S. 1494

One Hundred Fourth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Wednesday,

the third day of January, one thousand nine hundred and ninety-six

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.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

Extension Act of 1996’’.

SEC. 2. MULTIFAMILY HOUSING ASSISTANCE.

(a) SECTION 8 CONTRACT RENEWAL.—Notwithstanding section

405(b) of the Balanced Budget Downpayment Act, I (Public Law

104–99; 110 Stat. 44), at the request of the owner of any project

assisted under section 8(e)(2) of the United States Housing Act

of 1937 (as such section existed immediately before October 1,

1991), the Secretary of Housing and Urban Development may

renew, for a period of 1 year, the contract for assistance under

such section for such project that expires or terminates during

fiscal year 1996 at current rent levels.

(b) LOW-INCOME HOUSING PRESERVATION.—

(1) USE OF AMOUNTS.—Notwithstanding any provision of

the Balanced Budget Downpayment Act, I (Public Law 104–

99; 110 Stat. 26) or any other law, the Secretary shall use

the amounts described in paragraph (2) of this subsection under

the authority and conditions provided in the second undesignated paragraph of the item relating to ‘‘HOUSING PROGRAMS—

ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING’’ in title II of

the bill, H.R. 2099 (104th Congress), as passed the House

of Representatives on December 7, 1995; except that for purposes of this subsection, any reference in such undesignated

paragraph to March 1, 1996, shall be construed to refer to

April 15, 1996, any reference in such paragraph to July 1,

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

any reference in such paragraph to August 1, 1996, shall be

construed to refer to September 15, 1996.

(2) DESCRIPTION OF AMOUNTS.—Except as otherwise provided in any future appropriation Act, the amounts described

under this paragraph are any amounts that—

(A) are—

(i) unreserved, unobligated amounts provided in

an appropriation Act enacted before the date of the

enactment of this Act;
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(ii) provided under the Balanced Budget Downpayment Act, I; or

(iii) provided in any appropriation Act enacted

after the date of the enactment of this Act; and

(B) are provided for use in conjunction with properties

that are eligible for assistance under the Low-Income Housing Preservation and Resident Homeownership Act of 1990

or the Emergency Low Income Housing Preservation Act

of 1987.

SEC. 3. COMMUNITY DEVELOPMENT BLOCK GRANTS.

(a) DIRECT HOMEOWNERSHIP ACTIVITIES.—Notwithstanding the

amendments made by section 907(b)(2) of the Cranston-Gonzalez

National Affordable Housing Act, section 105(a)(25) of the Housing

and Community Development Act of 1974, as in existence on

September 30, 1995, shall apply to the use of assistance made

available under title I of the Housing and Community Development

Act of 1974 during fiscal year 1996.

(b) INCREASE IN CUMULATIVE LIMIT.—Section 108(k)(1) of the

Housing and Community Development Act of 1974 (42 U.S.C.

5308(k)(1)) is amended by striking ‘‘$3,500,000,000’’ and inserting

‘‘$4,500,000,000’’.

SEC. 4. EXTENSION OF RURAL HOUSING PROGRAMS.

(a) UNDERSERVED AREAS SET-ASIDE.—Section 509(f)(4)(A) of the

Housing Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended—

(1) in the first sentence, by striking ‘‘fiscal years 1993

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

(2) in the second sentence, by striking ‘‘each’’. (b) RURAL MULTIFAMILY RENTAL HOUSING.—Section 515(b)(4)

of the Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended

by striking ‘‘September 30, 1994’’ and inserting ‘‘September 30,

1996’’.

(c) RURAL RENTAL HOUSING FUNDS FOR NONPROFIT ENTITIES.— The first sentence of section 515(w)(1) of the Housing Act of 1949

(42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fiscal years 1993

and 1994’’ and inserting ‘‘fiscal year 1996’’.

SEC. 5. LOAN GUARANTEES FOR MULTIFAMILY RENTAL HOUSING IN

RURAL AREAS.

(a) IN GENERAL.—The provisions of section 5 of the bill, H.R.

1691 (104th Congress), as passed the House of Representatives

on October 30, 1995, are hereby enacted into law. (b) TECHNICAL AMENDMENT.—Section 538 of the Housing Act of 1949 (as added by the amendment made pursuant to subsection

(a) of this section) is amended by striking ‘‘Homesteading and

Neighborhood Restoration Act of 1995’’ each place it appears and

inserting ‘‘Housing Opportunity Program Extension Act of 1996’’.

