II

106TH CONGRESS

2D SESSION S. 2968

To empower communities and individuals by consolidating and reforming

the programs of the Department of Housing and Urban Development.

IN THE SENATE OF THE UNITED STATES

JULY 27, 2000

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

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To empower communities and individuals by consolidating

and reforming the programs of the Department of Housing and Urban Development.

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; TABLE OF CONTENTS.

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

5 ‘‘Local Housing Opportunities Act’’.

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

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

Sec. 3. Effective date.

TITLE I—PROGRAM CONSOLIDATION
2

•S 2968 IS

Sec. 101. Prohibition of unauthorized programs at the Department.

Sec. 102. Elimination and consolidation of HUD programs.

Sec. 103. HUD consolidation task force.

TITLE II—COMMUNITY EMPOWERMENT

Sec. 201. Reauthorization of community development block grants and prohibition of set-asides.

Sec. 202. Community notification of opt-outs.

Sec. 203. Urban homestead requirement.

Sec. 204. Authorization of Moving to Work program.

TITLE III—HOMELESS ASSISTANCE REFORM

Sec. 301. Consolidation of HUD homeless assistance funds.

Sec. 302. Establishment of the McKinney Homeless Assistance Performance

Fund.

Sec. 303. Repeal and savings provisions.

Sec. 304. Implementation.

TITLE IV—RURAL HOUSING

Sec. 401. Mutual and self-help housing technical assistance and training grants

authorization.

Sec. 402. Enhancement of the Rural Housing Repair loan program for the elderly.

Sec. 403. Enhancement of efficiency of rural housing preservation grants.

Sec. 404. Project accounting records and practices.

Sec. 405. Operating assistance for migrant farm worker projects.

TITLE V—VOUCHER REFORM

Sec. 501. Authorization of appropriations for rental vouchers for relocation of

witnesses and victims of crime.

Sec. 502. Revisions to the lease addendum.

Sec. 503. Report regarding housing voucher program.

Sec. 504. Conducting quality standard inspections on a property basis rather

than a unit basis.

TITLE VI—PROGRAM MODERNIZATION

Sec. 601. Assistance for self-help housing providers.

Sec. 602. Local capacity building for community development and affordable

housing.

Sec. 603. Work requirement for public housing residents: coordination of Federal housing assistance with State welfare reform work programs.

Sec. 604. Simplified FHA downpayment calculation.

Sec. 605. Flexible use of CDBG funds.

Sec. 606. Use of section 8 assistance in grandfamily housing assisted with

HOME funds.

Sec. 607. Section 8 homeownership option downpayment assistance.

Sec. 608. Reauthorization of Neighborhood Reinvestment Corporation.

TITLE VII—STATE HOUSING BLOCK GRANT

Sec. 701. State control of public and assisted housing funds.
3

•S 2968 IS

TITLE VIII—PRIVATE SECTOR INCENTIVES

Sec. 801. Sense of Congress regarding low-income housing tax credit State ceilings and private activity bond caps.

TITLE IX—ENFORCEMENT

Sec. 901. Prohibition on use of appropriated funds for lobbying by the department.

Sec. 902. Regulations.

1 SEC. 2. DEFINITIONS.

2 In this Act—

3 (1) the term ‘‘Committees’’ means—

4 (A) the Committee on Banking, Housing,

5 and Urban Affairs of the Senate and the Sub6 committee on Housing and Transportation of

7 that Committee; and

8 (B) the Committee on Banking and Finan9 cial Services of the House of Representatives

10 and the Subcommittee on Housing and Commu11 nity Opportunity of that Committee;

12 (2) the term ‘‘Department’’ means the Depart13 ment of Housing and Urban Development; and

14 (3) the term ‘‘Secretary’’ means the Secretary

15 of Housing and Urban Development.

16 SEC. 3. EFFECTIVE DATE.

17 Except as otherwise expressly provided in this Act or

18 an amendment made by this Act, this Act and the amend19 ments made by this Act shall take effect on October 1,

20 2001.
4

•S 2968 IS

1 TITLE I—PROGRAM

2 CONSOLIDATION

3 SEC. 101. PROHIBITION OF UNAUTHORIZED PROGRAMS AT

4 THE DEPARTMENT.

5 (a) IN GENERAL.—Beginning on the effective date of

6 this Act, the Secretary may not carry out any program

7 that is not explicitly authorized by Federal law.

8 (b) REPORT.—Not later than 60 days after the date

9 of enactment of this Act, the Secretary shall submit to

10 the Committees a report, which shall include a detailed

11 description of each program carried out by the Depart12 ment, and the statutory authorization for that program

13 or, if no explicit authorization exists, an explanation of

14 the legal authority under which the program is being car15 ried out.

16 SEC. 102. ELIMINATION AND CONSOLIDATION OF HUD PRO17 GRAMS.

18 (a) COMMUNITY INVESTMENT CORPORATION DEM19 ONSTRATION.—Section 853 of the Housing and Commu20 nity Development Act of 1992 (42 U.S.C. 5305 note) is

21 repealed.

22 (b) NEW TOWNS DEMONSTRATION PROGRAM FOR

23 EMERGENCY RELIEF OF LOS ANGELES.—Title XI of the

24 Housing and Community Development Act of 1992 (42

25 U.S.C. 5318 note) is repealed.
5

•S 2968 IS

1 (c) SOLAR ASSISTANCE FINANCING ENTITY.—Sec2 tion 912 of the Housing and Community Development Act

3 of 1992 (42 U.S.C. 5511a) is repealed.

4 (d) URBAN DEVELOPMENT ACTION GRANTS.—

5 (1) UDAG REPEAL.—Section 119 of the Hous6 ing and Community Development Act of 1974 (42

7 U.S.C. 5318) is repealed.

8 (2) CONFORMING AMENDMENTS.—Title I of the

9 Housing and Community Development Act of 1974

10 (42 U.S.C. 5301 et seq.) is amended—

11 (A) in section 104(d)(1), by striking ‘‘or

12 119’’ and ‘‘or section 119’’;

13 (B) in section 104(d)(2), by striking ‘‘or

14 119’’;

15 (C) in section 104(d)(2)(C), by striking

16 ‘‘or 119’’;

17 (D) in section 107(e)(1), by striking ‘‘,

18 section 106(a)(1), or section 119’’ and inserting

19 ‘‘or section 106(a)(1),’’;

20 (E) in section 107(e)(2), by striking ‘‘sec21 tion 106(a)(1), or section 119’’ and inserting

22 ‘‘or section 106(a)(1)’’; and

23 (F) in section 113(a)—

24 (i) in paragraph (2), by adding ‘‘and’’

25 at the end;
6

•S 2968 IS

1 (ii) by striking paragraph (3); and

2 (iii) by redesignating paragraph (4) as

3 paragraph (3).

4 (e) SPECIAL PURPOSE GRANTS.—Section 107 of the

5 Housing and Community Development Act of 1974 (42

6 U.S.C. 5307) is amended—

7 (1) in subsection (a)(1)—

8 (A) by striking subparagraphs (C), (D),

9 and (G);

10 (B) by redesignating subparagraphs (E),

11 (F), (H), and (I) as subparagraphs (C), (D),

12 (E), and (F), respectively; and

13 (C) in subparagraph (D) (as redesignated)

14 by striking ‘‘(6)’’ and inserting ‘‘(5)’’; and

15 (2) in subsection (b)—

16 (A) in paragraph (4), by adding ‘‘and’’ at

17 the end;

18 (B) by striking paragraphs (5) and (7);

19 (C) by redesignating paragraph (6) as

20 paragraph (5); and

21 (D) in paragraph (5) (as redesignated) by

22 striking ‘‘; and’’ and inserting a period.

23 (f) MODERATE REHABILITATION ASSISTANCE IN

24 DISASTERS.—Section 932 of the Cranston-Gonzalez Na-
7

•S 2968 IS

1 tional Affordable Housing Act (42 U.S.C. 1437c note) is

2 repealed.

3 (g) RENT SUPPLEMENT PROGRAM.—

4 (1) REPEAL.—Section 101 of the Housing and

5 Urban Development Act of 1965 (12 U.S.C. 1701s)

6 is repealed.

7 (2) REFERENCES.—Any reference in any provi8 sion of law to section 101 of the Housing and Urban

9 Development Act of 1965 (12 U.S.C. 1701s) shall be

10 construed to refer to that section as in existence im11 mediately before the effective date of this Act.

12 (h) NATIONAL HOMEOWNERSHIP TRUST DEM13 ONSTRATION.—Subtitle A of title III of the Cranston-Gon14 zalez National Affordable Housing Act (42 U.S.C. 12851

15 et seq.) is repealed.

16 (i) HOPE PROGRAMS.—

17 (1) REPEAL OF HOPE I PROGRAM.—

18 (A) HOPE I PROGRAM REPEAL.—Title III

19 of the United States Housing Act of 1937 (42

20 U.S.C. 1437aaa et seq.) is repealed.

21 (B) CONFORMING AMENDMENTS.—

22 (i) UNITED STATES HOUSING ACT OF

23 1937.—Section 8(b) of the United States

24 Housing Act of 1937 (42 U.S.C. 1437f(b))

25 is amended—
8

•S 2968 IS

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

2 ‘‘(1) IN GENERAL.—’’; and

3 (II) by striking paragraph (2).

4 (ii) HOUSING AND COMMUNITY DE5 VELOPMENT ACT OF 1974.—Section 213(e)

6 of the Housing and Community Develop7 ment Act of 1974 (42 U.S.C. 1439(e)) is

8 amended by striking ‘‘(b)(1)’’ and insert9 ing ‘‘(b)’’.

10 (2) REPEAL OF HOPE II AND III PROGRAMS.—

11 (A) HOPE II.—Subtitle B of title IV of the

12 Cranston-Gonzalez National Affordable Hous13 ing Act (42 U.S.C. 12871 et seq.) is repealed.

14 (B) HOPE III.—

15 (i) IN GENERAL.—Subtitle C of title

16 IV of the Cranston-Gonzalez National Af17 fordable Housing Act (42 U.S.C. 12891 et

18 seq.) is repealed.

19 (ii) CLOSEOUT AUTHORITY.—Notwith20 standing the repeal made by clause (i), the

21 Secretary may continue to exercise the au22 thority under sections 445(b), 445(c)(3),

23 445(c)(4), and 446(4) of title IV of the

24 Cranston-Gonzalez National Affordable

25 Housing Act (as amended by subparagraph
9

•S 2968 IS

1 (C) of this paragraph) after the effective

2 date of this Act, to the extent necessary to

3 terminate the programs under subtitle C of

4 title IV of that Act.

5 (C) AMENDMENT OF HOPE III PROGRAM

6 AUTHORITY FOR CLOSEOUT.—

7 (i) SALE AND RESALE PROCEEDS.—

8 Section 445 of the Cranston-Gonzalez Na9 tional Affordable Housing Act (42 U.S.C.

10 12895) is amended—

11 (I) in subsection (b), by striking

12 ‘‘costs’’ and all that follows through

13 ‘‘expenses,’’;

14 (II) in subsection (c)(3), by strik15 ing ‘‘the Secretary or’’; and

16 (III) in subsection (c)(4)—

17 (aa) in the first sentence, by

18 striking ‘‘Fifty percent of any’’

19 and inserting ‘‘Any’’; and

20 (bb) by striking the second

21 and third sentences.

22 (ii) ELIGIBILITY OF PRIVATE PROP23 ERTY.—Section 446(4) of the Cranston24 Gonzalez National Affordable Housing Act
10

•S 2968 IS

1 (42 U.S.C. 12896(4)) is amended to read

2 as follows:

3 ‘‘(4) The term ‘eligible property’ means a single

4 family property containing not more than 4 units

5 (excluding public housing under the United States

6 Housing Act of 1937, or Indian housing under the

7 Native American Housing Assistance and Self-De8 termination Act of 1996).’’.

9 (3) CONFORMING AMENDMENTS.—

10 (A) IN GENERAL.—Title IV of the Cran11 ston-Gonzalez National Affordable Housing Act

12 is amended—

13 (i) by striking sections 401 and 402

14 (42 U.S.C. 1437aaa note; 12870);

15 (ii) in section 454(b)(2) (42 U.S.C.

16 12899c(b)(2)), by striking ‘‘to be used for

17 the purposes of providing homeownership

18 under subtitle B and subtitle C of this

19 title’’; and

20 (iii) in section 455 (42 U.S.C.

21 12899d), by striking subsection (d) and re22 designating subsections (e) through (g) as

23 subsections (d) through (f), respectively.

24 (B) DEPARTMENT OF HOUSING AND

25 URBAN DEVELOPMENT ACT.—Section 7(r)(2) of
11

•S 2968 IS

1 the Department of Housing and Urban Devel2 opment Act (42 U.S.C. 3535(r)(2)) is

3 amended—

4 (i) in subparagraph (A), by striking

5 ‘‘titles I and II’’ and inserting ‘‘title I’’;

6 and

7 (ii) in subparagraph (K), by striking

8 ‘‘titles II, III, and IV’’ and inserting ‘‘title

9 II’’.

10 (j) ENERGY EFFICIENCY DEMONSTRATION.—Section

11 961 of the Cranston-Gonzalez National Affordable Hous12 ing Act (42 U.S.C. 12712 note) is repealed.

13 (k) TECHNICAL ASSISTANCE AND TRAINING FOR

14 IHAS.—Section 917 of the Housing and Community De15 velopment Act of 1992 (Public Law 102–550; 106 Stat.

16 3882) is repealed.

17 (l) ELIMINATION OF INVESTOR-OWNERS UNDER THE

18 SECTION 203(k) PROGRAM.—Section 203(g)(2) of the Na19 tional Housing Act (12 U.S.C. 1709(g)(2)) is amended—

20 (1) in subparagraph (D), by adding ‘‘or’’ at the

21 end;

22 (2) by striking subparagraph (E); and

23 (3) by redesignating subparagraph (F) as sub24 paragraph (E).
12

•S 2968 IS

1 (m) CERTIFICATE AND VOUCHER ASSISTANCE FOR

2 RENTAL REHABILITATION PROJECTS.—Section 8(u) of

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

4 1437f(u)) is repealed.

5 (n) MORTGAGE AND LOAN INSURANCE PROGRAMS.—

6 (1) IN GENERAL.—Sections 220(h), 245(b), and

7 titles VI, VII, and IX of the National Housing Act

8 are repealed.

9 (2) ADDITIONAL AMENDMENTS.—The National

10 Housing Act is amended—

11 (A) in section 1 (12 U.S.C. 1702), by

12 striking ‘‘VI, VII, VIII, IX’’ each place it ap13 pears and inserting ‘‘VIII,’’;

14 (B) in section 203(k)(5) (12 U.S.C.

