II

103D CONGRESS

1ST SESSION S. 1299

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.

IN THE SENATE OF THE UNITED STATES

JULY 28 (legislative day, JUNE 30), 1993

Mr. RIEGLE (for himself and Mr. SARBANES) (by request) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

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.

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

3 SHORT TITLE AND TABLE OF CONTENTS

4 SECTION 1. (a) SHORT TITLE.—This Act may be

5 cited as the ‘‘Housing and Community Development Act

6 of 1993’’.

7 (b) TABLE OF CONTENTS.—

TITLE I—FHA MULTIFAMILY REFORMS
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Sec. 101. Multifamily property disposition.

Sec. 102. Amend the requirement for State and local government right of first

refusal.

Sec. 103. Repeal State agency multifamily property disposition demonstration.

Sec. 104. Demonstration: RTC marketing and disposition of multifamily properties owned by HUD.

Sec. 105. Authorize civil money penalties against general partners and certain

managing agents of multifamily projects.

Sec. 106. Extend HUD review period for approval of management improvement

and operating plans.

Sec. 107. Use of flexible subsidy in preservation projects.

Sec. 108. Delete requirement to reduce interest rates to avoid foreclosure on assigned mortgages.

TITLE II—ENHANCE PROGRAM FLEXIBILITY

Subtitle A—Office of Public and Indian Housing

Sec. 201. Freeze fees for administration of the certificate and voucher programs.

Sec. 202. Revitalization of severely distressed public housing.

Sec. 203. Disallowance of earned income for residents who obtain employment.

Sec. 204. Ceiling rents based on reasonable rental value.

Subtitle B—Office of Community Planning and Development

Sec. 210. Economic revitalization initiative.

Sec. 211. HOME investment partnerships.

Sec. 212. Reduce HOPE 3 match requirement to 25 percent.

Subtitle C—Community Partnerships Against Crime

Sec. 220. COMPAC program.

TITLE III—TECHNICAL AND OTHER AMENDMENTS

Subtitle A—Public and Assisted Housing

Sec. 301. Correct the definition of family in the 1937 Act to clarify that families are not required to include children.

Sec. 302. Eliminate requirement for identification of CIAP replacement needs.

Sec. 303. Applicability of public housing amendments to Indian housing.

Sec. 304. Increase the unit threshold above which PHAs are required to adopt

project-based accounting.

Subtitle B—Multifamily Housing

Sec. 310. Correct errors in multifamily mortgage limits.

Sec. 311. FHA multifamily risk-sharing HFA pilot program amendments.

Sec. 312. Subsidy layering review.
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1 TITLE I—FHA MULTIFAMILY REFORMS

2 MULTIFAMILY PROPERTY DISPOSITION

3 SEC. 101. (a) SUBSIDIZED AND UNSUBSIDIZED

4 PROJECTS.—Section 203 of the Housing and Community

5 Development Amendments of 1978 is amended—

6 (1) in subsection (a)—

7 (A) by redesignating paragraphs (2)

8 through (6) as paragraphs (3) through (7), re9 spectively; and

10 (B) by striking paragraph (1) and insert11 ing in lieu thereof the following:

12 ‘‘(1) preserving so that they are available to

13 and affordable by low-income persons—

14 ‘‘(A) in the case of a subsidized or for15 merly subsidized multifamily housing project re16 ferred to in subsections (i)(2) (A) through (C),

17 all units in the project;

18 ‘‘(B) in the case of a subsidized or for19 merly subsidized project referred to in sub20 section (i)(2)(D), all units in the project that

21 are covered, or were covered immediately before

22 foreclosure or acquisition of the project by the

23 Secretary, by an assistance contract under any

24 of the authorities referred to in such subsection;
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1 ‘‘(C) in all other multifamily housing

2 projects, at least the units that are covered, or

3 were covered immediately before foreclosure or

4 acquisition of the project by the Secretary, by

5 a project-based assistance contract under—

6 ‘‘(i) section 8(b)(2) of the United

7 States Housing Act of 1937 (as such sec8 tion existed before October 1, 1983) (new

9 construction and substantial rehabilita10 tion); section 8(b) of such Act (property

11 disposition); section 8(d)(2) of such Act

12 (project-based certificates); section 8(e)(2)

13 of such Act (moderate rehabilitation); sec14 tion 23 of such Act (as in effect before

15 January 1, 1975); or section 101 of the

16 Housing and Urban Development Act of

17 1965 (rent supplements); or

18 ‘‘(ii) section 8 of the United States

19 Housing Act of 1937, following conversion

20 from such section 101;

21 ‘‘(2) in the case of multifamily housing projects

22 other than subsidized projects, providing project23 based rental assistance to units that were covered by

24 an assistance contract under the Loan Management

25 Set-Aside program under section 8(b) of such Act
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1 immediately before foreclosure or acquisition of the

2 project by the Secretary: Provided, That the assist3 ance shall be limited to—

4 ‘‘(A) tenants residing in the units imme5 diately before the foreclosure or acquisition; and

6 ‘‘(B) tenants initially admitted to units

7 under such contract that were vacant at the

8 time of the foreclosure or sale by HUD of the

9 project;

10 and such assistance shall not be provided to subse11 quent tenants;’’;

12 (2) in subsection (b)—

13 (A) in paragraph (1)—

14 (i) by striking ‘‘, including’’ and all

15 that follows through ‘‘persons,’’; and

16 (ii) by inserting ‘‘competent and’’ im17 mediately before ‘‘capable’’;

18 (B) by adding at the end thereof the fol19 lowing new paragraph:

20 ‘‘(3) to develop such procedures as the Sec21 retary determines necessary to obtain appropriate

22 community or resident input into disposition plans;

23 and’’;

24 (3) by striking paragraph (1) of subsection (d)

25 and the introductory material preceding such para-
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1 graph (1), and inserting in lieu thereof the following:

2 ‘‘In carrying out the goals specified in subsections

3 (a)(1) and (2), the Secretary shall take not less than

4 one of the following actions:

5 ‘‘(1) Enter into contracts under section 8 of the

6 United States Housing Act of 1937, to the extent

7 budget authority is available, with owners of multi8 family housing projects that are acquired by a pur9 chaser other than the Secretary at foreclosure or

10 after sale by the Secretary.

11 ‘‘(A)(i) In the case of a subsidized or for12 merly subsidized project referred to in sub13 sections (i)(2) (A) through (C), the contract

14 shall be for a term of at least 15 years and

15 shall be sufficient to assist at least all units

16 covered by an assistance contract under any of

17 the authorities referred to in subsection

18 (i)(2)(D). In order to make available to families

19 any of such units that are occupied by persons

20 not eligible for assistance under section 8, but

21 that subsequently become vacant, a contract

22 under this clause shall also provide that when

23 any such vacancy occurs, the owner shall lease

24 the available unit to a family eligible for assist25 ance under section 8. The Secretary shall use
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1 the authority contained in paragraph (3) in

2 connection with any unit in such projects that

3 does not receive project-based assistance under

4 this paragraph.

5 ‘‘(ii) In the case of a subsidized or for6 merly subsidized project referred to in sub7 section (i)(2)(D), the contract shall be for a

8 term of at least 15 years and shall be sufficient

9 to assist at least all units in the project that are

10 covered, or were covered immediately before

11 foreclosure or acquisition of the project by the

12 Secretary, by an assistance contract under any

13 of the authorities referred to in such subsection.

14 In order to make available to families any of

15 such units that are occupied by persons not eli16 gible for assistance under section 8, but that

17 subsequently become vacant, a contract under

18 this clause shall also provide that when any

19 such vacancy occurs, the owner shall lease the

20 available unit to a family eligible for assistance

21 under section 8.

22 ‘‘(iii) Contracts under clauses (i) and (ii)

23 shall be at contract rents that, consistent with

24 subsection (a), provide for the necessary reha25 bilitation of such project and do not exceed
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1 such percentage of the existing housing fair

2 market rents for the area (as determined by the

3 Secretary under section 8(c) of the United

4 States Housing Act of 1937) as the Secretary

5 may prescribe.

6 ‘‘(B) In all other multifamily housing

7 projects the contract shall be for an initial term

8 of at least five years and shall at least be suffi9 cient to provide project-based rental assistance

10 for all units—

11 ‘‘(i) that are covered, or were covered

12 immediately before foreclosure or acquisi13 tion of the project by the Secretary, by an

14 assistance contract under—

15 ‘‘(I) section 8(b)(2) of the United

16 States Housing Act of 1937 (as such

17 section existed before October 1,

18 1983) (new construction and substan19 tial rehabilitation); section 8(b) prop20 erty disposition); section 8(d)(2) of

21 such Act (project-based certificates);

22 section 8(e)(2) of such Act (moderate

23 rehabilitation); section 23 of such Act

24 (as in effect before January 1, 1975);

25 or section 101 of the Housing and
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1 Urban Development Act of 1965 (rent

2 supplements); or

3 ‘‘(II) section 8 of the United

4 States Housing Act of 1937, following

5 conversion from such section 101; and

6 ‘‘(ii) that were covered by an assist7 ance contract under the Loan Management

8 Set-Aside program under section 8(b) of

9 such Act immediately before foreclosure or

10 acquisition of the project by the Secretary:

11 Provided, That the assistance shall be lim12 ited to—

13 ‘‘(I) tenants residing in the units

14 immediately before the foreclosure or

15 acquisition; and

16 ‘‘(II) tenants initially admitted to

17 units under such contract that were

18 vacant at the time of the foreclosure

19 or sale by HUD of the project;

20 and such assistance shall not be provided

21 to subsequent tenants.’’;

22 (4) by adding the following new paragraph at

23 the end of subsection (d):

24 ‘‘(4) In connection with projects referred to in

25 paragraph (1), the Secretary is authorized to make
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1 available tenant-based rental assistance under sec2 tion 8 (b) or (o) of such Act to very low-income fam3 ilies (as defined in section 3(b)(2) of the United

4 States Housing Act of 1937) that do not qualify for

5 project-based assistance under such paragraph.’’;

6 and

7 (5) in subsections (e) (3) and (4), by striking

8 ‘‘15-year period’’ and inserting in lieu thereof the

9 following: ‘‘the period of assistance’’.