SEC. 6. EXTENSION OF FHA MORTGAGE INSURANCE PROGRAM FOR

HOME EQUITY CONVERSION MORTGAGES.

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

255(g) of the National Housing Act (12 U.S.C. 1715z–20(g)) is

amended by striking ‘‘September 30, 1996’’ and inserting ‘‘September 30, 2000’’.

(b) LIMITATION ON NUMBER OF MORTGAGES.—The second sentence of section 255(g) of the National Housing Act (12 U.S.C.

1715z–20(g)) is amended by striking ‘‘30,000’’ and inserting ‘‘50,000’’.
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(c) ELIGIBLE MORTGAGES.—Section 255(d)(3) of the National

Housing Act (12 U.S.C. 1715z–20(d)(3)) is amended to read as

follows:

‘‘(3) be secured by a dwelling that is designed principally for a 1- to 4-family residence in which the mortgagor occupies

1 of the units;’’.

SEC. 7. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-BACKED

SECURITIES.

Section 306(g)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1721(g)(2)) is amended to read as follows: ‘‘(2) Notwithstanding any other provision of law and subject only to the absence of qualified requests for guarantees, to the

authority provided in this subsection, and to the extent of or in

such amounts as any funding limitation approved in appropriation

Acts, the Association shall enter into commitments to issue guarantees under this subsection in an aggregate amount of

$110,000,000,000 during fiscal year 1996. There are authorized

to be appropriated to cover the costs (as such term is defined

in section 502 of the Congressional Budget Act of 1974) of guarantees issued under this Act by the Association such sums as may

be necessary for fiscal year 1996.’’.

SEC. 8. EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAMS.

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

of 1992 (12 U.S.C. 1707 note) is amended by striking ‘‘on not

more than 15,000 units over fiscal years 1993 and 1994’’ and inserting ‘‘on not more than 7,500 units during fiscal year 1996’’. (b) HOUSING FINANCE AGENCY PILOT PROGRAM.—The first sentence of section 542(c)(4) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended by striking

‘‘on not to exceed 30,000 units over fiscal years 1993, 1994, and

1995’’ and inserting ‘‘on not more than 12,000 units during fiscal

year 1996’’.

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

(a) CONTRACT PROVISIONS AND REQUIREMENTS.—Section 6 of

the United States Housing Act of 1937 (42 U.S.C. 1437d) is

amended—

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

(6)—

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

‘‘on or off such premises’’; and

(B) by striking ‘‘criminal’’ the first place it appears;

and

(2) in subsection (l)(5), by striking ‘‘on or near such premises’’ and inserting ‘‘on or off such premises’’.

(b) AVAILABILITY OF CRIMINAL RECORDS FOR SCREENING AND

EVICTION.—Section 6 of the United States Housing Act of 1937

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

new subsection:

‘‘(q) AVAILABILITY OF RECORDS.—

‘‘(1) IN GENERAL.—

‘‘(A) PROVISION OF INFORMATION.—Notwithstanding

any other provision of law, except as provided in subparagraph (B), the National Crime Information Center, police

departments, and other law enforcement agencies shall,
S. 1494—4

upon request, provide information to public housing agencies regarding the criminal conviction records of adult

applicants for, or tenants of, public housing for purposes

of applicant screening, lease enforcement, and eviction.

‘‘(B) EXCEPTION.—A law enforcement agency described

in subparagraph (A) shall provide information under this

paragraph relating to any criminal conviction of a juvenile

only to the extent that the release of such information

is authorized under the law of the applicable State, tribe,

or locality.

‘‘(2) OPPORTUNITY TO DISPUTE.—Before an adverse action

is taken with regard to assistance under this title on the

basis of a criminal record, the public housing agency shall

provide the tenant or applicant with a copy of the criminal

record and an opportunity to dispute the accuracy and relevance

of that record.

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

reasonable fee for information provided under paragraph (1).

‘‘(4) RECORDS MANAGEMENT.—Each public housing agency

shall establish and implement a system of records management

that ensures that any criminal record received by the public

housing agency is—

‘‘(A) maintained confidentially;

‘‘(B) not misused or improperly disseminated; and

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

was requested has been accomplished.