15 1709(k)(5)), by striking the second sentence;

16 and

17 (C) in section 223 (12 U.S.C. 1715n)—

18 (i) by striking subsection (a) and in19 serting the following:

20 ‘‘(a) IN GENERAL.—Notwithstanding any of the pro21 visions of this Act and without regard to limitations upon

22 eligibility contained in any section or title of this Act,

23 other than the limitation in section 203(g), the Secretary

24 is authorized upon application by the mortgagee, to insure
13

•S 2968 IS

1 or make commitments to insure under any section or title

2 of this Act any mortgage—

3 ‘‘(1) given to refinance an existing mortgage in4 sured under this Act, except that the principal

5 amount of any such refinancing mortgage shall not

6 exceed the original principal amount or the unex7 pired term of such existing mortgage and shall bear

8 interest at such rate as may be agreed upon by the

9 mortgagor and the mortgagee, except that—

10 ‘‘(A) the principal amount of any such refi11 nancing mortgage may equal the outstanding

12 balance of an existing mortgage insured pursu13 ant to section 245, if the amount of the month14 ly payment due under the refinancing mortgage

15 is less than that due under the existing mort16 gage for the month in which the refinancing

17 mortgage is executed;

18 ‘‘(B) a mortgagee may not require a min19 imum principal amount to be outstanding on

20 the loan secured by the existing mortgage;

21 ‘‘(C) in any case involving the refinancing

22 of a loan in which the Secretary determines

23 that the insurance of a mortgage for an addi24 tional term will inure to the benefits of the ap25 plicable insurance fund, taking into consider-
14

•S 2968 IS

1 ation the outstanding insurance liability under

2 the existing insured mortgage, such refinancing

3 mortgage may have a term not more than

4 twelve years in excess of the unexpired term of

5 such existing insured mortgage; and

6 ‘‘(D) any multifamily mortgage that is re7 financed under this paragraph shall be docu8 mented through amendments to the existing in9 surance contract and shall not be structured

10 through the provisions of a new insurance con11 tract; or

12 ‘‘(2) executed in connection with the sale by the

13 Government of any housing acquired pursuant to

14 section 1013 of the Demonstration Cities and Metro15 politan Development Act of 1966.’’; and

16 (ii) in subsection (d)(5), by striking

17 ‘‘A loan’’ and all that follows through ‘‘and

18 loans’’ and inserting ‘‘Loans’’.

19 (o) TRANSITION RULES.—

20 (1) EFFECT ON CONTRACTS.—The repeal of

21 program authorities under this section shall not af22 fect any legally binding obligation entered into be23 fore the effective date of this Act.

24 (2) SAVINGS PROVISIONS.—
15

•S 2968 IS

1 (A) IN GENERAL.—Except as otherwise

2 provided in this Act, any funds or obligation

3 authorized by, activity conducted under, or

4 mortgage or loan insured under, a provision of

5 law repealed by this section shall continue to be

6 governed by the provision as in existence imme7 diately before the effective date of this Act.

8 (B) INSURANCE.—The insurance authori9 ties repealed by subsection (n)(1) and the provi10 sions of the National Housing Act applicable to

11 a mortgage or loan insured under any of such

12 authorities, as such authorities and provisions

13 existed immediately before repeal, shall con14 tinue to apply to a mortgage or loan insured

15 under any of such authorities prior to repeal,

16 and a mortgage or loan for which, prior to the

17 date of repeal, the Secretary has issued a firm

18 commitment for insurance under any of such

19 authorities or a Direct Endorsement under20 writer has approved, in a form acceptable to the

21 Secretary, a mortgage or loan for insurance

22 under such authorities.
16

•S 2968 IS

1 SEC. 103. HUD CONSOLIDATION TASK FORCE.

2 (a) IN GENERAL.—There is established a task force

3 to be known as the ‘‘HUD Consolidation Task Force’’,

4 which shall—

5 (1) consist of the Comptroller General of the

6 United States, the Secretary, and the Inspector Gen7 eral of the Department; and

8 (2) conduct an analysis of legislative and regu9 latory options to reduce the number of programs

10 carried out by the Department through consolida11 tion, elimination, and transfer to other departments

12 and agencies of the Federal government and to

13 State and local governments.

14 (b) REPORT.—Not later than 6 months after the ef15 fective date of this Act, the HUD Consolidation Task

16 Force shall submit to the Committees a report, which shall

17 include the results of the analysis under subsection (a)(2).

18 TITLE II—COMMUNITY

19 EMPOWERMENT

20 SEC. 201. REAUTHORIZATION OF COMMUNITY DEVELOP21 MENT BLOCK GRANTS AND PROHIBITION OF

22 SET-ASIDES.

23 (a) REAUTHORIZATION.—The last sentence of section

24 103 of the Housing and Community Development Act of

25 1974 (42 U.S.C. 5303) is amended to read as follows:

26 ‘‘For purposes of assistance under section 106, there is
17

•S 2968 IS

1 authorized to be appropriated $4,850,000,000 for fiscal

2 year 2001 and such sums as may be necessary for each

3 of fiscal years 2002 through 2005.’’.

4 (b) PROHIBITION OF SET-ASIDES.—Section 103 of

5 the Housing and Community Development Act of 1974

6 (42 U.S.C. 5303) is amended—

7 (1) by inserting ‘‘(a) IN GENERAL.—’’ after

8 ‘‘SEC. 103.’’; and

9 (2) by adding at the end the following:

10 ‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro11 vided in paragraphs (1) and (2) of section 106(a) and in

12 section 107, amounts appropriated pursuant to subsection

13 (a) of this section or otherwise to carry out this title (other

14 than section 108) shall be used only for formula-based

15 grants allocated pursuant to section 106 and may not be

16 otherwise used unless the provision of law providing for

17 such other use specifically refers to this subsection and

18 specifically states that such provision modifies or super19 sedes the provisions of this subsection.

20 ‘‘(c) POINT OF ORDER.—Notwithstanding any other

21 provision of law, it shall not be in order in the Senate

22 to consider any measure or amendment that provides for

23 a set-aside prohibited under subsection (b). The point of

24 order provided by this subsection may only be waived or
18

•S 2968 IS

1 suspended by a vote of three-fifths of the members of the

2 Senate duly chosen and sworn.’’.

3 SEC. 202. COMMUNITY NOTIFICATION OF OPT-OUTS.

4 Section 8(c)(8)(A) of the Housing Act of 1937 (42

5 U.S.C. 1437f(c)(8)(A)) is amended by adding at the end

6 the following: ‘‘Upon receipt of a written notice under this

7 subparagraph, the Secretary shall forward a copy of the

8 notice to the top elected official for the unit of local gov9 ernment in which the property is located.’’.

10 SEC. 203. URBAN HOMESTEAD REQUIREMENT.

11 (a) DISPOSITION OF UNOCCUPIED AND SUB12 STANDARD PUBLIC HOUSING.—

13 (1) PUBLICATION IN FEDERAL REGISTER.—

14 (A) IN GENERAL.—Subject to subpara15 graph (B), beginning 6 months after the effec16 tive date of this Act, and every 6 months there17 after, the Secretary shall publish in the Federal

18 Register a list of each unoccupied multifamily

19 housing project, substandard multifamily hous20 ing project, and other residential property that

21 is owned by the Secretary.

22 (B) EXCEPTION FOR CERTAIN PROJECTS

23 AND PROPERTIES.—

24 (i) PROJECTS.—A project described in

25 subparagraph (A) shall not be included in
19

•S 2968 IS

1 a list published under subparagraph (A) if

2 less than 6 months have elapsed since the

3 later of—

4 (I) the date on which the project

5 was acquired by the Secretary; or

6 (II) the date on which the project

7 was determined to be unoccupied or

8 substandard.

9 (ii) PROPERTIES.—A property de10 scribed in subparagraph (A) shall not be

11 included in a list published under subpara12 graph (A) if less than 6 months have

13 elapsed since the date on which the prop14 erty was acquired by the Secretary.

15 (b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD

16 HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND

17 COMMUNITY DEVELOPMENT CORPORATIONS.—Section

18 204 of the Departments of Veterans Affairs and Housing

19 and Urban Development, and Independent Agencies Ap20 propriations Act, 1997 (12 U.S.C. 1715z–11a) is

21 amended—

22 (1) by striking ‘‘FLEXIBLE AUTHORITY.—’’ and

23 inserting the following: ‘‘(a) FLEXIBLE AUTHORITY

24 FOR DISPOSITION OF MULTIFAMILY PROJECTS.—’’;

25 and
20

•S 2968 IS

1 (2) by adding at the end the following:

2 ‘‘(b) TRANSFER OF UNOCCUPIED AND SUBSTANDARD

3 HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY

4 DEVELOPMENT CORPORATIONS.—

5 ‘‘(1) DEFINITIONS.—In this subsection:

6 ‘‘(A) COMMUNITY DEVELOPMENT COR7 PORATION.—The term ‘community development

8 corporation’ means a nonprofit organization

9 whose primary purpose is to promote commu10 nity development by providing housing opportu11 nities for low-income families.

12 ‘‘(B) COST RECOVERY BASIS.—The term

13 ‘cost recovery basis’ means, with respect to any

14 sale of a residential property by the Secretary,

15 that the purchase price paid by the purchaser

16 is equal to or greater than or equal to the costs

17 incurred by the Secretary in connection with

18 such property during the period beginning on

19 the date on which the Secretary acquires title to

20 the property and ending on the date on which

21 the sale is consummated.

22 ‘‘(C) MULTIFAMILY HOUSING PROJECT.—

23 The term ‘multifamily housing project’ has the

24 meaning given the term in section 203 of the
21

•S 2968 IS

1 Housing and Community Development Amend2 ments of 1978.

3 ‘‘(D) QUALIFIED HUD PROPERTY.—The

4 term ‘qualified HUD property’ means any prop5 erty that is owned by the Secretary and is—

6 ‘‘(i) an unoccupied multifamily hous7 ing project;

8 ‘‘(ii) a substandard multifamily hous9 ing project; or

10 ‘‘(iii) an unoccupied single family

11 property that—

12 ‘‘(I) has been determined by the

13 Secretary not to be an eligible prop14 erty under section 204(h) of the Na15 tional Housing Act (12 U.S.C.

16 1710(h)); or

17 ‘‘(II) is an eligible property

18 under such section 204(h), but—

19 ‘‘(aa) is not subject to a spe20 cific sale agreement under such

21 section; and

22 ‘‘(bb) has been determined

23 by the Secretary to be inappro24 priate for continued inclusion in

25 the program under such section
22

•S 2968 IS

1 204(h) pursuant to paragraph

2 (10) of such section.

3 ‘‘(E) RESIDENTIAL PROPERTY.—The term

4 ‘residential property’ means a property that is

5 a multifamily housing project or a single family

6 property.

7 ‘‘(F) SECRETARY.—The term ‘Secretary’

8 means the Secretary of Housing and Urban De9 velopment.

10 ‘‘(G) SEVERE PHYSICAL PROBLEMS.—The

11 term ‘severe physical problems’ means, with re12 spect to a dwelling unit, that the unit—

13 ‘‘(i) lacks hot or cold piped water, a

14 flush toilet, or both a bathtub and a show15 er in the unit, for the exclusive use of that

16 unit;

17 ‘‘(ii) on not less than 3 separate occa18 sions during the preceding winter months,

19 was uncomfortably cold for a period of

20 more than 6 consecutive hours due to a

21 malfunction of the heating system for the

22 unit;

23 ‘‘(iii) has no functioning electrical

24 service, exposed wiring, any room in which

25 there is not a functioning electrical outlet,
23

•S 2968 IS

1 or has experienced 3 or more blown fuses

2 or tripped circuit breakers during the pre3 ceding 90-day period;

4 ‘‘(iv) is accessible through a public

5 hallway in which there are no working

6 light fixtures, loose or missing steps or

7 railings, and no elevator; or

8 ‘‘(v) has severe maintenance problems,

9 including water leaks involving the roof,

10 windows, doors, basement, or pipes or

11 plumbing fixtures, holes or open cracks in

12 walls or ceilings, severe paint peeling or

13 broken plaster, and signs of rodent infesta14 tion.

15 ‘‘(H) SINGLE FAMILY PROPERTY.—The

16 term ‘single family property’ means a 1- to 4-

17 family residence.

18 ‘‘(I) SUBSTANDARD.—The term ‘sub19 standard’ means, with respect to a multifamily

20 housing project, that 25 percent or more of the

21 dwelling units in the project have severe phys22 ical problems.

23 ‘‘(J) UNIT OF GENERAL LOCAL GOVERN24 MENT.—The term ‘unit of general local govern25 ment’ has the meaning given that term in sec-
24

•S 2968 IS

1 tion 102(a) of the Housing and Community De2 velopment Act of 1974.

3 ‘‘(K) UNOCCUPIED.—The term ‘unoccu4 pied’ means, with respect to a residential prop5 erty, that the unit of general local government

6 having jurisdiction over the area in which the

7 project is located has certified in writing that

8 the property is not inhabited.

9 ‘‘(2) TRANSFER AUTHORITY.—Notwithstanding

10 the authority under subsection (a) and the last sen11 tence of section 204(g) of the National Housing Act

12 (12 U.S.C. 1710(g)), the Secretary of Housing and

13 Urban Development shall transfer ownership of any

14 qualified HUD property included in the most recent

15 list published by the Secretary under subsection (a)

16 to a unit of general local government having juris17 diction for the area in which the property is located

18 or to a community development corporation which

19 operates within such a unit of general local govern20 ment in accordance with this subsection, but only to

21 the extent that units of general local government

22 and community development corporations submit a

23 written request for the transfer.

24 ‘‘(3) TIMING.—The Secretary shall establish

25 procedures that provide for—
25

•S 2968 IS

1 ‘‘(A) time deadlines for transfers under

2 this subsection;

3 ‘‘(B) notification to units of general local

4 government and community development cor5 porations of qualified HUD properties in their

6 jurisdictions;

7 ‘‘(C) such units and corporations to ex8 press interest in the transfer under this sub9 section of such properties;

10 ‘‘(D) a right of first refusal for transfer of

11 qualified HUD properties to such units and cor12 porations, under which the Secretary shall ac13 cept an offer to purchase such a property made

14 by such unit or corporation during a period es15 tablished by the Secretary, but in the case of an

16 offer made by a community development cor17 poration only if the offer provides for purchase

18 on a cost recovery basis; and

19 ‘‘(E) a written explanation, to any unit of

20 general local government or community develop21 ment corporation making an offer to purchase

22 a qualified HUD property under this subsection

23 that is not accepted, of the reason that such

24 offer was not acceptable.
26

•S 2968 IS

1 ‘‘(4) OTHER DISPOSITION.—With respect to

2 any qualified HUD property, if the Secretary does

3 not receive an acceptable offer to purchase the prop4 erty pursuant to the procedure established under

5 paragraph (3), the Secretary shall dispose of the

6 property to the unit of general local government in

7 which property is located or to community develop8 ment corporations located in such unit of general

9 local government on a negotiated, competitive bid, or

10 other basis, on such terms as the Secretary deems

11 appropriate.

12 ‘‘(5) SATISFACTION OF INDEBTEDNESS.—Be13 fore transferring ownership of any qualified HUD

14 property pursuant to this subsection, the Secretary

15 shall satisfy any indebtedness incurred in connection

16 with the property to be transferred, by canceling the

17 indebtedness.

18 ‘‘(6) DETERMINATION OF STATUS OF PROP19 ERTIES.—To ensure compliance with the require20 ments of this subsection, the Secretary shall take the

21 following actions:

22 ‘‘(A) UPON ENACTMENT.—Not later than

23 60 days after the effective date of the Local

24 Housing Opportunities Act, the Secretary shall

25 assess each residential property owned by the
27

•S 2968 IS

1 Secretary to determine whether the property is

2 a qualified HUD property.

3 ‘‘(B) UPON ACQUISITION.—Upon acquiring

4 any residential property, the Secretary shall

5 promptly determine whether the property is a

6 qualified HUD property.

7 ‘‘(C) UPDATES.—The Secretary shall peri8 odically reassess the residential properties

9 owned by the Secretary to determine whether

10 any such properties have become qualified

11 HUD properties.

12 ‘‘(7) TENANT LEASES.—This subsection shall

13 not affect the terms or the enforceability of any con14 tract or lease entered into with respect to any resi15 dential property before the date that such property

16 becomes a qualified HUD property.

17 ‘‘(8) USE OF PROPERTY.—Property transferred

18 under this subsection shall be used only for appro19 priate neighborhood revitalization efforts, including

20 homeownership, rental units, commercial space, and

21 parks, consistent with local zoning regulations, local

22 building codes, and subdivision regulations and re23 strictions of record.

