amount of rent payable by tenants of

21 the project for such units shall not exceed the

22 amount payable for rent under section 3(a) of

23 the United States Housing Act of 1937 for a

24 period of at least 15 years; and
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1 ‘‘(C) the term may be less than 15 years

2 if such assistance is provided—

3 ‘‘(i) under a contract authorized

4 under section 6 of the HUD Demonstra5 tion Act of 1993; and

6 ‘‘(ii) pursuant to a disposition plan

7 under this section for a project that is de8 termined by the Secretary to be otherwise

9 in compliance with this section.

10 ‘‘(2) CONTRACT RENT.—The Secretary shall es11 tablish contract rents for section 8 project-based

12 rental contracts issued under this section at levels

13 that provide sufficient amounts for the necessary

14 costs of acquiring (if any), rehabilitating, and oper15 ating the multifamily housing project and do not ex16 ceed 144 percent of the existing housing fair market

17 rentals for the market area in which the project as18 sisted under the contract is located.

19 ‘‘(j) DISPOSITION PLAN.—

20 ‘‘(1) IN GENERAL.—Prior to the sale of a mul21 tifamily housing project that is owned by the Sec22 retary, the Secretary shall develop an initial disposi23 tion plan for the project that specifies the minimum

24 terms and conditions of the Secretary for disposition

25 of the project, the initial sales price that is accept-
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1 able to the Secretary, and the assistance that the

2 Secretary plans to make available to a prospective

3 purchaser in accordance with this section.

4 ‘‘(2) MARKET-WIDE PLANS.—In developing ini5 tial disposition plans under this subsection, the Sec6 retary shall coordinate the disposition of multifamily

7 housing projects located within the same market

8 area to the extent and in such manner as the Sec9 retary determines appropriate to carry out the goals

10 under subsection (a).

11 ‘‘(3) SALES PRICE.—The initial sales price shall

12 be reasonably related to the intended use of the

13 property after sale, any rehabilitation requirements

14 for the project, the rents for units in the project that

15 can be supported by the market, the amount of rent16 al assistance available for the project under section

17 8 of the United States Housing Act of 1937, and

18 the occupancy profile of the project.

19 ‘‘(4) COMMUNITY AND TENANT INPUT.—In car20 rying out this section, the Secretary shall develop

21 procedures—

22 ‘‘(A) to obtain appropriate and timely

23 input into disposition plans from officials of the

24 unit of general local government and any State

25 government affected, the community in which
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1 the project is situated, and the tenants of the

2 project; and

3 ‘‘(B) to facilitate, where feasible and ap4 propriate, the sale of multifamily housing

5 projects to existing tenant organizations with

6 demonstrated capacity, to public or nonprofit

7 entities that represent or are affiliated with ex8 isting tenant organizations, or to other public

9 or nonprofit entities.

10 ‘‘(5) TECHNICAL ASSISTANCE.—To carry out

11 the procedures developed under paragraph (4), the

12 Secretary may provide technical assistance, directly

13 or indirectly, and may use amounts available for

14 technical assistance under the Emergency Low In15 come Housing Preservation Act of 1987, subtitle C

16 of the Low-Income Housing Preservation and Resi17 dent Homeownership Act of 1990, subtitle B of title

18 IV of the Cranston-Gonzalez National Affordable

19 Housing Act, or this section, for the provision of

20 technical assistance under this paragraph. Recipients

21 of technical assistance funding under the provisions

22 referred to in this paragraph shall be permitted to

23 provide technical assistance to the extent of such

24 funding under any of such provisions or under this
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1 paragraph, notwithstanding the source of the fund2 ing.

3 ‘‘(k) RIGHT OF FIRST REFUSAL FOR LOCAL AND

4 STATE GOVERNMENT AGENCIES.—

5 ‘‘(1) NOTIFICATION OF ACQUISITION OF

6 TITLE.—Not later than 30 days after acquiring title

7 to a multifamily housing project, the Secretary shall

8 notify the unit of general local government (which,

9 for purposes of this subsection, shall include any

10 public housing agency) for the area in which the

11 project is located and the State agency or agencies

12 designated by the Governor of the State in which the

13 project is located of such acquisition.

14 ‘‘(2) RIGHT OF FIRST REFUSAL.—During the

15 period beginning upon acquisition of title to a multi16 family housing project and ending 45 days after

17 completion of notification under paragraph (1), the

18 Secretary may offer to sell and may sell the project

19 only to the unit of general local government or the

20 designated State agency.

21 ‘‘(3) EXPRESSION OF INTEREST.—The unit of

22 general local government or designated State agency

23 may submit to the Secretary a preliminary expres24 sion of interest in a project not later than 45 days

25 after receiving notification from the Secretary under
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1 paragraph (1) regarding the project. The Secretary

2 may take such actions as may be necessary to re3 quire the unit of general local government or des4 ignated State agency to substantiate such interest.

5 ‘‘(4) TIMELY EXPRESSION OF INTEREST.—If

6 the unit of general local government or designated

7 State agency has submitted an expression of interest

8 in a project before the expiration of the 45-day pe9 riod referred to in paragraph (3) and has substan10 tiated such interest if requested, the Secretary, upon

11 approval of a disposition plan for the project, shall—

12 ‘‘(A) notify the unit of general local gov13 ernment and designated State agency of the

14 terms and conditions of the disposition plan;

15 and

16 ‘‘(B) provide that, for 90 days after the

17 date of such notification, only the unit of gen18 eral local government or designated State agen19 cy may make an offer to purchase the project.

20 ‘‘(5) FAILURE TO TIMELY EXPRESS INTER21 EST.—If the unit of general local government or des22 ignated State agency does not timely express and, if

23 requested, substantiate interest in a project as pro24 vided in paragraph (4), the Secretary may offer the
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1 project for sale to any interested person or entity

2 upon approval of the disposition plan for the project.

3 ‘‘(6) ACCEPTANCE OF OFFERS.—If the unit of

4 general local government or designated State agency

5 timely expresses and, if requested, substantiates in6 terest in a project as provided in paragraph (4), the

7 Secretary shall accept an offer made by the unit of

8 general local government or designated State agency

9 during the 90-day period for the project under para10 graph (4)(B) that complies with the terms and con11 ditions of the disposition plan for the project. The

12 Secretary may accept an offer that does not comply

13 with the terms and conditions of the disposition plan

14 if the Secretary determines that the offer will fur15 ther the goals specified in subsection (a) by actions

16 that include extension of the duration of low-income

17 affordability restrictions or otherwise restructuring

18 the transaction in a manner that enhances the long19 term affordability for low-income persons. The Sec20 retary may reduce the initial sales price in exchange

21 for the extension of low-income affordability restric22 tions beyond the period of assistance contemplated

23 by the attachment of assistance pursuant to sub24 section (i)(1) and in order to facilitate affordable

25 rents.
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1 ‘‘(7) FAILURE TO SELL TO LOCAL OR STATE

2 GOVERNMENT AGENCY.—If the Secretary and the

3 unit of general local government or designated State

4 agency cannot reach agreement on an offer for pur5 chase of a project within the 90-day period for the

6 project under paragraph (4)(B), the Secretary may

7 offer the project for sale to the general public.

8 ‘‘(8) PURCHASE BY UNIT OF GENERAL LOCAL

9 GOVERNMENT OR DESIGNATED STATE AGENCY.—

10 Notwithstanding any other provision of law, a unit

11 of general local government (including a public hous12 ing agency) or designated State agency may pur13 chase a project in accordance with this subsection.

14 ‘‘(9) APPLICABILITY.—This subsection shall

15 apply to projects that are acquired on or after the

16 effective date of this subsection. With respect to

17 projects acquired before such effective date, the Sec18 retary may apply—

19 ‘‘(A) the requirements of paragraphs (2)

20 and (3) of section 203(e) (as in effect imme21 diately before the effective date of this sub22 section); or

23 ‘‘(B) the requirements of paragraphs (1)

24 through (7) of this subsection, if—
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1 ‘‘(i) the Secretary gives the unit of

2 general local government or designated

3 State agency 45 days to express interest in

4 the project; and

5 ‘‘(ii) the unit of general local govern6 ment or designated State agency expresses

7 interest in the project before the expiration

8 of the 45-day period, and substantiates

9 such interest if requested, within 90 days

10 from the date of notification of the terms

11 and conditions of the disposition plan to

12 make an offer to purchase the project.

13 ‘‘(10) TRANSFER BY LOCAL OR STATE GOVERN14 MENT AGENCY PURCHASERS.—The Secretary shall

15 permit units of general local government and des16 ignated State agencies to transfer multifamily hous17 ing projects acquired under the right of first refusal

18 under this subsection to a private entity, but only if

19 the local government or State agency identifies—

20 ‘‘(A) in the offer to purchase the project

21 accepted by the Secretary under this subsection,

22 whether it may transfer the project after acqui23 sition; and

24 ‘‘(B) before the project is transferred, the

25 date of the transfer and the transferee.
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1 ‘‘(l) DISPLACEMENT OF TENANTS AND RELOCATION

2 ASSISTANCE.—

3 ‘‘(1) IN GENERAL.—Whenever tenants will be

4 displaced as a result of the disposition of, or repairs

5 to, a multifamily housing project that is owned by

6 the Secretary (or for which the Secretary is mortga7 gee in possession), the Secretary shall identify ten8 ants who will be displaced and shall notify all such

9 tenants of their pending displacement and of any re10 location assistance that may be available. In the case

11 of the displacement of tenants of a multifamily hous12 ing project that is not owned by the Secretary (and

13 for which the Secretary is not mortgagee in posses14 sion), the Secretary shall require the owner of the

15 project to carry out the requirements of this para16 graph.

17 ‘‘(2) RIGHTS OF DISPLACED TENANTS.—The

18 Secretary shall ensure for any such tenant (who con19 tinues to meet applicable qualification standards)

20 the right—

21 ‘‘(A) to return, whenever possible, to a re22 paired unit;

23 ‘‘(B) to occupy a unit in another multifam24 ily housing project owned by the Secretary;
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1 ‘‘(C) to obtain housing assistance under

2 the United States Housing Act of 1937; or

3 ‘‘(D) to receive any other available reloca4 tion assistance as the Secretary determines to

5 be appropriate.

6 ‘‘(m) MORTGAGE AND PROJECT SALES.—

7 ‘‘(1) IN GENERAL.—The Secretary may not ap8 prove the sale of any loan or mortgage held by the

9 Secretary (including any loan or mortgage owned by

10 the Government National Mortgage Association) on

11 any subsidized project or formerly subsidized

12 project, unless such sale is made as part of a trans13 action that will ensure that such project will con14 tinue to operate at least until the maturity date of

15 such loan or mortgage, in a manner that will provide

16 rental housing on terms at least as advantageous to

17 existing and future tenants as the terms required by

18 the program under which the loan or mortgage was

19 made or insured prior to the assignment of the loan

20 or mortgage on such project to the Secretary.

21 ‘‘(2) SALE OF CERTAIN PROJECTS.—The Sec22 retary may not approve the sale of any subsidized

23 project—

24 ‘‘(A) that is subject to a mortgage held by

25 the Secretary; or
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1 ‘‘(B) if the sale transaction involves the

2 provision of any additional subsidy funds by the

3 Secretary or a recasting of the mortgage, unless

4 such sale is made as part of a transaction that

5 will ensure that such project will continue to

6 operate at least until the maturity date of the

7 loan or mortgage, in a manner that will provide

8 rental housing on terms at least as advan9 tageous to existing and future tenants as the

10 terms required by the program under which the

11 loan or mortgage was made or insured prior to

12 the proposed sale of the project.

