104TH CONGRESS

2D SESSION S. 1494

AMENDMENT
In the House of Representatives, U. S.,

February 27, 1996.

Resolved, That the bill from the Senate (S. 1494) entitled ‘‘An Act to provide an extension for fiscal year 1996 for

certain programs administered by the Secretary of Housing

and Urban Development and the Secretary of Agriculture,

and for other purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause, and insert:
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Housing Opportunity

3 Program Extension Act of 1996’’.

4 SEC. 2. MULTIFAMILY HOUSING ASSISTANCE.

5 (a) SECTION 8 CONTRACT RENEWAL.—Notwithstand6 ing section 405(b) of the Balanced Budget Downpayment

7 Act, I (Public Law 104–99; 110 Stat. 44), at the request

8 of the owner of any project assisted under section 8(e)(2)

9 of the United States Housing Act of 1937 (as such section

10 existed immediately before October 1, 1991), the Secretary

11 of Housing and Urban Development may renew, for a pe12 riod of 1 year, the contract for assistance under such section

13 for such project that expires or terminates during fiscal

14 year 1996 at current rent levels.

15 (b) LOW-INCOME HOUSING PRESERVATION.—

16 (1) USE OF AMOUNTS.—Notwithstanding any

17 provision of the Balanced Budget Downpayment Act,

18 I (Public Law 104–99; 110 Stat. 26) or any other

19 law, the Secretary shall use the amounts described in

20 paragraph (2) of this subsection under the authority

21 and conditions provided in the 2d undesignated para22 graph of the item relating to ‘‘HOUSING PROGRAMS—

23 ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING’’ in

24 title II of the bill, H.R. 2099 (104th Congress), as

25 passed the House of Representatives on December 7,

26 1995; except that for purposes of this subsection, any
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1 reference in such undesignated paragraph to March 1,

2 1996, shall be construed to refer to April 15, 1996,

3 any reference in such paragraph to July 1, 1996,

4 shall be construed to refer to August 15, 1996, and

5 any reference in such paragraph to August 1, 1996,

6 shall be construed to refer to September 15, 1996.

7 (2) DESCRIPTION OF AMOUNTS.—Except as oth8 erwise provided in any future appropriation Act, the

9 amounts described under this paragraph are any

10 amounts that—

11 (A) are—

12 (i) unreserved, unobligated amounts

13 provided in an appropriation Act enacted

14 before the date of the enactment of this Act;

15 (ii) provided under the Balanced

16 Budget Downpayment Act, I; or

17 (iii) provided in any appropriation

18 Act enacted after the date of the enactment

19 of this Act; and

20 (B) are provided for use in conjunction

21 with properties that are eligible for assistance

22 under the Low-Income Housing Preservation

23 and Resident Homeownership Act of 1990 or the

24 Emergency Low Income Housing Preservation

25 Act of 1987.
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1 SEC. 3. COMMUNITY DEVELOPMENT BLOCK GRANTS.

2 (a) DIRECT HOMEOWNERSHIP ACTIVITIES.—Notwith3 standing the amendments made by section 907(b)(2) of the

4 Cranston-Gonzalez National Affordable Housing Act, sec5 tion 105(a)(25) of the Housing and Community Develop6 ment Act of 1974, as in existence on September 30, 1995,

7 shall apply to the use of assistance made available under

8 title I of the Housing and Community Development Act of

9 1974 during fiscal year 1996.

10 (b) INCREASE IN CUMULATIVE LIMIT.—Section

11 108(k)(1) of the Housing and Community Development Act

12 of 1974 (42 U.S.C. 5308(k)(1)) is amended by striking

13 ‘‘$3,500,000,000’’ and inserting ‘‘$4,500,000,000’’.

14 SEC. 4. EXTENSION OF RURAL HOUSING PROGRAMS.

15 (a) UNDERSERVED AREAS SET-ASIDE.—Section

16 509(f)(4)(A) of the Housing Act of 1949 (42 U.S.C.

17 1479(f)(4)(A)) is amended—

18 (1) in the first sentence, by striking ‘‘fiscal years

19 1993 and 1994’’ and inserting ‘‘fiscal year 1996’’;

20 and

21 (2) in the second sentence, by striking ‘‘each’’.

22 (b) RURAL MULTIFAMILY RENTAL HOUSING.—Section

23 515(b)(4) of the Housing Act of 1949 (42 U.S.C. 1485(b)(4))

24 is amended by striking ‘‘September 30, 1994’’ and inserting

25 ‘‘September 30, 1996’’.
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1 (c) RURAL RENTAL HOUSING FUNDS FOR NONPROFIT

2 ENTITIES.—The first sentence of section 515(w)(1) of the

3 Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is amended

4 by striking ‘‘fiscal years 1993 and 1994’’ and inserting ‘‘fis5 cal year 1996’’.