‘‘(5) DEFINITION.—For purposes of this subsection, the term

‘adult’ means a person who is 18 years of age or older, or

who has been convicted of a crime as an adult under any

Federal, State, or tribal law.’’.

(c) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG-RELATED

ACTIVITY.—Section 6 of the United States Housing Act of 1937 is amended by adding after subsection (q) (as added by subsection

(b) of this section) the following new subsection: ‘‘(r) INELIGIBILITY BECAUSE OF EVICTION FOR DRUG-RELATED

ACTIVITY.—Any tenant evicted from housing assisted under this title by reason of drug-related criminal activity (as that term is

defined in section 8(f)) shall not be eligible for housing assistance

under this title during the 3-year period beginning on the date

of such eviction, unless the evicted tenant successfully completes

a rehabilitation program approved by the public housing agency

(which shall include a waiver of this subsection if the circumstances

leading to eviction no longer exist).’’. (d) INELIGIBILITY OF ILLEGAL DRUG USERS AND ALCOHOL

ABUSERS FOR ASSISTED HOUSING.—Section 16 of the United States

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

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

(2) by adding at the end the following new subsection:

‘‘(e) INELIGIBILITY OF ILLEGAL DRUG USERS AND ALCOHOL

ABUSERS.—

‘‘(1) IN GENERAL.—Notwithstanding any other provision of

law, a public housing agency shall establish standards for occupancy in public housing dwelling units and assistance under

section 8—

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

dwelling unit by, and assistance under section 8 for, any

person—
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‘‘(i) who the public housing agency determines is illegally using a controlled substance; or ‘‘(ii) if the public housing agency determines that it has reasonable cause to believe that such person’s

illegal use (or pattern of illegal use) of a controlled

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

may interfere with the health, safety, or right to peaceful enjoyment of the premises by other residents of

the project; and

‘‘(B) that allow the public housing agency to terminate the tenancy in any public housing unit of, and the assistance under section 8 for, any person— ‘‘(i) who the public housing agency determines is illegally using a controlled substance; or ‘‘(ii) whose illegal use of a controlled substance, or whose abuse of alcohol, is determined by the public

housing agency to interfere with the health, safety,

or right to peaceful enjoyment of the premises by other

residents of the project. ‘‘(2) CONSIDERATION OF REHABILITATION.—In determining whether, pursuant to paragraph (1), to deny occupancy or

assistance to any person based on a pattern of use of a controlled substance or a pattern of abuse of alcohol, a public

housing agency may consider whether such person— ‘‘(A) has successfully completed a supervised drug or

alcohol rehabilitation program (as applicable) and is no

longer engaging in the illegal use of a controlled substance

or abuse of alcohol (as applicable);

‘‘(B) has otherwise been rehabilitated successfully and

is no longer engaging in the illegal use of a controlled

substance or abuse of alcohol (as applicable); or

‘‘(C) is participating in a supervised drug or alcohol

rehabilitation program (as applicable) and is no longer

engaging in the illegal use of a controlled substance or

abuse of alcohol (as applicable).

‘‘(3) INAPPLICABILITY TO INDIAN HOUSING.—This subsection

does not apply to any dwelling unit assisted by an Indian

housing authority.’’.

SEC. 10. PUBLIC HOUSING DESIGNATED FOR ELDERLY AND DISABLED

FAMILIES.

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

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

as follows:

‘‘DESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES

‘‘SEC. 7. (a) AUTHORITY TO PROVIDE DESIGNATED HOUSING.— ‘‘(1) IN GENERAL.—Subject only to provisions of this section

and notwithstanding any other provision of law, a public housing agency for which a plan under subsection (d) is in effect

may provide public housing projects (or portions of projects)

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

disabled families, or (C) elderly and disabled families.

‘‘(2) PRIORITY FOR OCCUPANCY.—In determining priority for

admission to public housing projects (or portions of projects)

that are designated for occupancy as provided in paragraph

(1), the public housing agency may make units in such projects
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(or portions) available only to the types of families for whom

the project is designated.