13 ‘‘(3) MORTGAGE SALES TO STATE AND LOCAL

14 GOVERNMENTS.—Notwithstanding any provision of

15 law that may require competitive sales or bidding,

16 the Secretary may carry out negotiated sales of sub17 sidized or formerly subsidized mortgages held by the

18 Secretary, without the competitive selection of pur19 chasers or intermediaries, to units of general local

20 government or State agencies, or groups of investors

21 that include at least one such unit of general local

22 government or State agency, if the negotiations are

23 conducted with such agencies, except that—

24 ‘‘(A) the terms of any such sale shall in25 clude the agreement of the purchasing agency
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1 or unit of local government or State agency to

2 act as mortgagee or owner of a beneficial inter3 est in such mortgages, in a manner consistent

4 with maintaining the projects that are subject

5 to such mortgages for occupancy by the general

6 tenant group intended to be served by the appli7 cable mortgage insurance program, including,

8 to the extent the Secretary determines appro9 priate, authorizing such unit of local govern10 ment or State agency to enforce the provisions

11 of any regulatory agreement or other program

12 requirements applicable to the related projects;

13 and

14 ‘‘(B) the sales prices for such mortgages

15 shall be, in the determination of the Secretary,

16 the best prices that may be obtained for such

17 mortgages from a unit of general local govern18 ment or State agency, consistent with the ex19 pectation and intention that the projects fi20 nanced will be retained for use under the appli21 cable mortgage insurance program for the life

22 of the initial mortgage insurance contract.

23 ‘‘(4) SALE OF MORTGAGES COVERING

24 UNSUBSIDIZED PROJECTS.—Notwithstanding any

25 other provision of law, the Secretary may sell mort-
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1 gages held on unsubsidized projects on such terms

2 and conditions as the Secretary may prescribe.

3 ‘‘(5) DEFINITIONS.—For purposes of this sub4 section:

5 ‘‘(A) SUBSIDIZED PROJECT.—The term

6 ‘subsidized project’ means a multifamily hous7 ing project that, immediately prior to the as8 signment of the mortgage on such project to, or

9 the acquisition of such mortgage by, the Sec10 retary, was receiving any of the following types

11 of assistance:

12 ‘‘(i) Below market interest rate mort13 gage insurance under the proviso of section

14 221(d)(5) of the National Housing Act.

15 ‘‘(ii) Interest reduction payments

16 made in connection with mortgages insured

17 under section 236 of the National Housing

18 Act.

19 ‘‘(iii) Direct loans made under section

20 202 of the Housing Act of 1959.

21 ‘‘(iv) Assistance in the form of—

22 ‘‘(I) rent supplement payments

23 under section 101 of the Housing and

24 Urban Development Act of 1965;
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1 ‘‘(II) housing assistance pay2 ments made under section 23 of the

3 United States Housing Act of 1937

4 (as in effect before January 1, 1975);

5 or

6 ‘‘(III) housing assistance pay7 ments made under section 8 of the

8 United States Housing Act of 1937

9 (excluding payments made for tenant10 based assistance under section 8),

11 if (except for purposes of section 183(c) of

12 the Housing and Community Development

13 Act of 1987) such assistance payments are

14 made to more than 50 percent of the units

15 in the project.

16 ‘‘(B) FORMERLY SUBSIDIZED PROJECT.—

17 The term ‘formerly subsidized project’ means a

18 multifamily housing project owned by the Sec19 retary that was a subsidized project imme20 diately prior to its acquisition by the Secretary.

21 ‘‘(C) UNSUBSIDIZED PROJECT.—The term

22 ‘unsubsidized project’ means a multifamily

23 housing project owned by the Secretary that is

24 not a subsidized project or a formerly sub25 sidized project.
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1 ‘‘(n) HUD DISPOSITION TEAM.—

2 ‘‘(1) IN GENERAL.—The Secretary shall estab3 lish and maintain within the Department of Housing

4 and Urban Development a multifamily housing dis5 position team under this subsection consisting of

6 employees of the Department. The Secretary may

7 disband the multifamily housing disposition team

8 only after determining that the inventory of multi9 family housing projects that are owned by the Sec10 retary or subject to a mortgage held by the Sec11 retary existing upon the date of the enactment of

12 this subsection has been eliminated or substantially

13 reduced.

14 ‘‘(2) DUTIES.—The sole responsibilities of the

15 multifamily housing disposition team shall be to fa16 cilitate the disposition under this section of multi17 family housing projects that are owned by the Sec18 retary or are subject to a mortgage held by the Sec19 retary for the purpose of eliminating the inventory

20 of such projects of the Department of Housing and

21 Urban Development.

22 ‘‘(3) ACTIVITIES.—In carrying out its respon23 sibilities under paragraph (2), the multifamily hous24 ing disposition team shall—
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1 ‘‘(A) review the inventory of multifamily

2 housing projects of the Department of Housing

3 and Urban Development;

4 ‘‘(B) determine the locations having the

5 most such projects;

6 ‘‘(C) make on-site visits to area, field, and

7 other local offices of the Department to conduct

8 its responsibilities with respect to multifamily

9 housing projects located within the jurisdiction

10 of such offices, giving priority to offices in loca11 tions having the most such projects; and

12 ‘‘(D) assist the employees and staff of such

13 offices to establish schedules and disposition

14 plans for the disposition of multifamily housing

15 projects located within the jurisdiction of such

16 offices and to implement such schedules, plans,

17 and disposition.

18 ‘‘(4) USE OF EXISTING EMPLOYEES.—This sub19 section may not be construed to require or authorize

20 the Secretary to establish any employment position

21 in addition to the number of employment positions

22 of the Department of Housing and Urban Develop23 ment otherwise authorized in law.

24 ‘‘(o) REPORT TO CONGRESS.—Not later than June

25 1 of each year, the Secretary shall submit to the Congress
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1 a report describing the status of multifamily housing

2 projects owned by or subject to mortgages held by the Sec3 retary. The report shall include—

4 ‘‘(1) the name, address, and size of each

5 project;

6 ‘‘(2) the nature and date of assignment of each

7 project;

8 ‘‘(3) the status of the mortgage for each

9 project;

10 ‘‘(4) the physical condition of each project;

11 ‘‘(5) for each project, an occupancy profile of

12 the project, stating the income, family size, race, and

13 ethnic origin of current residents and the rents paid

14 by such residents, to the extent such information is

15 available;

16 ‘‘(6) the proportion of units in each project that

17 are vacant;

18 ‘‘(7) the date on which the Secretary became

19 mortgagee in possession of each project, if applica20 ble;

21 ‘‘(8) the date and conditions of any foreclosure

22 sale for a project;

23 ‘‘(9) the date of acquisition of each project by

24 the Secretary, if applicable;
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1 ‘‘(10) the date and conditions of any property

2 disposition sale for a project;

3 ‘‘(11) a description of actions undertaken pur4 suant to this section, including a description of the

5 effectiveness of such actions and any impediments to

6 the disposition or management of multifamily hous7 ing projects;

8 ‘‘(12) a description of any of the functions per9 formed in connection with this section that are con10 tracted out to public or private entities or to States;

11 and

12 ‘‘(13) a description of the activities carried out

13 under subsection (k) during the preceding year.’’.

14 SEC. 433. CLARIFICATION OF PUBLIC HOUSING PREF15 ERENCES.

16 Section 6(c)(4)(A)(i) of the United States Housing

17 Act of 1937 (42 U.S.C. 1437d(c)(4)(A)(i)) is amended by

18 inserting after ‘‘displaced’’ the following: ‘‘(including dis19 placement because of disposition of a multifamily housing

20 project under section 203 of the Housing and Community

21 Development Amendments of 1978)’’.

22 SEC. 434. AMENDMENT TO NATIONAL HOUSING ACT.

23 Title V of the National Housing Act (12 U.S.C.

24 1731a et seq.) is amended by adding at the end the follow25 ing new section:
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1 ‘‘PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY

2 HOUSING PROJECTS

3 ‘‘SEC. 541. (a) AUTHORITY.—Notwithstanding any

4 other provision of law, if the Secretary is requested to ac5 cept assignment of a mortgage insured by the Secretary

6 that covers a multifamily housing project (as such term

7 is defined in section 203(b) of the Housing and Commu8 nity Development Amendments of 1978) and the Sec9 retary determines that partial payment would be less cost10 ly to the Federal Government than other reasonable alter11 natives for maintaining the low-income character of the

12 project, the Secretary may request the mortgagee, in lieu

13 of assignment, to—

14 ‘‘(1) accept partial payment of the claim under

15 the mortgage insurance contract; and

16 ‘‘(2) recast the mortgage, under such terms and

17 conditions as the Secretary may determine.

18 ‘‘(b) REPAYMENT.—As a condition to a partial claim

19 payment under this section, the mortgagor shall agree to

20 repay to the Secretary the amount of such payment and

21 such obligation shall be secured by a second mortgage on

22 the property on such terms and conditions as the Sec23 retary may determine.’’.
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1 SEC. 435. EFFECTIVE DATE.

2 The Secretary shall issue interim regulations nec3 essary to implement the amendments made by sections

4 432 and 433 not later than 90 days after the date of the

5 enactment of this Act. Such interim regulations shall take

6 effect upon issuance and invite public comment on the in7 terim regulations. The Secretary shall issue final regula8 tions to implement such amendments after opportunity for

9 such public comment, but not later than 12 months after

10 the date of issuance of such interim regulations.

11 Subtitle C—Secondary Mortgage

12 Market Programs

13 SEC. 451. LIMITATION ON GNMA GUARANTEES OF MORT14 GAGE-BACKED SECURITIES.

15 Section 306(g)(2) of the Federal National Mortgage

16 Association Charter Act (12 U.S.C. 1721(g)(2)) is amend17 ed to read as follows:

18 ‘‘(2) Notwithstanding any other provision of law and

19 subject only to the absence of qualified requests for guar20 antees, to the authority provided in this subsection, and

21 to the extent of or in such amounts as any funding limita22 tion approved in appropriation Acts, the Association shall

23 enter into commitments to issue guarantees under this

24 subsection in an aggregate amount of $130,000,000,000

25 during fiscal year 1995 and $130,000,000,000 during fis26 cal year 1996. There are authorized to be appropriated
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1 to cover the costs (as such term is defined in section 502

2 of the Congressional Budget Act of 1974) of guarantees

3 issued under this Act by the Association such sums as may

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

5 Subtitle D—Emergency Mortgage

6 Relief

7 SEC. 471. AMENDMENTS TO EMERGENCY HOMEOWNERS’

8 RELIEF ACT.

9 (a) FINDINGS.—Section 102(a) of the Emergency

10 Homeowners’ Relief Act (12 U.S.C. 2701(a)) is amend11 ed—

12 (1) by striking paragraph (1) and inserting the

13 following new paragraph:

14 ‘‘(1) certain homeowners in the United States

15 are encountering severe economic hardships as a re16 sult of unemployment or a reduction in income;’’;

17 (2) in paragraph (2), by striking ‘‘adverse eco18 nomic conditions’’ and inserting ‘‘economic hard19 ships’’; and

20 (3) in paragraph (3), by striking ‘‘economic

21 conditions’’ and inserting ‘‘their economic condi22 tions’’.

23 (b) MORTGAGES ELIGIBLE FOR ASSISTANCE.—Sec24 tion 103 of the Emergency Homeowners’ Relief Act (12

25 U.S.C. 2702) is amended—
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1 (1) in paragraph (5), by striking ‘‘and’’ at the

2 end;

3 (2) in paragraph (6)—

4 (A) by inserting ‘‘a 1- to 4-family resi5 dence that is’’ after ‘‘is’’; and

6 (B) by striking the period at the end and

7 inserting ‘‘; and’’; and

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

9 paragraph:

10 ‘‘(7) the delinquency for which the holder of the

11 mortgage intends to foreclose commenced after the

12 date of the enactment of the Housing and Commu13 nity Development Act of 1994.’’.

14 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

15 109(a) of the Emergency Homeowners’ Relief Act (12

16 U.S.C. 2708(a)) is amended by striking ‘‘, except that’’

17 and all that follows through ‘‘$500,000,000’’ and inserting

18 ‘‘for fiscal years 1995 and 1996’’.

19 (d) EXPIRATION DATE.—Section 109(b) of the

20 Emergency Homeowners’ Relief Act (12 U.S.C. 2708(b))

21 is amended by striking ‘‘September 30, 1977’’ and insert22 ing ‘‘September 30, 1996’’.