10 (b) TENANT-BASED ASSISTANCE.—Section

11 203(d)(2) of such Act is amended—

12 (1) in the first sentence, by striking the par13 enthetical; and

14 (2) by adding at the end thereof the following

15 new sentence: ‘‘Actions pursuant to this paragraph

16 may be taken in connection with not more than 10

17 percent of the units in subsidized or formerly sub18 sidized projects owned by the Secretary.’’.

19 (c) ALTERNATE ASSISTANCE.—Section 203(d)(3) of

20 such Act is amended by striking ‘‘will ensure that,’’ and

21 all that follows through the end, and inserting in lieu

22 thereof the following: ‘‘will ensure that—

23 ‘‘(A) the project is available to, and afford24 able by, low-income persons; and
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1 ‘‘(B) for a period of not less than 15 years,

2 there shall be in force such use restrictions and

3 rent regulation as the Secretary may pre4 scribe.’’.

5 (d) NONRENTAL, NONRESIDENTIAL USE.—Section

6 203(d) of such Act, as amended by the previous provisions

7 of this section, is amended—

8 (1) by adding the following new paragraph at

9 the end thereof:

10 ‘‘(5)(A) Notwithstanding any other provision of

11 law, of the total number of units in multifamily

12 housing projects that are owned by the Secretary,

13 the Secretary may make up to—

14 ‘‘(i) 10 percent available for uses, other

15 than rental or cooperative use, such as low-in16 come homeownership opportunities, shelters for

17 the homeless, and office space for resident or

18 housing-related social service providers; and

19 ‘‘(ii) five percent available for any use, if

20 the Secretary, in consultation with the local or

21 areawide governing body, determines that such

22 action will assist efforts to deconcentrate low23 income housing opportunities.

24 ‘‘(B) In connection with projects referred to in

25 subparagraph (A), the Secretary is authorized to
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1 make available tenant-based rental assistance under

2 section 8 (b) or (o) of such Act to very low-income

3 families (as defined in section 3(b)(2) of the United

4 States Housing Act of 1937) to assist them in locat5 ing other decent, safe, and sanitary housing.’’; and

6 (2) in the last sentence of subsection (e)(1), by

7 striking ‘‘value’’ and all that follows through ‘‘(d)’’

8 and inserting in lieu thereof the following: ‘‘intended

9 use of the property after sale’’.

10 (e) DISPLACEMENT.—Sections 203(f)(2) (B) and (C)

11 are each amended by striking ‘‘above-moderate income’’

12 and inserting in lieu thereof ‘‘above low-income’’.

13 (f) SALE OF MORTGAGES ON UNSUBSIDIZED

14 PROJECTS.—Section 203(h) of such Act is amended by

15 adding at the end thereof the following new paragraph:

16 ‘‘(4) Notwithstanding any other provision of

17 law, the Secretary is authorized to sell mortgages

18 held on multifamily housing projects other than sub19 sidized projects on such terms and conditions as the

20 Secretary may prescribe.’’.

21 (g) DEFINITION OF ‘‘SUBSIDIZED PROJECT.’’—Sec22 tion 203(i) of such Act is amended—

23 (1) in paragraph (1), by striking ‘‘or section

24 312 of the Housing Act of 1964’’;
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1 (2) by striking subparagraph (C) of paragraph

2 (2) and renumbering the remaining subparagraphs

3 accordingly;

4 (3) in paragraph (2)(C), as redesignated by

5 paragraph (2) of this subsection, by striking ‘‘or to’’

6 and all that follows through ‘‘1964’’;

7 (4) by striking subparagraph (D) of paragraph

8 (2), as redesignated by paragraph (2) of this sub9 section, and inserting in lieu thereof the following

10 new subparagraph:

11 ‘‘(D)(i) rent supplement payments under

12 section 101 of the Housing and Urban Develop13 ment of 1965; (ii) housing assistance payments

14 made under section 23 of the United States

15 Housing Act of 1937 (as in effect before Janu16 ary 1, 1975); or (iii) housing assistance pay17 ments made under section 8 of the United

18 States Housing Act of 1937 (excluding pay19 ments made for certificates under subsection

20 (b)(1) or vouchers under subsection (o)), if (ex21 cept for purposes of paragraphs (1) and (2) of

22 subsection (h) and section 183(c) of the Hous23 ing and Community Development Act of 1987)

24 such assistance payments are made to more
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1 than 50 percent of the units in the project.’’;

2 and

3 (5) by striking paragraph (i)(4).

4 (h) OTHER PROVISIONS.—Section 203 of such Act is

5 amended by adding at the end thereof the following new

6 subsection:

7 ‘‘(k) In providing tenant-based assistance in connec8 tion with activities pursuant to subsection (d)(4) or

9 (d)(5)(B), the Secretary shall take into consideration the

10 condition of the local market in which the assistance will

11 be used and shall take such steps as the Secretary deems

12 necessary for the successful use of the assistance.’’.

13 (i) USE OF SAVINGS IN MANDATORY EXPENDI14 TURES.—(1) From amounts of savings in mandatory ex15 penditures that result from the amendments made by this

16 section, the Secretary shall—

17 (A) make grants to States and units of general

18 local government in a total amount of $400,000,000

19 for the rehabilitation of multifamily projects for20 merly owned by the Secretary that have been trans21 ferred to such governmental entities;

22 (B) transfer a sufficient number of multifamily

23 housing projects owned by the Secretary to States

24 and units of general local government to assure full
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1 use of the amount required for grants under sub2 paragraph (A); and

3 (C) require that the grantees comply with re4 quirements established by the Secretary governing

5 use of the project and the grant, including require6 ments governing use of the units for rental by low7 income families and affordability of rents, as deter8 mined by the Secretary.

9 The Secretary’s authority to make expenditures for grants

10 under this subparagraph shall terminate on September 30,

11 1994. The Secretary shall, by notice published in the Fed12 eral Register, establish such requirements as may be nec13 essary to carry out the provisions of this subparagraph,

14 including a requirement that States and units of general

15 local government do not earn arbitrage profits from these

16 grants.

17 (2) For purposes of this subsection—

18 (A) the term ‘‘low-income families’’ has the

19 meaning given such term in section 3(b)(2) of the

20 United States Housing Act of 1937;

21 (B) the term ‘‘Secretary’’ means the Secretary

22 of Housing and Urban Development;

23 (C) the term ‘‘State’’ has the meaning given

24 such term in section 104(2) of the Cranston-Gon25 zalez National Affordable Housing Act, including
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1 any agency or instrumentality thereof that is estab2 lished pursuant to legislation and designated by the

3 chief executive to act on behalf of the State with re4 gard to paragraph (1)(A); and

5 (D) the term ‘‘unit of general local govern6 ment’’ has the meaning given such term in section

7 104(1) of the Cranston-Gonzalez National Afford8 able Housing Act, including any agency or instru9 mentality thereof that is established pursuant to leg10 islation and designated by the chief executive to act

11 on behalf of the jurisdiction with regard to para12 graph (1)(A).

13 AMEND THE REQUIREMENT FOR STATE AND LOCAL

14 GOVERNMENT RIGHT OF FIRST REFUSAL

15 SEC. 102. (a) Section 203(e)(2) of the Housing and

16 Community Development Amendments of 1978 is amend17 ed to read as follows:

18 ‘‘(2) The Secretary, within 60 days of acquiring

19 title to a project, shall notify the unit of general

20 local government and the State housing finance

21 agency (or other agency or agencies designated by

22 the Governor) of the acquisition of such title. Within

23 60 days of this notice, the local government or des24 ignated State agency may submit to the Secretary a

25 preliminary expression of interest in the project. The

26 Secretary may take such actions as may be nec-
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1 essary to require the local government or designated

2 State agency to substantiate such interest. If the

3 local government or designated State agency has ex4 pressed interest within the 60-day period, and has

5 substantiated such interest if requested, upon ap6 proval of a disposition plan for a project, the Sec7 retary shall notify the local government and des8 ignated State agency of the terms and conditions of

9 the disposition plan and give the local government or

10 designated State agency 90 days from the date of

11 the notification to make an offer to purchase the

12 project. If the local govenment or designated State

13 agency does not express interest within the 60-day

14 period, or does not substantiate an expressed inter15 est if requested, the Secretary, upon approval of a

16 disposition plan, may offer the project for sale to

17 any interested person or entity.’’.

18 (b) Section 203(e)(3) of such Act is amended by

19 striking ‘‘The’’ in the first sentence and inserting ‘‘Where

20 the Secretary has given the local government or designated

21 State agency 90 days to make an offer to purchase the

22 project, the’’.

23 (c) Section 203(e) of such Act, as amended by sub24 sections (a) and (b), shall apply to projects that are ac25 quired on or after the effective date of this section. With
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1 respect to projects acquired before the effective date of

2 this section, the Secretary may apply—

3 (1) the requirements of sections 203 (e)(2) and

4 (e)(3) of such Act as they existed immediately before

5 the effective date of this section; or

6 (2) the requirements of section 203 (e)(2) and

7 (e)(3) of such Act, as amended by subsections (a)

8 and (b), respectively, if the Secretary gives the local

9 government and designated State agency 60 days to

10 express interest in the project, and for those that ex11 press interest within the 60-day period, and substan12 tiate such interest if requested, 90 days from the

13 date of notification of the terms and conditions of

14 the disposition plan to make an offer to purchase

15 the project.

16 REPEAL STATE AGENCY MULTIFAMILY PROPERTY

17 DISPOSITION DEMONSTRATION

18 SEC. 103. Section 184 of the Housing and Commu19 nity Development Act of 1987 is hereby repealed.

20 DEMONSTRATION: RTC MARKETING AND DISPOSITION OF

21 MULTIFAMILY PROPERTIES OWNED BY HUD

22 SEC. 104. (a) The Secretary of Housing and Urban

23 Development may carry out a demonstration with up to

24 50 multifamily properties owned by the Secretary, using

25 the Resolution Trust Corporation (RTC) for the market26 ing and disposition of the properties. Any such demonstra-
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1 tion shall be carried out by agreement of the RTC and

2 the Secretary on such terms and conditions as are accept3 able to the RTC and the Secretary. The RTC shall estab4 lish policies and procedures for marketing and disposition,

5 subject to review and approval by the Secretary.