24 ‘‘(9) INAPPLICABILITY TO PROPERTIES MADE

25 AVAILABLE FOR HOMELESS.—Notwithstanding any
28

•S 2968 IS

1 other provision of this subsection, this subsection

2 shall not apply to any property that the Secretary

3 determines is to be made available for use by the

4 homeless pursuant to subpart E of part 291 of title

5 24, Code of Federal Regulations (as in effect on

6 January 1, 2000), during the period that the prop7 erties are so available.

8 ‘‘(10) PROTECTION OF EXISTING CONTRACTS.—

9 This subsection may not be construed to alter, af10 fect, or annul any legally binding obligations entered

11 into with respect to a qualified HUD property before

12 the property becomes a qualified HUD property.’’.

13 (c) PROCEDURES.—Not later than 6 months after the

14 date of enactment of this Act, the Secretary shall estab15 lish, by rule, regulation, or order, such procedures as may

16 be necessary to carry out this section and the amendments

17 made by this section.

18 SEC. 204. AUTHORIZATION OF MOVING TO WORK PRO19 GRAM.

20 Section 204 of the Departments of Veterans Affairs

21 and Housing and Urban Development, and Independent

22 Agencies Appropriations Act, 1996 (as contained in sec23 tion 101(e) of the Omnibus Consolidated Rescissions and

24 Appropriations Act of 1996) (42 U.S.C. 1437f note) is

25 amended—
29

•S 2968 IS

1 (1) in the section heading, by striking ‘‘DEM2 ONSTRATION’’ and inserting ‘‘PROGRAM’’;

3 (2) in subsection (a), by striking ‘‘this dem4 onstration’’ and inserting ‘‘this section’’;

5 (3) in subsection (b)—

6 (A) in the first sentence—

7 (i) by striking ‘‘demonstration’’; and

8 (ii) by striking ‘‘up to 30’’;

9 (B) in the third sentence, by striking

10 ‘‘Under the demonstration, notwithstanding’’

11 and inserting ‘‘Notwithstanding’’; and

12 (C) by striking the second sentence;

13 (4) in subsection (c)—

14 (A) in the matter preceding paragraph (1),

15 by striking ‘‘demonstration’’ and inserting ‘‘pro16 gram under this section’’;

17 (B) in paragraph (3)—

18 (i) in subparagraph (A), by striking

19 ‘‘demonstration’’;

20 (ii) in subparagraph (B), by striking

21 ‘‘demonstration’’ and inserting ‘‘section’’;

22 and

23 (iii) in subparagraph (E), by striking

24 ‘‘demonstration program’’ and inserting

25 ‘‘program under this section’’; and
30

•S 2968 IS

1 (C) in paragraph (4), by striking ‘‘dem2 onstration’’ and inserting ‘‘program under this

3 section’’;

4 (5) by striking subsection (d) and inserting the

5 following:

6 ‘‘(d) APPROVAL OF APPLICATIONS.—Not later than

7 60 days after receiving an application submitted in accord8 ance with subsection (c), the Secretary shall approve the

9 application, unless the Secretary makes a written deter10 mination that the applicant has a most recent score under

11 the public housing management assessment program

12 under section 6(j)(2) of the United States Housing Act

13 of 1937 (or any successor assessment program for public

14 housing agencies), that is among the lowest 20 percent

15 of the scores of all public housing agencies.’’;

16 (6) in subsection (e)—

17 (A) in paragraph (1), by striking ‘‘this

18 demonstration’’ and inserting ‘‘the program

19 under this section’’; and

20 (B) in paragraph (2), by striking ‘‘dem21 onstration’’ and inserting ‘‘program under this

22 section’’;

23 (7) in subsection (f), by striking ‘‘demonstra24 tion under this part’’ and inserting ‘‘program under

25 this section’’;
31

•S 2968 IS

1 (8) in subsection (g)—

2 (A) in paragraph (1), by striking ‘‘this

3 demonstration’’ and inserting ‘‘the program

4 under this section’’; and

5 (B) in paragraph (2), by striking ‘‘dem6 onstration’’ and inserting ‘‘program under this

7 section’’;

8 (9) in subsection (h), by striking ‘‘demonstra9 tion’’ each place it appears and inserting ‘‘program

10 under this section’’;

11 (10) in subsection (i), by striking ‘‘demonstra12 tion’’ and inserting ‘‘program under this section’’;

13 and

14 (11) in subsection (j), by striking ‘‘demonstra15 tion’’ and inserting ‘‘program’’.

16 TITLE III—HOMELESS

17 ASSISTANCE REFORM

18 SEC. 301. CONSOLIDATION OF HUD HOMELESS ASSISTANCE

19 FUNDS.

20 The purposes of this title are to facilitate the effective

21 and efficient management of the homeless assistance pro22 grams of the Department by—

23 (1) reducing and preventing homelessness by

24 supporting the creation and maintenance of commu-
32

•S 2968 IS

1 nity-based, comprehensive systems dedicated to re2 turning families and individuals to self-sufficiency;

3 (2) reorganizing the homeless housing assist4 ance authorities under the Stewart B. McKinney

5 Homeless Assistance Act into a McKinney Homeless

6 Assistance Performance Fund;

7 (3) assisting States and local governments, in

8 partnership with private nonprofit service providers,

9 to use homeless funding more efficiently and effec10 tively;

11 (4) simplifying and making more flexible the

12 provision of Federal homeless assistance;

13 (5) maximizing the ability of a community to

14 implement a coordinated, comprehensive system for

15 providing assistance to homeless families and indi16 viduals;

17 (6) making more efficient and equitable the

18 manner in which homeless assistance is distributed;

19 (7) reducing the Federal role in local decision20 making for homeless assistance programs;

21 (8) reducing the costs to governmental jurisdic22 tions and private nonprofit organizations in applying

23 for and using assistance; and

24 (9) advancing the goal of meeting the needs of

25 the homeless population through mainstream pro-
33

•S 2968 IS

1 grams and establishing continuum of care systems

2 necessary to achieve that goal.

3 SEC. 302. ESTABLISHMENT OF THE McKINNEY HOMELESS

4 ASSISTANCE PERFORMANCE FUND.

5 Title IV of the Stewart B. McKinney Homeless As6 sistance Act (42 U.S.C. 11361 et seq.) is amended to read

7 as follows:

8 ‘‘TITLE IV—McKINNEY HOME9 LESS ASSISTANCE PERFORM10 ANCE FUND

11 ‘‘SEC. 401. DEFINITIONS.

12 ‘‘In this title:

13 ‘‘(1) ALLOCATION UNIT OF GENERAL LOCAL

14 GOVERNMENT.—

15 ‘‘(A) IN GENERAL.—The term ‘allocation

16 unit of general local government’ means a met17 ropolitan city or an urban county.

18 ‘‘(B) CONSORTIA.—The term ‘allocation

19 unit of general local government’ may include a

20 consortium of geographically contiguous metro21 politan cities and urban counties, if the Sec22 retary determines that the consortium—

23 ‘‘(i) has sufficient authority and ad24 ministrative capability to carry out the
34

•S 2968 IS

1 purposes of this title on behalf of its mem2 ber jurisdictions; and

3 ‘‘(ii) will, according to a written cer4 tification by the State (or States, if the

5 consortium includes jurisdictions in more

6 than 1 State), direct its activities to the

7 implementation of a continuum of care sys8 tem within the State or States.

9 ‘‘(2) APPLICANT.—The term ‘applicant’ means

10 a grantee submitting an application under section

11 403.

12 ‘‘(3) CONSOLIDATED PLAN.—The term ‘consoli13 dated plan’ means the single comprehensive plan

14 that the Secretary prescribes for submission by ju15 risdictions (which shall be coordinated and con16 sistent with any 5-year comprehensive plan of the

17 public housing agency required under section 14(e)

18 of the United States Housing Act of 1937) that con19 solidates and fulfills the requirements of—

20 ‘‘(A) the comprehensive housing afford21 ability strategy under title I of the Cranston22 Gonzalez National Affordable Housing Act;

23 ‘‘(B) the community development plan

24 under section 104 of the Housing and Commu25 nity Development Act of 1974; and
35

•S 2968 IS

1 ‘‘(C) the submission requirements for for2 mula funding under—

3 ‘‘(i) the Community Development

4 Block Grant program (authorized by title I

5 of the Housing and Community Develop6 ment Act of 1974);

7 ‘‘(ii) the HOME program (authorized

8 by title II of the Cranston-Gonzalez Na9 tional Affordable Housing Act);

10 ‘‘(iii) the McKinney Homeless Assist11 ance Performance Fund (authorized under

12 this title); and

13 ‘‘(iv) the AIDS Housing Opportunity

14 Act (authorized by subtitle D of title VIII

15 of the Cranston-Gonzalez National Afford16 able Housing Act).

17 ‘‘(4) CONTINUUM OF CARE SYSTEM.—The term

18 ‘continuum of care system’ means a system devel19 oped by a State or local homeless assistance board

20 that includes—

21 ‘‘(A) a system of outreach and assessment,

22 including drop-in centers, 24-hour hotlines,

23 counselors, and other activities designed to en24 gage homeless individuals and families, bring

25 them into the continuum of care system, and
36

•S 2968 IS

1 determine their individual housing and service

2 needs;

3 ‘‘(B) emergency shelters with essential

4 services to ensure that homeless individuals and

5 families receive shelter;

6 ‘‘(C) transitional housing with appropriate

7 supportive services to help ensure that homeless

8 individuals and families are prepared to make

9 the transition to increased responsibility and

10 permanent housing;

11 ‘‘(D) permanent housing, or permanent

12 supportive housing, to help meet the long-term

13 housing needs of homeless individuals and fami14 lies;

15 ‘‘(E) coordination between assistance pro16 vided under this title and assistance provided

17 under other Federal, State, and local programs

18 that may be used to assist homeless individuals

19 and families, including both targeted homeless

20 assistance programs and other programs ad21 ministered by the Departments of Veterans Af22 fairs, Labor, Health and Human Services, and

23 Education; and

24 ‘‘(F) a system of referrals for subpopula25 tions of the homeless (such as homeless vet-
37

•S 2968 IS

1 erans, families with children, battered spouses,

2 persons with mental illness, persons who have

3 chronic problems with alcohol, drugs, or both,

4 persons with other chronic health problems, and

5 persons who have acquired immunodeficiency

6 syndrome and related diseases) to the appro7 priate agencies, programs, or services (including

8 health care, job training, and income support)

9 necessary to meet their needs.

10 ‘‘(5) GRANTEE.—The term ‘grantee’ means—

11 ‘‘(A) an allocation unit of general local

12 government or insular area that administers a

13 grant under section 408(b)(1); or

14 ‘‘(B) an allocation unit of general local

15 government or insular area that designates a

16 public agency or a private nonprofit organiza17 tion (or a combination of such organizations) to

18 administer grant amounts under section

19 408(b)(2).

20 ‘‘(6) HOMELESS INDIVIDUAL.—The term

21 ‘homeless individual’ has the same meaning as in

22 section 103 of this Act.

23 ‘‘(7) INSULAR AREA.—The term ‘insular area’

24 means the Virgin Islands, Guam, American Samoa,

25 and the Northern Mariana Islands.
38

•S 2968 IS

1 ‘‘(8) LOW-DEMAND SERVICES AND REFER2 RALS.—The term ‘low-demand services and referrals’

3 means the provision of health care, mental health,

4 substance abuse, and other supportive services and

5 referrals for services in a noncoercive manner, which

6 may include medication management, education,

7 counseling, job training, and assistance in obtaining

8 entitlement benefits and in obtaining other sup9 portive services, including mental health and sub10 stance abuse treatment.

11 ‘‘(9) METROPOLITAN CITY.—The term ‘metro12 politan city’ has the same meaning as in section

13 102(a) of the Housing and Community Development

14 Act of 1974.

15 ‘‘(10) PERSON WITH DISABILITIES.—The term

16 ‘person with disabilities’ means a person who—

17 ‘‘(A) has a disability as defined in section

18 223 of the Social Security Act;

19 ‘‘(B) is determined to have, as determined

20 by the Secretary, a physical, mental, or emo21 tional impairment which—

22 ‘‘(i) is expected to be of long-contin23 ued and indefinite duration;

24 ‘‘(ii) substantially impedes his or her

25 ability to live independently; and
39

•S 2968 IS

1 ‘‘(iii) is of such a nature that such

2 ability could be improved by more suitable

3 housing conditions;

4 ‘‘(C) has a developmental disability, as de5 fined in section 102 of the Developmental Dis6 abilities Assistance and Bill of Rights Act; or

7 ‘‘(D) has the disease of acquired immuno8 deficiency syndrome or any conditions arising

9 from the etiologic agent for acquired immuno10 deficiency syndrome, except that this subpara11 graph shall not be construed to limit eligibility

12 under subparagraphs (A) through (C) or the

13 provisions referred to in subparagraphs (A)

14 through (C).

15 ‘‘(11) PRIVATE NONPROFIT ORGANIZATION.—

16 The term ‘private nonprofit organization’ means a

17 private organization—

18 ‘‘(A) no part of the net earnings of which

19 inures to benefits of any member, founder, con20 tributor, or individual;

21 ‘‘(B) that has a voluntary board;

22 ‘‘(C) that has an accounting system, or has

23 designated a fiscal agent in accordance with re24 quirements established by the Secretary; and
40

•S 2968 IS

1 ‘‘(D) that practices nondiscrimination in

2 the provision of assistance.

3 ‘‘(12) PROJECT SPONSOR.—The term ‘project

4 sponsor’ means an entity that—

5 ‘‘(A) provides housing or assistance for

6 homeless individuals or families by carrying out

7 activities under this title; and

8 ‘‘(B) meets such minimum standards as

9 the Secretary considers appropriate.

10 ‘‘(13) RECIPIENT.—The term ‘recipient’ means

11 a grantee (other than a State when it is distributing

12 grant amounts to State recipients) and a State re13 cipient.

14 ‘‘(14) SECRETARY.—The term ‘Secretary’

15 means the Secretary of Housing and Urban Develop16 ment.

17 ‘‘(15) STATE.—The term ‘State’ means each of

18 the several States and the Commonwealth of Puerto

19 Rico. The term includes an agency or instrumen20 tality of a State that is established pursuant to legis21 lation and designated by the chief executive officer

22 to act on behalf of the jurisdiction with regard to

23 provisions of this title.
41

•S 2968 IS

1 ‘‘(16) STATE RECIPIENT.—The term ‘State re2 cipient’ means the following entities receiving

3 amounts from the State under section 408(c)(2)(B):

4 ‘‘(A) A unit of general local government

5 within the State.

6 ‘‘(B) In the case of an area of the State

7 with significant homeless needs, if no State re8 cipient is identified, 1 or more private nonprofit

9 organizations serving that area.

10 ‘‘(17) UNIT OF GENERAL LOCAL GOVERN11 MENT.—The term ‘unit of general local government’

12 means—

13 ‘‘(A) a city, town, township, county, parish,

14 village, or other general purpose political sub15 division of a State;

16 ‘‘(B) the District of Columbia; and

17 ‘‘(C) any agency or instrumentality thereof

18 that is established pursuant to legislation and

19 designated by the chief executive officer to act

20 on behalf of the jurisdiction with regard to pro21 visions of this title.

22 ‘‘(18) URBAN COUNTY.—The term ‘urban coun23 ty’ has the same meaning as in section 102(a) of the

24 Housing and Community Development Act of 1974.
42

•S 2968 IS

1 ‘‘(19) VERY LOW-INCOME FAMILIES.—The term

2 ‘very low-income families’ has the same meaning as

3 in section 104 of the Cranston-Gonzalez National

4 Affordable Housing Act.

5 ‘‘SEC. 402. AUTHORIZATIONS.

6 ‘‘(a) IN GENERAL.—The Secretary may make grants

7 to carry out activities to assist homeless individuals and

8 families in support of continuum of care systems in ac9 cordance with this title.