23 (e) NOTIFICATION.—Section 110 of the Emergency

24 Homeowners’ Relief Act (12 U.S.C. 2709) is amended—

25 (1) in clause (1) of the 1st sentence—
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1 (A) by striking ‘‘October 1, 1977’’ and in2 serting ‘‘September 30, 1996’’; and

3 (B) by inserting ‘‘single family’’ before

4 ‘‘residential’’;

5 (2) in clause (2) of the 1st sentence, by striking

6 ‘‘until one year from the date of the enactment of

7 this title’’ and inserting ‘‘during fiscal years 1995

8 and 1996’’; and

9 (3) in the 2d sentence, by striking ‘‘Federal

10 Home Loan Bank Board, the Federal Savings and

11 Loan Insurance Corporation’’ and inserting ‘‘Office

12 of Thrift Supervision’’.

13 (f) REPORTS.—Section 111 of the Emergency Home14 owners’ Relief Act (12 U.S.C. 2710) is amended—

15 (1) by striking ‘‘Within’’ and all that follows

16 through ‘‘Congress on’’ and inserting the following:

17 ‘‘For fiscal year 1995 and each fiscal year thereafter

18 that begins before the date in section 109(b), the

19 Secretary shall submit a report under this section to

20 the Congress. The report for a fiscal year shall be

21 submitted not later than 60 days after the end of

22 the fiscal year and shall describe’’;

23 (2) by striking ‘‘purposes’’ and inserting ‘‘pur24 pose’’;

25 (3) by inserting ‘‘and’’ before ‘‘(4)’’; and
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1 (4) by striking ‘‘; and (5)’’ and all that follows

2 and inserting a period.

3 TITLE V—RURAL HOUSING

4 SEC. 501. PROGRAM AUTHORIZATIONS.

5 (a) INSURANCE AND GUARANTEE AUTHORITY.—Sec6 tion 513(a) of the Housing Act of 1949 (42 U.S.C.

7 1483(a)) is amended to read as follows:

8 ‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—

9 ‘‘(1) IN GENERAL.—The Secretary may, to the

10 extent approved in appropriation Acts, insure and

11 guarantee loans under this title during fiscal years

12 1995 and 1996, in aggregate amounts not to exceed

13 $3,424,779,720 and $3,527,523,112, respectively, as

14 follows:

15 ‘‘(A) For insured or guaranteed loans

16 under section 502 on behalf of low-income bor17 rowers receiving assistance under section

18 521(a)(1), $1,802,500,000 for fiscal year 1995

19 and $1,856,575,000 for fiscal year 1996.

20 ‘‘(B) For guaranteed loans under section

21 502(h) on behalf of low- and moderate-income

22 borrowers, $772,500,000 for fiscal year 1995

23 and $795,675,000 for fiscal year 1996.
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1 ‘‘(C) For loans under section 504,

2 $36,050,000 for fiscal year 1995 and

3 $37,131,500 for fiscal year 1996.

4 ‘‘(D) For insured loans under section 514,

5 $18,053,950 for fiscal year 1995 and

6 $18,595,569 for fiscal year 1996.

7 ‘‘(E) For insured loans under section 515,

8 $793,675,770 for fiscal year 1995 and

9 $817,486,043 for fiscal year 1996.

10 ‘‘(F) For loans under section

11 523(b)(1)(B), $1,000,000 for fiscal year 1995

12 and $1,030,000 for fiscal year 1996.

13 ‘‘(G) For site loans under section 524,

14 $1,000,000 for fiscal year 1995 and $1,030,000

15 for fiscal year 1996.

16 ‘‘(2) LIMITATION ON USE.—Notwithstanding

17 any other provision of law, insured or guaranteed

18 loan authority in this title for any fiscal year shall

19 not be transferred or used for any purpose not speci20 fied in this title.’’.

21 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

22 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b))

23 is amended to read as follows:

24 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There

25 are authorized to be appropriated for fiscal years 1995
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1 and 1996, and to remain available until expended, the fol2 lowing amounts:

3 ‘‘(1) For grants under section 502(c)(5)(C)(i),

4 $10,000,000 for fiscal year 1995, and $10,000,000

5 for fiscal year 1996.

6 ‘‘(2) For grants under section 504,

7 $31,000,000 for fiscal year 1995 and $31,930,000

8 for fiscal year 1996.

9 ‘‘(3) For purposes of section 509(c),

10 $1,000,000 for fiscal year 1995 and $1,030,000 for

11 fiscal year 1996.

12 ‘‘(4) For project preparation grants under sec13 tion 509(f)(6), $5,688,278 for fiscal year 1995 and

14 $5,858,926 for fiscal year 1996.

15 ‘‘(5) In fiscal years 1995 and 1996, such sums

16 as may be necessary to meet payments on notes or

17 other obligations issued by the Secretary under sec18 tion 511 equal to—

19 ‘‘(A) the aggregate of the contributions

20 made by the Secretary in the form of credits on

21 principal due on loans made pursuant to section

22 503; and

23 ‘‘(B) the interest due on a similar sum

24 represented by notes or other obligations issued

25 by 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 fa7 cilities for domestic farm labor under sub8 sections (a) through (j) of such section,

9 $23,289,742 for fiscal year 1995 and

10 $23,988,434 for fiscal year 1996; and

11 ‘‘(B) for housing for rural homeless and

12 migrant farmworkers under subsection (k) of

13 such section, $11,269,230 for fiscal year 1995

14 and $11,607,307 for fiscal year 1996.

15 ‘‘(8) For grants under section 523(f),

16 $14,918,314 for fiscal year 1995 and $15,365,863

17 for fiscal year 1996.

18 ‘‘(9) For grants under section 533,

19 $33,056,408 for fiscal year 1993 and $34,048,100

20 for fiscal year 1994.

21 ‘‘(10) For grants under section 538,

22 $10,000,000 for fiscal year 1995, which shall remain

23 available until the end of fiscal year 1997.
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1 ‘‘(11) For assistance under section 539,

2 $20,000,000 for fiscal year 1995 and $20,600,000

3 for fiscal year 1996.’’.

4 (c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—

5 Section 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)

10 The Secretary, to the extent approved in appropriations

11 Acts for fiscal years 1995 and 1996, may enter into rental

12 assistance payment contracts under section 521(a)(2)(A)

13 and contracts for operating assistance under section

14 521(a)(5), aggregating $454,079,620 for fiscal year 1995

15 and $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

24 year 1995 and $13,462,265 for fiscal year 1996.’’.
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1 (e) RURAL HOUSING VOUCHER AUTHORITY.—Sec2 tion 513(e) of the Housing Act of 1949 (42 U.S.C.

3 1483(e)) is amended to read as follows:

4 ‘‘(e) RURAL HOUSING VOUCHERS.—There are au5 thorized to be appropriated for rural housing vouchers

6 under section 542, $144,200,000 for fiscal year 1995 and

7 $148,526,000 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))

10 is 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. SECTION 502 HOMEOWNERSHIP LOANS.

15 (a) REMOTE RURAL AREAS.—Section 502(f) of the

16 Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—

17 (1) by striking paragraph (1):

18 (2) by redesignating paragraph (2) as para19 graph (1); and

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

21 paragraph:

22 ‘‘(2) SECURITY.—In making a loan under this

23 section for housing located in a rural area that is a

24 remote rural area (which shall include tribal allotted

25 or Indian trust land) where the borrower resides or
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1 is employed, the Secretary shall consider the actual

2 cost of the property and structure for which the loan

3 is made as adequate security for the loan required

4 under subsection (b).’’.

5 (b) PERMANENT DEFERRED MORTGAGE PRO6 GRAM.—Section 502(g) of the Housing Act of 1949 (42

7 U.S.C. 1472(g)) is amended—

8 (1) in the subsection heading, by striking

9 ‘‘DEMONSTRATION’’ and inserting ‘‘PROGRAM’’; and

10 (2) by striking paragraph (3).

11 (c) REAMORTIZATION AND REFINANCING.—Section

12 505 of the Housing Act of 1949 (42 U.S.C. 1475) is

13 amended—

14 (1) in the section heading, by inserting ‘‘,

15 REAMORTIZATION, AND’’ after ‘‘MORATORIUM’’;

16 (2) in subsection (a), by inserting before the

17 last sentence the following: ‘‘The Secretary may not

18 foreclose such a mortgage securing such a loan upon

19 which a moratorium has been granted solely because

20 the borrower does not have the ability to repay the

21 loan. Upon the expiration of a moratorium, the Sec22 retary shall enter into an agreement with the bor23 rower providing to the borrower such assistance as

24 the Secretary is authorized to provide under this sec25 tion and may foreclose with respect to the loan only
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1 if the borrower fails to make 3 monthly payments

2 required under such agreement.’’;

3 (3) by redesignating subsection (b) as sub4 section (c); and

5 (4) by inserting after subsection (a) the follow6 ing new subsection:

7 ‘‘(b) REAMORTIZATION AND REFINANCING.—

8 ‘‘(1) AUTHORITY.—With respect to a loan made

9 under section 502, after a moratorium under sub10 section (a) of this section for the loan or at any

11 other time the Secretary considers appropriate and

12 necessary to enable the borrower under the loan to

13 retain possession of the home securing the loan, the

14 Secretary may—

15 ‘‘(A) reamortize the outstanding indebted16 ness, including principal and interest, under the

17 loan for a period not to exceed 38 years from

18 the date of the making of the loan, subject to

19 the provisions of paragraph (2); or

20 ‘‘(B) make a new loan under section 502

21 to the borrower, the proceeds of which shall be

22 used to liquidate such indebtedness.

23 ‘‘(2) GRADUATED REPAYMENT AGREEMENT.—

24 In reamortizing a loan pursuant to paragraph

25 (1)(A), the Secretary may establish a schedule of
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1 payments under the loan that provides for payments

2 in an amount less than the amount of the payments

3 originally provided for under the loan agreement for

4 a period not exceeding 3 years.’’.

5 SEC. 503. PREPAYMENT OF RURAL RENTAL HOUSING

6 LOANS.

7 (a) TECHNICAL ASSISTANCE GRANTS FOR NON8 PROFIT AND PUBLIC AGENCY PURCHASERS OF PREPAY9 MENT PROPERTIES.—Section 502(c)(5)(C)(i) of the

10 Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is

11 amended to read as follows:

12 ‘‘(i) to the extent provided in appro13 priation Acts, make a grant in an amount

14 not exceeding $50,000 to the nonprofit or15 ganization or public agency whose offer to

16 purchase is accepted under this paragraph

17 to cover reasonable costs, as determined by

18 the Secretary and not including the pur19 chase price, incurred by the organization

20 or agency in purchasing and assuming re21 sponsibilities for the housing and related

22 facilities involved, which may include costs

23 for pursuing acquisition, appraisals, fi24 nancing fees, accounting, administration,

25 consultants, legal assistance, architectural
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1 assistance, engineering assistance, applica2 tion fees, overhead, and other expenses;’’.

3 (b) EQUITY TAKEOUT LOANS.—

4 (1) AUTHORITY FOR SECTION 514 HOUSING.—

5 Section 502(c)(4)(B)(iv) of the Housing Act of 1949

6 (42 U.S.C. 1472(c)(4)(B)(iv)) is amended by insert7 ing before the semicolon at the end the following:

8 ‘‘or under paragraphs (1) and (2) of section 514(i)’’.