6 SEC. 5. LOAN GUARANTEES FOR MULTIFAMILY RENTAL

7 HOUSING IN RURAL AREAS.

8 (a) IN GENERAL.—The provisions of section 5 of the

9 bill, H.R. 1691 (104th Congress), as passed the House of

10 Representatives on October 30, 1995, are hereby enacted

11 into law.

12 (b) TECHNICAL AMENDMENT.—Section 538 of the

13 Housing Act of 1949 (as added by the amendment made

14 pursuant to subsection (a) of this section) is amended by

15 striking ‘‘Homesteading and Neighborhood Restoration Act

16 of 1995’’ each place it appears and inserting ‘‘Housing Op17 portunity Program Extension Act of 1996’’.

18 SEC. 6. EXTENSION OF FHA MORTGAGE INSURANCE PRO19 GRAM FOR HOME EQUITY CONVERSION

20 MORTGAGES.

21 (a) EXTENSION OF PROGRAM.—The first sentence of

22 section 255(g) of the National Housing Act (12 U.S.C.

23 1715z–20(g)) is amended by striking ‘‘September 30, 1996’’

24 and inserting ‘‘September 30, 2000’’.
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1 (b) LIMITATION ON NUMBER OF MORTGAGES.—The

2 second sentence of section 255(g) of the National Housing

3 Act (12 U.S.C. 1715z–20(g)) is amended by striking

4 ‘‘30,000’’ and inserting ‘‘50,000’’.

5 (c) ELIGIBLE MORTGAGES.—Section 255(d)(3) of the

6 National Housing Act (12 U.S.C. 1715z–20(d)(3)) is

7 amended to read as follows:

8 ‘‘(3) be secured by a dwelling that is designed

9 principally for a 1- to 4-family residence in which

10 the mortgagor occupies 1 of the units;’’.

11 SEC. 7. LIMITATION ON GNMA GUARANTEES OF MORTGAGE12 BACKED SECURITIES.

13 Section 306(g)(2) of the Federal National Mortgage As14 sociation Charter Act (12 U.S.C. 1721(g)(2)) is amended

15 to read as follows:

16 ‘‘(2) Notwithstanding any other provision of law and

17 subject only to the absence of qualified requests for guaran18 tees, to the authority provided in this subsection, and to

19 the extent of or in such amounts as any funding limitation

20 approved in appropriation Acts, the Association shall enter

21 into commitments to issue guarantees under this subsection

22 in an aggregate amount of $110,000,000,000 during fiscal

23 year 1996. There are authorized to be appropriated to cover

24 the costs (as such term is defined in section 502 of the Con25 gressional Budget Act of 1974) of guarantees issued under
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1 this Act by the Association such sums as may be necessary

2 for fiscal year 1996.’’.

3 SEC. 8. EXTENSION OF MULTIFAMILY HOUSING FINANCE

4 PROGRAMS.

5 (a) RISK-SHARING PILOT PROGRAM.—The first sen6 tence of section 542(b)(5) of the Housing and Community

7 Development Act of 1992 (12 U.S.C. 1707 note) is amended

8 by striking ‘‘on not more than 15,000 units over fiscal years

9 1993 and 1994’’ and inserting ‘‘on not more than 7,500

10 units during fiscal year 1996’’.

11 (b) HOUSING FINANCE AGENCY PILOT PROGRAM.—

12 The first sentence of section 542(c)(4) of the Housing and

13 Community Development Act of 1992 (12 U.S.C. 1707 note)

14 is amended by striking ‘‘on not to exceed 30,000 units over

15 fiscal years 1993, 1994, and 1995’’ and inserting ‘‘on not

16 more than 12,000 units during fiscal year 1996’’.

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

18 HOUSING.

19 (a) CONTRACT PROVISIONS AND REQUIREMENTS.—

20 Section 6 of the United States Housing Act of 1937 (42

21 U.S.C. 1437d) is amended—

22 (1) in subsection (k), in the matter following

23 paragraph (6)—

24 (A) by striking ‘‘on or near such premises’’

25 and inserting ‘‘on or off such premises’’; and
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1 (B) by striking ‘‘criminal’’ the first place it

2 appears; and

3 (2) in subsection (l)(5), by striking ‘‘on or near

4 such premises’’ and inserting ‘‘on or off such prem5 ises’’.