6 (b) The Secretary may waive the requirements of sec7 tion 203 of the Housing and Community Development

8 Amendments of 1978 and any related requirements, in9 cluding restrictions on the incomes of families occupying

10 the units and requirements for continued assistance. The

11 Secretary may also waive any other statutory and regu12 latory requirements that apply to the project and that the

13 Secretary determines are not consistent with the purposes

14 of a demonstration, except that the Secretary may not

15 waive any equal opportunity or nondiscrimination statu16 tory or regulatory requirements or procedures.

17 (c) In determining which properties to include in the

18 demonstration, the Secretary shall take into consideration

19 the size of the inventory of properties owned by the Sec20 retary in the locality and such other factors as the Sec21 retary determines are appropriate.

22 (d) The Secretary shall reimburse the RTC for the

23 direct costs associated with the demonstration, including

24 the costs of administration and marketing, property man25 agement, and any repair and rehabilitation. The Secretary
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1 may use proceeds from the sale of the properties to reim2 burse the RTC for its costs.

3 (e) The demonstration under this section shall—

4 (1) be approved personally by the Secretary;

5 (2) taken as a whole over the life of the dem6 onstration, not result in higher costs to the Federal

7 Government;

8 (3) be generally consistent with the overall pur9 poses of the program or programs under which the

10 waiver is granted;

11 (4) be the subject of an evaluation plan for

12 which funding is obligated or set aside at the same

13 time the demonstration is approved and which will

14 be carried out by an independent party; the evalua15 tion shall include an assessment of the impact and

16 effectiveness of (A) any requirements waived pursu17 ant to subsection (b), and (B) any differences be18 tween the property disposition procedures of the

19 RTC and the Secretary; and

20 (5) be consistent with the Fair Housing Act,

21 title VI of the Civil Rights Act of 1964, section 504

22 of the Rehabilitation Act of 1973, and the Age Dis23 crimination Act of 1975.

24 (f) In approving the demonstration under this sec25 tion, the Secretary may impose such requirements as the
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1 Secretary considers to be appropriate to further its pur2 poses.

3 (g) The RTC shall submit an annual progress report

4 to the Secretary. The Secretary shall submit a report to

5 Congress within one year after completion of the dem6 onstration, describing the results of the demonstration and

7 making any recommendations for legislation.

8 (h) The demonstration under this section shall not

9 extend beyond the termination date of the Resolution

10 Trust Corporation.

11 (i) There is authorized to be appropriated $1,000,000

12 for the evaluation of the demonstration under this section.

13 AUTHORIZE CIVIL MONEY PENALTIES AGAINST GENERAL

14 PARTNERS AND CERTAIN MANAGING AGENTS OF

15 MULTIFAMILY PROJECTS

16 SEC. 105. (a) Section 537 of the National Housing

17 Act is amended—

18 (1) in subsection (b)(1), by inserting after

19 ‘‘mortgagor’’ the second place it appears the follow20 ing: ‘‘or general partner of a partnership mortga21 gor’’;

22 (2) in the heading to subsection (c), by deleting

23 ‘‘VIOLATIONS OF REGULATORY AGREEMENT’’ and

24 inserting in lieu thereof the following: ‘‘OTHER VIO25 LATIONS’’;

26 (3) in subsection (c)(1)—
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1 (A) by deleting ‘‘any mortgagor of prop2 erty’’ and all that follows through ‘‘as follows:’’

3 and inserting in lieu thereof the following:

4 ‘‘(A) any mortgagor of property that in5 cludes five or more living units and that has a

6 mortgage insured, coinsured, or held pursuant

7 to this Act;

8 ‘‘(B) the general partner of a partnership

9 mortgagor;

10 ‘‘(C) any agent employed to manage the

11 property that has an identity of interest with

12 the general partner; or

13 ‘‘(D) any independent fee management en14 tity, under contract with the mortgagor or gen15 eral partner of a partnership mortgagor, that

16 fails to notify the Secretary, as required by the

17 Secretary, that it has been instructed by the

18 mortgagor or general partner of a partnership

19 mortgagor to engage in activities that are con20 trary to regulations and requirements of the

21 Secretary. A penalty may be imposed under this

22 section for knowingly and materially taking any

23 of the following actions:’’;

24 (B) by adding after subparagraph (L) the

25 following new subparagraphs:
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1 ‘‘(M) Failure, when there is adequate

2 project income available, to maintain the prem3 ises, accommodations, and the grounds and

4 equipment appurtenant thereto in good repair

5 and condition in accordance with regulations

6 and requirements of the Secretary.

7 ‘‘(N) Failure, by a general partner of a

8 partnership mortgagor, to provide management

9 for the project that is acceptable to the Sec10 retary pursuant to regulations and require11 ments of the Secretary.’’;

12 (C) in the last sentence, by deleting ‘‘of

13 such agreement’’ and inserting in lieu thereof

14 the following: ‘‘of this subsection’’; and

15 (D) by redesignating subparagraphs (A)

16 through (N) as clauses (i) through (xiv), respec17 tively;

18 (4) in subsection (d)(1)(B), by inserting after

19 ‘‘mortgagor’’ the following: ‘‘, general partner of a

20 partnership mortgagor, or agent employed to man21 age the property or independent fee management en22 tity as described in subsections (c)(1) (C) and (D),

23 respectively,’’;
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1 (5) in subsection (e)(1), by deleting ‘‘a mortga2 gor’’ and inserting in lieu thereof the following: ‘‘an

3 entity or person’’;

4 (6) in subsection (f), by inserting after ‘‘mort5 gagor’’ both times that it appears the following: ‘‘,

6 general partner of a partnership mortgagor, or agent

7 employed to manage the property or independent fee

8 management agent as described in subsections (c)(1)

9 (C) and (D), respectively,’’; and

10 (7) by amending the heading to read as follows:

11 ‘‘CIVIL MONEY PENALTIES AGAINST MULTIFAMILY

12 MORTGAGORS, GENERAL PARTNERS OF PARTNER13 SHIP MORTGAGORS, AND MANAGING AGENTS’’.

14 (b) The amendments made by subsection (a) shall

15 apply only with respect to—

16 (1) violations that occur on or after the effec17 tive date of this section; and

18 (2) in the case of a continuing violation (as de19 termined by the Secretary of Housing and Urban

20 Development), any portion of a violation that occurs

21 on or after such date.

22 EXTEND HUD REVIEW PERIOD FOR APPROVAL OF

23 MANAGEMENT IMPROVEMENT AND OPERATING PLANS

24 SEC. 106. Section 201(d)(6) of the Housing and

25 Community Development Amendments of 1978 is amend26 ed by striking ‘‘30’’ and inserting ‘‘120’’.
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1 USE OF FLEXIBLE SUBSIDY IN PRESERVATION PROJECTS

2 SEC. 107. (a) USE OF ASSISTANCE.—Section 201(k)

3 of the Housing and Community Development Amend4 ments of 1978 is amended by adding at the end thereof

5 the following new paragraph:

6 ‘‘(4) In providing, and contracting to provide,

7 assistance for capital improvements under this sec8 tion, the Secretary shall give priority to projects that

9 are eligible for incentives under section 224(b) of the

10 Emergency Low Income Housing Preservation Act

11 of 1987. The Secretary may make such assistance

12 available on a noncompetitive basis.’’.

13 (b) CERTAIN UNINSURED PROJECTS.—Section

14 201(n)(2) of such Act is amended by inserting a comma

15 immediately after ‘‘insured mortgages in force’’ and the

16 following: ‘‘projects for which the Secretary holds the

17 mortgage, and projects with respect to which the Secretary

18 makes interest reduction payments under section 236(o)

19 of the National Housing Act’’.

20 DELETE REQUIREMENT TO REDUCE INTEREST RATES TO

21 AVOID FORECLOSURE ON ASSIGNED MORTGAGES

22 SEC. 108. Section 7(i)(5) of the Department of Hous23 ing and Urban Development Act is amended by striking

24 out the first semicolon, and all that follows through ‘‘as

25 determined by the Secretary’’.
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1 TITLE II—ENHANCE PROGRAM FLEXIBILITY

2 Subtitle A—Office of Public and Indian Housing Freeze

3 Fees for Administration of the Certificate and

4 Voucher Programs

5 SEC. 201. Notwithstanding the second sentence of

6 section 8(q)(1) of the United States Housing Act of 1937,

7 other applicable law, and any implementing regulations

8 and related requirements, the fee for the ongoing costs

9 of administering the certificate and housing voucher pro10 grams under sections 8(b) and 8(o) of such Act for Fed11 eral fiscal year 1994 shall be based on the fair market

12 rents for Federal fiscal year 1993. However, the Secretary

13 may increase the fee in accordance with the third sentence

14 of section 8(q)(1) and sections 8(q)(2) (ii) and (iii) of such

15 Act.

16 REVITALIZATION OF SEVERELY DISTRESSED PUBLIC

17 HOUSING

18 SEC. 202. (a) SEVERELY DISTRESSED PUBLIC

19 HOUSING.—Section 24 of the United States Housing Act

20 of 1937 is amended as provided by this subsection.

21 (1) DELETE REQUIREMENT FOR DESIGNATION

22 OF ELIGIBLE PROJECTS.—

23 (A) Subsection (b) is hereby repealed.

24 (B) Subsection (i)(2) is hereby repealed

25 and the following paragraphs redesignated ac26 cordingly.
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1 (2) INCREASE PLANNING GRANT DOLLAR

2 CAP.—Subsection (c)(2) is amended by striking

3 ‘‘$200,000’’ and inserting ‘‘$500,000’’.

4 (3) PLANNING GRANT ELIGIBLE ACTIVITIES:

5 COMMUNITY SERVICE.—Subsection (c)(3) is amend6 ed by inserting the following new subparagraph after

7 subparagraph (D) and redesignating the following

8 subparagraphs accordingly:

9 ‘‘(E) planning for community service ac10 tivities to be carried out by residents, other

11 members of the community, and other persons

12 willing to contribute to the social, economic, or

13 physical improvement of the community (com14 munity service is a required element of the revi15 talization program);’’.