9 (2) LOAN TERMS.—Section 514 of the Housing

10 Act of 1949 (42 U.S.C. 1484) is amended by adding

11 at the end the following new subsection:

12 ‘‘(i) EQUITY TAKEOUT LOANS FOR PRESERVATION

13 OF LOW-INCOME HOUSING.—With respect to a loan in14 sured under subsection (a), the Secretary may—

15 ‘‘(1) make or insure an equity loan in the form

16 of a supplemental loan for the purpose of equity

17 takeout to the owner of housing financed with a loan

18 insured under this section pursuant to a contract en19 tered into before December 15, 1989, for the pur20 pose of extending the affordability of the housing for

21 low-income families or persons and very low-income

22 families or persons for not less than 20 years, except

23 that such loan may not exceed 90 percent of the

24 value of the equity in the project as determined by

25 the Secretary;
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1 ‘‘(2) transfer and reamortize an existing loan in

2 connection with assistance provided under paragraph

3 (1); and

4 ‘‘(3) make or insure a loan to enable a non5 profit organization or public agency to make a pur6 chase described in section 502(c)(5).’’.

7 (3) TECHNICAL CORRECTION RELATING TO

8 SECTION 515 HOUSING.—Section 515(c)(1) of the

9 Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is

10 amended by striking ‘‘December 21, 1979’’ and in11 serting ‘‘December 15, 1989’’.

12 (c) PHASE-IN OF RENT INCREASES.—Section

13 502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.

14 1472(c)(4)(B)(vi)) is amended by inserting before the pe15 riod at the end the following: ‘‘, except that any such in16 crease in rents for current tenants (except for increases

17 made necessary by increases in operating costs) shall (I)

18 be phased in equally over a period of not less than 3 years,

19 if such increase is 30 percent or more, and (II) be limited

20 to not more than 10 percent per year if such increase is

21 more than 10 percent but less than 30 percent’’.

22 (d) TREATMENT OF ACCELERATION UPON DE23 FAULT.—Section 502 of the Housing Act of 1949 (42

24 U.S.C. 1472) is amended—
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1 (1) in subsection (b)(2), by inserting ‘‘or any

2 payment in the case of acceleration of the amount

3 due under such a loan pursuant to any default,’’

4 after ‘‘515’’; and

5 (2) in subsection (c)—

6 (A) in paragraph (1)(A), 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 (B) in paragraph (1)(B), by inserting be11 fore the 1st comma the following: ‘‘, accept any

12 payment tendered in the case of acceleration of

13 the amount due pursuant to any default on’’;

14 (C) in paragraph (2)—

15 (i) by inserting after ‘‘prepaid’’ the

16 following: ‘‘, paid in full pursuant to accel17 eration of the amount due resulting from

18 default,’’; and

19 (ii) by inserting ‘‘, payment,’’ after

20 ‘‘prepayment’’;

21 (D) in paragraph (4)(A), by inserting after

22 ‘‘prepay,’’ the following: ‘‘accepting any pay23 ment tendered in the case of acceleration of the

24 amount due pursuant to any default on,’’; and

25 (E) in paragraph (5)—
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1 (i) in subparagraph (A)(ii), by insert2 ing after ‘‘prepay,’’ the following: ‘‘accept

3 the payment tendered in the case of accel4 eration of the amount due pursuant to de5 fault on,’’;

6 (ii) in the 1st sentence of subpara7 graph (F), by inserting after ‘‘prepay,’’ the

8 following: ‘‘accept payment tendered in the

9 case of acceleration of the amount due pur10 suant to default on,’’;

11 (iii) in the 2d sentence of subpara12 graph (F), by inserting after ‘‘prepay,’’ the

13 following: ‘‘payment tendered in the case

14 of acceleration of the amount due pursuant

15 to default,’’;

16 (iv) in the last sentence of subpara17 graph (F), by striking ‘‘offers to prepay,’’

18 and inserting the following: ‘‘such offers to

19 prepay, payments in the case of accelera20 tion of the amount due pursuant to de21 fault,’’; and

22 (v) in the matter in subparagraph (G)

23 that precedes clause (i), by inserting after

24 ‘‘prepay,’’ the following: ‘‘any payment ten-
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1 dered in the case of acceleration of the

2 amount due pursuant to default on,’’.

3 (e) TEST FOR ALLOWABLE PREPAYMENT.—Section

4 502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C.

5 1472(c)(5)(G)(ii)) is amended to read as follows:

6 ‘‘(ii) the Secretary makes a written

7 finding that—

8 ‘‘(I) prepayment, payment in the

9 case of acceleration, or refinancing

10 will not materially increase economic

11 hardship for current tenants;

12 ‘‘(II) involuntarily displace cur13 rent tenants (except for good cause),

14 where comparable and affordable

15 housing is not readily available, deter16 mined without regard to the availabil17 ity of Federal housing assistance that

18 would address any such hardship or

19 involuntary displacement; and

20 ‘‘(III) the supply of vacant, com21 parable housing is sufficient to ensure

22 that such prepayment will not materi23 ally affect (a) the availability of de24 cent, safe, and sanitary housing af25 fordable to low-income and very low-
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1 income families or persons in the area

2 that the housing could reasonably be

3 expected to serve, (b) the ability of

4 low-income and very low-income fami5 lies or persons to find affordable, de6 cent, safe, and sanitary housing near

7 employment opportunities, or (c) the

8 housing opportunities of minorities in

9 the community within which the hous10 ing is located.’’.

11 SEC. 504. DESIGNATION OF UNDERSERVED AREAS AND

12 RESERVATION OF ASSISTANCE.

13 (a) REAUTHORIZATION.—Section 509(f)(4) of the

14 Housing Act of 1949 (42 U.S.C. 1479(f)(4)) is amended

15 by striking ‘‘fiscal years 1993 and 1994’’ and inserting

16 ‘‘each of fiscal years 1995 and 1996’’.

17 (b) 2-YEAR AND 3-YEAR DESIGNATIONS.—Section

18 509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f))

19 is amended—

20 (1) in paragraph (1)—

21 (A) in the 1st sentence, by striking ‘‘in

22 each fiscal year’’; and

23 (B) in the 2d sentence, by striking ‘‘year

24 in’’ and inserting ‘‘first year for’’;

25 (2) in paragraph (2)—
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1 (A) in the first sentence, by striking

2 ‘‘paragraph (4)’’ and inserting ‘‘paragraph

3 (5)’’; and

4 (B) by striking the last sentence;

5 (3) in paragraph (3)(B), by striking ‘‘para6 graph (2)’’ and inserting ‘‘paragraph (3)’’;

7 (4) in paragraph (4)(A), by striking ‘‘paragraph

8 (7)’’ and inserting ‘‘paragraph (8)’’;

9 (5) by redesignating paragraphs (2) through

10 (8) as paragraphs (3) through (9), respectively; and

11 (6) by inserting after paragraph (1) the follow12 ing new paragraph:

13 ‘‘(2) TIMING AND DURATION OF DESIGNA14 TIONS.—

15 ‘‘(A) IN GENERAL.—Except as provided in

16 subparagraph (B), the Secretary shall redesig17 nate the targeted underserved areas under this

18 subsection once every 2 fiscal years and such

19 designations shall remain in effect for a period

20 of 2 fiscal years. The first such 2-year designa21 tion shall be made for fiscal years 1995 and

22 1996.

23 ‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—

24 The Secretary shall ensure that, at all times,

25 not less than 5 counties or communities that
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1 contain tribal allotted or Indian trust land are

2 included among the 100 counties and commu3 nities designated as targeted underserved areas.

4 The Secretary shall redesignate the counties or

5 communities designated as a targeted under6 served area in compliance with this subpara7 graph once every 3 fiscal years and such des8 ignations shall remain in effect for 3 fiscal

9 years. The first such 3-year designation shall be

10 made for fiscal years 1995 through 1997. Upon

11 designation, the Secretary shall specify any tar12 geted underserved area designated in compli13 ance with this subparagraph.’’.

14 SEC. 505. ADMINISTRATIVE APPEALS.

15 Section 510(g) of the Housing Act of 1949 (42

16 U.S.C. 1480(g)) is amended by inserting after ‘‘adverse

17 decision’’ the following: ‘‘(including an eviction), on the

18 record after opportunity for an agency hearing,’’.

19 SEC. 506. SECTION 515 RURAL RENTAL HOUSING.

20 (a) SET-ASIDE FOR NONPROFIT ENTITIES.—The

21 first sentence of section 515(w)(1) of the Housing Act of

22 1949 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fis23 cal years 1994 and 1995’’ and inserting ‘‘fiscal years 1995

24 and 1996.’’.
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1 (b) AUTHORITY FOR SEQUENTIAL TRANSFERS.—

2 Section 515 of the Housing Act of 1949 (42 U.S.C. 1485)

3 is amended by inserting after subsection (g) the following

4 new subsection:

5 ‘‘(h) AUTHORITY FOR SEQUENTIAL TRANSFERS.—

6 Notwithstanding any other provision of this title, in mak7 ing or insuring a loan under subsection (a) or (b), the

8 Secretary may approve the sequential transfer of the loan

9 involving more than one new transferee entity, but only

10 if the Secretary determines that such transfer would be

11 in the best interests of the tenants of the housing for

12 which the loan was made and of the Federal Govern13 ment.’’.

14 (c) AUTHORITY FOR STREAMLINED REFINANCING.—

15 Section 515 of the Housing Act of 1949 (42 U.S.C. 1485)

16 is amended by adding at the end the following new sub17 section:

18 ‘‘(z) REFINANCING.—

19 ‘‘(1) PURPOSE AND AUTHORITY.—In order to

20 reduce the amount of debt service payments and op21 erating costs of borrowers under loans made or in22 sured under this section, reduce rents paid by resi23 dents of housing financed with such loans, and re24 duce the amount of rental assistance necessary for

25 such housing, the Secretary may refinance the out-
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1 standing principal obligation of a loan made under

2 this subsection in accordance with the provisions ap3 plicable (at the time of such refinancing) to loans

4 made under this section that the Secretary deter5 mines are appropriate for purposes of this sub6 section and the terms and conditions of the original

7 loan.

8 ‘‘(2) USE OF HOUSING.—Any terms of the

9 original loan relating to use of the housing and re10 lated facilities for the purposes specified in this sec11 tion shall continue to apply to the housing in the

12 same manner as if the loan were not refinanced

13 under this subsection.

14 ‘‘(3) TREATMENT OF REFINANCING UNDER

15 PREPAYMENT RESTRICTIONS.—Any loan refinanced

16 under this subsection shall be considered a loan

17 originally made under this section, for purposes of

18 the limitations under subsection (c) on prepayment

19 and refinancing under subsection (b)(3). For pur20 poses of determining the financial status of the loan

21 or the housing securing the loan, the Secretary may

22 consider the terms of the refinancing.

23 ‘‘(4) TERMS.—The Secretary shall, by regula24 tion, establish any requirements and conditions the

25 Secretary considers appropriate to provide for refi-
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1 nancing under this subsection, including any limita2 tions on term of the refinancing loan.

3 ‘‘(5) EXPEDITED PROCEDURE.—The Secretary

4 shall establish an expedited procedure for providing

5 refinancing under this subsection, which—

6 ‘‘(A) shall not require application under

7 the same procedures applicable to loans made

8 under subsection (a); and

9 ‘‘(B) shall take into consideration any in10 formation obtained by the Secretary in making

11 and servicing the loan under subsection (a) for

12 which refinancing under this subsection is re13 quested.’’.

14 SEC. 507. RENTAL ASSISTANCE PAYMENTS.

15 (a) OPTIONAL CONVERSION TO OPERATING SUBSIDY

16 FOR MIGRANT FARMWORKER PROJECTS.—

17 ‘‘(1) IN GENERAL.—Section 521(a) of the

18 Housing Act of 1949 (42 U.S.C. 1490a(a)) is

19 amended by adding at the end the following new

20 paragraph:

21 ‘‘(5) OPERATING ASSISTANCE FOR MIGRANT FARM22 WORKER PROJECTS.—

23 ‘‘(1) AUTHORITY.—In the case of housing (and

24 related facilities) for migrant farmworkers provided

25 or assisted with a loan under section 514 or a grant
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1 under section 516, the Secretary may, at the request

2 of the owner of the project, use amounts provided

3 for rental assistance payments under paragraph (2)

4 to provide assistance for the costs of operating the

5 project. Any project assisted under this paragraph

6 may not receive rental assistance under paragraph

7 (2).