6 (b) AVAILABILITY OF CRIMINAL RECORDS FOR

7 SCREENING AND EVICTION.—Section 6 of the United States

8 Housing Act of 1937 (42 U.S.C. 1437d) is amended by add9 ing at the end the following new subsection:

10 ‘‘(q) AVAILABILITY OF RECORDS.—

11 ‘‘(1) IN GENERAL.—

12 ‘‘(A) PROVISION OF INFORMATION.—Not13 withstanding any other provision of law, except

14 as provided in subparagraph (B), the National

15 Crime Information Center, police departments,

16 and other law enforcement agencies shall, upon

17 request, provide information to public housing

18 agencies regarding the criminal conviction

19 records of adult applicants for, or tenants of,

20 public housing for purposes of applicant screen21 ing, lease enforcement, and eviction.

22 ‘‘(B) EXCEPTION.—A law enforcement agen23 cy described in subparagraph (A) shall provide

24 information under this paragraph relating to

25 any criminal conviction of a juvenile only to the
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1 extent that the release of such information is au2 thorized under the law of the applicable State,

3 tribe, or locality.

4 ‘‘(2) OPPORTUNITY TO DISPUTE.—Before an ad5 verse action is taken with regard to assistance under

6 this title on the basis of a criminal record, the public

7 housing agency shall provide the tenant or applicant

8 with a copy of the criminal record and an oppor9 tunity to dispute the accuracy and relevance of that

10 record.

11 ‘‘(3) FEE.—A public housing agency may be

12 charged a reasonable fee for information provided

13 under paragraph (1).

14 ‘‘(4) RECORDS MANAGEMENT.—Each public

15 housing agency shall establish and implement a sys16 tem of records management that ensures that any

17 criminal record received by the public housing agency

18 is—

19 ‘‘(A) maintained confidentially;

20 ‘‘(B) not misused or improperly dissemi21 nated; and

22 ‘‘(C) destroyed, once the purpose for which

23 the record was requested has been accomplished.

24 ‘‘(5) DEFINITION.—For purposes of this sub25 section, the term ‘adult’ means a person who is 18
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1 years of age or older, or who has been convicted of a

2 crime as an adult under any Federal, State, or tribal

3 law.’’.

4 (c) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG5 RELATED ACTIVITY.—Section 6 of the United States Hous6 ing Act of 1937 is amended by adding after subsection (q)

7 (as added by subsection (b) of this section) the following

8 new subsection:

9 ‘‘(r) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG10 RELATED ACTIVITY.—Any tenant evicted from housing as11 sisted under this title by reason of drug-related criminal

12 activity (as that term is defined in section 8(f)) shall not

13 be eligible for housing assistance under this title during the

14 3-year period beginning on the date of such eviction, unless

15 the evicted tenant successfully completes a rehabilitation

16 program approved by the public housing agency (which

17 shall include a waiver of this subsection if the circumstances

18 leading to eviction no longer exist).’’.

19 (d) INELIGIBILITY OF ILLEGAL DRUG USERS AND AL20 COHOL ABUSERS FOR ASSISTED HOUSING.—Section 16 of

21 the United States Housing Act of 1937 (42 U.S.C. 1437n)

22 is amended—

23 (1) in the section heading by striking ‘‘INCOME’’;

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

3 ‘‘(e) INELIGIBILITY OF ILLEGAL DRUG USERS AND AL4 COHOL ABUSERS.—

5 ‘‘(1) IN GENERAL.—Notwithstanding any other

6 provision of law, a public housing agency shall estab7 lish standards for occupancy in public housing dwell8 ing units and assistance under section 8—

9 ‘‘(A) that prohibit occupancy in any public

10 housing dwelling unit by, and assistance under

11 section 8 for, any person—

12 ‘‘(i) who the public housing agency de13 termines is illegally using a controlled sub14 stance; or

15 ‘‘(ii) if the public housing agency de16 termines that it has reasonable cause to be17 lieve that such person’s illegal use (or pat18 tern of illegal use) of a controlled substance,

19 or abuse (or pattern of abuse) of alcohol,

20 may interfere with the health, safety, or

21 right to peaceful enjoyment of the premises

22 by other residents of the project; and

23 ‘‘(B) that allow the public housing agency

24 to terminate the tenancy in any public housing
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1 unit of, and the assistance under section 8 for,

2 any person—

3 ‘‘(i) who the public housing agency de4 termines is illegally using a controlled sub5 stance; or

6 ‘‘(ii) whose illegal use of a controlled

7 substance, or whose abuse of alcohol, is de8 termined by the public housing agency to

9 interfere with the health, safety, or right to

10 peaceful enjoyment of the premises by other

11 residents of the project.