10 ‘‘(b) FUNDING AMOUNTS.—There are authorized to

11 be appropriated to carry out this title, to remain available

12 until expended—

13 ‘‘(1) $1,050,000,000 for fiscal year 2001;

14 ‘‘(2) $1,070,000,000 for fiscal year 2002; and

15 ‘‘(3) $1,090,000,000 for fiscal year 2003.

16 ‘‘SEC. 403. APPLICATION.

17 ‘‘(a) IN GENERAL.—Each applicant shall submit the

18 application required under this section in such form and

19 in accordance with such procedures as the Secretary shall

20 prescribe. If the applicant is a State or unit of general

21 local government, the application shall be submitted as

22 part of the homeless assistance component of the consoli23 dated plan.

24 ‘‘(b) CONTINUUM OF CARE SUBMISSION.—
43

•S 2968 IS

1 ‘‘(1) IN GENERAL.—The allocation unit of gen2 eral local government, insular area, or State shall

3 prepare, and submit those portions of the application

4 related to the development and implementation of

5 the continuum of care system, as described in para6 graph (2) or (3), as applicable.

7 ‘‘(2) SUBMISSION BY ALLOCATION UNIT OF

8 GENERAL LOCAL GOVERNMENT OR INSULAR AREA.—

9 The allocation unit of general local government or

10 insular area shall develop and submit to the

11 Secretary—

12 ‘‘(A) a continuum of care system con13 sistent with that defined under section 401(4),

14 which shall be designed to incorporate any

15 strengths and fill any gaps in the current home16 less assistance activities of the jurisdiction, and

17 shall include a description of efforts to address

18 the problems faced by each of the different sub19 populations of homeless individuals;

20 ‘‘(B) a multiyear strategy for imple21 menting the continuum of care system, includ22 ing appropriate timetables and budget estimates

23 for accomplishing each element of the strategy;

24 ‘‘(C) a 1-year plan, identifying all activities

25 to be carried out with assistance under this title
44

•S 2968 IS

1 and with assistance from other HUD resources

2 allocated in accordance with the consolidated

3 plan, and describing the manner in which these

4 activities will further the strategy; and

5 ‘‘(D) any specific performance measures

6 and benchmarks for use in assessing the per7 formance of the grantee under this title that

8 are in addition to national performance meas9 ures and benchmarks established by the Sec10 retary.

11 ‘‘(3) SUBMISSION BY STATE.—The State shall

12 develop and submit to the Secretary—

13 ‘‘(A) a continuum of care system con14 sistent with that defined under section 401(4),

15 which shall be designed to incorporate any

16 strengths and fill any gaps in the current home17 less assistance activities of the jurisdiction, and

18 shall include a description of efforts to address

19 the problems faced by each of the different sub20 populations of homeless individuals;

21 ‘‘(B) a multiyear strategy for imple22 menting the continuum of care systems in areas

23 of the State outside allocation units of general

24 local government, including the actions the
45

•S 2968 IS

1 State will take to achieve the goals set out in

2 the strategy;

3 ‘‘(C) a 1-year plan identifying—

4 ‘‘(i) in the case of a State carrying

5 out its own activities under section

6 408(c)(2)(A), the activities to be carried

7 out with assistance under this title and de8 scribing the manner in which these activi9 ties will further the strategy; and

10 ‘‘(ii) in the case of a State distrib11 uting grant amounts to State recipients

12 under section 408(c)(2)(B), the criteria

13 that the State will use in distributing

14 amounts awarded under this title, the

15 method of distribution, and the relation16 ship of the method of distribution to the

17 homeless assistance strategy; and

18 ‘‘(D) any specific performance measures

19 and benchmarks for use in assessing the per20 formance of the grantee under this title that

21 are in addition to national performance meas22 ures and benchmarks established by the Sec23 retary.
46

•S 2968 IS

1 ‘‘(c) SUBMISSION REQUIREMENTS FOR APPLICANTS

2 OTHER THAN STATES.—Each application from an appli3 cant other than a State shall include, at a minimum—

4 ‘‘(1) the continuum of care submission de5 scribed in subsection (b)(2);

6 ‘‘(2) a determination on whether the assistance

7 under this title will be administered by the jurisdic8 tion, a public agency or private nonprofit organiza9 tion, or the State, as appropriate under subsections

10 (b) and (c) of section 408;

11 ‘‘(3) certifications or other such forms of proof

12 of commitments of financial and other resources suf13 ficient to comply with the match requirements under

14 section 405(a)(1);

15 ‘‘(4) a certification that the applicant is fol16 lowing a current approved consolidated plan;

17 ‘‘(5) a certification that the grant will be con18 ducted and administered in conformity with title VI

19 of the Civil Rights Act of 1964, section 504 of the

20 Rehabilitation Act of 1973, and the Fair Housing

21 Act, and the grantee will affirmatively further fair

22 housing; and

23 ‘‘(6) a certification that the applicant will com24 ply with the requirements of this title and other ap25 plicable laws.
47

•S 2968 IS

1 ‘‘(d) SUBMISSION REQUIREMENTS FOR STATES.—

2 Each application from a State shall include—

3 ‘‘(1) the continuum of care submission de4 scribed in subsection (b)(3);

5 ‘‘(2) certifications or other such forms of proof

6 of commitments of financial and other resources suf7 ficient to comply with the match requirements under

8 section 405(a)(1);

9 ‘‘(3) a certification that the applicant is fol10 lowing a current approved consolidated plan;

11 ‘‘(4) a certification that the grant will be con12 ducted and administered in conformity with title VI

13 of the Civil Rights Act of 1964, section 504 of the

14 Rehabilitation Act of 1973, and the Fair Housing

15 Act, and the grantee will affirmatively further fair

16 housing; and

17 ‘‘(5) a certification that the State and State re18 cipients will comply with the requirements of this

19 title and other applicable laws.

20 ‘‘(e) APPLICATION APPROVAL.—The application shall

21 be approved by the Secretary unless the Secretary deter22 mines that the application is substantially incomplete.
48

•S 2968 IS

1 ‘‘SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES; CON2 TINUUM OF CARE APPROVAL.

3 ‘‘(a) ELIGIBLE PROJECTS.—Grants under this title

4 may be used to carry out activities described in subsection

5 (b) in support of the following types of projects:

6 ‘‘(1) EMERGENCY ASSISTANCE.—Assistance de7 signed to prevent homelessness or to meet the emer8 gency needs of homeless individuals and families, in9 cluding 1 or more of the following:

10 ‘‘(A) PREVENTION.—Efforts to prevent

11 homelessness of a very low-income individual or

12 family that has received an eviction notice, no13 tice of mortgage foreclosure, or notice of termi14 nation of utilities, if—

15 ‘‘(i) the individual or family cannot

16 make the required payments due to a sud17 den reduction in income or other financial

18 emergency; and

19 ‘‘(ii) the assistance is necessary to

20 avoid imminent eviction, foreclosure, or

21 termination of services.

22 ‘‘(B) OUTREACH AND ASSESSMENT.—Ef23 forts designed to inform individuals and fami24 lies about the availability of services, to bring

25 them into the continuum of care system, and to
49

•S 2968 IS

1 determine which services or housing are appro2 priate to the needs of the individual or family.

3 ‘‘(C) EMERGENCY SHELTER.—The provi4 sion of short-term emergency shelter with es5 sential supportive services for homeless individ6 uals and families.

7 ‘‘(2) SAFE HAVEN HOUSING.—A structure or a

8 clearly identifiable portion of a structure that—

9 ‘‘(A) provides housing and low-demand

10 services and referrals for homeless individuals

11 with serious mental illness—

12 ‘‘(i) who are currently residing pri13 marily in places not designed for, or ordi14 narily used as, a regular sleeping accom15 modation for human beings; and

16 ‘‘(ii) who have been unwilling or un17 able to participate in mental health or sub18 stance abuse treatment programs or to re19 ceive other supportive services; except that

20 a person whose sole impairment is sub21 stance abuse shall not be considered an eli22 gible person;

23 ‘‘(B) provides 24-hour residence for eligible

24 individuals who may reside for an unspecified

25 duration;
50

•S 2968 IS

1 ‘‘(C) provides private or semiprivate ac2 commodations;

3 ‘‘(D) may provide for the common use of

4 kitchen facilities, dining rooms, and bathrooms;

5 ‘‘(E) may provide supportive services to el6 igible persons who are not residents on a drop7 in basis;

8 ‘‘(F) provides occupancy limited to not

9 more than 25 persons; and

10 ‘‘(G) provides housing for victims of spous11 al abuse, and their dependents.

12 ‘‘(3) TRANSITIONAL HOUSING.—Housing and

13 appropriate supportive services that are designed to

14 facilitate the movement of homeless individuals to

15 permanent housing, generally within 24 months.

16 ‘‘(4) PERMANENT HOUSING AND PERMANENT

17 HOUSING AND SUPPORTIVE SERVICES FOR PERSONS

18 WITH DISABILITIES.—Permanent housing for home19 less individuals, and permanent housing and sup20 portive services for homeless persons with disabil21 ities, the latter of which may be designed to provide

22 housing and services solely for persons with disabil23 ities, or may provide housing for such persons in a

24 multifamily housing, condominium, or cooperative

25 project.
51

•S 2968 IS

1 ‘‘(5) SINGLE ROOM OCCUPANCY HOUSING.—A

2 unit for occupancy by 1 person, which need not (but

3 may) contain food preparation or sanitary facilities,

4 or both, and may provide services such as mental

5 health services, substance abuse treatment, job

6 training, and employment programs.

7 ‘‘(6) OTHER PROJECTS.—Such other projects

8 as the Secretary determines will further the pur9 poses of title I of the Homelessness Assistance and

10 Management Reform Act of 1997.

11 ‘‘(b) ELIGIBLE ACTIVITIES.—Grants under this title

12 may be used to carry out the following activities in support

13 of projects described in subsection (a):

14 ‘‘(1) HOMELESSNESS PREVENTION ACTIVI15 TIES.—Short-term mortgage, rental, and utilities

16 payments and other short-term assistance designed

17 to prevent the imminent homelessness of the individ18 uals and families described in subsection (a)(1)(A).

19 ‘‘(2) OUTREACH AND ASSESSMENT.—Drop-in

20 centers, 24-hour hotlines, counselors, and other ac21 tivities designed to engage homeless individuals and

22 families, bring them into the continuum of care sys23 tem, and determine their individual housing and

24 service needs.
52

•S 2968 IS

1 ‘‘(3) ACQUISITION AND REHABILITATION.—The

2 acquisition, rehabilitation, or acquisition and reha3 bilitation of real property.

4 ‘‘(4) NEW CONSTRUCTION.—The new construc5 tion of a project, including the cost of the site.

6 ‘‘(5) OPERATING COSTS.—The costs of oper7 ating a project, including salaries and benefits,

8 maintenance, insurance, utilities, replacement re9 serve accounts, and furnishings.

10 ‘‘(6) LEASING.—Leasing of an existing struc11 ture or structures, or units within these structures,

12 including the provision of long-term rental assistance

13 contracts.

14 ‘‘(7) TENANT ASSISTANCE.—The provision of

15 security or utility deposits, rent, or utility payments

16 for the first month of residence at a new location,

17 and relocation assistance.

18 ‘‘(8) SUPPORTIVE SERVICES.—The provision of

19 essential supportive services including case manage20 ment, housing counseling, job training and place21 ment, primary health care, mental health services,

22 substance abuse treatment, child care, transpor23 tation, emergency food and clothing, family violence

24 services, education services, moving services, assist-
53

•S 2968 IS

1 ance in obtaining entitlement benefits, and referral

2 to veterans services and referral to legal services.

3 ‘‘(9) ADMINISTRATION.—

4 ‘‘(A) IN GENERAL.—Expenses incurred

5 in—

6 ‘‘(i) planning, developing, and estab7 lishing a program under this title; and

8 ‘‘(ii) administering the program.

9 ‘‘(B) LIMITATIONS.—Not more than the

10 following amounts may be used for administra11 tive costs under subparagraph (A):

12 ‘‘(i) 10 percent of any grant amounts

13 provided for a recipient for a fiscal year

14 (including amounts used by a State to

15 carry out its own activities under section

16 408(c)(1)(A)).

17 ‘‘(ii) 5 percent of any grant amounts

18 provided to a State for a fiscal year that

19 the State uses to distribute funds to a

20 State recipient under section 408(c)(1)(B).

21 ‘‘(10) CAPACITY BUILDING.—

22 ‘‘(A) IN GENERAL.—Building the capacity

23 of private nonprofit organizations to participate

24 in the continuum of care system of the recipi25 ent.
54

•S 2968 IS

1 ‘‘(B) LIMITATIONS.—Not more than the

2 following amounts may be used for capacity

3 building under subparagraph (A):

4 ‘‘(i) 2 percent of any grant amounts

5 provided for a recipient for a fiscal year

6 (including amounts used by a State to

7 carry out its own activities under section

8 408(c)(1)(A)).

9 ‘‘(ii) 2 percent of any grant amounts

10 provided to a State for a fiscal year that

11 the State uses to distribute funds to a

12 State recipient under section 408(c)(1)(B).

13 ‘‘(11) OTHER ACTIVITIES.—Other activities as

14 the Secretary determines will further the purposes of

15 title I of the Homelessness Assistance and Manage16 ment Reform Act of 1997.

17 ‘‘(c) TARGETING TO SUBPOPULATIONS OF PERSONS

18 WITH DISABILITIES.—Notwithstanding any other provi19 sion of law, projects for persons with disabilities assisted

20 under this title may be targeted to specific subpopulations

21 of such persons, including persons who—

22 ‘‘(1) are seriously mentally ill;

23 ‘‘(2) have chronic problems with drugs, alcohol,

24 or both; or
55

•S 2968 IS

1 ‘‘(3) have acquired immunodeficiency syndrome

2 or any conditions arising from the etiologic agency

3 for acquired immunodeficiency syndrome.

4 ‘‘SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE

5 OF EFFORT.

6 ‘‘(a) MATCHING REQUIREMENT.—

7 ‘‘(1) IN GENERAL.—Each recipient shall make

8 contributions totaling not less than $1 for every $3

9 made available for the recipient for any fiscal year

10 under this title to carry out eligible activities. At the

11 end of each program year, each recipient shall cer12 tify to the Secretary that it has complied with this

13 section, and shall include with the certification a de14 scription of the sources and amounts of the match15 ing contributions. Contributions under this section

16 may not come from assistance provided under this

17 title.

18 ‘‘(2) CALCULATION OF AMOUNTS.—In calcu19 lating the amount of matching contributions re20 quired under paragraph (1), a recipient may

21 include—

22 ‘‘(A) any funds derived from a source,

23 other than assistance under this title or

24 amounts subject to subsection (b);
56

•S 2968 IS

1 ‘‘(B) the value of any lease on a building;

2 and

3 ‘‘(C) any salary paid to staff or any volun4 teer labor contributed to carry out the program.

5 ‘‘(b) LIMITATION ON USE OF FUNDS.—No assistance

6 received under this title may be used to replace other

7 funds previously used, or designated for use, by the State,

8 State recipient (except when a State recipient is a private

9 nonprofit organization), allocation unit of general local

10 government or insular area to assist homeless individuals

11 and families.

12 ‘‘SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT

13 SPONSORS, AND OWNERS.

14 ‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON15 PROFIT ORGANIZATIONS.—

16 ‘‘(1) IN GENERAL.—Each recipient shall ensure

17 that at least 50 percent of the grant amounts that

18 are made available to it under this title for any fiscal

19 year are made available to project sponsors that are

20 private nonprofit organizations.

21 ‘‘(2) WAIVER.—The Secretary may waive or re22 duce the requirement of paragraph (1), if the recipi23 ent demonstrates to the Secretary that the require24 ment interferes with the ability of the recipient to

25 provide assistance under this title because of the
57

•S 2968 IS

1 paucity of qualified private nonprofit organizations

2 in the jurisdiction of the recipient.

