II

103D CONGRESS

2D SESSION S. 2049

To reduce homelessness, reform public housing, expand and preserve affordable housing and homeownership, ensure fair housing for all, empower

communities, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 26 (legislative day, APRIL 11), 1994

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 reduce homelessness, reform public housing, expand and

preserve affordable housing and homeownership, ensure

fair housing for all, empower communities, 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 Choice and Community Investment

6 Act of 1994’’.

7 (b) TABLE OF CONTENTS.—

TITLE I—ASSISTANCE FOR THE HOMELESS
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Subtitle A—Reorganization of the Stewart B. McKinney Homeless Assistance

Act

Sec. 101. Short title.

Sec. 102. Findings and purposes.

Sec. 103. Definitions.

Sec. 104. Authorizations.

Sec. 105. Application.

Sec. 106. Eligible activities.

Sec. 107. Allocation and distribution of funds.

Sec. 108. Administration of program.

Sec. 109. Citizen participation.

Sec. 110. Reports, reviews, and audits.

Sec. 111. Nondiscrimination in programs and activities.

Sec. 112. Consultation.

Sec. 113. Records, reports, and audits.

Sec. 114. Reports to Congress.

Sec. 115. Innovative Homeless Program.

Subtitle B—Emergency Food and Shelter

Sec. 121. Transfer of the Emergency Food and Shelter Program from FEMA

to HUD.

TITLE II—PUBLIC AND INDIAN HOUSING; CROSS-CUTTING

AUTHORIZATIONS

Subtitle A—Enhance Flexibility for Public Housing Agencies

Sec. 201. Direct loans for modernization and replacement housing.

Sec. 202. Use of modernization funds for replacement housing.

Sec. 203. Facilitate use of public-private partnerships in modernizing public

housing.

Sec. 204. Modification of the Early Childhood Development Program.

Sec. 205. Entrepreneurial PHA’s and RMC’s.

Sec. 206. Disallowance of earned income for residents who obtain employment.

Sec. 207. Ceiling rents based on reasonable rental value.

Sec. 208. Authorization to sell public housing to nonprofit organizations.

Subtitle B—Severely Distressed Public Housing Program

Sec. 211. Revitalization of severely distressed public housing.

Sec. 212. Modernization Program reserve funds.

Sec. 213. Eligibility of severely distressed public housing for public housing operating subsidies.

Sec. 214. Applicability of section 24 and URD statute and rules.

Subtitle C—Anti-Crime Initiatives

Sec. 221. Community partnerships against crime.

Sec. 222. Authority for assisted housing owners and public housing agencies to

ban guns.

Sec. 223. Make criminal records available for screening and evictions.

Subtitle D—Authorizations and Extensions

Sec. 231. Low-income housing.

Sec. 232. Public housing operating subsidies.
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Sec. 233. Family Self-Sufficiency Program.

Sec. 234. Public housing family investment centers.

Sec. 235. Revised Congregate Services Program.

Sec. 236. Indian Housing Loan Guarantee Program.

Subtitle E—Applicability

Sec. 241. Applicability of public housing amendments to Indian housing.

TITLE III—HOMEOWNERSHIP; FHA MORTGAGE INSURANCE

AUTHORIZATIONS

Subtitle A—Expand Single Family Homeownership Opportunities

Sec. 301. Single family mortgage insurance in revitalization area.

Sec. 302. Maximum dollar amount for FHA single family mortgages.

Sec. 303. Streamlined refinancing for HUD-held mortgages.

Sec. 304. Innovative affordable housing demonstrations.

Sec. 305. Single Family Risk-Sharing Mortgage Insurance Program.

Sec. 306. Homeownership counseling and outreach.

Subtitle B—National Homeownership Fund Demonstration

Sec. 311. Amendments to NAHA.

Subtitle C—Authorizations

Sec. 321. Flexible Subsidy Program.

Sec. 322. Service coordinators in multifamily housing.

Sec. 323. Limitation on GNMA guarantees for mortgage-backed securities.

Sec. 324. Limitation on FHA insuring authority.

TITLE IV—ECONOMIC OPPORTUNITY; EXPANSION OF

AFFORDABLE HOUSING

Subtitle A—Economic Opportunity

Sec. 401. Economic opportunities for residents in HUD-assisted programs.

Sec. 402. Resident Management/Tenant Opportunity Program.

Subtitle B—Section 8 Initiatives

Sec. 411. Choice in residency.

Sec. 412. Merger of the Certificate and Voucher programs.

Sec. 413. Section 8 certificate and voucher fees.

Subtitle C—Miscellaneous

Sec. 421. Section 811 rental assistance for persons with disabilities.

Sec. 422. Funding for supportive housing for the elderly and for persons with

disabilities.

Sec. 423. Youthbuild.

Sec. 424. HOPE authorization of appropriations.

Sec. 425. Authorization of appropriations for Housing Opportunities for Persons with AIDS Program.

TITLE V—PRESERVATION AND PRODUCTION

Sec. 501. Miscellaneous amendments to LIHPRHA.
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Sec. 502. Low-income housing preservation authorization of appropriations.

Sec. 503. FHA fund support of section 8 assistance for property disposition.

Sec. 504. HOME program loan guarantees.

Sec. 505. HOME authorization of appropriations.

Sec. 506. Extension of the section 221(g)(4) auction provisions.

Sec. 507. Extension of the multifamily mortgage credit demonstrations.

TITLE VI—EXPAND FAIR HOUSING

Sec. 601. Metropolitan areawide strategy demonstration.

Sec. 602. Expand use of amounts in section 213(d)(4) headquarters reserve in

connection with settlement of civil rights litigation.

Sec. 603. Making CDBG expenditures on fair housing activities eligible activities in their own right.

Sec. 604. Fair Housing Initiatives Program authorization of appropriations.

Sec. 605. Civil money penalties for violations of the HOME Mortgage Disclosure Act by nonsupervised mortgagees.

TITLE VII—COMMUNITY DEVELOPMENT AND EMPOWERMENT

Subtitle A—Neighborhood Leveraged Investments for Tomorrow (LIFT)

Program

Sec. 701. Authorization.

Sec. 702. Eligible neighborhoods.

Sec. 703. Eligible activities.

Sec. 704. Grants for neighborhood revitalization projects.

Sec. 705. Competitive grants for neighborhood revitalization projects.

Sec. 706. Records, reports, and audits.

Sec. 707. Training and information activities.

Sec. 708. Definitions.

Subtitle B—Community Viability Fund

Sec. 711. Program authorization.

Sec. 712. Savings provision.

Subtitle C—Colonias Assistance Program

Sec. 721. Authorization.

Sec. 722. Eligible activities.

Sec. 723. Model programs.

Sec. 724. Competitive grants.

Sec. 725. Records, reports, and audits.

Sec. 726. Definitions.

Sec. 727. Extension of Colonia Program under section 916 of the CranstonGonzalez National Affordable Housing Act.

Subtitle D—Zone Economic Development Initiative

Sec. 731. Authorization.

Sec. 732. Purpose.

Sec. 733. Eligible activities.

Sec. 734. Allocation of funds.

Sec. 735. Use in conjunction with loan guarantees.

Sec. 736. Records, reports, and audits.

Sec. 737. Funding authorization.
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Subtitle E—Authorizations of Appropriations

Sec. 741. Capacity building for community development and affordable housing.

Sec. 742. Community development block grants.

Sec. 743. Economic development initiative.

TITLE VIII—MANAGEMENT REFORM

Subtitle A—Improve the Allocation and Use of Assistance

Sec. 801. Limit section 8 contract rent adjustments for rents above section 8

existing housing FMR’s.

Sec. 802. Provide incentives to refinance high interest mortgages for section 8

projects.

Sec. 803. LMSA reforms.

Sec. 804. Reduce AAF for units where family has not moved since previous

year.

Sec. 805. Preference for working families.

Sec. 806. Use of technical assistance funds by or for HUD staff.

Subtitle B—Office of Public and Indian Housing

Sec. 811. Oversight, technical assistance, emergency action resources, and resident survey for public housing programs.

Sec. 812. Recapture of development amounts.

Subtitle C—Office of Housing

Sec. 821. Section 235 refinancing.

Sec. 822. Elimination of new activity in low-use FHA multifamily development

programs.

Sec. 823. Indemnification for project managers.

Subtitle D—Office of Community Planning and Development

Sec. 831. Management information systems.

Sec. 832. Use of UDAG recaptures.

Subtitle E—Nonjudicial Foreclosure of Defaulted Single Family Mortgages

Sec. 841. Short title.

Sec. 842. Findings and purpose.

Sec. 843. Definitions.

Sec. 844. Applicability.

Sec. 845. Designation of Foreclosure Commissioner.

Sec. 846. Prerequisites to foreclosure.

Sec. 847. Notice of foreclosure sale.

Sec. 848. Commencement of foreclosure.

Sec. 849. Service of notice of foreclosure sale.

Sec. 850. Presale reinstatement.

Sec. 851. Conduct of sale; adjournment.

Sec. 852. Foreclosure costs.

Sec. 853. Disposition of sale proceeds.

Sec. 854. Transfer of title and possession.

Sec. 855. Record of foreclosure and sale.

Sec. 856. Effect of sale.

Sec. 857. Computation of time.

Sec. 858. Separability.
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Sec. 859. Deficiency judgment.

TITLE IX—MISCELLANEOUS AMENDMENTS

Sec. 901. OFHEO assessment collection dates.

Sec. 902. Lead-based paint technical assistance amendments.

Sec. 903. Lead-based paint target housing hazard reduction program.

Sec. 904. HUD research and development.

1 TITLE I—ASSISTANCE FOR THE HOMELESS

2 Subtitle A—Reorganization of the Stewart B. McKinney

3 Homeless Assistance Act

4 SHORT TITLE

5 SEC. 101. This subtitle may be cited as the ‘‘Stewart

6 B. McKinney Homeless Housing Assistance Reorganiza7 tion Act of 1994’’.

8 FINDINGS AND PURPOSES

9 SEC. 102. (a) FINDINGS.—The Congress finds that—

10 (1) more Americans are homeless than at any

11 time since the Great Depression;

12 (2) homeless populations differ in different

13 parts of the country and require different types of

14 systems of varying sophistication to meet the needs

15 of those populations;

16 (3) the best approach for addressing this situa17 tion is to focus Federal homeless housing assistance

18 on a ‘‘continuum of care’’—a seamless process which

19 moves the homeless from the street into a system

20 which provides outreach and assessment, emergency

21 shelter, transitional housing, and permanent hous22 ing;
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1 (4) the Stewart B. McKinney Homeless Assist2 ance Act created emergency programs to solve spe3 cific homeless problems as they were identified, and

4 has evolved into an ad hoc approach of separate pro5 grams with separate means of distributing assist6 ance, separate rules, and separate reporting require7 ments, which tax the resources of the Department of

8 Housing and Urban Development, local govern9 ments, and not-for-profit homeless providers;

10 (5) the competitive process for distributing as11 sistance under these programs—

12 (A) restricts the flexibility of communities

13 to fashion homeless systems that meet the

14 needs of homeless persons in their areas;

15 (B) does not ensure that Federal resources

16 are targeted where the need is;

17 (C) results in unpredictable funding

18 streams which hinder communities’ ability to

19 plan, develop, and implement comprehensive

20 ‘‘continuum of care’’ systems to assist homeless

21 individuals and families; and

22 (D) impedes the integration and coordina23 tion of the resources—Federal, private, not-for24 profit, and local government—available within a

25 community; and
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1 (6) the current array of programs does not en2 sure that a community will have the tools to create

3 a ‘‘continuum of care’’ to address its homeless

4 needs.

5 (b) PURPOSES.—The purposes of this subtitle are

6 to—

7 (1) reorganize the McKinney Act homeless

8 housing assistance authorities, to assist States and

9 localities to use them more efficiently and effectively

10 through a comprehensive system involving a ‘‘contin11 uum of care’’ approach designed to meet the shelter,

12 service, and permanent housing needs of the Na13 tion’s homeless individuals and families;

14 (2) simplify and make more flexible the provi15 sion of Federal homeless assistance;

16 (3) encourage the cooperation and participation

17 of the States and units of general local government,

18 along with private non-profit organizations, in plan19 ning and implementing comprehensive homeless as20 sistance programs that are designed to meet the

21 array of service and shelter needs of the homeless

22 population toward the ultimate goal of assisting indi23 viduals and families to move to permanent housing

24 and self-sufficiency with supportive services, if nec25 essary, as quickly as possible;
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1 (4) maximize a community’s ability to imple2 ment a ‘‘continuum of care,’’ by working with local

3 groups and not-for-profit providers;

4 (5) assure private non-profit organizations and

5 community groups that HUD will administer the

6 grant if States or units of general local government

7 are reluctant to participate in the program estab8 lished by this subtitle;

9 (6) make more efficient and equitable the man10 ner in which the Department of Housing and Urban

11 Development distributes Federal homeless assist12 ance, and to reduce the burden on the Department’s

13 staff in managing numerous competitions for grants

14 so that its limited staff can focus on providing tech15 nical support, analysis, and evaluation to better en16 able States, units of general local government, and

17 non-profit providers to use Federal homeless assist18 ance;

19 (7) reduce the costs to States, units of general

20 local government, and private non-profit organiza21 tions in applying for and using the assistance; and

22 (8) begin the process of moving toward the goal

23 of meeting the needs of most of the Nation’s home24 less population through the mainstream programs as

25 the Federal resources supporting these programs be-
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1 come available, in accordance with the Nation’s Plan

2 to End Homelessness.

3 DEFINITIONS

4 SEC. 103. As used in this subtitle:

5 (1) The term ‘‘Act’’ means the Stewart B.

6 McKinney Homeless Assistance Act.

7 (2) The term ‘‘applicant’’ means a grantee sub8 mitting an application under section 105.

9 (3) The term ‘‘allocation unit of general local

10 government’’ means a metropolitan city and an

11 urban county.

12 (4) The term ‘‘grantee’’ means—

13 (A) an allocation unit of general local gov14 ernment, Indian tribe, or Insular Area that ad15 ministers a grant under section 108(a)(1);

16 (B) an allocation unit of general local gov17 ernment, Indian tribe, or Insular Area that des18 ignates a public agency or a private non-profit

19 organization (or a consortium of such organiza20 tions) to administer grant amounts instead of

21 the jurisdiction under section 108(a)(2);

22 (C) a public agency or a private non-profit

23 organization (or a consortium of such organiza24 tions) designated by the Secretary under section

25 108(a)(3) to administer grant amounts instead
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1 of an allocation unit of general local govern2 ment, Indian tribe, or Insular Area;

3 (D) an entity receiving grant amounts

4 from the Secretary under section 108(a)(4);

5 (E) a State administering a grant under

6 section 108(b)(1)(A);

7 (F) a unit of general local government re8 ceiving a grant from the Secretary under sec9 tion 108(b)(5); and

10 (G) a private non-profit organization re11 ceiving a grant from the Secretary under sec12 tion 108(b)(4).