‘‘(3) ELIGIBILITY OF NEAR-ELDERLY FAMILIES.—If a public

housing agency determines that there are insufficient numbers

of elderly families to fill all the units in a project (or portion

of a project) designated under paragraph (1) for occupancy

by only elderly families, the agency may provide that nearelderly families may occupy dwelling units in the project (or

portion).

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

in section 16(e)(1)(B), any tenant who is lawfully residing in a

dwelling unit in a public housing project may not be evicted or

otherwise required to vacate such unit because of the designation

of the project (or portion of a project) pursuant to this section

or because of any action taken by the Secretary or any public

housing agency pursuant to this section.

‘‘(c) RELOCATION ASSISTANCE.—A public housing agency that

designates any existing project or building, or portion thereof, for

occupancy as provided under subsection (a)(1) shall provide, to

each person and family who agrees to be relocated in connection

with such designation—

‘‘(1) notice of the designation and an explanation of available relocation benefits, as soon as is practicable for the agency

and the person or family;

‘‘(2) access to comparable housing (including appropriate

services and design features), which may include tenant-based

rental assistance under section 8, at a rental rate paid by

the tenant that is comparable to that applicable to the unit

from which the person or family has vacated; and ‘‘(3) payment of actual, reasonable moving expenses. ‘‘(d) REQUIRED PLAN.—A plan under this subsection for designating a project (or portion of a project) for occupancy under

subsection (a)(1) is a plan, prepared by the public housing agency

for the project and submitted to the Secretary, that— ‘‘(1) establishes that the designation of the project is necessary—‘‘(A) to achieve the housing goals for the jurisdiction

under the comprehensive housing affordability strategy

under section 105 of the Cranston-Gonzalez National

Affordable Housing Act; and ‘‘(B) to meet the housing needs of the low-income population of the jurisdiction; and

‘‘(2) includes a description of—

‘‘(A) the project (or portion of a project) to be designated;

‘‘(B) the types of tenants for which the project is to

be designated;

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

of the designated project (or portion);

‘‘(D) how the design and related facilities (as such

term is defined in section 202(d)(8) of the Housing Act

of 1959) of the project accommodate the special environmental needs of the intended occupants; and

‘‘(E) any plans to secure additional resources or housing

assistance to provide assistance to families that may have

been housed if occupancy in the project were not restricted

pursuant to this section.
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For purposes of this subsection, the term ‘supportive services’ means

services designed to meet the special needs of residents.

‘‘(e) REVIEW OF PLANS.—

‘‘(1) REVIEW AND NOTIFICATION.—The Secretary shall conduct a limited review of each plan under subsection (d) that

is submitted to the Secretary to ensure that the plan is complete

and complies with the requirements of subsection (d). The

Secretary shall notify each public housing agency submitting

a plan whether the plan complies with such requirements not

later than 60 days after receiving the plan. If the Secretary

does not notify the public housing agency, as required under

this paragraph or paragraph (2), the plan shall be considered,

for purposes of this section, to comply with the requirements

under subsection (d) and the Secretary shall be considered

to have notified the agency of such compliance upon the expiration of such 60-day period.

‘‘(2) NOTICE OF REASONS FOR DETERMINATION OF NONCOMPLIANCE.—If the Secretary determines that a plan, as

submitted, does not comply with the requirements under subsection (d), the Secretary shall specify in the notice under

paragraph (1) the reasons for the noncompliance and any modifications necessary for the plan to meet such requirements.

‘‘(3) STANDARDS FOR DETERMINATION OF NONCOMPLIANCE.—

The Secretary may determine that a plan does not comply

with the requirements under subsection (d) only if—

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

required under such subsection; or

‘‘(B) there is evidence available to the Secretary that

challenges, in a substantial manner, any information provided in the plan.

‘‘(4) TREATMENT OF EXISTING PLANS.—Notwithstanding any

other provision of this section, a public housing agency shall

be considered to have submitted a plan under this subsection

if the agency has submitted to the Secretary an application

and allocation plan under this section (as in effect before the

date of the enactment of the Housing Opportunity Program

Extension Act of 1996) that have not been approved or disapproved before such date of enactment.

‘‘(f) EFFECTIVENESS.— ‘‘(1) 5-YEAR EFFECTIVENESS OF ORIGINAL PLAN.—A plan

under subsection (d) shall be in effect for purposes of this

section during the 5-year period that begins upon notification

under subsection (e)(1) of the public housing agency that the

plan complies with the requirements under subsection (d).

