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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2968 Introduced in Senate (IS)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Local Housing 
Opportunities Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Effective date.
                     TITLE I--PROGRAM CONSOLIDATION

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.
                 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.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``Committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Subcommittee on Housing 
                and Transportation of that Committee; and
                    (B) the Committee on Banking and Financial Services 
                of the House of Representatives and the Subcommittee on 
                Housing and Community Opportunity of that Committee;
            (2) the term ``Department'' means the Department of Housing 
        and Urban Development; and
            (3) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.

SEC. 3. EFFECTIVE DATE.

    Except as otherwise expressly provided in this Act or an amendment 
made by this Act, this Act and the amendments made by this Act shall 
take effect on October 1, 2001.

                     TITLE I--PROGRAM CONSOLIDATION

SEC. 101. PROHIBITION OF UNAUTHORIZED PROGRAMS AT THE DEPARTMENT.

    (a) In General.--Beginning on the effective date of this Act, the 
Secretary may not carry out any program that is not explicitly 
authorized by Federal law.
    (b) Report.--Not later than 60 days after the date of enactment of 
this Act, the Secretary shall submit to the Committees a report, which 
shall include a detailed description of each program carried out by the 
Department, and the statutory authorization for that program or, if no 
explicit authorization exists, an explanation of the legal authority 
under which the program is being carried out.

SEC. 102. ELIMINATION AND CONSOLIDATION OF HUD PROGRAMS.

    (a) Community Investment Corporation Demonstration.--Section 853 of 
the Housing and Community Development Act of 1992 (42 U.S.C. 5305 note) 
is repealed.
    (b) New Towns Demonstration Program for Emergency Relief of Los 
Angeles.--Title XI of the Housing and Community Development Act of 1992 
(42 U.S.C. 5318 note) is repealed.
    (c) Solar Assistance Financing Entity.--Section 912 of the Housing 
and Community Development Act of 1992 (42 U.S.C. 5511a) is repealed.
    (d) Urban Development Action Grants.--
            (1) UDAG repeal.--Section 119 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5318) is repealed.
            (2) Conforming amendments.--Title I of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is 
        amended--
                    (A) in section 104(d)(1), by striking ``or 119'' 
                and ``or section 119'';
                    (B) in section 104(d)(2), by striking ``or 119'';
                    (C) in section 104(d)(2)(C), by striking ``or 
                119'';
                    (D) in section 107(e)(1), by striking ``, section 
                106(a)(1), or section 119'' and inserting ``or section 
                106(a)(1),'';
                    (E) in section 107(e)(2), by striking ``section 
                106(a)(1), or section 119'' and inserting ``or section 
                106(a)(1)''; and
                    (F) in section 113(a)--
                            (i) in paragraph (2), by adding ``and'' at 
                        the end;
                            (ii) by striking paragraph (3); and
                            (iii) by redesignating paragraph (4) as 
                        paragraph (3).
    (e) Special Purpose Grants.--Section 107 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking subparagraphs (C), (D), and (G);
                    (B) by redesignating subparagraphs (E), (F), (H), 
                and (I) as subparagraphs (C), (D), (E), and (F), 
                respectively; and
                    (C) in subparagraph (D) (as redesignated) by 
                striking ``(6)'' and inserting ``(5)''; and
            (2) in subsection (b)--
                    (A) in paragraph (4), by adding ``and'' at the end;
                    (B) by striking paragraphs (5) and (7);
                    (C) by redesignating paragraph (6) as paragraph 
                (5); and
                    (D) in paragraph (5) (as redesignated) by striking 
                ``; and'' and inserting a period.
    (f) Moderate Rehabilitation Assistance in Disasters.--Section 932 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
1437c note) is repealed.
    (g) Rent Supplement Program.--
            (1) Repeal.--Section 101 of the Housing and Urban 
        Development Act of 1965 (12 U.S.C. 1701s) is repealed.
            (2) References.--Any reference in any provision of law to 
        section 101 of the Housing and Urban Development Act of 1965 
        (12 U.S.C. 1701s) shall be construed to refer to that section 
        as in existence immediately before the effective date of this 
        Act.
    (h) National Homeownership Trust Demonstration.--Subtitle A of 
title III of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12851 et seq.) is repealed.
    (i) Hope Programs.--
            (1) Repeal of hope i program.--
                    (A) Hope i program repeal.--Title III of the United 
                States Housing Act of 1937 (42 U.S.C. 1437aaa et seq.) 
                is repealed.
                    (B) Conforming amendments.--
                            (i) United states housing act of 1937.--
                        Section 8(b) of the United States Housing Act 
                        of 1937 (42 U.S.C. 1437f(b)) is amended--
                                    (I) in paragraph (1), by striking 
                                ``(1) In general.--''; and
                                    (II) by striking paragraph (2).
                            (ii) Housing and community development act 
                        of 1974.--Section 213(e) of the Housing and 
                        Community Development Act of 1974 (42 U.S.C. 
                        1439(e)) is amended by striking ``(b)(1)'' and 
                        inserting ``(b)''.
            (2) Repeal of hope ii and iii programs.--
                    (A) Hope ii.--Subtitle B of title IV of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12871 et seq.) is repealed.
                    (B) Hope iii.--
                            (i) In general.--Subtitle C of title IV of 
                        the Cranston-Gonzalez National Affordable 
                        Housing Act (42 U.S.C. 12891 et seq.) is 
                        repealed.
                            (ii) Closeout authority.--Notwithstanding 
                        the repeal made by clause (i), the Secretary 
                        may continue to exercise the authority under 
                        sections 445(b), 445(c)(3), 445(c)(4), and 
                        446(4) of title IV of the Cranston-Gonzalez 
                        National Affordable Housing Act (as amended by 
                        subparagraph (C) of this paragraph) after the 
                        effective date of this Act, to the extent 
                        necessary to terminate the programs under 
                        subtitle C of title IV of that Act.
                    (C) Amendment of hope iii program authority for 
                closeout.--
                            (i) Sale and resale proceeds.--Section 445 
                        of the Cranston-Gonzalez National Affordable 
                        Housing Act (42 U.S.C. 12895) is amended--
                                    (I) in subsection (b), by striking 
                                ``costs'' and all that follows through 
                                ``expenses,'';
                                    (II) in subsection (c)(3), by 
                                striking ``the Secretary or''; and
                                    (III) in subsection (c)(4)--
                                            (aa) in the first sentence, 
                                        by striking ``Fifty percent of 
                                        any'' and inserting ``Any''; 
                                        and
                                            (bb) by striking the second 
                                        and third sentences.
                            (ii) Eligibility of private property.--
                        Section 446(4) of the Cranston-Gonzalez 
                        National Affordable Housing Act (42 U.S.C. 
                        12896(4)) is amended to read as follows:
            ``(4) The term `eligible property' means a single family 
        property containing not more than 4 units (excluding public 
        housing under the United States Housing Act of 1937, or Indian 
        housing under the Native American Housing Assistance and Self-
        Determination Act of 1996).''.
            (3) Conforming amendments.--
                    (A) In general.--Title IV of the Cranston-Gonzalez 
                National Affordable Housing Act is amended--
                            (i) by striking sections 401 and 402 (42 
                        U.S.C. 1437aaa note; 12870);
                            (ii) in section 454(b)(2) (42 U.S.C. 
                        12899c(b)(2)), by striking ``to be used for the 
                        purposes of providing homeownership under 
                        subtitle B and subtitle C of this title''; and
                            (iii) in section 455 (42 U.S.C. 12899d), by 
                        striking subsection (d) and redesignating 
                        subsections (e) through (g) as subsections (d) 
                        through (f), respectively.
                    (B) Department of housing and urban development 
                act.--Section 7(r)(2) of the Department of Housing and 
Urban Development Act (42 U.S.C. 3535(r)(2)) is amended--
                            (i) in subparagraph (A), by striking 
                        ``titles I and II'' and inserting ``title I''; 
                        and
                            (ii) in subparagraph (K), by striking 
                        ``titles II, III, and IV'' and inserting 
                        ``title II''.
    (j) Energy Efficiency Demonstration.--Section 961 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12712 note) is 
repealed.
    (k) Technical Assistance and Training for IHAs.--Section 917 of the 
Housing and Community Development Act of 1992 (Public Law 102-550; 106 
Stat. 3882) is repealed.
    (l) Elimination of Investor-Owners Under the Section 203(k) 
Program.--Section 203(g)(2) of the National Housing Act (12 U.S.C. 
1709(g)(2)) is amended--
            (1) in subparagraph (D), by adding ``or'' at the end;
            (2) by striking subparagraph (E); and
            (3) by redesignating subparagraph (F) as subparagraph (E).
    (m) Certificate and Voucher Assistance for Rental Rehabilitation 
Projects.--Section 8(u) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(u)) is repealed.
    (n) Mortgage and Loan Insurance Programs.--
            (1) In general.--Sections 220(h), 245(b), and titles VI, 
        VII, and IX of the National Housing Act are repealed.
            (2) Additional amendments.--The National Housing Act is 
        amended--
                    (A) in section 1 (12 U.S.C. 1702), by striking 
                ``VI, VII, VIII, IX'' each place it appears and 
                inserting ``VIII,'';
                    (B) in section 203(k)(5) (12 U.S.C. 1709(k)(5)), by 
                striking the second sentence; and
                    (C) in section 223 (12 U.S.C. 1715n)--
                            (i) by striking subsection (a) and 
                        inserting the following:
    ``(a) In General.--Notwithstanding any of the provisions of this 
Act and without regard to limitations upon eligibility contained in any 
section or title of this Act, other than the limitation in section 
203(g), the Secretary is authorized upon application by the mortgagee, 
to insure or make commitments to insure under any section or title of 
this Act any mortgage--
            ``(1) given to refinance an existing mortgage insured under 
        this Act, except that the principal amount of any such 
        refinancing mortgage shall not exceed the original principal 
        amount or the unexpired term of such existing mortgage and 
        shall bear interest at such rate as may be agreed upon by the 
        mortgagor and the mortgagee, except that--
                    ``(A) the principal amount of any such refinancing 
                mortgage may equal the outstanding balance of an 
                existing mortgage insured pursuant to section 245, if 
                the amount of the monthly payment due under the 
                refinancing mortgage is less than that due under the 
                existing mortgage for the month in which the 
                refinancing mortgage is executed;
                    ``(B) a mortgagee may not require a minimum 
                principal amount to be outstanding on the loan secured 
                by the existing mortgage;
                    ``(C) in any case involving the refinancing of a 
                loan in which the Secretary determines that the 
                insurance of a mortgage for an additional term will 
                inure to the benefits of the applicable insurance fund, 
                taking into consideration the outstanding insurance 
                liability under the existing insured mortgage, such 
                refinancing mortgage may have a term not more than 
                twelve years in excess of the unexpired term of such 
                existing insured mortgage; and
                    ``(D) any multifamily mortgage that is refinanced 
                under this paragraph shall be documented through 
                amendments to the existing insurance contract and shall 
                not be structured through the provisions of a new 
                insurance contract; or
            ``(2) executed in connection with the sale by the 
        Government of any housing acquired pursuant to section 1013 of 
        the Demonstration Cities and Metropolitan Development Act of 
        1966.''; and
                            (ii) in subsection (d)(5), by striking ``A 
                        loan'' and all that follows through ``and 
                        loans'' and inserting ``Loans''.
    (o) Transition Rules.--
            (1) Effect on contracts.--The repeal of program authorities 
        under this section shall not affect any legally binding 
        obligation entered into before the effective date of this Act.
            (2) Savings provisions.--
                    (A) In general.--Except as otherwise provided in 
                this Act, any funds or obligation authorized by, 
                activity conducted under, or mortgage or loan insured 
                under, a provision of law repealed by this section 
                shall continue to be governed by the provision as in 
                existence immediately before the effective date of this 
                Act.
                    (B) Insurance.--The insurance authorities repealed 
                by subsection (n)(1) and the provisions of the National 
                Housing Act applicable to a mortgage or loan insured 
                under any of such authorities, as such authorities and 
                provisions existed immediately before repeal, shall 
                continue to apply to a mortgage or loan insured under 
                any of such authorities prior to repeal, and a mortgage 
                or loan for which, prior to the date of repeal, the 
                Secretary has issued a firm commitment for insurance 
                under any of such authorities or a Direct Endorsement 
                underwriter has approved, in a form acceptable to the 
                Secretary, a mortgage or loan for insurance under such 
                authorities.

SEC. 103. HUD CONSOLIDATION TASK FORCE.

