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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1299 Engrossed in Senate (ES)]

103d CONGRESS

  1st Session

                                S. 1299

_______________________________________________________________________

                                 AN ACT

  To reform requirements for the disposition of multifamily property 
   owned by the Secretary of Housing and Urban Development, enhance 
program flexibility, authorize a program to combat crime, and for other 
                               purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
103d CONGRESS
  1st Session
                                S. 1299

_______________________________________________________________________

                                 AN ACT

 
  To reform requirements for the disposition of multifamily property 
   owned by the Secretary of Housing and Urban Development, enhance 
program flexibility, authorize a program to combat crime, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Housing and Community Development 
Act of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
                    TITLE I--FHA MULTIFAMILY REFORMS

Sec. 101. Multifamily property disposition.
Sec. 102. Repeal of State agency multifamily property disposition 
                            demonstration.
Sec. 103. RTC marketing and disposition of multifamily projects owned 
                            by HUD.
Sec. 104. Civil money penalties against general partners and certain 
                            managing agents of multifamily housing 
                            projects.
Sec. 105. Models for property disposition. 
Sec. 106. Preventing mortgage defaults.
Sec. 107. Interest rates on assigned mortgages.
Sec. 108. Authorization of appropriations. 
                 TITLE II--ENHANCED PROGRAM FLEXIBILITY

            Subtitle A--Office of Public and Indian Housing

Sec. 201. Revitalization of severely distressed public housing.
Sec. 202. Disallowance of earned income for residents who obtain 
                            employment.
Sec. 203. Ceiling rents based on reasonable rental value.
Sec. 204. Resident management program.
        Subtitle B--Office of Community Planning and Development

Sec. 211. Economic development initiative.
Sec. 212. HOME investment partnerships.
Sec. 213. HOPE match requirement.
Sec. 214. Flexibility of CDBG program for disaster areas.
Sec. 215. Flexibility of HOME program for disaster areas.
            Subtitle C--Community Partnerships Against Crime

Sec. 221. COMPAC program.
               TITLE III--TECHNICAL AND OTHER AMENDMENTS

                Subtitle A--Public and Assisted Housing

Sec. 301. Correction to definition of family.
Sec. 302. Identification of CIAP replacement needs.
Sec. 303. Applicability of public housing amendments to Indian housing.
Sec. 304. Project-based accounting.
Sec. 305. Operating subsidy adjustments for anticipated fraud 
                            recoveries.
Sec. 306. Technical assistance for lead hazard reduction grantees.
Sec. 307. Environmental review in connection with grants for lead-based 
                            paint hazard reduction.
Sec. 308. Fire safety in federally assisted housing.
Sec. 309. Section 23 conversion projects.
Sec. 310. Indemnification of contractors for intellectual property 
                            rights disputes.
Sec. 311. Assumption of environmental review responsibilities under 
                            United States Housing Act of 1937 programs.
Sec. 312. Increased State flexibility in the Low-Income Home Energy 
                            Assistance Program.
                    Subtitle B--Multifamily Housing

Sec. 321. Correction of multifamily mortgage limits.
Sec. 322. FHA multifamily risk-sharing; HFA pilot program amendments.
Sec. 323. Subsidy layering review.
           Subtitle C--Miscellaneous and Technical Amendments

Sec. 331. Technical correction to rural housing preservation program.
Sec. 332. CDBG technical amendment.
Sec. 333. Environmental review in connection with special projects.
                      TITLE IV--GENERAL PROVISIONS

Sec. 401. Mount Rushmore Commemorative Coin Act.
Sec. 402. Minority community development grants for communities with 
                            special needs.

SEC. 3. DEFINITIONS.

    As used in this Act--
            (1) the term ``FHA'' means the Federal Housing 
        Administration;
            (2) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development; and
            (3) the term ``RTC'' means the Resolution Trust 
        Corporation.

                    TITLE I--FHA MULTIFAMILY REFORMS

SEC. 101. MULTIFAMILY PROPERTY DISPOSITION.

    (a) Findings.--The Congress finds that--
            (1) the portfolio of multifamily housing project mortgages 
        insured by the FHA is severely troubled and at risk of default, 
        requiring the Secretary to increase loss reserves from $5.5 
        billion in 1991 to $11.9 billion in 1992 to cover estimated 
        future losses;
            (2) the inventory of multifamily housing projects owned by 
        the Secretary has more than tripled since 1989, and, by the end 
        of 1993, may exceed 75,000 units;
            (3) the cost to the Federal Government of owning and 
        maintaining multifamily housing projects escalated to 
        approximately $250 million in fiscal year 1992;
            (4) the inventory of multifamily housing projects subject 
        to mortgages held by the Secretary has increased dramatically, 
        to more than 2,400 mortgages, and approximately half of these 
        mortgages, secured by projects with over 230,000 units, are 
        delinquent;
            (5) the inventory of insured and formerly insured 
        multifamily housing projects is rapidly deteriorating, 
        endangering tenants and neighborhoods;
            (6) over 5 million very low-income families today have a 
        critical need for housing that is affordable and habitable; and
            (7) the current statutory framework governing the 
        disposition of multifamily housing projects effectively impedes 
        the Government's ability to dispose of properties, protect 
        tenants, and ensure that projects are maintained over time.
    (b) Management and Disposition of Multifamily Housing Projects.--
Section 203 of the Housing and Community Development Amendments of 1978 
(12 U.S.C. 1701z-11) is amended to read as follows:

``SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAMILY HOUSING PROJECTS.