12 ‘‘(2) CONSIDERATION OF REHABILITATION.—In

13 determining whether, pursuant to paragraph (1), to

14 deny occupancy or assistance to any person based on

15 a pattern of use of a controlled substance or a pattern

16 of abuse of alcohol, a public housing agency may con17 sider whether such person—

18 ‘‘(A) has successfully completed a supervised

19 drug or alcohol rehabilitation program (as ap20 plicable) and is no longer engaging in the illegal

21 use of a controlled substance or abuse of alcohol

22 (as applicable);

23 ‘‘(B) has otherwise been rehabilitated suc24 cessfully and is no longer engaging in the illegal
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1 use of a controlled substance or abuse of alcohol

2 (as applicable); or

3 ‘‘(C) is participating in a supervised drug

4 or alcohol rehabilitation program (as applicable)

5 and is no longer engaging in the illegal use of

6 a controlled substance or abuse of alcohol (as ap7 plicable).

8 ‘‘(3) INAPPLICABILITY TO INDIAN HOUSING.—

9 This subsection does not apply to any dwelling unit

10 assisted by an Indian housing authority.’’.

11 SEC. 10. PUBLIC HOUSING DESIGNATED FOR ELDERLY AND

12 DISABLED FAMILIES.

13 (a) AUTHORITY FOR DESIGNATION.—Section 7 of the

14 United States Housing Act of 1937 (42 U.S.C. 1437e) is

15 amended to read as follows:

16 ‘‘DESIGNATED HOUSING FOR ELDERLY AND DISABLED

17 FAMILIES

18 ‘‘SEC. 7. (a) AUTHORITY TO PROVIDE DESIGNATED

19 HOUSING.—

20 ‘‘(1) IN GENERAL.—Subject only to provisions of

21 this section and notwithstanding any other provision

22 of law, a public housing agency for which a plan

23 under subsection (d) is in effect may provide public

24 housing projects (or portions of projects) designated

25 for occupancy by (A) only elderly families, (B) only

26 disabled families, or (C) elderly and disabled families.
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1 ‘‘(2) PRIORITY FOR OCCUPANCY.—In determin2 ing priority for admission to public housing projects

3 (or portions of projects) that are designated for occu4 pancy as provided in paragraph (1), the public hous5 ing agency may make units in such projects (or por6 tions) available only to the types of families for whom

7 the project is designated.

8 ‘‘(3) ELIGIBILITY OF NEAR-ELDERLY FAMI9 LIES.—If a public housing agency determines that

10 there are insufficient numbers of elderly families to

11 fill all the units in a project (or portion of a project)

12 designated under paragraph (1) for occupancy by

13 only elderly families, the agency may provide that

14 near-elderly families may occupy dwelling units in

15 the project (or portion).

16 ‘‘(b) STANDARDS REGARDING EVICTIONS.—Except as

17 provided in section 16(e)(1)(B), any tenant who is lawfully

18 residing in a dwelling unit in a public housing project may

19 not be evicted or otherwise required to vacate such unit be20 cause of the designation of the project (or portion of a

21 project) pursuant to this section or because of any action

22 taken by the Secretary or any public housing agency pursu23 ant to this section.

24 ‘‘(c) RELOCATION ASSISTANCE.—A public housing

25 agency that designates any existing project or building, or
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1 portion thereof, for occupancy as provided under subsection

2 (a)(1) shall provide, to each person and family who agrees

3 to be relocated in connection with such designation—

4 ‘‘(1) notice of the designation and an expla5 nation of available relocation benefits, as soon as is

6 practicable for the agency and the person or family;

7 ‘‘(2) access to comparable housing (including ap8 propriate services and design features), which may

9 include tenant-based rental assistance under section

10 8, at a rental rate paid by the tenant that is com11 parable to that applicable to the unit from which the

12 person or family has vacated; and

13 ‘‘(3) payment of actual, reasonable moving ex14 penses.