    (a) In General.--There is established a task force to be known as 
the ``HUD Consolidation Task Force'', which shall--
            (1) consist of the Comptroller General of the United 
        States, the Secretary, and the Inspector General of the 
        Department; and
            (2) conduct an analysis of legislative and regulatory 
        options to reduce the number of programs carried out by the 
        Department through consolidation, elimination, and transfer to 
        other departments and agencies of the Federal government and to 
        State and local governments.
    (b) Report.--Not later than 6 months after the effective date of 
this Act, the HUD Consolidation Task Force shall submit to the 
Committees a report, which shall include the results of the analysis 
under subsection (a)(2).

                    TITLE II--COMMUNITY EMPOWERMENT

SEC. 201. REAUTHORIZATION OF COMMUNITY DEVELOPMENT BLOCK GRANTS AND 
              PROHIBITION OF SET-ASIDES.

    (a) Reauthorization.--The last sentence of section 103 of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5303) is 
amended to read as follows: ``For purposes of assistance under section 
106, there is authorized to be appropriated $4,850,000,000 for fiscal 
year 2001 and such sums as may be necessary for each of fiscal years 
2002 through 2005.''.
    (b) Prohibition of Set-Asides.--Section 103 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5303) is amended--
            (1) by inserting ``(a) In General.--'' after ``Sec. 103.''; 
        and
            (2) by adding at the end the following:
    ``(b) Prohibition of Set-Asides.--Except as provided in paragraphs 
(1) and (2) of section 106(a) and in section 107, amounts appropriated 
pursuant to subsection (a) of this section or otherwise to carry out 
this title (other than section 108) shall be used only for formula-
based grants allocated pursuant to section 106 and may not be otherwise 
used unless the provision of law providing for such other use 
specifically refers to this subsection and specifically states that 
such provision modifies or supersedes the provisions of this 
subsection.
    ``(c) Point of Order.--Notwithstanding any other provision of law, 
it shall not be in order in the Senate to consider any measure or 
amendment that provides for a set-aside prohibited under subsection 
(b). The point of order provided by this subsection may only be waived 
or suspended by a vote of three-fifths of the members of the Senate 
duly chosen and sworn.''.

SEC. 202. COMMUNITY NOTIFICATION OF OPT-OUTS.

    Section 8(c)(8)(A) of the Housing Act of 1937 (42 U.S.C. 
1437f(c)(8)(A)) is amended by adding at the end the following: ``Upon 
receipt of a written notice under this subparagraph, the Secretary 
shall forward a copy of the notice to the top elected official for the 
unit of local government in which the property is located.''.

SEC. 203. URBAN HOMESTEAD REQUIREMENT.

    (a) Disposition of Unoccupied and Substandard Public Housing.--
            (1) Publication in federal register.--
                    (A) In general.--Subject to subparagraph (B), 
                beginning 6 months after the effective date of this 
                Act, and every 6 months thereafter, the Secretary shall 
                publish in the Federal Register a list of each 
                unoccupied multifamily housing project, substandard 
                multifamily housing project, and other residential 
                property that is owned by the Secretary.
                    (B) Exception for certain projects and 
                properties.--
                            (i) Projects.--A project described in 
                        subparagraph (A) shall not be included in a 
                        list published under subparagraph (A) if less 
                        than 6 months have elapsed since the later of--
                                    (I) the date on which the project 
                                was acquired by the Secretary; or
                                    (II) the date on which the project 
                                was determined to be unoccupied or 
                                substandard.
                            (ii) Properties.--A property described in 
                        subparagraph (A) shall not be included in a 
                        list published under subparagraph (A) if less 
                        than 6 months have elapsed since the date on 
                        which the property was acquired by the 
                        Secretary.
    (b) Transfer of Unoccupied and Substandard HUD-Held Housing to 
Local Governments and Community Development Corporations.--Section 204 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1997 (12 
U.S.C. 1715z-11a) is amended--
            (1) by striking ``Flexible Authority.--'' and inserting the 
        following: ``(a) Flexible Authority for Disposition of 
        Multifamily Projects.--''; and
            (2) by adding at the end the following:
    ``(b) Transfer of Unoccupied and Substandard Housing to Local 
Governments and Community Development Corporations.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Community development corporation.--The term 
                `community development corporation' means a nonprofit 
                organization whose primary purpose is to promote 
                community development by providing housing 
                opportunities for low-income families.
                    ``(B) Cost recovery basis.--The term `cost recovery 
                basis' means, with respect to any sale of a residential 
                property by the Secretary, that the purchase price paid 
                by the purchaser is equal to or greater than or equal 
                to the costs incurred by the Secretary in connection 
                with such property during the period beginning on the 
                date on which the Secretary acquires title to the 
                property and ending on the date on which the sale is 
                consummated.
                    ``(C) Multifamily housing project.--The term 
                `multifamily housing project' has the meaning given the 
                term in section 203 of the Housing and Community 
                Development Amendments of 1978.
                    ``(D) Qualified hud property.--The term `qualified 
                HUD property' means any property that is owned by the 
                Secretary and is--
                            ``(i) an unoccupied multifamily housing 
                        project;
                            ``(ii) a substandard multifamily housing 
                        project; or
                            ``(iii) an unoccupied single family 
                        property that--
                                    ``(I) has been determined by the 
                                Secretary not to be an eligible 
                                property under section 204(h) of the 
                                National Housing Act (12 U.S.C. 
                                1710(h)); or
                                    ``(II) is an eligible property 
                                under such section 204(h), but--
                                            ``(aa) is not subject to a 
                                        specific sale agreement under 
                                        such section; and
                                            ``(bb) has been determined 
                                        by the Secretary to be 
                                        inappropriate for continued 
                                        inclusion in the program under 
                                        such section 204(h) pursuant to 
                                        paragraph (10) of such section.
                    ``(E) Residential property.--The term `residential 
                property' means a property that is a multifamily 
                housing project or a single family property.
                    ``(F) Secretary.--The term `Secretary' means the 
                Secretary of Housing and Urban Development.
                    ``(G) Severe physical problems.--The term `severe 
                physical problems' means, with respect to a dwelling 
                unit, that the unit--
                            ``(i) lacks hot or cold piped water, a 
                        flush toilet, or both a bathtub and a shower in 
                        the unit, for the exclusive use of that unit;
                            ``(ii) on not less than 3 separate 
                        occasions during the preceding winter months, 
                        was uncomfortably cold for a period of more 
                        than 6 consecutive hours due to a malfunction 
                        of the heating system for the unit;
                            ``(iii) has no functioning electrical 
                        service, exposed wiring, any room in which 
                        there is not a functioning electrical outlet, 
                        or has experienced 3 or more blown fuses or 
                        tripped circuit breakers during the preceding 
                        90-day period;
                            ``(iv) is accessible through a public 
                        hallway in which there are no working light 
                        fixtures, loose or missing steps or railings, 
                        and no elevator; or
                            ``(v) has severe maintenance problems, 
                        including water leaks involving the roof, 
                        windows, doors, basement, or pipes or plumbing 
                        fixtures, holes or open cracks in walls or 
                        ceilings, severe paint peeling or broken 
                        plaster, and signs of rodent infestation.
                    ``(H) Single family property.--The term `single 
                family property' means a 1- to 4-family residence.
                    ``(I) Substandard.--The term `substandard' means, 
                with respect to a multifamily housing project, that 25 
                percent or more of the dwelling units in the project 
                have severe physical problems.
                    ``(J) Unit of general local government.--The term 
                `unit of general local government' has the meaning 
                given that term in section 102(a) of the Housing and 
                Community Development Act of 1974.
                    ``(K) Unoccupied.--The term `unoccupied' means, 
                with respect to a residential property, that the unit 
                of general local government having jurisdiction over 
                the area in which the project is located has certified 
                in writing that the property is not inhabited.
            ``(2) Transfer authority.--Notwithstanding the authority 
        under subsection (a) and the last sentence of section 204(g) of 
        the National Housing Act (12 U.S.C. 1710(g)), the Secretary of 
        Housing and Urban Development shall transfer ownership of any 
        qualified HUD property included in the most recent list 
        published by the Secretary under subsection (a) to a unit of 
        general local government having jurisdiction for the area in 
        which the property is located or to a community development 
        corporation which operates within such a unit of general local 
        government in accordance with this subsection, but only to the 
        extent that units of general local government and community 
        development corporations submit a written request for the 
        transfer.
            ``(3) Timing.--The Secretary shall establish procedures 
        that provide for--
                    ``(A) time deadlines for transfers under this 
                subsection;
                    ``(B) notification to units of general local 
                government and community development corporations of 
                qualified HUD properties in their jurisdictions;
                    ``(C) such units and corporations to express 
                interest in the transfer under this subsection of such 
                properties;
                    ``(D) a right of first refusal for transfer of 
                qualified HUD properties to such units and 
                corporations, under which the Secretary shall accept an 
                offer to purchase such a property made by such unit or 
                corporation during a period established by the 
                Secretary, but in the case of an offer made by a 
                community development corporation only if the offer 
                provides for purchase on a cost recovery basis; and
                    ``(E) a written explanation, to any unit of general 
                local government or community development corporation 
                making an offer to purchase a qualified HUD property 
                under this subsection that is not accepted, of the 
                reason that such offer was not acceptable.
            ``(4) Other disposition.--With respect to any qualified HUD 
        property, if the Secretary does not receive an acceptable offer 
        to purchase the property pursuant to the procedure established 
        under paragraph (3), the Secretary shall dispose of the 
        property to the unit of general local government in which 
        property is located or to community development corporations 
        located in such unit of general local government on a 
        negotiated, competitive bid, or other basis, on such terms as 
        the Secretary deems appropriate.
            ``(5) Satisfaction of indebtedness.--Before transferring 
        ownership of any qualified HUD property pursuant to this 
        subsection, the Secretary shall satisfy any indebtedness 
        incurred in connection with the property to be transferred, by 
        canceling the indebtedness.
            ``(6) Determination of status of properties.--To ensure 
        compliance with the requirements of this subsection, the 
        Secretary shall take the following actions:
                    ``(A) Upon enactment.--Not later than 60 days after 
                the effective date of the Local Housing Opportunities 
                Act, the Secretary shall assess each residential 
                property owned by the Secretary to determine whether 
                the property is a qualified HUD property.
                    ``(B) Upon acquisition.--Upon acquiring any 
                residential property, the Secretary shall promptly 
                determine whether the property is a qualified HUD 
                property.
                    ``(C) Updates.--The Secretary shall periodically 
                reassess the residential properties owned by the 
                Secretary to determine whether any such properties have 
                become qualified HUD properties.
            ``(7) Tenant leases.--This subsection shall not affect the 
        terms or the enforceability of any contract or lease entered 
        into with respect to any residential property before the date 
        that such property becomes a qualified HUD property.
            ``(8) Use of property.--Property transferred under this 
        subsection shall be used only for appropriate neighborhood 
        revitalization efforts, including homeownership, rental units, 
        commercial space, and parks, consistent with local zoning 
        regulations, local building codes, and subdivision regulations 
        and restrictions of record.
            ``(9) Inapplicability to properties made available for 
        homeless.--Notwithstanding any other provision of this 
        subsection, this subsection shall not apply to any property 
        that the Secretary determines is to be made available for use 
        by the homeless pursuant to subpart E of part 291 of title 24, 
        Code of Federal Regulations (as in effect on January 1, 2000), 
        during the period that the properties are so available.
            ``(10) Protection of existing contracts.--This subsection 
        may not be construed to alter, affect, or annul any legally 
        binding obligations entered into with respect to a qualified 
        HUD property before the property becomes a qualified HUD 
        property.''.
    (c) Procedures.--Not later than 6 months after the date of 
enactment of this Act, the Secretary shall establish, by rule, 
regulation, or order, such procedures as may be necessary to carry out 
this section and the amendments made by this section.

SEC. 204. AUTHORIZATION OF MOVING TO WORK PROGRAM.