3 ‘‘(b) HOUSING QUALITY.—Each recipient shall en4 sure that housing assisted with grant amounts provided

5 under this title is decent, safe, and sanitary and complies

6 with all applicable State and local housing codes, building

7 codes, and licensing requirements in the jurisdiction in

8 which the housing is located.

9 ‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec10 retary may prescribe such terms and conditions as the

11 Secretary considers necessary to prevent project sponsors

12 from unduly benefiting from the sale or other disposition

13 of projects, other than a sale or other disposition resulting

14 in the use of the project for the direct benefit of very low15 income families.

16 ‘‘(d) CONFIDENTIALITY.—Each recipient shall de17 velop and implement procedures to ensure the confiden18 tiality of records pertaining to any individual provided

19 services assisted under this title for family violence preven20 tion or treatment or for such medical or other conditions

21 as the Secretary may prescribe, and to ensure that the

22 address or location of any project providing such services

23 will, except with written authorization of the person or

24 persons responsible for the operation of such project, not

25 be made public.
58

•S 2968 IS

1 ‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—

2 ‘‘(1) IN GENERAL.—To the maximum extent

3 practicable, the Secretary shall ensure that recipi4 ents, through employment, volunteer services, or oth5 erwise, provide opportunities for homeless individ6 uals and families to participate in—

7 ‘‘(A) constructing, renovating, maintaining,

8 and operating facilities assisted under this title;

9 ‘‘(B) providing services so assisted; and

10 ‘‘(C) providing services for occupants of fa11 cilities so assisted.

12 ‘‘(2) NO DISPLACEMENT OF EMPLOYED WORK13 ERS.—In carrying out paragraph (1), recipients

14 shall not displace employed workers.

15 ‘‘(f) OCCUPANCY CHARGE.—Any homeless individual

16 or family residing in a dwelling unit assisted under this

17 title may be required to pay an occupancy charge in an

18 amount determined by the grantee providing the assist19 ance, which may not exceed an amount equal to 30 percent

20 of the adjusted income (as defined in section 3(b) of the

21 United States Housing Act of 1937 or any other subse22 quent provision of Federal law defining the term for pur23 poses of eligibility for, or rental charges in, public housing)

24 of the individual or family. Occupancy charges paid may
59

•S 2968 IS

1 be reserved, in whole or in part, to assist residents in mov2 ing to permanent housing.

3 ‘‘SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.

4 ‘‘(a) INSULAR AREAS.—

5 ‘‘(1) ALLOCATION.—For each fiscal year, the

6 Secretary shall allocate assistance under this title to

7 insular areas, in an amount equal to 0.20 percent of

8 the amounts appropriated under the first sentence of

9 section 402(b).

10 ‘‘(2) DISTRIBUTION.—The Secretary shall pro11 vide for the distribution of amounts reserved under

12 paragraph (1) for insular areas pursuant to specific

13 criteria or a distribution formula prescribed by the

14 Secretary.

15 ‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL

16 LOCAL GOVERNMENT.—

17 ‘‘(1) IN GENERAL.—For each fiscal year, of the

18 amounts appropriated under the first sentence of

19 section 402(b) that remain after amounts are re20 served for insular areas under subsection (a), the

21 Secretary shall allocate assistance according to the

22 formula described in paragraph (2).

23 ‘‘(2) FORMULA.—

24 ‘‘(A) ALLOCATION.—The Secretary shall

25 allocate amounts for allocation units of general
60

•S 2968 IS

1 local government and States, in a manner that

2 ensures that the percentage of the total amount

3 available under this title for any fiscal year for

4 any allocation unit of general local government

5 or State is equal to the percentage of the total

6 amount available for section 106 of the Hous7 ing and Community Development Act of 1974

8 for the same fiscal year that is allocated for the

9 allocation unit of general local government or

10 State.

11 ‘‘(B) MINIMUM ALLOCATION.—

12 ‘‘(i) GRADUATED MINIMUM GRANT AL13 LOCATIONS.—A State, metropolitan city,

14 or urban county shall receive no less fund15 ing in the first fiscal year after the effec16 tive date of this Act than 90 percent of the

17 average of the amounts awarded annually

18 to that jurisdiction for homeless assistance

19 programs administered by the Secretary

20 under this title during fiscal years 1996

21 through 1999, not less than 85 percent in

22 the second full fiscal year after the effec23 tive date of this Act, not less than 80 per24 cent in the third and fourth fiscal years

25 after the effective date of this Act, and not
61

•S 2968 IS

1 less than 75 percent in the fifth full fiscal

2 year after the effective date of this Act,

3 but only if the amount appropriated in

4 each such fiscal year exceeds

5 $1,000,000,000. If that amount does not

6 exceed $1,000,000,000 in any fiscal year

7 referred to in the first sentence of this

8 paragraph, the jurisdiction may receive its

9 proportionate share of the amount appro10 priated which may be less than the amount

11 in such sentence for such fiscal year.

12 ‘‘(ii) REDUCTION.—In any fiscal year,

13 the Secretary may provide a grant under

14 this subsection for a State, metropolitan

15 city, or urban county, in an amount less

16 than the amount allocated under those

17 paragraphs, if the Secretary determines

18 that the jurisdiction has failed to comply

19 with requirements of this title, or that such

20 action is otherwise appropriate.

21 ‘‘(C) STUDY; SUBMISSION OF INFORMA22 TION TO CONGRESS RELATED TO ALTERNATIVE

23 METHODS OF ALLOCATION.—Not later than 1

24 year after the effective date of the Local Hous25 ing Opportunities Act, the Secretary shall—
62

•S 2968 IS

1 ‘‘(i) submit to Congress—

2 ‘‘(I) the best available method3 ology for determining a formula rel4 ative to the geographic allocation of

5 funds under this subtitle among enti6 tlement communities and nonentitle7 ment areas based on the incidence of

8 homelessness and factors that lead to

9 homelessness;

10 ‘‘(II) proposed alternatives to the

11 formula submitted pursuant to sub12 clause (I) for allocating funds under

13 this section, including an evaluation

14 and recommendation on a 75/25 per15 cent formula and other allocations of

16 flexible block grant homeless assist17 ance between metropolitan cities and

18 urban counties and States under sub19 paragraph (A);

20 ‘‘(III) an analysis of the defi21 ciencies in the current allocation for22 mula described in section 106(b) of

23 the Housing and Community Develop24 ment Act of 1974;
63

•S 2968 IS

1 ‘‘(IV) an analysis of the adequacy

2 of current indices used as proxies for

3 measuring homelessness; and

4 ‘‘(V) an analysis of the bases un5 derlying each of the proposed alloca6 tion methods;

7 ‘‘(ii) perform the duties required by

8 this paragraph in ongoing consultation

9 with—

10 ‘‘(I) the Subcommittee on Hous11 ing Opportunity and Community De12 velopment of the Committee on Bank13 ing, Housing, and Urban Affairs of

14 the Senate;

15 ‘‘(II) the Subcommittee on Hous16 ing and Community Opportunity of

17 the Committee on Banking and Fi18 nancial Services of the House of Rep19 resentatives;

20 ‘‘(III) organizations representing

21 States, metropolitan cities, and urban

22 counties;

23 ‘‘(IV) organizations representing

24 rural communities;
64

•S 2968 IS

1 ‘‘(V) organizations representing

2 veterans;

3 ‘‘(VI) organizations representing

4 persons with disabilities;

5 ‘‘(VII) members of the academic

6 community; and

7 ‘‘(VIII) national homelessness

8 advocacy groups; and

9 ‘‘(iii) estimate the amount of funds that

10 will be received annually by each entitlement

11 community and nonentitlement area under each

12 such alternative allocation system and compare

13 such amounts to the amount of funds received

14 by each entitlement community and nonentitle15 ment area in prior years under this section.

16 ‘‘SEC. 408. ADMINISTRATION OF PROGRAM.

17 ‘‘(a) IN GENERAL.—The Secretary shall prescribe

18 such procedures and requirements as the Secretary deems

19 appropriate for administering grant amounts under this

20 title.

21 ‘‘(b) ALLOCATION UNITS OF GENERAL LOCAL GOV22 ERNMENT AND INSULAR AREAS.—

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), an allocation unit of general local govern25 ment or insular area shall administer grant amounts
65

•S 2968 IS

1 received under subsection (a) or (b) of section 407

2 for any fiscal year.

3 ‘‘(2) AGENCIES AND ORGANIZATIONS DES4 IGNATED BY JURISDICTION.—

5 ‘‘(A) DESIGNATION OF OTHER ENTITIES

6 TO ADMINISTER GRANT AMOUNTS.—An alloca7 tion unit of general local government or insular

8 area may elect for any fiscal year to designate

9 a public agency or a private nonprofit organiza10 tion (or a collaboration of such organizations)

11 to administer grant amounts received under

12 subsection (a) or (b) of section 407 instead of

13 the jurisdiction.

14 ‘‘(B) PROVISION OF GRANT AMOUNTS.—

15 The Secretary may, at the request of a jurisdic16 tion under subparagraph (A), provide grant

17 amounts directly to the agency or organization

18 designated under that subparagraph.

19 ‘‘(c) STATES.—

20 ‘‘(1) IN GENERAL.—The State—

21 ‘‘(A) may use not more than 15 percent of

22 the amount made available to the State under

23 section 407(b)(2) for a fiscal year to carry out

24 its own homeless assistance program under this

25 title; and
66

•S 2968 IS

1 ‘‘(B) shall distribute the remaining

2 amounts to State recipients.

3 ‘‘(2) DISTRIBUTION OF AMOUNTS TO STATE RE4 CIPIENTS.—

5 ‘‘(A) IN GENERAL.—

6 ‘‘(i) OPTIONS.—States distributing

7 amounts under paragraph (1)(B) to State

8 recipients that are units of general local

9 government shall, for each fiscal year, af10 ford each such recipient the options of—

11 ‘‘(I) administering the grant

12 amounts on its own behalf;

13 ‘‘(II) designating (as provided by

14 subsection (b)(2)) a public agency or

15 a private nonprofit organization (or a

16 combination of such organizations) to

17 administer the grant amounts instead

18 of the jurisdiction; or

19 ‘‘(III) entering into an agreement

20 with the State, in consultation with

21 private nonprofit organizations pro22 viding assistance to homeless individ23 uals and families in the jurisdiction,

24 under which the State will administer
67

•S 2968 IS

1 the grant amounts instead of the ju2 risdiction.

3 ‘‘(ii) EFFECT OF DESIGNATION.—A

4 State recipient designating an agency or

5 organization as provided by clause (i)(II),

6 or entering into an agreement with the

7 State under clause (i)(III), shall remain

8 the State recipient for purposes of this

9 title.

10 ‘‘(iii) DIRECT ASSISTANCE.—The

11 State may, at the request of the State re12 cipient, provide grant amounts directly to

13 the agency or organization designated

14 under clause (i)(II).

15 ‘‘(B) APPLICATION.—

16 ‘‘(i) IN GENERAL.—The State shall

17 distribute amounts to State recipients (or

18 to agencies or organizations designated

19 under subparagraph (A)(i)(II), as appro20 priate) on the basis of an application con21 taining such information as the State may

22 prescribe, except that each application

23 shall reflect the State application require24 ments in section 403(d) and evidence an
68

•S 2968 IS

1 intent to facilitate the establishment of a

2 continuum of care system.

3 ‘‘(ii) WAIVER.—The State may waive

4 the requirements in clause (i) with respect

5 to 1 or more proposed activities, if the

6 State determines that—

7 ‘‘(I) the activities are necessary

8 to meet the needs of homeless individ9 uals and families within the jurisdic10 tion; and

11 ‘‘(II) a continuum of care system

12 is not necessary, due to the nature

13 and extent of homelessness in the ju14 risdiction.

15 ‘‘(C) PREFERENCE.—In selecting State re16 cipients and making awards under subpara17 graph (B), the State shall give preference to ap18 plications that demonstrate higher relative lev19 els of homeless need and fiscal distress.

20 ‘‘SEC. 409. CITIZEN PARTICIPATION.

21 ‘‘(a) IN GENERAL.—Each recipient shall ensure that

22 citizens, appropriate private nonprofit organizations, and

23 other interested groups and entities participate fully in the

24 development and carrying out of the program authorized

25 under this title.
69

•S 2968 IS

1 ‘‘(b) ALLOCATION UNITS OF GENERAL LOCAL GOV2 ERNMENT AND INSULAR AREAS.—The chief executive offi3 cer of each allocation unit of general local government or

4 insular area shall designate an entity, which shall assist

5 the jurisdiction—

6 ‘‘(1) by developing the continuum of care sys7 tem and other submission requirements, and by sub8 mitting the system and such other submission re9 quirements for its approval under section 403(b);

10 ‘‘(2) in overseeing the activities carried out with

11 assistance under this title; and

12 ‘‘(3) in preparing the performance report under

13 section 410(b).

14 ‘‘(c) STATE RECIPIENTS.—The chief executive officer

15 of the State shall designate an entity which shall assist

16 the State—

17 ‘‘(1) by developing the continuum of care sys18 tem and other submission requirements, and by sub19 mitting the system and such other submission re20 quirements for its approval under section 403(b);

21 ‘‘(2) in determining the percentage of the grant

22 that the State should use—

23 ‘‘(A) to carry out its own homeless assist24 ance program under section 408(c)(1)(A); or
70

•S 2968 IS

1 ‘‘(B) to distribute amounts to State recipi2 ents under section 408(c)(1)(B);

3 ‘‘(3) in carrying out the responsibilities of the

4 State, if the State enters into an agreement with a

5 State recipient to administer the amounts of the

6 State recipient under section 408(c)(2)(A)(i)(III);

7 ‘‘(4) in overseeing the activities carried out with

8 assistance under this title; and

9 ‘‘(5) in preparing the performance report under

10 section 410(b).

11 ‘‘SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS,

12 AND GRANT ADJUSTMENTS.

13 ‘‘(a) NATIONAL PERFORMANCE MEASURES AND

14 BENCHMARKS.—The Secretary shall establish national

15 performance measures and benchmarks to assist the Sec16 retary, grantees, citizens, and others in assessing the use

17 of funds made available under this title.

18 ‘‘(b) GRANTEE PERFORMANCE AND EVALUATION

19 REPORT.—

20 ‘‘(1) IN GENERAL.—Each grantee shall submit

21 to the Secretary a performance and evaluation re22 port concerning the use of funds made available

23 under this title.

24 ‘‘(2) TIMING AND CONTENTS.—The report

25 under subsection (a) shall be submitted at such time
71

•S 2968 IS

1 as the Secretary shall prescribe and contain an as2 sessment of the performance of the grantee as meas3 ured against any specific performance measures and

4 benchmarks (developed under section 403), the na5 tional performance measures and benchmarks (as es6 tablished under subsection (a)), and such other in7 formation as the Secretary shall prescribe. Such per8 formance measures and benchmarks shall include a

9 measure of the number of homeless individuals who

10 transition to self-sufficiency, and a measure of the

11 number of homeless individuals who have ended a

12 chemical dependency or drug addiction.

13 ‘‘(3) AVAILABILITY TO PUBLIC.—Before the

14 submission of a report under subsection (a), the

15 grantee shall make the report available to citizens,

16 public agencies, and other interested parties in the

17 jurisdiction of the grantee in sufficient time to per18 mit them to comment on the report before submis19 sion.

