II

106TH CONGRESS

1ST SESSION S. 485

To provide for the disposition of unoccupied and substandard multifamily

housing projects owned by the Secretary of Housing and Urban Development.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 25, 1999

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

to the Committee on Banking, Housing and Urban Affairs

A BILL

To provide for the disposition of unoccupied and substandard

multifamily housing projects owned by the Secretary of

Housing and Urban Development.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Urban Homestead Act

5 of 1999’’.

6 SEC. 2. DEFINITIONS.

7 In this Act:

8 (1) COMMUNITY DEVELOPMENT CORPORA9 TION.—The term ‘‘community development corpora10 tion’’ means a nonprofit organization whose primary
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1 purpose is to promote community development by

2 providing housing opportunities to low-income fami3 lies.

4 (2) LOW-INCOME FAMILIES.—The term ‘‘low-in5 come families’’ has the same meaning as in section

6 3(b) of the United States Housing Act of 1937 (42

7 U.S.C. 1437a(b)).

8 (3) MULTIFAMILY HOUSING PROJECT.—The

9 term ‘‘multifamily housing project’’ has the same

10 meaning as in section 203 of the Housing and Com11 munity Development Amendments of 1978 (12

12 U.S.C. 1701z–11).

13 (4) SECRETARY.—The term ‘‘Secretary’’ means

14 the Secretary of Housing and Urban Development.

15 (5) SEVERE PHYSICAL PROBLEMS.—A dwelling

16 unit shall be considered to have ‘‘severe physical

17 problems’’ if such unit—

18 (A) lacks hot or cold piped water, a flush

19 toilet, or both a bathtub and a shower in the

20 unit, for the exclusive use of that unit;

21 (B) on not less than 3 separate occasions,

22 during the preceding winter months was uncom23 fortably cold for a period of more than 6 con24 secutive hours due to a malfunction of the heat25 ing system for the unit;
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1 (C) has no functioning electrical service,

2 exposed wiring, any room in which there is not

3 a functioning electrical outlet, or has experi4 enced not less than 3 blown fuses or tripped

5 circuit breakers during the preceding 90-day

6 period;

7 (D) is accessible through a public hallway

8 in which there are no working light fixtures,

9 loose or missing steps or railings, and no eleva10 tor; or

11 (E) has severe maintenance problems, in12 cluding water leaks involving the roof, windows,

13 doors, basement, or pipes or plumbing fixtures,

14 holes or open cracks in walls or ceilings, severe

15 paint peeling or broken plaster, and signs of ro16 dent infestation.

17 (6) SINGLE FAMILY RESIDENCE.—The term

18 ‘‘single family residence’’ means a 1- to 4-family

19 dwelling that is held by the Secretary.

20 (7) SUBSTANDARD MULTIFAMILY HOUSING

21 PROJECT.—A multifamily housing project is ‘‘sub22 standard’’ if not less than 25 percent of the dwelling

23 units of the project have severe physical problems.

24 (8) UNIT OF GENERAL LOCAL GOVERNMENT.—

25 The term ‘‘unit of general local government’’ has the
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1 same meaning as in section 102(a) of the Housing

2 and Community Development Act of 1974 (42

3 U.S.C. 5302).

4 (9) UNOCCUPIED MULTIFAMILY HOUSING

5 PROJECT.—The term ‘‘unoccupied multifamily hous6 ing project’’ means a multifamily housing project

7 that the Secretary certifies in writing is not inhab8 ited.

9 SEC. 3. DISPOSITION OF UNOCCUPIED AND SUBSTANDARD

10 PUBLIC HOUSING.

11 (a) PUBLICATION IN FEDERAL REGISTER.—

12 (1) IN GENERAL.—Subject to paragraph (2),

13 beginning 6 months after the date of enactment of

14 this Act, and every 6 months thereafter, the Sec15 retary shall publish in the Federal Register a list of

16 each unoccupied multifamily housing project, sub17 standard multifamily housing project, and other resi18 dential property that is owned by the Secretary.

19 (2) EXCEPTION FOR CERTAIN PROJECTS AND

20 PROPERTIES.—

21 (A) PROJECTS.—A project described in

22 paragraph (1) shall not be included in a list

23 published under paragraph (1) if less than 6

24 months have elapsed since the later of—
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1 (i) the date on which the project was

2 acquired by the Secretary; or

3 (ii) the date on which the project was

4 determined to be unoccupied or sub5 standard.

6 (B) PROPERTIES.—A property described in

7 paragraph (1) shall not be included in a list

8 published under paragraph (1) if less than 6

9 months have elapsed since the date on which

10 the property was acquired by the Secretary.

11 (b) TRANSFER OF OWNERSHIP TO COMMUNITY DE12 VELOPMENT CORPORATIONS.—Notwithstanding section

13 203 of the Housing and Community Development Amend14 ments of 1978 (12 U.S.C. 1701z–11) or any other provi15 sion of Federal law pertaining to the disposition of prop16 erty, upon the written request of a community develop17 ment corporation, the Secretary shall transfer to the com18 munity development corporation ownership of any unoccu19 pied multifamily housing project, substandard multifamily

20 housing project, or other residential property owned by the

21 Secretary, if the project or property is—

22 (1) located in the same unit of general local

23 government as the community development corpora24 tion; and
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1 (2) included in the most recent list published by

2 the Secretary under subsection (a).

3 (c) SATISFACTION OF INDEBTEDNESS.—Prior to any

4 transfer of ownership under subsection (b), the Secretary

5 shall satisfy any indebtedness incurred in connection with

6 the project or residence at issue, either by—

7 (1) cancellation of the indebtedness; or

8 (2) reimbursing the community development

9 corporation to which the project or residence is

10 transferred for the amount of the indebtedness.

11 SEC. 4. EXEMPTION FROM PROPERTY DISPOSITION RE12 QUIREMENTS.

13 No provision of the Multifamily Housing Property

14 Disposition Reform Act of 1994, or any amendment made

15 by that Act, shall apply to the disposition of property

16 under this Act.

17 SEC. 5. TENANT LEASES.

18 This Act shall not affect the terms or the enforce19 ability of any contract or lease entered into before the date

20 of enactment of this Act.

21 SEC. 6. PROCEDURES.

22 Not later than 6 months after the date of enactment

23 of this Act, the Secretary shall establish, by rule, regula-
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1 tion, or order, such procedures as may be necessary to

2 carry out this Act.

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