13 (5) The term ‘‘homeless individual’’ has the

14 meaning given such term in section 103 of the Act.

15 (6) The term ‘‘homeless family’’ means a group

16 of one or more related individuals who are homeless

17 individuals.

18 (7) The term ‘‘Indian tribe’’ means any Indian

19 tribe, band, group, and nation, including Alaska In20 dians, Aleuts, and Eskimos, and any Alaskan Native

21 Village, of the United States, which is considered an

22 eligible recipient under the Indian Self-Determina23 tion and Education Assistance Act (Public Law 93–

24 638) or was considered an eligible recipient under
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1 chapter 67 of title 31, United States Code, before

2 the repeal of such chapter.

3 (8) The term ‘‘Insular Area’’ means the Virgin

4 Islands, Guam, American Samoa, and the Northern

5 Mariana Islands.

6 (9) The term ‘‘metropolitan city’’ has the mean7 ing given the term in section 102(a)(4) of the Hous8 ing and Community Development Act of 1974.

9 (10) The term ‘‘private non-profit organization’’

10 means an organization—

11 (A) no part of the net earnings of which

12 inures to the benefit of any member, founder,

13 contributor, or individual;

14 (B) that has a voluntary board;

15 (C) that has an accounting system, or has

16 designated a fiscal agent in accordance with re17 quirements established by the Secretary; and

18 (D) that practices nondiscrimination in the

19 provision of assistance.

20 (11) The term ‘‘recipient’’ means a grantee

21 (other than a State distributing grant amounts to

22 State recipients) and a State recipient.

23 (12) The term ‘‘Secretary’’ means the Secretary

24 of Housing and Urban Development.
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1 (13) The term ‘‘State’’ means each of the sev2 eral States and the Commonwealth of Puerto Rico.

3 (14) The term ‘‘State recipient’’ means—

4 (A) a unit of general local government

5 within the State (other than an allocation unit

6 of general local government) that receives grant

7 amounts from the State under section

8 108(b)(3); and

9 (B) a private non-profit organization re10 ceiving grant amounts from the State under

11 section 108(b)(4).

12 (15) The term ‘‘unit of general local govern13 ment’’ means—

14 (A) a city, town, township, county, parish,

15 village, or other general purpose political sub16 division of a State;

17 (B) the District of Columbia; and

18 (C) any agency or instrumentality thereof

19 that is established pursuant to legislation and

20 designated by the chief executive to act on be21 half of the jurisdiction with regard to provisions

22 of this subtitle.

23 The term includes a consortium of geographically

24 contiguous units of general local government if the

25 Secretary determines that the consortium—
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1 (i) has sufficient authority and administra2 tive capability to carry out the purposes of this

3 subtitle on behalf of its member jurisdictions;

4 and

5 (ii) will, according to a written certification

6 by the State (or States, if the consortium in7 cludes jurisdictions in more than one State), di8 rect its activities to alleviation of problems of

9 homeless individuals or families within the

10 State or States.

11 (16) The term ‘‘urban county’’ has the meaning

12 given the term in section 102(a)(6) of the Housing

13 and Community Development Act of 1974

14 AUTHORIZATIONS

15 SEC. 104. (a) IN GENERAL.—The Secretary is au16 thorized to make grants, in accordance with the provisions

17 of this subtitle, to grantees to carry out activities to assist

18 homeless individuals and families in support of com19 prehensive homeless assistance systems.

20 (b) FUNDING AMOUNTS.—For purposes of this sub21 title, there are authorized to be appropriated

22 $1,020,000,000 for fiscal year 1995, and such sums as

23 may be necessary for each of fiscal years 1996 and 1997.

24 Any amounts appropriated shall remain available until ex25 pended.

26 (c) AWARDING OF GRANTS.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the Secretary shall distribute amounts ap3 propriated under subsection (b) to grantees under

4 this subtitle.

5 (2) INSUFFICIENT APPROPRIATIONS.—

6 (A) If the amounts appropriated under

7 subsection (b) for any fiscal year are less than

8 50 percent of the amount authorized to be ap9 propriated under that subsection for that year,

10 the Secretary shall distribute the amounts ap11 propriated to States, units of general local gov12 ernment, Indian tribes, Insular Areas, and pri13 vate non-profit organizations on the basis of a

14 competition.

15 (B) Grants under this paragraph shall be

16 subject to the provisions of this subtitle, except

17 such provisions as the Secretary determines are

18 inconsistent with the purposes of this para19 graph. The Secretary shall establish such addi20 tional or alternative requirements for grants

21 under this paragraph as the Secretary deems

22 appropriate, which shall include requirements

23 for applying for, and criteria for awarding, such

24 grants.
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1 (C) The criteria for awarding grants re2 ferred to in subparagraph (B) shall include—

3 (i) the extent to which there is a need

4 for assistance for homeless individuals and

5 families in the jurisdiction;

6 (ii) the extent to which the proposed

7 activities further the establishment and

8 maintenance of the comprehensive home9 less assistance system referred to in sec10 tion 105(b)(1)(C);

11 (iii) the extent to which private non12 profit organizations providing assistance to

13 homeless individuals and families in the ju14 risdiction have been, and will be, included

15 in planning for the receipt of assistance

16 under this subtitle, the development of the

17 application under section 105, and the exe18 cution of the proposed activities;

19 (iv) the extent to which homeless indi20 viduals and families will proceed with ap21 propriate expedition through the com22 prehensive homeless assistance system and

23 into permanent housing; and

24 (v) such other criteria as the Sec25 retary deems appropriate to further the
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1 purposes of this paragraph and this sub2 title.

3 (D) The Secretary is authorized to set

4 aside such amounts as the Secretary deems ap5 propriate for grants under this paragraph for

6 Indian tribes and Insular Areas.

7 APPLICATION

8 SEC. 105. (a) IN GENERAL.—Each applicant shall

9 submit an application in such form and in accordance with

10 such procedures as the Secretary shall establish.

11 (b) MINIMUM REQUIREMENTS.—An application

12 under this section shall at a minimum—

13 (1) on the basis of information provided in the

14 current comprehensive affordable housing strategy

15 for the appropriate jurisdiction under section 105 of

16 the Cranston-Gonzalez National Affordable Housing

17 Act, or such other plan as the Secretary may pre18 scribe, set forth for the jurisdiction—

19 (A) a detailed description of the current

20 population of homeless individuals and families;

21 (B) the current facilities and services de22 signed to assist that population; and

23 (C) the comprehensive homeless assistance

24 system to be established and maintained within

25 the jurisdiction (a ‘‘continuum of care’’), which

26 shall include at a minimum—
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1 (i) a system of outreach and assess2 ment for—

3 (I) determining whether an indi4 vidual or family is homeless, needs as5 sistance to avoid becoming homeless,

6 or needs other assistance; and

7 (II) ensuring that individuals and

8 families that are so identified receive

9 appropriate housing and supportive

10 services (which may include services

11 with respect to health, mental health,

12 substance abuse, family support, edu13 cation, and child care, and services di14 rected toward obtaining appropriate

15 income support, including employment

16 training);

17 (ii) the availability of emergency shel18 ters with appropriate supportive services to

19 ensure that homeless individuals and fami20 lies for which such housing is appropriate

21 receive adequate shelter, including during

22 the period in which the assessment re23 ferred to in clause (i) is being performed;

24 (iii) the availability of transitional

25 housing with appropriate supportive serv-
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1 ices to ensure that homeless individuals

2 and families for which such housing is ap3 propriate are prepared for increased re4 sponsibility and permanent housing, or

5 permanent supportive housing, after the

6 transition period;

7 (iv) the availability of permanent

8 housing, or permanent supportive housing,

9 adequate to meet the long-term housing

10 needs of all homeless individuals and fami11 lies; and

12 (v) linkages between assistance pro13 vided under this subtitle and assistance

14 provided under other Federal, State, and

15 local programs that may be used to assist

16 homeless individuals and families, such

17 as—

18 (I) assistance under the Public

19 and Indian Housing and section 8

20 Programs under the United States

21 Housing Act of 1937, the Home In22 vestment Partnerships Act, and the

23 Community Development Block Grant

24 Program under title I of the Housing
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1 and Community Development Act of

2 1974;

3 (II) programs administered by

4 the Secretary of Labor;

5 (III) health, social service, and

6 income support services;

7 (IV) programs designed to assist

8 homeless veterans;

9 (V) adult education, employment

10 training, and education for homeless

11 children and youth; and

12 (VI) national service;

13 (2) provide an assessment of what is required

14 to establish and maintain the comprehensive system

15 referred to in paragraph (1)(C);

16 (3) set forth a multi-year strategy for establish17 ing and maintaining the system, including appro18 priate timetables, milestones, and budget estimates

19 for accomplishing each element of the strategy;

20 (4) set forth a 1-year action plan, identifying all

21 activities to be carried out with assistance under this

22 subtitle and demonstrating how these activities will

23 further the strategy referred to in paragraph (3);

24 (5) describe the means the applicant (other

25 than a State distributing grant amounts to State re-
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1 cipients under section 108(b)(2)) will use to distrib2 ute grant amounts to subgrantees, including whether

3 such amounts will be awarded on a competitive or

4 non-competitive basis;

5 (6) demonstrate that the local board referred to

6 in section 109(b) has signed the application;

7 (7) contain certifications or other such forms of

8 proof of commitments of financial and other re9 sources from each public agency or private non-prof10 it organization that has a role in establishing and

11 maintaining the comprehensive homeless assistance

12 system;

13 (8) contain assurances satisfactory to the Sec14 retary that activities carried out under section 106

15 will meet the requirements of the Act, as provide in

16 section 106(b);

17 (9) in the case of States distributing grant

18 amounts to State recipients, describe the method of

19 distribution;

20 (10) except for grant amounts that States will

21 distribute to State recipients, contain a certification

22 from the public official responsible for submitting

23 the comprehensive housing affordability strategy

24 under section 105 of the Cranston-Gonzalez Na25 tional Affordable Housing Act for the State or unit
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1 of general local government within which the project

2 is located that the proposed project is consistent

3 with the approved housing strategy of such State or

4 unit of general local government;

5 (11) contain a certification that the applicant

6 will comply with the requirements of the Fair Hous7 ing Act, title VI of the Civil Rights Act of 1964, sec8 tion 504 of the Rehabilitation Act of 1973, and the

9 Age Discrimination Act of 1975, and will affirma10 tively further fair housing; and

11 (12) contain a certification that the applicant

12 will comply with the requirements of this subtitle

13 and other applicable laws.

14 ELIGIBLE ACTIVITIES

15 SEC. 106. (a) IN GENERAL.—Recipients may only

16 carry out the following activities with grant amounts

17 under this subtitle:

18 (1) Activities eligible for assistance under the

19 following provisions of the Act:

20 (A) Emergency shelters under subtitle B of

21 title IV.

22 (B) Transitional housing under subtitle C

23 of title IV.

24 (C) Safe havens under subtitle D of title

25 IV.
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1 (D) Single room occupancy dwellings

2 under section 441.

3 (E) Shelter plus care under subtitle F of

4 title IV.

5 (F) Rural homeless housing assistance

6 under subtitle G of title IV.

7 (2) Permanent housing meeting such require8 ments as the Secretary shall prescribe.

9 (3)(A) For the first year in which a recipient

10 receives grant amounts under this subtitle, adminis11 trative expenses in connection with planning the de12 velopment of, and establishing, its program under

13 this subtitle.

14 (B) In subsequent years, defraying the cost of

15 administering the program.

16 (C) In all years, defraying the cost of constitut17 ing and operating the local board referred to in sec18 tion 109(b).

19 Except that not more than 5 percent of any amounts

20 provided to a recipient under this subtitle for a fiscal

21 year may be used for activities under this para22 graph.

23 (4) Building the capacity of private non-profit

24 organizations to participate in the comprehensive

25 homeless assistance system of the recipient, except
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1 that not more than 2 percent of any amounts pro2 vided to a recipient under this subtitle for a fiscal

3 year may be used for activities under this para4 graph.

5 (b) PROGRAM REQUIREMENTS.—Activities assisted

6 under this subtitle shall comply with all applicable require7 ments of the Act, except those that the Secretary deter8 mines are inconsistent with the provisions or purposes of

9 this subtitle.

10 (c) MATCHING FUNDING.—

11 (1) IN GENERAL.—Each recipient shall ensure

12 that contributions totaling not less than 25 percent

13 of the grant amounts made available to the recipient

14 for any fiscal year under this subtitle shall be pro15 vided from non-Federal sources, as defined by the

16 Secretary, to carry out the homeless assistance pro17 gram of the recipient. Each recipient shall certify to

18 the Secretary that it has complied with this section,

19 and shall include with the certification a description

20 of the sources and amounts of the matching funds.

21 (2) WAIVERS.—A recipient may request that

22 the Secretary reduce or waive the matching require23 ment of paragraph (2). The request shall be in a

24 form and manner prescribed by the Secretary, and

25 shall demonstrate that the recipient lacks the fi-
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1 nances and other resources to meet the requirement.

2 The Secretary may grant the request, if the Sec3 retary determines that imposition of the match—

4 (A) would create a significant hardship for

5 the recipient; and

6 (B) would thwart the overall purpose of

7 the homeless assistance program of the recipi8 ent.

9 (3) CALCULATION OF AMOUNTS.—In calculat10 ing the amount of matching funds required under

11 paragraph (1), a recipient may include—

12 (A) any funds derived from a non-Federal

13 source;

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

15 (C) any salary paid to staff to carry out

16 the program of the recipient;

17 (D) the value of the time and services con18 tributed by volunteers, at a rate determined by

19 the Secretary; and

20 (E) the proceeds from bond financing val21 idly issued by a State or local government,

22 agency, or instrumentality thereof, or political

23 subdivision thereof, and repayable with revenues

24 derived from a project assisted under this sub25 title, but not more than 25 percent of the con-
26

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1 tribution required under paragraph (1) may be

2 derived from this source.

3 (d) LIMITATION ON USE OF FUNDS.—No assistance

4 received under this subtitle (or any State or local govern5 ment funds used to supplement such assistance) may be

6 used to replace other funds previously used, or designated

7 for use, by the State, unit of general local government,

8 Indian tribe, or Insular Area to assist homeless individuals

9 and families.