8 ‘‘(2) AMOUNT.—In any fiscal year, the assist9 ance provided under this paragraph for any project

10 shall not exceed an amount equal to 90 percent of

11 the operating costs for the project for the year, as

12 determined by the Secretary. The amount of assist13 ance to be provided for a project under this para14 graph shall be an amount that makes units in the

15 project available to migrant farmworkers in the area

16 of the project at rates generally not exceeding 30

17 percent of the monthly adjusted incomes of such

18 farmworkers, based on the prevailing incomes of

19 such farmworkers in the area.

20 ‘‘(3) SUBMISSION OF INFORMATION.—The

21 owner of a project assisted under this paragraph

22 shall be required to provide to the Secretary, at least

23 annually, a budget of operating expenses and esti24 mated rental income, which the Secretary shall use
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1 to determine the amount of assistance for the

2 project.

3 ‘‘(4) DEFINITIONS.—For purposes of this para4 graph, the following definitions shall apply:

5 ‘‘(A) The term ‘migrant farmworker’ shall

6 have the same meaning given the term in sec7 tion 516(k)(7).

8 ‘‘(B) The term ‘operating cost’ means ex9 penses incurred in operating a project, includ10 ing expenses for—

11 ‘‘(i) administration, maintenance, re12 pair, and security of the project;

13 ‘‘(ii) utilities, fuel, furnishings, and

14 equipment for the project; and

15 ‘‘(iii) maintaining adequate reserve

16 funds for the project.’’.

17 ‘‘(2) CONFORMING AMENDMENTS.—Title V of

18 the Housing Act of 1949 (42 U.S.C. 1471 et seq.)

19 is amended—

20 (A) in section 502—

21 (i) in subsection (c)(1)(A)(i), by strik22 ing ‘‘or (a)(2)’’ and inserting ‘‘, (a)(2), or

23 (5)’’;

24 (ii) in subsection (c)(4)(B)(ii), by in25 serting before the period at the end the fol-
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1 lowing: ‘‘, or additional assistance or an in2 crease in assistance provided under section

3 521(a)(5)’’;

4 (iii) in subsection (c)(4)(B)(iii), by in5 serting before the period at the end the fol6 lowing: ‘‘, or current tenants of projects

7 not assisted under section 521(a)(5)’’;

8 (iv) in subsection (c)(5)(C)(iii)—

9 (I) by striking the 2d comma;

10 and

11 (II) by inserting ‘‘, or any assist12 ance payments received under section

13 521(a)(5),’’ before ‘‘with respect’’;

14 (v) in subsection (c)(5)(D), by insert15 ing before the period at the end the follow16 ing: ‘‘or, in the case of housing assisted

17 under section 521(a)(5), does not exceed

18 the rents established for the project under

19 such section’’;

20 (B) in the second sentence of section

21 509(f)(5) (as redesignated by the preceding

22 provisions of this title), by striking ‘‘an amount

23 of section 521 rental assistance’’ and inserting

24 ‘‘, from amounts available for assistance under
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1 paragraphs (2) and (5) of section 521(a), an

2 amount’’;

3 (C) in section 513(c)(2)—

4 (i) in the matter preceding subpara5 graph (A), by inserting ‘‘or contracts for

6 operating assistance under section

7 521(a)(5)’’ after ‘‘521(a)(2)(A)’’;

8 (ii) in subparagraph (A), by inserting

9 ‘‘or operating assistance contracts’’ after

10 ‘‘contracts’’;

11 (iii) in subparagraph (B), by striking

12 ‘‘rental’’ each place it appears; and

13 (iv) in subparagraph (C), by inserting

14 ‘‘or operating assistance contracts’’ after

15 ‘‘contracts’’;

16 (D) in section 521(a)(2)(B)—

17 (i) by inserting ‘‘or paragraph (5)’’

18 after ‘‘this paragraph’’; and

19 (ii) by striking ‘‘which shall’’ and all

20 that follows through the period at the end

21 and inserting the following: ‘‘. The budget

22 (and the income, in the case of a project

23 assisted under this paragraph) shall be

24 used to determine the amount of the as25 sistance for each project.’’;
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1 (E) in section 521(c), by striking ‘‘sub2 section (a)(2)’’ and inserting ‘‘subsections

3 (a)(2) and (a)(5)’’;

4 (F) in section 521(e), by inserting after

5 ‘‘recipient’’ the following: ‘‘or any tenant in a

6 project assisted under subsection (a)(5)’’; and

7 (G) in section 530, by striking ‘‘rental as8 sistance payments with respect to such project

9 under section 521(a)(2)(A)’’ an inserting ‘‘as10 sistance payments with respect to such project

11 under section 521(a)(2)(A) or 521(a)(5)’’.

12 (b) SET-ASIDE FOR NEW CONSTRUCTION.—Section

13 521 of the Housing Act of 1949 (42 U.S.C. 1490a) is

14 amended by adding at the end the following new sub15 section:

16 ‘‘(f) SET-ASIDE OF RENTAL ASSISTANCE AMOUNTS

17 FOR NEW CONSTRUCTION.—

18 ‘‘(1) REQUIREMENT.—In each fiscal year, of

19 any amounts appropriated for rental assistance pay20 ments under subsection (a)(2)(A), the Secretary

21 shall reserve for use only for rental housing projects

22 to be newly constructed or rehabilitated with a loan

23 under section 515 and a percentage of such amounts

24 appropriated that is not less than the average deter25 mined under paragraph (2).
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1 ‘‘(2) DETERMINATION OF AMOUNT.—The aver2 age determined under this paragraph shall be the

3 annual average, for the most recent 3 completed fis4 cal years, of the percentage of such amounts appro5 priated for rental assistance payments assistance

6 that was made available for use for newly con7 structed or rehabilitated rental housing projects pro8 vided with a loan under section 515.’’.

9 SEC. 508. RURAL HOUSING ASSISTANCE TARGETING RE10 PORT.

11 Section 532(a) of the Housing Act of 1949 (42

12 U.S.C. 1490l) is amended by adding at the end the follow13 ing new flush material:

14 ‘‘The Secretary shall submit a report to the Congress for

15 each fiscal year describing the geographical distribution

16 of housing for which eligible loan applications for assist17 ance under this title are submitted in such year and for

18 which amounts are obligated in such year. The report shall

19 describe the areas in which the housing to be assisted

20 under the applications is located, the number of eligible

21 applications received for housing in such areas, the num22 ber of eligible applications for housing in such areas that

23 were approved and funded and the amounts of such fund24 ing, the extent of the rural character of such areas, and

25 any actions taken by the Secretary to comply with the re-
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1 quirement under paragraph (3). The report for a fiscal

2 year shall be submitted not later than 180 days after the

3 conclusion of such fiscal year.’’.

4 SEC. 509. PRIORITY FOR RURAL HOUSING VOUCHER AS5 SISTANCE.

6 Section 542 of the Housing Act of 1949 (42 U.S.C.

7 1490r) is amended by adding at the end the following new

8 subsection:

9 ‘‘(c) PRIORITY.—

10 ‘‘(1) REQUIREMENT.—In providing assistance

11 under this section, the Secretary shall give pref12 erence to providing assistance for rental housing

13 that—

14 ‘‘(A) is financed or assisted with a loan,

15 guarantee, insurance, or other assistance pro16 vided under this title; and

17 ‘‘(B)(i) has a significant number of units,

18 as determined by the Secretary, that have been

19 vacant for extended periods; or

20 ‘‘(ii) is occupied by a significant number of

21 families, as determined by the Secretary, who

22 pay as rent for a unit in the housing an amount

23 exceeding 30 percent of the family’s monthly

24 adjusted income.
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1 ‘‘(2) PROJECT-BASED ASSISTANCE.—To provide

2 assistance according to the preference under para3 graph (1), the Secretary may enter into contracts

4 with owners of housing described in paragraph (1)

5 to provide voucher assistance payments that are at6 tached to such housing on behalf of very low-income

7 families who reside in such housing.’’.

8 SEC. 510. NATIVE AMERICAN RURAL HOUSING CAPACITY

9 DEMONSTRATION PROGRAM.

10 Title V of the Housing Act of 1949 is amended by

11 inserting after section 537 (42 U.S.C. 1490p–1) the fol12 lowing new section:

13 ‘‘SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION

14 PROGRAM FOR NATIVE AMERICANS AND

15 ALASKAN NATIVES.

16 ‘‘(a) AUTHORITY.—The Secretary shall carry out a

17 program under this section to demonstrate the effective18 ness of assisting Native Americans and Alaskan Natives

19 in underserved areas to apply for, obtain, and use housing

20 assistance under this title.

21 ‘‘(b) GRANTS.—Under the demonstration under this

22 section, the Secretary shall make grants to technical as23 sistance providers selected under subsection (f) to carry

24 out activities under subsection (c) with respect to tribes

25 selected under subsection (e) (and members of the tribes)
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1 in the selected areas. Of the amounts provided to a tech2 nical assistance provider under a grant under this section,

3 40 percent shall be disbursed to the technical assistance

4 provider in fiscal year 1995, 30 percent shall be so dis5 bursed in fiscal year 1996, and 30 percent shall be so dis6 bursed in fiscal year 1997.

7 ‘‘(c) USE OF ASSISTANCE.—

8 ‘‘(1) ELIGIBLE ACTIVITIES.—Any amounts pro9 vided to a technical assistance provider under a

10 grant under this section shall be used by the tech11 nical assistance provider only—

12 ‘‘(A) to train individuals for employment

13 as local project coordinators under paragraph

14 (2), which shall include training regarding the

15 availability, application for, and use of housing

16 assistance under this title with respect to tribes

17 and members of tribes;

18 ‘‘(B) to provide ongoing technical assist19 ance and training to local project coordinators;

20 ‘‘(C) to provide assistance to the tribes se21 lected under subsection (e) in the selected

22 areas, or to Native American or Alaskan Native

23 housing organizations serving such tribes, to

24 employ local project coordinators trained pursu25 ant to subparagraph (A); and
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1 ‘‘(D) to establish a revolving fund to pro2 vide loans to tribes and members of tribes for

3 customary and reasonable costs incurred in pre4 paring and submitting applications for housing

5 assistance under this title to be used in the se6 lected areas (including costs of credit reports),

7 except that not more than $1,500 may be pro8 vided for the purpose under this subparagraph

9 to any single tribe or Native American or Alas10 kan Native housing organization.

11 ‘‘(2) LOCAL PROJECT COORDINATOR.—For pur12 poses of this section, a local project coordinator shall

13 be an individual who—

14 ‘‘(A) is employed by a tribe selected under

15 subsection (e) in, or Native American or Alas16 kan Native housing organization serving, the

17 selected area;

18 ‘‘(B) provides advice and assistance to the

19 tribe or the tribes served by the organization

20 (and members of such tribes), regarding the

21 availability, application for, and use of housing

22 assistance under this title;

23 ‘‘(C) otherwise facilitates the use of such

24 assistance by the tribes and their members; and
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1 ‘‘(D) assists the tribes and their members

2 in obtaining loans from the revolving fund es3 tablished under paragraph (1)(D).

4 ‘‘(d) TRIBAL CONTRIBUTIONS TO DEMONSTRATION

5 PROGRAM.—Each tribe selected under subsection (e) for

6 participation in the demonstration program under this

7 section shall enter into an agreement with the technical

8 assistance provider to provide in-kind or financial assist9 ance, in addition to amounts provided under this section,

10 for activities under the demonstration program, in an

11 amount determined by the tribe and the technical assist12 ance provider. The assistance provided pursuant to such

13 agreement may include assistance in the form of office

14 space, equipment, transportation, salary enhancement,

15 and fringe benefits, and other forms of assistance.