    Section 204 of the Departments of Veterans Affairs and Housing and 
Urban Development, and Independent Agencies Appropriations Act, 1996 
(as contained in section 101(e) of the Omnibus Consolidated Rescissions 
and Appropriations Act of 1996) (42 U.S.C. 1437f note) is amended--
            (1) in the section heading, by striking ``demonstration'' 
        and inserting ``program'';
            (2) in subsection (a), by striking ``this demonstration'' 
        and inserting ``this section'';
            (3) in subsection (b)--
                    (A) in the first sentence--
                            (i) by striking ``demonstration''; and
                            (ii) by striking ``up to 30'';
                    (B) in the third sentence, by striking ``Under the 
                demonstration, notwithstanding'' and inserting 
                ``Notwithstanding''; and
                    (C) by striking the second sentence;
            (4) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``demonstration'' and inserting ``program 
                under this section'';
                    (B) in paragraph (3)--
                            (i) in subparagraph (A), by striking 
                        ``demonstration'';
                            (ii) in subparagraph (B), by striking 
                        ``demonstration'' and inserting ``section''; 
                        and
                            (iii) in subparagraph (E), by striking 
                        ``demonstration program'' and inserting 
                        ``program under this section''; and
                    (C) in paragraph (4), by striking ``demonstration'' 
                and inserting ``program under this section'';
            (5) by striking subsection (d) and inserting the following:
    ``(d) Approval of Applications.--Not later than 60 days after 
receiving an application submitted in accordance with subsection (c), 
the Secretary shall approve the application, unless the Secretary makes 
a written determination that the applicant has a most recent score 
under the public housing management assessment program under section 
6(j)(2) of the United States Housing Act of 1937 (or any successor 
assessment program for public housing agencies), that is among the 
lowest 20 percent of the scores of all public housing agencies.'';
            (6) in subsection (e)--
                    (A) in paragraph (1), by striking ``this 
                demonstration'' and inserting ``the program under this 
                section''; and
                    (B) in paragraph (2), by striking ``demonstration'' 
                and inserting ``program under this section'';
            (7) in subsection (f), by striking ``demonstration under 
        this part'' and inserting ``program under this section'';
            (8) in subsection (g)--
                    (A) in paragraph (1), by striking ``this 
                demonstration'' and inserting ``the program under this 
                section''; and
                    (B) in paragraph (2), by striking ``demonstration'' 
                and inserting ``program under this section'';
            (9) in subsection (h), by striking ``demonstration'' each 
        place it appears and inserting ``program under this section'';
            (10) in subsection (i), by striking ``demonstration'' and 
        inserting ``program under this section''; and
            (11) in subsection (j), by striking ``demonstration'' and 
        inserting ``program''.

                 TITLE III--HOMELESS ASSISTANCE REFORM

SEC. 301. CONSOLIDATION OF HUD HOMELESS ASSISTANCE FUNDS.

    The purposes of this title are to facilitate the effective and 
efficient management of the homeless assistance programs of the 
Department by--
            (1) reducing and preventing homelessness by supporting the 
        creation and maintenance of community-based, comprehensive 
        systems dedicated to returning families and individuals to 
        self-sufficiency;
            (2) reorganizing the homeless housing assistance 
        authorities under the Stewart B. McKinney Homeless Assistance 
        Act into a McKinney Homeless Assistance Performance Fund;
            (3) assisting States and local governments, in partnership 
        with private nonprofit service providers, to use homeless 
        funding more efficiently and effectively;
            (4) simplifying and making more flexible the provision of 
        Federal homeless assistance;
            (5) maximizing the ability of a community to implement a 
        coordinated, comprehensive system for providing assistance to 
        homeless families and individuals;
            (6) making more efficient and equitable the manner in which 
        homeless assistance is distributed;
            (7) reducing the Federal role in local decisionmaking for 
        homeless assistance programs;
            (8) reducing the costs to governmental jurisdictions and 
        private nonprofit organizations in applying for and using 
        assistance; and
            (9) advancing the goal of meeting the needs of the homeless 
        population through mainstream programs and establishing 
        continuum of care systems necessary to achieve that goal.

SEC. 302. ESTABLISHMENT OF THE MCKINNEY HOMELESS ASSISTANCE PERFORMANCE 
              FUND.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended to read as follows:

       ``TITLE IV--McKINNEY HOMELESS ASSISTANCE PERFORMANCE FUND

``SEC. 401. DEFINITIONS.

    ``In this title:
            ``(1) Allocation unit of general local government.--
                    ``(A) In general.--The term `allocation unit of 
                general local government' means a metropolitan city or 
                an urban county.
                    ``(B) Consortia.--The term `allocation unit of 
                general local government' may include a consortium of 
                geographically contiguous metropolitan cities and urban 
                counties, if the Secretary determines that the 
                consortium--
                            ``(i) has sufficient authority and 
                        administrative capability to carry out the 
                        purposes of this title on behalf of its member 
                        jurisdictions; and
                            ``(ii) will, according to a written 
                        certification by the State (or States, if the 
                        consortium includes jurisdictions in more than 
                        1 State), direct its activities to the 
                        implementation of a continuum of care system 
                        within the State or States.
            ``(2) Applicant.--The term `applicant' means a grantee 
        submitting an application under section 403.
            ``(3) Consolidated plan.--The term `consolidated plan' 
        means the single comprehensive plan that the Secretary 
        prescribes for submission by jurisdictions (which shall be 
        coordinated and consistent with any 5-year comprehensive plan 
        of the public housing agency required under section 14(e) of 
        the United States Housing Act of 1937) that consolidates and 
        fulfills the requirements of--
                    ``(A) the comprehensive housing affordability 
                strategy under title I of the Cranston-Gonzalez 
                National Affordable Housing Act;
                    ``(B) the community development plan under section 
                104 of the Housing and Community Development Act of 
                1974; and
                    ``(C) the submission requirements for formula 
                funding under--
                            ``(i) the Community Development Block Grant 
                        program (authorized by title I of the Housing 
                        and Community Development Act of 1974);
                            ``(ii) the HOME program (authorized by 
                        title II of the Cranston-Gonzalez National 
                        Affordable Housing Act);
                            ``(iii) the McKinney Homeless Assistance 
                        Performance Fund (authorized under this title); 
                        and
                            ``(iv) the AIDS Housing Opportunity Act 
                        (authorized by subtitle D of title VIII of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act).
            ``(4) Continuum of care system.--The term `continuum of 
        care system' means a system developed by a State or local 
        homeless assistance board that includes--
                    ``(A) a system of outreach and assessment, 
                including drop-in centers, 24-hour hotlines, 
                counselors, and other activities designed to engage 
                homeless individuals and families, bring them into the 
                continuum of care system, and determine their 
                individual housing and service needs;
                    ``(B) emergency shelters with essential services to 
                ensure that homeless individuals and families receive 
                shelter;
                    ``(C) transitional housing with appropriate 
                supportive services to help ensure that homeless 
                individuals and families are prepared to make the 
                transition to increased responsibility and permanent 
                housing;
                    ``(D) permanent housing, or permanent supportive 
                housing, to help meet the long-term housing needs of 
                homeless individuals and families;
                    ``(E) coordination between assistance provided 
                under this title and assistance provided under other 
                Federal, State, and local programs that may be used to 
                assist homeless individuals and families, including 
                both targeted homeless assistance programs and other 
                programs administered by the Departments of Veterans 
                Affairs, Labor, Health and Human Services, and 
                Education; and
                    ``(F) a system of referrals for subpopulations of 
                the homeless (such as homeless veterans, families with 
                children, battered spouses, persons with mental 
                illness, persons who have chronic problems with 
                alcohol, drugs, or both, persons with other chronic 
                health problems, and persons who have acquired 
                immunodeficiency syndrome and related diseases) to the 
                appropriate agencies, programs, or services (including 
                health care, job training, and income support) 
                necessary to meet their needs.
            ``(5) Grantee.--The term `grantee' means--
                    ``(A) an allocation unit of general local 
                government or insular area that administers a grant 
                under section 408(b)(1); or
                    ``(B) an allocation unit of general local 
                government or insular area that designates a public 
                agency or a private nonprofit organization (or a 
                combination of such organizations) to administer grant 
                amounts under section 408(b)(2).
            ``(6) Homeless individual.--The term `homeless individual' 
        has the same meaning as in section 103 of this Act.
            ``(7) Insular area.--The term `insular area' means the 
        Virgin Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
            ``(8) Low-demand services and referrals.--The term `low-
        demand services and referrals' means the provision of health 
        care, mental health, substance abuse, and other supportive 
        services and referrals for services in a noncoercive manner, 
        which may include medication management, education, counseling, 
        job training, and assistance in obtaining entitlement benefits 
        and in obtaining other supportive services, including mental 
        health and substance abuse treatment.
            ``(9) Metropolitan city.--The term `metropolitan city' has 
        the same meaning as in section 102(a) of the Housing and 
        Community Development Act of 1974.
            ``(10) Person with disabilities.--The term `person with 
        disabilities' means a person who--
                    ``(A) has a disability as defined in section 223 of 
                the Social Security Act;
                    ``(B) is determined to have, as determined by the 
                Secretary, a physical, mental, or emotional impairment 
                which--
                            ``(i) is expected to be of long-continued 
                        and indefinite duration;
                            ``(ii) substantially impedes his or her 
                        ability to live independently; and
                            ``(iii) is of such a nature that such 
                        ability could be improved by more suitable 
                        housing conditions;
                    ``(C) has a developmental disability, as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act; or
                    ``(D) has the disease of acquired immunodeficiency 
                syndrome or any conditions arising from the etiologic 
                agent for acquired immunodeficiency syndrome, except 
                that this subparagraph shall not be construed to limit 
                eligibility under subparagraphs (A) through (C) or the 
                provisions referred to in subparagraphs (A) through 
                (C).
            ``(11) Private nonprofit organization.--The term `private 
        nonprofit organization' means a private organization--
                    ``(A) no part of the net earnings of which inures 
                to benefits of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.
            ``(12) Project sponsor.--The term `project sponsor' means 
        an entity that--
                    ``(A) provides housing or assistance for homeless 
                individuals or families by carrying out activities 
                under this title; and
                    ``(B) meets such minimum standards as the Secretary 
                considers appropriate.
            ``(13) Recipient.--The term `recipient' means a grantee 
        (other than a State when it is distributing grant amounts to 
        State recipients) and a State recipient.
            ``(14) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(15) State.--The term `State' means each of the several 
        States and the Commonwealth of Puerto Rico. The term includes 
        an agency or instrumentality of a State that is established 
        pursuant to legislation and designated by the chief executive 
        officer to act on behalf of the jurisdiction with regard to 
        provisions of this title.
            ``(16) State recipient.--The term `State recipient' means 
        the following entities receiving amounts from the State under 
        section 408(c)(2)(B):
                    ``(A) A unit of general local government within the 
                State.
                    ``(B) In the case of an area of the State with 
                significant homeless needs, if no State recipient is 
                identified, 1 or more private nonprofit organizations 
                serving that area.
            ``(17) Unit of general local government.--The term `unit of 
        general local government' means--
                    ``(A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    ``(B) the District of Columbia; and
                    ``(C) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive officer to act on behalf of the 
                jurisdiction with regard to provisions of this title.
            ``(18) Urban county.--The term `urban county' has the same 
        meaning as in section 102(a) of the Housing and Community 
        Development Act of 1974.
            ``(19) Very low-income families.--The term `very low-income 
        families' has the same meaning as in section 104 of the 
        Cranston-Gonzalez National Affordable Housing Act.

``SEC. 402. AUTHORIZATIONS.

    ``(a) In General.--The Secretary may make grants to carry out 
activities to assist homeless individuals and families in support of 
continuum of care systems in accordance with this title.
    ``(b) Funding Amounts.--There are authorized to be appropriated to 
carry out this title, to remain available until expended--
            ``(1) $1,050,000,000 for fiscal year 2001;
            ``(2) $1,070,000,000 for fiscal year 2002; and
            ``(3) $1,090,000,000 for fiscal year 2003.

``SEC. 403. APPLICATION.