16 (4) PLANNING GRANT APPLICATION: COMMU17 NITY SERVICE.—Subsection (c)(4) is amended by in18 serting the following new subparagraph after sub19 paragraph (C) and redesignating the following sub20 paragraphs accordingly:

21 ‘‘(D) a description of the planning activi22 ties for community service to be carried out by

23 residents, other members of the community,

24 and other persons willing to contribute to the
28

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1 social, economic, or physical improvement of the

2 community;’’.

3 (5) IMPLEMENTATION GRANT ELIGIBLE ACTIVI4 TIES.—

5 (A) Subsection (d)(2) is amended by in6 serting the following new subparagraphs after

7 subparagraph (D) and redesignating the follow8 ing subparagraphs accordingly:

9 ‘‘(E) community service activities to be

10 carried out by residents, other members of the

11 community, and other persons willing to con12 tribute to the social, economic, or physical im13 provement of the community (community serv14 ice is a required element of the revitalization

15 program); and

16 ‘‘(F) replacement of public housing units,

17 when required under section 18, through the

18 use of implementation grant funds for the de19 velopment of replacement units provided

20 through the methods permitted under section

21 18(b)(3);’’.

22 (B) Subsection (d)(2)(K), as redesignated

23 by subparagraph (A) of this paragraph, is

24 amended by—
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1 (i) striking ‘‘than 15 percent’’ and in2 serting ‘‘than 20 percent’’; and

3 (ii) inserting before the period the fol4 lowing: ‘‘and provided that an amount

5 equal to 15 percent of the amount of any

6 grant under this subsection used for sup7 port services shall be contributed from

8 non-Federal sources (this contribution

9 shall be in the form of cash, administrative

10 costs, and the reasonable value of in-kind

11 contributions and may include funding

12 under title I of the Housing and Commu13 nity Development Act of 1974)’’.

14 (6) IMPLEMENTATION GRANT APPLICATIONS:

15 COMMUNITY SERVICE.—Subsection (d)(3) is amend16 ed by inserting the following new subparagraph after

17 subparagraph (C) and redesignating the following

18 subparagraphs accordingly:

19 ‘‘(D) a description of the community serv20 ice activities to be carried out by residents,

21 other members of the community, and other

22 persons willing to contribute to the social, eco23 nomic, or physical improvement of the commu24 nity;’’.
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1 (7) PLANNING GRANT AND IMPLEMENTATION

2 GRANT SELECTION CRITERIA: NATIONAL GEO3 GRAPHIC DIVERSITY.—Subsections (c)(5) and (d)(4)

4 are each amended by—

5 (A) striking subparagraph (E) and redesig6 nating the following subparagraphs accordingly;

7 and

8 (B) inserting at the end the following new

9 flush matter:

10 ‘‘The Secretary may select a lower-rated, approvable

11 application over a higher-rated application to in12 crease the level of national geographic diversity of

13 applications approved under this section.’’.

14 (8) IMPLEMENTATION GRANT SELECTION CRI15 TERIA.—Subsection (d)(4)(D) is amended by strik16 ing ‘‘the potential of the applicant for developing a

17 successful and affordable’’ and inserting ‘‘the quality

18 of the proposed’’.

19 (9) DEFINITIONS.—(A) Subsection (h)(5) is

20 amended to read as follows:

21 ‘‘(5) SEVERELY DISTRESSED PUBLIC HOUS22 ING.—The term ‘severely distressed public housing’

23 means a public housing project or a building in a

24 project that—
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1 ‘‘(A) requires major redesign, reconstruc2 tion, or redevelopment, or partial or total demo3 lition, to correct serious deficiencies in the

4 original design (including inappropriately high

5 population density), deferred maintenance,

6 physical deterioration or obsolescence of major

7 systems, and other deficiencies in the physical

8 plant of the project; and

9 ‘‘(B)(i)(I) is occupied predominantly by

10 families with children which have extremely low

11 incomes, high rates of unemployment, and ex12 tensive dependency on various forms of public

13 assistance; and

14 ‘‘(II) has high rates of vandalism and

15 criminal activity (including drug-related crimi16 nal activity); or

17 ‘‘(ii) has a vacancy rate, as determined by

18 the Secretary, of 50 percent or more; and

19 ‘‘(C) cannot be revitalized through assist20 ance under other programs, such as the pro21 grams under sections 9 and 14, or through

22 other administrative means because of the inad23 equacy of available funds; and

24 ‘‘(D) in the case of individual buildings,

25 the building is, in the Secretary’s determina-
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1 tion, sufficiently separable from the remainder

2 of the project to make use of the building fea3 sible for purposes of this section.’’.

4 (B) Subsection (h) is amended by adding the

5 following new paragraphs at the end thereof:

6 ‘‘(6) COMMUNITY SERVICE.—The term ‘commu7 nity service’ means services provided on a volunteer

8 or limited stipend basis for the social, economic, or

9 physical improvement of the community to be

10 served, including opportunity for the upward mobil11 ity of participants providing the community service,

12 through completion of education requirements, job

13 training, or alternative methods of developing skills

14 and job readiness.

15 ‘‘(7) SUPPORT SERVICES.—The term ‘support

16 services’ includes all activities designed to lead to17 ward upward mobility, self-sufficiency, and improved

18 quality of life for the residents of the project, such

19 as literacy training, job training, day care, and eco20 nomic development, and may include such activities

21 for residents of the neighborhood.’’.

22 (b) CONFORMING AMENDMENT.—The first sentence

23 of section 25(m)(1) of the United States Housing Act of

24 1937 is amended to read as follows: ‘‘The term ‘eligible

25 housing’ means a public housing project, or one or more
33

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1 buildings within a project, that is owned or operated by

2 a troubled public housing agency.’’.

3 (c) COMPREHENSIVE GRANT AND DEVELOPMENT

4 GRANTS FOR REPLACEMENT HOUSING.—(1) Section

5 5(a)(2) of the United States Housing Act of 1937 is

6 amended by adding the following new sentence at the end

7 thereof: ‘‘In providing assistance under this paragraph,

8 the Secretary may give priority to public housing agencies

9 that use comprehensive grants under section 14(k) for re10 placement housing under section 18(b)(3)(A).’’

11 (2) Section 14 of such Act is amended by adding the

12 following new subsection at the end thereof:

13 ‘‘(q) The Secretary may authorize a public housing

14 agency to use assistance allocated to it for use under sub15 section (e) for the development of additional housing

16 under this Act, in accordance with requirements applicable

17 to the development of public housing, to provide replace18 ment housing as required by section 18.’’.

19 (d) USE OF TENANT-BASED ASSISTANCE FOR RE20 PLACEMENT HOUSING.—(1) Section 18(b)(3)(A) of such

21 Act is amended—

22 (A) by striking ‘‘or’’ at the end of clause (v);

23 (B) by redesignating clause (vi) as clause (vii);

24 and
34

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1 (C) by inserting the following new clause imme2 diately after clause (v):

3 ‘‘(vi) the use of five-year tenant-based as4 sistance under section 8(b) or (o) if—

5 ‘‘(I) the project has been vacant for a

6 period of at least five years;

7 ‘‘(II) the proposed demolition is nec8 essary for revitalization of the remaining

9 units in the project; or

10 ‘‘(III) demolition of the entire project

11 is proposed and some or all of the units

12 will be replaced on the site; or’’.

13 (2) Section 18(b)(3) of such Act is amended—

14 (A) in subparagraph (A)(v), by striking ‘‘to the

15 extent available’’ and all that follows through ‘‘5

16 years’’; and

17 (B) in subparagraph (C), by adding the follow18 ing new flush matter at the end thereof:

19 ‘‘Provided, That notwithstanding the other provisions of

20 this subparagraph, if the plan involves (I) a demolition

21 described in subparagraph (A)(vi) or (II) the demolition

22 of 200 or more units, tenant-based assistance under sec23 tion 8(b) or (o) may be approved if the public housing

24 agency determines, in accordance with such requirements

25 as the Secretary may prescribe, that such use is feasible
35

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1 and appropriate to meeting the low-income housing needs

2 in the community;’’.

3 (3) Section 18(c)(2) of such Act is amended by in4 serting before the period at the end of the first sentence

5 a comma and the following: ‘‘except for amounts to be pro6 vided from the allocation of comprehensive grant assist7 ance to the public housing agency under section 14’’.

8 (e) NEED FOR REPLACEMENT HOUSING.—The flush

9 matter at the end of section 18(b)(3) of such Act is

10 amended—

11 (1) by striking ‘‘except that,’’ and inserting in

12 lieu thereof the following: ‘‘except that (1)’’; and

13 (2) by inserting immediately before the period

14 at the end thereof the following: ‘‘, and (2) a public

15 housing agency may demolish public housing dwell16 ing units without providing an additional unit for

17 each unit to be demolished if there is no need for

18 additional assisted housing in the community, as de19 termined in accordance with criteria determined by

20 the Secretary’’.

21 (f) REPLACEMENT HOUSING OUTSIDE THE JURIS22 DICTION OF THE PHA.—Section 18(b)(3) of such Act is

23 amended by inserting the following new subparagraph

24 after subparagraph (C), and redesignating the following

25 subparagraphs accordingly:
36

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1 ‘‘(D) may provide that all or part of such addi2 tional dwelling units may be located outside the ju3 risdiction of the public housing agency (the ‘original

4 agency’) if—

5 ‘‘(i) the location is in the same housing

6 market area as the original agency, as deter7 mined by the Secretary;

8 ‘‘(ii) the plan contains an agreement be9 tween the original agency and the public hous10 ing agency in the alternate location or other

11 public or private entity that will be responsible

12 for providing the additional units in the alter13 nate location (‘alternate agency or entity’) that

14 the alternate agency or entity will, with respect

15 to the dwelling units involved—

16 ‘‘(I) provide the dwelling units in ac17 cordance with subparagraph (A) of this

18 paragraph;

19 ‘‘(II) complete the plan on schedule in

20 accordance with subparagraph (F) of this

21 paragraph;

22 ‘‘(III) meet the requirements of sub23 paragraph (G) of this paragraph and the

24 maximum rent provisions of subparagraph

25 (H) of this paragraph; and
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1 ‘‘(IV) not impose a local residency

2 preference on any resident of the jurisdic3 tion of the original agency for purposes of

4 admission to any such units; and

5 ‘‘(iii) the arrangement is approved by the

6 unit of general local government for the juris7 diction in which the additional units will be lo8 cated.’’.