15 ‘‘(d) REQUIRED PLAN.—A plan under this subsection

16 for designating a project (or portion of a project) for occu17 pancy under subsection (a)(1) is a plan, prepared by the

18 public housing agency for the project and submitted to the

19 Secretary, that—

20 ‘‘(1) establishes that the designation of the

21 project is necessary—

22 ‘‘(A) to achieve the housing goals for the ju23 risdiction under the comprehensive housing af24 fordability strategy under section 105 of the
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1 Cranston-Gonzalez National Affordable Housing

2 Act; and

3 ‘‘(B) to meet the housing needs of the low4 income population of the jurisdiction; and

5 ‘‘(2) includes a description of—

6 ‘‘(A) the project (or portion of a project) to

7 be designated;

8 ‘‘(B) the types of tenants for which the

9 project is to be designated;

10 ‘‘(C) any supportive services to be provided

11 to tenants of the designated project (or portion);

12 ‘‘(D) how the design and related facilities

13 (as such term is defined in section 202(d)(8) of

14 the Housing Act of 1959) of the project accom15 modate the special environmental needs of the

16 intended occupants; and

17 ‘‘(E) any plans to secure additional re18 sources or housing assistance to provide assist19 ance to families that may have been housed if oc20 cupancy in the project were not restricted pursu21 ant to this section.

22 For purposes of this subsection, the term ‘supportive serv23 ices’ means services designed to meet the special needs of

24 residents.

25 ‘‘(e) REVIEW OF PLANS.—
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1 ‘‘(1) REVIEW AND NOTIFICATION.—The Secretary

2 shall conduct a limited review of each plan under

3 subsection (d) that is submitted to the Secretary to

4 ensure that the plan is complete and complies with

5 the requirements of subsection (d). The Secretary shall

6 notify each public housing agency submitting a plan

7 whether the plan complies with such requirements not

8 later than 60 days after receiving the plan. If the Sec9 retary does not notify the public housing agency, as

10 required under this paragraph or paragraph (2), the

11 plan shall be considered, for purposes of this section,

12 to comply with the requirements under subsection (d)

13 and the Secretary shall be considered to have notified

14 the agency of such compliance upon the expiration of

15 such 60-day period.

16 ‘‘(2) NOTICE OF REASONS FOR DETERMINATION

17 OF NONCOMPLIANCE.—If the Secretary determines

18 that a plan, as submitted, does not comply with the

19 requirements under subsection (d), the Secretary shall

20 specify in the notice under paragraph (1) the reasons

21 for the noncompliance and any modifications nec22 essary for the plan to meet such requirements.

23 ‘‘(3) STANDARDS FOR DETERMINATION OF NON24 COMPLIANCE.—The Secretary may determine that a
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1 plan does not comply with the requirements under

2 subsection (d) only if—

3 ‘‘(A) the plan is incomplete in significant

4 matters required under such subsection; or

5 ‘‘(B) there is evidence available to the Sec6 retary that challenges, in a substantial manner,

7 any information provided in the plan.

8 ‘‘(4) TREATMENT OF EXISTING PLANS.—Notwith9 standing any other provision of this section, a public

10 housing agency shall be considered to have submitted

11 a plan under this subsection if the agency has submit12 ted to the Secretary an application and allocation

13 plan under this section (as in effect before the date of

14 the enactment of the Housing Opportunity Program

15 Extension Act of 1996) that have not been approved

16 or disapproved before such date of enactment.

17 ‘‘(f) EFFECTIVENESS.—

18 ‘‘(1) 5-YEAR EFFECTIVENESS OF ORIGINAL

19 PLAN.—A plan under subsection (d) shall be in effect

20 for purposes of this section during the 5-year period

21 that begins upon notification under subsection (e)(1)

22 of the public housing agency that the plan complies

23 with the requirements under subsection (d).

24 ‘‘(2) RENEWAL OF PLAN.—Upon the expiration

25 of the 5-year period under paragraph (1) or any 2-
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1 year period under this paragraph, an agency may ex2 tend the effectiveness of the designation and plan for

3 an additional 2-year period (that begins upon such

4 expiration) by submitting to the Secretary any infor5 mation needed to update the plan. The Secretary may

6 not limit the number of times a public housing agen7 cy extends the effectiveness of a designation and plan

8 under this paragraph.

9 ‘‘(3) TRANSITION PROVISION.—Any application

10 and allocation plan approved under this section (as

11 in effect before the date of the enactment of the Hous12 ing Opportunity Program Extension Act of 1996) be13 fore such date of enactment shall be considered to be

14 a plan under subsection (d) that is in effect for pur15 poses of this section for the 5-year period beginning

16 upon such approval.

17 ‘‘(g) INAPPLICABILITY OF UNIFORM RELOCATION AS18 SISTANCE AND REAL PROPERTY ACQUISITIONS POLICY ACT

19 OF 1970.—No tenant of a public housing project shall be

20 considered to be displaced for purposes of the Uniform Relo21 cation Assistance and Real Property Acquisitions Policy

22 Act of 1970 because of the designation of any existing

23 project or building, or portion thereof, for occupancy as pro24 vided under subsection (a) of this section.
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1 ‘‘(h) INAPPLICABILITY TO INDIAN HOUSING.—The pro2 visions of this section shall not apply with respect to low3 income housing developed or operated pursuant to a con4 tract between the Secretary and an Indian housing author5 ity.’’.