    ``(a) Goals.--The Secretary of Housing and Urban Development 
(hereafter in this section referred to as the `Secretary') shall manage 
or dispose of multifamily housing projects that are owned by the 
Secretary or that are subject to a mortgage held by the Secretary in a 
manner that--
            ``(1) is consistent with the National Housing Act and this 
        section;
            ``(2) will protect the financial interests of the Federal 
        Government; and
            ``(3) will, in the least costly fashion among reasonable 
        available alternatives, further the goals of--
                    ``(A) preserving housing so that it can remain 
                available to and affordable by low-income persons;
                    ``(B) preserving and revitalizing residential 
                neighborhoods;
                    ``(C) maintaining existing housing stock in a 
                decent, safe, and sanitary condition;
                    ``(D) minimizing the involuntary displacement of 
                tenants;
                    ``(E) maintaining housing for the purpose of 
                providing rental housing, cooperative housing, and 
                homeownership opportunities for low-income persons; and
                    ``(F) minimizing the need to demolish multifamily 
                housing projects.
The Secretary, in determining the manner in which a project is to be 
managed or disposed of, shall balance competing goals relating to 
individual projects in a manner that will further the purposes of this 
section.
    ``(b) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Multifamily housing project.--The term `multifamily 
        housing project' means any multifamily rental housing project 
        that is, or prior to acquisition by the Secretary was, assisted 
        or insured under the National Housing Act, or was subject to a 
        loan under section 202 of the Housing Act of 1959.
            ``(2) Subsidized project.--The term `subsidized project' 
        means a multifamily housing project receiving any of the 
        following types of assistance immediately prior to the 
        assignment of the mortgage on such project to, or the 
        acquisition of such mortgage by, the Secretary:
                    ``(A) Below market interest rate mortgage insurance 
                under the proviso of section 221(d)(5) of the National 
                Housing Act.
                    ``(B) Interest reduction payments made in 
                connection with mortgages insured under section 236 of 
                the National Housing Act.
                    ``(C) Direct loans made under section 202 of the 
                Housing Act of 1959.
                    ``(D) Assistance in the form of--
                            ``(i) rent supplement payments under 
                        section 101 of the Housing and Urban 
                        Development Act of 1965;
                            ``(ii) additional assistance payments under 
                        section 236(f)(2) of the National Housing Act;
                            ``(iii) housing assistance payments made 
                        under section 23 of the United States Housing 
                        Act of 1937 (as in effect before January 1, 
                        1975); or
                            ``(iv) housing assistance payments made 
                        under section 8 of the United States Housing 
                        Act of 1937 (excluding payments made for 
                        tenant-based assistance under section 8);
                if (except for purposes of section 183(c) of the 
                Housing and Community Development Act of 1987) such 
                assistance payments are made to more than 50 percent of 
                the units in the project.
            ``(3) Formerly subsidized project.--The term `formerly 
        subsidized project' means a multifamily housing project owned 
        by the Secretary that was a subsidized project immediately 
        prior to its acquisition by the Secretary.
            ``(4) Unsubsidized project.--The term `unsubsidized 
        project' means a multifamily housing project owned by the 
        Secretary that is not a subsidized project or a formerly 
        subsidized project.
    ``(c) Management or Disposition of Property.--
            ``(1) Disposition to purchasers.--The Secretary is 
        authorized, in carrying out this section, to dispose of a 
        multifamily housing project owned by the Secretary on a 
        negotiated, competitive bid, or other basis, on such terms as 
        the Secretary deems appropriate considering the low-income 
        character of the project and the requirements of subsection 
        (a), to a purchaser determined by the Secretary to be capable 
        of--
                    ``(A) satisfying the conditions of the disposition 
                plan;
                    ``(B) implementing a sound financial and physical 
                management program that is designed to enable the 
                project to meet anticipated operating and repair 
                expenses to ensure that the project will remain in 
                decent, safe, and sanitary condition;
                    ``(C) responding to the needs of the tenants and 
                working cooperatively with tenant organizations;
                    ``(D) providing adequate organizational, staff, and 
                financial resources to the project; and
                    ``(E) meeting such other requirements as the 
                Secretary may determine.
            ``(2) Contracting for management services.--The Secretary 
        is authorized, in carrying out this section--
                    ``(A) to contract for management services for a 
                multifamily housing project that is owned by the 
                Secretary (or for which the Secretary is mortgagee in 
                possession), on a negotiated, competitive bid, or other 
                basis at a price determined by the Secretary to be 
                reasonable, with a manager the Secretary has determined 
                is capable of--
                            ``(i) implementing a sound financial and 
                        physical management program that is designed to 
                        enable the project to meet anticipated 
                        operating and maintenance expenses to ensure 
                        that the project will remain in decent, safe, 
                        and sanitary condition;
                            ``(ii) responding to the needs of the 
                        tenants and working cooperatively with tenant 
                        organizations;
                            ``(iii) providing adequate organizational, 
                        staff, and other resources to implement a 
                        management program; and
                            ``(iv) meeting such other requirements as 
                        the Secretary may determine; and
                    ``(B) to require the owner of a multifamily housing 
                project that is subject to a mortgage held by the 
                Secretary to contract for management services for the 
                project in the manner described in subparagraph (A).
            ``(3) Foreclosure sale.--In carrying out this section, the 
        Secretary shall--
                    ``(A) prior to foreclosing on any multifamily 
                housing project held by the Secretary, notify both the 
                unit of general local government in which the property 
                is located and the tenants of the property of the 
                proposed foreclosure sale; and
                    ``(B) upon disposition of a multifamily housing 
                project through a foreclosure sale, determine that the 
                purchaser is capable of implementing a sound financial 
                and physical management program that is designed to 
                enable the project to meet anticipated operating and 
                repair expenses to ensure that the project will remain 
                in decent, safe, and sanitary condition.
    ``(d) Maintenance of Housing Projects.--
            ``(1) Housing projects owned by the secretary.--In the case 
        of multifamily housing projects that are owned by the Secretary 
        (or for which the Secretary is mortgagee in possession), the 
        Secretary shall--
                    ``(A) to the greatest extent possible, maintain all 
                such occupied projects in a decent, safe, and sanitary 
                condition;
                    ``(B) to the greatest extent possible, maintain 
                full occupancy in all such projects; and
                    ``(C) maintain all such projects for purposes of 
                providing rental or cooperative housing.
            ``(2) Housing projects subject to a mortgage held by the 
        secretary.--In the case of any multifamily housing project that 
        is subject to a mortgage held by the Secretary, the Secretary 
        shall require the owner of the project to carry out the 
        requirements of paragraph (1).
    ``(e) Required Assistance.--In carrying out the goals specified in 
subsection (a), the Secretary shall take not less than one of the 
following actions:
            ``(1) Contract with owner.--Enter into contracts under 
        section 8 of the United States Housing Act of 1937, to the 
        extent budget authority is available, with owners of 
        multifamily housing projects that are acquired by a purchaser 
        other than the Secretary at foreclosure or after sale by the 
        Secretary.
                    ``(A) Subsidized or formerly subsidized projects 
                receiving certain assistance.--In the case of a 
                subsidized project referred to in subparagraph (A), 
                (B), or (C) of subsection (b)(2) or a formerly 
                subsidized project that was subsidized as described in 
                any such subparagraph--
                            ``(i) the contract shall be sufficient to 
                        assist at least all units covered by an 
                        assistance contract under any of the 
                        authorities referred to in subsection (b)(2)(D) 
                        before acquisition, unless the Secretary acts 
                        pursuant to the provisions of subparagraph (C) 
                        of this paragraph;
                            ``(ii) in the case of units requiring 
                        project-based rental assistance pursuant to 
                        clause (i) that are occupied by families who 
                        are not eligible for assistance under section 
                        8, a contract under this subparagraph shall 
                        also provide that when a vacancy occurs, the 
                        owner shall lease the available unit to a 
                        family eligible for assistance under section 8; 
                        and
                            ``(iii) the Secretary shall take actions to 
                        ensure the availability and affordability, as 
                        defined in paragraph (3)(B), for the remaining 
                        useful life of the project, as defined by the 
                        Secretary, of any unit located in any project 
                        referred to in subparagraph (A), (B), or (C) of 
                        subsection (b)(2) that does not otherwise 
                        receive project-based rental assistance under 
                        this subparagraph. To carry out this clause, 
                        the Secretary may require purchasers to 
                        establish use or rent restrictions on these 
                        units.
                    ``(B) Subsidized or formerly subsidized projects 
                receiving other assistance.--In the case of a 
                subsidized project referred to in subsection (b)(2)(D) 
                or a formerly subsidized project that was subsidized as 
                described in subsection (b)(2)(D)--
                            ``(i) the contract shall be sufficient to 
                        assist at least all units in the project that 
                        are covered, or that were covered immediately 
                        before foreclosure on or acquisition of the 
                        project by the Secretary, by an assistance 
                        contract under any of the authorities referred 
                        to in such subsection, unless the Secretary 
                        acts pursuant to provisions of subparagraph 
                        (C); and
                            ``(ii) in the case of units requiring 
                        project-based rental assistance pursuant to 
                        clause (i) that are occupied by families who 
                        are not eligible for assistance under section 
                        8, a contract under this paragraph shall also 
                        provide that when a vacancy occurs, the owner 
                        shall lease the available unit to a family 
                        eligible for assistance under section 8.
                    ``(C) Exceptions to subparagraphs (a) and (b).--In 
                lieu of providing project-based rental assistance under 
                subparagraph (A) or (B), the Secretary may require 
                certain units in unsubsidized projects to contain use 
                restrictions providing that such units will be 
                available to and affordable by very low-income families 
                for the remaining useful life of the project, as 
                defined by the Secretary, if--
                            ``(i) the Secretary matches any reduction 
                        in the number of units otherwise required to be 
                        assisted with project-based rental assistance 
                        under subparagraph (A) or (B) with at least an 
                        equivalent increase in the number of units made 
                        affordable, as such term is defined in 
                        paragraph (3)(B), to very low-income persons 
                        within unsubsidized projects;
                            ``(ii) the Secretary makes tenant-based 
                        assistance under section 8 available to low-
                        income tenants residing in units otherwise 
                        requiring project-based rental assistance under 
                        subparagraph (A) or (B) upon disposition; and
                            ``(iii) the units described in clause (i) 
                        are located within the same market area.
                    ``(D) Contract requirements for unsubsidized 
                projects.--Notwithstanding actions that are taken 
                pursuant to subparagraph (C), in any unsubsidized 
                project--
                            ``(i) the contract shall be at least 
                        sufficient to provide project-based rental 
                        assistance for all units that are covered or 
                        were covered immediately before foreclosure or 
                        acquisition by an assistance contract under--
                                    ``(I) section 8(b)(2) of the United 
                                States Housing Act of 1937, as such 
                                section existed before October 1, 1983 
                                (new construction and substantial 
                                rehabilitation); section 8(b) of such 
                                Act (property disposition); section 
                                8(d)(2) of such Act (project-based 
                                certificates); section 8(e)(2) of such 
                                Act (moderate rehabilitation); section 
                                23 of such Act (as in effect before 
                                January 1, 1975); or section 101 of the 
                                Housing and Urban Development Act of 
                                1965 (rent supplements); or
                                    ``(II) section 8 of the United 
                                States Housing Act of 1937, following 
                                conversion from section 101 of the 
                                Housing and Urban Development Act of 
                                1965; and
                            ``(ii) the Secretary shall make available 
                        tenant-based assistance under section 8 of the 
                        United States Housing Act of 1937 to tenants 
                        currently residing in units that were covered 
                        by an assistance contract under the Loan 
                        Management Set-Aside program under section 8(b) 
                        of the United States Housing Act of 1937 
                        immediately before foreclosure or acquisition 
                        of the project by the Secretary.
            ``(2) Annual contribution contracts.--In the case of 
        multifamily housing projects that are acquired by a purchaser 
        other than the Secretary at foreclosure or after sale by the 
        Secretary, enter into annual contribution contracts with public 
        housing agencies to provide tenant-based assistance under 
        section 8 of the United States Housing Act of 1937 to all low-
        income families who are otherwise eligible for assistance, in 
        accordance with the requirements of subparagraph (A), (B), or 
        (D) of paragraph (1), on the date that the project is acquired 
        by the purchaser. The Secretary shall take action under this 
        paragraph only after making a determination that there is an 
        adequate supply of habitable housing in the area that is 
        available to and affordable by low-income families using such 
        assistance. With respect to subsidized or formerly subsidized 
        projects, actions may be taken pursuant to this paragraph in 
        connection with not more than 10 percent of the aggregate 
        number of units in subsidized or formerly subsidized projects 
        disposed of by the Secretary in each fiscal year.
            ``(3) Other assistance.--
                    ``(A) In general.--In accordance with the authority 
                provided under the National Housing Act, reduce the 
                selling price, apply use or rent restrictions on 
                certain units, or provide other financial assistance to 
                the owners of multifamily housing projects that are 
                acquired by a purchaser other than the Secretary at 
                foreclosure, or after sale by the Secretary, on terms 
                that will ensure that at least those units otherwise 
                required to receive project-based section 8 assistance 
                pursuant to subparagraph (A), (B), or (D) of paragraph 
                (1) are available to and affordable by low-income 
                persons for the remaining useful life of the project, 
                as defined by the Secretary.
                    ``(B) Definition.--A unit shall be considered 
                affordable under this paragraph if--
                            ``(i) for very low-income tenants, the rent 
                        for such unit does not exceed 30 percent of 50 
                        percent of the area median income, as 
                        determined by the Secretary, with adjustments 
                        for family size; and
                            ``(ii) for low-income tenants other than 
                        very low-income tenants, the rent for such unit 
                        does not exceed 30 percent of 80 percent of the 
                        area median income, as determined by the 
                        Secretary, with adjustments for family size.
                    ``(C) Very low-income tenants.--The Secretary shall 
                provide assistance under section 8 of the United States 
                Housing Act of 1937 to any very low-income tenant 
                currently residing in a unit otherwise required to 
                receive project-based rental assistance under section 
                8, pursuant to subparagraph (A), (B), or (D) of 
                paragraph (1), if the rents charged such tenants as a 
                result of actions taken pursuant to this paragraph 
                exceed the amount payable as rent under section 3(a) of 
                the United States Housing Act of 1937.
            ``(4) Transfer for use under other programs of the 
        secretary.--
                    ``(A) In general.--Enter into an agreement 
                providing for the transfer of a multifamily housing 
                project--
                            ``(i) to a public housing agency for use of 
                        the project as public housing; or
                            ``(ii) to an owner or another appropriate 
                        entity for use of the project under section 202 
                        of the Housing Act of 1959 or under section 811 
                        of the Cranston-Gonzalez National Affordable 
                        Housing Act.
                    ``(B) Requirements for agreement.--The agreement 
                described in subparagraph (A) shall--
                            ``(i) contain such terms, conditions, and 
                        limitations as the Secretary determines 
                        appropriate, including requirements to assure 
                        use of the project under the public housing, 
                        section 202, and section 811 programs; and
                            ``(ii) ensure that no current tenant will 
                        be displaced as a result of actions taken under 
                        this paragraph.
    ``(f) Other Assistance.--In addition to the actions required by 
subsection (e), the Secretary may take any of the following actions:
            ``(1) Short-term loans.--Provide short-term loans to 
        facilitate the sale of multifamily housing projects to 
        nonprofit organizations or to public agencies if--
                    ``(A) authority for such loans is provided in 
                advance in an appropriations Act;
                    ``(B) such loans are for a term of not more than 5 
                years;
                    ``(C) the Secretary is presented with satisfactory 
                documentation, evidencing a commitment of permanent 
                financing to replace such short-term loan, from a 
                lender who meets standards set forth by the Secretary; 
                and
                    ``(D) the terms of such loans are consistent with 
                prevailing practices in the marketplace or the 
                provision of such loans results in no cost to the 
                Government, as defined in section 502 of the 
                Congressional Budget Act.
            ``(2) Tenant-based assistance.--Make available tenant-based 
        assistance under section 8 of the United States Housing Act of 
        1937 to very low-income families that do not otherwise qualify 
        for project-based rental assistance.
            ``(3) Alternative uses.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, and subject to notice to and comment 
                from existing tenants, allow not more than--
                            ``(i) 5 percent of the total number of 
                        units in multifamily housing projects that are 
                        disposed of by the Secretary during each fiscal 
                        year to be made available for uses other than 
                        rental or cooperative housing, including low-
                        income homeownership opportunities, community 
                        space, office space for tenant or housing-
                        related service providers or security programs, 
                        or small business uses, if such uses benefit 
                        the tenants of the project; and
                            ``(ii) 5 percent of the total number of 
                        units in multifamily housing projects that are 
                        disposed of by the Secretary during each fiscal 
                        year to be used in any manner, if the Secretary 
                        and the unit of general local government or 
                        area-wide governing body determine that such 
                        use will further fair housing, community 
                        development, or neighborhood revitalization 
                        goals.
                    ``(B) Displacement protection.--The Secretary 
                shall--
                            ``(i) make available tenant-based 
                        assistance under section 8 of the United States 
                        Housing Act of 1937 to any tenant displaced as 
                        a result of actions taken by the Secretary 
                        pursuant to subparagraph (A); and
                            ``(ii) take such actions as the Secretary 
                        determines necessary to ensure the successful 
                        use of any tenant-based assistance provided 
                        under this subparagraph.
            ``(4) Authorization of use or rent restrictions in 
        unsubsidized projects.--In carrying out the goals specified in 
        subsection (a), the Secretary may require certain units in 
        unsubsidized projects upon disposition to contain use or rent 
        restrictions providing that such units will be available to and 
        affordable by very low-income persons for the remaining useful 
        life of the property, as defined by the Secretary.
    ``(g) Contract Requirements.--
            ``(1) Contract term.--
                    ``(A) In general.--Contracts for project-based 
                rental assistance under section 8 of the United States 
                Housing Act of 1937 provided pursuant to this section 
                shall be for a term of not more than 15 years; and
                    ``(B) Contract term of less than 15 years.--To the 
                extent that units receive project-based rental 
                assistance for a contract term of less than 15 years, 
                the Secretary shall require that rents charged to 
                tenants for such units shall not exceed the amount 
                payable for rent under section 3(a) of the United 
                States Housing Act of 1937 for a period of at least 15 
                years.
            ``(2) Contract rent.--
                    ``(A) In general.--The Secretary shall set contract 
                rents for section 8 project-based rental contracts 
                issued under this section at levels that, in 
                conjunction with other resources available to the 
                purchaser, provide for the necessary costs of 
                rehabilitation of such project and do not exceed the 
                percentage of the existing housing fair market rents 
                for the area, as determined by the Secretary under 
                section 8(c) of the United States Housing Act of 1937.
                    ``(B) Up-front grants.--If such an approach is 
                determined to be more cost-effective, the Secretary may 
                utilize the budget authority provided for project-based 
                section 8 contracts issued under this section to
                            ``(i) provide project-based section 8 
                        rental assistance; and
                            ``(ii) provide up-front grants for the 
                        necessary costs of rehabilitation.
    ``(h) Disposition Plan.--
            ``(1) In general.--Prior to the sale of a multifamily 
        housing project that is owned by the Secretary, the Secretary 
        shall develop a disposition plan for the project that specifies 
        the minimum terms and conditions of the Secretary for 
        disposition of the project, the initial sales price that is 
        acceptable to the Secretary, and the assistance that the 
        Secretary plans to make available to a prospective purchaser in 
        accordance with this section. The initial sales price shall 
        reflect the intended use of the property after sale.
            ``(2) Community and tenant input into disposition plans and 
        sales.--
                    ``(A) In general.--In carrying out this section, 
                the Secretary shall develop procedures to obtain 
                appropriate and timely input into disposition plans 
                from officials of the unit of general local government 
                affected, the community in which the project is 
                situated, and the tenants of the project.
                    ``(B) Tenant organizations.--The Secretary shall 
                develop procedures to facilitate, where feasible and 
                appropriate, the sale of multifamily housing projects 
                to existing tenant organizations with demonstrated 
                capacity or to public or nonprofit entities that 
                represent or are affiliated with existing tenant 
                organizations.
                    ``(C) Technical assistance.--
                            ``(i) In general.--To carry out the 
                        procedures developed under subparagraphs (A) 
                        and (B), the Secretary is authorized to provide 
                        technical assistance, directly or indirectly.
                            ``(ii) Technical assistance providers.--
                        Recipients of technical assistance funding 
                        under the Emergency Low Income Housing 
                        Preservation Act of 1987, the Low-Income 
                        Housing Preservation and Resident Homeownership 
                        Act of 1990, subtitle B of title IV of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act, shall be permitted to provide technical 
                        assistance to the extent of such funding under 
                        any of such programs or under this section, 
                        notwithstanding the source of funding.
                            ``(iii) Authorization of appropriations.--
                        There are authorized to be appropriated 
                        $5,000,000 to carry out this subparagraph. In 
                        addition, the Secretary is authorized to use 
                        amounts appropriated for technical assistance 
                        under the Emergency Low Income Housing 
                        Preservation Act of 1987, the Low-Income 
                        Housing Preservation and Resident Homeownership 
                        Act of 1990, subtitle B of title IV of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act, for the provision of technical assistance 
                        under this section.
    ``(i) Right of First Refusal.--
            ``(1) Procedure.--
                    ``(A) Notification by secretary of the acquisition 
                of title.--Not later than 30 days after the Secretary 
                acquires title to a multifamily housing project, the 
                Secretary shall notify the appropriate unit of general 
                local government and State agency or agencies 
                designated by the Governor of the acquisition of such 
                title.
                    ``(B) Expression of interest.--Not later than 45 
                days after receiving notification from the Secretary 
                under subparagraph (A), the unit of general local 
                government or designated State agency may submit to the 
                Secretary a preliminary expression of interest in the 
                project. The Secretary may take such actions as may be 
                necessary to require the unit of general local 
                government or designated State agency to substantiate 
                such interest.
                    ``(C) Timely expression of interest.--If the unit 
                of general local government or designated State agency 
                has expressed interest in the project before the 
                expiration of the 45-day period referred to in 
                subparagraph (B) and has substantiated such interest if 
                requested, the Secretary shall notify the unit of 
                general local government or designated State agency, 
                within a reasonable period of time, of the terms and 
                conditions of the disposition plan, in accordance with 
                subsection (h). The Secretary shall then give the unit 
                of general local government or designated State agency 
                not more than 90 days after the date of such 
                notification to make an offer to purchase the project.
                    ``(D) No timely expression of interest.--If the 
                unit of general local government or designated State 
                agency does not express interest before the expiration 
                of the 45-day period referred to in subparagraph (B), 
                or does not substantiate an expressed interest if 
                requested, the Secretary may offer the project for sale 
                to any interested person or entity.
            ``(2) Acceptance of offers.--If the Secretary has given the 
        unit of general local government or designated State agency 90 
        days to make an offer to purchase the project, the Secretary 
        shall accept an offer that complies with the terms and 
        conditions of the disposition plan. The Secretary may accept an 
        offer that does not comply with the terms and conditions of the 
        disposition plan if the Secretary determines that the offer 
        will further the goals specified in subsection (a) by actions 
        that include extension of the duration of low-income 
        affordability restrictions or otherwise restructuring the 
        transaction in a manner that enhances the long-term 
        affordability for low-income persons. The Secretary shall, in 
        particular, have discretion to reduce the initial sales price 
        in exchange for the extension of low-income affordability 
        restrictions beyond the period of assistance contemplated by 
        the attachment of assistance pursuant to subsection (e) or for 
        an increase in the number of units that are available to and 
        affordable by low-income families. If the Secretary and the 
        unit of general local government or designated State agency 
        cannot reach agreement within 90 days, the Secretary may offer 
        the project for sale to the general public.
            ``(3) Purchase by unit of general local government or 
        designated state agency.--Notwithstanding any other provision 
        of law, a unit of general local government (including a public 
        housing agency) or designated State agency may purchase 
        multifamily housing projects in accordance with this 
        subsection.
            ``(4) Applicability.--This subsection shall apply to 
        projects that are acquired on or after the effective date of 
        this subsection. With respect to projects acquired before such 
        effective date, the Secretary may apply--
                    ``(A) the requirements of paragraphs (2) and (3) of 
                section 203(e) as such paragraphs existed immediately 
                before the effective date of this subsection; or
                    ``(B) the requirements of paragraphs (1) and (2) of 
                this subsection, if the Secretary gives the unit of 
                general local government or designated State agency--
                            ``(i) 45 days to express interest in the 
                        project; and
                            ``(ii) if the unit of general local 
                        government or designated State agency expresses 
                        interest in the project before the expiration 
                        of the 45-day period, and substantiates such 
                        interest if requested, 90 days from the date of 
                        notification of the terms and conditions of the 
                        disposition plan to make an offer to purchase 
                        the project.
    ``(j) Displacement of Tenants and Relocation Assistance.--
            ``(1) In general.--Whenever tenants will be displaced as a 
        result of the demolition of, repairs to, or conversion in the 
        use of, a multifamily housing project that is owned by the 
        Secretary (or for which the Secretary is mortgagee in 
        possession), the Secretary shall identify tenants who will be 
        displaced, and shall notify all such tenants of their pending 
        displacement and of any relocation assistance that may be 
        available. In the case of a multifamily housing project that is 
        subject to a mortgage held by the Secretary, the Secretary 
        shall require the owner of the project to carry out the 
        requirements of this paragraph, if the Secretary has authorized 
        the demolition of, repairs to, or conversion in the use of such 
        multifamily housing project.
            ``(2) Rights of displaced tenants.--The Secretary shall 
        assure for any such tenant (who continues to meet applicable 
        qualification standards) the right--
                    ``(A) to return, whenever possible, to a repaired 
                unit;
                    ``(B) to occupy a unit in another multifamily 
                housing project owned by the Secretary;
                    ``(C) to obtain housing assistance under the United 
                States Housing Act of 1937; or
                    ``(D) to receive any other available relocation 
                assistance as the Secretary determines to be 
                appropriate.
    ``(k) Mortgage and Project Sales.--
            ``(1) In general.--The Secretary may not approve the sale 
        of any loan or mortgage held by the Secretary (including any 
        loan or mortgage owned by the Government National Mortgage 
        Association) on any subsidized project or formerly subsidized 
        project, unless such sale is made as part of a transaction that 
        will ensure that such project will continue to operate at least 
        until the maturity date of such loan or mortgage, in a manner 
        that will provide rental housing on terms at least as 
        advantageous to existing and future tenants as the terms 
        required by the program under which the loan or mortgage was 
        made or insured prior to the assignment of the loan or mortgage 
        on such project to the Secretary.
            ``(2) Sale of certain projects.--The Secretary may not 
        approve the sale of any subsidized project--
                    ``(A) that is subject to a mortgage held by the 
                Secretary; or
                    ``(B) if the sale transaction involves the 
                provision of any additional subsidy funds by the 
                Secretary or a recasting of the mortgage;
        unless such sale is made as part of a transaction that will 
        ensure that such project will continue to operate at least 
        until the maturity date of the loan or mortgage, in a manner 
        that will provide rental housing on terms at least as 
        advantageous to existing and future tenants as the terms 
        required by the program under which the loan or mortgage was 
        made or insured prior to the proposed sale of the project.
            ``(3) Mortgage sales to state and local governments.--
        Notwithstanding any provision of law that may require 
        competitive sales or bidding, the Secretary may carry out 
        negotiated sales of mortgages held by the Secretary that are 
        secured by subsidized, unsubsidized, or formerly subsidized 
        multifamily housing projects, without the competitive selection 
        of purchasers or intermediaries, to units of general local 
        government or State agencies, or groups of investors that 
        include at least 1 such unit of general local government or 
        State agency, if the negotiations are conducted with such 
        agencies, except that--
                    ``(A) the terms of any such sale shall include the 
                agreement of the purchasing agency or unit of local 
                government or State agency to act as mortgagee or owner 
                of a beneficial interest in such mortgages, in a manner 
                consistent with maintaining the projects that are 
                subject to such mortgages for occupancy by the general 
                tenant group intended to be served by the applicable 
                mortgage insurance program, including, to the extent 
                the Secretary determines appropriate, authorizing such 
                unit of local government or State agency to enforce the 
                provisions of any regulatory agreement or other program 
                requirements applicable to the related projects; and
                    ``(B) the sales prices for such mortgages shall be, 
                in the determination of the Secretary, the best prices 
                that may be obtained for such mortgages from a unit of 
                general local government or State agency, consistent 
                with the expectation and intention that the projects 
                financed will be retained for use under the applicable 
                mortgage insurance program for the life of the initial 
                mortgage insurance contract.
            ``(4) Sale of mortgages covering unsubsidized projects.--
        Notwithstanding any other provision of law, the Secretary may 
        sell mortgages held on unsubsidized projects on such terms and 
        conditions as the Secretary may prescribe.
    ``(l) Project-Based Rental Assistance for Term of Less Than 15 
Years.--Notwithstanding subsection (g), project-based rental assistance 
in connection with the disposition of a multifamily housing project may 
be provided for a contract term of less than 15 years if such 
assistance is provided--
            ``(1) under a contract authorized under section 6 of the 
        HUD Demonstration Act of 1993; and
            ``(2) pursuant to a disposition plan under this section for 
        a project that is determined by the Secretary to be otherwise 
        in compliance with this section.
    ``(m) Report to Congress.--Not later than June 1 of each year, the 
Secretary shall submit to the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Banking, Finance and Urban 
Affairs of the House of Representatives, a report describing the status 
of multifamily housing projects owned by or subject to mortgages held 
by the Secretary, on an aggregate basis, which highlights the 
differences, if any, between the subsidized and the unsubsidized 
inventory. The report shall include--
            ``(1) the average and median size of the projects;
            ``(2) the geographic locations of the projects, by State 
        and region;
            ``(3) the years during which projects were assigned to the 
        Department, and the average and median length of time that 
        projects remain in the HUD-held inventory;
            ``(4) the status of HUD-held mortgages;
            ``(5) the physical condition of the HUD-held and HUD-owned 
        inventory;
            ``(6) the occupancy profile of the projects, including the 
        income, family size, race, and ethnic origin of current 
        tenants, and the rents paid by such tenants;
            ``(7) the proportion of units that are vacant;
            ``(8) the number of projects for which the Secretary is 
        mortgagee in possession;
            ``(9) the number of projects sold in foreclosure sales;
            ``(10) the number of HUD-owned projects sold;
            ``(11) a description of actions undertaken pursuant to this 
        section, including--
                    ``(A) a comparison of results between actions taken 
                after the date of enactment of the Housing and 
                Community Development Act of 1993 and actions taken in 
                the years preceding such date of enactment;
                    ``(B) a description of any impediments to the 
                disposition or management of multifamily housing 
                projects, together with a recommendation of proposed 
                legislative or regulatory changes designed to 
                ameliorate such impediments;
                    ``(C) a description of actions taken to restructure 
                or commence foreclosure on delinquent multifamily 
                mortgages held by the Department; and
                    ``(D) a description of actions taken to monitor and 
                prevent the default of multifamily housing mortgages 
                held by the Federal Housing Administration;
            ``(12) a description of any of the functions performed in 
        connection with this section that are contracted out to public 
        or private entities or to States, including--
                    ``(A) the costs associated with such delegation;
                    ``(B) the implications of contracting out or 
                delegating such functions for current Department field 
                or regional personnel, including anticipated personnel 
                or work load reductions;
                    ``(C) necessary oversight required by Department 
                personnel, including anticipated personnel hours 
                devoted to such oversight;
                    ``(D) a description of any authority granted to 
                such public or private entities or States in 
                conjunction with the functions that have been delegated 
                or contracted out or that are not otherwise available 
                for use by Department personnel; and
                    ``(E) the extent to which such public or private 
                entities or States include tenants of multifamily 
                housing projects in the disposition planning for such 
                projects; and
            ``(13) a description of the activities carried out under 
        subsection (i) during the preceding year.''.
    (c) Effective Date.--The Secretary shall, by notice published in 
the Federal Register, which shall take effect upon publication, 
establish such requirements as may be necessary to implement the 
amendments made by this section. The notice shall invite public 
comments and, not later than 12 months after the date on which the 
notice is published, the Secretary shall issue final regulations based 
on the initial notice, taking into account any public comments 
received.