16 ‘‘(e) SELECTION OF TRIBES AND AREAS.—

17 ‘‘(1) ELIGIBILITY.—The Secretary shall provide

18 for the technical assistance providers receiving

19 grants under this section to select for participation

20 in the demonstration under this section not more

21 than a total of 15 tribes—

22 ‘‘(A) that are located in counties or com23 munities—
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1 ‘‘(i) that are eligible for designation

2 as targeted underserved areas under sec3 tion 509(f); or

4 ‘‘(ii) that include tribal allotted or In5 dian trust land; and

6 ‘‘(B) that—

7 ‘‘(i) have agreed to participate in the

8 demonstration under this section by des9 ignating individuals for training as local

10 project coordinators under subsection (c);

11 or

12 ‘‘(ii) are located in a county or com13 munity within which is located a Native

14 American or Alaskan Native housing orga15 nization that has so agreed to participate

16 in the demonstration under this section.

17 ‘‘(2) CRITERIA FOR SELECTION.—Each tech18 nical assistance provider selecting tribes pursuant to

19 paragraph (1) shall make such selections according

20 to criteria that include—

21 ‘‘(A) the extent of substandard housing on

22 the reservation of the tribe;

23 ‘‘(B) the extent of the waiting list for

24 housing assistance under Federal housing pro-
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1 grams in the community or community under

2 paragraph (1)(A);

3 ‘‘(C) the extent of interest in and willing4 ness to participate in the demonstration pro5 gram under this section for a 3-year period;

6 and

7 ‘‘(D) the extent of willingness to provide

8 in-kind or financial assistance in addition to

9 amounts provided under this section for activi10 ties under the demonstration program.

11 ‘‘(3) TREATMENT AS TARGETED UNDERSERVED

12 AREAS.—Notwithstanding the designation of coun13 ties and communities as targeted underserved areas

14 under section 509(f)(1) and the provisions of section

15 520, any selected area under this section shall be

16 considered a targeted underserved area for fiscal

17 years 1995, 1996, and 1997, for purposes of eligi18 bility for assistance with amounts reserved under

19 section 509(f)(4)(A).

20 ‘‘(f) SELECTION OF TECHNICAL ASSISTANCE PRO21 VIDERS.—

22 ‘‘(1) ELIGIBILITY.—The Secretary may make a

23 grant under this section only to a nonprofit organi24 zation having experience in providing training and

25 technical assistance regarding the use of housing as-
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1 sistance under this title and in administering revolv2 ing loan funds for costs relating to housing assist3 ance programs under this title.

4 ‘‘(2) APPLICATION.—The Secretary shall pro5 vide for nonprofit organizations meeting the require6 ments under paragraph (1) to submit applications

7 for a grant under this section during a period of not

8 more than 45 days that begins upon publication of

9 the notice of funding availability under subsection

10 (i).

11 ‘‘(3) SELECTION.—Not more than 30 days

12 after expiration of such period, the Secretary shall

13 select, to receive grants under this section, 1 or

14 more nonprofit organizations submitting applications

15 that are—

16 ‘‘(A) capable of carrying out the duties of

17 technical assistance providers under this sec18 tion; and

19 ‘‘(B) knowledgeable and experienced re20 garding housing needs and issues of Native

21 Americans and Alaskan Natives and housing

22 assistance programs under this title; and

23 ‘‘(C) agree to comply with the provisions of

24 this section.

25 ‘‘(g) REPORTS.—
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1 ‘‘(1) LOCAL PROJECT COORDINATORS.—Each

2 local project coordinator trained or assisted by a

3 technical assistance provider with amounts from a

4 grant under this section shall submit a report to the

5 technical assistance provider for each of fiscal years

6 1995 through 1997, regarding the activities of the

7 coordinator. The report shall be submitted not later

8 than 30 days after the conclusion of the fiscal year

9 for which the report is made.

10 ‘‘(2) TECHNICAL ASSISTANCE PROVIDERS.—

11 Each technical assistance provider receiving a grant

12 under this section shall submit a report to the Sec13 retary for each of fiscal years 1995 through 1997,

14 summarizing the information submitted under para15 graph (1) for the fiscal year and describing the ac16 tivities of the technical assistance provider under the

17 demonstration under this section during the fiscal

18 year. The report shall be submitted not later than

19 60 days after the conclusion of the fiscal year for

20 which the report is made.

21 ‘‘(3) SECRETARY.—The Secretary shall submit

22 a report to the Congress for each of fiscal years

23 1995 through 1997 describing the demonstration

24 under this section and the findings of the Secretary

25 as a result of the demonstration. The report shall be
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1 submitted not later than 90 days after the conclu2 sion of the fiscal year for which the report is made.

3 ‘‘(h) DEFINITIONS.—For purposes of this section:

4 ‘‘(1) ALASKAN NATIVE VILLAGE.—The term

5 ‘Alaskan Native Village’ has the same meaning given

6 the term ‘Native village’ in section 3 of the Alaska

7 Native Claims Settlement Act.

8 ‘‘(2) NATIVE AMERICAN OR ALASKAN NATIVE

9 HOUSING ORGANIZATION.—The term ‘Native Amer10 ican or Alaskan Native housing organization’ means

11 a nonprofit organization that primarily serves a tribe

12 or tribes, and includes Indian housing authorities

13 and other housing entities of a tribe.

14 ‘‘(3) NONPROFIT ORGANIZATION.—The term

15 ‘nonprofit organization’ means any private, nonprofit

16 organization that—

17 ‘‘(A) is organized or chartered under State,

18 tribal, or local laws;

19 ‘‘(B) has no part of its net earning inuring

20 to the benefit of any member, founder, contrib21 utor, or individual;

22 ‘‘(C) complies with standards of financial

23 accountability acceptable to the Secretary; and

24 ‘‘(D) through its articles of incorporation

25 or through resolution of the governing body of
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1 a tribe, has among its purposes significant ac2 tivities related to the provision of decent hous3 ing that is affordable to low- and moderate-in4 come families.

5 ‘‘(4) SELECTED AREA.—The term ‘selected

6 area’ means, with respect to any tribe selected under

7 subsection (e), the county or community meeting the

8 requirements of subsection (e)(1) in which the tribe

9 selected is located.

10 ‘‘(5) TECHNICAL ASSISTANCE PROVIDER.—The

11 term ‘technical assistance provider’ means a non12 profit organization that is selected under subsection

13 (f) to receive a grant under this section.

14 ‘‘(6) TRIBE.—The term ‘tribe’ means any In15 dian tribe, band, group, or nation, including Alaska

16 Indians, Aleuts, and Eskimos, and any Alaskan Na17 tive Village, of the United States, that is considered

18 an eligible recipient under the Indian Self-Deter19 mination and Education Assistance Act or was con20 sidered an eligible recipient under chapter 67 of title

21 31, prior to the repeal of such chapter.

22 ‘‘(i) NOTICE OF FUNDING AVAILABILITY.—

23 ‘‘(1) PUBLICATION.—The Secretary shall cause

24 to be published in the Federal Register notice of the

25 availability of any amounts made available for
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1 grants under this section. Such notice shall be pub2 lished not later than the expiration of the 90-day pe3 riod beginning on the date that amounts are appro4 priated to carry out this section.

5 ‘‘(2) CONTENTS.—The notice referred to in

6 paragraph (1) shall—

7 ‘‘(A) describe the requirements for eligi8 bility to receive a grant, the purposes of the

9 grant, and the permissible uses of grant

10 amounts;

11 ‘‘(B) contain an address to which requests

12 for additional information regarding the dem13 onstration under this section may be made; and

14 ‘‘(C) state the deadline established by the

15 Secretary pursuant to section (f)(2) for the sub16 mission of applications for a grant.’’.

17 SEC. 511. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

18 Title V of the Housing Act of 1949 (42 U.S.C. 1471

19 et seq.) is amended by inserting after section 538 (as

20 added by the preceding provisions of this title) the follow21 ing new section:

22 ‘‘SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

23 ‘‘(a) IN GENERAL.—The Secretary is authorized to

24 provide assistance to develop the capacity and ability of

25 community development corporations, community housing
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1 development organizations, and other nonprofit organiza2 tions to undertake community development and affordable

3 housing projects and programs in rural areas.

4 ‘‘(b) FORM OF ASSISTANCE.—Assistance under this

5 section may be used for—

6 ‘‘(1) training, education, support, and advice to

7 enhance the technical and administrative capabilities

8 of community development corporations, community

9 housing development organizations, and nonprofit

10 organizations in rural areas;

11 ‘‘(2) loans, grants, or predevelopment assistance

12 to community development corporations, community

13 housing development organizations, and nonprofit

14 organizations to carry out community development

15 and affordable housing activities that benefit low-in16 come families in rural areas; and

17 ‘‘(3) such other activities for rural areas as may

18 be determined by the Secretary.

19 ‘‘(c) MATCHING REQUIREMENT.—Assistance pro20 vided under this section shall be matched from private

21 sources in an amount equal to 3 times the amount made

22 available under this section.

23 ‘‘(d) IMPLEMENTATION.—The Secretary shall by no24 tice establish such requirements as may be necessary to
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1 carry out the provisions of this section. The notice shall

2 take effect upon issuance.’’.

3 SEC. 512. RURAL HOUSING LOAN DELEGATED PROCESSING

4 DEMONSTRATION.

5 (a) AUTHORITY.—Not later than the expiration of

6 the 180-day period beginning on the date of enactment

7 of this Act, the Secretary of Agriculture shall implement

8 a system for making, processing, and servicing loans

9 under section 502 of the Housing Act of 1949 that dele10 gates such functions to nonprofit organizations approved

11 by the Secretary of Agriculture. Under the system, the

12 Secretary shall retain the authority to approve loan

13 amounts and interest credit agreements and to execute

14 binding loan commitments and credit agreements.

15 (b) USE IN TARGETED UNDERSERVED AREAS.—The

16 Secretary of Agriculture shall carry out the delegated

17 processing system under subsection (a) only with respect

18 to loans for housing located in, and amounts reserved for

19 use in, areas for which a designation under section 509(f)

20 is in effect.

21 (c) REPORT.—The Secretary of Agriculture shall sub22 mit an interim report to the Congress not later than 12

23 months after the date of the initial implementation of the

24 delegated processing system under this section describing
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1 the activities taken under the system and evaluating the

2 effectiveness of the system.

3 (d) TERMINATION OF AUTHORITY.—The Secretary of

4 Agriculture may not carry out the delegated processing

5 system under this section after September 30, 1996.

6 TITLE VI—COMMUNITY

7 DEVELOPMENT

8 Subtitle A—Community

9 Development Block Grant Program

10 SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND

11 GUARANTEE AUTHORITY.

12 (a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—

13 The second sentence of section 103 of the Housing and

14 Community Development Act of 1974 (42 U.S.C. 5303)

15 is amended to read as follows: ‘‘For purposes of assistance

16 under section 106, there are authorized to be appropriated

17 $4,532,000,000 for fiscal year 1995 and $4,667,960,000

18 for fiscal year 1996.’’.

19 (b) LIMITATION ON LOAN GUARANTEES.—The fifth

20 sentence of section 108(a) of the Housing and Community

21 Development Act of 1974 (42 U.S.C. 5308(a)) is amended

22 to read as follows: ‘‘Notwithstanding any other provision

23 of law and subject only to the absence of qualified appli24 cants or proposed activities and to the authority provided

25 in this section, to the extent approved or provided in ap-
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1 propriation Acts, the Secretary shall enter into commit2 ments to guarantee notes and obligations under this sec3 tion with an aggregate principal amount of

4 $2,115,620,000 for fiscal year 1995 and $2,179,088,600

5 for fiscal year 1996.’’.