‘‘(2) RENEWAL OF PLAN.—Upon the expiration of the 5-

year period under paragraph (1) or any 2-year period under

this paragraph, an agency may extend the effectiveness of

the designation and plan for an additional 2-year period (that

begins upon such expiration) by submitting to the Secretary

any information needed to update the plan. The Secretary

may not limit the number of times a public housing agency

extends the effectiveness of a designation and plan under this

paragraph.

‘‘(3) TRANSITION PROVISION.—Any application and allocation

plan approved under this section (as in effect before the date

of the enactment of the Housing Opportunity Program Extension Act of 1996) before such date of enactment shall be consid-
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ered to be a plan under subsection (d) that is in effect for

purposes of this section for the 5-year period beginning upon

such approval.

‘‘(g) INAPPLICABILITY OF UNIFORM RELOCATION ASSISTANCE AND

REAL PROPERTY ACQUISITIONS POLICY ACT OF 1970.—No tenant

of a public housing project shall be considered to be displaced

for purposes of the Uniform Relocation Assistance and Real Property

Acquisitions Policy Act of 1970 because of the designation of any

existing project or building, or portion thereof, for occupancy as

provided under subsection (a) of this section.

‘‘(h) INAPPLICABILITY TO INDIAN HOUSING.—The provisions of

this section shall not apply with respect to low-income housing

developed or operated pursuant to a contract between the Secretary

and an Indian housing authority.’’.

(b) AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION

OF ALLOCATION PLANS.—There are authorized to be appropriated

for fiscal year 1996 such sums as may be necessary for rental

subsidy contracts under the existing housing certificate and housing

voucher programs under section 8 of the United States Housing

Act of 1937 for public housing agencies to implement allocations

plans for designated housing under section 7 of such Act that

are approved by the Secretary of Housing and Urban Development.

SEC. 11. ASSISTANCE FOR HABITAT FOR HUMANITY AND OTHER SELFHELP HOUSING PROVIDERS.

(a) GRANT AUTHORITY.—The Secretary of Housing and Urban

Development may, to the extent amounts are available to carry

out this section and the requirements of this section are met,

make grants for use in accordance with this section to—

(1) Habitat for Humanity International, whose organizational headquarters are located in Americus, Georgia; and

(2) other national or regional organizations or consortia

that have experience in providing or facilitating self-help housing homeownership opportunities.

(b) GOALS AND ACCOUNTABILITY.—In making grants under this

section, the Secretary shall take such actions as may be necessary

to ensure that—

(1) assistance provided under this section is used to facilitate and encourage innovative homeownership opportunities

through the provision of self-help housing, under which the

homeowner contributes a significant amount of sweat equity

toward the construction of the new dwelling;

(2) assistance provided under this section for land acquisition and infrastructure development results in the development

of not less than 4,000 new dwellings;

(3) the dwellings constructed in connection with assistance

provided under this section are quality dwellings that comply

with local building and safety codes and standards and are

available at prices below the prevailing market prices;

(4) the provision of assistance under this section establishes

and fosters a partnership between the Federal Government

and Habitat for Humanity International, its affiliates, and other

organizations and consortia, resulting in efficient development

of affordable housing with minimal governmental intervention,

limited governmental regulation, and significant involvement

by private entities;
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(5) activities to develop housing assisted pursuant to this

section involve community participation similar to the

homeownership program carried out by Habitat for Humanity

International, in which volunteers assist in the construction

of dwellings; and

(6) dwellings are developed in connection with assistance

under this section on a geographically diverse basis, which

includes areas having high housing costs, rural areas, and

areas underserved by other homeownership opportunities that

are populated by low-income families unable to otherwise afford

housing.

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

this subsection cannot be met by providing assistance in accordance

with the terms of this section, the Secretary shall immediately

notify the applicable Committees in writing of such determination

and any proposed changes for such goals or this section.

(c) ALLOCATION.—Of any amounts available for grants under

this section—

(1) 62.5 percent shall be used for a grant to the organization

specified in subsection (a)(1); and

(2) 37.5 percent shall be used for grants to organizations

and consortia under subsection (a)(2).