SEC. 102. REPEAL OF STATE AGENCY MULTIFAMILY PROPERTY DISPOSITION 
              DEMONSTRATION.

    Section 184 of the Housing and Community Development Act of 1987 
(12 U.S.C. 1701z-11 note) is hereby repealed.

SEC. 103. RTC MARKETING AND DISPOSITION OF MULTIFAMILY PROJECTS OWNED 
              BY HUD.

    (a) Authorization.--The Secretary may carry out a demonstration 
with not more than 50 unsubsidized multifamily housing projects owned 
by the Secretary, using the RTC for the marketing and disposition of 
the projects. Any such demonstration shall be carried out pursuant to 
an agreement between the RTC and the Secretary on such terms and 
conditions as are acceptable to the RTC and the Secretary. The RTC 
shall establish policies and procedures for marketing and disposition, 
subject to review and approval by the Secretary.
    (b) Rules Governing the Demonstration.--
            (1) In general.--Except as provided in paragraph (2), in 
        carrying out the provisions of this section, the RTC shall 
        dispose of unsubsidized multifamily housing projects pursuant 
        to the provisions of section 21A(c) of the Federal Home Loan 
        Bank Act.
            (2) Exception.--Notwithstanding paragraph (1), a very low-
        income tenant currently residing in a unit otherwise required 
        under subsection (e)(1)(D) of section 203 of the Housing and 
        Community Development Amendments of 1978 to receive project-
        based rental assistance under section 8, shall upon disposition 
        pay not more than the amount payable as rent under section 3(a) 
        of the United States Housing Act of 1937.
    (c) Determination of Projects Included.--In determining which 
projects to include in the demonstration, the Secretary and the RTC 
shall take into consideration--
            (1) the prior experience of the RTC in disposing of other 
        multifamily housing projects in the jurisdictions in which such 
        projects are located; and
            (2) such other factors as the Secretary and the RTC 
        determine to be appropriate.
    (d) Reimbursement.--The agreement entered into pursuant to 
subsection (a) shall provide that the Secretary shall reimburse the RTC 
for the direct costs associated with the demonstration, including the 
costs of administration and marketing, property management, and any 
repair and rehabilitation. The Secretary may use proceeds from the sale 
of the projects to reimburse the RTC for its costs.
    (e) Reports.--
            (1) Annual reports.--The Secretary and the RTC shall 
        jointly submit an annual report to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the Committee on 
        Banking, Finance and Urban Affairs of the House of 
        Representatives detailing the progress of the demonstration.
            (2) Final report.--Not later than 3 months after the 
        completion of the demonstration, the Secretary shall submit to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Banking, Finance and Urban Affairs 
        of the House of Representatives a report describing the results 
        of the demonstration and any recommendations for legislative 
        action.
    (f) Termination.--The demonstration under this section shall not 
extend beyond the termination date of the RTC.

SEC. 104. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS AND CERTAIN 
              MANAGING AGENTS OF MULTIFAMILY HOUSING PROJECTS.

    (a) Civil Money Penalties Against Multifamily Mortgagors.--Section 
537 of the National Housing Act (12 U.S.C. 1735f-15) is amended--
            (1) in subsection (b)(1), by inserting after ``mortgagor'' 
        the second place it appears the following: ``or general partner 
        of a partnership mortgagor'';
            (2) in subsection (c)--
                    (A) by striking the heading and inserting the 
                following:
    ``(c) Other Violations.--''; and
                    (B) in paragraph (1)--
                            (i) by striking ``The Secretary may'' and 
                        all that follows through the colon and 
                        inserting the following:
                    ``(A) Liable parties.--The Secretary may also 
                impose a civil money penalty under this section on--
                            ``(i) any mortgagor of a property that 
                        includes 5 or more living units and that has a 
                        mortgage insured, coinsured, or held pursuant 
                        to this Act;
                            ``(ii) the general partner of a partnership 
                        mortgagor of such property; or
                            ``(iii) any agent employed to manage the 
                        property that has an identity of interest with 
                        the mortgagor or the general partner of a 
                        partnership mortgagor of such property.
                    ``(B) Violations.--A penalty may be imposed under 
                this paragraph for knowingly and materially taking any 
                of the following actions:'';
                            (ii) in subparagraph (B), as redesignated, 
                        by redesignating subparagraphs (A) through (L) 
                        as clauses (i) through (xii), respectively; and
                            (iii) by adding after clause (xii), as 
                        redesignated, the following new clauses:
                            ``(xiii) Failure to maintain the premises, 
                        accommodations, and the grounds and equipment 
                        appurtenant thereto in good repair and 
                        condition in accordance with regulations and 
                        requirements of the Secretary, except that 
                        nothing in this clause shall have the effect of 
                        altering the provisions of an existing 
                        regulatory agreement or federally insured 
                        mortgage on the property.
                            ``(xiv) Failure, by a mortgagor or general 
                        partner of a partnership mortgagor, to provide 
                        management for the project that is acceptable 
                        to the Secretary pursuant to regulations and 
                        requirements of the Secretary.''; and
                            (iv) in the last sentence, by deleting ``of 
                        such agreement'' and inserting ``of this 
                        subsection'';
            (3) in subsection (d)(1)(B), by inserting after 
        ``mortgagor'' the following: ``, general partner of a 
        partnership mortgagor, or identity of interest agent employed 
        to manage the property,'';
            (4) in subsection (d), by adding at the end the following 
        new paragraph:
            ``(5) Payment of penalty.--No payment of a civil money 
        penalty levied under this section shall be payable out of 
        project income.'';
            (5) in subsection (e)(1), by deleting ``a mortgagor'' and 
        inserting ``an entity or person'';
            (6) in subsection (f), by inserting after ``mortgagor'' 
        each place such term appears the following: ``, general partner 
        of a partnership mortgagor, or identity of interest agent 
        employed to manage the property,'';
            (7) by striking the heading of subsection (f) and inserting 
        the following: ``Civil Money Penalties Against Multifamily 
        Mortgagors, General Partners of Partnership Mortgagors, and 
        Certain Managing Agents'';
            (8) in subsection (j), by striking ``all civil money'' and 
        all that follows through the period at the end and inserting 
        the following: ``the Secretary shall apply all civil money 
        penalties collected under this section, or any portion of such 
        penalties, to the fund established under section 201(j) of the 
        Housing and Community Development Amendments of 1978.''; and
            (9) by adding at the end the following new subsection:
    ``(k) Identity of Interest Managing Agent.--For purposes of this 
section, the term `identity of interest managing agent' means an 
ownership entity, or its general partner or partners, which has an 
ownership interest in and which exerts effective control over the 
property's ownership.''.
    (b) Implementation.--The Secretary shall implement the amendments 
made by this section by regulation issued after notice and opportunity 
for public comment. A proposed rule shall be published not later than 
March 1, 1994. The notice shall seek comments primarily as to the 
definition of the terms `ownership interest in' and `effective 
control', as such terms are used in the definition of identity of 
interest managing agent.
    (c) Applicability of Amendments.--The amendments made by subsection 
(a) shall apply only with respect to--
            (1) violations that occur on or after the effective date of 
        the final regulations implementing the amendments made by this 
        section; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary), any portion of a violation that occurs on or 
        after such date.

SEC. 105. MODELS FOR PROPERTY DISPOSITION.

    The Federal Housing Commissioner shall develop models which shall 
be designed to assist States and units of general local government in 
using other Federal programs for the purpose of acquiring, 
rehabilitating, or otherwise participating in--
            (1) the disposition, pursuant to section 203 of the Housing 
        and Community Development Amendments of 1978, of multifamily 
        housing projects owned by the Secretary; or
            (2) the sale, pursuant to section 203 of the Housing and 
        Community Development Amendments of 1978, of multifamily 
        housing projects subject to mortgages held by the Secretary.

SEC. 106. PREVENTING MORTGAGE DEFAULTS.

    (a) Multifamily Housing Planning and Investment Strategies.--
            (1) Preparation of assessments for independent entities.--
        Section 402(a) of the Housing and Community Development Act of 
        1992 (12 U.S.C. 1715-1a note) is amended by adding at the end 
        the following: ``The assessment shall be prepared by an entity 
        that does not have an identity of interest with the owner.''.
            (2) Timing of submission of needs assessments.--Section 
        402(b) of the Housing and Community Development Act of 1992 (12 
        U.S.C. 17152-1a note) is amended to read as follows:
    ``(b) Timing.--To ensure that assessments for all covered 
multifamily housing properties will be submitted on or before the 
conclusion of fiscal year 1997, the Secretary shall require the owners 
of such properties, including covered multifamily housing properties 
for the elderly, to submit the assessments for the properties in 
accordance with the following schedule:
            ``(1) For fiscal year 1994, 10 percent of the aggregate 
        number of such properties.
            ``(2) For each of fiscal years 1995, 1996, and 1997, an 
        additional 30 percent of the aggregate number of such 
        properties.''.
            (3) Review of comprehensive needs assessments.--Section 
        404(d) of the Housing and Community Development Act of 1992 (12 
        U.S.C. 1715-1a note) is amended to read as follows:
    ``(d) Review.--
            ``(1) In general.--The Secretary shall review each 
        comprehensive needs assessment for completeness and adequacy 
        before the expiration of the 90-day period beginning on the 
        receipt of the assessment.
            ``(2) Incomplete or inadequate assessments.--If the 
        Secretary determines that the assessment is substantially 
        incomplete or inadequate, the Secretary shall--
                    ``(A) provide the owner with a reasonable amount of 
                time to resubmit an amended assessment; and
                    ``(B) indicate to the owner the portion of the 
                original assessment requiring completion or other 
                revision.''.
            (4) Repeal of notice provision.--Section 404(f) of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 1715-
        1a note) is hereby repealed.
            (5) Funding.--Title IV of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1715z-1a note) is amended by 
        adding at the end the following new section:

``SEC. 409. FUNDING.