    ``(a) In General.--Each applicant shall submit the application 
required under this section in such form and in accordance with such 
procedures as the Secretary shall prescribe. If the applicant is a 
State or unit of general local government, the application shall be 
submitted as part of the homeless assistance component of the 
consolidated plan.
    ``(b) Continuum of Care Submission.--
            ``(1) In general.--The allocation unit of general local 
        government, insular area, or State shall prepare, and submit 
        those portions of the application related to the development 
        and implementation of the continuum of care system, as 
        described in paragraph (2) or (3), as applicable.
            ``(2) Submission by allocation unit of general local 
        government or insular area.--The allocation unit of general 
        local government or insular area shall develop and submit to 
        the Secretary--
                    ``(A) a continuum of care system consistent with 
                that defined under section 401(4), which shall be 
                designed to incorporate any strengths and fill any gaps 
                in the current homeless assistance activities of the 
                jurisdiction, and shall include a description of 
                efforts to address the problems faced by each of the 
                different subpopulations of homeless individuals;
                    ``(B) a multiyear strategy for implementing the 
                continuum of care system, including appropriate 
                timetables and budget estimates for accomplishing each 
                element of the strategy;
                    ``(C) a 1-year plan, identifying all activities to 
                be carried out with assistance under this title and 
                with assistance from other HUD resources allocated in 
                accordance with the consolidated plan, and describing 
                the manner in which these activities will further the 
                strategy; and
                    ``(D) any specific performance measures and 
                benchmarks for use in assessing the performance of the 
                grantee under this title that are in addition to 
                national performance measures and benchmarks 
                established by the Secretary.
            ``(3) Submission by state.--The State shall develop and 
        submit to the Secretary--
                    ``(A) a continuum of care system consistent with 
                that defined under section 401(4), which shall be 
                designed to incorporate any strengths and fill any gaps 
                in the current homeless assistance activities of the 
                jurisdiction, and shall include a description of 
                efforts to address the problems faced by each of the 
                different subpopulations of homeless individuals;
                    ``(B) a multiyear strategy for implementing the 
                continuum of care systems in areas of the State outside 
                allocation units of general local government, including 
                the actions the State will take to achieve the goals 
                set out in the strategy;
                    ``(C) a 1-year plan identifying--
                            ``(i) in the case of a State carrying out 
                        its own activities under section 408(c)(2)(A), 
                        the activities to be carried out with 
                        assistance under this title and describing the 
                        manner in which these activities will further 
                        the strategy; and
                            ``(ii) in the case of a State distributing 
                        grant amounts to State recipients under section 
                        408(c)(2)(B), the criteria that the State will 
                        use in distributing amounts awarded under this 
                        title, the method of distribution, and the 
                        relationship of the method of distribution to 
                        the homeless assistance strategy; and
                    ``(D) any specific performance measures and 
                benchmarks for use in assessing the performance of the 
                grantee under this title that are in addition to 
                national performance measures and benchmarks 
                established by the Secretary.
    ``(c) Submission Requirements for Applicants Other Than States.--
Each application from an applicant other than a State shall include, at 
a minimum--
            ``(1) the continuum of care submission described in 
        subsection (b)(2);
            ``(2) a determination on whether the assistance under this 
        title will be administered by the jurisdiction, a public agency 
        or private nonprofit organization, or the State, as appropriate 
        under subsections (b) and (c) of section 408;
            ``(3) certifications or other such forms of proof of 
        commitments of financial and other resources sufficient to 
        comply with the match requirements under section 405(a)(1);
            ``(4) a certification that the applicant is following a 
        current approved consolidated plan;
            ``(5) a certification that the grant will be conducted and 
        administered in conformity with title VI of the Civil Rights 
        Act of 1964, section 504 of the Rehabilitation Act of 1973, and 
        the Fair Housing Act, and the grantee will affirmatively 
        further fair housing; and
            ``(6) a certification that the applicant will comply with 
        the requirements of this title and other applicable laws.
    ``(d) Submission Requirements for States.--Each application from a 
State shall include--
            ``(1) the continuum of care submission described in 
        subsection (b)(3);
            ``(2) certifications or other such forms of proof of 
        commitments of financial and other resources sufficient to 
        comply with the match requirements under section 405(a)(1);
            ``(3) a certification that the applicant is following a 
        current approved consolidated plan;
            ``(4) a certification that the grant will be conducted and 
        administered in conformity with title VI of the Civil Rights 
        Act of 1964, section 504 of the Rehabilitation Act of 1973, and 
        the Fair Housing Act, and the grantee will affirmatively 
        further fair housing; and
            ``(5) a certification that the State and State recipients 
        will comply with the requirements of this title and other 
        applicable laws.
    ``(e) Application Approval.--The application shall be approved by 
the Secretary unless the Secretary determines that the application is 
substantially incomplete.

``SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES; CONTINUUM OF CARE 
              APPROVAL.

    ``(a) Eligible Projects.--Grants under this title may be used to 
carry out activities described in subsection (b) in support of the 
following types of projects:
            ``(1) Emergency assistance.--Assistance designed to prevent 
        homelessness or to meet the emergency needs of homeless 
        individuals and families, including 1 or more of the following:
                    ``(A) Prevention.--Efforts to prevent homelessness 
                of a very low-income individual or family that has 
                received an eviction notice, notice of mortgage 
                foreclosure, or notice of termination of utilities, 
                if--
                            ``(i) the individual or family cannot make 
                        the required payments due to a sudden reduction 
                        in income or other financial emergency; and
                            ``(ii) the assistance is necessary to avoid 
                        imminent eviction, foreclosure, or termination 
                        of services.
                    ``(B) Outreach and assessment.--Efforts designed to 
                inform individuals and families about the availability 
                of services, to bring them into the continuum of care 
                system, and to determine which services or housing are 
                appropriate to the needs of the individual or family.
                    ``(C) Emergency shelter.--The provision of short-
                term emergency shelter with essential supportive 
                services for homeless individuals and families.
            ``(2) Safe haven housing.--A structure or a clearly 
        identifiable portion of a structure that--
                    ``(A) provides housing and low-demand services and 
                referrals for homeless individuals with serious mental 
                illness--
                            ``(i) who are currently residing primarily 
                        in places not designed for, or ordinarily used 
                        as, a regular sleeping accommodation for human 
                        beings; and
                            ``(ii) who have been unwilling or unable to 
                        participate in mental health or substance abuse 
                        treatment programs or to receive other 
                        supportive services; except that a person whose 
                        sole impairment is substance abuse shall not be 
                        considered an eligible person;
                    ``(B) provides 24-hour residence for eligible 
                individuals who may reside for an unspecified duration;
                    ``(C) provides private or semiprivate 
                accommodations;
                    ``(D) may provide for the common use of kitchen 
                facilities, dining rooms, and bathrooms;
                    ``(E) may provide supportive services to eligible 
                persons who are not residents on a drop-in basis;
                    ``(F) provides occupancy limited to not more than 
                25 persons; and
                    ``(G) provides housing for victims of spousal 
                abuse, and their dependents.
            ``(3) Transitional housing.--Housing and appropriate 
        supportive services that are designed to facilitate the 
        movement of homeless individuals to permanent housing, 
        generally within 24 months.
            ``(4) Permanent housing and permanent housing and 
        supportive services for persons with disabilities.--Permanent 
        housing for homeless individuals, and permanent housing and 
        supportive services for homeless persons with disabilities, the 
        latter of which may be designed to provide housing and services 
        solely for persons with disabilities, or may provide housing 
        for such persons in a multifamily housing, condominium, or 
        cooperative project.
            ``(5) Single room occupancy housing.--A unit for occupancy 
        by 1 person, which need not (but may) contain food preparation 
        or sanitary facilities, or both, and may provide services such 
        as mental health services, substance abuse treatment, job 
        training, and employment programs.
            ``(6) Other projects.--Such other projects as the Secretary 
        determines will further the purposes of title I of the 
        Homelessness Assistance and Management Reform Act of 1997.
    ``(b) Eligible Activities.--Grants under this title may be used to 
carry out the following activities in support of projects described in 
subsection (a):
            ``(1) Homelessness prevention activities.--Short-term 
        mortgage, rental, and utilities payments and other short-term 
        assistance designed to prevent the imminent homelessness of the 
        individuals and families described in subsection (a)(1)(A).
            ``(2) Outreach and assessment.--Drop-in centers, 24-hour 
        hotlines, counselors, and other activities designed to engage 
        homeless individuals and families, bring them into the 
        continuum of care system, and determine their individual 
        housing and service needs.
            ``(3) Acquisition and rehabilitation.--The acquisition, 
        rehabilitation, or acquisition and rehabilitation of real 
        property.
            ``(4) New construction.--The new construction of a project, 
        including the cost of the site.
            ``(5) Operating costs.--The costs of operating a project, 
        including salaries and benefits, maintenance, insurance, 
        utilities, replacement reserve accounts, and furnishings.
            ``(6) Leasing.--Leasing of an existing structure or 
        structures, or units within these structures, including the 
        provision of long-term rental assistance contracts.
            ``(7) Tenant assistance.--The provision of security or 
        utility deposits, rent, or utility payments for the first month 
        of residence at a new location, and relocation assistance.
            ``(8) Supportive services.--The provision of essential 
        supportive services including case management, housing 
        counseling, job training and placement, primary health care, 
        mental health services, substance abuse treatment, child care, 
        transportation, emergency food and clothing, family violence 
        services, education services, moving services, assistance in 
        obtaining entitlement benefits, and referral to veterans 
        services and referral to legal services.
            ``(9) Administration.--
                    ``(A) In general.--Expenses incurred in--
                            ``(i) planning, developing, and 
                        establishing a program under this title; and
                            ``(ii) administering the program.
                    ``(B) Limitations.--Not more than the following 
                amounts may be used for administrative costs under 
                subparagraph (A):
                            ``(i) 10 percent of any grant amounts 
                        provided for a recipient for a fiscal year 
                        (including amounts used by a State to carry out 
                        its own activities under section 408(c)(1)(A)).
                            ``(ii) 5 percent of any grant amounts 
                        provided to a State for a fiscal year that the 
                        State uses to distribute funds to a State 
                        recipient under section 408(c)(1)(B).
            ``(10) Capacity building.--
                    ``(A) In general.--Building the capacity of private 
                nonprofit organizations to participate in the continuum 
                of care system of the recipient.
                    ``(B) Limitations.--Not more than the following 
                amounts may be used for capacity building under 
                subparagraph (A):
                            ``(i) 2 percent of any grant amounts 
                        provided for a recipient for a fiscal year 
                        (including amounts used by a State to carry out 
                        its own activities under section 408(c)(1)(A)).
                            ``(ii) 2 percent of any grant amounts 
                        provided to a State for a fiscal year that the 
                        State uses to distribute funds to a State 
                        recipient under section 408(c)(1)(B).
            ``(11) Other activities.--Other activities as the Secretary 
        determines will further the purposes of title I of the 
        Homelessness Assistance and Management Reform Act of 1997.
    ``(c) Targeting to Subpopulations of Persons With Disabilities.--
Notwithstanding any other provision of law, projects for persons with 
disabilities assisted under this title may be targeted to specific 
subpopulations of such persons, including persons who--
            ``(1) are seriously mentally ill;
            ``(2) have chronic problems with drugs, alcohol, or both; 
        or
            ``(3) have acquired immunodeficiency syndrome or any 
        conditions arising from the etiologic agency for acquired 
        immunodeficiency syndrome.

``SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE OF EFFORT.

    ``(a) Matching Requirement.--
            ``(1) In general.--Each recipient shall make contributions 
        totaling not less than $1 for every $3 made available for the 
        recipient for any fiscal year under this title to carry out 
        eligible activities. At the end of each program year, each 
        recipient shall certify to the Secretary that it has complied 
        with this section, and shall include with the certification a 
        description of the sources and amounts of the matching 
        contributions. Contributions under this section may not come 
        from assistance provided under this title.
            ``(2) Calculation of amounts.--In calculating the amount of 
        matching contributions required under paragraph (1), a 
        recipient may include--
                    ``(A) any funds derived from a source, other than 
                assistance under this title or amounts subject to 
                subsection (b);
                    ``(B) the value of any lease on a building; and
                    ``(C) any salary paid to staff or any volunteer 
                labor contributed to carry out the program.
    ``(b) Limitation on Use of Funds.--No assistance received under 
this title may be used to replace other funds previously used, or 
designated for use, by the State, State recipient (except when a State 
recipient is a private nonprofit organization), allocation unit of 
general local government or insular area to assist homeless individuals 
and families.

``SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT SPONSORS, AND 
              OWNERS.

    ``(a) Use of Assistance Through Private Nonprofit Organizations.--
            ``(1) In general.--Each recipient shall ensure that at 
        least 50 percent of the grant amounts that are made available 
        to it under this title for any fiscal year are made available 
        to project sponsors that are private nonprofit organizations.
            ``(2) Waiver.--The Secretary may waive or reduce the 
        requirement of paragraph (1), if the recipient demonstrates to 
        the Secretary that the requirement interferes with the ability 
        of the recipient to provide assistance under this title because 
        of the paucity of qualified private nonprofit organizations in 
        the jurisdiction of the recipient.
    ``(b) Housing Quality.--Each recipient shall ensure that housing 
assisted with grant amounts provided under this title is decent, safe, 
and sanitary and complies with all applicable State and local housing 
codes, building codes, and licensing requirements in the jurisdiction 
in which the housing is located.
    ``(c) Prevention of Undue Benefit.--The Secretary may prescribe 
such terms and conditions as the Secretary considers necessary to 
prevent project sponsors from unduly benefiting from the sale or other 
disposition of projects, other than a sale or other disposition 
resulting in the use of the project for the direct benefit of very low-
income families.
    ``(d) Confidentiality.--Each recipient shall develop and implement 
procedures to ensure the confidentiality of records pertaining to any 
individual provided services assisted under this title for family 
violence prevention or treatment or for such medical or other 
conditions as the Secretary may prescribe, and to ensure that the 
address or location of any project providing such services will, except 
with written authorization of the person or persons responsible for the 
operation of such project, not be made public.
    ``(e) Employment of Homeless Individuals.--
            ``(1) In general.--To the maximum extent practicable, the 
        Secretary shall ensure that recipients, through employment, 
        volunteer services, or otherwise, provide opportunities for 
        homeless individuals and families to participate in--
                    ``(A) constructing, renovating, maintaining, and 
                operating facilities assisted under this title;
                    ``(B) providing services so assisted; and
                    ``(C) providing services for occupants of 
                facilities so assisted.
            ``(2) No displacement of employed workers.--In carrying out 
        paragraph (1), recipients shall not displace employed workers.
    ``(f) Occupancy Charge.--Any homeless individual or family residing 
in a dwelling unit assisted under this title may be required to pay an 
occupancy charge in an amount determined by the grantee providing the 
assistance, which may not exceed an amount equal to 30 percent of the 
adjusted income (as defined in section 3(b) of the United States 
Housing Act of 1937 or any other subsequent provision of Federal law 
defining the term for purposes of eligibility for, or rental charges 
in, public housing) of the individual or family. Occupancy charges paid 
may be reserved, in whole or in part, to assist residents in moving to 
permanent housing.

``SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.

    ``(a) Insular Areas.--
            ``(1) Allocation.--For each fiscal year, the Secretary 
        shall allocate assistance under this title to insular areas, in 
        an amount equal to 0.20 percent of the amounts appropriated 
        under the first sentence of section 402(b).
            ``(2) Distribution.--The Secretary shall provide for the 
        distribution of amounts reserved under paragraph (1) for 
        insular areas pursuant to specific criteria or a distribution 
        formula prescribed by the Secretary.
    ``(b) States and Allocation Units of General Local Government.--
            ``(1) In general.--For each fiscal year, of the amounts 
        appropriated under the first sentence of section 402(b) that 
        remain after amounts are reserved for insular areas under 
        subsection (a), the Secretary shall allocate assistance 
        according to the formula described in paragraph (2).
            ``(2) Formula.--
                    ``(A) Allocation.--The Secretary shall allocate 
                amounts for allocation units of general local 
                government and States, in a manner that ensures that 
                the percentage of the total amount available under this 
                title for any fiscal year for any allocation unit of 
                general local government or State is equal to the 
                percentage of the total amount available for section 
                106 of the Housing and Community Development Act of 
                1974 for the same fiscal year that is allocated for the 
                allocation unit of general local government or State.
                    ``(B) Minimum allocation.--
                            ``(i) Graduated minimum grant 
                        allocations.--A State, metropolitan city, or 
                        urban county shall receive no less funding in 
                        the first fiscal year after the effective date 
                        of this Act than 90 percent of the average of 
                        the amounts awarded annually to that 
                        jurisdiction for homeless assistance programs 
                        administered by the Secretary under this title 
                        during fiscal years 1996 through 1999, not less 
                        than 85 percent in the second full fiscal year 
                        after the effective date of this Act, not less 
                        than 80 percent in the third and fourth fiscal 
                        years after the effective date of this Act, and 
                        not less than 75 percent in the fifth full 
                        fiscal year after the effective date of this 
                        Act, but only if the amount appropriated in 
                        each such fiscal year exceeds $1,000,000,000. 
                        If that amount does not exceed $1,000,000,000 
                        in any fiscal year referred to in the first 
                        sentence of this paragraph, the jurisdiction 
                        may receive its proportionate share of the 
                        amount appropriated which may be less than the 
                        amount in such sentence for such fiscal year.
                            ``(ii) Reduction.--In any fiscal year, the 
                        Secretary may provide a grant under this 
                        subsection for a State, metropolitan city, or 
                        urban county, in an amount less than the amount 
                        allocated under those paragraphs, if the 
                        Secretary determines that the jurisdiction has 
                        failed to comply with requirements of this 
                        title, or that such action is otherwise 
                        appropriate.
                    ``(C) Study; submission of information to congress 
                related to alternative methods of allocation.--Not 
                later than 1 year after the effective date of the Local 
                Housing Opportunities Act, the Secretary shall--
                            ``(i) submit to Congress--
                                    ``(I) the best available 
                                methodology for determining a formula 
                                relative to the geographic allocation 
                                of funds under this subtitle among 
                                entitlement communities and 
                                nonentitlement areas based on the 
                                incidence of homelessness and factors 
                                that lead to homelessness;
                                    ``(II) proposed alternatives to the 
                                formula submitted pursuant to subclause 
                                (I) for allocating funds under this 
                                section, including an evaluation and 
                                recommendation on a 75/25 percent 
                                formula and other allocations of 
                                flexible block grant homeless 
                                assistance between metropolitan cities 
                                and urban counties and States under 
                                subparagraph (A);
                                    ``(III) an analysis of the 
                                deficiencies in the current allocation 
                                formula described in section 106(b) of 
                                the Housing and Community Development 
                                Act of 1974;
                                    ``(IV) an analysis of the adequacy 
                                of current indices used as proxies for 
                                measuring homelessness; and
                                    ``(V) an analysis of the bases 
                                underlying each of the proposed 
                                allocation methods;
                            ``(ii) perform the duties required by this 
                        paragraph in ongoing consultation with--
                                    ``(I) the Subcommittee on Housing 
                                Opportunity and Community Development 
                                of the Committee on Banking, Housing, 
                                and Urban Affairs of the Senate;
                                    ``(II) the Subcommittee on Housing 
                                and Community Opportunity of the 
                                Committee on Banking and Financial 
                                Services of the House of 
                                Representatives;
                                    ``(III) organizations representing 
                                States, metropolitan cities, and urban 
                                counties;
                                    ``(IV) organizations representing 
                                rural communities;
                                    ``(V) organizations representing 
                                veterans;
                                    ``(VI) organizations representing 
                                persons with disabilities;
                                    ``(VII) members of the academic 
                                community; and
                                    ``(VIII) national homelessness 
                                advocacy groups; and
                    ``(iii) estimate the amount of funds that will be 
                received annually by each entitlement community and 
                nonentitlement area under each such alternative 
                allocation system and compare such amounts to the 
                amount of funds received by each entitlement community 
                and nonentitlement area in prior years under this 
                section.

``SEC. 408. ADMINISTRATION OF PROGRAM.

    ``(a) In General.--The Secretary shall prescribe such procedures 
and requirements as the Secretary deems appropriate for administering 
grant amounts under this title.
    ``(b) Allocation Units of General Local Government and Insular 
Areas.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        allocation unit of general local government or insular area 
        shall administer grant amounts received under subsection (a) or 
        (b) of section 407 for any fiscal year.
            ``(2) Agencies and organizations designated by 
        jurisdiction.--
                    ``(A) Designation of other entities to administer 
                grant amounts.--An allocation unit of general local 
                government or insular area may elect for any fiscal 
                year to designate a public agency or a private 
                nonprofit organization (or a collaboration of such 
                organizations) to administer grant amounts received 
                under subsection (a) or (b) of section 407 instead of 
                the jurisdiction.
                    ``(B) Provision of grant amounts.--The Secretary 
                may, at the request of a jurisdiction under 
                subparagraph (A), provide grant amounts directly to the 
                agency or organization designated under that 
                subparagraph.
    ``(c) States.--
            ``(1) In general.--The State--
                    ``(A) may use not more than 15 percent of the 
                amount made available to the State under section 
                407(b)(2) for a fiscal year to carry out its own 
                homeless assistance program under this title; and
                    ``(B) shall distribute the remaining amounts to 
                State recipients.
            ``(2) Distribution of amounts to state recipients.--
                    ``(A) In general.--
                            ``(i) Options.--States distributing amounts 
                        under paragraph (1)(B) to State recipients that 
                        are units of general local government shall, 
                        for each fiscal year, afford each such 
                        recipient the options of--
                                    ``(I) administering the grant 
                                amounts on its own behalf;
                                    ``(II) designating (as provided by 
                                subsection (b)(2)) a public agency or a 
                                private nonprofit organization (or a 
                                combination of such organizations) to 
                                administer the grant amounts instead of 
                                the jurisdiction; or
                                    ``(III) entering into an agreement 
                                with the State, in consultation with 
                                private nonprofit organizations 
                                providing assistance to homeless 
                                individuals and families in the 
                                jurisdiction, under which the State 
                                will administer the grant amounts 
                                instead of the jurisdiction.
                            ``(ii) Effect of designation.--A State 
                        recipient designating an agency or organization 
                        as provided by clause (i)(II), or entering into 
                        an agreement with the State under clause 
                        (i)(III), shall remain the State recipient for 
                        purposes of this title.
                            ``(iii) Direct assistance.--The State may, 
                        at the request of the State recipient, provide 
                        grant amounts directly to the agency or 
                        organization designated under clause (i)(II).
                    ``(B) Application.--
                            ``(i) In general.--The State shall 
                        distribute amounts to State recipients (or to 
                        agencies or organizations designated under 
                        subparagraph (A)(i)(II), as appropriate) on the 
                        basis of an application containing such 
                        information as the State may prescribe, except 
                        that each application shall reflect the State 
                        application requirements in section 403(d) and 
                        evidence an intent to facilitate the 
                        establishment of a continuum of care system.
                            ``(ii) Waiver.--The State may waive the 
                        requirements in clause (i) with respect to 1 or 
                        more proposed activities, if the State 
                        determines that--
                                    ``(I) the activities are necessary 
                                to meet the needs of homeless 
                                individuals and families within the 
                                jurisdiction; and
                                    ``(II) a continuum of care system 
                                is not necessary, due to the nature and 
                                extent of homelessness in the 
                                jurisdiction.
                    ``(C) Preference.--In selecting State recipients 
                and making awards under subparagraph (B), the State 
                shall give preference to applications that demonstrate 
                higher relative levels of homeless need and fiscal 
                distress.

``SEC. 409. CITIZEN PARTICIPATION.

    ``(a) In General.--Each recipient shall ensure that citizens, 
appropriate private nonprofit organizations, and other interested 
groups and entities participate fully in the development and carrying 
out of the program authorized under this title.
    ``(b) Allocation Units of General Local Government and Insular 
Areas.--The chief executive officer of each allocation unit of general 
local government or insular area shall designate an entity, which shall 
assist the jurisdiction--
            ``(1) by developing the continuum of care system and other 
        submission requirements, and by submitting the system and such 
        other submission requirements for its approval under section 
        403(b);
            ``(2) in overseeing the activities carried out with 
        assistance under this title; and
            ``(3) in preparing the performance report under section 
        410(b).
    ``(c) State Recipients.--The chief executive officer of the State 
shall designate an entity which shall assist the State--
            ``(1) by developing the continuum of care system and other 
        submission requirements, and by submitting the system and such 
        other submission requirements for its approval under section 
        403(b);
            ``(2) in determining the percentage of the grant that the 
        State should use--
                    ``(A) to carry out its own homeless assistance 
                program under section 408(c)(1)(A); or
                    ``(B) to distribute amounts to State recipients 
                under section 408(c)(1)(B);
            ``(3) in carrying out the responsibilities of the State, if 
        the State enters into an agreement with a State recipient to 
        administer the amounts of the State recipient under section 
        408(c)(2)(A)(i)(III);
            ``(4) in overseeing the activities carried out with 
        assistance under this title; and
            ``(5) in preparing the performance report under section 
        410(b).

``SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS, AND GRANT 
              ADJUSTMENTS.

    ``(a) National Performance Measures and Benchmarks.--The Secretary 
shall establish national performance measures and benchmarks to assist 
the Secretary, grantees, citizens, and others in assessing the use of 
funds made available under this title.
    ``(b) Grantee Performance and Evaluation Report.--
            ``(1) In general.--Each grantee shall submit to the 
        Secretary a performance and evaluation report concerning the 
        use of funds made available under this title.
            ``(2) Timing and contents.--The report under subsection (a) 
        shall be submitted at such time as the Secretary shall 
        prescribe and contain an assessment of the performance of the 
        grantee as measured against any specific performance measures 
        and benchmarks (developed under section 403), the national 
        performance measures and benchmarks (as established under 
        subsection (a)), and such other information as the Secretary 
        shall prescribe. Such performance measures and benchmarks shall 
        include a measure of the number of homeless individuals who 
        transition to self-sufficiency, and a measure of the number of 
        homeless individuals who have ended a chemical dependency or 
        drug addiction.
            ``(3) Availability to public.--Before the submission of a 
        report under subsection (a), the grantee shall make the report 
        available to citizens, public agencies, and other interested 
        parties in the jurisdiction of the grantee in sufficient time 
        to permit them to comment on the report before submission.
    ``(c) Performance Reviews, Audits, and Grant Adjustments.--
            ``(1) Performance reviews and audits.--The Secretary shall, 
        not less than annually, make such reviews and audits as may be 
        necessary or appropriate to determine--
                    ``(A) in the case of a grantee (other than a 
                grantee referred to in subparagraph (B)), whether the 
                grantee--
                            ``(i) has carried out its activities in a 
                        timely manner;
                            ``(ii) has made progress toward 
                        implementing the continuum of care system in 
                        conformity with its application under this 
                        title; and
                            ``(iii) has carried out its activities and 
                        certifications in accordance with the 
                        requirements of this title and other applicable 
                        laws; and
                    ``(B) in the case of States distributing grant 
                amounts to State recipients, whether the State--
                            ``(i) has distributed amounts to State 
                        recipients in a timely manner and in 
                        conformance with the method of distribution 
                        described in its application;
                            ``(ii) has carried out its activities and 
                        certifications in compliance with the 
                        requirements of this title and other applicable 
                        laws; and
                            ``(iii) has made such performance reviews 
                        and audits of the State recipients as may be 
                        necessary or appropriate to determine whether 
                        they have satisfied the applicable performance 
                        criteria set forth in subparagraph (A).
            ``(2) Grant adjustments.--The Secretary may make 
        appropriate adjustments in the amount of grants in accordance 
        with the findings of the Secretary under this subsection. With 
        respect to assistance made available for State recipients, the 
        Secretary may adjust, reduce, or withdraw such assistance, or 
        take other action as appropriate in accordance with the 
        performance reviews and audits of the Secretary under this 
        subsection, except that amounts already properly expended on 
        eligible activities under this title shall not be recaptured or 
        deducted from future assistance to such recipients.