6 (b) AUTHORIZATION OF APPROPRIATIONS FOR IMPLE7 MENTATION OF ALLOCATION PLANS.—There are authorized

8 to be appropriated for fiscal year 1996 such sums as may

9 be necessary for rental subsidy contracts under the existing

10 housing certificate and housing voucher programs under

11 section 8 of the United States Housing Act of 1937 for pub12 lic housing agencies to implement allocations plans for des13 ignated housing under section 7 of such Act that are ap14 proved by the Secretary of Housing and Urban Develop15 ment.

16 SEC. 11. ASSISTANCE FOR HABITAT FOR HUMANITY AND

17 OTHER SELF-HELP HOUSING PROVIDERS.

18 (a) GRANT AUTHORITY.—The Secretary of Housing

19 and Urban Development may, to the extent amounts are

20 available to carry out this section and the requirements of

21 this section are met, make grants for use in accordance with

22 this section to—

23 (1) Habitat for Humanity International, whose

24 organizational headquarters are located in Americus,

25 Georgia; and
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1 (2) other national or regional organizations or

2 consortia that have experience in providing or facili3 tating self-help housing homeownership opportunities.

4 (b) GOALS AND ACCOUNTABILITY.—In making grants

5 under this section, the Secretary shall take such actions as

6 may be necessary to ensure that—

7 (1) assistance provided under this section is used

8 to facilitate and encourage innovative homeownership

9 opportunities through the provision of self-help hous10 ing, under which the homeowner contributes a signifi11 cant amount of sweat equity toward the construction

12 of the new dwelling;

13 (2) assistance provided under this section for

14 land acquisition and infrastructure development re15 sults in the development of not less than 4,000 new

16 dwellings;

17 (3) the dwellings constructed in connection with

18 assistance provided under this section are quality

19 dwellings that comply with local building and safety

20 codes and standards and are available at prices below

21 the prevailing market prices;

22 (4) the provision of assistance under this section

23 establishes and fosters a partnership between the Fed24 eral Government and Habitat for Humanity Inter25 national, its affiliates, and other organizations and
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1 consortia, resulting in efficient development of afford2 able housing with minimal governmental interven3 tion, limited governmental regulation, and significant

4 involvement by private entities;

5 (5) activities to develop housing assisted pursu6 ant to this section involve community participation

7 similar to the homeownership program carried out by

8 Habitat for Humanity International, in which volun9 teers assist in the construction of dwellings; and

10 (6) dwellings are developed in connection with

11 assistance under this section on a geographically di12 verse basis, which includes areas having high housing

13 costs, rural areas, and areas underserved by other

14 homeownership opportunities that are populated by

15 low-income families unable to otherwise afford hous16 ing.

17 If, at any time, the Secretary determines that the goals

18 under this subsection cannot be met by providing assistance

19 in accordance with the terms of this section, the Secretary

20 shall immediately notify the applicable Committees in writ21 ing of such determination and any proposed changes for

22 such goals or this section.

23 (c) ALLOCATION.—Of any amounts available for

24 grants under this section—
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1 (1) 62.5 percent shall be used for a grant to the

2 organization specified in subsection (a)(1); and

3 (2) 37.5 percent shall be used for grants to orga4 nizations and consortia under subsection (a)(2).

5 (d) USE.—

6 (1) PURPOSE.—Amounts from grants made

7 under this section, including any recaptured

8 amounts, shall be used only for eligible expenses in

9 connection with developing new decent, safe, and san10 itary nonluxury dwellings in the United States for

11 families and persons who otherwise would be unable

12 to afford to purchase a dwelling.

13 (2) ELIGIBLE EXPENSES.—For purposes of para14 graph (1), the term ‘‘eligible expenses’’ means costs

15 only for the following activities:

16 (A) LAND ACQUISITION.—Acquiring land

17 (including financing and closing costs).

18 (B) INFRASTRUCTURE IMPROVEMENT.—In19 stalling, extending, constructing, rehabilitating,

20 or otherwise improving utilities and other infra21 structure.

22 Such term does not include any costs for the rehabili23 tation, improvement, or construction of dwellings.

24 (e) ESTABLISHMENT OF GRANT FUND.—
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1 (1) IN GENERAL.—Any amounts from any grant

2 made under this section shall be deposited by the

3 grantee organization or consortium in a fund that is

4 established by such organization or consortium for

5 such amounts, administered by such organization or

6 consortium, and available for use only for the pur7 poses under subsection (d). Any interest, fees, or other

8 earnings of the fund shall be deposited in the fund

9 and shall be considered grant amounts for purposes of

10 this section.