    ``(a) Allocation of Assistance.--Based upon needs identified in 
comprehensive needs assessments, and subject to otherwise applicable 
program requirements, including selection criteria, the Secretary may 
allocate the following assistance to owners of covered multifamily 
housing projects and may provide such assistance on a noncompetitive 
basis:
            ``(1) Operating assistance and capital improvement 
        assistance for troubled multifamily housing projects pursuant 
        to section 201 of the Housing and Community Development 
        Amendments of 1978, except for assistance set aside under 
        section 201(n)(1).
            ``(2) Loan management assistance available pursuant to 
        section 8 of the United States Housing Act of 1937.
    ``(b) Operating Assistance and Capital Improvement Assistance.--In 
providing assistance under subsection (a) the Secretary shall use the 
selection criteria set forth in section 201(n) of the Housing and 
Community Development Amendments.
    ``(c) Amount of Assistance.--The Secretary may fund all or only a 
portion of the needs identified in the capital needs assessment of an 
owner selected to receive assistance under this section.''.
    (b) Flexible Subsidy Program.--
            (1) Deletion of utility cost requirements.--Section 201(i) 
        of the Housing and Community Development Amendments of 1978 (12 
        U.S.C. 1715z-1a(i)) is hereby repealed.
            (2) Repeal of mandatory contribution from owner.--Section 
        201(k)(2) of the Housing and Community Development Amendments 
        of 1978 (12 U.S.C. 1715z-1a(k)(2)) is amended by striking ``, 
        except that'' and all that follows through ``such loan''.
            (3) Funding.--Section 201(n) of the Housing and Community 
        Development Amendments of 1978 (42 U.S.C. 1715z-1a(n)) is 
        amended to read as follows:
    ``(n)(1) For fiscal year 1994 only, in providing, and contracting 
to provide, assistance for capital improvements under this section, the 
Secretary shall set aside an amount, as determined by the Secretary, 
for projects that are eligible for incentives under section 224(b) of 
the Emergency Low Income Housing Preservation Act of 1987, as such 
section existed before the date of enactment of the Cranston-Gonzalez 
National Affordable Housing Act. The Secretary may make such assistance 
available on a noncompetitive basis.
    ``(2) Except as provided in paragraph (3), with respect to 
assistance under this section not set aside for projects under 
paragraph (1), the Secretary--
            ``(A) may award assistance on a noncompetitive basis; and
            ``(B) shall award assistance to eligible projects on the 
        basis of--
                    ``(i) the extent to which the project is physically 
                or financially troubled, as evidenced by the 
                comprehensive needs assessment submitted in accordance 
                with title IV of the Housing and Community Development 
                Act of 1992; and
                    ``(ii) the extent to which such assistance is 
                necessary and reasonable to prevent the default of 
                federally insured mortgages.
    ``(3) The Secretary may make exceptions to selection criteria set 
forth in paragraph (2) to permit the provision of assistance to 
eligible projects based upon--
            ``(A) the extent to which such assistance is necessary to 
        prevent the imminent foreclosure or default of a project whose 
        owner has not submitted a comprehensive needs assessment 
        pursuant to title IV of the Housing and Community Development 
        Act of 1992;
            ``(B) the extent to which the project presents an imminent 
        threat to the life, health, and safety of project residents; or
            ``(C) such other criteria as the Secretary may specify by 
        regulation or by notice printed in the Federal Register.
    ``(4) In providing assistance under this section, the Secretary 
shall take into consideration--
            ``(A) the extent to which there is evidence that there will 
        be significant opportunities for residents (including a 
        resident council or resident management corporation, as 
        appropriate) to be involved in the management of the project 
        (except that this paragraph shall have no application to 
        projects that are owned as cooperatives); and
            ``(B) the extent to which there is evidence that the 
        project owner has provided competent management and complied 
        with all regulatory and administrative instructions (including 
        such instructions with respect to the comprehensive servicing 
        of multifamily projects as the Secretary may issue).''.
    (c) Implementation and Effective Date for Subsections (a) and 
(b).--
            (1) In general.--The Secretary shall, by notice published 
        in the Federal Register, which shall take effect upon 
        publication, establish such requirements as may be necessary to 
        implement the amendments made by subsections (a) and (b). The 
        notice shall invite public comments and, not later than 12 
        months after the date on which the notice is published, the 
        Secretary shall issue final regulations based on the initial 
        notice, taking into account any public comments received.
            (2) Contents.--The notice and the regulations shall 
        describe the method by which the Secretary allocates assistance 
        in accordance with section 409 of the Housing and Community 
        Development Act of 1992 (as added by section 106(a) of this 
        Act) and paragraphs (2) and (3) of section 201(n) of the 
        Housing and Community Development Amendments of 1978.
            (3) Annual publications.--The Secretary shall publish 
        annually in the Federal Register--
                    (A) the method by which the Secretary determines 
                which capital needs assessments will be received each 
                year, in accordance with sections 402(b) and 404(d) of 
                the Housing and Community Development Act of 1992; and
                    (B) a list of all owners of covered multifamily 
                housing projects, by project, that have received 
                funding under--
                            (i) section 409 of the Housing and 
                        Community Development Act of 1992 (as added by 
                        section 106(a) of this Act); or
                            (ii) paragraphs (2) and (3) of section 
                        201(n) of the Housing and Community Development 
                        Amendments of 1978.
            (4) Effective date.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the amendments made by subsections (a) and (b) 
                shall take effect for amounts made available for fiscal 
                year 1995.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                section 201(n)(1) of the Housing and Community 
                Development Amendments of 1978 (as added by subsection 
                (b)(3)) shall take effect on the date of enactment of 
                this Act.
    (d) Streamlined Refinancing.--As soon as practicable, the Secretary 
shall implement a streamlined refinancing program under the authority 
provided in section 223 of the National Housing Act to prevent the 
default of mortgages insured by the FHA which cover multifamily housing 
projects, as defined in section 203(b) of the Housing and Community 
Development Amendments of 1978.
    (e) Partial Payments of Claim.--
            (1) In general.--Notwithstanding any other provision of 
        law, if the Secretary is requested to accept assignment of a 
        mortgage insured by the Secretary that covers a multifamily 
        housing project, as such term is defined in section 203(b) of 
        the Housing and Community Development Amendments of 1978, and 
        the Secretary determines that partial payment would be less 
        costly to the Federal Government than other reasonable 
        alternatives for maintaining the low-income character of the 
        project, the Secretary may request the mortgagee, in lieu of 
        assignment, to--
                    (A) accept partial payment of the claim under the 
                mortgage insurance contract; and
                    (B) recast the mortgage, under such terms and 
                conditions as the Secretary may determine.
            (2) Condition.--As a condition to a partial claim payment 
        under this section, the mortgagor shall agree to repay to the 
        Secretary the amount of such payment and such obligation shall 
        be secured by a second mortgage on the property on such terms 
        and conditions as the Secretary may determine.
    (f) GAO Study on Prevention of Default.--
            (1) In general.--Not later than June 1, 1994, the 
        Comptroller General of the United States shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Banking, Finance and Urban Affairs of the 
        House of Representatives a report that evaluates the adequacy 
        of loan loss reserves in the General Insurance and Special Risk 
        Insurance Funds and presents recommendations for the Secretary 
        to prevent losses from occurring.
            (2) Contents.--The report submitted under paragraph (1) 
        shall--
                    (A) evaluate the factors considered in arriving at 
                loss estimates and determine whether other factors 
                should be considered;
                    (B) determine the relative benefit of creating a 
                new, actuarially sound insurance fund for all new 
                multifamily housing insurance commitments; and
                    (C) recommend alternatives to the Secretary's 
                current procedures for preventing the future default of 
                multifamily housing project mortgages insured under 
                title II of the National Housing Act.
    (g) GAO Study on Actuarial Soundness of Certain Insurance 
Programs.--
            (1) In general.--Not later than June 1, 1994, the 
        Comptroller General of the United States shall submit to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on Banking, Finance and Urban Affairs of the 
        House of Representatives a report that evaluates, in connection 
        with the General Insurance Fund, the role and performance of 
        the nursing home, hospital, and retirement service center 
        insurance programs.
            (2) Contents.--The reports submitted under paragraph (1) 
        shall--
                    (A) evaluate the strategic importance of these 
                insurance programs to the mission of the FHA;
                    (B) evaluate the impact of these insurance programs 
                upon the financial performance of the General Insurance 
                Fund;
                    (C) assess the potential losses expected under 
                these programs through fiscal year 1999;
                    (D) evaluate the risk of these programs to the 
                General Insurance Fund in connection with changes in 
                national health care policy;
                    (E) assess the ability of the FHA to manage these 
                programs; and
                    (F) make recommendations for any necessary changes.
    (h) Annual Actuarial Review.--
            (1) Special risk insurance fund.--Section 238(c) of the 
        National Housing Act (12 U.S.C. 1715z-3(c)) is amended by 
        adding at the end the following new paragraph:
            ``(3) The Secretary shall undertake an annual review of the 
        actuarial soundness of each of the insurance programs 
        comprising the Special Risk Insurance Fund, and shall present 
        findings from such review to the Congress in the FHA Annual 
        Management Report.''.
            (2) General insurance fund.--Section 519 of the National 
        Housing Act (12 U.S.C. 1735c) is amended by adding at the end 
        the following new subsection:
    ``(g) Annual Actuarial Review.--The Secretary shall undertake an 
annual review of the actuarial soundness of each of the insurance 
programs comprising the General Insurance Fund, and shall present 
findings from such review to the Congress in the FHA Annual Management 
Report.''.
    (i) Alternative Uses for Prevention of Default.--
            (1) In general.--Subject to notice and comment from 
        existing tenants, to prevent the imminent default of a 
        multifamily housing project subject to a mortgage insured under 
        title II of the National Housing Act, the Secretary may 
        authorize the mortgagor to use the project for purposes not 
        contemplated by or permitted under the regulatory agreement, 
        if--
                    (A) such other uses are acceptable to the 
                Secretary;
                    (B) such other uses would be otherwise insurable 
                under title II of the National Housing Act;
                    (C) the outstanding principal balance on the 
                mortgage covering such project is not increased;
                    (D) any financial benefit accruing to the mortgagor 
                shall, subject to the discretion of the Secretary, be 
                applied to project reserves or project rehabilitation; 
                and
                    (E) such other use serves a public purpose.
            (2) Displacement protection.--The Secretary shall--
                    (A) make available tenant-based assistance under 
                section 8 of the United States Housing Act of 1937 to 
                any tenant displaced as a result of actions taken by 
                the Secretary pursuant to paragraph (1); and
                    (B) take such actions as the Secretary determines 
                necessary to ensure the successful use of any tenant-
                based assistance provided under this paragraph.
            (3) Implementation.--The Secretary shall, by notice 
        published in the Federal Register, which shall take effect upon 
        publication, establish such requirements as may be necessary to 
        implement the amendments made by this subsection. The notice 
        shall invite public comments and, not later than 12 months 
        after the date on which the notice is published, the Secretary 
        shall issue final regulations based on the initial notice, 
        taking into account any public comments received.
    (j) Mortgage Sale Demonstration.--The Secretary may carry out a 
demonstration to test the feasibility of restructuring and disposing of 
troubled multifamily mortgages held by the Secretary through the 
establishment of partnerships between public, private, and nonprofit 
entities.
    (k) National Interagency Task Force on Multifamily Housing.--
            (1) Functions.--Section 543(e)(1) of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1707 note) is 
        amended--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F) make available appropriate information to the 
                Department of Housing and Urban Development that will 
                assist in preventing the future default of multifamily 
                housing project mortgages insured under title II of the 
                National Housing Act.''.
            (2) Use of appropriations authority.--Section 543(h) of the 
        Housing and Community Development Act of 1992 is amended by 
        inserting after the first sentence the following: ``The 
        Secretary may use any non-Federal or private funding or may use 
        the authority provided for salaries and expenses in 
        appropriations Acts for activities carried out under this 
        section.

SEC. 107. INTEREST RATES ON ASSIGNED MORTGAGES.

    Section 7(i)(5) of the Department of Housing and Urban Development 
Act (42 U.S.C. 3535(i)(5)) is amended by striking the first semicolon, 
and all that follows through ``as determined by the Secretary''.

SEC. 108. AUTHORIZATION OF APPROPRIATIONS.

    (a) Special Risk Insurance Fund.--Section 238(b) of the National 
Housing Act (12 U.S.C. 1715z-3(b)) is amended by striking the fifth 
sentence.
    (b) General Insurance Fund.--Section 519 of the National Housing 
Act (12 U.S.C. 1735c) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) (as added by section 
        106(h)(2) of this Act) as subsection (f).
    (c) Multifamily Insurance Fund Appropriations.--Title V of the 
National Housing Act (12 U.S.C. 1731a et seq.) is amended by adding at 
the end the following new section:

``SEC. 541. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL AND SPECIAL 
              RISK INSURANCE FUNDS.

    ``There are authorized to be appropriated $350,000,000 for fiscal 
year 1994 and $360,500,000 for fiscal year 1995, to be allocated in any 
manner that the Secretary determines appropriate, for the following 
costs incurred in conjunction with programs authorized under the 
General Insurance Fund, as provided by section 519, and the Special 
Risk Insurance Fund, as provided by section 238:
            ``(1) The cost to the Government, as defined in section 502 
        of the Congressional Budget Act, of new insurance commitments.
            ``(2) The cost to the Government, as defined in section 502 
        of the Congressional Budget Act, of modifications to existing 
        loans, loan guarantees, or insurance commitments.
            ``(3) The cost to the Government, as defined in section 502 
        of the Congressional Budget Act, of loans provided under 
        section 203(f) of the Housing and Community Development 
        Amendments of 1978.
            ``(4) The costs of the rehabilitation of multifamily 
        housing projects (as defined in section 203(b) of the Housing 
        and Community Development Amendments of 1978) upon disposition 
        by the Secretary.''.