``SEC. 411. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

    ``No person in the United States shall, on the ground of race, 
color, national origin, religion, or sex, be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with funds made available under this title. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified individual with a 
disability, as provided in section 504 of the Rehabilitation Act of 
1973, shall also apply to any such program or activity.

``SEC. 412. RETENTION OF RECORDS, REPORTS, AND AUDITS.

    ``(a) Retention of Records.--Each recipient shall keep such records 
as may be reasonably necessary--
            ``(1) to disclose the amounts and the disposition of the 
        grant amounts, including the types of activities funded and the 
        nature of populations served with these funds; and
            ``(2) to ensure compliance with the requirements of this 
        title.
    ``(b) Access to Documents by the Secretary.--The Secretary shall 
have access for the purpose of audit and examination to any books, 
documents, papers, and records of any recipient that are pertinent to 
grant amounts received in connection with this title.
    ``(c) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any duly authorized 
representative of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of any recipient that are pertinent to grant amounts received 
in connection with this title.''.

SEC. 303. REPEAL AND SAVINGS PROVISIONS.

    (a) Authority To Provide Assistance.--Beginning on the effective 
date of this Act, the Secretary may not make assistance available under 
title IV of the Stewart B. McKinney Homeless Assistance Act (as in 
existence immediately before such effective date), except pursuant to a 
legally binding commitment entered into before that date.
    (b) Law Governing.--Any amounts made available under title IV of 
the Stewart B. McKinney Homeless Assistance Act before the effective 
date of this Act shall continue to be governed by the provisions of 
that title, as they existed immediately before that effective date, 
except that each grantee may, in its discretion, provide for the use, 
in accordance with the provisions of title IV of the Stewart B. 
McKinney Homeless Assistance Act (as amended by this title), of any 
such amounts that it has not obligated.
    (c) Status of Funds.--
            (1) In general.--Any amounts appropriated under title IV of 
        the Stewart B. McKinney Homeless Assistance Act before the 
effective date of this Act that are available for obligation 
immediately before such effective date, or that become available for 
obligation on or after that date, shall be transferred and added to 
amounts appropriated for title IV of the Stewart B. McKinney Homeless 
Assistance Act (as amended by this title), and shall be available for 
use in accordance with the provisions of such title IV.
            (2) Availability.--Any amounts transferred under paragraph 
        (1) shall remain available for obligation only for the time 
        periods for which such respective amounts were available before 
        such transfer.

SEC. 304. IMPLEMENTATION.

    (a) Initial Allocation of Assistance.--Not later than the 
expiration of the 60-day period following the date of enactment of an 
Act appropriating funds to carry out title IV of the Stewart B. 
McKinney Homeless Assistance Act (as amended by this title), the 
Secretary shall notify each allocation unit of general local 
government, insular area, and State of its allocation under the 
McKinney Homeless Assistance Performance Fund.
    (b) Issuance of Necessary Regulations.--Notwithstanding section 
7(o) of the Department of Housing and Urban Development Act (42 U.S.C. 
3535(o)), the Secretary shall issue such regulations as may be 
necessary to implement any provision of title I of this Act, and any 
amendment made by this title, in accordance with section 552 or 553 of 
title 5, United States Code, as determined by the Secretary.
    (c) Use of Existing Rules.--In implementing any provision of this 
title, the Secretary may, in the discretion of the Secretary, provide 
for the use of existing rules to the extent appropriate, without the 
need for further rulemaking.

                        TITLE IV--RURAL HOUSING

SEC. 401. MUTUAL AND SELF-HELP HOUSING TECHNICAL ASSISTANCE AND 
              TRAINING GRANTS AUTHORIZATION.

    Section 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b)) is 
amended by striking paragraph (8) and inserting the following:
            ``(8) For grants under paragraphs (1)(A) and (2) of section 
        523(b)--
                    ``(A) $40,000,000 for fiscal year 2001;
                    ``(B) $45,000,000 for fiscal year 2002; and
                    ``(C) $50,000,000 for fiscal year 2003.''.

SEC. 402. ENHANCEMENT OF THE RURAL HOUSING REPAIR LOAN PROGRAM FOR THE 
              ELDERLY.

    Section 504(a) of the Housing Act of 1949 (42 U.S.C. 1474(a)) is 
amended by striking ``$2,500'' and inserting ``$7,500''.

SEC. 403. ENHANCEMENT OF EFFICIENCY OF RURAL HOUSING PRESERVATION 
              GRANTS.

    Section 533 of the Housing Act of 1949 (42 U.S.C. 1490m) is 
amended--
            (1) by striking subsection (c);
            (2) in subsection (d)(3)(H), by striking ``(e)(1)(B)(iv)'' 
        and inserting ``(d)(1)(B)(iv)''; and
            (3) by redesignating subsections (d) through (i) as 
        subsections (c) through (h), respectively.

SEC. 404. PROJECT ACCOUNTING RECORDS AND PRACTICES.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
by striking subsection (z) and inserting the following:
    ``(z) Accounting and Recordkeeping Requirements.--
            ``(1) Accounting standards.--The Secretary shall require 
        that borrowers in programs authorized by this section maintain 
        accounting records in accordance with generally accepted 
        accounting principles for all projects that receive funds from 
        loans made or guaranteed by the Secretary under this section.
            ``(2) Record retention requirements.--The Secretary shall 
        require that borrowers in programs authorized by this section 
        retain for a period of not less than 6 years and make available 
        to the Secretary in a manner determined by the Secretary, all 
        records required to be maintained under this subsection and 
        other records identified by the Secretary in applicable 
        regulations.
    ``(aa) Double Damage Remedy for Unauthorized Use of Housing 
Projects Assets and Income.--
            ``(1) Action to recover assets or income.--
                    ``(A) In general.--The Secretary may request the 
                Attorney General to bring an action in a district court 
                of the United States to recover any assets or income 
                used by any person in violation of the provisions of a 
                loan made or guaranteed by the Secretary under this 
                section or in violation of any applicable statute or 
                regulation.
                    ``(B) Improper documentation.--For purposes of this 
                subsection, a use of assets or income in violation of 
                the applicable loan, loan guarantee, statute, or 
                regulation shall include any use for which the 
                documentation in the books and accounts does not 
                establish that the use was made for a reasonable 
                operating expense or necessary repair of the project or 
                for which the documentation has not been maintained in 
                accordance with the requirements of the Secretary and 
                in reasonable condition for proper audit.
                    ``(C) Definition of person.--In this subsection, 
                the term `person' means--
                            ``(i) any individual or entity that borrows 
                        funds in accordance with programs authorized by 
                        this section;
                            ``(ii) any individual or entity holding 25 
                        percent or more interest of any entity that 
                        borrows funds in accordance with programs 
                        authorized by this section; or
                            ``(iii) any officer, director, or partner 
                        of an entity that borrows funds in accordance 
                        with programs authorized by this section.
            ``(2) Amount recoverable.--
                    ``(A) In general.--In any judgment favorable to the 
                United States entered under this subsection, the 
                Attorney General may recover double the value of the 
                assets and income of the project that the court 
                determines to have been used in violation of the 
                provisions of a loan made or guaranteed by the 
                Secretary under this section or any applicable statute 
                or regulation, plus all costs related to the action, 
                including reasonable attorney and auditing fees.
                    ``(B) Application of recovered funds.--
                Notwithstanding any other provision of law, the 
                Secretary may apply any recovery of funds under this 
                subsection to activities authorized under this section 
                and such funds shall remain available until expended.
            ``(3) Time limitation.--Notwithstanding any other statute 
        of limitations, the Attorney General may bring an action under 
        this subsection at any time up to and including 6 years after 
        the date that the Secretary discovered or should have 
        discovered the violation of the provisions of this section or 
        any related statutes or regulations.
            ``(4) Continued availability of other remedies.--The remedy 
        provided in this subsection is in addition to and not in 
        substitution of any other remedies available to the Secretary 
        or the United States.''.

SEC. 405. OPERATING ASSISTANCE FOR MIGRANT FARM WORKER PROJECTS.

    Section 521(a)(5)(A) of the Housing Act of 1949 (42 U.S.C. 
1490a(a)(5)(A)) is amended in the last sentence by striking ``project'' 
and inserting ``tenant or unit''.

                        TITLE V--VOUCHER REFORM

SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR RENTAL VOUCHERS FOR 
              RELOCATION OF WITNESSES AND VICTIMS OF CRIME.

    Section 8(o)(16) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(16)) is amended--
            (1) in subparagraph (A), by striking ``Of amounts made 
        available for assistance under this subsection'' and inserting 
        ``Of the amount made available under subparagraph (C)'';
            (2) in subparagraph (B), by striking ``Of amounts made 
        available for assistance under this section'' and inserting 
        ``Of the amount made available under subparagraph (C)''; and
            (3) by adding at the end the following:
                    ``(C) Authorization of appropriations.--In addition 
                to amounts made available to carry out this section for 
                each fiscal year, there is authorized to be 
                appropriated to carry out this paragraph $25,000,000 
                for each fiscal year.''.

SEC. 502. REVISIONS TO THE LEASE ADDENDUM.

    Section 8(o)(7)(F) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(7)(F)) is amended striking the period at the end and 
inserting the following: ``, except that--
                            ``(i) the provisions of any such addendum 
                        shall supplement any existing standard rental 
                        agreement to the extent that the addendum does 
                        not modify, nullify, or in any way materially 
                        alter any material provision of the rental 
                        agreement; and
                            ``(ii) a provision of the addendum shall be 
                        nullified only to extent that the provision 
                        conflicts with applicable State or local 
                        law.''.

SEC. 503. REPORT REGARDING HOUSING VOUCHER PROGRAM.

    (a) In General.--The Secretary shall publish in the Federal 
Register a notice soliciting comments and recommendations regarding the 
means by which the voucher program under section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)) may be changed and 
enhanced to promote increased participation by private rental housing 
owners.
    (b) Report.--Not later than 6 months after the effective date of 
this Act, the Secretary shall submit to the Committees a report on the 
results of the solicitation under subsection (a), which shall include a 
summary and analysis of the recommendations received, especially 
recommendations regarding legislative and administrative changes to the 
program described in subsection (a).

SEC. 504. CONDUCTING QUALITY STANDARD INSPECTIONS ON A PROPERTY BASIS 
              RATHER THAN A UNIT BASIS.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
            (1) in the paragraph heading, by inserting ``and 
        properties'' after ``units'';
            (2) in subparagraph (A)--
                    (A) by striking ``Except as provided'' and 
                inserting the following:
                            ``(i) Inspection requirement.--Except as 
                        provided''; and
                    (B) by adding at the end the following:
                            ``(ii) Inspection and certification on a 
                        property-wide basis.--
                                    ``(I) In general.--For purposes of 
                                this subparagraph, each owner shall 
                                have the option of having the property 
                                of the owner inspected and certified on 
                                a property-wide basis, subject to the 
                                inspection guidelines set forth in 
                                subparagraphs (C) and (D).
                                    ``(II) Certification.--Owners of 
                                properties electing a property-wide 
                                inspection and not currently receiving 
                                tenant-based assistance for any 
                                dwelling unit in those properties may 
                                elect a property-wide certification by 
                                having each dwelling unit that is to be 
                                made available for tenant-based 
                                assistance inspected before any housing 
                                assistance payments are made. Any owner 
                                participating in the voucher program 
                                under this subsection as of the 
                                effective date of Local Housing 
                                Opportunities Act shall have the option 
                                of electing property-wide certification 
                                by sending written notice to the 
                                appropriate administering agency. Any 
                                property that is inspected and 
                                certified on a property-wide basis 
                                shall not be required to have units in 
                                the property inspected individually in 
                                conjunction with each new rental 
                                agreement.'';
            (3) in subparagraph (C)--
                    (A) in the first sentence--
                            (i) by inserting ``or property'' after 
                        ``dwelling unit''; and
                            (ii) by inserting ``or property'' after 
                        ``the unit''; and
                    (B) in the second sentence, by inserting ``or 
                properties'' after ``dwelling units''; and
            (4) in subparagraph (D), in the first sentence--
                    (A) by inserting ``or property'' after ``dwelling 
                unit'';
                    (B) by inserting ``or property'' after ``payments 
                contract for the unit''; and
                    (C) by inserting ``or property'' after ``whether 
                the unit''.