10 (e) NON-PROFIT HOMELESS PROVIDERS.—Each re11 cipient shall make available at least 51 percent of the

12 grant amounts it receives for any fiscal year to private

13 non-profit organizations that provide assistance to home14 less individuals and families to carry out activities under

15 this subtitle. Such organizations shall meet such minimum

16 standards as the Secretary deems appropriate.

17 (f) ADMINISTRATIVE EXPENSES FOR CERTAIN ENTI18 TIES.—An allocation unit of general local government, In19 dian tribe, or Insular Area, or a State recipient, that des20 ignates a public agency or a private non-profit organiza21 tion (as provided by sections 108 (a)(2) and

22 (b)(3)(A)(i)(II), respectively), or a State recipient that en23 ters into an agreement with a State (as provided by sec24 tion 108(b)(3)(A)(i)(III)), shall make available, to defray

25 the administrative expenses of the designee or the State,
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1 such sums as the Secretary deems appropriate from

2 amounts eligible for this purpose under subsection (a)(2).

3 ALLOCATION AND DISTRIBUTION OF FUNDS

4 SEC. 107. (a) INSULAR AREAS.—For each fiscal year,

5 the Secretary shall allocate assistance under this subtitle

6 to Insular Areas in accordance with an allocation formula

7 established by the Secretary.

8 (b) STATES AND ALLOCATION UNITS OF GENERAL

9 LOCAL GOVERNMENT.—

10 (1) FORMULA ALLOCATION.—

11 (A) For each fiscal year, of the amounts

12 that remain after amounts are reserved for In13 sular Areas under subsection (a), the Secretary

14 shall allocate assistance according to the for15 mula described in subparagraph (B) or such

16 other formula as may hereafter be enacted into

17 law.

18 (B)(i) The Secretary shall allocate

19 amounts for allocation units of general local

20 government and States, and for Indian tribes,

21 in a manner that ensures that the percentage of

22 the total amount available under this subtitle

23 for any fiscal year that is allocated for any

24 State or allocation unit of general local govern25 ment, or for Indian tribes, is equal to the per26 centage of the total amount available for section
28

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1 106 of the Housing and Community Develop2 ment Act of 1974 for such prior fiscal year that

3 is allocated for such State or allocation unit of

4 general local government, or for Indian tribes.

5 (ii) If under the allocation provisions appli6 cable under this subtitle, any allocation unit of

7 general local government would receive a grant

8 of less than 0.05 percent of the amounts appro9 priated to carry out this subtitle for any fiscal

10 year, such amount shall instead be reallocated

11 to the State for use under section 108(b), ex12 cept that any city that is located in the State

13 that does not have counties as local govern14 ments; that has a population greater than

15 40,000, but less than 50,000, as used in deter16 mining the fiscal year 1987 Community Devel17 opment Block Grant Program allocation; and

18 that was allocated in excess of $1,000,000 in

19 community development block grant funds in

20 fiscal year 1987 shall receive directly the

21 amount located to such city under subsection

22 (a).

23 (iii)(I) All amounts allocated pursuant to

24 the preceding clauses for units of general local

25 government shall be increased on a pro rata
29

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1 basis until the aggregate of such amounts

2 equals 75 percent of the amounts appropriated

3 under this subtitle for each year.

4 (II) All amounts allocated pursuant to the

5 preceding clauses for States shall be decreased

6 on a pro rata basis until the aggregate of such

7 amounts equals 25 percent of the amounts ap8 propriated under this subtitle for each year.

9 (2) DETERMINATION OF GRANT AMOUNT FOR

10 STATES AND ALLOCATION UNITS OF GENERAL

11 LOCAL GOVERNMENT.—The formula amount deter12 mined for an allocation unit of general local govern13 ment or a State, under paragraph (1) shall be the

14 maximum amount that the jurisdiction is eligible to

15 receive. The Secretary may provide a grant for a

16 State or for an allocation unit of general local gov17 ernment for an amount less than the formula

18 amount, if the Secretary determines that such action

19 is appropriate based upon review of the application

20 under section 105 or as a result of the annual per21 formance review and audit under section 110.

22 (c) REALLOCATIONS.—Any amounts that a State or

23 an allocation unit of general local government is eligible

24 to receive under subsection (b) that are not received for

25 use in the jurisdiction, as provided by section 108 (a) and
30

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1 (b), or that become available as a result of actions under

2 section 110(b), shall be added to amounts available for

3 allocation under section 107 for the succeeding fiscal year.

4 ADMINISTRATION OF PROGRAM

5 SEC. 108. (a) ALLOCATION UNITS OF GENERAL

6 LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR

7 AREAS.—

8 (1) IN GENERAL.—Except as provided in para9 graphs (2), (3), and (4), an allocation unit of gen10 eral local government, Indian tribe, or Insular Area

11 shall administer grant amounts received under sec12 tion 107 for any fiscal year.

13 (2) AGENCIES AND ORGANIZATIONS DES14 IGNATED BY JURISDICTION.—

15 (A) An allocation unit of general local gov16 ernment, Indian tribe, or Insular Area may

17 elect for any fiscal year to designate a public

18 agency or a private non-profit organization (or

19 a consortium of such organizations) to admin20 ister grant amounts under section 107 instead

21 of the jurisdiction.

22 (B) The Secretary shall prescribe the man23 ner and time for making an election under sub24 paragraph (A), and shall establish criteria for

25 the approval of agencies and organizations,

26 which shall include demonstrated experience of
31

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1 the entity in providing assistance to homeless

2 individuals and families in the jurisdiction.

3 (C) The allocation unit of general local

4 government, Indian tribe, or Insular Area shall

5 remain both the grantee and the recipient for

6 purposes of this subtitle. The Secretary may, at

7 the request of the jurisdiction, provide grant

8 amounts directly to the agency or organization

9 designated under this paragraph.

10 (3) AGENCIES AND ORGANIZATIONS DES11 IGNATED BY HUD.—If an allocation unit of general

12 local government, Indian tribe, or Insular Area, or

13 (if appropriate) a public agency or private non-profit

14 organization designated by the jurisdiction under

15 paragraph (2), does not receive a grant under sec16 tion 107 for any fiscal year because of failure to

17 meet the application requirements of section 105,

18 the Secretary is authorized to designate an agency

19 or organization meeting the approval criteria re20 ferred to in paragraph (2). Any agency or organiza21 tion so designated shall be both the grantee and re22 cipient for purposes of this subtitle.

23 (4) ADMINISTRATION OF GRANT BY HUD.—If

24 for any fiscal year the Secretary determines that

25 amounts allocated for an allocation unit of general
32

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1 local government, Indian tribe, or Insular Area will

2 not be used in the jurisdiction, as provided by the

3 preceding provisions of this subsection, the Secretary

4 is authorized to administer such amounts instead of

5 the jurisdiction. The Secretary shall prescribe such

6 procedures and requirements as the Secretary deems

7 appropriate for administering grant amounts under

8 this paragraph.

9 (b) STATES.—

10 (1) IN GENERAL.—States shall elect—

11 (A) to administer grant amounts received

12 under section 107, as provided by paragraphs

13 (2) and (3); or

14 (B) to have the Secretary administer these

15 amounts instead of the State, as provided by

16 paragraph (5).

17 If a State elects to administer grant amounts under

18 subparagraph (A), the election shall be permanent

19 and final.

20 (2) STATE PROGRAM.—Of amounts referred to

21 in paragraph (1)(A), the State—

22 (A) may use up to 15 percent of carry out

23 its own homeless assistance program under this

24 subtitle, except that these amounts may only be

25 used for eligible activities under section
33

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1 106(a)(1) for which States are eligible recipi2 ents under the Act; and

3 (B) shall distribute the remaining amounts

4 to State recipients for use under this subtitle.

5 Grants to States may only be used to carry out

6 activities in areas of the State outside allocation

7 units of general local government.

8 (3) DISTRIBUTION OF AMOUNTS TO STATE RE9 CIPIENTS.—

10 (A)(i) A State distributing amounts to

11 State recipients under paragraph (1)(A) shall,

12 for each fiscal year, afford each such recipient

13 the options of—

14 (I) administering the grant amounts

15 on it own behalf;

16 (II) designating a public agency or a

17 private non-profit organization (as pro18 vided by subsection (a)(2)) to administer

19 the grant amounts instead of the jurisdic20 tion; or

21 (III) entering into an agreement with

22 the State, in consultation with private non23 profit organizations providing assistance to

24 homeless individuals and families in the ju25 risdiction, under which the State will ad-
34

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1 minister the grant amounts instead of the

2 jurisdiction.

3 These options shall be exercised at such time

4 and in accordance with such criteria as the Sec5 retary may prescribe.

6 (ii) A State recipient designating an agen7 cy or organization as provided by clause (i)(II),

8 or entering into an agreement with the State

9 under clause (i)(III), shall remain the recipient

10 for purposes of this subtitle. The State may, at

11 the request of the State recipient, provide grant

12 amounts directly to the agency or organization

13 designated under clause (i))(II).

14 (B) The State shall distribute amounts to

15 State recipients (or to agencies or organizations

16 designated under subparagraph (A)(i))(II), as

17 appropriate) on the basis of an application con18 taining such information as the Secretary may

19 prescribe. Each application shall evidence an in20 tent to establish a comprehensive homeless as21 sistance system, except that the State may

22 waive this requirement with respect to one or

23 more proposed activities, where the State deter24 mines that—
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1 (i) the activities are necessary to meet

2 the needs of homeless individuals and fam3 ilies within the jurisdiction; and

4 (ii) a comprehensive homeless assist5 ance system is not necessary, due to the

6 nature and extent of homelessness in the

7 jurisdiction.

8 (C) In selecting State recipients and mak9 ing awards under subparagraph (B), the State

10 shall give preference to applications (in accord11 ance with criteria prescribed by the Secretary)

12 that demonstrate higher relative levels of home13 less need and fiscal distress.

14 (D) Each State distributing grant amounts

15 to State recipients under paragraph (2)(B) may

16 retain not to exceed 5 percent of the amount to

17 be used for this purpose to defray the cost of

18 carrying out its responsibilities under this sub19 title.

20 (4) STATE OR HUD ADMINISTRATION OF

21 GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in

22 any fiscal year a State distributes grant amounts to

23 a State recipient, but the recipient fails to receive

24 the amounts pursuant to paragraph (3)(A)(i), the

25 Secretary or the State, as the Secretary may pro-
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1 vide, may distribute the amounts to private non2 profit organizations in the jurisdiction. If the Sec3 retary distributes the amounts, the Secretary shall

4 deduct the amounts distributed from the grant pro5 vided to the State for that fiscal year.

6 (5) HUD ADMINISTRATION OF STATE PRO7 GRAM.—If a State elects to have the Secretary ad8 minister its grant amounts under section 107, as

9 provided by paragraph (1), the Secretary is author10 ized to distribute grant amounts to State recipients

11 instead of the State, in accordance with require12 ments and procedures prescribed by the Secretary.

13 The Secretary shall establish criteria for selecting

14 recipients and making awards under this paragraph,

15 which shall include giving preference to applications

16 that demonstrate higher relative levels of homeless

17 need and fiscal distress.

18 CITIZEN PARTICIPATION

19 SEC. 109. (a) IN GENERAL.—Each recipient shall en20 sure that citizens, and appropriate private nonprofit orga21 nizations and other interested groups and entities, partici22 pate fully in the development and carrying out of the pro23 gram authorized under this subtitle. The Secretary shall

24 prescribe such requirements to carry out this section as

25 the Secretary deems appropriate, which shall include re26 quirements applicable to the local boards referred to in
37

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1 subsection (b) and the citizen participation provisions of

2 subsection (c), and the timing of, and sequence for, carry3 ing out the requirements of those subsections.

4 (b) LOCAL BOARDS.—

5 (1) ESTABLISHMENT AND FUNCTION.—Each

6 recipient shall establish and support a local board,

7 which shall assist the recipient in—

8 (A) determining whether the grant should

9 be administered by the recipient, a public agen10 cy or private non-profit organization, or the

11 State or the Secretary, as appropriate, under

12 sections 108 (a) and (b);

13 (B) developing the application under sec14 tion 105;

15 (C) overseeing the activities carried out

16 with assistance under this subtitle; and

17 (D) evaluating the performance of the re18 cipient in carrying out these activities.

19 (2) COMPOSITION OF BOARD.—The local board

20 shall consist of—

21 (A) at least one member representing each

22 of the following groups—

23 (i) homeless individuals and families;

24 (ii) homeless advocates;
38

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1 (iii) individuals and entities providing

2 assistance to homeless individuals and

3 families;

4 (iv) the business community; and

5 (v) neighborhood advocates;

6 (B) in the case of a recipient that is a

7 State, one member representing the State agen8 cy or instrumentality dealing with mental

9 health;

10 (C) not more than one member represent11 ing the recipient; and

12 (D) such other individuals and entities as

13 the Secretary shall prescribe.

14 (3) DISTRIBUTION OF MEMBERSHIP.—At least

15 51 percent of the membership of the board shall

16 have been nominated by individuals and entities

17 other than a governmental jurisdiction.

18 (4) BOARD SIGN-OFF.—

19 (A) No applicant may submit an applica20 tion to the Secretary under section 105, and no

21 grantee may submit to the Secretary a perform22 ance report under subsection 110(a), unless the

23 board signs the document.

24 (B) No state recipient may submit an ap25 plication under section 108(b)(3) or a perform-
39

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1 ance report to a State, unless the board signs

2 the document.

3 (5) REVIEW BY SECRETARY.—If the board or

4 other members of the community believe that the

5 process for constituting or operating the board is

6 unfair, they may ask the Secretary to review the

7 matter. The Secretary shall attempt to resolve the

8 problem and where the Secretary finds that the

9 process is unfair, the Secretary may disapprove an

10 application under section 105 or refuse to accept a

11 performance report under section 110(a).

12 (6) CONFLICTS OF INTEREST.—The Secretary

13 shall prescribe standards governing potential con14 flicts of interest under which members of local

15 boards may participate in activities carried out

16 under this subtitle.

17 (c) INVOLVEMENT OF CITIZENS AND OTHERS.—

18 (1) IN GENERAL.—Each recipient shall—

19 (A) make available to its citizens, public

20 agencies, and other interested parties informa21 tion concerning the amount of assistance the ju22 risdiction expects to receive and the range of

23 activities that may be undertaken with the as24 sistance;
40

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1 (B) publish the proposed application in a

2 manner that, in the determination of the Sec3 retary, affords affected citizens, public agencies,

4 and other interested parties a reasonable oppor5 tunity to examine its content and to submit

6 comments on it;

7 (C) hold one or more public hearings to ob8 tain the views of citizens, public agencies, and

9 other interested parties on the housing needs of

10 the jurisdiction; and

11 (D) provide citizens, public agencies, and

12 other interested parties with reasonable access

13 to records regarding any uses of any assistance

14 the recipient may have received during the pre15 ceding 5 years.