                 TITLE II--ENHANCED PROGRAM FLEXIBILITY

            Subtitle A--Office of Public and Indian Housing

SEC. 201. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

    (a) In General.--Section 24 of the United States Housing Act of 
1937 (42 U.S.C. 1437v) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) [RESERVED].'';
            (2) in subsection (c)(2), by striking ``$200,000'' and 
        inserting ``$500,000'';
            (3) in subsection (c)(3)--
                    (A) by redesignating subparagraphs (E) through (I) 
                as subparagraphs (F) through (J), respectively;
                    (B) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) planning for community service and support 
                service activities to be carried out by the public 
                housing agency, residents, members of the community, 
                and other persons and organizations willing to 
                contribute to the social, economic, or physical 
                improvement of the community (community service is a 
                required element of the revitalization program);''; and
                    (C) in subparagraph (H), as redesignated, by 
                striking ``designing a suitable replacement housing 
                plan,'' and inserting ``designing suitable relocation 
                and replacement housing plans,'';
            (4) in subsection (c)(4)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) a description of the community service and 
                support service planning activities to be carried out 
                by the public housing agency, residents, members of the 
                community, and other persons and organizations willing 
                to contribute to the social, economic, or physical 
                improvement of the community;'';
            (5) in subsection (c)(5)--
                    (A) by striking subparagraph (E) and redesignating 
                subparagraphs (F) and (G) as subparagraphs (E) and (F), 
                accordingly;
                    (B) in subparagraph (E), as redesignated, by 
                inserting before the semicolon ``, taking into account 
                the condition of the stock of the public housing agency 
                as a whole''; and
                    (C) by adding at the end the following:
        ``In making grants under this subsection, the Secretary may 
        select a lower-rated, approvable application over a higher-
        rated application to increase the national geographic diversity 
        among applications approved under this section.'';
            (6) in subsection (d)(2)--
                    (A) by redesignating subparagraphs (E) through (I) 
                as subparagraphs (G) through (K), respectively;
                    (B) by inserting after subparagraph (D) the 
                following new subparagraphs:
                    ``(E) community service activities to be carried 
                out by residents, members of the community, and other 
                persons willing to contribute to the social, economic, 
                or physical improvement of the community (community 
                service is a required element of the revitalization 
                program);
                    ``(F) replacement of public housing units;''; and
                    (C) in subparagraph (K), as redesignated--
                            (i) by striking ``15 percent'' and 
                        inserting ``20 percent''; and
                            (ii) by inserting before the period at the 
                        end the following: ``, except that an amount 
                        equal to 15 percent of the amount of any grant 
                        under this subsection used for support services 
                        shall be contributed from non-Federal sources 
                        (which contribution shall be in the form of 
                        cash, administrative costs, and the reasonable 
                        value of in-kind contributions and may include 
                        funding under title I of the Housing and 
                        Community Development Act of 1974)'';
            (7) in subsection (d)(3)--
                    (A) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (E) and (F), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
                    ``(D) a description of the community service and 
                support service activities to be carried out by the 
                public housing agency, residents, members of the 
                community, and other persons and organizations willing 
                to contribute to the social, economic, or physical 
                improvement of the community;'';
            (8) in subsection (d)(4)--
                    (A) in subparagraph (D), by inserting ``(with 
                assistance from the Department of Housing and Urban 
                Development if necessary)'' after ``applicant'';
                    (B) by striking subparagraph (E) and redesignating 
                subparagraphs (F) and (G) as subparagraphs (E) and (F), 
                respectively;
                    (C) in subparagraph (E), as redesignated, by 
                inserting before the semicolon ``, taking into account 
                the condition of the applicant's stock as a whole''; 
                and
                    (D) by adding at the end the following:
        ``In making grants under this subsection, the Secretary may 
        select a lower-rated, approvable application over a higher-
        rated application to increase the national geographic diversity 
        among applications approved under this section.'';
            (9) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(3) Demolition and replacement.--
                    ``(A) In general.--Notwithstanding any other 
                applicable law or regulation, a revitalization plan 
                under this section may include demolition and 
                replacement on site or in the same neighborhood if the 
                number of replacement units provided in the same 
                neighborhood is fewer than the number of units 
                demolished as a result of the revitalization effort.
                    ``(B) Tenant-based assistance.--Notwithstanding the 
                limitations contained in subparagraph (A)(v) or (C) of 
                section 18(b)(3), a public housing agency may replace 
                not more than one-third of the units demolished or 
                disposed of through a revitalization project under this 
                section with tenant-based assistance under section 
                8.'';
            (10) in subsection (h)--
                    (A) by amending paragraph (5) to read as follows:
            ``(5) Severely distressed public housing.--The term 
        `severely distressed public housing' means a public housing 
        project or a building in a project--
                    ``(A) that requires major redesign, reconstruction, 
                redevelopment, or partial or total demolition to 
                correct serious deficiencies in the original design 
                (including inappropriately high population density), 
                deferred maintenance, physical deterioration or 
                obsolescence of major systems, and other deficiencies 
                in the physical plant of the project; and
                    ``(B) that either--
                            ``(i)(I) is occupied predominantly by 
                        families with children that have extremely low 
                        incomes, high rates of unemployment, and 
                        extensive dependency on various forms of public 
                        assistance; and
                            ``(II) has high rates of vandalism and 
                        criminal activity (including drug-related 
                        criminal activity); or
                            ``(ii) that has a vacancy rate, as 
                        determined by the Secretary, of 50 percent or 
                        more;
                    ``(C) that cannot be revitalized through assistance 
                under other programs, such as the programs under 
                sections 9 and 14, or through other administrative 
                means because of the inadequacy of available funds; and
                    ``(D) that, in the case of individual buildings, 
                the building is, in the Secretary's determination, 
                sufficiently separable from the remainder of the 
                project to make use of the building feasible for 
                purposes of this section.''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(6) Community service.--The term `community service' 
        means services provided on a volunteer or limited stipend basis 
        for the social, economic, or physical improvement of the 
        community to be served.
            ``(7) Support services.--The term `support services' 
        includes all activities designed to lead toward upward 
        mobility, self-sufficiency, and improved quality of life for 
        the residents of the project, such as literacy training, job 
        training, day care, and economic development. Such activities 
        may allow for the participation of residents of the 
        neighborhood.''; and
            (11) in subsection (i)--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively.
    (b) Conforming Amendment.--The first sentence of section 25(m)(1) 
of the United States Housing Act of 1937 (42 U.S.C. 1437w(m)(1)) is 
amended to read as follows:
            ``(1) The term `eligible housing' means a public housing 
        project, or one or more buildings within a project, that is 
        owned or operated by a public housing agency that has been 
        troubled for not less than 3 years and that, as determined by 
        the Secretary, has failed to make substantial progress toward 
        effective management.''.
    (c) Use of Tenant-Based Assistance for Replacement Housing.--
Section 18(b)(3)(C)(i) of the United States Housing Act of 1937 (42 
U.S.C. 1437p(b)(3)(C)(i)) is amended by striking ``15-year''.
    (d) Replacement Housing Outside the Jurisdiction of the PHA.--
Section 18(b)(3) of the United States Housing Act of 1937 (42 U.S.C. 
1437p(b)(3)), as amended by subsection (c), is amended--
            (1) by redesignating subparagraphs (D) through (H) as 
        subparagraphs (E) through (I), respectively; and
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) may provide that all or part of such additional 
        dwelling units may be located outside of the jurisdiction of 
        the public housing agency (the `original agency') if--
                    ``(i) the location is in the same housing market 
                area as the original agency, as determined by the 
                Secretary;
                    ``(ii) the plan contains an agreement between the 
                original agency and the public housing agency in the 
                alternate location or other public or private entity 
                that will be responsible for providing the additional 
                units in the alternate location (`alternate agency or 
                entity') that the alternate agency or entity will, with 
                respect to the dwelling units involved--
                            ``(I) provide the dwelling units in 
                        accordance with subparagraph (A);
                            ``(II) complete the plan on schedule in 
                        accordance with subparagraph (F);
                            ``(III) meet the requirements of 
                        subparagraph (G) and the maximum rent 
                        provisions of subparagraph (H); and
                            ``(IV) not impose a local residency 
                        preference on any resident of the jurisdiction 
                        of the original agency for purposes of 
                        admission to any such units; and
                    ``(iii) the arrangement is approved by the unit of 
                general local government for the jurisdiction in which 
                the additional units will be located;''.

SEC. 202. DISALLOWANCE OF EARNED INCOME FOR RESIDENTS WHO OBTAIN 
              EMPLOYMENT.

    (a) In General.--Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a) is amended--
            (1) by striking the undesignated paragraph at the end of 
        subsection (c)(3) (as added by section 515(b) of the Cranston-
        Gonzalez National Affordable Housing Act); and
            (2) by adding at the end the following new subsection:
    ``(d) Disallowance of Earned Income From Public Housing Rent 
Determinations.--Notwithstanding any other provision of law, the rent 
payable under subsection (a) for any public housing unit by a family 
whose income increases as a result of employment of a member of the 
family who was previously unemployed for one or more years (including a 
family whose income increases as a result of the participation of a 
family member in the Family Self-Sufficiency program or other job 
training program) shall not be increased for a period of 18 months, 
beginning with the commencement of employment as a result of the 
increased income due to such employment. After the expiration of the 
18-month period, rent increases due to the continued employment of such 
family member shall be limited to 10 percent per year. In no case shall 
rent exceed the amount determined under subsection (a).''.
    (b) Applicability of Amendment.--Notwithstanding the amendment made 
by subsection (a), any resident of public housing participating in the 
program under the authority contained in the undesignated paragraph at 
the end of section 3(c)(3) of the United States Housing Act of 1937 as 
such paragraph existed before the date of enactment of this subsection 
shall continue to be governed by such authority.

SEC. 203. CEILING RENTS BASED ON REASONABLE RENTAL VALUE.

    (a) Amendment.--Section 3(a)(2)(A)(iii) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(a)(2)(A)(iii)) is amended to read 
as follows:
            ``(iii) is not less than the reasonable rental value of the 
        unit, as determined by the Secretary.''.
    (b) Regulations.--
            (1) In general.--The Secretary shall, by regulation, after 
        notice and an opportunity for public comment, establish such 
        requirements as may be necessary to carry out the provisions of 
        section 3(a)(2)(A) of the United States Housing Act of 1937, as 
        amended by subsection (a).
            (2) Applicability.--Except in the case of an Indian housing 
        authority, the regulations issued pursuant to paragraph (1) 
        shall not apply to scattered site public housing units.
            (3) Transition rule.--Prior to the issuance of final 
        regulations under paragraph (1), a public housing agency may 
        implement ceiling rents which shall be--
                    (A) determined in accordance with section 
                3(a)(2)(A) of the United States Housing Act of 1937, as 
                such section existed before the date of enactment of 
                this Act; or
                    (B) equal to the 95th percentile of the rent paid 
                for a unit of comparable size by tenants in the same 
                project or a group of comparable projects totaling 50 
                units or more.

SEC. 204. RESIDENT MANAGEMENT PROGRAM.

    Section 20(f) of the United States Housing Act of 1937 (42 U.S.C. 
1437r(f)) is amended--
            (1) in paragraph (2), by striking ``$100,000'' and 
        inserting ``$250,000''; and
            (2) in paragraph (3), by adding at the end the following: 
        ``The Secretary may use not more than 10 percent of the amounts 
        made available under this subsection for program monitoring and 
        evaluation, technical assistance, and information 
        dissemination.''.

        Subtitle B--Office of Community Planning and Development

SEC. 211. ECONOMIC DEVELOPMENT INITIATIVE.

    (a) Section 108 Eligible Activities.--
            (1) In general.--Section 108(a) of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5308(a)) is 
        amended--
                    (A) in the first sentence--
                            (i) by striking ``or'' after ``section 
                        105(a);''; and
                            (ii) by inserting before the period the 
                        following: ``; (5) the acquisition, 
                        construction, reconstruction, or installation 
                        of public facilities (except for buildings for 
                        the general conduct of government); or (6) in 
                        the case of colonias, public works and site or 
                        other improvements''; and
                    (B) by striking the second sentence and inserting 
                the following: ``A guarantee under this section 
                (including a guarantee combined with a grant under 
                subsection (q)) may be used to assist a grantee in 
                obtaining financing only if the grantee has made 
                efforts to obtain the financing without the use of the 
                guarantee (and, if applicable, the grant) and cannot 
                complete the financing consistent with the timely 
                execution of the proposed activities and projects 
                without the guarantee (or, if applicable, the 
                grant).''.
            (2) Definition.--Section 102(a) of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5302(a)) is 
        amended by adding at the end the following new paragraph:
            ``(24) The term `colonia' means any identifiable community 
        that--
                    ``(A) is in the State of Arizona, California, New 
                Mexico, or Texas;
                    ``(B) is in the United States-Mexico border region;
                    ``(C) is determined to be a colonia on the basis of 
                objective criteria, including lack of potable water 
                supply, lack of adequate sewage systems, and lack of 
                decent, safe, and sanitary housing; and
                    ``(D) was in existence as a colonia before the date 
                of the enactment of the Cranston-Gonzalez National 
                Affordable Housing Act.''.
    (b) Economic Development Grants.--
            (1) In general.--Section 108 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5308) is amended by adding 
        at the end the following new subsection:
    ``(q) Economic Development Grants.--
            ``(1) Authorization.--The Secretary may make grants in 
        connection with notes or other obligations guaranteed under 
        this section to eligible public entities for the purpose of 
        enhancing the security of loans guaranteed under this section 
        or improving the viability of projects financed with loans 
        guaranteed under this section.
            ``(2) Eligible activities.--Assistance under this 
        subsection may be used for the purposes of and in conjunction 
        with projects and activities assisted under subsection (a).
            ``(3) Applications.--Applications for assistance under this 
        subsection shall be submitted by eligible public entities in 
        the form and in accordance with the procedures established by 
        the Secretary. Eligible public entities may apply for grants 
        only in conjunction with a request for guarantee under 
        subsection (a).
            ``(4) Selection criteria.--The Secretary shall establish 
        criteria for awarding assistance under this subsection. Such 
        criteria shall include--
                    ``(A) the extent of need for such assistance;
                    ``(B) the level of distress in the community to be 
                served and in the jurisdiction applying for assistance;
                    ``(C) the quality of the plan proposed and the 
                capacity or potential capacity of the applicant to 
                successfully carry out the plan; and
                    ``(D) such other factors as the Secretary 
                determines to be appropriate.''.
            (2) Conforming amendment.--Title I of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5301 et seq.) is 
        amended--
                    (A) in section 101(c) in the second sentence, by 
                inserting ``or a grant'' after ``guarantee''; and
                    (B) in section 104(b)(3), by inserting ``or a 
                grant'' after ``guarantee''.
    (c) Use of UDAG Recaptures.--Section 119(o) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5318(o)) is amended by 
inserting before the period the following: ``, except that amounts 
available to the Secretary for use under this subsection as of October 
1, 1993, and amounts released to the Secretary pursuant to subsection 
(t) may be used to provide grants under section 108(q).''.
    (d) UDAG Amnesty Program.--
            (1) Amendment.--Section 119 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5318) is amended by adding 
        at the end the following new subsection:
    ``(t) UDAG Amnesty Program.--If a grant or a portion of a grant 
under this section remains unexpended as of the issuance of a notice 
implementing this subsection, the grantee may enter into an agreement, 
as provided under this subsection, with the Secretary to receive a 
percentage of the grant amount and relinquish all claims to the balance 
of the grant within 90 days of the issuance of notice implementing this 
subsection (or such later date as the Secretary may approve). The 
Secretary shall not recapture any funds obligated pursuant to this 
section during a period beginning on the date of enactment of the 
Housing and Community Development Act of 1993 until 90 days after the 
issuance of a notice implementing this subsection. A grantee may 
receive as a grant under this subsection--
            ``(1) 33 percent of such unexpended amounts if--
                    ``(A) the grantee agrees to expend not less than 
                one-half of the amount received for activities 
                authorized pursuant to section 108(q) and to expend 
                such funds in conjunction with a loan guarantee made 
                under section 108 at least equal to twice the amount of 
                the funds received; and
                    ``(B)(i) the remainder of the amount received is 
                used for economic development activities eligible under 
                title I of this Act; and
                    ``(ii) except when waived by the Secretary in the 
                case of a severely distressed jurisdiction, not more 
                than one-half of the costs of activities under 
                subparagraph (B) are derived from such unexpended 
                amounts; or
            ``(2) 25 percent of such unexpended amounts if--
                    ``(A) the grantee agrees to expend such funds for 
                economic development activities eligible under title I 
                of this Act; and
                    ``(B) except when waived by the Secretary in the 
                case of a severely distressed jurisdiction, not more 
                than one-half of the costs of such activities are 
                derived from such unexpended amount.''.
            (2) Implementation.--Notwithstanding subsection (f), not 
        later than 10 days after the date of enactment of this Act, the 
        Secretary shall, by notice published in the Federal Register, 
        which shall take effect upon publication, establish such 
        requirements as may be necessary to implement the amendments 
        made by this subsection.
    (e) Guarantee of Obligations Backed by Section 108 Loans.--Section 
108 of the Housing and Community Development Act of 1974 (42 U.S.C. 
5308), as amended by subsection (b), is amended by adding at the end 
the following new subsection:
    ``(r) Guarantee of Obligations Backed by Section 108 Loans.--
            ``(1) Authorization.--The Secretary may, upon such terms 
        and conditions as the Secretary deems appropriate, guarantee 
        the timely payment of the principal of and interest on trust 
        certificates or other obligations that--
                    ``(A) are offered by the Secretary, or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary; and
                    ``(B) are based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed by 
                the Secretary under this section.
            ``(2) Full faith and credit of the united states.--
        Subsection (f) shall apply to any guarantee under this 
        subsection.
            ``(3) Subrogation.--If the Secretary pays a claim under a 
        guarantee issued under this section, the Secretary shall be 
        subrogated fully to the rights satisfied by such payment.
            ``(4) Powers of the secretary.--No Federal, State, or local 
        law shall preclude or limit the exercise by the Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates, 
                and other obligations guaranteed under this section 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                    ``(B) the right to enforce by any means deemed 
                appropriate by the Secretary any such contract; and
                    ``(C) the Secretary's ownership rights, as 
                applicable, in notes, certificates, or other 
                obligations guaranteed under this section, or 
                constituting the trust or pool against which trust 
                certificates or other obligations guaranteed under this 
                section are offered.''.
    (f) Effective Date.--The Secretary shall, by notice published in 
the Federal Register, which shall take effect upon publication, 
establish such requirements as may be necessary to implement the 
amendments made by this section. The notice shall invite public 
comments and, not later than 12 months after the date on which the 
notice is published, the Secretary shall issue final regulations based 
on the initial notice, taking into account any public comments 
received.