20 ‘‘(c) PERFORMANCE REVIEWS, AUDITS, AND GRANT

21 ADJUSTMENTS.—

22 ‘‘(1) PERFORMANCE REVIEWS AND AUDITS.—

23 The Secretary shall, not less than annually, make

24 such reviews and audits as may be necessary or ap25 propriate to determine—
72

•S 2968 IS

1 ‘‘(A) in the case of a grantee (other than

2 a grantee referred to in subparagraph (B)),

3 whether the grantee—

4 ‘‘(i) has carried out its activities in a

5 timely manner;

6 ‘‘(ii) has made progress toward imple7 menting the continuum of care system in

8 conformity with its application under this

9 title; and

10 ‘‘(iii) has carried out its activities and

11 certifications in accordance with the re12 quirements of this title and other applica13 ble laws; and

14 ‘‘(B) in the case of States distributing

15 grant amounts to State recipients, whether the

16 State—

17 ‘‘(i) has distributed amounts to State

18 recipients in a timely manner and in con19 formance with the method of distribution

20 described in its application;

21 ‘‘(ii) has carried out its activities and

22 certifications in compliance with the re23 quirements of this title and other applica24 ble laws; and
73

•S 2968 IS

1 ‘‘(iii) has made such performance re2 views and audits of the State recipients as

3 may be necessary or appropriate to deter4 mine whether they have satisfied the appli5 cable performance criteria set forth in sub6 paragraph (A).

7 ‘‘(2) GRANT ADJUSTMENTS.—The Secretary

8 may make appropriate adjustments in the amount of

9 grants in accordance with the findings of the Sec10 retary under this subsection. With respect to assist11 ance made available for State recipients, the Sec12 retary may adjust, reduce, or withdraw such assist13 ance, or take other action as appropriate in accord14 ance with the performance reviews and audits of the

15 Secretary under this subsection, except that amounts

16 already properly expended on eligible activities under

17 this title shall not be recaptured or deducted from

18 future assistance to such recipients.

19 ‘‘SEC. 411. NONDISCRIMINATION IN PROGRAMS AND AC20 TIVITIES.

21 ‘‘No person in the United States shall, on the ground

22 of race, color, national origin, religion, or sex, be excluded

23 from participation in, be denied the benefits of, or be sub24 jected to discrimination under any program or activity

25 funded in whole or in part with funds made available
74

•S 2968 IS

1 under this title. Any prohibition against discrimination on

2 the basis of age under the Age Discrimination Act of 1975

3 or with respect to an otherwise qualified individual with

4 a disability, as provided in section 504 of the Rehabilita5 tion Act of 1973, shall also apply to any such program

6 or activity.

7 ‘‘SEC. 412. RETENTION OF RECORDS, REPORTS, AND AU8 DITS.

9 ‘‘(a) RETENTION OF RECORDS.—Each recipient shall

10 keep such records as may be reasonably necessary—

11 ‘‘(1) to disclose the amounts and the disposition

12 of the grant amounts, including the types of activi13 ties funded and the nature of populations served

14 with these funds; and

15 ‘‘(2) to ensure compliance with the require16 ments of this title.

17 ‘‘(b) ACCESS TO DOCUMENTS BY THE SECRETARY.—

18 The Secretary shall have access for the purpose of audit

19 and examination to any books, documents, papers, and

20 records of any recipient that are pertinent to grant

21 amounts received in connection with this title.

22 ‘‘(c) ACCESS TO DOCUMENTS BY THE COMPTROLLER

23 GENERAL.—The Comptroller General of the United

24 States, or any duly authorized representative of the Comp25 troller General, shall have access for the purpose of audit
75

•S 2968 IS

1 and examination to any books, documents, papers, and

2 records of any recipient that are pertinent to grant

3 amounts received in connection with this title.’’.

4 SEC. 303. REPEAL AND SAVINGS PROVISIONS.

5 (a) AUTHORITY TO PROVIDE ASSISTANCE.—Begin6 ning on the effective date of this Act, the Secretary may

7 not make assistance available under title IV of the Stewart

8 B. McKinney Homeless Assistance Act (as in existence im9 mediately before such effective date), except pursuant to

10 a legally binding commitment entered into before that

11 date.

12 (b) LAW GOVERNING.—Any amounts made available

13 under title IV of the Stewart B. McKinney Homeless As14 sistance Act before the effective date of this Act shall con15 tinue to be governed by the provisions of that title, as they

16 existed immediately before that effective date, except that

17 each grantee may, in its discretion, provide for the use,

18 in accordance with the provisions of title IV of the Stewart

19 B. McKinney Homeless Assistance Act (as amended by

20 this title), of any such amounts that it has not obligated.

21 (c) STATUS OF FUNDS.—

22 (1) IN GENERAL.—Any amounts appropriated

23 under title IV of the Stewart B. McKinney Homeless

24 Assistance Act before the effective date of this Act

25 that are available for obligation immediately before
76

•S 2968 IS

1 such effective date, or that become available for obli2 gation on or after that date, shall be transferred and

3 added to amounts appropriated for title IV of the

4 Stewart B. McKinney Homeless Assistance Act (as

5 amended by this title), and shall be available for use

6 in accordance with the provisions of such title IV.

7 (2) AVAILABILITY.—Any amounts transferred

8 under paragraph (1) shall remain available for obli9 gation only for the time periods for which such re10 spective amounts were available before such transfer.

11 SEC. 304. IMPLEMENTATION.

12 (a) INITIAL ALLOCATION OF ASSISTANCE.—Not later

13 than the expiration of the 60-day period following the date

14 of enactment of an Act appropriating funds to carry out

15 title IV of the Stewart B. McKinney Homeless Assistance

16 Act (as amended by this title), the Secretary shall notify

17 each allocation unit of general local government, insular

18 area, and State of its allocation under the McKinney

19 Homeless Assistance Performance Fund.

20 (b) ISSUANCE OF NECESSARY REGULATIONS.—Not21 withstanding section 7(o) of the Department of Housing

22 and Urban Development Act (42 U.S.C. 3535(o)), the

23 Secretary shall issue such regulations as may be necessary

24 to implement any provision of title I of this Act, and any

25 amendment made by this title, in accordance with section
77

•S 2968 IS

1 552 or 553 of title 5, United States Code, as determined

2 by the Secretary.

3 (c) USE OF EXISTING RULES.—In implementing any

4 provision of this title, the Secretary may, in the discretion

5 of the Secretary, provide for the use of existing rules to

6 the extent appropriate, without the need for further rule7 making.

8 TITLE IV—RURAL HOUSING

9 SEC. 401. MUTUAL AND SELF-HELP HOUSING TECHNICAL

10 ASSISTANCE AND TRAINING GRANTS AU11 THORIZATION.

12 Section 513(b) of the Housing Act of 1949 (42

13 U.S.C. 1483(b)) is amended by striking paragraph (8) and

14 inserting the following:

15 ‘‘(8) For grants under paragraphs (1)(A) and

16 (2) of section 523(b)—

17 ‘‘(A) $40,000,000 for fiscal year 2001;

18 ‘‘(B) $45,000,000 for fiscal year 2002; and

19 ‘‘(C) $50,000,000 for fiscal year 2003.’’.

20 SEC. 402. ENHANCEMENT OF THE RURAL HOUSING REPAIR

21 LOAN PROGRAM FOR THE ELDERLY.

22 Section 504(a) of the Housing Act of 1949 (42

23 U.S.C. 1474(a)) is amended by striking ‘‘$2,500’’ and in24 serting ‘‘$7,500’’.
78

•S 2968 IS

1 SEC. 403. ENHANCEMENT OF EFFICIENCY OF RURAL HOUS2 ING PRESERVATION GRANTS.

3 Section 533 of the Housing Act of 1949 (42 U.S.C.

4 1490m) is amended—

5 (1) by striking subsection (c);

6 (2) in subsection (d)(3)(H), by striking

7 ‘‘(e)(1)(B)(iv)’’ and inserting ‘‘(d)(1)(B)(iv)’’; and

8 (3) by redesignating subsections (d) through (i)

9 as subsections (c) through (h), respectively.

10 SEC. 404. PROJECT ACCOUNTING RECORDS AND PRAC11 TICES.

12 Section 515 of the Housing Act of 1949 (42 U.S.C.

13 1485) is amended by striking subsection (z) and inserting

14 the following:

15 ‘‘(z) ACCOUNTING AND RECORDKEEPING REQUIRE16 MENTS.—

17 ‘‘(1) ACCOUNTING STANDARDS.—The Secretary

18 shall require that borrowers in programs authorized

19 by this section maintain accounting records in ac20 cordance with generally accepted accounting prin21 ciples for all projects that receive funds from loans

22 made or guaranteed by the Secretary under this sec23 tion.

24 ‘‘(2) RECORD RETENTION REQUIREMENTS.—

25 The Secretary shall require that borrowers in pro26 grams authorized by this section retain for a period
79

•S 2968 IS

1 of not less than 6 years and make available to the

2 Secretary in a manner determined by the Secretary,

3 all records required to be maintained under this sub4 section and other records identified by the Secretary

5 in applicable regulations.

6 ‘‘(aa) DOUBLE DAMAGE REMEDY FOR UNAUTHOR7 IZED USE OF HOUSING PROJECTS ASSETS AND IN8 COME.—

9 ‘‘(1) ACTION TO RECOVER ASSETS OR IN10 COME.—

11 ‘‘(A) IN GENERAL.—The Secretary may re12 quest the Attorney General to bring an action

13 in a district court of the United States to re14 cover any assets or income used by any person

15 in violation of the provisions of a loan made or

16 guaranteed by the Secretary under this section

17 or in violation of any applicable statute or regu18 lation.

19 ‘‘(B) IMPROPER DOCUMENTATION.—For

20 purposes of this subsection, a use of assets or

21 income in violation of the applicable loan, loan

22 guarantee, statute, or regulation shall include

23 any use for which the documentation in the

24 books and accounts does not establish that the

25 use was made for a reasonable operating ex-
80

•S 2968 IS

1 pense or necessary repair of the project or for

2 which the documentation has not been main3 tained in accordance with the requirements of

4 the Secretary and in reasonable condition for

5 proper audit.

6 ‘‘(C) DEFINITION OF PERSON.—In this

7 subsection, the term ‘person’ means—

8 ‘‘(i) any individual or entity that bor9 rows funds in accordance with programs

10 authorized by this section;

11 ‘‘(ii) any individual or entity holding

12 25 percent or more interest of any entity

13 that borrows funds in accordance with pro14 grams authorized by this section; or

15 ‘‘(iii) any officer, director, or partner

16 of an entity that borrows funds in accord17 ance with programs authorized by this sec18 tion.

19 ‘‘(2) AMOUNT RECOVERABLE.—

20 ‘‘(A) IN GENERAL.—In any judgment fa21 vorable to the United States entered under this

22 subsection, the Attorney General may recover

23 double the value of the assets and income of the

24 project that the court determines to have been

25 used in violation of the provisions of a loan
81

•S 2968 IS

1 made or guaranteed by the Secretary under this

2 section or any applicable statute or regulation,

3 plus all costs related to the action, including

4 reasonable attorney and auditing fees.

5 ‘‘(B) APPLICATION OF RECOVERED

6 FUNDS.—Notwithstanding any other provision

7 of law, the Secretary may apply any recovery of

8 funds under this subsection to activities author9 ized under this section and such funds shall re10 main available until expended.

11 ‘‘(3) TIME LIMITATION.—Notwithstanding any

12 other statute of limitations, the Attorney General

13 may bring an action under this subsection at any

14 time up to and including 6 years after the date that

15 the Secretary discovered or should have discovered

16 the violation of the provisions of this section or any

17 related statutes or regulations.

18 ‘‘(4) CONTINUED AVAILABILITY OF OTHER

19 REMEDIES.—The remedy provided in this subsection

20 is in addition to and not in substitution of any other

21 remedies available to the Secretary or the United

22 States.’’.
82

•S 2968 IS

1 SEC. 405. OPERATING ASSISTANCE FOR MIGRANT FARM

2 WORKER PROJECTS.

3 Section 521(a)(5)(A) of the Housing Act of 1949 (42

4 U.S.C. 1490a(a)(5)(A)) is amended in the last sentence

5 by striking ‘‘project’’ and inserting ‘‘tenant or unit’’.

6 TITLE V—VOUCHER REFORM

7 SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR RENT8 AL VOUCHERS FOR RELOCATION OF WIT9 NESSES AND VICTIMS OF CRIME.

10 Section 8(o)(16) of the United States Housing Act

11 of 1937 (42 U.S.C. 1437f(o)(16)) is amended—

12 (1) in subparagraph (A), by striking ‘‘Of

13 amounts made available for assistance under this

14 subsection’’ and inserting ‘‘Of the amount made

15 available under subparagraph (C)’’;

16 (2) in subparagraph (B), by striking ‘‘Of

17 amounts made available for assistance under this

18 section’’ and inserting ‘‘Of the amount made avail19 able under subparagraph (C)’’; and

20 (3) by adding at the end the following:

21 ‘‘(C) AUTHORIZATION OF APPROPRIA22 TIONS.—In addition to amounts made available

23 to carry out this section for each fiscal year,

24 there is authorized to be appropriated to carry

25 out this paragraph $25,000,000 for each fiscal

26 year.’’.
83

•S 2968 IS

1 SEC. 502. REVISIONS TO THE LEASE ADDENDUM.

2 Section 8(o)(7)(F) of the United States Housing Act

3 of 1937 (42 U.S.C. 1437f(o)(7)(F)) is amended striking

4 the period at the end and inserting the following: ‘‘, except

5 that—

6 ‘‘(i) the provisions of any such adden7 dum shall supplement any existing stand8 ard rental agreement to the extent that the

9 addendum does not modify, nullify, or in

10 any way materially alter any material pro11 vision of the rental agreement; and

12 ‘‘(ii) a provision of the addendum

13 shall be nullified only to extent that the

14 provision conflicts with applicable State or

15 local law.’’.

16 SEC. 503. REPORT REGARDING HOUSING VOUCHER PRO17 GRAM.

18 (a) IN GENERAL.—The Secretary shall publish in the

19 Federal Register a notice soliciting comments and rec20 ommendations regarding the means by which the voucher

21 program under section 8(o) of the United States Housing

22 Act of 1937 (42 U.S.C. 1437f(o)) may be changed and

23 enhanced to promote increased participation by private

24 rental housing owners.

25 (b) REPORT.—Not later than 6 months after the ef26 fective date of this Act, the Secretary shall submit to the
84

•S 2968 IS

1 Committees a report on the results of the solicitation

2 under subsection (a), which shall include a summary and

3 analysis of the recommendations received, especially rec4 ommendations regarding legislative and administrative

5 changes to the program described in subsection (a).

6 SEC. 504. CONDUCTING QUALITY STANDARD INSPECTIONS

7 ON A PROPERTY BASIS RATHER THAN A UNIT

8 BASIS.

9 Section 8(o)(8) of the United States Housing Act of

10 1937 (42 U.S.C. 1437f(o)(8)) is amended—

11 (1) in the paragraph heading, by inserting

12 ‘‘AND PROPERTIES’’ after ‘‘UNITS’’;

13 (2) in subparagraph (A)—

14 (A) by striking ‘‘Except as provided’’ and

15 inserting the following:

16 ‘‘(i) INSPECTION REQUIREMENT.—Ex17 cept as provided’’; and

18 (B) by adding at the end the following:

19 ‘‘(ii) INSPECTION AND CERTIFICATION

20 ON A PROPERTY-WIDE BASIS.—

21 ‘‘(I) IN GENERAL.—For purposes

22 of this subparagraph, each owner

23 shall have the option of having the

24 property of the owner inspected and

25 certified on a property-wide basis,
85

•S 2968 IS

1 subject to the inspection guidelines set

2 forth in subparagraphs (C) and (D).