16 (2) NOTICE AND COMMENT.—Before submitting

17 any performance report under section 110(a) or sub18 stantial amendment to an application under section

19 105, a recipient shall provide citizens with reason20 able notice of, and opportunity to comment on, such

21 performance report or application before its submis22 sion.

23 (3) CONSIDERATION OF COMMENTS.—A recipi24 ent shall consider any comments or views of citizens

25 in preparing a final application, amendment to an
41

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1 application or performance report for submission. A

2 summary of such comments or views shall be at3 tached when an application, amendment to an appli4 cation, or performance report is submitted. The sub5 mitted application, amendment, or report shall be

6 made available to the public.

7 (4) AUTHORITY OF SECRETARY.—The Sec8 retary shall establish procedures appropriate and

9 practicable for providing a fair hearing and timely

10 resolution of citizen complaints related to applica11 tions or performance reports under this subtitle.

12 (d) REQUIREMENTS FOR THE SECRETARY AND

13 STATES DISTRIBUTING AMOUNTS TO STATE RECIPI14 ENTS.—

15 (1) IN GENERAL.—The Secretary may prescribe

16 citizen participation requirements comparable (to the

17 extent appropriate) to those contained in the preced18 ing provisions of this section where—

19 (A) a State is distributing grant amounts

20 to State recipients, as provided by sections

21 108(b)(2);

22 (B) the Secretary is administering the

23 grant amounts of an allocation unit of general

24 local government, as provided by section

25 108(a)(4); and
42

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1 (C) the Secretary is distributing grant

2 amounts to recipients, as provided by section

3 108(b)(3), (4), or (5).

4 (2) LAWS INAPPLICABLE.—The following provi5 sions of law shall not apply with respect to the ac6 tions of the Secretary referred to in paragraph (1)—

7 (A) the Federal Advisory Committee Act;

8 and

9 (B) section 103 of the Department of

10 Housing and Urban Development Reform Act

11 of 1989.

12 The Secretary shall establish appropriate standards

13 under this paragraph to ensure the integrity of the

14 process for awarding assistance.

15 REPORTS, REVIEWS, AND AUDITS

16 SEC. 110. (a) GRANTEE PERFORMANCE REPORT.—

17 Each grantee shall submit to the Secretary a performance

18 and evaluation report concerning the use of funds made

19 available under this subtitle. The report shall be submitted

20 at such time and contain such information as the Sec21 retary shall prescribe, and shall be made available to the

22 local boards referred to in section 109(b) and to citizens,

23 public agencies, and other interested parties in the juris24 diction of the grantee in sufficient time to permit the

25 board and the citizens, public agencies, and other inter26 ested parties to comment on the report before its submis-
43

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1 sion. Each grantee performance report shall be signed by

2 the local board.

3 (b) REVIEWS AND AUDITS.—The Secretary shall, at

4 least on an annual basis, make such reviews and audits

5 as may be necessary or appropriate to determine—

6 (1) in the case of a grantee (other than a

7 grantee referred to in paragraph (2)), whether the

8 grantee—

9 (A) has carried out its activities in a timely

10 manner;

11 (B) has made progress toward establishing

12 and maintaining the comprehensive homeless

13 assistance system (‘‘continuum of care’’) in con14 formity with its application under this subtitle;

15 (C) has carried out its activities and cer16 tifications in accordance with the requirements

17 of this subtitle and other applicable laws; and

18 (D) has a continuing capacity to carry out

19 its activities in a timely manner; and

20 (2) in the case of States distributing grant

21 amounts to State recipients, whether the State—

22 (A) has distributed amounts to State re23 cipients in a timely manner and in conformance

24 with the method of distribution described in its

25 application;
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1 (B) has carried out its activities and cer2 tifications in compliance with the requirements

3 of this subtitle and other applicable laws; and

4 (C) has made such reviews and audits of

5 the State recipients as may be necessary or ap6 propriate to determine whether they have satis7 fied the applicable performance criteria con8 tained in paragraph (1).

9 The Secretary may make appropriate adjustments in

10 the amount of grants in accordance with the Sec11 retary’s findings under this subsection. With respect

12 to assistance made available for State recipients, the

13 Secretary may adjust, reduce, or withdraw such as14 sistance, or take other action as appropriate in ac15 cordance with the Secretary’s reviews and audits

16 under this subsection, except that funds already

17 properly expended on eligible activities under this

18 subtitle shall not be recaptured or deducted from fu19 ture assistance to such recipients.

20 NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES

21 SEC. 111. (a) IN GENERAL.—No person in the

22 United States shall on the ground of race, color, national

23 origin, religion, or sex be excluded from participation in,

24 be denied the benefits of, or be subjected to discrimination

25 under any program or activity funded in whole or in part

26 with funds made available under this subtitle. Any prohibi-
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1 tion against discrimination on the basis of age under the

2 Age Discrimination Act of 1975 or with respect to an oth3 erwise qualified handicapped individual, as provided in

4 section 504 of the Rehabilitation Act of 1973, shall also

5 apply to any such program or activity.

6 (b) LIMITATIONS.—

7 (1) INDIAN TRIBES.—No grant may be made to

8 an Indian tribe under this subtitle unless the appli9 cant provides satisfactory assurances that its pro10 gram will be conducted and administered in con11 formity with title II of Public Law 90–284. The Sec12 retary may waive, in connection with grants to In13 dian tribes, the provisions of subsection (a).

14 (2) HAWAIIAN HOME LANDS.—Nothing in this

15 subtitle relating to discrimination on the basis of

16 race shall apply to the provision of assistance to the

17 Hawaiian Home Lands.

18 CONSULTATION

19 SEC. 112. In carrying out the provisions of this sub20 title, including the issuance of regulations, the Secretary

21 shall consult with other Federal departments and agencies

22 administering programs affecting homeless individuals

23 and families.

24 RECORDS, REPORTS, AND AUDITS

25 SEC. 113. (a) KEEPING OF RECORDS.—Any recipient

26 (including a State distributing grant amounts to State re-
46

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1 cipients under section 108(b)(2)(B)) shall keep such

2 records as may be reasonably necessary—

3 (1) to disclose the amounts and the disposition

4 of the grant amounts; and

5 (2) to ensure compliance with the requirements

6 of this subtitle.

7 (b) ACCESS TO DOCUMENTS BY THE SECRETARY.—

8 The Secretary shall have access for the purpose of audit

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

10 records of any recipient specified in subsection (a) that

11 are pertinent to grant amounts received in connection

12 with, and the requirements of, this subtitle.

13 (c) ACCESS TO DOCUMENTS BY THE COMPTROLLER

14 GENERAL.—The Comptroller General of the United

15 States, or any of the duly authorized representatives of

16 the Comptroller General, shall have access for the purpose

17 of audit and examination to any books, documents, papers,

18 and records of any recipient specified in subsection (a)

19 that are pertinent to grant amounts received in connection

20 with, and the requirements of, this subtitle.

21 REPORTS TO CONGRESS

22 SEC. 114. The Secretary shall submit a report to the

23 Congress annually, summarizing the activities carried out

24 under this subtitle and setting forth the findings, conclu25 sions, and recommendations of the Secretary as a result

26 of the activities. The report shall be submitted not later
47

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1 than 4 months after the end of each fiscal year (except

2 that, in the case of fiscal year 1995, the report shall be

3 submitted not later than 6 months after the end of the

4 fiscal year).

5 INNOVATIVE HOMELESS PROGRAM

6 SEC. 115. (a) FUNDING AUTHORIZATION.—Section

7 2(f) of the HUD Demonstration Act of 1993 is amended

8 to read as follows:

9 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—

10 ‘‘(1) IN GENERAL.—There are authorized to be

11 appropriated to carry out this section $100,000,000

12 for fiscal year 1995 and such sums as may be nec13 essary for fiscal year 1996.

14 ‘‘(2) USE OF AMOUNTS.—All amounts appro15 priated under paragraph (1) shall be used only to

16 carry out the comprehensive homeless initiative

17 under subsection (c).’’.

18 (b) REPEAL.—Section 2(g) of such Act is amended

19 by striking ‘‘1994’’ and inserting ‘‘1997’’.

20 Subtitle B—Emergency Food and Shelter

21 TRANSFER OF THE EMERGENCY FOOD AND SHELTER

22 PROGRAM FROM FEMA TO HUD

23 SEC. 121. (a) Section 301 of the Stewart B. McKin24 ney Homeless Assistance Act is amended—

25 (1) by striking the second sentence of sub26 section (a);
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1 (2) by striking the first and second sentences of

2 subsection (b) and inserting in lieu thereof the fol3 lowing: ‘‘The National Board shall consist of the

4 Secretary and 6 members. The Secretary shall ap5 point members to vacancies on the National Board

6 existing on, or occurring after, the effective date of

7 this sentence.’’;

8 (3) in subsection (c), by striking ‘‘Director’’

9 and inserting in lieu thereof ‘‘Secretary’’; and

10 (4) by striking subsection (e).

11 (b) Section 303 of such Act is amended—

12 (1) by striking ‘‘Federal Emergency Manage13 ment Agency’’ in the section heading and subsection

14 (b)(1) and inserting in lieu thereof ‘‘Department of

15 Housing and Urban Development’’; and

16 (2) by striking ‘‘Director’’ each place it appears

17 and inserting in lieu thereof ‘‘Secretary’’.

18 (c) Section 311 of such Act is amended by striking

19 ‘‘Director’’ in the section heading and in the first sentence

20 and inserting in lieu thereof ‘‘Secretary’’.

21 (d) Section 321(1) of such Act is amended to read

22 as follows:

23 ‘‘(1) The term ‘Secretary’ means the Secretary

24 of Housing and Urban Development.’’.
49

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1 (e) Section 322 of such Act is amended to read as

2 follows:

3 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

4 ‘‘There are authorized to be appropriated to carry out

5 this title $130,000,000 for fiscal year 1995 and

6 $130,000,000 for fiscal year 1996.’’.

7 (f) The amendments made by the preceding provi8 sions of this section shall become effective on the later of

9 October 1, 1994, or the date of enactment of this Act.

10 TITLE II—PUBLIC AND INDIAN HOUSING;

11 CROSS-CUTTING AUTHORIZATIONS

12 Subtitle A—Enhance Flexibility for Public Housing

13 Agencies

14 DIRECT LOANS FOR MODERNIZATION AND REPLACEMENT

15 SEC. 201. The United States Housing Act of 1937

16 is amended by adding the following new section at the end

17 of title I:

18 ‘‘SEC. 27. DIRECT LOANS FOR MODERNIZATION AND RE19 PLACEMENT.

20 ‘‘(a) GENERAL AUTHORIZATION.—The Secretary is

21 authorized, upon such terms and conditions as the Sec22 retary may prescribe, to make loans to public housing

23 agencies eligible for comprehensive modernization grants

24 under section 14 for purposes of financing activities eligi25 ble for comprehensive modernization grants under that
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1 section, except for upgrading the management and oper2 ation of low-rent public housing projects.

3 ‘‘(b) TERMS AND CONDITIONS.—

4 ‘‘(1) CRITERIA FOR APPROVAL.—In determining

5 whether, or in what amount, to approve an applica6 tion for a loan under this section, the Secretary may

7 consider—

8 ‘‘(A) the ability of the agency to use funds

9 effectively, directly or through contract manage10 ment;

11 ‘‘(B) the adequacy of remaining future al12 locations in providing repairs, replacements,

13 and improvements which will be needed as a re14 sult of usage and depreciation of existing

15 projects over the loan period; and

16 ‘‘(C) such other criteria as the Secretary

17 may specify.

18 ‘‘(2) SPECIAL CONDITIONS.—Notwithstanding

19 paragraph (1), the Secretary may approve a loan

20 under this section only if the Secretary determines

21 that the public housing agency has an acceptable

22 rate of obligation of funds under section 14, or the

23 public housing agency agrees to administer the loan

24 proceeds through contract management.
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1 ‘‘(3) LIMITATIONS ON DENIAL.—The Secretary

2 may not deny a loan under this section on the basis

3 of the proposed repayment period for the loan, un4 less the period is more than 10 years or the Sec5 retary determines that the period otherwise causes

6 the loan to constitute an unacceptable financial risk.

7 ‘‘(4) TERM OF LOAN.—Loans under this section

8 shall be for a term not to exceed 10 years.

9 ‘‘(5) INTEREST RATE.—Loans under this sec10 tion shall bear an interest rate determined by the

11 Secretary of the Treasury, taking into consideration

12 the current market yields on outstanding marketable

13 obligations of the United States with remaining

14 terms to maturities comparable to the average matu15 rities of loans under this section, plus amounts suffi16 cient to cover servicing costs.

17 ‘‘(6) PROHIBITION AGAINST SUBORDINATION.—

18 Loans under this section shall not be subordinated

19 to other debt contracted by the public housing agen20 cy or to any other claim against the agency.

21 ‘‘(7) SUBSIDY AMOUNT.—Based on the strength

22 of the guarantees by the State or unit of general

23 local government, pledges of financial assets, tax

24 revenues, and payments from other sources (non25 Federal or Federal), and the public housing agency’s
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1 pledged sources of repayments (including rents and

2 other anticipated income streams (Federal or non3 Federal)), the Secretary shall establish a subsidy

4 cost, as defined by the Federal Credit Reform Act

5 of 1990, for each loan to an agency. The subsidy

6 shall be calculated by the Office of Management and

7 Budget in consultation with the Secretary, as di8 rected by section 503(a) of the Federal Credit Re9 form Act, consistent with the technical assumptions

10 contained in the President’s Budget to assure that

11 it is fully offset by the premium amount and that

12 the resulting net subsidy cost to the Federal Govern13 ment is zero.

14 ‘‘(8) PREMIUM AMOUNT.—A premium amount

15 shall be assessed to cover the subsidy amount associ16 ated with each loan. This premium shall be paid

17 from the amount the public housing agency received

18 under the comprehensive grant program under sec19 tion 14 in the year the loan is originated.

20 ‘‘(c) FUNDING AND BORROWING AUTHORIZATION.—

21 There are authorized to be appropriated such sums as may

22 be necessary for each of fiscal years 1995 and 1996 for

23 the cost to the Government, as defined in section 502 of

24 the Congressional Budget Act, of loans under this section.