SEC. 212. HOME INVESTMENT PARTNERSHIPS.

    (a) Participation by State Agencies or Instrumentalities.--Section 
104(2) of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12704(2)) is amended by inserting before the period at the end 
the following: ``, or any agency or instrumentality thereof that is 
established pursuant to legislation and designated by the chief 
executive to act on behalf of the State with regard to the provisions 
of this Act''.
    (b) Simplify Program-Wide Income Targeting for Home Rental 
Housing.--Section 214(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12744(1)) is amended by striking ``such funds 
are invested with respect to dwelling units that are occupied by'' each 
place such term appears and inserting ``(i) the families receiving such 
rental assistance are, or (ii) the dwelling units assisted with such 
funds are occupied by'' in each such place.
    (c) Remove First-Time Homebuyer Limitation for Home Units.--Section 
215(b) of the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12745(b)) is amended by striking paragraph (3) and redesignating 
paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
    (d) Simplify Resale Provisions.--Section 215(b)(3)(B) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12745(b)(4)(B)), as redesignated by subsection (c), is amended by 
striking ``subsection'' and inserting ``title''.
    (e) Stabilization of Home Funding Thresholds.--The Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12701 et seq.) is 
amended--
            (1) in section 216, by striking paragraph (10);
            (2) in section 217(b), by striking paragraph (4);
            (3) in section 217(b)(3)--
                    (A) in the first sentence, by striking ``only those 
                jurisdictions'' and all that follows through 
                ``allocation'' and inserting ``jurisdictions that are 
                not participating jurisdictions that are allocated an 
                amount of $500,000 or more and jurisdictions that are 
                participating jurisdictions shall receive an 
                allocation''; and
                    (B) in the last sentence, by striking ``, except as 
                provided in paragraph (4)''; and
            (4) in section 216--
                    (A) in paragraph (3)(A), by striking ``Except as 
                provided in paragraph (10), a jurisdiction'' and 
                inserting ``A jurisdiction''; and
                    (B) in paragraph (9)(B), by striking ``, except as 
                provided in paragraph (10)''.
    (f) Comprehensive Affordable Housing Strategy.--
            (1) HOME program.--Section 218(d) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12748(d)) is amended 
        in the first sentence, by inserting ``that it is following a 
        current housing affordability strategy that has been approved 
        by the Secretary in accordance with section 105, and'' after 
        ``certification''.
            (2) Homeless assistance programs.--Section 401 of the 
        Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361) 
        is amended to read as follows:

``SEC. 401. HOUSING AFFORDABILITY STRATEGY.

    ``(a) Requirement To Follow a CHAS.--Assistance may be made 
available under subtitle B to metropolitan cities, urban counties, and 
States receiving a formula amount under section 413, only if the 
jurisdiction certifies that it is following a current housing 
affordability strategy that has been approved by the Secretary in 
accordance with section 105 of the Cranston-Gonzalez National 
Affordable Housing Act.
    ``(b) Requirement for Consistency With CHAS.--Assistance may be 
made available under this title only if the application contains a 
certification that the proposed project or activities are consistent 
with the housing affordability strategy of the State or unit of general 
local government in which the project is located. The certification 
shall be from the public official responsible for submitting the 
strategy for the jurisdiction.''.
            (3) Conforming changes.--Title IV of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11361 et seq.) is 
        amended by striking sections 426(a)(2)(F), 434(a)(10), and 
        454(b)(9).
    (g) HOME Matching Requirements.--Section 220(a) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12750(a)) is 
amended to read as follows:
    ``(a) Contribution.--Each participating jurisdiction shall make 
contributions to housing that qualifies as affordable housing under 
this title that total, throughout a fiscal year, not less than 25 
percent of the funds drawn from the jurisdiction's HOME Investment 
Trust Fund in that fiscal year. Such contribution shall be in addition 
to any amounts made available under section 216(3)(A)(ii).''.
    (h) Separate Audit Requirement for the HOME Program.--Section 283 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
12833) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 283. AUDITS BY THE COMPTROLLER GENERAL.'';

            (2) by striking subsection (a);
            (3) in subsection (b)--
                    (A) by striking ``(b) Audits by the Comptroller 
                General.--''; and
                    (B) by redesignating paragraphs (1) and (2) as 
                subsections (a) and (b), respectively; and
            (4) in subsection (a), as redesignated by paragraph (3), by 
        striking the second sentence.
    (i) Home Environmental Review Amendments.--Section 288 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12838) is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking 
                ``participating jurisdictions'' and inserting 
                ``jurisdictions, Indian tribes, or insular areas''; and
                    (B) by adding at the end the following: ``The 
                regulations shall--
            ``(1) provide for the monitoring of environmental reviews 
        performed under this section;
            ``(2) at the discretion of the Secretary, facilitate 
        training for the performance of such reviews; and
            ``(3) establish criteria for the suspension or termination 
        of the assumption under this section.
The Secretary's duty under this subsection shall not be construed to 
limit any responsibility assumed by a State or unit of general local 
government with respect to any particular release of funds.'';
            (2) in subsection (b) in the first sentence, by striking 
        ``participating jurisdiction'' and inserting ``jurisdiction, 
        Indian tribe, or insular area'';
            (3) in subsection (c)(4), by striking ``participating 
        jurisdiction'' and inserting ``jurisdiction, Indian tribe, or 
        insular area''; and
            (4) in subsection (d), by striking ``Assistance to a 
        State.--In the case of assistance to States'' and inserting the 
        following: ``Assistance to Units of General Local Government 
        From a State.--In the case of assistance to units of general 
        local government from a State''.
    (j) Use of CDBG Funds for Home Administrative Expenses.--Section 
105(a)(13) of the Housing and Community Development Act of 1974 (42 
U.S.C. 5305(a)(13)) is amended by inserting after ``charges related 
to'' the following: ``(A) administering the HOME program under title II 
of the Cranston-Gonzalez National Affordable Housing Act; and (B)''.
    (k) Project Delivery Costs.--Section 105(a)(21) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5305(a)(21)) is amended--
            (1) by inserting ``in connection with tenant-based 
        assistance and affordable housing projects assisted under title 
        II of the Cranston-Gonzalez National Affordable Housing Act'' 
        after ``housing counseling''; and
            (2) by striking ``authorized'' and all that follows through 
        ``any law'' and inserting ``assisted under title II of the 
        Cranston-Gonzalez National Affordable Housing Act''.

SEC. 213. HOPE MATCH REQUIREMENT.

    Section 443(c)(1) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12893(c)(1)) is amended by striking ``33'' and 
inserting ``25''.

SEC. 214. FLEXIBILITY OF CDBG PROGRAM FOR DISASTER AREAS.

    Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended by adding at the end the following new 
section:

``SEC. 122. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.

    ``For the duration of time during which an area has been declared a 
disaster area by the President under title IV of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act, the Secretary may suspend 
all requirements for purposes of assistance under section 106 for that 
area, except for those related to public notice of funding 
availability, nondiscrimination, fair housing, labor standards, 
environmental standards, and requirements that activities benefit 
persons of low- and moderate-income.''.

SEC. 215. FLEXIBILITY OF HOME PROGRAM FOR DISASTER AREAS.

    Title II of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12721 et seq.) is amended by adding at the end the following 
new section:

``SEC. 290. SUSPENSION OF REQUIREMENTS FOR DISASTER AREAS.

    ``For the duration of time during which an area has been declared a 
disaster area by the President under title IV of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act, the Secretary may suspend 
all requirements for purposes of assistance under this title for that 
area, except for those related to public notice of funding 
availability, nondiscrimination, fair housing, labor standards, 
environmental standards, and low-income housing affordability.''.

            Subtitle C--Community Partnerships Against Crime

SEC. 221. COMPAC PROGRAM.

    (a) Conforming Provisions.--Section 5001 of the Anti-Drug Abuse Act 
of 1988 (42 U.S.C. 11901) is amended in the table of contents--
            (1) by striking the item relating to the heading for 
        chapter 2 and inserting the following:

          ``Chapter 2--Community Partnerships Against Crime'';

            (2) by striking the item relating to section 5122 and 
        inserting the following:

``Sec. 5122. Purposes.'';
        and
            (3) by adding the following after the item relating to 
        section 5130:

``Sec. 5131. Technical assistance.''.
    (b) Short Title, Purposes, and Authority To Make Grants.--The 
Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
11901 et seq.) is amended by striking the chapter heading for chapter 
2, and by striking sections 5121, 5122, and 5123 and inserting the 
following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1993'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) improve the quality of life for law-abiding public 
        housing residents by reducing the levels of fear, violence, and 
        crime in their communities;
            ``(2) expand and enhance the Federal Government's 
        commitment to eliminating crime in public housing;
            ``(3) broaden the scope of the Public and Assisted Housing 
        Drug Elimination Act of 1990 to apply to all types of crime, 
        and not simply crime that is drug-related;
            ``(4) target opportunities for long-term commitments of 
        funding primarily to public housing agencies with serious crime 
        problems;
            ``(5) encourage the involvement of a broad range of 
        community-based groups, and residents of neighboring housing 
        that is owned or assisted by the Secretary, in the development 
        and implementation of anti-crime plans;
            ``(6) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving;
            ``(7) provide training, information services, and other 
        technical assistance to program participants; and
            ``(8) establish a standardized assessment system to 
        evaluate need among public housing agencies, and to measure 
        progress in reaching crime reduction goals.

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``The Secretary of Housing and Urban Development, in accordance 
with the provisions of this chapter, may make grants, for use in 
eliminating crime in and around public and other federally assisted 
low-income housing projects (1) to public housing agencies (including 
Indian housing authorities), and (2) to private, for profit, and 
nonprofit owners of federally assisted low-income housing. In designing 
the program, the Secretary shall consult with the Attorney General.''.
    (c) Eligible Activities.--Section 5124(a) of the Public and 
Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11903(a)) is 
amended--
            (1) in the introductory material preceding paragraph (1), 
        by inserting ``and around'' after ``used in'';
            (2) in paragraph (3), by inserting ``, such as fencing, 
        lighting, locking, and surveillance systems'' before the 
        semicolon;
            (3) in paragraph (4), by striking subparagraph (A) and 
        inserting the following new subparagraph:
                    ``(A) to investigate crime; and'';
            (4) in paragraph (6)--
                    (A) by striking ``in and around public or other 
                federally assisted low-income housing projects''; and
                    (B) by striking ``and'' after the semicolon;
            (5) in paragraph (7)--
                    (A) by striking ``where a public housing agency 
                receives a grant,'';
                    (B) by striking ``drug abuse'' and inserting 
                ``crime''; and
                    (C) by striking the period at the end and inserting 
                a semicolon; and
            (6) by adding at the end the following new paragraphs:
            ``(8) the employment or utilization of one or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community policing 
        involving interaction with members of the community on 
        proactive crime control and prevention;
            ``(9) youth initiatives, such as activities involving 
        training, education, after school programs, cultural programs, 
        recreation and sports, career planning, and entrepreneurship 
        and employment; and
            ``(10) resident service programs, such as job training, 
        education programs, drug and alcohol treatment, and other 
        appropriate social services that address the contributing 
        factors of crime.''.
    (d) Applications.--Section 5125 of the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11904) is amended--
            (1) in subsection (a)--
                    (A) by striking ``To receive a grant'' and 
                inserting the following:
            ``(1) Applications.--To receive a grant'';
                    (B) in the second sentence, by striking ``drug-
                related crime on the premises of'' and inserting the 
                following: ``crime in and around''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(2) One-year renewable grants.--
                    ``(A) In general.--Eligible applicants may submit 
                an application for a 1-year grant under this chapter 
                that, subject to the availability of appropriated 
                amounts, shall be renewed annually for a period of not 
                more than 4 years, if the Secretary finds, after an 
                annual or more frequent performance review, that the 
                public housing agency is performing under the terms of 
                the grant and applicable laws in a satisfactory manner 
                and meets such other requirements as the Secretary may 
                prescribe.
                    ``(B) Preference.--The Secretary shall accord a 
                preference to applicants for grants under this 
                paragraph if the grant is to be used to continue or 
                expand activities eligible for assistance under this 
                chapter that have received previous assistance either 
                under this chapter, as it existed prior to the 
                enactment of the Housing and Community Development Act 
                of 1993, or under section 14 of the United States 
                Housing Act of 1937. Such preference shall not preclude 
                the selection by the Secretary of other meritorious 
                applications, particularly applications which address 
                urgent or severe crime problems or which demonstrate 
                especially promising approaches to reducing crime. Such 
                preference shall not be construed to require 
                continuation of activities determined by the Secretary 
                to be unworthy of continuation.
            ``(3) Public housing agencies that have especially severe 
        crime problems.--The Secretary shall, by regulation issued 
        after notice and opportunity for public comment, set forth 
        criteria for establishing a class of public housing agencies 
        that have especially severe crime problems. The Secretary may 
        allocate a portion of the annual appropriation for this program 
        for public housing agencies in this class.''.
            (2) in subsection (b)--
                    (A) by striking the introductory material preceding 
                paragraph (1) and inserting the following: ``The 
                Secretary shall approve applications under subsection 
                (a)(2) that are not subject to a preference under 
                subsection (a)(2)(B) on the basis of--'';
                    (B) in paragraph (1), by striking ``drug-related 
                crime problem in'' and inserting the following: ``crime 
                problem in and around'';
                    (C) in paragraph (2), by inserting immediately 
                after ``crime problem in'' the following: ``and 
                around''; and
                    (D) in paragraph (4), by inserting after ``local 
                government'' the following: ``, local community-based 
                nonprofit organizations, local resident organizations 
                that represent the residents of neighboring projects 
                that are owned or assisted by the Secretary,'';
            (3) in subsection (c)(2), by striking ``drug-related'' each 
        place it appears; and
            (4) by striking subsection (d).
    (e) Definitions.--Section 5126 of the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11905) is amended by striking 
paragraphs (1) and (2), and redesignating paragraphs (3) and (4) as 
paragraphs (1) and (2), respectively.
    (f) Implementation.--Section 5127 of the Public and Assisted 
Housing Drug Elimination Act of 1990 (42 U.S.C. 11906) is amended by 
striking ``Cranston-Gonzalez National Affordable Housing Act'' and 
inserting ``Housing and Community Development Act of 1993''.
    (g) Reports.--Section 5128 of the Public and Assisted Housing Drug 
Elimination Act of 1990 (42 U.S.C. 11907) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
    ``(a) Grantee Reports.--The Secretary'';
            (2) by striking ``drug-related crime in'' and inserting 
        ``crime in and around''; and
            (3) by adding at the end the following new subsection:
    ``(b) HUD Reports.--The Secretary shall submit a report to the 
Congress describing the system used to distribute funds to grantees 
under this section. Such report shall include, at a minimum--
            ``(1) a description of the criteria used to establish the 
        class of public housing agencies with especially severe crime 
        problems and a list of such agencies;
            ``(2) the methodology used to distribute funds among the 
        public housing agencies on the list created under paragraph 
        (1); and
            ``(3) the Secretary's recommendations for any change to the 
        method of distribution of funds.''.
    (h) Authorization of Appropriations.--Section 5130 of the Public 
and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11909) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``$175,000,000 for fiscal year 1993'' and all that follows 
        through the end of the sentence and inserting ``$265,000,000 
        for fiscal year 1994 and $325,000,000 for fiscal year 1995.''; 
        and
            (2) in subsection (b)--
                    (A) in the heading, by striking ``Set-Asides'' and 
                inserting ``Set-Aside''; and
                    (B) by striking the second sentence.
    (i) Repeal.--Section 520(k) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 11908) is hereby repealed.
    (j) Technical Assistance.--The Public and Assisted Housing Drug 
Elimination Act of 1990 (42 U.S.C. 11901 et seq.) is further amended by 
adding at the end the following new section:

``SEC. 5131. TECHNICAL ASSISTANCE.

    ``Of the amounts appropriated annually for each of fiscal years 
1994 and 1995 to carry out this chapter, the Secretary shall use not 
more than $10,000,000, directly or indirectly, under grants, contracts, 
or cooperative agreements, to provide training, information services, 
and other technical assistance to public housing agencies and other 
entities with respect to their participation in the program authorized 
by this chapter. Such technical assistance may include the 
establishment and operation of the clearinghouse on drug abuse in 
public housing and the regional training program on drug abuse in 
public housing under sections 5143 and 5144 of this Act. The Secretary 
is also authorized to use the foregoing amounts for obtaining 
assistance in establishing and managing assessment and evaluation 
criteria and specifications, and obtaining the opinions of experts in 
relevant fields.''.

               TITLE III--TECHNICAL AND OTHER AMENDMENTS

                Subtitle A--Public and Assisted Housing

SEC. 301. CORRECTION TO DEFINITION OF FAMILY.

    The first sentence of section 3(b)(3)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)(3)(B)) is amended--
            (1) by striking ``means'' and inserting ``includes''; and
            (2) by inserting ``and'' immediately after ``children,''.

SEC. 302. IDENTIFICATION OF CIAP REPLACEMENT NEEDS.

    Section 14 of the United States Housing Act of 1937 (42 U.S.C. 
1437l) is amended--
            (1) in subsection (d)--
                    (A) by striking paragraph (2); and
                    (B) in paragraph (4)--
                            (i) by striking ``and replacements,''; and
                            (ii) by striking ``(1), (2), and (3)'' and 
                        inserting ``(1) and (3)''; and
            (2) in subsection (f)(1)--
                    (A) by striking subparagraph (B); and
                    (B) in subparagraph (D), by striking ``(1), (2), 
                and (3)'' and inserting ``(1) and (3)''.

SEC. 303. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING.

    (a) Amendment.--Section 201(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437aa(b)) is amended to read as follows:
    ``(b) Applicability of Title I.--Except as otherwise provided by 
law, the provisions of title I shall apply to low-income housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority.''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) shall not affect provisions of the United States Housing Act of 
1937 that were made applicable to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority in accordance with section 201(b)(2) of such Act, as such 
section existed before the effective date of this section.
    (c) Applicability of Housing and Community Development Act of 
1992.--Sections 103(a)(1), 112, 114, 116, 118, 903, and 927 of the 
Housing and Community Development Act of 1992 shall apply to public 
housing developed or operated pursuant to a contract between the 
Secretary and an Indian housing authority.

SEC. 304. PROJECT-BASED ACCOUNTING.

    Section 6(c)(4)(E) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(c)(4)(E)) is amended by striking ``250'' and inserting 
``500''.

SEC. 305. OPERATING SUBSIDY ADJUSTMENTS FOR ANTICIPATED FRAUD 
              RECOVERIES.

    Section 9(a) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(a)) is amended by adding at the end the following new paragraph:
    ``(4) Adjustments to a public housing agency's operating subsidy 
made by the Secretary under this section shall reflect actual changes 
in rental income collections resulting from the application of section 
904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 
1988.''.

SEC. 306. TECHNICAL ASSISTANCE FOR LEAD HAZARD REDUCTION GRANTEES.

    Section 1011(g) of the Housing and Community Development Act of 
1992 (42 U.S.C. 5318 note) is hereby repealed.

SEC. 307. ENVIRONMENTAL REVIEW IN CONNECTION WITH GRANTS FOR LEAD-BASED 
              PAINT HAZARD REDUCTION.

    Section 1011 of the Housing and Community Development Act of 1992 
(42 U.S.C. 5318 note) is amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by adding after subsection (n) the following new 
        subsection:
    ``(o) Environmental Review.--
            ``(1) In general.--For purposes of environmental review, 
        decisionmaking, and action pursuant to the National 
        Environmental Policy Act of 1960 and other provisions of law 
        that further the purposes of such Act, a grant under this 
        section shall be treated as assistance under the HOME 
        Investment Partnership Act, established under title II of the 
        Cranston-Gonzalez National Affordable Housing Act, and shall be 
        subject to the regulations promulgated by the Secretary to 
        implement section 288 of such Act.
            ``(2) Applicability.--This subsection shall apply to--
                    ``(A) grants awarded under this section; and
                    ``(B) grants awarded to States and units of general 
                local government for the abatement of significant lead-
                based paint and lead dust hazards in low- and moderate-
                income owner-occupied units and low-income privately 
                owned rental units pursuant to title II of the 
                Departments of Veterans Affairs and Housing and Urban 
                Development, and Independent Agencies Appropriations 
                Act, 1992 (Public Law 102-139, 105 Stat. 736).''.

SEC. 308. FIRE SAFETY IN FEDERALLY ASSISTED HOUSING.

    Section 31(c)(2)(A)(i) of the Federal Fire Prevention and Control 
Act of 1974 (15 U.S.C. 2227(c)(2)(A)(i)) is amended by adding ``(or 
equivalent level of safety)'' after ``system''.

SEC. 309. SECTION 23 CONVERSION PROJECTS.

    (a) Section 23 Conversion.--
            (1) Authorization.--Notwithstanding contracts entered into 
        pursuant to section 14(b)(2) of the United States Housing Act 
        of 1937, the Secretary is authorized to enter into obligations 
        for conversion of Leonard Terrace Apartments in Grand Rapids, 
        Michigan, from a leased housing contract under section 23 of 
        such Act to a project-based rental assistance contract under 
        section 8 of such Act.
            (2) Repayment required.--The authorization made in 
        paragraph (1) is conditioned on the repayment to the Secretary 
        of all amounts received by the public housing agency under the 
        comprehensive improvement assistance program under section 14 
        of the United States Housing Act of 1937 for the Leonard 
        Terrace Apartment project and the amounts, as determined by the 
        Secretary, received by the public housing agency under the 
        formula in section 14(k) of such Act by reason of the project.
    (b) Contract Renewal.--
            (1) In general.--Leased housing contracts under section 23 
        of the United States Housing Act of 1937, as such section 
        existed before the date of enactment of the Housing and 
        Community Development Act of 1974, that--
                    (A) were converted to section 8 contracts on terms 
                similar to or the same as the terms of the section 8 
                new construction program; and
                    (B) expire during fiscal year 1994 or 1995;
        shall be extended for a period not to exceed 5 years as if the 
        rents on such projects were established under the section 8 new 
        construction program, except that section 8(c)(2)(C) of the 
        United States Housing Act of 1937 shall not apply to such 
        contracts.
            (2) Budget compliance.--To the extent that paragraph (1) 
        results in additional costs under this section, such paragraph 
        shall be effective only to the extent that amounts to cover 
        such additional costs are provided in advance in appropriation 
        Acts.

SEC. 310. INDEMNIFICATION OF CONTRACTORS FOR INTELLECTUAL PROPERTY 
              RIGHTS DISPUTES.

    A recipient of Federal housing assistance may not use such funds to 
indemnify contractors or subcontractors against costs associated with 
litigating or settling disputes concerning the infringement of 
intellectual property rights.

SEC. 311. ASSUMPTION OF ENVIRONMENTAL REVIEW RESPONSIBILITIES UNDER 
              UNITED STATES HOUSING ACT OF 1937 PROGRAMS.

    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 new section:

``SEC. 26. ENVIRONMENTAL REVIEWS.

    ``(a) In General.--
            ``(1) Release of funds.--In order to assure that the 
        policies of the National Environmental Policy Act of 1969 and 
        other provisions of law which further the purposes of such Act 
        (as specified in regulations issued by the Secretary) are most 
        effectively implemented in connection with the expenditure of 
        funds under this title, and to assure to the public 
        undiminished protection of the environment, the Secretary may, 
        under such regulations, in lieu of the environmental protection 
        procedures otherwise applicable, provide for the release of 
        funds for projects or activities under this title, as specified 
        by the Secretary upon the request of a public housing agency 
        under this section, if the State or unit of general local 
        government, as designated by the Secretary in accordance with 
        regulations, assumes all of the responsibilities for 
        environmental review, decisionmaking, and action pursuant to 
        such Act, and such other provisions of law as the regulations 
        of the Secretary may specify, which would otherwise apply to 
        the Secretary with respect to the release of funds.
            ``(2) Implementation.--The Secretary, after consultation 
        with the Council on Environmental Quality, shall issue such 
        regulations as may be necessary to carry out this section. Such 
        regulations shall specify the programs to be covered.
    ``(b) Procedure.--The Secretary shall approve the release of funds 
subject to the procedures authorized by this section only if, not less 
than 15 days prior to such approval and prior to any commitment of 
funds to such projects or activities, the public housing agency has 
submitted to the Secretary a request for such release accompanied by a 
certification of the State or unit of general local government which 
meets the requirements of subsection (c). The Secretary's approval of 
any such certification shall be deemed to satisfy the Secretary's 
responsibilities under the National Environmental Policy Act of 1969 
and such other provisions of law as the regulations of the Secretary 
specify insofar as those responsibilities relate to the release of 
funds which are covered by such certification.
    ``(c) Certification.--A certification under the procedures 
authorized by this section shall--
            ``(1) be in a form acceptable to the Secretary;
            ``(2) be executed by the chief executive officer or other 
        officer of the State or unit of general local government who 
        qualifies under regulations of the Secretary;
            ``(3) specify that the State or unit of general local 
        government under this section has fully carried out its 
        responsibilities as described under subsection (a); and
            ``(4) specify that the certifying officer--
                    ``(A) consents to assume the status of a 
                responsible Federal official under the National 
                Environmental Policy Act of 1969 and agrees to comply 
                with each provision of law specified in regulations 
                issued by the Secretary insofar as the provisions of 
                such Act or other such provision of law apply pursuant 
                to subsection (a); and
                    ``(B) is authorized and consents on behalf of the 
                State or unit of general local government and himself 
                or herself to accept the jurisdiction of the Federal 
                courts for the purpose of enforcement of his or her 
                responsibilities as such an official.
    ``(d) Approval by States.--In cases in which a unit of general 
local government carries out the responsibilities described in 
subsection (c), the Secretary may permit the State to perform those 
actions of the Secretary described in subsection (b) and the 
performance of such actions by the State, where permitted by the 
Secretary, shall be deemed to satisfy the Secretary's responsibilities 
referred to in the second sentence of subsection (b).''.

SEC. 312. INCREASED STATE FLEXIBILITY IN THE LOW-INCOME HOME ENERGY 
              ASSISTANCE PROGRAM.

    Section 927 of the Housing and Community Development Act of 1992 
(42 U.S.C. 8624) is amended--
            (1) in subsection (a)--
                    (A) in the heading, by striking ``(a) 
                Eligibility.--'' and inserting the following:
    ``(a) In General.--'';
                    (B) by striking ``(including but not limited to the 
                Low-Income Home Energy Assistance Program)''; and
                    (C) by inserting ``, except as provided in 
                subsection (d)'' before the period at the end;
            (2) in subsection (b)--
                    (A) by striking ``such'' and inserting ``or 
                receiving energy''; and
                    (B) by inserting before the period at the end ``for 
                any program in which eligibility or benefits are based 
                on need, except as provided in subsection (d)''; and
            (3) by adding at the end the following new subsection:
    ``(d) Special Rule for Low-Income Home Energy Assistance Program.--
For purposes of the Low-Income Home Energy Assistance Program, tenants 
described in subsection (a)(2) shall not have their eligibility 
automatically denied. States may consider the amount of the heating or 
cooling component of utility allowances received by such tenants when 
setting benefit levels under the Low-Income Home Energy Assistance 
Program. Any reduction in fuel assistance benefits must be reasonably 
related to the amount of the heating or cooling component of the 
utility allowance received. States shall ensure that the highest level 
of assistance will be provided to those households with the highest 
energy burdens, in accordance with section 2605(b)(5) of the Low-Income 
Home Energy Assistance Act of 1981.''.

                    Subtitle B--Multifamily Housing

SEC. 321. CORRECTION OF MULTIFAMILY MORTGAGE LIMITS.

    The National Housing Act (12 U.S.C. 1701 et seq.) is amended in 
sections 207(c)(3), 213(b)(2), 220(d)(3)(B)(iii), and 234(e)(3) by 
striking ``$59,160'' each place it appears and inserting ``$56,160''.

SEC. 322. FHA MULTIFAMILY RISK-SHARING; HFA PILOT PROGRAM AMENDMENTS.