(d) USE.—

(1) PURPOSE.—Amounts from grants made under this section, including any recaptured amounts, shall be used only

for eligible expenses in connection with developing new decent,

safe, and sanitary nonluxury dwellings in the United States

for families and persons who otherwise would be unable to

afford to purchase a dwelling.

(2) ELIGIBLE EXPENSES.—For purposes of paragraph (1),

the term ‘‘eligible expenses’’ means costs only for the following

activities:

(A) LAND ACQUISITION.—Acquiring land (including

financing and closing costs).

(B) INFRASTRUCTURE IMPROVEMENT.—Installing,

extending, constructing, rehabilitating, or otherwise

improving utilities and other infrastructure.

Such term does not include any costs for the rehabilitation,

improvement, or construction of dwellings.

(e) ESTABLISHMENT OF GRANT FUND.—

(1) IN GENERAL.—Any amounts from any grant made under

this section shall be deposited by the grantee organization

or consortium in a fund that is established by such organization

or consortium for such amounts, administered by such organization or consortium, and available for use only for the purposes

under subsection (d). Any interest, fees, or other earnings of

the fund shall be deposited in the fund and shall be considered

grant amounts for purposes of this section.

(2) ASSISTANCE TO HABITAT FOR HUMANITY AFFILIATES.—

Habitat for Humanity International may use amounts in the

fund established for such organization pursuant to paragraph

(1) for the purposes under subsection (d) by providing assistance

from the fund to local affiliates of such organization.

(f) REQUIREMENTS FOR ASSISTANCE TO OTHER ORGANIZATIONS.—

The Secretary may make a grant to an organization or consortium

under subsection (a)(2) only pursuant to—
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(1) an expression of interest by such organization or consortia to the Secretary for a grant for such purposes;

(2) a determination by the Secretary that the organization

or consortia has the capability and has obtained financial

commitments (or has the capacity to obtain financial commitments) necessary to—

(A) develop not less than 30 dwellings in connection

with the grant amounts; and

(B) otherwise comply with a grant agreement under

subsection (i); and

(3) a grant agreement entered into under subsection (i).

(g) TREATMENT OF UNUSED AMOUNTS.—Upon the expiration

of the 6-month period beginning upon the Secretary first providing

notice of the availability of amounts for grants under subsection

(a)(2), the Secretary shall determine whether the amount remaining

from the aggregate amount reserved under subsection (c)(2) exceeds

the amount needed to provide funding in connection with any

expressions of interest under subsection (f)(1) made by such date

that are likely to result in grant agreements under subsection

(i). If the Secretary determines that such excess amounts remain,

the Secretary shall provide the excess amounts to Habitat for

Humanity International by making a grant to such organization

in accordance with this section.

(h) GEOGRAPHICAL DIVERSITY.—In using grant amounts provided under subsection (a)(1), Habitat for Humanity International

shall ensure that the amounts are used in a manner that results

in national geographic diversity among housing developed using

such amounts. In making grants under subsection (a)(2), the Secretary shall ensure that grants are provided and grant amounts

are used in a manner that results in national geographic diversity

among housing developed using grant amounts under this section.

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

made only pursuant to a grant agreement entered into by the

Secretary and the organization or consortia receiving the grant,

which shall—

(1) require such organization or consortia to use grant

amounts only as provided in this section;

(2) provide for the organization or consortia to develop

a specific and reasonable number of dwellings using the grant

amounts, which number shall be established taking into consideration costs and economic conditions in the areas in which

the dwellings will be developed, but in no case shall be less

than 30;

(3) require the organization or consortia to use the grant

amounts in a manner that leverages other sources of funding

(other than grants under this section), including private or

public funds, in developing the dwellings;

(4) require the organization or consortia to comply with

the other provisions of this section;

(5) provide that if the organization or consortia has not

used any grant amounts within 24 months after such amounts

are first disbursed to the organization or consortia, the Secretary shall recapture such unused amounts; and

(6) contain such other terms as the Secretary may require

to provide for compliance with subsection (b) and the requirements of this section.
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(j) FULFILLMENT OF GRANT AGREEMENT.—If the Secretary determines that an organization or consortia awarded a grant under

this section has not, within 24 months after grant amounts are

first made available to the organization or consortia, substantially

fulfilled the obligations under the grant agreement, including development of the appropriate number of dwellings under the agreement, the Secretary shall use any such undisbursed amounts

remaining from such grant for other grants in accordance with

this section.