25 To the extent provided in appropriations Acts, the Sec-
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1 retary may enter into commitments to make loans under

2 this section with an aggregate principal amount of

3 $2,000,000,000 for fiscal year 1995 and $2,000,000,000

4 for fiscal year 1996.

5 ‘‘(d) LOAN LIMIT.—No loan may be made under this

6 section if the total outstanding loans under this section

7 made to a public housing agency (excluding any amount

8 repaid) would thereby exceed an amount prescribed by the

9 Secretary, but not to exceed 5 times the amount of the

10 public housing agency’s latest comprehensive moderniza11 tion grant under section 14.

12 ‘‘(e) USE OF COMPREHENSIVE GRANTS.—Notwith13 standing any other provision of this title, comprehensive

14 modernization grants or allocations under this title to the

15 public housing agency (including program income derived

16 therefrom) are authorized for use by the public housing

17 agency or by the Secretary for the payment of principal

18 and interest, and fees, due on the loans under this section.

19 ‘‘(f) FEES AND PREMIUMS.—The Secretary is au20 thorized to charge such fees and premiums as the Sec21 retary determines necessary to cover the cost, as defined

22 by the Federal Credit Reform Act of 1990, to the Federal

23 Government with respect to any loan made under this

24 section.
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1 ‘‘(g) PROGRAM REQUIREMENTS.—To assure the full

2 repayment of loans made under this section, as well as

3 the payment of any fees and premiums charged in connec4 tion with the loans, and as a prior condition for receiving

5 the loans, the Secretary shall require—

6 ‘‘(1) the public housing agency to—

7 ‘‘(A) enter into a contract, in a form ac8 ceptable to the Secretary, for repayment of the

9 loans and the other specified charges;

10 ‘‘(B) pledge for repayment of the loan any

11 amount received under the comprehensive grant

12 program under section 14 or grant for which

13 the public housing agency may become eligible

14 under this title and other financial resources,

15 including rental and other public housing agen16 cy income; however, in no case may a loan be

17 granted if the only pledged source of repayment

18 is amounts received under the comprehensive

19 grant program under section 18; and

20 ‘‘(C) furnish, at the discretion of the Sec21 retary, such other security as may be deemed

22 appropriate by the Secretary in making such

23 loans, which may include public housing

24 projects, accounts, or other land or housing
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1 owned by the agency or the proceeds of disposi2 tion thereof; and

3 ‘‘(2) the State or unit of general local govern4 ment in which the public housing agency is located

5 to enter into a contract in a form acceptable to the

6 Secretary under which the jurisdiction shall pledge

7 its financial assets, tax revenues, and other Federal

8 payments, including amounts from present and fu9 ture allocations under title I of the Housing and

10 Community Development Act of 1974, as collateral

11 for repayment of some portion of the loan. In the

12 event of default, the State or unit of general local

13 government shall pay a share of the remaining un14 paid debt service proportional to its pledge.

15 ‘‘(h) APPLICATION OF PLEDGED AMOUNTS.—Not16 withstanding any other provision of Federal, State, or

17 local law, the Secretary is authorized to apply allocations,

18 grants, and sums from other sources pledged under this

19 section to any remaining debt service due the United

20 States as a result of such loans.

21 ‘‘(i) PROGRAM ADMINISTRATION.—The Secretary

22 shall monitor the use of loans under this section by public

23 housing agencies. If the Secretary finds that 50 percent

24 of the annual loan authority has been committed, or public
56

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1 housing agencies have applied for such commitments, the

2 Secretary may—

3 ‘‘(1) impose limitations on the amount of loans

4 any public housing agency may receive in any fiscal

5 year; or

6 ‘‘(2) request the enactment of legislation in7 creasing the aggregate limitation on loans under this

8 section.

9 ‘‘(j) TRAINING AND INFORMATION.—The Secretary

10 may carry out training and information collection and dis11 semination activities in support of this section using funds

12 otherwise set aside for technical assistance under section

13 14.’’.

14 USE OF MODERNIZATION FUNDS FOR REPLACEMENT

15 HOUSING

16 SEC. 202. Section 14 of the United States Housing

17 Act of 1937 is amended by adding the following new sub18 section at the end thereof:

19 ‘‘(q) A public housing agency may use assistance

20 under this section for the development of additional hous21 ing under this Act, in accordance with requirements appli22 cable to the development of public housing, and for 15-

23 year project-based assistance and 5-year tenant-based as24 sistance, in accordance with section 8, to provide replace25 ment housing as required by section 18.’’.
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1 FACILITATE USE OF PUBLIC-PRIVATE PARTNERSHIPS IN

2 MODERNIZING PUBLIC HOUSING

3 SEC. 203. Section 14(c)(1) of the United States

4 Housing Act of 1937 is amended by inserting before the

5 semicolon the following: ‘‘or, as determined by the Sec6 retary, controlled by the agencies’’.

7 MODIFICATION OF THE EARLY CHILDHOOD

8 DEVELOPMENT PROGRAM

9 SEC. 204 (a) The caption for section 222 of the

10 Housing and Urban-Rural Recovery Act of 1983 is

11 amended to read as follows:

12 ‘‘EARLY CHILDHOOD DEVELOPMENT PROGRAMS FOR

13 PUBLIC HOUSING RESIDENTS AND HOMELESS FAMILIES’’.

14 (b) Section 222(b)(1) of such Act is amended by in15 serting before the semicolon the following: ‘‘, except that

16 the Secretary may make a grant to provide additional as17 sistance for an existing child care center assisted under

18 this section or to expand an existing child care center re19 gardless of whether or not such center was previously as20 sisted under this section’’.

21 (c) Section 222 of such Act is amended—

22 (1) in subsection (a)(1), by inserting before the

23 period the following: ‘‘(including, for purposes of

24 this section, homeless families with children, as de25 fined by the Secretary)’’; and
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1 (2) by redesignating paragraphs (2) and (3) of

2 subsection (c) as paragraphs (3) and (4), and insert3 ing after paragraph (1) the following new para4 graph:

5 ‘‘(2) take into account the proximity of home6 less facilities to the proposed site at which the serv7 ices are proposed to be provided;’’.

8 (d) Section 222(g) of such Act is amended by striking

9 the first two sentences and inserting in lieu thereof the

10 following: ‘‘There are authorized to be appropriated to

11 carry out this section $35,000,000 for fiscal year 1995

12 and $35,000,000 for fiscal year 1996.’’.

13 ENTREPRENEURIAL PHAS AND RMCS

14 SEC. 205. (a) The Secretary may authorize public

15 housing agencies and resident management corporations

16 to conduct demonstrations that—

17 (1) test the extent to which aspects of the pub18 lic housing program may be exempt from certain

19 statutory requirements while continuing to serve eli20 gible families, and

21 (2) permit agencies and RMCs to set policies

22 for the operation, maintenance, management, and

23 development (including modernization) of one or

24 more projects, without regard to the requirements

25 applicable to public housing in the 1937 Act. In es26 tablishing these policies, agencies and RMCs shall be
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1 bound by any applicable State or local law. A dem2 onstration may be approved for a term of up to 5

3 years.

4 (b) The Secretary may waive requirements of the

5 1937 Act that the Secretary determines are not consistent

6 with the purposes of a demonstration, except require7 ments—

8 (1) limiting occupancy to low-income families,

9 as defined in section 3 of the 1937 Act,

10 (2) under section 18 of that Act requiring re11 placement of units in the case of demolition or dis12 position (except that the limitation on the use of

13 tenant-based assistance to applications proposing

14 demolition or disposition of 200 or more units may

15 be waived); and

16 (3) relating to labor standards.

17 The Secretary may also waive any other statutory require18 ments that apply to the project and that the Secretary

19 determines are not consistent with the purposes of a dem20 onstration, except that the Secretary may not waive the

21 Uniform Relocation Assistance and Real Property Acquisi22 tion Policies Act of 1970 or any statutory requirements

23 pertaining to equal opportunity or nondiscrimination or

24 the environment.
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1 (c) The Secretary may select a total of up to 25 pub2 lic housing agencies or RMCs (or a combination of both)

3 to carry out up to 25 demonstrations under this section.

4 The Secretary shall select agencies based on selection cri5 teria including such factors as—

6 (1) the need for a range of project sizes;

7 (2) the need for a range of types of public hous8 ing agencies and RMCs; and

9 (3) the potential effects and benefits the vari10 ations proposed by the agency or RMC could have

11 on the public housing program if the variations were

12 adopted for the whole program.

13 (d) Each demonstration under this section shall—

14 (1) be approved personally by the Secretary;

15 (2) taken as a whole over the life of the dem16 onstration, not result in higher costs to the Federal

17 Government;

18 (3) be consistent with the overall purposes of

19 the public housing program;

20 (4) be evaluated by an independent party; and

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

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

23 of the Rehabilitation Act of 1973, the Age Discrimi24 nation Act of 1975, and the National Environmental

25 Policy Act of 1969.
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1 (e) In approving a demonstration under this section,

2 the Secretary may impose such requirements as the Sec3 retary considers to be appropriate to further its purposes.

4 (f) For each demonstration site, the agency or RMC

5 carrying out the demonstration shall submit an annual

6 progress report to the Secretary. The Secretary shall sub7 mit a report to Congress within 1 year after completion

8 of the demonstration, describing the results of the dem9 onstration and making any recommendations for legisla10 tion.

11 (g) There is authorized to be appropriated

12 $1,000,000 for the evaluation of demonstrations under

13 this section.

14 (h) As used in this section:

15 (1) ‘‘Secretary’’ means the Secretary of Hous16 ing and Urban Development.

17 (2) ‘‘1937 Act’’ means the United States Hous18 ing Act of 1937.

19 (3) ‘‘Public housing agency’’ or ‘‘agency’’

20 means a public housing agency, as defined in section

21 3(b)(6) of the 1937 Act. The term includes Indian

22 housing authorities.

23 (4) ‘‘Resident management corporation’’ or

24 ‘‘RMC’’ means a resident management corporation
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1 established in accordance with requirements of the

2 Secretary under section 20 of the 1937 Act.

3 DISALLOWANCE OF EARNED INCOME FOR RESIDENTS

4 WHO OBTAIN EMPLOYMENT

5 SEC. 206. (a) DISALLOWANCE OF EARNED INCOME

6 FROM PUBLIC HOUSING RENT DETERMINATIONS.—

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

8 States Housing Act of 1937 is amended by striking

9 the undesignated paragraph at the end thereof and

10 inserting in lieu thereof the following new sub11 section:

12 ‘‘(d) DISALLOWANCE OF EARNED INCOME FROM

13 PUBLIC HOUSING RENT DETERMINATIONS.—Notwith14 standing any other provision of law, the rent payable

15 under subsection (a) for any public housing unit by a fam16 ily whose income increases as a result of employment of

17 a member of the family who was previously unemployed

18 for 1 or more years (including a family whose income in19 creases as a result of the participation of a family member

20 in the Family Self-Sufficiency Program or other job-train21 ing program) may not be increased for a period of 18

22 months, beginning with the commencement of employment

23 as a result of the increased income due to such employ24 ment. After the expiration of the 18-month period, rent

25 increases due to the continued employment of such a fam26 ily member shall be limited to 10 percent per year. In no
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1 case shall rent exceed the amount determined under sub2 section (a).’’.

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

5 any resident of public housing participating in the

6 program under the authority contained in the undes7 ignated paragraph at the end of section 3(c)(3) of

8 the United States Housing Act of 1937, as such

9 paragraph existed before the date of enactment of

10 this Act, shall continue to be governed by such

11 authority.

12 (b) REPEALER.—Section 957 of the Cranston-Gon13 zalez National Affordable Housing Act is hereby repealed.

14 CEILING RENTS BASED ON REASONABLE RENTAL VALUE

15 SEC. 207. (a) Section 3(a)(2)(A)(iii) of the United

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

17 ‘‘(iii) is not less than the reasonable

18 rental value of the unit, as determined by

19 the Secretary.’’.

20 (b) REGULATIONS.—

21 (1) IN GENERAL.—The Secretary shall, by reg22 ulation, after notice and an opportunity for public

23 comment, establish such requirements as may be

24 necessary to carry out the provisions of section

25 3(a)(2)(A) of the United States Housing Act of

26 1937, as amended by subsection (a).
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1 (2) TRANSITION RULE.—Prior to the issuance

2 of final regulations under paragraph (1), a public

3 housing agency may implement ceiling rents which

4 shall be—

5 (A) determined in accordance with section

6 3(a)(2)(A) of the United States Housing Act of

7 1937, as such section existed before the date of

8 enactment of this Act; or

9 (B) equal to the 95th percentile of the rent

10 paid for a unit of comparable size by tenants in

11 the same project or a group of comparable

12 projects totaling 50 units or more.

13 AUTHORIZATION TO SELL PUBLIC HOUSING TO NON14 PROFIT ORGANIZATIONS

15 SEC. 208. The first sentence of section 5(h) of the

16 United States Housing Act of 1937 is amended by striking

17 ‘‘lower income tenants’’ and inserting: ‘‘low-income fami18 lies or to nonprofit organizations for resale to low-income

19 families’’.

20 Subtitle B—Severely Distressed Public Housing Program

21 REVITALIZATION OF SEVERELY DISTRESSED PUBLIC

22 HOUSING

23 SEC. 211. (a) SEVERELY DISTRESSED PUBLIC

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

25 of 1937 is amended as provided by this subsection.

26 (1) DESIGNATION OF ELIGIBLE PROJECTS.—
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1 (A) Subsection (b) is amended to read as

2 follows:

3 ‘‘(b) [RESERVED].’’

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

5 and the following paragraphs redesignated ac6 cordingly.

7 (2) INCREASE PLANNING GRANT DOLLAR

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

9 ‘‘$200,000’’ and inserting ‘‘$500,000’’.

10 (3) PLANNING GRANT ELIGIBLE ACTIVITIES:

11 COMMUNITY SERVICE.—Subsection (c)(3) is amend12 ed—

13 (A) inserting the following new subpara14 graph after subparagraph and (D) redesignat15 ing the following subparagraphs accordingly:

16 ‘‘(E) planning for community service and

17 support service activities to be carried out by

18 the public housing agency, residents, members

19 of the community, and other persons and orga20 nizations willing to contribute to the social, eco21 nomic, or physical improvement of the commu22 nity (community service is a required element of

23 the revitalization program);’’; and

24 (B) in subparagraph (H), as redesignated,

25 by striking ‘‘designing a suitable replacement
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1 housing plan’’ and inserting ‘‘designing suitable

2 relocation and replacement housing plans,’’.

