II

104TH CONGRESS

1ST SESSION S. 435

To provide for the elimination of the Department of Housing and Urban

Development, and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 16 (legislative day, JANUARY 30), 1995

Mr. FAIRCLOTH introduced the following bill; which was read twice and

referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To provide for the elimination of the Department of Housing

and Urban 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.

4 This Act may be cited as the ‘‘Department of Hous5 ing and Urban Development Elimination Act of 1995’’.
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1 TITLE I—ELIMINATION OF DE2 PARTMENT OF HOUSING AND

3 URBAN DEVELOPMENT

4 SEC. 101. ELIMINATION OF DEPARTMENT OF HOUSING AND

5 URBAN DEVELOPMENT.

6 (a) ELIMINATION.—The Department of Housing and

7 Urban Development Act (42 U.S.C. 3531 et seq.) is here8 by repealed.

9 (b) EFFECTIVE DATE.—Subsection (a) shall take ef10 fect on January 1, 1998.

11 SEC. 102. DUTIES OF THE SECRETARY.

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law, prior to January 1, 1998, the Secretary of

14 Housing and Urban Development (hereafter in this title

15 referred to as the ‘‘Secretary’’) shall take such actions as

16 may be necessary to—

17 (1) consolidate the programs administered by

18 the Department of Housing and Urban Development

19 into a block grant program;

20 (2) convert all funding for public and assisted

21 housing under the United States Housing Act of

22 1937 to tenant-based rental assistance;

23 (3) convert the Federal Housing Administration

24 into a government-controlled corporation, which

25 would provide mortgage insurance only to low- and
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1 moderate-income persons under risk-sharing agree2 ments with private mortgage insurers; and

3 (4) otherwise provide for the complete elimi4 nation of the Department of Housing and Urban

5 Development pursuant to section 101.

6 (b) SUBMISSIONS TO CONGRESS.—

7 (1) STRATEGIC PLAN.—Not later than 180 days

8 after the date of enactment of this Act, the Sec9 retary shall submit to the Congress a plan to carry

10 out subsection (a), which shall include any rec11 ommendations for—

12 (A) legislation necessary to carry out sub13 section (a);

14 (B) transfers of functions and activities,

15 including all existing obligations to other exist16 ing or successor Federal or State agencies.

17 (2) PRIVATIZATION OF FHA.—Not later than

18 180 days after the date of enactment of this Act, the

19 Secretary shall submit to the Congress a report

20 which shall include—

21 (A) recommendations and a strategic plan

22 for the complete privatization of the Federal

23 Housing Administration; and

24 (B) a description of the projected cost sav25 ings to the Federal Government that would be
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1 achieved through the complete privatization of

2 the Federal Housing Administration.

3 SEC. 103. CONGRESSIONAL BUDGET OFFICE RECOMMENDA4 TIONS.

5 Not later than 180 days after the date of enactment

6 of this Act, the Director of the Congressional Budget Of7 fice shall submit to the Committee on Banking, Housing,

8 and Urban Affairs of the Senate a list of recommendations

9 for minimizing the cost of Federal housing and community

10 development programs through the elimination of the De11 partment of Housing and Urban Development.

12 SEC. 104. GAO REPORT.

13 Not later than 180 days after the date of enactment

14 of this Act, the Comptroller General of the United States

15 shall submit to the Committee on Banking, Housing, and

16 Urban Affairs of the Senate a report which shall include

17 recommendations for the most efficient means of achiev18 ing—

19 (1) the complete elimination of the Department

20 of Housing and Urban Development; and

21 (2) the transfer of the functions of the Depart22 ment of Housing and Urban Development to other

23 existing or successor Federal or State agencies.
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1 TITLE II—TRANSFER OF FUNC2 TIONS AND SAVINGS PROVI3 SIONS

4 SEC. 201. DEFINITIONS.

5 For purposes of this title, unless otherwise provided

6 or indicated by the context—

7 (1) the term ‘‘Federal agency’’ has the meaning

8 given to the term ‘‘agency’’ by section 551(1) of title

9 5, United States Code;

10 (2) the term ‘‘function’’ means any duty, obli11 gation, power, authority, responsibility, right, privi12 lege, activity, or program; and

13 (3) the term ‘‘office’’ includes any office, ad14 ministration, agency, institute, unit, organizational

15 entity, or component thereof.

16 SEC. 202. TRANSFER OF FUNCTIONS.

17 There are transferred to the Department of Justice

18 all functions which the Secretary of Housing and Urban

19 Development exercised before the date of the enactment

20 of this title (including all related functions of any officer

21 or employee of the Department of Housing and Urban De22 velopment) relating to the Fair Housing Act or the rights

23 granted under the Fair Housing Act.
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1 SEC. 203. DETERMINATIONS OF CERTAIN FUNCTIONS BY

2 THE OFFICE OF MANAGEMENT AND BUDGET.

3 If necessary, the Office of Management and Budget

4 shall make any determination of the functions that are

5 transferred under section 202.