11 (2) ASSISTANCE TO HABITAT FOR HUMANITY AF12 FILIATES.—Habitat for Humanity International may

13 use amounts in the fund established for such organi14 zation pursuant to paragraph (1) for the purposes

15 under subsection (d) by providing assistance from the

16 fund to local affiliates of such organization.

17 (f) REQUIREMENTS FOR ASSISTANCE TO OTHER OR18 GANIZATIONS.—The Secretary may make a grant to an or19 ganization or consortium under subsection (a)(2) only pur20 suant to—

21 (1) an expression of interest by such organiza22 tion or consortia to the Secretary for a grant for such

23 purposes;

24 (2) a determination by the Secretary that the or25 ganization or consortia has the capability and has ob-
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1 tained financial commitments (or has the capacity to

2 obtain financial commitments) necessary to—

3 (A) develop not less than 30 dwellings in

4 connection with the grant amounts; and

5 (B) otherwise comply with a grant agree6 ment under subsection (i); and

7 (3) a grant agreement entered into under sub8 section (i).

9 (g) TREATMENT OF UNUSED AMOUNTS.—Upon the ex10 piration of the 6-month period beginning upon the Sec11 retary first providing notice of the availability of amounts

12 for grants under subsection (a)(2), the Secretary shall deter13 mine whether the amount remaining from the aggregate

14 amount reserved under subsection (c)(2) exceeds the amount

15 needed to provide funding in connection with any expres16 sions of interest under subsection (f)(1) made by such date

17 that are likely to result in grant agreements under sub18 section (i). If the Secretary determines that such excess

19 amounts remain, the Secretary shall provide the excess

20 amounts to Habitat for Humanity International by making

21 a grant to such organization in accordance with this sec22 tion.

23 (h) GEOGRAPHICAL DIVERSITY.—In using grant

24 amounts provided under subsection (a)(1), Habitat for Hu25 manity International shall ensure that the amounts are
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1 used in a manner that results in national geographic diver2 sity among housing developed using such amounts. In mak3 ing grants under subsection (a)(2), the Secretary shall en4 sure that grants are provided and grant amounts are used

5 in a manner that results in national geographic diversity

6 among housing developed using grant amounts under this

7 section.

8 (i) GRANT AGREEMENT.—A grant under this section

9 shall be made only pursuant to a grant agreement entered

10 into by the Secretary and the organization or consortia re11 ceiving the grant, which shall—

12 (1) require such organization or consortia to use

13 grant amounts only as provided in this section;

14 (2) provide for the organization or consortia to

15 develop a specific and reasonable number of dwellings

16 using the grant amounts, which number shall be es17 tablished taking into consideration costs and eco18 nomic conditions in the areas in which the dwellings

19 will be developed, but in no case shall be less than 30;

20 (3) require the organization or consortia to use

21 the grant amounts in a manner that leverages other

22 sources of funding (other than grants under this sec23 tion), including private or public funds, in developing

24 the dwellings;
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1 (4) require the organization or consortia to com2 ply with the other provisions of this section;

3 (5) provide that if the organization or consortia

4 has not used any grant amounts within 24 months

5 after such amounts are first disbursed to the organi6 zation or consortia, the Secretary shall recapture such

7 unused amounts; and

8 (6) contain such other terms as the Secretary

9 may require to provide for compliance with subsection

10 (b) and the requirements of this section.

11 (j) FULFILLMENT OF GRANT AGREEMENT.—If the Sec12 retary determines that an organization or consortia award13 ed a grant under this section has not, within 24 months

14 after grant amounts are first made available to the organi15 zation or consortia, substantially fulfilled the obligations

16 under the grant agreement, including development of the

17 appropriate number of dwellings under the agreement, the

18 Secretary shall use any such undisbursed amounts remain19 ing from such grant for other grants in accordance with

20 this section.

21 (k) RECORDS AND AUDITS.—During the period begin22 ning upon the making of a grant under this section and

23 ending upon close-out of the grant under subsection (l)—

24 (1) the organization awarded the grant under

25 subsection (a)(1) or (a)(2) shall keep such records and
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1 adopt such administrative practices as the Secretary

2 may require to ensure compliance with the provisions

3 of this section and the grant agreement; and

4 (2) the Secretary and the Comptroller General of

5 the United States, and any of their duly authorized

6 representatives, shall have access for the purpose of

7 audit and examination to any books, documents, pa8 pers, and records of the grantee organization or con9 sortia and its affiliates that are pertinent to the grant

10 made under this section.