    (a) In General.--Section 542(c) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1707 note) is amended--
            (1) in paragraph (1), by inserting after ``qualified 
        housing finance agencies'' the following: ``(including entities 
        established by States that provide mortgage insurance)'';
            (2) in paragraph (2)--
                    (A) in subparagraph (C), by striking the last 
                sentence and inserting the following: ``Such agreements 
                shall specify that the qualified housing finance agency 
                and the Secretary shall share any loss in accordance 
                with the risk-sharing agreement.''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(F) Disclosure of records.--Qualified housing 
                finance agencies shall make available to the Secretary 
                such financial and other records as the Secretary deems 
                necessary for program review and monitoring 
                purposes.'';
            (3) in paragraph (7)--
                    (A) by striking ``very low-income''; and
                    (B) by striking ``(2)''; and
            (4) by adding at the end the following new paragraphs:
            ``(9) Environmental and other reviews.--
                    ``(A) Environmental reviews.--
                            ``(i) In general.--(I) In order to assure 
                        that the policies of the National Environmental 
                        Policy Act of 1969 and other provisions of law 
                        which further the purposes of such Act (as 
                        specified in regulations issued by the 
                        Secretary) are most effectively implemented in 
                        connection with the insurance of mortgages 
                        under subsection (c)(2), and to assure to the 
                        public undiminished protection of the 
                        environment, the Secretary may, under such 
                        regulations, in lieu of the environmental 
                        protection procedures otherwise applicable, 
                        provide for agreements to endorse for insurance 
                        mortgages under subsection (c)(2) upon the 
                        request of qualified housing finance agencies 
                        under this subsection, if the State or unit of 
                        general local government, as designated by the 
                        Secretary in accordance with regulations, 
                        assumes all of the responsibilities for 
                        environmental review, decisionmaking, and 
                        action pursuant to such Act, and such other 
                        provisions of law as the regulations of the 
                        Secretary may specify, that would otherwise 
                        apply to the Secretary with respect to the 
                        insurance of mortgages on particular 
                        properties.
                            ``(II) The Secretary shall issue 
                        regulations to carry out this subparagraph only 
                        after consultation with the Council on 
                        Environmental Quality. Such regulations shall, 
                        among other matters, provide--
                                    ``(aa) for the monitoring of the 
                                performance of environmental reviews 
                                under this subparagraph;
                                    ``(bb) subject to the discretion of 
                                the Secretary, for the provision or 
                                facilitation of training for such 
                                performance; and
                                    ``(cc) subject to the discretion of 
                                the Secretary, for the suspension or 
                                termination by the Secretary of the 
                                qualified housing finance agency's 
                                responsibilities under subclause (I).
                            ``(III) The Secretary's duty under 
                        subclause (II) shall not be construed to limit 
                        any responsibility assumed by a State or unit 
                        of general local government with respect to any 
                        particular property under subclause (I).
                            ``(ii) Procedure.--The Secretary shall 
                        approve a mortgage for the provision of 
                        mortgage insurance subject to the procedures 
                        authorized by this paragraph only if, not less 
                        than 15 days prior to such approval, prior to 
                        any approval, commitment, or endorsement of 
                        mortgage insurance on the property on behalf of 
                        the Secretary, and prior to any commitment by 
                        the qualified housing finance agency to provide 
                        financing under the risk-sharing agreement with 
                        respect to the property, the qualified housing 
                        finance agency submits to the Secretary a 
                        request for such approval, accompanied by a 
                        certification of the State or unit of general 
                        local government that meets the requirements of 
                        clause (iii). The Secretary's approval of any 
                        such certification shall be deemed to satisfy 
                        the Secretary's responsibilities under the 
                        National Environmental Policy Act of 1969 and 
                        such other provisions of law as the regulations 
                        of the Secretary specify insofar as those 
                        responsibilities relate to the provision of 
                        mortgage insurance on the property that is 
                        covered by such certification.
                            ``(iii) Certification.--A certification 
                        under the procedures authorized by this 
                        paragraph shall--
                                    ``(I) be in a form acceptable to 
                                the Secretary;
                                    ``(II) be executed by the chief 
                                executive officer or other officer of 
                                the State or unit of general local 
                                government who qualifies under 
                                regulations of the Secretary;
                                    ``(III) specify that the State or 
                                unit of general local government under 
                                this section has fully carried out its 
                                responsibilities as described under 
                                clause (i); and
                                    ``(IV) specify that the certifying 
                                officer consents to assume the status 
                                of a responsible Federal official under 
                                the National Environmental Policy Act 
                                of 1969 and under each provision of law 
                                specified in regulations issued by the 
                                Secretary insofar as the provisions of 
                                such Act or such other provisions of 
                                law apply pursuant to clause (i), and 
                                is authorized and consents on behalf of 
                                the State or unit of general local 
                                government and himself or herself to 
                                accept the jurisdiction of the Federal 
                                courts for the purpose of enforcement 
                                of the responsibilities as such an 
                                official.
                            ``(iv) Approval by states.--In cases in 
                        which a unit of general local government 
                        carries out the responsibilities described in 
                        clause (i), the Secretary may permit the State 
                        to perform those actions of the Secretary 
                        described in clause (ii) and the performance of 
                        such actions by the State, where permitted by 
                        the Secretary, shall be deemed to satisfy the 
                        Secretary's responsibilities referred to in the 
                        second sentence of clause (ii).
                    ``(B) Lead-based paint poisoning prevention.--In 
                carrying out the requirements of section 302 of the 
                Lead-Based Paint Poisoning Prevention Act, the 
                Secretary may provide by regulation for the assumption 
                of all or part of the Secretary's duties under such Act 
                by qualified housing finance agencies, for purposes of 
                this section.
                    ``(C) Certification of subsidy layering 
                compliance.--The requirements of section 102(d) of the 
                Department of Housing and Urban Development Reform Act 
                of 1989 may be satisfied in connection with a 
                commitment to insure a mortgage under this subsection 
                by a certification by a housing credit agency 
                (including an entity established by a State that 
                provides mortgage insurance) to the Secretary that the 
                combination of assistance within the jurisdiction of 
                the Secretary and other government assistance provided 
                in connection with a property for which a mortgage is 
                to be insured shall not be any greater than is 
                necessary to provide affordable housing.
            ``(10) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Mortgage.--The term `mortgage' means a first 
                mortgage on real estate that is--
                            ``(i) owned in fee simple; or
                            ``(ii) subject to a leasehold interest 
                        that--
                                    ``(I) has a term of not less than 
                                99 years and is renewable; or
                                    ``(II) has a remaining term that 
                                extends beyond the maturity of the 
                                mortgage for a period of not less than 
                                10 years.
                    ``(B) First mortgage.--The term `first mortgage' 
                means a single first lien given to secure advances on, 
                or the unpaid purchase price of, real estate, under the 
                laws of the State in which the real estate is located, 
                together with the credit instrument, if any, secured 
                thereby. Any other financing permitted on property 
                insured under this section must be expressly 
                subordinate to the insured mortgage.
                    ``(C) Unit of general local government; state.--The 
                terms `unit of general local government' and `State' 
                have the same meanings as in section 102(a) of the 
                Housing and Community Development Act of 1974.''.
    (b) Definition of Multifamily Housing.--Section 544(1) of the 
Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is 
amended to read as follows:
            ``(1) The term `multifamily housing' means housing 
        accommodations on the mortgaged property that are designed 
        principally for residential use, conform to standards 
        satisfactory to the Secretary, and consist of not less than 5 
        rental units on 1 site. These units may be detached, 
        semidetached, row house, or multifamily structures.''.

SEC. 323. SUBSIDY LAYERING REVIEW.

    Section 911 of the Housing and Community Development Act of 1992 
(42 U.S.C. 3545 note) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Certification of Subsidy Layering Compliance.--The 
requirements of section 102(d) of the Department of Housing and Urban 
Development Reform Act of 1989 may be satisfied in connection with a 
project receiving assistance under a program that is within the 
jurisdiction of the Department of Housing and Urban Development and 
under section 42 of the Internal Revenue Code of 1986 by a 
certification by a housing credit agency to the Secretary, submitted in 
accordance with guidelines established by the Secretary, that the 
combination of assistance within the jurisdiction of the Secretary and 
other government assistance provided in connection with a property for 
which assistance is to be provided within the jurisdiction of the 
Department of Housing and Urban Development and under section 42 of the 
Internal Revenue Code of 1986 shall not be any greater than is 
necessary to provide affordable housing.''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Revocation by Secretary.--If the Secretary determines that a 
housing credit agency has failed to comply with the guidelines 
established under subsection (a), the Secretary--
            ``(1) may inform the housing credit agency that the agency 
        may no longer submit certification of subsidy layering 
        compliance under this section; and
            ``(2) shall carry out section 102(d) of the Housing and 
        Urban Development Reform Act relating to affected projects 
        allocated a low-income housing tax credit pursuant to section 
        42 of the Internal Revenue Code of 1986.''.

           Subtitle C--Miscellaneous and Technical Amendments

SEC. 331. TECHNICAL CORRECTION TO RURAL HOUSING PRESERVATION PROGRAM.

    Section 515(c)(1) of the Housing Act of 1949 (42 U.S.C. 1485(c)(1)) 
is amended by striking ``December 21, 1979'' and inserting ``December 
15, 1989''.

SEC. 332. CDBG TECHNICAL AMENDMENT.

    Notwithstanding any other provision of law, the city of Slidell, 
Louisiana may submit, not later than 10 days following the enactment of 
this Act, and the Secretary of Housing and Urban Development shall 
consider and accept, the final statement of community development 
objectives and projected use of funds required by section 104(a)(1) of 
the Housing and Community Development Act of 1974 in connection with a 
grant to the city of Slidell under title 1 of such Act for fiscal year 
1994.

SEC. 333. ENVIRONMENTAL REVIEW IN CONNECTION WITH SPECIAL PROJECTS.

    (a) In General.--
            (1) Release of funds.--In order to assure that the policies 
        of the National Environmental Policy Act of 1969 and other 
        provisions of law which further the purposes of such Act (as 
        specified in regulations issued by the Secretary) are most 
        effectively implemented in connection with the expenditure of 
        funds for special projects appropriated under an appropriations 
        Act for the Department of Housing and Urban Development, such 
        as special projects under the head ``Annual Contributions for 
        Assisted Housing'' in title II of the Departments of Veterans 
        Affairs and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 1993, and to assure to the public 
        undiminished protection of the environment, the Secretary of 
        Housing and Urban Development may, under such regulations, in 
        lieu of the environmental protection procedures otherwise 
        applicable, provide for the release of funds for particular 
        special projects upon the request of recipients of special 
        projects assistance, if the State or unit of general local 
        government, as designated by the Secretary in accordance with 
        regulations, assumes all of the responsibilities for 
        environmental review, decisionmaking, and action pursuant to 
        such Act, and such other provisions of law as the regulations 
        of the Secretary specify, that would otherwise apply to the 
        Secretary were the Secretary to undertake such special projects 
        as Federal projects.
            (2) Implementation.--The Secretary shall issue regulations 
        to carry out this section only after consultation with the 
        Council on Environmental Quality. Such regulations shall--
                    (A) provide for monitoring of the performance of 
                environmental reviews under this section;
                    (B) in the discretion of the Secretary, provide for 
                the provision or facilitation of training for such 
                performance; and
                    (C) subject to the discretion of the Secretary, 
                provide for suspension or termination by the Secretary 
                of the assumption under paragraph (1).
            (3) Responsibilities of state or unit of general local 
        government.--The Secretary's duty under paragraph (2) shall not 
        be construed to limit any responsibility assumed by a State or 
        unit of general local government with respect to any particular 
        release of funds under paragraph (1).
    (b) Procedure.--The Secretary shall approve the release of funds 
for projects subject to the procedures authorized by this section only 
if, not less than 15 days prior to such approval and prior to any 
commitment of funds to such projects, the recipient submits to the 
Secretary a request for such release, accompanied by a certification of 
the State or unit of general local government which meets the 
requirements of subsection (c). The Secretary's approval of any such 
certification shall be deemed to satisfy the Secretary's 
responsibilities under the National Environmental Policy Act of 1969 
and such other provisions of law as the regulations of the Secretary 
specify insofar as those responsibilities relate to the releases of 
funds for special projects to be carried out pursuant thereto which are 
covered by such certification.
    (c) Certification.--A certification under the procedures authorized 
by this section shall--
            (1) be in a form acceptable to the Secretary;
            (2) be executed by the chief executive officer or other 
        officer of the State or unit of general local government who 
        qualifies under regulations of the Secretary;
            (3) specify that the State or unit of general local 
        government under this section has fully carried out its 
        responsibilities as described under subsection (a); and
            (4) specify that the certifying officer--
                    (A) consents to assume the status of a responsible 
                Federal official under the National Environmental 
                Policy Act of 1969 and agrees to comply with each 
                provision of law specified in regulations issued by the 
                Secretary insofar as the provisions of such Act or 
                other such provision of law apply pursuant to 
                subsection (a); and
                    (B) is authorized and consents on behalf of the 
                State or unit of general local government and himself 
                or herself to accept the jurisdiction of the Federal 
                courts for the purpose of enforcement of the 
                responsibilities as such an official.
    (d) Approval by States.--In cases in which a unit of general local 
government carries out the responsibilities described in subsection 
(a), the Secretary may permit the State to perform those actions of the 
Secretary described in subsection (b) and the performance of such 
actions by the State, where permitted by the Secretary, shall be deemed 
to satisfy the Secretary's responsibilities referred to in the second 
sentence of subsection (b).

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. MOUNT RUSHMORE COMMEMORATIVE COIN ACT.

    (a) Distribution of Surcharges.--Section 8 of the Mount Rushmore 
Commemorative Coin Act (31 U.S.C. 5112 note) is amended by striking 
paragraphs (1) and (2) and inserting the following:
            ``(1) the first $18,750,000 shall be paid during fiscal 
        year 1994 by the Secretary to the Society to assist the 
        Society's efforts to improve, enlarge, and renovate the Mount 
        Rushmore National Memorial; and
            ``(2) the remainder shall be returned to the United States 
        Treasury for purposes of reducing the national debt.''.
    (b) Retroactive Effect.--If, prior to the date of enactment of this 
Act, any amount of surcharges have been received by the Secretary of 
the Treasury and paid into the United States Treasury pursuant to 
section 8(1) of the Mount Rushmore Commemorative Coin Act, as in effect 
prior to the date of enactment of this Act, that amount shall be paid 
out of the Treasury to the extent necessary to comply with section 8(1) 
of the Mount Rushmore Commemorative Coin Act, as in effect after the 
date of enactment of this Act. Amounts paid pursuant to the preceding 
sentence shall be out of funds not otherwise appropriated.

SEC. 402. MINORITY COMMUNITY DEVELOPMENT GRANTS FOR COMMUNITIES WITH 
              SPECIAL NEEDS.

    (a) Authorization.--There are hereby authorized to be expended from 
sums appropriated for water infrastructure financing and other 
wastewater activities for cities with special needs, not more than 
$25,000,000, for wastewater treatment projects, including the 
construction of facilities and related expenses in minority communities 
with special needs to--
            (1) improve the housing stock infrastructure in the special 
        needs communities; and
            (2) abate health hazards caused by groundwater 
        contamination from septage in arid areas with high groundwater 
        levels.
    (b) Treatment Projects.--The wastewater treatment projects 
authorized under this section shall include innovative technologies 
such as vacuum systems and constructed wetlands.
    (c) Definitions.--For purposes of this section--
            (1) the term ``cities with special needs'' includes 
        minority communities with special needs;
            (2) the term ``minority'' means an African-American, a 
        Hispanic-American, an Asian-American, or a Native American; and
            (3) the term ``minority community with special needs'' 
        means an unincorporated community--
                    (A) that, based on the latest census data, has a 
                minority population in excess of 50 percent;
                    (B) that has been unable to issue bonds or 
                otherwise finance a wastewater treatment system itself 
                because its attempts to change its political 
                subdivision have been rejected by the State 
                legislature; and
                    (C) for which the State legislature has 
                appropriated funds to help pay for a wastewater 
                treatment project.

            Passed the Senate November 19 (legislative day, November 
      2), 1993.

            Attest:

                                                             Secretary.

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