6 SEC. 204. PERSONNEL PROVISIONS.

7 (a) APPOINTMENTS.—The Attorney General may ap8 point and fix the compensation of such officers and em9 ployees, including investigators, attorneys, and adminis10 trative law judges, as may be necessary to carry out the

11 respective functions transferred under this title. Except as

12 otherwise provided by law, such officers and employees

13 shall be appointed in accordance with the civil service laws

14 and their compensation fixed in accordance with title 5,

15 United States Code.

16 (b) EXPERTS AND CONSULTANTS.—The Attorney

17 General may obtain the services of experts and consultants

18 in accordance with section 3109 of title 5, United States

19 Code, and compensate such experts and consultants for

20 each day (including travel time) at rates not in excess of

21 the rate of pay for level IV of the Executive Schedule

22 under section 5315 of such title. The Attorney General

23 may pay experts and consultants who are serving away

24 from their homes or regular place of business travel ex25 penses and per diem in lieu of subsistence at rates author-
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1 ized by sections 5702 and 5703 of such title for persons

2 in Government service employed intermittently.

3 SEC. 205. DELEGATION AND ASSIGNMENT.

4 Except where otherwise expressly prohibited by law

5 or otherwise provided by this title, the Attorney General

6 may delegate any of the functions transferred to the Attor7 ney General by this title and any function transferred or

8 granted to such Attorney General after the effective date

9 of this title to such officers and employees of the Depart10 ment of Justice as the Attorney General may designate,

11 and may authorize successive redelegations of such func12 tions as may be necessary or appropriate. No delegation

13 of functions by the Attorney General under this section

14 or under any other provision of this title shall relieve such

15 Attorney General of responsibility for the administration

16 of such functions.

17 SEC. 206. REORGANIZATION.

18 The Attorney General is authorized to allocate or re19 allocate any function transferred under section 202 among

20 the officers of the Department of Justice, and to establish,

21 consolidate, alter, or discontinue such organizational enti22 ties in the Department of Justice as may be necessary or

23 appropriate.
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1 SEC. 207. RULES.

2 The Attorney General is authorized to prescribe, in

3 accordance with the provisions of chapters 5 and 6 of title

4 5, United States Code, such rules and regulations as the

5 Attorney General determines necessary or appropriate to

6 administer and manage the functions of Department of

7 Justice.

8 SEC. 208. TRANSFER AND ALLOCATIONS OF APPROPRIA9 TIONS AND PERSONNEL.

10 Except as otherwise provided in this title, the person11 nel employed in connection with, and the assets, liabilities,

12 contracts, property, records, and unexpended balances of

13 appropriations, authorizations, allocations, and other

14 funds employed, used, held, arising from, available to, or

15 to be made available in connection with the functions

16 transferred by this title, subject to section 1531 of title

17 31, United States Code, shall be transferred to the De18 partment of Justice. Unexpended funds transferred pursu19 ant to this section shall be used only for the purposes for

20 which the funds were originally authorized and appro21 priated.

22 SEC. 209. INCIDENTAL TRANSFERS.

23 The Director of the Office of Management and Budg24 et, at such time or times as the Director shall provide,

25 is authorized to make such determinations as may be nec26 essary with regard to the functions transferred by this
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1 title, and to make such additional incidental dispositions

2 of personnel, assets, liabilities, grants, contracts, property,

3 records, and unexpended balances of appropriations, au4 thorizations, allocations, and other funds held, used, aris5 ing from, available to, or to be made available in connec6 tion with such functions, as may be necessary to carry out

7 the provisions of this title. The Director of the Office of

8 Management and Budget shall provide for the termination

9 of the affairs of all entities terminated by this title and

10 for such further measures and dispositions as may be nec11 essary to effectuate the purposes of this title.

12 SEC. 210. EFFECT ON PERSONNEL.

13 (a) IN GENERAL.—Except as otherwise provided by

14 this title, the transfer pursuant to this title of full-time

15 personnel (except special Government employees) and

16 part-time personnel holding permanent positions shall not

17 cause any such employee to be separated or reduced in

18 grade or compensation for one year after the date of trans19 fer of such employee under this title.

20 (b) EXECUTIVE SCHEDULE POSITIONS.—Except as

21 otherwise provided in this title, any person who, on the

22 day preceding the effective date of this title, held a posi23 tion compensated in accordance with the Executive Sched24 ule prescribed in chapter 53 of title 5, United States Code,

25 and who, without a break in service, is appointed in the
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1 Department of Justice to a position having duties com2 parable to the duties performed immediately preceding

3 such appointment shall continue to be compensated in

4 such new position at not less than the rate provided for

5 such previous position, for the duration of the service of

6 such person in such new position.