11 (l) CLOSE-OUT.—The Secretary shall close out a grant

12 made under this section upon determining that the aggre13 gate amount of any assistance provided from the fund estab14 lished under subsection (e)(1) by the grantee organization

15 or consortium exceeds the amount of the grant. For purposes

16 of this paragraph, any interest, fees, and other earnings of

17 the fund shall be excluded from the amount of the grant.

18 (m) ENVIRONMENTAL REVIEW.—A grant under this

19 section shall be considered to be funds for a special project

20 for purposes of section 305(c) of the Multifamily Housing

21 Property Disposition Reform Act of 1994.

22 (n) REPORT TO CONGRESS.—Not later than 90 days

23 after close-out of all grants under this section is completed,

24 the Secretary shall submit a report to the applicable Com25 mittees describing the grants made under this section, the
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1 grantees, the housing developed in connection with the grant

2 amounts, and the purposes for which the grant amounts

3 were used.

4 (o) DEFINITIONS.—For purposes of this section, the

5 following definitions shall apply:

6 (1) APPLICABLE COMMITTEES.—The term ‘‘ap7 plicable Committees’’ means the Committee on Bank8 ing and Financial Services of the House of Represent9 atives and the Committee on Banking, Housing, and

10 Urban Affairs of the Senate.

11 (2) SECRETARY.—The term ‘‘Secretary’’ means

12 the Secretary of Housing and Urban Development.

13 (3) UNITED STATES.—The term ‘‘United States’’

14 includes the States of the United States, the District

15 of Columbia, the Commonwealth of Puerto Rico, the

16 Commonwealth of the Northern Mariana Islands,

17 Guam, the Virgin Islands, American Samoa, and any

18 other territory or possession of the United States.

19 (p) REGULATIONS.—The Secretary shall issue any

20 final regulations necessary to carry out this section not

21 later than 30 days after the date of the enactment of this

22 Act. The regulations shall take effect upon issuance and

23 may not exceed, in length, 5 full pages in the Federal Reg24 ister.
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1 SEC. 12. FUNDING FOR SELF-HELP HOUSING ASSISTANCE,

2 NATIONAL CITIES IN SCHOOLS COMMUNITY

3 DEVELOPMENT PROGRAM, AND CAPACITY

4 BUILDING THROUGH NATIONAL COMMUNITY

5 DEVELOPMENT INITIATIVE.

6 (a) AUTHORITY TO USE ASSISTED HOUSING

7 AMOUNTS.—To the extent and for the purposes specified in

8 subsection (b), the Secretary of Housing and Urban Devel9 opment may use amounts in the account of the Department

10 of Housing and Urban Development known as the Annual

11 Contributions for Assisted Housing account, but only such

12 amounts which—

13 (1) have been appropriated for a fiscal year that

14 occurs before the fiscal year for which the Secretary

15 uses the amounts; and

16 (2) have been obligated before becoming available

17 for use under this section.

18 (b) FISCAL YEAR 1996.—Of the amounts described in

19 subsection (a), $60,000,000 shall be available to the Sec20 retary of Housing and Urban Development for fiscal year

21 1996 in the following amounts for the following purposes:

22 (1) SELF-HELP HOUSING ASSISTANCE.—

23 $40,000,000 for carrying out section 11 of this Act.

24 (2) NATIONAL CITIES IN SCHOOLS COMMUNITY

25 DEVELOPMENT PROGRAM.—$10,000,000 for carrying

26 out section 930 of the Housing and Community De-
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1 velopment Act of 1992 (Public Law 102–550; 106

2 Stat. 3887).

3 (3) CAPACITY BUILDING THROUGH NATIONAL

4 COMMUNITY DEVELOPMENT INITIATIVE.—$10,000,000

5 for carrying out section 4 of the HUD Demonstration

6 Act of 1993 (42 U.S.C. 9816 note).

7 SEC. 13. APPLICABILITY AND IMPLEMENTATION.

8 (a) APPLICABILITY.—This Act and the amendments

9 made by this Act shall be construed to have become effective

10 on October 1, 1995.

11 (b) IMPLEMENTATION.—The amendments made by sec12 tions 9 and 10 shall apply as provided in subsection (a)

13 of this section, notwithstanding the effective date of any reg14 ulations issued by the Secretary of Housing and Urban De15 velopment to implement such amendments or any failure

16 by the Secretary to issue any such regulations.

Attest:

Clerk.