9 DISALLOWANCE OF EARNED INCOME FOR RESIDENTS

10 WHO OBTAIN EMPLOYMENT

11 SEC. 203. (a) DISALLOWANCE OF EARNED INCOME

12 FROM PUBLIC HOUSING RENT DETERMINATIONS.—

13 (1) IN GENERAL.—Section 3 of the United

14 States Housing Act of 1937 is amended by striking

15 the undesignated paragraph at the end thereof and

16 inserting in lieu thereof the following new sub17 section:

18 ‘‘(d) DISALLOWANCE OF EARNED INCOME FROM

19 PUBLIC HOUSING RENT DETERMINATIONS.—Notwith20 standing any other provision of law, the rent payable

21 under subsection (a) for any public housing unit by a fam22 ily whose income increases as a result of employment of

23 a member of the family who was previously unemployed

24 for one or more years not be increased as a result of the

25 increased income due to such employment for a period of
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1 18 months, beginning with the commencement of employ2 ment.’’.

3 (2) APPLICABILITY OF AMENDMENT.—Notwith4 standing the amendment made by paragraph (1),

5 any resident of public housing participating in the

6 authority contained in such undesignated paragraph

7 immediately before its amendment by this section

8 shall continue to be governed by such authority.

9 (b) REPEALER.—Section 957 of the Cranston-Gon10 zalez National Affordable Housing Act is hereby repealed.

11 CEILING RENTS BASED ON REASONABLE RENTAL VALUE

12 SEC. 204. (a) Section 3(a)(2)(A)(iii) of the United

13 States Housing Act of 1937 is amended to read as follows:

14 ‘‘(iii) is not less than the reasonable rental

15 value of the unit, as determined by the Secretary.’’.

16 (b) The Secretary shall, by notice published in the

17 Federal Register, establish such requirements as may be

18 necessary to carry out the provisions of section 3(a)(2)(A)

19 of the United States Housing Act of 1937, as amended

20 by subsection (a). The notice shall also invite public com21 ments, and the Secretary shall issue final regulations

22 based on the initial notice, taking into account any public

23 comments received.
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1 Subtitle B—Office of Community Planning and

2 Development Economic Revitalization Initiative

3 SEC. 210. (a) ECONOMIC REVITALIZATION

4 GRANTS.—(1) Section 108(a) of the Housing and Com5 munity Development Act of 1974 is amended by striking

6 the second sentence and inserting in lieu thereof the fol7 lowing: ‘‘A guarantee under this section (including a guar8 antee combined with a grant under subsection (q)) may

9 be used to assist a grantee in obtaining financing, only

10 if the grantee has made efforts to obtain the financing

11 without the use of the guarantee (and, if applicable, the

12 grant) and cannot complete the financing consistent with

13 the timely execution of the proposed activities and projects

14 without the guarantee (or, if applicable, the grant).’’.

15 (2) Section 108 of such Act is further amended by

16 adding at the end thereof the following new subsection:

17 ‘‘(q)(1) The Secretary is authorized to use amounts

18 deobligated under section 119 to provide grants in accord19 ance with this subsection for economic revitalization

20 projects to eligible public entities (units of general local

21 government) in connection with notes or other obligations

22 guaranteed for such entities under this section.

23 ‘‘(2) By regulation, the Secretary shall prescribe the

24 terms and conditions of these grants (in accordance with

25 this title, except as otherwise permitted by this sub-
40

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1 section), including guidelines related to economic revital2 ization projects eligible for grants, the amount of grant

3 funds to be provided for specific economic revitalization

4 projects applied for, and requirements applicable to the

5 use of the grant and the guaranteed loan proceeds by the

6 recipient. The regulations shall at a minimum implement

7 the provisions specified in this subsection.

8 ‘‘(3) The proceeds of the guaranteed loan, and the

9 grant under this subsection, shall be used to finance eco10 nomic development activities and projects eligible under

11 subsection (a) and specified in the approved application.

12 In this subsection, the term ‘‘economic revitalization

13 projects’’ refers to such eligible economic development

14 projects and activities.

15 ‘‘(4) If the eligible public entity proposes a grant

16 under this subsection, it shall submit its request to HUD,

17 in the form prescribed by HUD, with or as part of its

18 application for loan guarantee assistance under this sec19 tion.

20 ‘‘(5) To the extent funds are available, grants under

21 this subsection shall be approved on a first-come, first22 served basis.’’.

23 (3) Section 119(o) of such Act is amended by striking

24 ‘‘shall be’’ and all that follows up to the period and insert25 ing in lieu thereof the following: ‘‘shall, as determined by
41

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1 the Secretary, be added to amounts appropriated under

2 section 103 or be used to provide grants under section

3 108(q)’’.

4 (4) Title I of such Act is amended—

5 (A) in the second sentence of section 101(c), by

6 striking ‘‘and, if applicable, the funds received as a

7 result of a guarantee under section 108,’’ and by in8 serting in lieu therof ‘‘(including any such funds

9 used to make payments on a loan guaranteed by the

10 Secretary under section 108) and, if applicable, any

11 grant received under section 108(q),’’ and

12 (B) in section 104(b)(3), by striking ‘‘and, if

13 applicable, as a result of a guarantee under section

14 108,’’ and by inserting in lieu thereof ‘‘(including

15 any such funds used to make payments on a loan

16 guaranteed by the Secretary under section 108) and,

17 if applicable, any grant received under section

18 108(q),’’.

19 (b) SECTION 108 LOAN GUARANTEES FOR

20 COLONIAS.—The first sentence of section 108(a) of the

21 Housing and Community Development Act of 1974 is

22 amended—

23 (1) by striking ‘‘or’’ immediately after ‘‘section

24 105(a);’’; and
42

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1 (2) by inserting immediately before the period

2 at the end thereof the following: ’’; or (5) activities

3 under section 105(a)(2) with respect to colonias

4 under section 916 of the Cranston-Gonzalez Na5 tional Affordable Housing Act’’.

6 (c) GUARANTEE OF OBLIGATIONS BACKED BY SEC7 TION 108 LOANS.—Section 108 of the Housing and Com8 munity Development Act of 1974 is amended by adding

9 at the end thereof the following new subsection:

10 ‘‘(r)(1) The Secretary is authorized, upon such terms

11 and conditions as the Secretary deems appropriate, to

12 guarantee the timely payment of the principal of and in13 terest on such trust certificates or other obligations as

14 shall—

15 ‘‘(A) be offered by the Secretary or by any

16 other offeror approved for purposes of this sub17 section by the Secretary, and

18 ‘‘(B) be based on and backed by a trust or pool

19 composed of notes or other obligations guaranteed or

20 eligible for guarantee by the Secretary under this

21 section.

22 ‘‘(2) To the same extent as provided in subsection

23 (f), the full faith and credit of the United States is pledged

24 to the payment of all amounts which may be required to
43

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1 be paid under any guarantee by the Secretary under this

2 subsection.

3 ‘‘(3) In the event the Secretary pays a claim under

4 a guarantee issued under this section, it shall be sub5 rogated fully to the rights satisfied by such payment.

6 ‘‘(4) No State or local law, and no Federal law, shall

7 preclude or limit the exercise by the Secretary of—

8 ‘‘(A) the power to contract with respect to pub9 lic offerings and other sales of notes, trust certifi10 cates, and other obligations guaranteed under this

11 section upon such terms and conditions as the Sec12 retary deems appropriate,

13 ‘‘(B) the right to enforce by any means deemed

14 appropriate by the Secretary any such contract, and

15 ‘‘(C) the Secretary’s ownership rights, as appli16 cable, in notes, certificates, or other obligations

17 guaranteed under this section, or constituting the

18 trust or pool against which trust certificates, or

19 other obligations guaranteed under this section are

20 offered.’’.

21 HOME INVESTMENT PARTNERSHIPS

22 SEC. 211. (a) PARTICIPATION BY STATE AGENCIES

23 OR INSTRUMENTALITIES.—Section 104(2) of the Cran24 ston-Gonzalez National Affordable Housing Act is amend25 ed—

26 (1) by striking ‘‘and’’; and
44

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1 (2) by inserting before the period at the end

2 thereof the following: ‘‘, and any agency or instru3 mentality thereof that is established pursuant to leg4 islation and designated by the chief executive to act

5 on behalf of the jurisdiction with regard to provi6 sions of this Act’’.

7 (b) SIMPLIFY PROGRAM-WIDE INCOME TARGETING

8 FOR HOME RENTAL HOUSING.—Sections 214(1) (A) and

9 (B) of such Act are amended by striking ‘‘such funds are

10 invested with respect to dwelling units that are occupied

11 by’’ each place it appears and inserting in lieu thereof the

12 following: ‘‘(i) the families receiving such rental assistance

13 are, or (ii) the dwelling units assisted with such funds are

14 occupied by,’’.

15 (c) REMOVE FIRST-TIME HOMEBUYER LIMITATION

16 FOR HOME UNITS.—Section 215(b) of such Act is amend17 ed by striking paragraph (3) and redesignating para18 graphs (4) and (5) as paragraphs (3) and (4), respectively.

19 (d) SIMPLIFY RESALE PROVISIONS.—Section

20 215(b)(4)(B) of such Act is amended by striking ‘‘sub21 section’’ and inserting in lieu thereof ‘‘title’’.

22 (e) STABILIZATION OF HOME FUNDING THRESH23 OLDS.—

24 (1) Sections 216(10) and 217(b)(4) of such Act

25 are hereby repealed.
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1 (2) Section 217(b)(3) of such Act is amended—

2 (A) in the first sentence, by striking ‘‘only

3 those jurisdictions’’ and all that follows up to

4 the period and inserting in lieu thereof the fol5 lowing: ‘‘jurisdictions that are not participating

6 jurisdictions that are allocated an amount of

7 $500,000 or greater and jurisdictions that are

8 participating jurisdictions shall receive an allo9 cation’’; and

10 (B) in the last sentence, by striking ‘‘, ex11 cept as provided in paragraph (4)’’.