3 (4) PLANNING GRANT APPLICATION: COMMU4 NITY SERVICE.—Subsection (c)(4) is amended by in5 serting the following new subparagraph after sub6 paragraph (C) and redesignating the following sub7 paragraphs accordingly:

8 ‘‘(D) a description of the community serv9 ice and support service planning activities to be

10 carried out by the public housing agency, resi11 dents, members of the community, and other

12 persons and organizations willing to contribute

13 to the social, economic, or physical improvement

14 of the community;’’.

15 (5) PLANNING GRANT SELECTION CRITERIA:

16 NATIONAL GEOGRAPHIC DIVERSITY.—Subsection

17 (c)(5) is amended by—

18 (A) striking subparagraph (E) and redesig19 nating the following subparagraphs accordingly;

20 (B) in subparagraph (E), as redesignated,

21 by inserting before the semicolon ‘‘, taking into

22 account the condition of the stock of the public

23 housing agency as a whole’’; and

24 (C) adding at the end the following: ‘‘In

25 making grants, under this subsection, the Sec-
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1 retary may select a lower-rated, approvable ap2 plication over a higher-rated application to in3 crease the national geographic diversity among

4 applications approved under this section.’’;

5 (6) IMPLEMENTATION GRANT ELIGIBLE ACTIVI6 TIES.—

7 (A) Subsection (d)(2) is amended by in8 serting the following new subparagraphs after

9 subparagraph (D) and redesignating the follow10 ing subparagraphs accordingly:

11 ‘‘(E) community service and support serv12 ice activities to be carried out by the public

13 housing agency, residents, members of the com14 munity, and other persons willing to contribute

15 to the social, economic, or physical improvement

16 of the community (community service is a re17 quired element of the revitalization program);

18 ‘‘(F) replacement of public housing units;’’.

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

20 by subparagraph (A) of this paragraph, is

21 amended by—

22 (i) striking ‘‘15 percent’’ and insert23 ing ‘‘20 percent’’; and

24 (ii) inserting before the period the fol25 lowing: ‘‘except that an amount equal to
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1 15 percent of the amount of any grant

2 under this subsection used for support

3 services shall be contributed from non-Fed4 eral sources (which contribution shall be in

5 the form of cash, administrative costs, and

6 the reasonable value of in-kind contribu7 tions and may include funding under title

8 I of the Housing and Community Develop9 ment Act of 1974)’’.

10 (7) IMPLEMENTATION GRANT APPLICATIONS:

11 COMMUNITY SERVICE.—Subsection (d)(3) is amend12 ed by inserting the following new subparagraph after

13 subparagraph (C) and redesignating the following

14 subparagraphs accordingly:

15 ‘‘(D) a description of the community serv16 ice and support activities to be carried out by

17 the public housing agency, residents, members

18 of the community, and other persons and orga19 nizations willing to contribute to the social, eco20 nomic, or physical improvement of the commu21 nity;’’.

22 (8) IMPLEMENTATION GRANT SELECTION CRI23 TERIA: NATIONAL GEOGRAPHIC DIVERSITY.—Sub24 section (d)(4) is amended by—
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1 (A) in subparagraph (D), by inserting

2 ‘‘(with assistance from the Department of

3 Housing and Urban Development if necessary)’’

4 after ‘‘applicant’’;

5 (B) striking subparagraph (E) and redes6 ignating the following subparagraphs accord7 ingly;

8 (C) in subparagraph (E), as redesignated,

9 by inserting before the semicolon ‘‘, taking into

10 account the condition of the applicant’s stock as

11 a whole’’; and

12 (D) adding at the end the following: ‘‘In

13 making grants, under this subsection, the Sec14 retary may select a lower-rated, approvable ap15 plication over a higher-rated application to in16 crease the national geographic diversity among

17 applications approved under this section.’’.

18 (9) EXCEPTIONS TO GENERAL PROGRAM RE19 QUIREMENTS.—Subsection (e) is amended by adding

20 at the end the following new paragraph:

21 ‘‘(3) DEMOLITION AND REPLACEMENT.—

22 ‘‘(A) IN GENERAL.—Notwithstanding any

23 other applicable law or regulation, a revitaliza24 tion plan under this section may include demoli25 tion and replacement on site or in the same
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1 neighborhood if the number of replacement

2 units provided in the same neighborhood is

3 fewer than the number of units demolished as

4 a result of the revitalization effort.

5 ‘‘(B) TENANT-BASED ASSISTANCE.—Not6 withstanding the limitations contained in sub7 paragraph (A)(v) or (C) of section 18(b)(3), a

8 public housing agency may replace not more

9 than one-third of the units demolished or dis10 posed of through a revitalization project under

11 this section with tenant-based assistance under

12 section 8.’’.

13 (10) DEFINITIONS.—

14 (A) Subsection (h)(5) is amended to read

15 as follows:

16 ‘‘(5) SEVERELY DISTRESSED PUBLIC HOUS17 ING.—The term ‘severely distressed public housing’

18 means a public housing project or a building in a

19 project—

20 ‘‘(A) that requires major redesign, recon21 struction, redevelopment, or partial or total

22 demolition to correct serious deficiencies in the

23 original design (including inappropriately high

24 population density), deferred maintenance,

25 physical deterioration or obsolescence of major
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1 systems, and other deficiencies in the physical

2 plant of the project; and

3 ‘‘(B) that either—

4 ‘‘(i)(I) is occupied predominantly by

5 families with children that have extremely

6 low incomes, high rates of unemployment,

7 and extensive dependency on various forms

8 of public assistance; and

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

10 criminal activity (including drug-related

11 criminal activity; or

12 ‘‘(ii) that has a vacancy rate, as deter13 mined by the Secretary, of 50 percent or

14 more; and

15 ‘‘(C) that cannot be revitalized through as16 sistance under other programs, such as the pro17 grams under sections 9 and 14, or through

18 other administrative means because of the inad19 equacy of available funds; and

20 ‘‘(D) that in the case of individual build21 ings, the building is, in the Secretary’s deter22 mination, sufficiently separable from the re23 mainder of the project to make use of the build24 ing feasible for purposes of this section.’’.
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1 (B) Subsection (h) is amended by adding

2 the following new paragraphs at the end there3 of:

4 ‘‘(6) COMMUNITY SERVICE.—The term ‘commu5 nity service’ means services provided on a volunteer

6 basis for the social, economic, or physical improve7 ment of the community to be served.

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

9 services’ includes all activities designed to lead to10 ward upward mobility, self-sufficiency, and improved

11 quality of life for the residence of the project, such

12 as literacy training, job training, day care, and eco13 nomic development. Such activities may allow for the

14 participation of residents of the neighborhood.’’.

15 (b) CONFORMING AMENDMENT.—The first sentence

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

17 1937 is amended to read as follows: ‘‘The term ‘eligible

18 housing’ means a public housing project, or one or more

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

20 a troubled public housing agency that has been troubled

21 for not less than 3 years and that, as determined by the

22 Secretary, has failed to make substantial progress toward

23 effective management.’’.

24 (c) USE OF TENANT-BASED ASSISTANCE FOR RE25 PLACEMENT HOUSING.—Section 18(b)(3)(C)(i) of the
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1 United States Housing Act of 1937 is amended by striking

2 ‘‘15-year’’.

3 (d) REPLACEMENT HOUSING OUTSIDE THE JURIS4 DICTION OF THE PHA.—Section 18(b)(3) of such Act is

5 amended by inserting the following new subparagraph

6 after subparagraph (C), and redesignating the following

7 subparagraphs accordingly:

8 ‘‘(D) may provide that all or part of such

9 additional dwelling units may be located outside

10 the jurisdiction of the public housing agency

11 (the ‘original agency’) if—

12 ‘‘(i) the location is in the same hous13 ing market area as the original agency, as

14 determined by the Secretary;

15 ‘‘(ii) the plan contains an agreement

16 between the original agency and the public

17 housing agency in the alternate location on

18 other public or private entity that will be

19 responsible for providing the additional

20 units in the alternate location (‘alternate

21 agency or entity’) that the alternate agency

22 or entity will, with respect to the dwelling

23 units involved—

24 ‘‘(I) provide the dwelling units in

25 accordance with subparagraph (A);
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1 ‘‘(II) complete the plan on sched2 ule in accordance with subparagraph

3 (E);

4 ‘‘(III) meet the requirements of

5 subparagraph (F) of this paragraph

6 and the maximum rent provisions of

7 subparagraph (G); and

8 ‘‘(IV) not impose a local resi9 dency preference on any resident of

10 the jurisdiction of the original agency

11 for purposes of admission to any such

12 units; and

13 ‘‘(iii) the arrangement is approved by

14 the unit of general local government for

15 the jurisdiction in which the additional

16 units will be located.’’.

17 MODERNIZATION PROGRAM RESERVE FUNDS

18 SEC. 212. The first sentence of section 14(k)(1) of

19 the United States Housing Act of 1937 is amended by

20 inserting before the period the following: ‘‘and for mod21 ernization needs in connection with the settlement of liti22 gation and desegregation of public housing.’’.

23 ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC HOUSING

24 FOR PUBLIC HOUSING OPERATING SUBSIDIES

25 SEC. 213. Section 9(a)(2) of the United States Hous26 ing Act of 1937 is amended—
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1 (1) by inserting immediately after ‘‘one’’ the

2 following: ‘‘that is (A)’’; and

3 (2) by inserting immediately after ‘‘section 8,’’

4 the following: ‘‘or (B) assisted under section 24 or

5 the program authorized under (i) the third para6 graph of the head, HOMEOWNERSHIP AND OPPOR7 TUNITY FOR PEOPLE EVERYWHERE GRANTS (HOPE

8 GRANTS), of the Department of Veterans Affairs and

9 Housing and Urban Development, and Independent

10 Agencies Appropriations Act, 1993, or (ii) the head,

11 SEVERELY DISTRESSED PUBLIC HOUSING PROJECTS,

12 of the Department of Veterans Affairs and Housing

13 and Urban Development, and Independent Agencies

14 Appropriations Act, 1994,’’.

15 APPLICABILITY OF SECTION 24 AND URD STATUTE AND

16 RULES

17 SEC. 214. Notwithstanding any provisions of the

18 United States Housing Act of 1937, with respect to a pub19 lic housing project that has been selected for funding

20 under section 24 of such Act or through the Urban Revi21 talization Demonstration Program included in the Depart22 ments of Veterans Affairs and Housing and Urban Devel23 opment, and Independent Agencies Appropriation Act,

24 1993 (Public Law 102–389) or the Departments of Veter25 ans Affairs and Housing and Urban Development, and

26 Independent Agencies Appropriation Act, 1994 (Public
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1 Law 103–124) and that has an approved comprehensive

2 plan under section 14 of the United States Housing Act

3 of 1937—

4 (1) the Secretary may exempt such projects

5 from any requirements of the United States Housing

6 Act of 1937 and may establish such requirements as

7 the Secretary deems appropriate for any activities

8 funded under section 24 or through the Urban Revi9 talization Demonstration Program and for any ac10 tivities undertaken at the project pursuant to the

11 approved comprehensive plan and contributing to the

12 revitalization, including activities relating to demoli13 tion, modernization, reconstruction, site improve14 ments, and replacement of housing; however, in no

15 event may the Secretary waive, or specify alternative

16 requirements for, statutory requirements related to

17 nondiscrimination, fair housing, labor standards, the

18 environment, or the Uniform Relocation Assistance

19 and Real Property Acquisition Policies Act of 1970;

20 (2) for the replacement of public housing units

21 either on the site of such a project or on other sites,

22 the Secretary may establish such standards as the

23 Secretary deems appropriate with respect to the as24 sessment of racial and socio-economic information
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1 relevant to the placement of public housing units on

2 the site; and

3 (3) for such a revitalized project, the Secretary

4 may establish such requirements as the Secretary

5 deems appropriate with respect to income eligibility,

6 the selection of tenants, the establishment of rents,

7 and for the operation and management of the

8 projects.

9 Subtitle C—Anti-Crime Initiatives

10 COMMUNITY PARTNERSHIPS AGAINST CRIME

11 SEC. 221. (a) CONFORMING PROVISIONS.—Section

12 5001 of the Anti-Drug Abuse Act of 1988 is amended in

13 the table of contents—

14 (1) by striking the item relating to the heading

15 for chapter 2 and inserting the following:

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

16 (2) by striking the item relating to section 5122

17 and inserting the following:

‘‘Sec. 5122. Purposes.’’;

18 and

19 (3) by adding the following after the item relat20 ing to section 5130:

‘‘Sec. 5131. Technical assistance.’’.

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

22 MAKE GRANTS.—The Public and Assisted Housing Drug

23 Elimination Act of 1990 is amended by striking the chap-
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1 ter heading for chapter 2, and by striking sections 5121,

2 5122, and 5123, and inserting the following:

3 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

4 AGAINST CRIME

5 ‘‘SEC. 5121. SHORT TITLE.

6 ‘‘This chapter may be cited as the ‘Community Part7 nerships Against Crime Act of 1994’.

8 ‘‘SEC. 5122. PURPOSES.

9 ‘‘The purposes of this chapter are to—

10 ‘‘(1) improve the quality of life for law-abiding

11 public housing residents by reducing the levels of

12 fear, violence, and crime in their communities;

13 ‘‘(2) expand and enhance the Federal Govern14 ment’s commitment to eliminating crime in public

15 housing;

16 ‘‘(3) broaden the scope of the Public and As17 sisted Housing Drug Elimination Act of 1990 to

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

19 that is drug-related;

20 ‘‘(4) target opportunities for long-term commit21 ments of funding primarily to public housing agen22 cies with serious crime problems;

23 ‘‘(5) encourage the involvement of a broad

24 range of community-based groups, and residents of

25 neighboring housing that is owned or assisted by the
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1 Secretary, in the development and implementation of

2 anti-crime plans;

3 ‘‘(6) reduce crime and disorder in and around

4 public housing through the expansion of community5 oriented policing activities and problem solving;

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

7 other technical assistance to program participants;

8 and

9 ‘‘(8) establish a standardized assessment sys10 tem to evaluate need among public housing agencies,

11 and to measure progress in reaching crime reduction

12 goals.

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

14 ‘‘The Secretary of Housing and Urban Development,

15 in accordance with the provisions of this chapter, may

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

17 public and other federally assisted low-income housing

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

19 housing authorities), and (2) to private, for-profit, and

20 nonprofit owners of federally assisted low-income housing.

21 In designing the program, the Secretary shall consult with

22 the Attorney General.’’.