3 ‘‘(II) CERTIFICATION.—Owners

4 of properties electing a property-wide

5 inspection and not currently receiving

6 tenant-based assistance for any dwell7 ing unit in those properties may elect

8 a property-wide certification by having

9 each dwelling unit that is to be made

10 available for tenant-based assistance

11 inspected before any housing assist12 ance payments are made. Any owner

13 participating in the voucher program

14 under this subsection as of the effec15 tive date of Local Housing Opportuni16 ties Act shall have the option of elect17 ing property-wide certification by

18 sending written notice to the appro19 priate administering agency. Any

20 property that is inspected and cer21 tified on a property-wide basis shall

22 not be required to have units in the

23 property inspected individually in con24 junction with each new rental agree25 ment.’’;
86

•S 2968 IS

1 (3) in subparagraph (C)—

2 (A) in the first sentence—

3 (i) by inserting ‘‘or property’’ after

4 ‘‘dwelling unit’’; and

5 (ii) by inserting ‘‘or property’’ after

6 ‘‘the unit’’; and

7 (B) in the second sentence, by inserting

8 ‘‘or properties’’ after ‘‘dwelling units’’; and

9 (4) in subparagraph (D), in the first sentence—

10 (A) by inserting ‘‘or property’’ after

11 ‘‘dwelling unit’’;

12 (B) by inserting ‘‘or property’’ after ‘‘pay13 ments contract for the unit’’; and

14 (C) by inserting ‘‘or property’’ after

15 ‘‘whether the unit’’.

16 TITLE VI—PROGRAM

17 MODERNIZATION

18 SEC. 601. ASSISTANCE FOR SELF-HELP HOUSING PRO19 VIDERS.

20 (a) REAUTHORIZATION.—Section 11 of the Housing

21 Opportunity Program Extension Act of 1996 (42 U.S.C.

22 12805 note) is amended by striking subsection (p) and

23 inserting the following:

24 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There

25 is authorized to be appropriated to carry out this section
87

•S 2968 IS

1 $25,000,000 for fiscal year 2001 and such sums as may

2 be necessary for each of fiscal years 2002 and 2003.’’.

3 (b) ELIGIBLE EXPENSES.—Section 11(d)(2)(A) of

4 the Housing Opportunity Program Extension Act of 1996

5 (42 U.S.C. 12805 note) is amended by inserting before

6 the period at the end the following: ‘‘, which may include

7 reimbursing an organization, consortium, or affiliate, upon

8 approval of any required environmental review, for

9 nongrant amounts of the organization, consortium, or af10 filiate advanced before such review to acquire land’’.

11 (c) DEADLINE FOR RECAPTURE OF FUNDS.—Section

12 11 of the Housing Opportunity Program Extension Act

13 of 1996 (42 U.S.C. 12805 note) is amended—

14 (1) in subsection (i)(5)—

15 (A) by striking ‘‘if the organization or con16 sortia has not used any grant amounts’’ and in17 serting ‘‘the Secretary shall recapture any grant

18 amounts provided to the organization or con19 sortia that are not used’’;

20 (B) by striking ‘‘(or,’’ and inserting ‘‘, ex21 cept that such period shall be 36 months’’; and

22 (C) by striking ‘‘within 36 months), the

23 Secretary shall recapture such unused

24 amounts’’ and inserting ‘‘and in the case of a

25 grant amounts provided to a local affiliate of
88

•S 2968 IS

1 the organization or consortia that is developing

2 5 or more dwellings in connection with such

3 grant amounts’’; and

4 (2) in subsection (j), by inserting ‘‘and grant

5 amounts provided to a local affiliate of the organiza6 tion or consortia that is developing 5 or more dwell7 ings in connection with such grant amounts’’ before

8 the period at the end.

9 (d) TECHNICAL CORRECTION.—Section 11(e) of the

10 Housing Opportunity Program Extension Act of 1996 (42

11 U.S.C. 12805 note) is amended by striking ‘‘consoria’’ and

12 inserting ‘‘consortia’’.

13 SEC. 602. LOCAL CAPACITY BUILDING FOR COMMUNITY DE14 VELOPMENT AND AFFORDABLE HOUSING.

15 Section 4 of the HUD Demonstration Act of 1993

16 (42 U.S.C. 9816 note) is amended—

17 (1) in subsection (a), by inserting ‘‘National

18 Association of Housing Partnerships,’’ after ‘‘Hu19 manity,’’; and

20 (2) in subsection (e), by striking ‘‘$25,000,000’’

21 and all that follows before the period and inserting

22 ‘‘to carry out this section, $40,000,000 for each of

23 fiscal years 2001 through 2003’’.
89

•S 2968 IS

1 SEC. 603. WORK REQUIREMENT FOR PUBLIC HOUSING

2 RESIDENTS: COORDINATION OF FEDERAL

3 HOUSING ASSISTANCE WITH STATE WELFARE

4 REFORM WORK PROGRAMS.

5 (a) IN GENERAL.—Title I of the United States Hous6 ing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by

7 adding at the end the following:

8 ‘‘SEC. 36. WORK REQUIREMENT.

9 ‘‘(a) IN GENERAL.—Each family residing in public

10 housing, shall comply with the requirements of section 407

11 of the Social Security Act (42 U.S.C. 607) in the same

12 manner and to the same extent as a family receiving as13 sistance under a State program funded under part A of

14 title IV of that Act (42 U.S.C. 601 et seq.).

15 ‘‘(b) WORK REQUIREMENTS.—

16 ‘‘(1) ANNUAL DETERMINATIONS.—

17 ‘‘(A) REQUIREMENT.—For each family re18 siding in public housing that is subject to the

19 requirement under subsection (a), the public

20 housing agency shall, 30 days before the expira21 tion of each lease term of the family under sec22 tion 6(l)(1), review and determine the compli23 ance of the family with the requirement under

24 subsection (a) of this subsection.

25 ‘‘(B) DUE PROCESS.—Each determination

26 under subparagraph (A) shall be made in ac-
90

•S 2968 IS

1 cordance with the principles of due process and

2 on a nondiscriminatory basis.

3 ‘‘(C) NONCOMPLIANCE.— If a public hous4 ing agency determines that a family subject to

5 the requirement under subsection (a) has not

6 complied with the requirement, the agency—

7 ‘‘(i) shall notify the family—

8 ‘‘(I) of such noncompliance;

9 ‘‘(II) that the determination of

10 noncompliance is subject to the ad11 ministrative grievance procedure

12 under subsection (k); and

13 ‘‘(III) that, unless the family en14 ters into an agreement under clause

15 (ii) of this subparagraph, the family’s

16 lease will not be renewed; and

17 ‘‘(ii) may not renew or extend the

18 family’s lease upon expiration of the lease

19 term and shall take such action as is nec20 essary to terminate the tenancy of the

21 household, unless the agency enters into an

22 agreement, before the expiration of the

23 lease term, with the family providing for

24 the family to cure any noncompliance with

25 the requirement under paragraph (1), by
91

•S 2968 IS

1 participating in an economic self-suffi2 ciency program (as defined in section

3 12(g)) for or contributing to community

4 service as many additional hours as the

5 family needs to comply in the aggregate

6 with such requirement over the 12-month

7 term of the lease.

8 ‘‘(2) INELIGIBILITY FOR OCCUPANCY FOR NON9 COMPLIANCE.—A public housing agency may not

10 renew or extend any lease, or provide any new lease,

11 for a dwelling unit in public housing for any family

12 who was subject to the requirement under subsection

13 (a) and failed to comply with the requirement.

14 ‘‘(3) INCLUSION IN PLAN.—Each public housing

15 agency shall include in its public housing agency

16 plan a detailed description of the manner in which

17 the agency intends to implement and administer this

18 subsection.’’.

19 (b) CONFORMING AMENDMENT.—Section 12(c) of

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

21 1437j(c)) is repealed.

22 SEC. 604. SIMPLIFIED FHA DOWNPAYMENT CALCULATION.

23 Section 203(b) of the National Housing Act (12

24 U.S.C. 1709(b)) is amended—
92

•S 2968 IS

1 (1) in paragraph (2), by striking subparagraph

2 (B) and all that follows through ‘‘applicability of

3 this requirement.’’ and inserting the following:

4 ‘‘(B) not to exceed an amount equal to—

5 ‘‘(i) 98.75 percent of the appraised

6 value of the property, if such value is equal

7 to or less than $50,000;

8 ‘‘(ii) 97.65 percent of the appraised

9 value of the property, if such value is in

10 excess of $50,000 but not in excess of

11 $125,000;

12 ‘‘(iii) 97.15 percent of the appraised

13 value of the property, if such value is in

14 excess of $125,000; or

15 ‘‘(iv) notwithstanding clauses (ii) and

16 (iii), 97.75 percent of the appraised value

17 of the property, if such value is in excess

18 of $50,000 and the property is in a State

19 for which the average closing cost exceeds

20 2.10 percent of the average, for the State,

21 of the sales price of properties located in

22 the State for which mortgages have been

23 executed, as determined by the Secretary,

24 except that, in this clause, the term ‘aver25 age closing cost’ means, with respect to a
93

•S 2968 IS

1 State, the average, for mortgages executed

2 for properties in the State, of the total

3 amounts (as determined by the Secretary)

4 of initial service charges, appraisal, inspec5 tion, and other fees and costs (as the Sec6 retary shall approve) that are paid in con7 nection with such mortgages.’’; and

8 (2) by striking paragraph (10).

9 SEC. 605. FLEXIBLE USE OF CDBG FUNDS.

10 Section 105(a)(23) of the Housing and Community

11 Development Act of 1974 (42 U.S.C. 5305(a)(23)) is

12 amended by striking ‘‘housing units acquired’’ and all that

13 follows before the semicolon and inserting the following:

14 ‘‘housing (A) acquired through tax foreclosure proceedings

15 brought by a unit of State or local government, or (B)

16 placed under the supervision of a court for the purpose

17 of remedying conditions dangerous to life, health, and

18 safety, in order to prevent the abandonment and deteriora19 tion of such housing primarily in low- and moderate-in20 come neighborhoods’’.

21 SEC. 606. USE OF SECTION 8 ASSISTANCE IN GRANDFAMILY

22 HOUSING ASSISTED WITH HOME FUNDS.

23 Section 215(a) of the Cranston-Gonzalez National

24 Affordable Housing Act (42 U.S.C. 12745(a)) is amended

25 by adding at the end the following:
94

•S 2968 IS

1 ‘‘(6) WAIVER OF QUALIFYING RENT.—

2 ‘‘(A) IN GENERAL.—For the purpose of

3 providing affordable housing appropriate for

4 families described in subparagraph (B), the

5 Secretary may, upon the application of the

6 project owner, waive the applicability of para7 graph (1)(A) with respect to a dwelling unit

8 if—

9 ‘‘(i) the unit is occupied by such a

10 family, on whose behalf tenant-based as11 sistance is provided under section 8 of the

12 United States Housing Act of 1937 (42

13 U.S.C. 1437f);

14 ‘‘(ii) the rent for the unit is not great15 er than the existing fair market rent for

16 comparable units in the area, as estab17 lished by the Secretary under section 8 of

18 the United States Housing Act of 1937;

19 and

20 ‘‘(iii) the Secretary determines that

21 the waiver, together with waivers under

22 this paragraph for other dwelling units in

23 the project, will result in the use of

24 amounts described in clause (iii) in an ef25 fective manner that will improve the provi-
95

•S 2968 IS

1 sion of affordable housing for such fami2 lies.

3 ‘‘(B) ELIGIBLE FAMILIES.—A family de4 scribed in this subparagraph is a family that

5 consists of at least 1 elderly person (who is the

6 head of household) and 1 or more of such per7 son’s grandchildren, great grandchildren, great

8 nieces, great nephews, or great great grand9 children (as defined by the Secretary), but does

10 not include any parent of such grandchildren,

11 great grandchildren, great nieces, great neph12 ews, or great great grandchildren. Such term

13 includes any such grandchildren, great grand14 children, great nieces, great nephews, or great

15 great grandchildren who have been legally

16 adopted by such elderly person.’’.

17 SEC. 607. SECTION 8 HOMEOWNERSHIP OPTION DOWNPAY18 MENT ASSISTANCE.

19 (a) AMENDMENTS.—Section 8(y) of the United

20 States Housing Act of 1937 (42 U.S.C. 1437f(y)) is

21 amended—

22 (1) by redesignating paragraph (7) as para23 graph (8); and

24 (2) by inserting after paragraph (6) the fol25 lowing:
96

•S 2968 IS

1 ‘‘(7) DOWNPAYMENT ASSISTANCE.—

2 ‘‘(A) AUTHORITY.—A public housing agen3 cy may, in lieu of providing monthly assistance

4 payments under this subsection on behalf of a

5 family eligible for such assistance and at the

6 discretion of the public housing agency, provide

7 assistance for the family in the form of a single

8 grant to be used only as a contribution toward

9 the downpayment required in connection with

10 the purchase of a dwelling for fiscal year 2001

11 and each fiscal year thereafter to the extent

12 provided in advance in appropriations Acts.

13 ‘‘(B) AMOUNT.—The amount of a down14 payment grant on behalf of an assisted family

15 may not exceed the amount that is equal to the

16 sum of the assistance payments that would be

17 made during the first year of assistance on be18 half of the family, based upon the income of the

19 family at the time the grant is to be made.’’.

20 (b) EFFECTIVE DATE.—The amendments made by

21 subsection (a) shall take effect immediately after the

22 amendments made by section 555(c) of the Quality Hous23 ing and Work Responsibility Act of 1998 take effect pur24 suant to such section.
97

•S 2968 IS

1 SEC. 608. REAUTHORIZATION OF NEIGHBORHOOD REIN2 VESTMENT CORPORATION.

3 Section 608(a)(1) of the Neighborhood Reinvestment

4 Corporation Act (42 U.S.C. 8107(a)(1)) is amended by

5 striking the first sentence and inserting the following:

6 ‘‘There is authorized to be appropriated to the corporation

7 to carry out this title $90,000,000 for fiscal year 2001,

8 $95,000,000 for fiscal year 2002, and $95,000,000 for fis9 cal year 2003.’’.

10 TITLE VII—STATE HOUSING

11 BLOCK GRANT

12 SEC. 701. STATE CONTROL OF PUBLIC AND ASSISTED

13 HOUSING FUNDS.

14 Title I of the United States Housing Act of 1937 (42

15 U.S.C. 1437 et seq.) is amended by adding at the end

16 the following:

17 ‘‘SEC. 37. STATE HOUSING BLOCK GRANT.

18 ‘‘(a) PURPOSE.—The purpose of this section is to cre19 ate options for States and to provide maximum freedom

20 to States to determine the manner in which to implement

21 assisted housing reforms.

22 ‘‘(b) AUTHORITY.—Notwithstanding any other provi23 sion of law, a State may assume control of the Federal

24 housing assistance funds available to residents in that

25 State following the execution of a performance agreement

26 with the Secretary in accordance with this section.
98

•S 2968 IS

1 ‘‘(c) PERFORMANCE AGREEMENT.—

2 ‘‘(1) IN GENERAL.—A State may, at its option,

3 execute a performance agreement with the Secretary

4 under which the provisions of law described in sub5 section (d) shall not apply to such State, except as

6 otherwise provided in this section.

7 ‘‘(2) APPROVAL OF PERFORMANCE AGREE8 MENT.—A performance agreement submitted to the

9 Secretary under this section shall be approved by the

10 Secretary unless the Secretary makes a written de11 termination, within 60 days after receiving the per12 formance agreement, that the performance agree13 ment is in violation of the provisions of this section.

14 ‘‘(3) TERMS OF PERFORMANCE AGREEMENT.—

15 Each performance agreement executed pursuant to

16 this section shall include each of the following provi17 sions:

18 ‘‘(A) TERM.—A statement that the term of

19 the performance agreement shall be 5 years.

20 ‘‘(B) APPLICATION OF PROGRAM REQUIRE21 MENTS.—A statement that no program require22 ments of any program included by the State in

23 the performance agreement shall apply, except

24 as otherwise provided in this Act.
99

•S 2968 IS

1 ‘‘(C) LIST.—A list provided by the State of

2 the programs that the State would like to in3 clude in the performance agreement.