12 (3) Section 216 of such Act is amended—

13 (A) in paragraph (3), by striking ‘‘Except

14 as provided in paragraph (10), a jurisdiction’’

15 in the first sentence and inserting in lieu there16 of ‘‘A jurisdiction’’; and

17 (B) in paragraph (9)(B), by striking ‘‘, ex18 cept as provided in paragraph (10)’’.

19 (f) COMPREHENSIVE AFFORDABLE HOUSING STRAT20 EGY.—

21 (1) HOME PROGRAM.—The first sentence of

22 section 218(d) of such Act is amended by inserting

23 immediately after ‘‘providing certification’’ the fol24 lowing: ‘‘that it is following a current housing af-
46

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1 fordability strategy which has been approved by the

2 Secretary in accordance with section 105, and’’.

3 (2) HOMELESS ASSISTANCE PROGRAMS.—

4 (A) IN GENERAL.—Section 401 of the

5 Stewart B. McKinney Homeless Assistance Act

6 is amended to read as follows:

7 HOUSING AFFORDABILITY STRATEGY.

8 ‘‘SEC. 401. (a) REQUIREMENT TO FOLLOW A

9 CHAS.—Assistance may be made available Under subtitle

10 B to metropolitan cities, urban counties, and States receiv11 ing a formula amount under section 413, only if the juris12 diction certifies that it is following a current housing af13 fordability strategy which has been approved by the Sec14 retary in accordance with section 105 of the Cranston15 Gonzalez National Affordable Housing Act.

16 ‘‘(b) REQUIREMENT FOR CONSISTENCY WITH

17 CHAS.—Assistance may be made available under this title

18 only if the application contains a certification that the pro19 posed project or activities are consistent with the housing

20 strategy of the State or unit of general local government

21 in which the project is located. The certification shall be

22 from the public official responsible for submitting the

23 strategy for the jurisdiction.’’.

24 (B) CONFORMING CHANGES.—Title IV of

25 such Act is amended by striking sections

26 426(a)(2)(F), 434(a)(10), and 454(b)(9).
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1 (g) SIMPLIFY HOME MATCHING REQUIREMENTS.—

2 Section 220 of the Cranston-Gonzalez National Affordable

3 Housing Act is amended to read as follows:

4 ‘‘(a) CONTRIBUTION.—Each participating jurisdic5 tion shall make contributions to housing that qualifies as

6 affordable housing under this title that total, throughout

7 a fiscal year, not less than 25 percent of the funds drawn

8 from the jurisdictions’s HOME Investment Trust Fund

9 in that fiscal year. This contribution shall be in addition

10 to any amounts made available under section

11 216(3)(A)(ii).’’.

12 (h) DELETE SEPARATE AUDIT REQUIREMENT FOR

13 THE HOME PROGRAM.—Section 283 of such Act is

14 amended—

15 (1) by striking the section heading and insert16 ing in lieu thereof the following: ‘‘AUDITS BY THE

17 COMPTROLLER GENERAL.’’;

18 (2) by striking subsection (a);

19 (3) by striking ‘‘(b) AUDITS BY THE COMP20 TROLLER GENERAL.—’’ and redesignating para21 graphs (1) and (2) as subsections (a) and (b), re22 spectively; and

23 (4) in subsection (a), as redesignated by para24 graph (3), by striking the second sentence.
48

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1 (i) HOME ENVIRONMENTAL REVIEW AMEND2 MENTS.—Section 288 of such Act is amended—

3 (1)(A) in the first sentence of subsection (a), by

4 striking out ‘‘participating jurisdictions’’ and insert5 ing in lieu thereof the following: ‘‘jurisdictions, In6 dian tribes, or insular areas’’; and

7 (B) in the first sentence of subsection (b) and

8 in subsection (c)(4), by striking ‘‘participating juris9 diction’’ each place it appears and inserting in lieu

10 thereof the following: ‘‘jurisdiction, Indian tribe, or

11 insular area’’; and

12 (2) by inserting at the end of subsection (a) the

13 following new sentences: ‘‘The regulations shall,

14 among other matters, provide for the monitoring of

15 the performance of environmental reviews under this

16 section and, in the discretion of the Secretary, for

17 the provision of facilitation of training for such per18 formance and suspension or termination of the as19 sumption under this section. The Secretary’s duty

20 under the foregoing sentence shall not be construed

21 as being in derogation of any responsibility assumed

22 by a State or unit of general local government with

23 respect to any particular release of funds.’’;

24 (3) in subsection (d), by striking out ‘‘ASSIST25 ANCE TO A STATE.—In the case of assistance to
49

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1 States’’ and inserting in lieu thereof the following:

2 ‘‘ASSISTANCE TO UNITS OF GENERAL LOCAL GOV3 ERNMENT FROM A STATE.—In the case of assist4 ance to units of general local government from a

5 State’’.

6 (j) USE OF CDBG FUNDS FOR HOME ADMINISTRA7 TIVE EXPENSES.—Section 105(a)(13) of the Housing and

8 Community Development Act of 1974 is amended by in9 serting immediately after ‘‘charges related to’’ the follow10 ing:

11 ‘‘(A) administering the HOME program under

12 title II of the Cranston-Gonzalez National Afford13 able Housing Act and (B)’’.

14 (k) PROJECT DELIVERY COSTS.—Section 105(a)(21)

15 of such Act is amended by—

16 (1) inserting immediately after ‘‘housing coun17 seling’’ the following: ‘‘in connection with tenant18 based rental assistance and affordable housing

19 projects assisted under title II of the Cranston-Gon20 zalez National Affordable Housing Act’’; and

21 (2) striking ‘‘authorized’’ and all that follows

22 through ‘‘law’’ and inserting in lieu thereof the fol23 lowing: ‘‘assisted under title II of the Cranston-Gon24 zalez National Affordable Housing Act’’.
50

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1 REDUCE HOPE 3 MATCH REQUIREMENT TO 25 PERCENT

2 SEC. 212. Section 443(c)(1) of the Cranston-Gon3 zalez National Affordable Housing Act is amended by

4 striking ‘‘33’’ and inserting ‘‘25’’.

5 Subtitle C—Community Partnerships Against Crime

6 Compac Program

7 SEC. 220. (a) CONFORMING PROVISIONS.—(1) Sec8 tion 5001 of the Anti-Drug Abuse Act of 1988 is amend9 ed—

10 (A) by striking

‘‘CHAPTER 2—PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION’’

11 and inserting in lieu thereof the following:

‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;

12 (B) by striking ‘‘Congressional findings.’’ and

13 inserting in lieu thereof the following: ‘‘Purposes.’’;

14 and

15 (C) by adding after

‘‘Sec. 5130. Authorization of appropriations.’’

16 the following:

‘‘Sec. 5131. Technical assistance.’’.

17 (2) The heading for chapter 2 of subtitle C of

18 title V of the Anti-Drug Abuse Act of 1988 is

19 amended to read as follows:
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1 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

2 AGAINST CRIME’’.

3 (b) SHORT TITLE, PURPOSES, AND AUTHORITY TO

4 MAKE GRANTS.—Sections 5121, 5122, and 5123 of the

5 Public and Assisted Housing Drug Elimination Act of

6 1990 are amended to read as follows:

7 ‘‘SEC. 5121. SHORT TITLE.

8 ‘‘This chapter may be cited as the ‘Community Part9 nerships Against Crime Act of 1993’.

10 ‘‘SEC. 5122. PURPOSES.

11 ‘‘The purposes of this chapter are to—

12 ‘‘(1) substantially expand and enhance the Fed13 eral Government’s commitment to eliminating crime

14 in public housing;

15 ‘‘(2) broaden the scope of the Public and As16 sisted Housing Drug Elimination Act of 1990 to

17 apply to all types of crime, and not simply crime

18 that is drug-related;

19 ‘‘(3) target opportunities for long-term commit20 ments of funding primarily to public housing agen21 cies with serious crime problems;

22 ‘‘(4) encourage the involvement of a broad

23 range of community-based groups, and residents of

24 neighboring housing that is owned or assisted by the

25 Secretary, in the development and implementation of

26 anti-crime plans;
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1 ‘‘(5) reduce crime and disorder in and around

2 public housing through the expansion of community3 oriented policing activities and problem solving;

4 ‘‘(6) provide training, information services, and

5 other technical assistance to program participants;

6 and

7 ‘‘(7) establish a standardized assessment sys8 tem to evaluate need among public housing agencies,

9 and to measure progress in reaching crime reduction

10 goals.

11 ‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.

12 ‘‘The Secretary of Housing and urban Development,

13 in accordance with the provisions of this chapter, may

14 make grants, for use in eliminating crime in and around

15 public and other federally assisted low-income housing

16 projects (1) to public housing agencies (including Indian

17 housing authorities) and (2) using amounts appropriated

18 for fiscal year 1994 only, to private, for-profit and non19 profit owners of federally assisted low-income housing. In

20 designing the program, the Secretary shall consult with

21 the Attorney General.’’.

22 (c) ELIGIBLE ACTIVITIES.—Section 5124 of such Act

23 is amended—

24 (1) by striking ‘‘(a) PUBLIC AND ASSISTED

25 HOUSING.—’’;
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1 (2) by inserting in the introductory material,

2 immediately after ‘‘used in’’, the following: ‘‘and

3 around’’;

4 (3) in paragraph (3), by inserting immediately

5 before the semicolon the following: ‘‘, such as fenc6 ing, lighting, locking, and surveillance systems’’;

7 (4) by striking paragraph (4)(A) and inserting

8 in lieu thereof the following new subparagraph:

9 ‘‘(A) to investigate crime; and’’;

10 (5) in paragraph (6)—

11 (A) by striking ‘‘in and around public or

12 other federally assisted low-income housing

13 projects’’; and

14 (B) by striking ‘‘and’’ after the semicolon;

15 (6) in paragraph (7)—

16 (A) by striking ‘‘where a public housing

17 agency receives a grant,’’;

18 (B) by striking ‘‘drug abuse’’ and inserting

19 in lieu thereof ‘‘crime’’; and

20 (C) by striking the period at the end and

21 inserting in lieu thereof a colon;

22 (7) by adding the following new paragraphs

23 after paragraph (7):

24 ‘‘(8) the employment or utilization of one or

25 more individuals, including law enforcement officers,
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1 made available by contract or other cooperative ar2 rangement with State or local law enforcement agen3 cies, to engage in community- and problem-oriented

4 policing involving interaction with members of the

5 community on proactive crime control and preven6 tion;’’

7 ‘‘(9) youth initiatives, such as activities involv8 ing training, education, after school programs, cul9 tural programs, recreation and sports, career plan10 ning, and entrepreneurship and employment; and

11 ‘‘(10) resident service programs, such as job

12 training, education programs, and other appropriate

13 social services which address the contributing factors

14 of crime.’’; and

15 (8) by striking subsection (b).