23 (c) ELIGIBLE ACTIVITIES.—
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1 (1) Section 5124(a) of the Public and Assisted

2 Housing Drug Elimination Act of 1990 is amend3 ed—

4 (A) in the introductory material preceding

5 paragraph (1), by inserting ‘‘and around’’ after

6 ‘‘used in’’;

7 (B) in paragraph (3), by inserting ‘‘, such

8 as fencing, lighting, locking, and surveillance

9 systems’’ before the semicolon;

10 (C) in paragraph (4), by striking subpara11 graph (A) and inserting the following new sub12 paragraph:

13 ‘‘(A) to investigate crime; and’’;

14 (D) in paragraph (6)—

15 (i) by striking ‘‘in and around public

16 or other federally assisted low-income

17 housing projects’’; and

18 (ii) by striking ‘‘and’’ after the semi19 colon;

20 (E) in paragraph (7)—

21 (i) by striking ‘‘where a public hous22 ing agency receives a grant,’’;

23 (ii) by striking ‘‘drug abuse’’ and in24 serting ‘‘crime’’; and
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1 (iii) by striking the period at the end

2 and inserting a semicolon; and

3 (F) by adding at the end the following new

4 paragraphs:

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

6 more individuals, including law enforcement officers,

7 made available by contract or other cooperative ar8 rangement with State or local law enforcement agen9 cies, to engage in community policing involving

10 interaction with members of the community on

11 proactive crime control and prevention;

12 ‘‘(9) youth initiatives, such as activities involv13 ing training, education, after school programs, cul14 tural programs, recreation and sports, career plan15 ning, and entrepreneurship and employment; and

16 ‘‘(10) resident services programs, such as job

17 training, education programs, drug and alcohol

18 treatment, and other appropriate social services that

19 address the contributing factors of crime.’’.

20 (2) Section 5124(b) of such Act is amended by

21 striking ‘‘(7)’’ and inserting in lieu thereof ‘‘(10)’’.

22 (d) APPLICATIONS.—Section 5125 of the Public and

23 Assisted Housing Drug Elimination Act of 1990 is amend24 ed—

25 (1) in subsection (a)—
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1 (A) by striking ‘‘To receive a grant’’ and

2 inserting the following:

3 ‘‘(1) APPLICATIONS.—To receive a grant’’;

4 (B) in the second sentence, by striking

5 ‘‘drug-related crime on the premises of’’ and in6 serting the following: ‘‘crime in and around’’;

7 and

8 (C) by adding at the end the following new

9 paragraphs:

10 ‘‘(2) ONE-YEAR RENEWABLE GRANTS.—

11 ‘‘(A) IN GENERAL.—Eligible applicants

12 may submit an application for a 1-year grant

13 under this chapter that, subject to the availabil14 ity of appropriated amounts, shall be renewed

15 annually for a period of not more than 4 years,

16 if the Secretary finds, after an annual or more

17 frequent performance review, that the public

18 housing agency is performing under the terms

19 of the grant and applicable laws in a satisfac20 tory manner and meets such other requirements

21 as the Secretary may prescribe.

22 ‘‘(B) PREFERENCE.—The Secretary shall

23 accord a preference to applicants for grants

24 under this paragraph if the grant is to be used

25 to continue or expand activities eligible for as-
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1 sistance under this chapter that have received

2 previous assistance either under this chapter, as

3 it existed prior to the enactment of the Housing

4 Choice and Community Investment Act of

5 1994, or under section 14 of the United States

6 Housing Act of 1937. Such preference shall not

7 preclude the selection by the Secretary of other

8 meritorious applications, particularly applica9 tions which address urgent or severe crime

10 problems or which demonstrate especially prom11 ising approaches to reducing crime. Such pref12 erence shall not be construed to require con13 tinuation of activities determined by the Sec14 retary to be unworthy of continuation.

15 ‘‘(3) PUBLIC HOUSING AGENCIES THAT HAVE

16 ESPECIALLY SEVERE CRIME PROBLEMS.—The Sec17 retary shall, by regulation issued after notice and

18 opportunity for public comment, set forth criteria for

19 establishing a class of public housing agencies that

20 have especially severe crime problems. The Secretary

21 may allocate a portion of the annual appropriation

22 for this program for public housing agencies in this

23 class.’’.

24 (2) in subsection (b)—
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1 (A) by striking the introductory material

2 preceding paragraph (1) and inserting the fol3 lowing: ‘‘The Secretary shall approve applica4 tions under subsection (a)(2) that are not sub5 ject to a preference under subsection (a)(2)(B)

6 on the basis of—’’;

7 (B) in paragraph (1), by striking ‘‘drug-re8 lated crime problem in’’ and inserting the fol9 lowing: ‘‘crime problem in and around’’;

10 (C) in paragraph (2), by inserting imme11 diately after ‘‘crime problem in’’ the following:

12 ‘‘and around’’; and

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

14 ‘‘local government’’ the following: ‘‘, local com15 munity-based non-profit organizations, local

16 resident organizations that represent the resi17 dents of neighboring projects that are owned or

18 assisted by the Secretary,’’;

19 (3) in subsection (c)(2), by striking ‘‘drug20 related’’ each place it appears; and

21 (4) by striking subsection (d).

22 (e) DEFINITIONS.—Section 5126 of the Public and

23 Assisted Housing Drug Elimination Act of 1990 is

24 amended by striking paragraphs (1) and (2), and redesig-
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1 nating paragraphs (3) and (4) as paragraphs (1) and (2),

2 respectively.

3 (f) IMPLEMENTATION.—Section 5127 of the Public

4 and Assisted Housing Drug Elimination Act of 1990 is

5 amended by striking ‘‘Cranston-Gonzalez National Afford6 able Housing Act: and inserting ‘‘Housing Choice and

7 Community Investment Act of 1994’’.

8 (g) REPORTS.—Section 5128 of the Public and As9 sisted Housing Drug Elimination Act of 1990 is amend10 ed—

11 (1) by striking ‘‘The Secretary’’ and inserting

12 the following:

13 ‘‘(a) GRANTEE REPORTS.—The Secretary’’;

14 (2) by striking ‘‘drug-related crime in’’ and in15 serting ‘‘crime in and around’’; and

16 (3) by adding at the end the following new sub17 section:

18 ‘‘(b) HUD REPORTS.—The Secretary shall submit a

19 report to the Congress describing the system used to dis20 tribute funds to grantees under this section. Such report

21 shall include, at a minimum—

22 ‘‘(1) a description of the criteria used to estab23 lish the class of public housing agencies with espe24 cially severe crime problems and a list of such agen25 cies;
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1 ‘‘(2) the methodology used to distribute funds

2 among the public housing agencies on the list cre3 ated under paragraph (1); and

4 ‘‘(3) the Secretary’s recommendations for any

5 change to the method of distribution of funds.’’.

6 (h) AUTHORIZATION OF APPROPRIATIONS.—Section

7 5130 of the Public and Assisted Housing Drug Elimi8 nation Act of 1990 is amended—

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

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

11 that follows up to the period and inserting

12 ‘‘$265,000,000 for fiscal year 1995, and

13 $265,000,000 for fiscal year 1996’’;

14 (2) in subsection (b)—

15 (A) in the heading, by striking ‘‘SET16 ASIDES’’ and inserting ‘‘SET-ASIDE’’; and

17 (B) by striking the second sentence; and

18 (3) by adding at the end the following new sub19 section (d):

20 ‘‘(d) SET-ASIDE FOR PUBLIC PRIVATE PARTNER21 SHIPS.—Of any amount made available in any fiscal year

22 to carry out this chapter, 2 percent of such amount shall

23 be available for contracts, grants, cooperative agreements,

24 or interagency agreements with public housing agencies

25 (including Indian housing authorities) and other public or
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1 private organizations, to implement programs which in2 volve joint investment by the public and private sectors

3 to conduct activities designed to reduce crime and violence

4 in public housing. Such activities may include the creation

5 of pilot programs or the replication of successful existing

6 programs.’’.

7 (i) REPEAL.—Section 520(k) of the Cranston-Gon8 zalez National Affordable Housing Act is hereby repealed.

9 (j) TECHNICAL ASSISTANCE.—The Public and As10 sisted Housing Drug Elimination Act of 1990 is further

11 amended by adding at the end the following new section:

12 ‘‘SEC. 5131. TECHNICAL ASSISTANCE.

13 ‘‘Of the amounts appropriated annually for each of

14 fiscal years 1995 and 1996 to carry out this chapter, the

15 Secretary shall use not more than $10,000,000, directly

16 or indirectly, under grants, contracts, or cooperative

17 agreements, to provide training, information services, and

18 other technical assistance to public housing agencies and

19 other entities with respect to their participation in the pro20 gram authorized by this chapter. Such technical assistance

21 may include the establishment and operation of the clear22 inghouse on drug abuse in public housing and the regional

23 training program on drug abuse in public housing under

24 sections 5143 and 5144 of this Act. The Secretary is also

25 authorized to use the foregoing amounts for obtaining as-
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1 sistance in establishing and managing assessment and

2 evaluation criteria and specifications, and obtaining the

3 opinions of experts in relevant fields.’’.

4 AUTHORITY FOR ASSISTED HOUSING OWNERS AND

5 PUBLIC HOUSING AGENCIES TO BAN GUNS

6 SEC. 222. (a) The United States Housing Act of

7 1937, as amended by section 201, is amended by adding

8 at the end the following new section:

9 ‘‘SEC. 28. AUTHORITY FOR PUBLIC HOUSING AGENCIES

10 AND OWNERS AND LESSORS OF ASSISTED

11 HOUSING TO BAN GUNS.

12 ‘‘Notwithstanding any State or local law to the con13 trary, a public housing agency or other owner or lessor

14 of housing assisted under this Act may utilize leases which

15 ban the possession, use, and discharge of firearms in and

16 around the housing.’’.

17 (b) Notwithstanding any State or local law to the con18 trary, the owner or lessor of any housing project assisted,

19 or financed with a mortgage insured, under a program of

20 the Secretary of Housing and Urban Development may

21 utilize leases which ban the possession, use, and discharge

22 of firearms in and around the project.
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1 MAKE CRIMINAL RECORDS AVAILABLE FOR SCREENING

2 AND EVICTIONS

3 SEC. 223. Section 6 of the United States Housing

4 Act of 1937 is amended by inserting the following new

5 subsection at the end:

6 ‘‘(p) Notwithstanding any other provisions of Fed7 eral, State, or local law, the National Crime Information

8 Center, police departments, and any other law enforce9 ment entities shall provide information to public housing

10 agencies upon request regarding the criminal records of

11 applicants for, or residents of, public housing for the pur12 pose of applicant screening, lease enforcement, and evic13 tion. An agency may pay a reasonable fee for such infor14 mation.’’.

15 Subtitle D—Authorizations and Extensions

16 LOW-INCOME HOUSING

17 SEC. 231. (a) AGGREGATE BUDGET AUTHORITY.—

18 Section 5(c)(6) of the United States Housing Act of 1937

19 (42 U.S.C. 1437c(c)(6)) is amended by adding at the end

20 the following new sentence: ‘‘The aggregate amount of

21 budget authority that may be obligated for assistance re22 ferred to in paragraph (7) is increased (to the extent ap23 proved in appropriation Acts) by at least $14,024,876,000

24 on October 1, 1994, and by at least $6,388,276,000 on

25 October 1, 1995.’’.
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1 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

2 5(c)(7) of the United States Housing Act of 1937 (42

3 U.S.C. 1437c(c)(7)) is amended by striking the paragraph

4 designation and all that follows through the end of sub5 paragraph (B) and inserting the following:

6 ‘‘(7)(A) Using the additional budget authority

7 provided under paragraph (6) and the balances of

8 budget authority that become available during fiscal

9 year 1995, the Secretary shall, to the extent ap10 proved in appropriation Acts, reserve authority to

11 enter into obligations aggregating—

12 ‘‘(i) for public housing grants under sub13 section (a)(2), not more than $413,000,000, of

14 which amount not more than $263,000,000

15 shall be available for Indian housing;

16 ‘‘(ii) for assistance under section 8, not

17 more than $2,743,000,000, of which

18 $514,275,000 shall be available for 15-year

19 contracts for the Community Investment Dem20 onstration Program under section 6 of the

21 HUD Demonstration Act of 1993,

22 $514,275,000 shall be for homeless assistance

23 and $171,425,000 shall be for assistance for

24 the disabled;
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1 ‘‘(iii) for modernization grants under sec2 tion 14(k), not more than $2,786,000,000, in3 cluding $15,000,000 for training and technical

4 assistance;

5 ‘‘(iv) for assistance under section 8 for

6 loan management, not more than

7 $150,000,000;

8 ‘‘(v) for extensions of contracts expiring

9 under section 8, $5,092,000,000, which shall be

10 for contracts for assistance under section 8 and

11 vouchers under section 8(o) and for loan man12 agement assistance under such section;

13 ‘‘(vi) for amendments to contracts under

14 section 8, $2,202,100,000;

15 ‘‘(vii) for adjustments to annual contribu16 tions contracts for the costs of providing service

17 coordinators under section 9(a)(1)(b)(2), not

18 more than $30,000,000;

19 ‘‘(viii) for public housing lease adjust20 ments, $21,900,000;

21 ‘‘(ix) for assistance under section 18(e) for

22 replacement housing for units demolished or

23 disposed of under section 18, and for eligible

24 tenants where project owners opt out of the sec25 tion 8 program, not more than $82,916,000;
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1 ‘‘(x) for conversions for leased housing

2 contracts under section 23 of this Act (as in ef3 fect immediately before the enactment of the

4 Housing and Community Development Act of

5 1974) to assistance under section 8, not more

6 than $3,960,000; and

7 ‘‘(xi) for grants under section 24 for revi8 talization of severely distressed public housing,

9 not more than $500,000,000.