4 ‘‘(D) USE OF FUNDS TO IMPROVE HOUS5 ING OPPORTUNITIES FOR LOW-INCOME INDIVID6 UALS AND FAMILIES.—Include a 5-year plan

7 describing the manner in which the State in8 tends to combine and use the funds for pro9 grams included in the performance agreement

10 to advance the low-income housing priorities of

11 the State, improve the quality of low-income

12 housing, reduce homelessness, reduce crime,

13 and encourage self-sufficiency by achieving the

14 performance goals.

15 ‘‘(E) PERFORMANCE GOALS.—

16 ‘‘(i) IN GENERAL.—A statement of

17 performance goals established by the State

18 for the 5-year term of the performance

19 agreement that, at a minimum measures—

20 ‘‘(I) improvement in housing con21 ditions for low-income individuals and

22 families;

23 ‘‘(II) the increase in the number

24 of assisted units that pass housing

25 quality inspections;
100

•S 2968 IS

1 ‘‘(III) the increase in economic

2 opportunity and self-sufficiency and

3 increases the number of residents that

4 obtain employment;

5 ‘‘(IV) the reduction in crime and

6 assistance to victims of crime;

7 ‘‘(V) the reduction in homeless8 ness and the level of poverty;

9 ‘‘(VI) the cost of assisted housing

10 units provided;

11 ‘‘(VII) the level of assistance pro12 vided to people with disabilities and to

13 the elderly;

14 ‘‘(VIII) the success in maintain15 ing and increasing the stock of afford16 able housing and increasing home17 ownership; and

18 ‘‘(IX) numerical goals to attain

19 for each performance goal by the end

20 of the performance agreement.

21 ‘‘(ii) ADDITIONAL INDICATORS OF

22 PERFORMANCE.—A State may identify in

23 the performance agreement any indicators

24 of performance such as reduced cost.
101

•S 2968 IS

1 ‘‘(F) FISCAL RESPONSIBILITIES.—An as2 surance that the State will use fiscal control

3 and fund accounting procedures that will ensure

4 proper disbursement of, and accounting for,

5 Federal funds paid to the State or community

6 under this Act. Recipients will use Generally

7 Accepted Accounting Principles (GAAP).

8 ‘‘(G) CIVIL RIGHTS.—An assurance that

9 the State will meet the requirements of applica10 ble Federal civil rights laws including section

11 25(k).

12 ‘‘(H) STATE FINANCIAL PARTICIPATION.—

13 An assurance that the State will not signifi14 cantly reduce the level of spending of State

15 funds for housing during the term of the per16 formance agreement.

17 ‘‘(I) ANNUAL REPORT.—An assurance that

18 not later than 1 year after the execution of the

19 performance agreement, and annually there20 after, each State shall disseminate widely to the

21 general public, submit to the Secretary, and

22 post on the Internet, a report that includes low23 income housing performance data and a de24 tailed description of the manner in which the

25 State has used Federal funds to provide low-in-
102

•S 2968 IS

1 come housing assistance to meet the terms of

2 the performance agreement.

3 ‘‘(4) AMENDMENT TO PERFORMANCE AGREE4 MENT.—A State may submit an amendment to the

5 performance agreement to the Secretary under the

6 following circumstances:

7 ‘‘(A) REDUCE SCOPE OF PERFORMANCE

8 AGREEMENT.—Not later than 1 year after the

9 execution of the performance agreement, a

10 State may amend the performance agreement

11 through a request to withdraw a program from

12 such agreement. Upon approval by the Sec13 retary of the amendment, the requirements of

14 existing law shall apply for any program with15 drawn from the performance agreement.

16 ‘‘(B) EXPAND SCOPE OF PERFORMANCE

17 AGREEMENT.—Not later than 1 year after the

18 execution of the performance agreement, a

19 State may amend its performance agreement to

20 include additional programs and performance

21 indicators for which it will be held accountable.

22 ‘‘(d) ELIGIBLE PROGRAMS.—

23 ‘‘(1) IN GENERAL.—The provisions of law re24 ferred to in subsection (c), are—
103

•S 2968 IS

1 ‘‘(A) the voucher program for rental assist2 ance under section 8(o) of the United States

3 Housing Act of 1937;

4 ‘‘(B) the programs for project-based assist5 ance under section 8 of the United States

6 Housing Act of 1937;

7 ‘‘(C) the program for housing for the el8 derly under section 202 of the Housing Act of

9 1959;

10 ‘‘(D) the program for housing for persons

11 with disabilities under section 811 of the Cran12 ston-Gonzales National Affordable Housing Act;

13 and

14 ‘‘(2) ALLOCATION AMOUNTS.—A State may

15 choose to combine funds from any or all the pro16 grams described in paragraph (1) without regard to

17 the program requirements of such provisions, except

18 as otherwise provided in this Act.

19 ‘‘(3) USES OF FUNDS.—Funds made available

20 under this section to a State shall be used for any

21 housing purpose other than those prohibited by

22 State law of the participating State.

23 ‘‘(e) WITHIN-STATE DISTRIBUTION OF FUNDS.—

24 The distribution of funds from programs included in the

25 performance agreement from a State to a local housing
104

•S 2968 IS

1 agency within the State shall be determined by the State

2 legislature and the Governor of the State. In a State in

3 which the State constitution or State law designates an4 other individual, entity, or agency to be responsible for

5 housing, such other individual, entity, or agency shall work

6 in consultation with the Governor and State legislature to

7 determine the local distribution of funds.

8 ‘‘(f) SET-ASIDE FOR STATE ADMINISTRATIVE EX9 PENDITURES.—A State may use not more than 3 percent

10 of the total amount of funds allocated to such State under

11 the programs included in the performance agreement for

12 administrative purposes.

13 ‘‘(g) LEVEL OF BLOCK GRANT.—

14 ‘‘(1) IN GENERAL.—During the initial 5 years

15 following execution of the performance agreement, a

16 participating State shall receive the highest level of

17 funding for the 3 years prior to the first year of the

18 performance agreement in each program included in

19 the block grant. This level will be adjusted each year

20 by multiplying the prior year’s amount by the cost21 of-living adjustment determined under section

22 1(f)(3) of the Internal Revenue Code of 1986.

23 ‘‘(2) FORMULA.—Six months after the effective

24 date of the Local Housing Opportunities Act, the

25 Secretary shall submit to Congress recommendations
105

•S 2968 IS

1 for a block grant formula that reflects the relative

2 low-income level and affordable housing needs of

3 each State.

4 ‘‘(h) PERFORMANCE REVIEW.—

5 ‘‘(1) IN GENERAL.—If at the end of the 5-year

6 term of the performance agreement a State has

7 failed to meet at least 80 percent of the performance

8 goals submitted in the performance agreement, the

9 Secretary shall terminate the performance agree10 ment and the State shall be required to comply with

11 the program requirement, in effect at the time of

12 termination, of each program included in the per13 formance agreement.

14 ‘‘(2) RENEWAL.—A State that seeks to renew

15 its performance agreement shall notify the Secretary

16 of its renewal request not less that 6 months prior

17 to the end of the term of the performance agree18 ment. A State that has met at least 80 percent of

19 its performance goals submitted in the performance

20 agreement at the end of the 5-year term may re21 apply to the Secretary to renew its performance

22 agreement for an additional 5-year period. Upon the

23 completion of the 5-year term of the performance

24 agreement or as soon thereafter as the State sub25 mits data required under the agreement, the Sec-
106

•S 2968 IS

1 retary shall renew, for an additional 5-year term, the

2 performance agreement of any State or community

3 that has met at least 80 percent of its performance

4 goals.

5 ‘‘(i) PERFORMANCE REWARD FUND.—To reward

6 States that make significant progress in meeting perform7 ance goals, the Secretary shall annually set aside sufficient

8 funds to grant a reward of up to 5 percent of the funds

9 allocated to participating States.

10 ‘‘(j) DEFINITIONS.—In this section:

11 ‘‘(1) COMMUNITY.—The term ‘community’

12 means any local governing jurisdiction within a

13 State.

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

15 the Secretary of Housing and Urban Development.

16 ‘‘(3) STATE.—The term ‘State’ means each of

17 the 50 States, the District of Columbia, the Com18 monwealth of Puerto Rico, Guam, the United States

19 Virgin Islands, the Commonwealth of the Northern

20 Mariana Islands, and American Samoa.’’.
107

•S 2968 IS

1 TITLE VIII—PRIVATE SECTOR

2 INCENTIVES

3 SEC. 801. SENSE OF CONGRESS REGARDING LOW-INCOME

4 HOUSING TAX CREDIT STATE CEILINGS AND

5 PRIVATE ACTIVITY BOND CAPS.

6 (a) FINDINGS.—Congress finds that—

7 (1) the low-income housing tax credit and pri8 vate activity bonds have been valuable resources in

9 the effort to increase affordable housing;

10 (2) the low-income housing tax credit and pri11 vate activity bonds effectively utilize the ability of

12 the States to deliver resources to the areas of great13 est need within their jurisdictions; and

14 (3) the value of the low-income housing tax

15 credit and the private activity bonds have been erod16 ed by inflation.

17 (b) SENSE OF CONGRESS.—It is the sense of Con18 gress that—

19 (1) the State ceiling for the low-income housing

20 tax credit should be increased by 40 percent in the

21 year 2000, and the level for the State ceiling should

22 be adjusted annually to account for increases in the

23 cost of living; and

24 (2) the private activity bond cap should be in25 creased by 50 percent in the year 2000, and the
108

•S 2968 IS

1 value of the cap should be adjusted annually to ac2 count for increases in the cost of living.

3 TITLE IX—ENFORCEMENT

4 SEC. 901. PROHIBITION ON USE OF APPROPRIATED FUNDS

5 FOR LOBBYING BY THE DEPARTMENT.

6 (a) IN GENERAL.—Subchapter III of chapter 13 of

7 title 31, United States Code, is amended by adding at the

8 end the following:

9 ‘‘§ 1354. Prohibition on lobbying by the Department

10 of Housing and Urban Development

11 ‘‘(a) PROHIBITION.—Except as provided in sub12 section (b), unless such activity has been specifically au13 thorized by an Act of Congress and notwithstanding any

14 other provision of law, no funds made available to the De15 partment of Housing and Urban Development by appro16 priation shall be used by such agency for any activity (in17 cluding the preparation, publication, distribution, or use

18 of any kit, pamphlet, booklet, public presentation, news

19 release, radio, television, or film presentation, video, or

20 other written or oral statement) that in any way tends

21 to promote public support or opposition to any legislative

22 proposal (including the confirmation of the nomination of

23 a public official or the ratification of a treaty) on which

24 congressional action is not complete.

25 ‘‘(b) EXCEPTIONS.—
109

•S 2968 IS

1 ‘‘(1) PRESIDENT AND VICE PRESIDENT.—Sub2 section (a) shall not apply to the President or Vice

3 President.

4 ‘‘(2) CONGRESSIONAL COMMUNICATIONS.—Sub5 section (a) shall not be construed to prevent any of6 ficer or employee of the Department of Housing and

7 Urban Development from—

8 ‘‘(A) communicating directly to a Member

9 of Congress (or to any staff of a Member or

10 committee of Congress) a request for legislation

11 or appropriations that such officer or employee

12 deems necessary for the efficient conduct of the

13 public business; or

14 ‘‘(B) responding to a request for informa15 tion or technical assistance made by a Member

16 of Congress (or by any staff of a Member or

17 committee of Congress).

18 ‘‘(3) PUBLIC COMMUNICATIONS ON VIEWS OF

19 PRESIDENT.—

20 ‘‘(A) IN GENERAL.—Subsection (a) shall

21 not be construed to prevent any Federal agency

22 official whose appointment is confirmed by the

23 Senate, any official in the Executive Office of

24 the President directly appointed by the Presi25 dent or Vice President, or the head of any Fed-
110

•S 2968 IS

1 eral agency described in subsection (e)(2), from

2 communicating with the public, through radio,

3 television, or other public communication media,

4 on the views of the President for or against any

5 pending legislative proposal.

6 ‘‘(B) NONDELEGATION.—Subparagraph

7 (A) does not permit any Federal agency official

8 described in that subparagraph to delegate to

9 another person the authority to make commu10 nications subject to the exemption provided by

11 that subparagraph.

12 ‘‘(c) COMPTROLLER GENERAL.—

13 ‘‘(1) ASSISTANCE OF INSPECTOR GENERAL.—In

14 exercising the authority provided in section 712, as

15 applied to this section, the Comptroller General may

16 obtain, without reimbursement from the Comptroller

17 General, the assistance of the Inspector General

18 within the Department of Housing and Urban De19 velopment when any activity prohibited by subsection

20 (a) of this section is under review.

21 ‘‘(2) EVALUATION.—One year after the date of

22 enactment of this section, the Comptroller General

23 shall report to the Committee on Banking and Fi24 nancial Services of the House of Representatives and

25 the Committee on Banking, Housing, and Urban Af-
111

•S 2968 IS

1 fairs of the Senate on the implementation of this

2 section.

3 ‘‘(3) ANNUAL REPORT.—The Comptroller Gen4 eral shall, in the annual report under section 719(a),

5 include summaries of investigations undertaken by

6 the Comptroller General with respect to subsection

7 (a).

8 ‘‘(d) PENALTIES AND INJUNCTIONS.—

9 ‘‘(1) PENALTIES.—

10 ‘‘(A) IN GENERAL.—The Attorney General

11 may bring a civil action in the appropriate dis12 trict court of the United States against any

13 person who engages in conduct constituting an

14 offense under this section, whether such offense

15 is due to personal participation in any activity

16 prohibited in subsection (a) or improper delega17 tion to another person the authority to make

18 exempt communications in violation of sub19 section (b)(3), and, upon proof of such conduct

20 by a preponderance of the evidence, such person

21 shall be subject to a civil penalty of not less

22 than $5,000 and not more than $10,000 for

23 each violation.

24 ‘‘(B) OTHER REMEDIES NOT PRE25 CLUDED.—The imposition of a civil penalty
112

•S 2968 IS

1 under this subsection does not preclude any

2 other criminal or civil statutory, common law,

3 or administrative remedy, which is available by

4 law to the United States or any other person.

5 ‘‘(2) INJUNCTIONS.—

6 ‘‘(A) IN GENERAL.—If the Attorney Gen7 eral has reason to believe that a person is en8 gaging in conduct constituting an offense under

9 this section, whether such offense is due to per10 sonal participation in any activity prohibited in

11 subsection (a) or improper delegation to an12 other person the authority to make exempt

13 communications in violation of subsection

14 (b)(3)—

15 ‘‘(i) the Attorney General may peti16 tion an appropriate district court of the

17 United States for an order prohibiting that

18 person from engaging in such conduct; and

19 ‘‘(ii) the court may issue an order

20 prohibiting that person from engaging in

21 such conduct if the court finds that the

22 conduct constitutes such an offense.

23 ‘‘(B) OTHER REMEDIES NOT PRE24 CLUDED.—The filing of a petition under this

25 section does not preclude any other remedy
113

•S 2968 IS

1 which is available by law to the United States

2 or any other person.

3 ‘‘(e) DEFINITION.—In this section, the term ‘Federal

4 agency’ means—

5 ‘‘(1) any executive agency, within the meaning

6 of section 105 of title 5; and

7 ‘‘(2) any private corporation created by a law of

8 the United States for which the Congress appro9 priates funds.’’.

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for chapter 13 of title 31, United States Code, is

12 amended by inserting after the item relating to section

13 1353 the following:

‘‘1354. Prohibition on lobbying by the Department of Housing and Urban Development.’’.

14 (c) APPLICABILITY.—The amendments made by this

15 section shall apply to the use of funds after the effective

16 date of this Act, including funds appropriated or received

17 on or before that date.

18 SEC. 902. REGULATIONS.

19 Not later than 6 months after the date of enactment

20 of this Act, the Secretary shall issue such regulations as

21 may be necessary to carry out this Act and the amend22 ments made by this Act.

Æ