16 (d) APPLICATIONS.—Section 5125 of such Act is

17 amended—

18 (1) in subsection (a)—

19 (A) by adding the paragraph designation

20 ‘‘(1)’’ immediately after ‘‘IN GENERAL.—’’;

21 (B) in the first sentence, by striking ‘‘, a

22 public housing resident management corpora23 tion,’’;

24 (C) in the second sentence, by striking

25 ‘‘drug-related crime on the premises of’’ and in-
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1 serting in lieu thereof the following: ‘‘crime in

2 and around’’; and

3 (D) by adding the following new para4 graphs at the end:

5 ‘‘(2) The Secretary shall, by regulation issued

6 after notice and opportunity for public comment, set

7 forth criteria for establishing a class of public hous8 ing agencies that have especially severe crime prob9 lems. Any public housing agency within this class

10 may submit an application for a one-year grant

11 under this chapter that, subject to the availability of

12 appropriated amounts, shall be renewed for a period

13 not exceeding the four subsequent years: Provided,

14 That the Secretary finds, after an annual or more

15 frequent performance review, that the public housing

16 agency is performing under the terms of the grant

17 and applicable laws in a satisfactory manner and

18 meets such other requirements as the Secretary may

19 prescribe.

20 ‘‘(3) Any eligible applicant may submit an ap21 plication for a grant for a period of up to two years.

22 The Secretary may accord a preference to applica23 tions seeking a subsequent grant under this para24 graph if the grant is to be used to continue or ex25 pand activities assisted under a previous grant under
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1 this paragraph and the Secretary finds that the ap2 plicant’s program under the prior grant is being

3 managed soundly and demonstrates success. Any

4 preferences under the preceding sentence shall not

5 unreasonably prejudice the opportunities of other

6 public housing agencies to be awarded grants under

7 this paragraph.’’;

8 (2) in subsection (b)—

9 (A) in the introductory material, by strik10 ing ‘‘subsections (c) and (d)’’ and inserting in

11 lieu thereof ‘‘subsections (a) and (c)’’;

12 (B) in paragraph (1), by striking ‘‘drug-re13 lated crime problem in’’ and inserting in lieu

14 thereof the following: ‘‘crime problem in and

15 around’’;

16 (C) in paragraph (2), by inserting imme17 diately after ‘‘crime problem in’’ the following:

18 ‘‘and around’’; and

19 (D) in paragraph (4), by inserting after

20 ‘‘local government’’ the following: ‘‘, local com21 munity-based non-profit organizations, local

22 resident organizations that represent the resi23 dents of neighboring projects that are owned or

24 assisted by the Secretary,’’;
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1 (3) in subsection (c)(2) by striking ‘‘drug-relat2 ed’’ the two places it appears; and

3 (4) by striking subsection (d).

4 (e) DEFINITIONS.—Section 5126 of such Act is

5 amended by striking paragraphs (1) and (2), and renum6 bering paragraphs (3) and (4) as paragraphs (1) and (2),

7 respectively.

8 (f) IMPLEMENTATION.—Section 5127 of such Act is

9 amended by striking ‘‘Cranston-Gonzalez National Afford10 able Housing Act’’ and inserting in lieu thereof ‘‘Housing

11 and Community Development Act of 1993’’.

12 (g) REPORTS.—Section 5128 of such Act is amended

13 by striking ‘‘drug-related crime in’’ and inserting in lieu

14 thereof the following: ‘‘crime in and around’’.

15 (h) AUTHORIZATION OF APPROPRIATIONS.—Section

16 5130 of such Act is amended—

17 (1) in the first sentence of subsection (a), by

18 striking ‘‘$175,000,000 for fiscal year 1993’’ and all

19 that follows and inserting in lieu thereof:

20 $265,000,000 for fiscal year 1994 and

21 $325,000,000 for fiscal year 1995.’’;

22 (2) in subsection (b)—

23 (A) by striking ‘‘SET-ASIDES’’ and insert24 ing in lieu thereof ‘‘SET-ASIDE’’;

25 (B) by striking the first sentence;
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1 (C) by striking ‘‘drug elimination’’;

2 (D) by striking ‘‘fiscal years 1993 and

3 1994’’ and inserting in lieu thereof ‘‘fiscal year

4 1994’’; and

5 (E) by striking ‘‘and 5.0 percent’’ and all

6 that follows through the end of the sentence

7 and inserting in lieu thereof a period; and

8 (3) by striking subsection (c) and section

9 520(k) of the Cranston-Gonzalez National Afford10 able Housing Act.

11 (i) TECHNICAL ASSISTANCE.—Such Act is further

12 amended by adding at the end thereof the following new

13 section:

14 ‘‘SEC. 5131. TECHNICAL ASSISTANCE.

15 ‘‘Of the amounts appropriated annually for each of

16 fiscal years 1994 and 1995 to carry out this chapter, the

17 Secretary is authorized to use up to $10,000,000, directly

18 or indirectly, under grants, contracts, cooperative agree19 ments, or otherwise, to provide training, information serv20 ices, and other technical assistance to public housing agen21 cies and other entities with respect to their participation

22 in the program authorized by this chapter. Such technical

23 assistance may include the establishment and operation of

24 the clearinghouse on drug abuse in public housing and the

25 regional training program on drug abuse in public housing
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1 under sections 5143 and 5144 of this Act. The Secretary

2 is also authorized to use the foregoing amounts for obtain3 ing assistance in establishing and managing assessment

4 and evaluation criteria and specifications, and obtaining

5 the opinions of experts in relevant fields.’’.

6 TITLE III—TECHNICAL AND OTHER

7 AMENDMENTS

8 Subtitle A—Public and Assisted Housing

9 CORRECT THE DEFINITION OF FAMILY IN THE 1937 ACT

10 TO CLARIFY THAT FAMILIES ARE NOT REQUIRED TO

11 INCLUDE CHILDREN

12 SEC. 301. The first sentence of section 3(b)(3)(B) of

13 the United States Housing Act of 1937 is amended by—

14 (1) striking out ‘‘means’’ and inserting ‘‘in15 cludes’’; and

16 (2) inserting ‘‘and’’ immediately after ‘‘chil17 dren,’’.

18 ELIMINATE REQUIREMENT FOR IDENTIFICATION OF CIAP

19 REPLACEMENT NEEDS

20 SEC. 302. (a) Section 14(d) of the United States

21 Housing Act of 1937 is amended—

22 (1) by striking paragraph (2); and

23 (2) in paragraph (4)—

24 (A) by deleting ‘‘and replacements,’’; and

25 (B) by striking ‘‘, (2),’’.

26 (b) Section 14(f)(1) of such Act is amended—
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1 (1) by striking subparagraph (B); and

2 (2) in subparagraph (D), by striking ‘‘, (2),’’.

3 APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO

4 INDIAN HOUSING

5 SEC. 303. (a) Section 201(b) of the United States

6 Housing Act of 1937 is amended to read as follows—

7 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other8 wise provided by law, the provisions of title I shall apply

9 to low-income housing developed or operated pursuant to

10 a contract between the Secretary and an Indian housing

11 authority.’’.

12 (b) The amendment made by subsection (a) shall not

13 affect provisions of the United States Housing Act of

14 1937 that were made applicable to public housing devel15 oped or operated pursuant to a contract between the Sec16 retary of Housing and Urban Development and an Indian

17 housing authority in accordance with section 201(b)(2) of

18 such Act, as it existed before the effective date of this sec19 tion.

20 (c) The provisions of sections 103(a)(1), 112, 114,

21 116, 118, 903, and 927 of the Housing and Community

22 Development Act of 1992 shall also apply to public hous23 ing developed or operated pursuant to a contract between

24 the Secretary of Housing and Urban Development and an

25 Indian housing authority.
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1 INCREASE THE UNIT THRESHOLD ABOVE WHICH PHAS

2 ARE REQUIRED TO ADOPT PROJECT-BASED ACCOUNTING

3 SEC. 304. Section 6(c)(4)(E) of the United States

4 Housing Act of 1937 is amended by striking ‘‘250’’ and

5 inserting in lieu thereof ‘500’’.

6 Subtitle B—Multifamily Housing

7 CORRECT ERRORS IN MULTIFAMILY MORTGAGE LIMITS

8 SEC. 310. Sections 207(c)(3), 213(b)(2),

9 220(d)(3)(B)(iii), and 234(e)(3) of the National Housing

10 Act are each amended by striking ‘‘$59,160’’ and insert11 ing ‘‘$56,160’’.

12 FHA MULTIFAMILY RISK-SHARING; HFA PILOT PROGRAM

13 AMENDMENTS

14 SEC. 311. (a) Section 542(c) of the Housing and

15 Community Development Act of 1992 is amended—

16 (1) in paragraph (2)(C), by striking the last

17 sentence and inserting in lieu thereof the following

18 new sentence: ‘‘Such agreements shall specify that

19 the qualified housing finance agency and the Sec20 retary shall share any loss in accordance with the

21 risk-sharing agreement.’’;

22 (2) in paragraph (2)(E)—

23 (A) by inserting the clause designation

24 ‘‘(i)’’ before the first sentence;
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1 (B) in the first sentence, by inserting after

2 ‘‘subsection’’ the following:’’, except as provided

3 in this section,’’; and

4 (C) by adding the following new paragraph

5 (2)(E)(ii):

6 ‘‘(ii) The mortgage shall—

7 ‘‘(I) provide for complete amortization

8 by periodic payments within such terms as

9 the Secretary shall prescribe;

10 ‘‘(II) not exceed 40 years from the be11 ginning of amortization; and

12 ‘‘(III) not exceed a loan-to-value or

13 loan-to-replacement cost of 90 percent for

14 profit-motivated owners and 100 percent

15 for nonprofit owners.’’;

16 (3) by adding the following new subparagraphs

17 at the end of paragraph (2):

18 ‘‘(F) The Secretary, upon request of a

19 qualified housing finance agency, may insure

20 and make commitments to insure under this

21 section any mortgage, advance, or loan other22 wise eligible under this section, pursuant to a

23 risk-sharing agreement providing that the hous24 ing finance agency will carry out (under a dele25 gation or otherwise, and with or without com-
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1 pensation, but subject to audit, exception, or re2 view requirements) such credit approval, ap3 praisal, inspection, issuance of commitments,

4 cost certification, servicing, property disposi5 tion, or other functions as the Secretary, pursu6 ant to regulations, shall approve as consistent

7 with the purpose of this section. All appraisals

8 of property for mortgage insurance under this

9 section shall be completed by a Certified Gen10 eral Appraiser in accordance with the Uniform

11 Standards of Professional Appraisal Practice.

12 ‘‘(G) Qualified housing finance agencies

13 shall make available to the Secretary or the

14 Secretary’s designee, at the Secretary’s request,

15 such financial and other records as the Sec16 retary deems necessary for program review and

17 monitoring purposes.