6 (c) SPECIAL PURPOSE GRANTS.—Section 107 of the

7 Housing and Community Development Act of 1974 (42

8 U.S.C. 5307(a)) is amended—

9 (1) by striking ‘‘SEC. 107’’ and all that follows

10 through the end of paragraph (1) and inserting the

11 following:

12 ‘‘SEC. 107. (a) AUTHORIZATION OF APPROPRIA13 TIONS.—

14 ‘‘(1) IN GENERAL.—There are authorized to be

15 appropriated for each of fiscal years 1995 and 1996,

16 $60,000,000, for grants under subsection (b). Of

17 such amounts—

18 ‘‘(A) $7,000,000 shall be available in each

19 such year for grants under subsection (b)(1);

20 ‘‘(B) $6,500,000 shall be available in each

21 such year for grants under subsection (b)(3);

22 ‘‘(C) $6,000,000 shall be available in each

23 such year for grants in each such year under

24 subsection (b)(5);
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1 ‘‘(D) $6,000,000 shall be available in each

2 such year for grants under subsection (b)(7);

3 ‘‘(E) $3,000,000 shall be available in each

4 such year for grants under subsection (c);

5 ‘‘(F) such sums as may be necessary shall

6 be available in each such year for grants under

7 paragraphs (2), (4), and (6) of subsection (b);

8 and

9 ‘‘(G) $2,000,000 shall be available in fiscal

10 year 1995 for a grant to the City of Bridgeport,

11 Connecticut, subject to binding commitments

12 made by the City of Bridgeport and the State

13 of Connecticut that the city and State, respec14 tively, will supplement such amount with

15 $2,000,000 of additional funds.’’.

16 (d) ELIGIBLE ACTIVITIES.—Section 105(a)(8) of the

17 Housing and Community Development Act of 1974 (42

18 U.S.C. 5305(a)(8)) is amended by striking ‘‘fiscal year

19 1994’’ and inserting ‘‘each of fiscal years 1994 and

20 1995’’.

21 SEC. 602. ECONOMIC DEVELOPMENT GRANTS.

22 (a) GRANT PROGRAM.—Section 108 of the Housing

23 and Community Development Act of 1974 (42 U.S.C.

24 5308) is amended by adding at the end the following new

25 subsection:
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1 ‘‘(q) ECONOMIC DEVELOPMENT GRANTS USING RE2 COVERED UDAG AMOUNTS.—

3 ‘‘(1) AUTHORITY.—The Secretary may, to the

4 extent provided in appropriation Acts, use any

5 amounts made available for assistance under section

6 119 and subsequently deobligated to make grants

7 under this subsection to eligible public entities, in

8 connection with notes or other obligations guaran9 teed under this section for such entities, for carrying

10 out economic development activities.

11 ‘‘(2) USE FOR ECONOMIC DEVELOPMENT AC12 TIVITIES.—The proceeds of the guaranteed loan

13 under this section and the grant under this sub14 section in connection with such loan shall be used

15 only to finance activities and projects eligible under

16 subsection (a)(3) and specified in an application sub17 mitted and approved under paragraph (3) by the

18 Secretary.

19 ‘‘(3) APPLICATION.—The Secretary may make

20 grants under this subsection to an eligible public en21 tity only pursuant to the receipt of an application by

22 the Secretary from the entity and approval of the

23 application by the Secretary. The Secretary shall

24 prescribe the form and manner of such applications

25 and shall require such applications to be submitted
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1 with or as part of an application for loan guarantee

2 assistance under this section.

3 ‘‘(4) FIRST-COME-FIRST-SERVED.—The Sec4 retary shall use amounts available for grants under

5 this section to make such grants for approved appli6 cations in the order in which such approved applica7 tions were submitted to the Secretary.

8 ‘‘(5) REGULATIONS.—The Secretary shall issue

9 any regulations necessary to carry out this sub10 section.’’.

11 (b) USE OF UDAG AMOUNTS.—Section 119(o) of the

12 Housing and Community Development Act of 1974 (42

13 U.S.C. 5318(o) is amended by striking ‘‘shall be’’ and all

14 that follows through ‘‘section 103’’ and inserting the fol15 lowing: ‘‘shall, as determined by the Secretary, be added

16 to amounts appropriated under section 103 or be used for

17 grants under section 108(q)’’.

18 (c) CDBG OBJECTIVES AND PLAN.—Title I of the

19 Housing and Community Development Act of 1974 (42

20 U.S.C. 5301 et seq.) is amended—

21 (A) in the second sentence of section 101(c), by

22 inserting after ‘‘section 108,’’ the following: ‘‘(and

23 any grant received under section 108(q))’’; and
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1 (B) in section 104(b)(3)(A), by inserting after

2 ‘‘section 108,’’ the following: ‘‘(and any grant re3 ceived under section 108(q))’’.

4 (d) REQUIREMENTS FOR GUARANTEES.—The second

5 sentence of section 108(a) of the Housing and Community

6 Development Act of 1974 (42 U.S.C. 5308(a)) is amended

7 to read as follows: ‘‘A guarantee under this section (in8 cluding a guarantee combined with a grant under sub9 section (q)) may be used to assist a grantee in obtaining

10 financing only if the grantee has made efforts to obtain

11 the financing without the use of the guarantee (and, if

12 applicable, the grant) and cannot complete the financing

13 consistent with the timely execution of the proposed activi14 ties and projects without the guarantee (or, if applicable,

15 the grant).’’.

16 SEC. 603. GUARANTEE OF OBLIGATIONS BACKED BY SEC17 TION 108 LOANS.

18 Section 108 of the Housing and Community Develop19 ment Act of 1974 (42 U.S.C. 5308) is amended by adding

20 after subsection (q) (as added by the preceding provisions

21 of this title) the following new subsection:

22 ‘‘(r) GUARANTEE OF OBLIGATIONS BACKED BY

23 LOANS.—

24 ‘‘(1) AUTHORITY.—The Secretary may, upon

25 such terms and conditions as the Secretary considers
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1 appropriate, guarantee the timely payment of the

2 principal of and interest on such trust certificates or

3 other obligations as may—

4 ‘‘(A) be offered by the Secretary or by any

5 other offeror approved for purposes of this sub6 section by the Secretary; and

7 ‘‘(B) be based on and backed by a trust or

8 pool composed of notes or other obligations

9 guaranteed or eligible for guarantee by the Sec10 retary under this section.

11 ‘‘(2) FULL FAITH AND CREDIT.—To the same

12 extent as provided in subsection (f), the full faith

13 and credit of the United States is pledged to the

14 payment of all amounts that may be required to be

15 paid under any guarantee made by the Secretary

16 under this subsection.

17 ‘‘(3) SUBROGATION.—If the Secretary pays a

18 claim under a guarantee made under this section, it

19 shall be subrogated fully to the rights satisfied by

20 such payment.

21 ‘‘(4) EFFECT OF LAWS.—No State or local law,

22 and no Federal law, shall preclude or limit the exer23 cise by the Secretary of—

24 ‘‘(A) the power to contract with respect to

25 public offerings and other sales of notes, trust
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1 certificates, and other obligations guaranteed

2 under this section upon such terms and condi3 tions as the Secretary deems appropriate;

4 ‘‘(B) the right to enforce any such contract

5 by any means deemed appropriate by the Sec6 retary; and

7 ‘‘(C) any ownership rights of the Sec8 retary, as applicable, in notes, certificates, or

9 other obligations guaranteed under this section,

10 or constituting the trust or pool against which

11 trust certificates, or other obligations guaran12 teed under this section, are offered.’’.

13 SEC. 604. SECTION 108 LOAN GUARANTEES FOR COLONIAS.

14 The first sentence of section 108(a) of the Housing

15 and Community Development Act of 1974 (42 U.S.C.

16 5308(a)) is amended—

17 (1) in clause (3), by striking ‘‘or’’ after ‘‘section

18 105(a);’’; and

19 (2) by inserting before the period at the end the

20 following: ’’; or (5) activities under section 105(a)(2)

21 with respect to colonias, as such term is defined in

22 section 916 of the Cranston-Gonzalez National Af23 fordable Housing Act’’.
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1 SEC. 605. ASSISTANCE FOR COLONIAS.

2 Section 916(f) of the Cranston-Gonzalez National Af3 fordable Housing Act (42 U.S.C. 5306 note) is amended

4 to read as follows:

5 ‘‘(f) APPLICABILITY.—This Act shall apply only with

6 respect to fiscal years 1991 through 1996.’’.

7 Subtitle B—Other Community

8 Development Programs

9 SEC. 631. NEIGHBORHOOD REINVESTMENT CORPORATION.

10 The first sentence of section 608(a)(1) of the Neigh11 borhood Reinvestment Corporation Act (42 U.S.C.

12 8107(a)) is amended to read as follows: ‘‘There are au13 thorized to be appropriated to the corporation to carry out

14 this title $32,960,000 for fiscal year 1995 and

15 $33,948,800 for fiscal year 1996.’’.

16 SEC. 632. JOHN HEINZ NEIGHBORHOOD DEVELOPMENT

17 PROGRAM.

18 (a) AUTHORIZATION.—Section 123(g) of the Housing

19 and Urban-Rural Recovery Act of 1983 (42 U.S.C. 5318

20 note) is amended to read as follows:

21 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated to carry out this section

23 $5,000,000 for fiscal year 1995 and $5,150,000 for fiscal

24 year 1996.’’.
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1 TITLE VII—REGULATORY AND

2 MISCELLANEOUS PROGRAMS

3 SEC. 701. FAIR HOUSING INITIATIVES PROGRAM.

4 Section 561(g) of the Housing and Community De5 velopment Act of 1987 (42 U.S.C. 3616 note) is amended

6 to read as follows:

7 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

8 are authorized to be appropriated to carry out the provi9 sions of this section $26,780,000 for fiscal year 1995 and

10 $27,583,400 for fiscal year 1996, of which—

11 ‘‘(1) not less than $3,820,000 for fiscal year

12 1995 and $8,500,000 for fiscal year 1996 shall be

13 for private enforcement initiatives authorized under

14 subsection (b), divided equally between activities

15 specified under subsection (b)(1) and those specified

16 under subsection (b)(2);

17 ‘‘(2) not less than $2,230,000 for fiscal year

18 1995 and $8,500,000 for fiscal year 1996 shall be

19 for qualified fair housing enforcement organizations

20 authorized under subsection (c)(1);

21 ‘‘(3) not less than $2,010,000 for fiscal year

22 1995 and $4,000,000 for fiscal year 1996 shall be

23 for the creation of new fair housing enforcement or24 ganizations authorized under subsection (c)(2); and
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1 ‘‘(4) not less than $2,540,000 for fiscal year

2 1995 and $5,000,000 for fiscal year 1996 shall be

3 for education and outreach programs authorized

4 under subsection (d), to be divided equally between

5 activities specified under subsection (d)(1) and those

6 specified under subsections (d)(2) and (d)(3).

7 Any amount appropriated under this section shall remain

8 available until expended.’’.

9 SEC. 702. HUD PROGRAM MONITORING AND RESEARCH.

10 The first sentence of section 7(r)(6) of the Depart11 ment of Housing and Urban Development Act (42 U.S.C.

12 3535(r)(6)) is amended to read as follows: ‘‘There are au13 thorized to be appropriated to carry out this subsection

14 such sums as may be necessary for fiscal years 1995 and

15 1996.’’.

16 SEC. 703. HUD SALARIES AND EXPENSES.

17 Section 7(s) of the Department of Housing and

18 Urban Development Act (42 U.S.C. 3535(s)) is amended

19 to read as follows:

20 ‘‘(s)(1) Notwithstanding any other provision of law,

21 there is authorized to be appropriated for salaries and ex22 penses to carry out the purposes of this section

23 $1,150,000,000 for fiscal year 1995 and $1,184,500,000

24 for fiscal year 1996.
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1 ‘‘(2) Of the amounts authorized to be appropriated

2 by this section, $96,000,000 shall be available for each

3 of the fiscal years 1995 and 1996, which amounts shall

4 be used to provide staff in regional, field, or zone offices

5 of the Department of Housing and Urban Development

6 to review, process, approve, and service applications for

7 mortgage insurance under title II of the National Housing

8 Act for housing consisting of 5 or more dwelling units.

9 ‘‘(3) Of the amounts authorized to be appropriated

10 to carry out this section, not less than $5,000,000 of such

11 amount shall be available for each of fiscal years 1995

12 and 1996 exclusively for the purposes of providing ongoing

13 training and capacity building for Department person14 nel.’’.