(k) RECORDS AND AUDITS.—During the period beginning upon

the making of a grant under this section and ending upon closeout of the grant under subsection (l)—

(1) the organization awarded the grant under subsection

(a)(1) or (a)(2) shall keep such records and adopt such administrative practices as the Secretary may require to ensure compliance with the provisions of this section and the grant agreement; and

(2) the Secretary and the Comptroller General of the United

States, and any of their duly authorized representatives, shall

have access for the purpose of audit and examination to any

books, documents, papers, and records of the grantee organization or consortia and its affiliates that are pertinent to the

grant made under this section.

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

under this section upon determining that the aggregate amount

of any assistance provided from the fund established under subsection (e)(1) by the grantee organization or consortium exceeds

the amount of the grant. For purposes of this paragraph, any

interest, fees, and other earnings of the fund shall be excluded

from the amount of the grant. (m) ENVIRONMENTAL REVIEW.—A grant under this section shall

be considered to be funds for a special project for purposes of

section 305(c) of the Multifamily Housing Property Disposition

Reform Act of 1994.

(n) REPORT TO CONGRESS.—Not later than 90 days after closeout of all grants under this section is completed, the Secretary

shall submit a report to the applicable Committees describing the

grants made under this section, the grantees, the housing developed

in connection with the grant amounts, and the purposes for which

the grant amounts were used. (o) DEFINITIONS.—For purposes of this section, the following

definitions shall apply: (1) APPLICABLE COMMITTEES.—The term ‘‘applicable

Committees’’ means the Committee on Banking and Financial

Services of the House of Representatives and the Committee

on Banking, Housing, and Urban Affairs of the Senate.

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

of Housing and Urban Development.

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

the States of the United States, the District of Columbia, the

Commonwealth of Puerto Rico, the Commonwealth of the

Northern Mariana Islands, Guam, the Virgin Islands, American

Samoa, and any other territory or possession of the United

States.

(p) REGULATIONS.—The Secretary shall issue any final regulations necessary to carry out this section not later than 30 days

after the date of the enactment of this Act. The regulations shall
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take effect upon issuance and may not exceed, in length, 5 full

pages in the Federal Register.

SEC. 12. FUNDING FOR SELF-HELP HOUSING ASSISTANCE, NATIONAL

CITIES IN SCHOOLS COMMUNITY DEVELOPMENT PROGRAM,

AND CAPACITY BUILDING THROUGH NATIONAL COMMUNITY DEVELOPMENT INITIATIVE.

(a) AUTHORITY TO USE ASSISTED HOUSING AMOUNTS.—To the

extent and for the purposes specified in subsection (b), the Secretary

of Housing and Urban Development may use amounts in the

account of the Department of Housing and Urban Development

known as the Annual Contributions for Assisted Housing account,

but only such amounts which—

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

before the fiscal year for which the Secretary uses the amounts;

and

(2) have been obligated before becoming available for use

under this section.

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

(a), $60,000,000 shall be available to the Secretary of Housing

and Urban Development for fiscal year 1996 in the following

amounts for the following purposes:

(1) SELF-HELP HOUSING ASSISTANCE.—$40,000,000 for carrying out section 11 of this Act.

(2) NATIONAL CITIES IN SCHOOLS COMMUNITY DEVELOPMENT

PROGRAM.—$10,000,000 for carrying out section 930 of the

Housing and Community Development Act of 1992 (Public Law

102–550; 106 Stat. 3887).

(3) CAPACITY BUILDING THROUGH NATIONAL COMMUNITY

DEVELOPMENT INITIATIVE.—$10,000,000 for carrying out section

4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816

note).

SEC. 13. APPLICABILITY AND IMPLEMENTATION.

(a) APPLICABILITY.—This Act and the amendments made by

this Act shall be construed to have become effective on October

1, 1995.
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(b) IMPLEMENTATION.—The amendments made by sections 9

and 10 shall apply as provided in subsection (a) of this section,

notwithstanding the effective date of any regulations issued by

the Secretary of Housing and Urban Development to implement

such amendments or any failure by the Secretary to issue any

such regulations.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.