7 (c) TERMINATION OF CERTAIN POSITIONS.—Posi8 tions whose incumbents are appointed by the President,

9 by and with the advice and consent of the Senate, the

10 functions of which are transferred by this title, shall termi11 nate on the effective date of this title.

12 SEC. 211. SAVINGS PROVISIONS.

13 (a) CONTINUING EFFECT OF LEGAL DOCUMENTS.—

14 All orders, determinations, rules, regulations, permits,

15 agreements, grants, contracts, certificates, licenses, reg16 istrations, privileges, and other administrative actions—

17 (1) which have been issued, made, granted, or

18 allowed to become effective by the President, any

19 Federal agency or official thereof, or by a court of

20 competent jurisdiction, in the performance of func21 tions which are transferred under this title, and

22 (2) which are in effect at the time this title

23 takes effect, or were final before the effective date

24 of this title and are to become effective on or after

25 the effective date of this title,
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1 shall continue in effect according to their terms until

2 modified, terminated, superseded, set aside, or revoked in

3 accordance with law by the President, the Attorney Gen4 eral or other authorized official, a court of competent ju5 risdiction, or by operation of law.

6 (b) PROCEEDINGS NOT AFFECTED.—The provisions

7 of this title shall not affect any proceedings, including no8 tices of proposed rulemaking, or any application for any

9 license, permit, certificate, or financial assistance pending

10 before the Department of Housing and Urban Develop11 ment at the time this title takes effect, with respect to

12 functions transferred by this title but such proceedings

13 and applications shall be continued. Orders shall be issued

14 in such proceedings, appeals shall be taken therefrom, and

15 payments shall be made pursuant to such orders, as if this

16 title had not been enacted, and orders issued in any such

17 proceedings shall continue in effect until modified, termi18 nated, superseded, or revoked by a duly authorized official,

19 by a court of competent jurisdiction, or by operation of

20 law. Nothing in this subsection shall be deemed to prohibit

21 the discontinuance or modification of any such proceeding

22 under the same terms and conditions and to the same ex23 tent that such proceeding could have been discontinued

24 or modified if this title had not been enacted.
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1 (c) SUITS NOT AFFECTED.—The provisions of this

2 title shall not affect suits commenced before the effective

3 date of this title, and in all such suits, proceedings shall

4 be had, appeals taken, and judgments rendered in the

5 same manner and with the same effect as if this title had

6 not been enacted.

7 (d) NONABATEMENT OF ACTIONS.—No suit, action,

8 or other proceeding commenced by or against the Depart9 ment of Housing and Urban Development, or by or

10 against any individual in the official capacity of such indi11 vidual as an officer of the Department of Housing and

12 Urban Development, shall abate by reason of the enact13 ment of this title.

14 (e) ADMINISTRATIVE ACTIONS RELATING TO PRO15 MULGATION OF REGULATIONS.—Any administrative ac16 tion relating to the preparation or promulgation of a regu17 lation by the Department of Housing and Urban Develop18 ment relating to a function transferred under this title

19 may be continued by the Department of Justice with the

20 same effect as if this title had not been enacted.

21 SEC. 212. SEPARABILITY.

22 If a provision of this title or its application to any

23 person or circumstance is held invalid, neither the remain24 der of this title nor the application of the provision to

25 other persons or circumstances shall be affected.
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1 SEC. 213. TRANSITION.

2 The Attorney General is authorized to utilize—

3 (1) the services of such officers, employees, and

4 other personnel of the Department of Housing and

5 Urban Development with respect to functions trans6 ferred to the Department of Justice by this title;

7 and

8 (2) funds appropriated to such functions for

9 such period of time as may reasonably be needed to

10 facilitate the orderly implementation of this title.

11 SEC. 214. REFERENCES.

12 Reference in any other Federal law, Executive order,

13 rule, regulation, or delegation of authority, or any docu14 ment of or relating to—

15 (1) the Secretary of Housing and Urban Devel16 opment with regard to functions transferred under

17 section 202, shall be deemed to refer to the Attorney

18 General; and

19 (2) the Department of Housing and Urban De20 velopment with regard to functions transferred

21 under section 202, shall be deemed to refer to the

22 Department of Justice.

23 SEC. 215. ADDITIONAL CONFORMING AMENDMENTS.

24 (a) RECOMMENDED LEGISLATION.—After consulta25 tion with the appropriate committees of the Congress and

26 the Director of the Office of Management and Budget, the
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1 Attorney General shall prepare and submit to the Con2 gress recommended legislation containing technical and

3 conforming amendments to reflect the changes made by

4 this title.

5 (b) SUBMISSION TO THE CONGRESS.—No later than

6 6 months after the effective date of this title, the Attorney

7 General shall submit the recommended legislation referred

8 to under subsection (a).

9 SEC. 216. EFFECTIVE DATE.

10 This title shall take effect 180 days after the date

11 of enactment of this Act.

Æ