                    TITLE VI--PROGRAM MODERNIZATION

SEC. 601. ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS.

    (a) Reauthorization.--Section 11 of the Housing Opportunity Program 
Extension Act of 1996 (42 U.S.C. 12805 note) is amended by striking 
subsection (p) and inserting the following:
    ``(p) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for fiscal year 2001 
and such sums as may be necessary for each of fiscal years 2002 and 
2003.''.
    (b) Eligible Expenses.--Section 11(d)(2)(A) of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended by inserting before the period at the end the following: ``, 
which may include reimbursing an organization, consortium, or 
affiliate, upon approval of any required environmental review, for 
nongrant amounts of the organization, consortium, or affiliate advanced 
before such review to acquire land''.
    (c) Deadline for Recapture of Funds.--Section 11 of the Housing 
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805 note) is 
amended--
            (1) in subsection (i)(5)--
                    (A) by striking ``if the organization or consortia 
                has not used any grant amounts'' and inserting ``the 
                Secretary shall recapture any grant amounts provided to 
                the organization or consortia that are not used'';
                    (B) by striking ``(or,'' and inserting ``, except 
                that such period shall be 36 months''; and
                    (C) by striking ``within 36 months), the Secretary 
                shall recapture such unused amounts'' and inserting 
                ``and in the case of a grant amounts provided to a 
                local affiliate of the organization or consortia that 
                is developing 5 or more dwellings in connection with 
                such grant amounts''; and
            (2) in subsection (j), by inserting ``and grant amounts 
        provided to a local affiliate of the organization or consortia 
        that is developing 5 or more dwellings in connection with such 
        grant amounts'' before the period at the end.
    (d) Technical Correction.--Section 11(e) of the Housing Opportunity 
Program Extension Act of 1996 (42 U.S.C. 12805 note) is amended by 
striking ``consoria'' and inserting ``consortia''.

SEC. 602. LOCAL CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND 
              AFFORDABLE HOUSING.

    Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended--
            (1) in subsection (a), by inserting ``National Association 
        of Housing Partnerships,'' after ``Humanity,''; and
            (2) in subsection (e), by striking ``$25,000,000'' and all 
        that follows before the period and inserting ``to carry out 
        this section, $40,000,000 for each of fiscal years 2001 through 
        2003''.

SEC. 603. WORK REQUIREMENT FOR PUBLIC HOUSING RESIDENTS: COORDINATION 
              OF FEDERAL HOUSING ASSISTANCE WITH STATE WELFARE REFORM 
              WORK PROGRAMS.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended by adding at the end the following:

``SEC. 36. WORK REQUIREMENT.

    ``(a) In General.--Each family residing in public housing, shall 
comply with the requirements of section 407 of the Social Security Act 
(42 U.S.C. 607) in the same manner and to the same extent as a family 
receiving assistance under a State program funded under part A of title 
IV of that Act (42 U.S.C. 601 et seq.).
    ``(b) Work Requirements.--
            ``(1) Annual determinations.--
                    ``(A) Requirement.--For each family residing in 
                public housing that is subject to the requirement under 
                subsection (a), the public housing agency shall, 30 
                days before the expiration of each lease term of the 
                family under section 6(l)(1), review and determine the 
                compliance of the family with the requirement under 
                subsection (a) of this subsection.
                    ``(B) Due process.--Each determination under 
                subparagraph (A) shall be made in accordance with the 
                principles of due process and on a nondiscriminatory 
                basis.
                    ``(C) Noncompliance.-- If a public housing agency 
                determines that a family subject to the requirement 
                under subsection (a) has not complied with the 
                requirement, the agency--
                            ``(i) shall notify the family--
                                    ``(I) of such noncompliance;
                                    ``(II) that the determination of 
                                noncompliance is subject to the 
                                administrative grievance procedure 
                                under subsection (k); and
                                    ``(III) that, unless the family 
                                enters into an agreement under clause 
                                (ii) of this subparagraph, the family's 
                                lease will not be renewed; and
                            ``(ii) may not renew or extend the family's 
                        lease upon expiration of the lease term and 
                        shall take such action as is necessary to 
                        terminate the tenancy of the household, unless 
                        the agency enters into an agreement, before the 
                        expiration of the lease term, with the family 
                        providing for the family to cure any 
                        noncompliance with the requirement under 
                        paragraph (1), by participating in an economic 
                        self-sufficiency program (as defined in section 
                        12(g)) for or contributing to community service 
                        as many additional hours as the family needs to 
                        comply in the aggregate with such requirement 
                        over the 12-month term of the lease.
            ``(2) Ineligibility for occupancy for noncompliance.--A 
        public housing agency may not renew or extend any lease, or 
        provide any new lease, for a dwelling unit in public housing 
        for any family who was subject to the requirement under 
        subsection (a) and failed to comply with the requirement.
            ``(3) Inclusion in plan.--Each public housing agency shall 
        include in its public housing agency plan a detailed 
        description of the manner in which the agency intends to 
        implement and administer this subsection.''.
    (b) Conforming Amendment.--Section 12(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437j(c)) is repealed.

SEC. 604. SIMPLIFIED FHA DOWNPAYMENT CALCULATION.

    Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is 
amended--
            (1) in paragraph (2), by striking subparagraph (B) and all 
        that follows through ``applicability of this requirement.'' and 
        inserting the following:
                    ``(B) not to exceed an amount equal to--
                            ``(i) 98.75 percent of the appraised value 
                        of the property, if such value is equal to or 
                        less than $50,000;
                            ``(ii) 97.65 percent of the appraised value 
                        of the property, if such value is in excess of 
                        $50,000 but not in excess of $125,000;
                            ``(iii) 97.15 percent of the appraised 
                        value of the property, if such value is in 
                        excess of $125,000; or
                            ``(iv) notwithstanding clauses (ii) and 
                        (iii), 97.75 percent of the appraised value of 
                        the property, if such value is in excess of 
                        $50,000 and the property is in a State for 
                        which the average closing cost exceeds 2.10 
                        percent of the average, for the State, of the 
                        sales price of properties located in the State 
                        for which mortgages have been executed, as 
                        determined by the Secretary, except that, in 
                        this clause, the term `average closing cost' 
                        means, with respect to a State, the average, 
                        for mortgages executed for properties in the 
                        State, of the total amounts (as determined by 
                        the Secretary) of initial service charges, 
                        appraisal, inspection, and other fees and costs 
                        (as the Secretary shall approve) that are paid 
                        in connection with such mortgages.''; and
            (2) by striking paragraph (10).

SEC. 605. FLEXIBLE USE OF CDBG FUNDS.

    Section 105(a)(23) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(23)) is amended by striking ``housing units 
acquired'' and all that follows before the semicolon and inserting the 
following: ``housing (A) acquired through tax foreclosure proceedings 
brought by a unit of State or local government, or (B) placed under the 
supervision of a court for the purpose of remedying conditions 
dangerous to life, health, and safety, in order to prevent the 
abandonment and deterioration of such housing primarily in low- and 
moderate-income neighborhoods''.

SEC. 606. USE OF SECTION 8 ASSISTANCE IN GRANDFAMILY HOUSING ASSISTED 
              WITH HOME FUNDS.

    Section 215(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12745(a)) is amended by adding at the end the following:
            ``(6) Waiver of qualifying rent.--
                    ``(A) In general.--For the purpose of providing 
                affordable housing appropriate for families described 
                in subparagraph (B), the Secretary may, upon the 
                application of the project owner, waive the 
                applicability of paragraph (1)(A) with respect to a 
                dwelling unit if--
                            ``(i) the unit is occupied by such a 
                        family, on whose behalf tenant-based assistance 
                        is provided under section 8 of the United 
                        States Housing Act of 1937 (42 U.S.C. 1437f);
                            ``(ii) the rent for the unit is not greater 
                        than the existing fair market rent for 
                        comparable units in the area, as established by 
                        the Secretary under section 8 of the United 
                        States Housing Act of 1937; and
                            ``(iii) the Secretary determines that the 
                        waiver, together with waivers under this 
                        paragraph for other dwelling units in the 
                        project, will result in the use of amounts 
                        described in clause (iii) in an effective 
                        manner that will improve the provision of 
                        affordable housing for such families.
                    ``(B) Eligible families.--A family described in 
                this subparagraph is a family that consists of at least 
                1 elderly person (who is the head of household) and 1 
                or more of such person's grandchildren, great 
                grandchildren, great nieces, great nephews, or great 
                great grandchildren (as defined by the Secretary), but 
                does not include any parent of such grandchildren, 
                great grandchildren, great nieces, great nephews, or 
                great great grandchildren. Such term includes any such 
                grandchildren, great grandchildren, great nieces, great 
                nephews, or great great grandchildren who have been 
                legally adopted by such elderly person.''.

SEC. 607. SECTION 8 HOMEOWNERSHIP OPTION DOWNPAYMENT ASSISTANCE.

    (a) Amendments.--Section 8(y) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(y)) is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following:
            ``(7) Downpayment assistance.--
                    ``(A) Authority.--A public housing agency may, in 
                lieu of providing monthly assistance payments under 
                this subsection on behalf of a family eligible for such 
                assistance and at the discretion of the public housing 
                agency, provide assistance for the family in the form 
                of a single grant to be used only as a contribution 
                toward the downpayment required in connection with the 
                purchase of a dwelling for fiscal year 2001 and each 
                fiscal year thereafter to the extent provided in 
                advance in appropriations Acts.
                    ``(B) Amount.--The amount of a downpayment grant on 
                behalf of an assisted family may not exceed the amount 
                that is equal to the sum of the assistance payments 
                that would be made during the first year of assistance 
                on behalf of the family, based upon the income of the 
                family at the time the grant is to be made.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect immediately after the amendments made by section 555(c) of 
the Quality Housing and Work Responsibility Act of 1998 take effect 
pursuant to such section.

SEC. 608. REAUTHORIZATION OF NEIGHBORHOOD REINVESTMENT CORPORATION.

    Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act 
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and 
inserting the following: ``There is authorized to be appropriated to 
the corporation to carry out this title $90,000,000 for fiscal year 
2001, $95,000,000 for fiscal year 2002, and $95,000,000 for fiscal year 
2003.''.

                  TITLE VII--STATE HOUSING BLOCK GRANT

SEC. 701. STATE CONTROL OF PUBLIC AND ASSISTED HOUSING FUNDS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following:

``SEC. 37. STATE HOUSING BLOCK GRANT.