18 ‘‘(H) Notwithstanding any other provision

19 of this section, no new, existing, or rehabilitated

20 multifamily housing with respect to which a

21 mortgage is insured under this section shall be

22 operated for transient or hotel purposes. For

23 purposes of this paragraph, the term ‘rental for

24 transient or hotel purposes’ shall have such

25 meaning as prescribed by the Secretary, but
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1 rental for any period less than 30 days shall in

2 any event constitute rental for such purposes.

3 ‘‘(I) No mortgage with respect to multi4 family housing may be insured under this sec5 tion unless—

6 ‘‘(i) the mortgagor certifies under

7 oath that while such insurance remains

8 outstanding, he or she will not rent, or

9 permit the rental of, such housing or any

10 part thereof for transient or hotel pur11 poses; and

12 ‘‘(ii) the housing finance agency has

13 entered into such contract with the mort14 gagor as the Secretary deems necessary to

15 enable the housing finance agency to pre16 vent or terminate any use of such property

17 or project for transient or hotel purposes

18 while the mortgage insurance remains out19 standing.’’; and

20 (4) by adding at the end thereof the following

21 new paragraphs:

22 ‘‘(9) ENVIRONMENTAL AND OTHER REVIEWS.—

23 ‘‘(A) NEPA.—

24 ‘‘(i) IN GENERAL.—(I) In order to as25 sure that the policies of the National Envi-
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1 ronmental Policy Act of 1969 and other

2 provisions of law which further the pur3 poses of such Act (as specified in regula4 tions issued by the Secretary) are most ef5 fectively implemented in connection with

6 commitments to insure mortgages under

7 subsection (c)(2), and to assure to the pub8 lic undiminished protection of the environ9 ment, the Secretary, in lieu of the environ10 mental protection procedures otherwise ap11 plicable, may under regulations provide for

12 commitments to insure mortgages under

13 subsection (c)(2) upon the request of quali14 fied housing finance agencies under this

15 subsection if the States or units of general

16 local governments, as designated by the

17 Secretary in accordance with regulations,

18 assume all of the responsibilities for envi19 ronmental review, decisionmaking, and ac20 tion pursuant to such Act, and such other

21 provisions of law as the regulations of the

22 Secretary specify, that would otherwise

23 apply to the Secretary with respect to the

24 commitment or endorsement of mortgage

25 insurance on particular properties.
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1 ‘‘(II) The Secretary shall issue regula2 tions to carry out this subparagraph only

3 after consultation with the Council on En4 vironmental Quality. Such regulations

5 shall, among other matters, provide for

6 monitoring of the performance of environ7 mental reviews under this subparagraph

8 and, in the discretion of the Secretary, for

9 the provision or facilitation of training for

10 such performance and suspension or termi11 nation of the assumption under clause (I).

12 The Secretary’s duty under the foregoing

13 sentence shall not be construed as being in

14 derogation of any responsibility assumed

15 by a State or unit of general local govern16 ment with respect to any particular prop17 erty under clause (I).

18 ‘‘(ii) PROCEDURE.—The Secretary

19 shall approve the commitment to insure

20 subject to the procedures authorized by

21 this paragraph only if, at least 15 days

22 prior to such approval and prior to any

23 commitment or endorsement of mortgage

24 insurance on the property the qualified

25 housing finance agency has submitted to
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1 the Secretary a request for such commit2 ment to insure accompanied by a certifi3 cation of the State or unit of general local

4 government which meets the requirements

5 of clause (iii). The Secretary’s approval of

6 any such certification shall be deemed to

7 satisfy the Secretary’s responsibilities

8 under the National Environmental Policy

9 Act of 1969 and such other provisions of

10 law as the regulations of the Secretary

11 specify insofar as those responsibilities re12 late to the commitment or endorsement of

13 mortgage insurance on the property which

14 is covered by such certification.

15 ‘‘(iii) CERTIFICATION.—A certification

16 under the procedures authorized by this

17 paragraph shall—

18 ‘‘(I) be in a form acceptable to

19 the Secretary,

20 ‘‘(II) be executed by the chief ex21 ecutive officer or other officer of the

22 State or unit of general local govern23 ment who qualifies under regulations

24 of the Secretary,
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1 ‘‘(III) specify that the State or

2 unit of general local government

3 under this section has fully carried

4 out its responsibilities as described

5 under clause (i), and

6 ‘‘(IV) specify that the certifying

7 officer consents to assume the status

8 of a responsible Federal official under

9 the National Environmental Policy

10 Act of 1969 and each provision of law

11 specified in regulations issued by the

12 Secretary insofar as the provisions of

13 such Act or other such provision of

14 law apply pursuant to clause (i), and

15 is authorized and consents on behalf

16 of the State or unit of general local

17 government and himself or herself to

18 accept the jurisdiction of the Federal

19 courts for the purpose of enforcement

20 of the responsibilities as such an offi21 cial.

22 ‘‘(B) LEAD-BASED PAINT POISONING PRE23 VENTION.—In carrying out the requirements of

24 section 302 of the Lead-Based Paint Poisoning

25 Prevention Act (42 U.S.C. 4822), the Secretary
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1 may provide by regulation for the assumption of

2 all or part of the Secretary’s duties under such

3 Act by qualified housing finance agencies, for

4 purposes of this section.

5 ‘‘(C) CERTIFICATION OF SUBSIDY

6 LAYERING COMPLIANCE.—The requirements of

7 section 102(d) of the Department of Housing

8 and Urban Development Reform Act of 1989

9 shall be satisfied in connection with a commit10 ment to insure a mortgage under this sub11 section by a certification by a qualified housing

12 finance agency to the Secretary that the com13 bination of Federal assistance provided in con14 nection with a property for which a mortgage is

15 to be insured shall not be any more than is nec16 essary to provide affordable housing.

17 ‘‘(10) As used in this section—

18 ‘‘(A) the term ‘mortgage’ means a first

19 mortgage on real estate that is—

20 ‘‘(i) owned in fee simple; or

21 ‘‘(ii) on a leasehold—

22 ‘‘(I) under a lease for not less

23 than 99 years which is renewable; or

24 ‘‘(II) under a lease having a pe25 riod of not less than ten years to run
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1 beyond the maturity of the mortgage;

2 and

3 ‘‘(B) the term ‘first mortgage’ means a

4 single first lien given to secure advances on, or

5 the unpaid purchase price of, real estate, under

6 the laws of the State in which the real estate

7 is located, together with the credit instrument,

8 if any, secured thereby. Any other financing

9 permitted on property insured under this sec10 tion must be expressly subordinate to the in11 sured mortgage; and

12 ‘‘(C) the terms ‘unit of general local gov13 ernment’ and ‘State’ mean the same as defined

14 in section 102(a)(1) and (2), respectively, of the

15 Housing and Community Development Act of

16 1974.’’.

17 (b) Section 544(1) is amended to read as follows:

18 ‘‘(1) The term ‘multifamily housing’ means

19 housing accommodations on the mortgaged property

20 that are designed principally for residential use, con21 form to standards satisfactory to the Secretary, and

22 consist of not less than five rental units on one site.

23 These units may be detached, semi-detached, row

24 houses, or multifamily structures.’’.
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1 SUBSIDY LAYERING REVIEW

2 SEC. 312. Section 911 of the Housing and Commu3 nity Development Act of 1992 is amended by—

4 (1) striking subsection (a) and inserting in lieu

5 thereof the following:

6 ‘‘(a) CERTIFICATION OF SUBSIDY LAYERING COM7 PLIANCE.—The requirements of section 102(d) of the De8 partment of Housing and Urban Development Reform Act

9 of 1989 shall be satisfied in connection with projects re10 ceiving assistance within the jurisdiction of the Depart11 ment of Housing and Urban Development and under sec12 tion 42 of the Internal Revenue Code of 1986 by a certifi13 cation by a housing credit agency to the Secretary, submit14 ted in accordance with guidelines established by the Sec15 retary, that the combination of Federal assistance pro16 vided in connection with a property for which assistance

17 is to be provided within the jurisdiction of the Department

18 of Housing and Urban Development and under section 42

19 of the Internal Revenue Code of 1986 shall not be any

20 more than is necessary to provide affordable housing.’’;

21 and

22 (2) striking subsection (c) and inserting in lieu

23 thereof the following:

24 ‘‘(c) REVOCATION BY SECRETARY.—If the Secretary

25 determines that a housing credit agency has failed to com-
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1 ply with the guidelines established under subsection (a),

2 the Secretary may inform the housing credit agency that

3 it may no longer submit certification of subsidy layering

4 compliance under this section. In such circumstances, the

5 responsibilities of section 102(d) of the Housing and

6 Urban Development Reform Act for affected projects allo7 cated a low income housing tax credit pursuant to section

8 42 of the Internal Revenue Code of 1986 shall be carried

9 out by the Secretary.’’.

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