15 SEC. 704. SUBSIDY LAYERING REVIEW.

16 Section 911 of the Housing and Community Develop17 ment Act of 1992 (42 U.S.C. 3545 note) is amended—

18 (1) by striking subsection (a) and inserting the

19 following new subsection:

20 ‘‘(a) CERTIFICATION OF SUBSIDY LAYERING COM21 PLIANCE.—The requirements of section 102(d) of the De22 partment of Housing and Urban Development Reform Act

23 of 1989 may be satisfied in connection with a project re24 ceiving assistance under a program that is within the ju25 risdiction of the Department of Housing and Urban Devel-
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1 opment and under section 42 of the Internal Revenue

2 Code of 1986 by a certification by a housing credit agency

3 to the Secretary, submitted in accordance with guidelines

4 established by the Secretary, that the combination of as5 sistance within the jurisdiction of the Secretary and other

6 government assistance provided in connection with a prop7 erty for which assistance is to be provided within the juris8 diction of the Department of Housing and Urban Develop9 ment and under section 42 of the Internal Revenue Code

10 of 1986 shall not be any greater than is necessary to pro11 vide affordable housing.’’; and

12 (2) by striking subsection (c) and inserting the

13 following new subsection:

14 ‘‘(c) REVOCATION BY SECRETARY.—If the Secretary

15 determines that a housing credit agency has failed to com16 ply with the guidelines established under subsection (a),

17 the Secretary—

18 ‘‘(1) may inform the housing credit agency that

19 the agency may no longer submit certification of

20 subsidy layering compliance under this section; and

21 ‘‘(2) shall carry out section 102(d) of the Hous22 ing and Urban Development Reform Act relating to

23 affected projects allocated a low-income housing tax

24 credit pursuant to section 42 of the Internal Reve25 nue Code of 1986.’’.
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1 SEC. 705. HUD RESEARCH AND DEVELOPMENT.

2 The second sentence of section 501 of the Housing

3 and Urban Development Act of 1970 (12 U.S.C. 1701z–

4 1) is amended to read as follows: ‘‘There are authorized

5 to be appropriated to carry out this title $36,050,000 for

6 fiscal year 1995 and $37,131,500 for fiscal year 1996.’’.

7 SEC. 706. NATIONAL INSTITUTE OF BUILDING SCIENCES.

8 The second sentence of section 809(i) of the Housing

9 and Community Development Act of 1974 (12 U.S.C.

10 1701j–2(i)) is amended to read as follows: ‘‘In addition

11 to the amounts authorized to be appropriated under the

12 first sentence of this subsection, there are authorized to

13 be appropriated to the Institute to carry out the provisions

14 of this section $2,000,000 for fiscal year 1995 and

15 $2,000,000 for fiscal year 1996.’’.

16 SEC. 707. RESIDENTIAL LEAD-BASED PAINT HAZARD RE17 DUCTION.

18 (a) TARGET HOUSING HAZARD REDUCTION.—

19 (1) AUTHORIZATION OF APPROPRIATIONS.—

20 Section 1011(o) of the Housing and Community De21 velopment Act of 1992 (42 U.S.C. 4852(o)) is

22 amended to read as follows:

23 ‘‘(o) AUTHORIZATION OF APPROPRIATIONS.—For the

24 purposes of carrying out this Act, there are authorized to

25 be appropriated $257,500,000 for fiscal year 1995 and

26 $265,225,000 for fiscal year 1996.’’.
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1 (2) TECHNICAL ASSISTANCE AND CAPACITY

2 BUILDING.—Section 1011(g) of the Housing and

3 Community Development Act of 1992 (42 U.S.C.

4 4852(g)) is amended—

5 (A) in the second sentence of paragraph

6 (1), by striking ‘‘In fiscal years 1993 and

7 1994’’ and inserting the following: ‘‘In fiscal

8 years 1995 and 1996’’; and

9 (B) by striking paragraph (2) and insert10 ing the following new paragraph:

11 ‘‘(2) SET-ASIDE.—Of the total amount ap12 proved in appropriation Acts under subsection (o),

13 there shall be set aside to carry out this subsection

14 $3,000,000 for fiscal year 1995 and $3,000,000 for

15 fiscal year 1996.’’.

16 (b) HUD RESEARCH.—Section 1053 of the Housing

17 and Community Development Act of 1992 (42 U.S.C.

18 4854b) is amended to read as follows:

19 ‘‘SEC. 1053. FUNDING.

20 ‘‘Of the total amount approved in appropriation Acts

21 under section 1011(o), there shall be set aside to carry

22 out this part $5,000,000 for fiscal year 1995 and

23 $5,000,000 for fiscal year 1996.’’.
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1 SEC. 708. NEW TOWNS DEMONSTRATION PROGRAM FOR

2 EMERGENCY RELIEF OF LOS ANGELES.

3 (a) INSURANCE AUTHORITY.—The first sentence of

4 section 1104(d) of the Housing and Community Develop5 ment Act of 1992 (42 U.S.C. 5318 note) is amended to

6 read as follows: ‘‘To the extent provided in appropriation

7 Acts, the Secretary shall use any authority provided pur8 suant to section 531(b) of the National Housing Act to

9 enter into commitments to insure loans and mortgages

10 under this section in fiscal years 1995 and 1996 with an

11 aggregate principal amount not exceeding such sums as

12 may be necessary to carry out the demonstration under

13 this title.’’.

14 (b) SECOND MORTGAGE ASSISTANCE.—Section

15 1105(e) of the Housing and Community Development Act

16 of 1992 (42 U.S.C. 5318 note) is amended to read as fol17 lows:

18 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated for fiscal years 1995

20 and 1996 such sums as may be necessary for providing

21 assistance under this section.’’.

22 (c) COMMUNITY DEVELOPMENT ASSISTANCE.—Sec23 tion 1106(h) of the Housing and Community Development

24 Act of 1992 (42 U.S.C. 5318 note) is amended to read

25 as follows:
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1 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated for fiscal years 1995

3 and 1996 such sums as may be necessary for assistance

4 under this section.’’.

5 SEC. 709. SOLAR ASSISTANCE FINANCING ENTITY.

6 The first sentence of section 912(h) of the Housing

7 and Community Development Act of 1992 (42 U.S.C.

8 5511a(h)) is amended to read as follows: ‘‘There are au9 thorized to be appropriated to carry out this section

10 $10,732,600 for fiscal year 1995 and $11,054,578 for fis11 cal year 1996.’’.

12 SEC. 710. NATIONAL AMERICAN INDIAN HOUSING COUNCIL.

13 There is authorized to be appropriated for assistance

14 for the National American Indian Housing Council

15 $1,000,000 for fiscal year 1995 and $1,030,000 for fiscal

16 year 1996, for providing training and technical assistance

17 to Indian Housing Authorities.

18 SEC. 711. HOUSING ASSISTANCE COUNCIL.

19 There is authorized to be appropriated for assistance

20 for the Housing Assistance Council $5,000,000 for fiscal

21 year 1995 and $5,150,000 for fiscal year 1996, for provid22 ing training, technical assistance, and financial assistance

23 to develop affordable housing in rural areas.
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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 SEC. 811. EMERGENCY SHELTER GRANTS PROGRAM.

10 Section 417 of the Stewart B. McKinney Homeless

11 Assistance Act (42 U.S.C. 11377) is amended to read as

12 follows:

13 ‘‘SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘There are authorized to be appropriated to carry out

15 this subtitle $150,000,000 for fiscal year 1995 and

16 $154,500,000 for fiscal year 1996.’’.

17 SEC. 812. SUPPORTIVE HOUSING PROGRAM.

18 Section 429(a) of the Stewart B. McKinney Homeless

19 Assistance Act (42 U.S.C. 11389(a)) is amended to read

20 as follows:

21 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated to carry out this subtitle

23 $344,020,000 for fiscal year 1995 and $354,340,600 for

24 fiscal year 1996.’’.
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1 SEC. 813. SAFE HAVENS FOR HOMELESS INDIVIDUALS DEM2 ONSTRATION PROGRAM.

3 Section 439 of the Stewart B. McKinney Homeless

4 Assistance Act (42 U.S.C. 11399) is amended to read as

5 follows:

6 ‘‘SEC. 439. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘There are authorized to be appropriated to carry out

8 this subtitle $66,542,120 for fiscal year 1995 and

9 $68,538,384 for fiscal year 1996.’’.

10 SEC. 814. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU11 PANCY DWELLINGS.

12 Section 441(a) of the Stewart B. McKinney Homeless

13 Assistance Act (42 U.S.C. 11401(a)) is amended to read

14 as follows:

15 ‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budg16 et authority available under section 5(c) of the United

17 States Housing Act of 1937 for assistance under section

18 8(e)(2) of such Act (as in effect immediately before Octo19 ber 1, 1991) is authorized to be increased by

20 $200,000,000 on or after October 1, 1994, and by

21 $206,000,000 on or after October 1, 1995.’’.

22 SEC. 815. SHELTER PLUS CARE PROGRAM.

23 The first sentence of section 463(a) of the Stewart

24 B. McKinney Homeless Assistance Act (42 U.S.C.

25 11403h(a)) is amended to read as follows: ‘‘For purposes

26 of the housing programs under this subtitle, there are au-
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1 thorized to be appropriated $150,000,000 for fiscal year

2 1995 and $154,500,000 for fiscal year 1996.’’.

3 SEC. 816. RURAL HOMELESSNESS GRANT PROGRAM.

4 Section 491(l)(1) of the Stewart B. McKinney Home5 less Assistance Act (42 U.S.C. 11408(l)(1)) is amended

6 to read as follows:

7 ‘‘(1) IN GENERAL.—There are authorized to be

8 appropriated to carry out this section $32,197,800

9 for fiscal year 1995 and $33,163,734 for fiscal year

10 1996.’’.

11 SEC. 817. STRATEGY TO ELIMINATE UNFIT TRANSIENT FA12 CILITIES.

13 The first sentence of section 825(a) of the Cranston14 Gonzalez National Affordable Housing Act (42 U.S.C.

15 11301 note) is amended by striking ‘‘July 1, 1994’’ and

16 inserting ‘‘July 1, 1996’’.

17 SEC. 818. INNOVATIVE HOMELESS INITIATIVES DEM18 ONSTRATION PROGRAM.

19 (a) PROGRAM EXTENSION.—Section 2(g) of the

20 HUD Demonstration Act of 1993 (42 U.S.C. 11301 note)

21 is amended by striking ‘‘October 1, 1994’’ and inserting

22 ‘‘October 1, 1996’’.

23 (b) AUTHORIZATION OF APPROPRIATIONS.—The first

24 sentence of section 2(f) of the HUD Demonstration Act

25 of 1993 (42 U.S.C. 11301 note) is amended to read as
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1 follows: ‘‘There are authorized to be appropriated to carry

2 out this section $206,000,000 for fiscal year 1995 and

3 $212,180,000 for fiscal year 1996.’’.

4 Subtitle B—Interagency Council on

5 the Homeless

6 SEC. 831. AUTHORIZATION OF APPROPRIATIONS.

7 Section 208 of the Stewart B. McKinney Homeless

8 Assistance Act (42 U.S.C. 11318) is amended to read as

9 follows:

10 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

11 ‘‘There are authorized to be appropriated to carry out

12 this title $1,609,890 for fiscal year 1995 and $1,658,187

13 for fiscal year 1996.’’.

14 SEC. 832. EXTENSION.

15 Section 209 of the Stewart B. McKinney Homeless

16 Assistance Act (42 U.S.C. 11319) is amended by striking

17 ‘‘October 1, 1994’’ and inserting ‘‘October 1, 1996’’.

18 Subtitle C—Federal Emergency

19 Management Food and Shelter

20 Program

21 SEC. 851. AUTHORIZATION OF APPROPRIATIONS.

22 Section 322 of the Stewart B. McKinney Homeless

23 Assistance Act (42 U.S.C. 11352) is amended to read as

24 follows:
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1 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to carry out

3 this title $193,186,800 for fiscal year 1995 and

4 $198,982,404 for fiscal year 1996.’’.

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