    ``(a) Purpose.--The purpose of this section is to create options 
for States and to provide maximum freedom to States to determine the 
manner in which to implement assisted housing reforms.
    ``(b) Authority.--Notwithstanding any other provision of law, a 
State may assume control of the Federal housing assistance funds 
available to residents in that State following the execution of a 
performance agreement with the Secretary in accordance with this 
section.
    ``(c) Performance Agreement.--
            ``(1) In general.--A State may, at its option, execute a 
        performance agreement with the Secretary under which the 
        provisions of law described in subsection (d) shall not apply 
        to such State, except as otherwise provided in this section.
            ``(2) Approval of performance agreement.--A performance 
        agreement submitted to the Secretary under this section shall 
        be approved by the Secretary unless the Secretary makes a 
        written determination, within 60 days after receiving the 
        performance agreement, that the performance agreement is in 
        violation of the provisions of this section.
            ``(3) Terms of performance agreement.--Each performance 
        agreement executed pursuant to this section shall include each 
        of the following provisions:
                    ``(A) Term.--A statement that the term of the 
                performance agreement shall be 5 years.
                    ``(B) Application of program requirements.--A 
                statement that no program requirements of any program 
                included by the State in the performance agreement 
                shall apply, except as otherwise provided in this Act.
                    ``(C) List.--A list provided by the State of the 
                programs that the State would like to include in the 
                performance agreement.
                    ``(D) Use of funds to improve housing opportunities 
                for low-income individuals and families.--Include a 5-
                year plan describing the manner in which the State 
                intends to combine and use the funds for programs 
                included in the performance agreement to advance the 
                low-income housing priorities of the State, improve the 
                quality of low-income housing, reduce homelessness, 
                reduce crime, and encourage self-sufficiency by 
                achieving the performance goals.
                    ``(E) Performance goals.--
                            ``(i) In general.--A statement of 
                        performance goals established by the State for 
                        the 5-year term of the performance agreement 
                        that, at a minimum measures--
                                    ``(I) improvement in housing 
                                conditions for low-income individuals 
                                and families;
                                    ``(II) the increase in the number 
                                of assisted units that pass housing 
                                quality inspections;
                                    ``(III) the increase in economic 
                                opportunity and self-sufficiency and 
                                increases the number of residents that 
                                obtain employment;
                                    ``(IV) the reduction in crime and 
                                assistance to victims of crime;
                                    ``(V) the reduction in homelessness 
                                and the level of poverty;
                                    ``(VI) the cost of assisted housing 
                                units provided;
                                    ``(VII) the level of assistance 
                                provided to people with disabilities 
                                and to the elderly;
                                    ``(VIII) the success in maintaining 
                                and increasing the stock of affordable 
                                housing and increasing home-ownership; 
                                and
                                    ``(IX) numerical goals to attain 
                                for each performance goal by the end of 
                                the performance agreement.
                            ``(ii) Additional indicators of 
                        performance.--A State may identify in the 
                        performance agreement any indicators of 
                        performance such as reduced cost.
                    ``(F) Fiscal responsibilities.--An assurance that 
                the State will use fiscal control and fund accounting 
                procedures that will ensure proper disbursement of, and 
                accounting for, Federal funds paid to the State or 
                community under this Act. Recipients will use Generally 
                Accepted Accounting Principles (GAAP).
                    ``(G) Civil rights.--An assurance that the State 
                will meet the requirements of applicable Federal civil 
                rights laws including section 25(k).
                    ``(H) State financial participation.--An assurance 
                that the State will not significantly reduce the level 
                of spending of State funds for housing during the term 
                of the performance agreement.
                    ``(I) Annual report.--An assurance that not later 
                than 1 year after the execution of the performance 
                agreement, and annually thereafter, each State shall 
                disseminate widely to the general public, submit to the 
                Secretary, and post on the Internet, a report that 
                includes low-income housing performance data and a 
                detailed description of the manner in which the State 
                has used Federal funds to provide low-income housing 
                assistance to meet the terms of the performance 
                agreement.
            ``(4) Amendment to performance agreement.--A State may 
        submit an amendment to the performance agreement to the 
        Secretary under the following circumstances:
                    ``(A) Reduce scope of performance agreement.--Not 
                later than 1 year after the execution of the 
                performance agreement, a State may amend the 
                performance agreement through a request to withdraw a 
                program from such agreement. Upon approval by the 
                Secretary of the amendment, the requirements of 
                existing law shall apply for any program withdrawn from 
                the performance agreement.
                    ``(B) Expand scope of performance agreement.--Not 
                later than 1 year after the execution of the 
                performance agreement, a State may amend its 
                performance agreement to include additional programs 
                and performance indicators for which it will be held 
                accountable.
    ``(d) Eligible Programs.--
            ``(1) In general.--The provisions of law referred to in 
        subsection (c), are--
                    ``(A) the voucher program for rental assistance 
                under section 8(o) of the United States Housing Act of 
                1937;
                    ``(B) the programs for project-based assistance 
                under section 8 of the United States Housing Act of 
                1937;
                    ``(C) the program for housing for the elderly under 
                section 202 of the Housing Act of 1959;
                    ``(D) the program for housing for persons with 
                disabilities under section 811 of the Cranston-Gonzales 
                National Affordable Housing Act; and
            ``(2) Allocation amounts.--A State may choose to combine 
        funds from any or all the programs described in paragraph (1) 
        without regard to the program requirements of such provisions, 
        except as otherwise provided in this Act.
            ``(3) Uses of funds.--Funds made available under this 
        section to a State shall be used for any housing purpose other 
        than those prohibited by State law of the participating State.
    ``(e) Within-State Distribution of Funds.--The distribution of 
funds from programs included in the performance agreement from a State 
to a local housing agency within the State shall be determined by the 
State legislature and the Governor of the State. In a State in which 
the State constitution or State law designates another individual, 
entity, or agency to be responsible for housing, such other individual, 
entity, or agency shall work in consultation with the Governor and 
State legislature to determine the local distribution of funds.
    ``(f) Set-Aside for State Administrative Expenditures.--A State may 
use not more than 3 percent of the total amount of funds allocated to 
such State under the programs included in the performance agreement for 
administrative purposes.
    ``(g) Level of Block Grant.--
            ``(1) In general.--During the initial 5 years following 
        execution of the performance agreement, a participating State 
        shall receive the highest level of funding for the 3 years 
        prior to the first year of the performance agreement in each 
        program included in the block grant. This level will be 
        adjusted each year by multiplying the prior year's amount by 
        the cost-of-living adjustment determined under section 1(f)(3) 
        of the Internal Revenue Code of 1986.
            ``(2) Formula.--Six months after the effective date of the 
        Local Housing Opportunities Act, the Secretary shall submit to 
        Congress recommendations for a block grant formula that 
        reflects the relative low-income level and affordable housing 
        needs of each State.
    ``(h) Performance Review.--
            ``(1) In general.--If at the end of the 5-year term of the 
        performance agreement a State has failed to meet at least 80 
        percent of the performance goals submitted in the performance 
        agreement, the Secretary shall terminate the performance 
        agreement and the State shall be required to comply with the 
        program requirement, in effect at the time of termination, of 
        each program included in the performance agreement.
            ``(2) Renewal.--A State that seeks to renew its performance 
        agreement shall notify the Secretary of its renewal request not 
        less that 6 months prior to the end of the term of the 
        performance agreement. A State that has met at least 80 percent 
        of its performance goals submitted in the performance agreement 
        at the end of the 5-year term may reapply to the Secretary to 
        renew its performance agreement for an additional 5-year 
        period. Upon the completion of the 5-year term of the 
        performance agreement or as soon thereafter as the State 
        submits data required under the agreement, the Secretary shall 
        renew, for an additional 5-year term, the performance agreement 
        of any State or community that has met at least 80 percent of 
        its performance goals.
    ``(i) Performance Reward Fund.--To reward States that make 
significant progress in meeting performance goals, the Secretary shall 
annually set aside sufficient funds to grant a reward of up to 5 
percent of the funds allocated to participating States.
    ``(j) Definitions.--In this section:
            ``(1) Community.--The term `community' means any local 
        governing jurisdiction within a State.
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(3) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the United States Virgin Islands, the Commonwealth of the 
        Northern Mariana Islands, and American Samoa.''.

                 TITLE VIII--PRIVATE SECTOR INCENTIVES

SEC. 801. SENSE OF CONGRESS REGARDING LOW-INCOME HOUSING TAX CREDIT 
              STATE CEILINGS AND PRIVATE ACTIVITY BOND CAPS.

    (a) Findings.--Congress finds that--
            (1) the low-income housing tax credit and private activity 
        bonds have been valuable resources in the effort to increase 
        affordable housing;
            (2) the low-income housing tax credit and private activity 
        bonds effectively utilize the ability of the States to deliver 
        resources to the areas of greatest need within their 
        jurisdictions; and
            (3) the value of the low-income housing tax credit and the 
        private activity bonds have been eroded by inflation.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the State ceiling for the low-income housing tax credit 
        should be increased by 40 percent in the year 2000, and the 
        level for the State ceiling should be adjusted annually to 
        account for increases in the cost of living; and
            (2) the private activity bond cap should be increased by 50 
        percent in the year 2000, and the value of the cap should be 
        adjusted annually to account for increases in the cost of 
        living.

                         TITLE IX--ENFORCEMENT

SEC. 901. PROHIBITION ON USE OF APPROPRIATED FUNDS FOR LOBBYING BY THE 
              DEPARTMENT.

    (a) In General.--Subchapter III of chapter 13 of title 31, United 
States Code, is amended by adding at the end the following:
``Sec. 1354. Prohibition on lobbying by the Department of Housing and 
              Urban Development
    ``(a) Prohibition.--Except as provided in subsection (b), unless 
such activity has been specifically authorized by an Act of Congress 
and notwithstanding any other provision of law, no funds made available 
to the Department of Housing and Urban Development by appropriation 
shall be used by such agency for any activity (including the 
preparation, publication, distribution, or use of any kit, pamphlet, 
booklet, public presentation, news release, radio, television, or film 
presentation, video, or other written or oral statement) that in any 
way tends to promote public support or opposition to any legislative 
proposal (including the confirmation of the nomination of a public 
official or the ratification of a treaty) on which congressional action 
is not complete.
    ``(b) Exceptions.--
            ``(1) President and vice president.--Subsection (a) shall 
        not apply to the President or Vice President.
            ``(2) Congressional communications.--Subsection (a) shall 
        not be construed to prevent any officer or employee of the 
        Department of Housing and Urban Development from--
                    ``(A) communicating directly to a Member of 
                Congress (or to any staff of a Member or committee of 
                Congress) a request for legislation or appropriations 
                that such officer or employee deems necessary for the 
                efficient conduct of the public business; or
                    ``(B) responding to a request for information or 
                technical assistance made by a Member of Congress (or 
                by any staff of a Member or committee of Congress).
            ``(3) Public communications on views of president.--
                    ``(A) In general.--Subsection (a) shall not be 
                construed to prevent any Federal agency official whose 
                appointment is confirmed by the Senate, any official in 
                the Executive Office of the President directly 
                appointed by the President or Vice President, or the 
                head of any Federal agency described in subsection 
                (e)(2), from communicating with the public, through 
                radio, television, or other public communication media, 
                on the views of the President for or against any 
                pending legislative proposal.
                    ``(B) Nondelegation.--Subparagraph (A) does not 
                permit any Federal agency official described in that 
                subparagraph to delegate to another person the 
                authority to make communications subject to the 
                exemption provided by that subparagraph.
    ``(c) Comptroller General.--
            ``(1) Assistance of inspector general.--In exercising the 
        authority provided in section 712, as applied to this section, 
        the Comptroller General may obtain, without reimbursement from 
        the Comptroller General, the assistance of the Inspector 
        General within the Department of Housing and Urban Development 
        when any activity prohibited by subsection (a) of this section 
        is under review.
            ``(2) Evaluation.--One year after the date of enactment of 
        this section, the Comptroller General shall report to the 
        Committee on Banking and Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate on the implementation of this 
        section.
            ``(3) Annual report.--The Comptroller General shall, in the 
        annual report under section 719(a), include summaries of 
        investigations undertaken by the Comptroller General with 
        respect to subsection (a).
    ``(d) Penalties and Injunctions.--
            ``(1) Penalties.--
                    ``(A) In general.--The Attorney General may bring a 
                civil action in the appropriate district court of the 
                United States against any person who engages in conduct 
                constituting an offense under this section, whether 
                such offense is due to personal participation in any 
                activity prohibited in subsection (a) or improper 
                delegation to another person the authority to make 
                exempt communications in violation of subsection 
                (b)(3), and, upon proof of such conduct by a 
                preponderance of the evidence, such person shall be 
                subject to a civil penalty of not less than $5,000 and 
                not more than $10,000 for each violation.
                    ``(B) Other remedies not precluded.--The imposition 
                of a civil penalty under this subsection does not 
                preclude any other criminal or civil statutory, common 
                law, or administrative remedy, which is available by 
                law to the United States or any other person.
            ``(2) Injunctions.--
                    ``(A) In general.--If the Attorney General has 
                reason to believe that a person is engaging in conduct 
                constituting an offense under this section, whether 
                such offense is due to personal participation in any 
                activity prohibited in subsection (a) or improper 
                delegation to another person the authority to make 
                exempt communications in violation of subsection 
                (b)(3)--
                            ``(i) the Attorney General may petition an 
                        appropriate district court of the United States 
                        for an order prohibiting that person from 
                        engaging in such conduct; and
                            ``(ii) the court may issue an order 
                        prohibiting that person from engaging in such 
                        conduct if the court finds that the conduct 
                        constitutes such an offense.
                    ``(B) Other remedies not precluded.--The filing of 
                a petition under this section does not preclude any 
                other remedy which is available by law to the United 
                States or any other person.
    ``(e) Definition.--In this section, the term `Federal agency' 
means--
            ``(1) any executive agency, within the meaning of section 
        105 of title 5; and
            ``(2) any private corporation created by a law of the 
        United States for which the Congress appropriates funds.''.
    (b) Conforming Amendment.--The table of sections for chapter 13 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 1353 the following:

``1354. Prohibition on lobbying by the Department of Housing and Urban 
                            Development.''.
    (c) Applicability.--The amendments made by this section shall apply 
to the use of funds after the effective date of this Act, including 
funds appropriated or received on or before that date.

SEC. 902. REGULATIONS.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary shall issue such regulations as may be necessary to carry 
out this Act and the amendments made by this Act.
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