10 ‘‘(B) Using the additional budget authority pro11 vided under paragraph (6) and the balances of budg12 et authority that become available during fiscal year

13 1996, the Secretary shall, to the extent approved in

14 appropriation Acts, reserve authority to enter into

15 obligations aggregating—

16 ‘‘(i) for public housing grants under sub17 section (a)(2), not more than $413,000,000, of

18 which amount not more than $263,000,000

19 shall be available for Indian housing;

20 ‘‘(ii) for assistance under section 8, not

21 more than $2,811,500,000 of which

22 $527,175,000 shall be available for 15-year

23 contracts for the Community Investment Dem24 onstration program under section 6 of the

25 HUD Demonstration Act of 1993,
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1 $527,175,000 shall be for homeless assistance

2 and $175,725,000 shall be for assistance for

3 the disabled;

4 ‘‘(iii) for modernization grants under sec5 tion 14(k), not more than $2,375,000,000, in6 cluding $15,000,000 for training and technical

7 assistance;

8 ‘‘(iv) for assistance under section 8 for

9 loan management, not more than

10 $150,000,000;

11 ‘‘(v) for extensions of contracts expiring

12 under section 8, such sums as may be nec13 essary, which shall be for contracts for assist14 ance under section 8 and vouchers under sec15 tion 8(o) and for loan management assistance

16 under such section;

17 ‘‘(vi) for amendments to contracts under

18 section 8, such sums as may be necessary;

19 ‘‘(vii) for adjustments to annual contribu20 tions contracts for the costs of providing service

21 coordinators under section 9(a)(1)(B)(ii), not

22 more than $30,000,000;

23 ‘‘(viii) for public housing lease adjust24 ments, $21,900,000;
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1 ‘‘(ix) for assistance under section 18(e) for

2 replacement housing for units demolished or

3 disposed of under section 18, and for eligible

4 tenants where project owners opt out of the

5 Section 8 program, not more than $82,916,000;

6 ‘‘(x) for conversions from leased housing

7 contracts under section 23 of this Act (as in ef8 fect immediately before the enactment of the

9 Housing and Community Development Act of

10 1974) to assistance under section 8, not more

11 than $3,960,000; and

12 ‘‘(xi) for grants under section 24 for revi13 talization of severely distressed public housing,

14 not more than $500,000,000.’’.

15 PUBLIC HOUSING OPERATING SUBSIDIES

16 SEC. 232. Section 9(c) of the United States Housing

17 Act of 1937 (42 U.S.C. 1437g(c)) is amended—

18 (1) in paragraph (1), by striking ‘‘There’’ and

19 all that follows and inserting the following new sen20 tence: ‘‘There are authorized to be appropriated for

21 purposes of providing annual contributions under

22 this section $2,496,000,000 for fiscal year 1995 and

23 $2,376,000,000 for fiscal year 1996.’’;

24 (2) in paragraph (2), by striking ‘‘1993 and

25 1994’’ and inserting ‘‘1995 and 1996’’; and
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1 (3) in paragraph (3), by striking ‘‘1993 and

2 1994’’ and inserting ‘‘1995 and 1996’’.

3 FAMILY SELF-SUFFICIENCY PROGRAM

4 SEC. 233. The last sentence of section 23(h)(2) of

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

6 1437u(h)(2)) is amended to read as follows: ‘‘Of amounts

7 appropriated under section 9(c), $17,300,000 for fiscal

8 year 1995 and $17,732,000 for fiscal year 1996 are au9 thorized to be used for costs under this paragraph.’’.

10 PUBLIC HOUSING FAMILY INVESTMENT CENTERS

11 SEC. 234. Section 22(k) of the United States Hous12 ing Act of 1937 (42 U.S.C. 1437t(k)) is amended to read

13 as follows:

14 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There

15 are authorized to be appropriated to carry out this section

16 $26,342,000 for fiscal year 1995 and $27,001,000 for fis17 cal year 1996.’’.

18 REVISED CONGREGATE SERVICES PROGRAM

19 SEC. 235. Section 802(n)(1) of the Cranston-Gon20 zalez National Affordable Housing Act (42 U.S.C.

21 8011(n)(1)) is amended by striking ‘‘$25,000,000’’

22 through ‘‘1992’’ and inserting in lieu thereof, ‘‘$6,267,000

23 for fiscal year 1995’’.

24 INDIAN HOUSING LOAN GUARANTEE PROGRAM

25 SEC. 236. (a) LIMITATION ON OUTSTANDING AGGRE26 GATE PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the
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1 Housing and Community Development Act of 1992 (12

2 U.S.C. 1515z–13a(i)(5)(C)) is amended by striking—

3 (1) ‘‘fiscal years 1993 and 1994’’ and inserting

4 in lieu thereof ‘‘fiscal years 1995 and 1996’’; and

5 (2) ‘‘not exceeding’’ and all that follows, and in6 serting in lieu thereof, ‘‘not exceeding $22,388,000

7 for fiscal year 1995 and $22,388,000 for fiscal year

8 1996, to the extent provided in appropriation Acts.’’.

9 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR10 ANTEE FUND.—Section 184(i)(7) of the Housing and

11 Community Development Act of 1992 (12 U.S.C. 1515z–

12 13a(i)(7)) is amended to read as follows:

13 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

14 There are authorized to be appropriated to the

15 Guarantee Fund to carry out this section

16 $3,000,000 for fiscal year 1995 and $3,000,000 for

17 fiscal year 1996.’’.

18 Subtitle E—Applicability

19 APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO

20 INDIAN HOUSING

21 SEC. 241. (a) Section 201(b) of the United States

22 Housing Act of 1937 is amended to read as follows:

23 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other24 wise provided by law, the provisions of title I shall apply

25 to low-income housing developed or operated pursuant to
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1 a contract between the Secretary and an Indian housing

2 authority.’’.

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

4 affect provisions of the United States Housing Act of

5 1937 that were made applicable to public housing devel6 oped or operated pursuant to a contract between the Sec7 retary of Housing and Urban Development and an Indian

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

9 such Act, as it existed before the effective date of this sec10 tion.

11 (c) The provisions of section 955(b) of the Cranston12 Gonzalez National Affordable Housing Act, sections

13 103(a)(1), 112, 114, 116, 118, 903, and 927 of the Hous14 ing and Community Development Act of 1992, and sec15 tions 301, 302, 303, and 304 of the Multifamily Housing

16 Property Disposition Reform Act of 1994 shall also apply

17 to public housing developed or operated pursuant to a con18 tract between the Secretary of Housing and Urban Devel19 opment and an Indian Housing authority.

20 (d) The application of section 955(b) of the Cranston21 Gonzalez National Affordable Housing to public housing

22 developed or operated pursuant to a contract between the

23 Secretary of Housing and Urban Development and an In24 dian Housing Authority shall apply to any volunteer serv25 ices provided before, on, or after the date of enactment
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1 of this Act, except that such application may not be con2 strued to require the repayment of any wages paid before

3 the date of enactment of this Act for services provided be4 fore such date.

5 TITLE III—HOMEOWNERSHIP; FHA MORTGAGE

6 INSURANCE AUTHORIZATIONS

7 Subtitle A—Expand Single Family Homeownership

8 Opportunities

9 SINGLE FAMILY MORTGAGE INSURANCE IN

10 REVITALIZATION AREAS

11 SEC. 301. (a) ESTABLISHMENT OF PROGRAM.—Title

12 II of the National Housing Act is amended by adding at

13 the end thereof the following new section:

14 ‘‘SINGLE FAMILY MORTGAGE INSURANCE IN

15 REVITALIZATION AREAS

16 ‘‘SEC. 256. (a) GENERAL AUTHORITY.—The Sec17 retary is authorized to insure mortgages in accordance

18 with the provisions of this section, and to make commit19 ments to insure such mortgages before the date of their

20 execution or disbursement thereon.

21 ‘‘(b) ELIGIBLE MORTGAGORS.—A mortgage may be

22 insured under this section only with respect to a mortga23 gor who—

24 ‘‘(1) has an income not exceeding 115 percent

25 of the median income for the area, as determined by

26 the Secretary with adjustments for smaller and larg-
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1 er families, except that the Secretary may establish

2 income ceilings higher or lower than 115 percent of

3 the median for the area on the basis of the Sec4 retary’s findings that such variations are necessary

5 because of prevailing levels of construction costs or

6 unusually high or low family incomes and except

7 that no income ceiling may exceed 140 percent of

8 the median for the area;

9 ‘‘(2) is a first-time homebuyer, as defined in

10 section 104(14) of the Cranston-Gonzalez National

11 Affordable Housing Act;

12 ‘‘(3) will occupy the dwelling as his or her prin13 cipal residence;

14 ‘‘(4) has received such pre-purchase counseling

15 as the Secretary deems appropriate with respect to

16 the responsibilities and financial management in17 volved in homeownership;

18 ‘‘(5) has not previously been a mortgagor under

19 this section;

20 ‘‘(6) has assets not exceeding such amount as

21 the Secretary may prescribe; and

22 ‘‘(7) meets such other requirements as the Sec23 retary may prescribe.

24 ‘‘(c) ELIGIBLE MORTGAGES.—A mortgage may be in25 sured under this section only if the mortgage—
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1 ‘‘(1) has been made to, and is held by, a mort2 gagee approved by the Secretary as responsible and

3 able to service the mortgage properly;

4 ‘‘(2) covers a one-family dwelling (including a

5 one-family unit in a condominium development and

6 shares representing a one-family unit in a coopera7 tive development) that is located in a revitalization

8 area which is (A) an empowerment zone or enter9 prise community approved under Subchapter U of

10 Chapter 1 of the Internal Revenue Code of 1986, or

11 in an equivalent State-approved enterprise zone, or

12 (B) an urban neighborhood that, in the determina13 tion of the Secretary, is targeted by a unit of general

14 local government for revitalization using coordinated

15 affordable housing programs and enhanced support16 ive services;

17 ‘‘(3) involves a principal obligation (exclusive of

18 any charges and costs in connection with the loan,

19 including initial service charges and appraisal and

20 inspection fees) in an amount not exceeding the less21 er of—

22 ‘‘(A) $67,500 or 75 percent of the maxi23 mum mortgage amount determined under sec24 tion 203(b)(2)(A), whichever is greater; or
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1 ‘‘(B) 100 percent of the appraised value of

2 the property as of the date the mortgage is ac3 cepted for insurance: Provided, That in any

4 case where the dwelling is not approved for

5 mortgage insurance before the beginning of

6 construction, the mortgage may not exceed 90

7 percent of the appraised value of the property

8 as of the date the mortgage is accepted for in9 surance, unless—

10 ‘‘(i) the dwelling was completed more

11 than one year before the application for

12 mortgage insurance;

13 ‘‘(ii) the dwelling was approved for

14 guaranty, insurance, or a direct loan under

15 chapter 37 of title 38, United States Code,

16 before the beginning of construction; or

17 ‘‘(iii) the dwelling is covered by a

18 consumer protection or warranty plan ac19 ceptable to the Secretary and satisfies all

20 requirements that would have been applica21 ble if the dwelling had been approved for

22 mortgage insurance before the beginning of

23 construction;
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1 ‘‘(4) has a maturity satisfactory to the Sec2 retary, but not to exceed 30 years from the date of

3 the beginning of amortization of the mortgage;

4 ‘‘(5) contains complete amortization provisions

5 satisfactory to the Secretary requiring periodic pay6 ments by the mortgagor not in excess of the mortga7 gor’s reasonable ability to pay, as determined by the

8 Secretary;

9 ‘‘(6) bears interest at such rate as may be

10 agreed upon by the mortgagor and the mortgagee;

11 ‘‘(7) provides, in a manner satisfactory to the

12 Secretary, for the application of the mortgagor’s

13 periodic payments (exclusive of the amount allocated

14 to interest and to the premium charge which is re15 quired for mortgage insurance as hereinafter pro16 vided) to amortization of the principal of the mort17 gage;

18 ‘‘(8) contains such terms and provisions with

19 respect to insurance, repairs, alterations, payment of

20 taxes, default reserves, delinquency charges, fore21 closure proceedings, anticipation of maturity, addi22 tional and secondary liens, and other matters as the

23 Secretary may prescribe; and

24 ‘‘(9) complies with such other terms and condi25 tions as the Secretary may prescribe.
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1 ‘‘(d) EXPENSES OF MORTGAGOR.—

2 ‘‘(1) IN GENERAL.—The mortgagor shall pay

3 all charges and costs in connection with the mort4 gage, including any costs necessary to close the

5 mortgage: Provided, That some or all of these

6 charges and costs may be paid on behalf of the

7 mortgagor by any person or entity (including the

8 seller, a governmental jurisdiction, or a private non9 profit entity), under such terms and conditions as

10 the Secretary may prescribe.

11 ‘‘(2) LOAN TO COVER EXPENSES.—Any charges

12 or costs paid on behalf of a mortgagor under para13 graph (1) may be in the form of a loan secured by

14 the property under such terms and conditions as the

15 Secretary may prescribe. Any such indebtedness—

16 ‘‘(A) shall be a lien subordinate to that of

17 the insured mortgage;

18 ‘‘(B) shall not be part of the loan secured

19 by the mortgage insured under this section, and

20 ‘‘(C) shall not be considered for purposes

21 of determining the maximum mortgage amount

22 under subsection (c)(3).

23 ‘‘(e) MORTGAGE INSURANCE PREMIUM.—

24 ‘‘(1) IN GENERAL.—In connection with the in25 surance of a mortgage under this section, the Sec-
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1 retary shall establish and collect a deferred up-front

2 premium and an annual premium, as provided in

3 section 203(c)(2) of this Act and section 2103(b)(2)

4 of the Omnibus Budget Reconciliation Act of 1990,

5 except as provided by paragraph (2) of this sub6 section.

7 ‘‘(2) PAYMENT OF DEFERRED UP-FRONT PRE8 MIUM.—

9 ‘‘(A) IN GENERAL.—The mortgagee shall

10 pay the amount of the deferred up-front pre11 mium due under subparagraph (B) at the time

12 of the sale of the property or when the mort13 gage is paid in full, and shall remit the amount

14 to the Secretary according to such procedures

15 and at such time as the Secretary may pre16 scribe.

17 ‘‘(B) AMOUNT OF PAYMENT.—The amount

18 of the up-front premium payable to the Sec19 retary under paragraph (2) shall be the lesser

20 of—

21 ‘‘(i) the amount of the premium es22 tablished under paragraph (1), minus any

23 refund due; and

24 ‘‘(ii) 50 percent of the net apprecia25 tion of the property, as determined by the
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1 Secretary, if the premium is due because

2 of a sale of the property.

3 ‘‘(C) DEFINITION.—For purposes of the

4 subparagraph (B), ‘net appreciation of the

5 property’ means any increase in the value of the

6 property over the original purchase price, less

7 the reasonable costs of sale and the reasonable

8 costs of improvements made to the property.

9 ‘‘(3) STREAMLINE REFINANCING.—Notwith10 standing paragraph (2), no part of the up-front pre11 mium established in connection with a mortgage

12 that was insured under this section and that is refi13 nanced under section 223(a)(7) shall be payable

14 under paragraph (2).

15 ‘‘(f) DEFINITION.—For purposes of this section, the

16 term ‘appraised value’ means the amount set forth in the

17 written statement required under section 226, or a similar

18 amount determined by the Secretary if section 226 does

19 not apply.

20 ‘‘(g) OBLIGATION OF GENERAL INSURANCE FUND.—

21 Any mortgagee under a mortgage insured under this sec22 tion is entitled to receive the benefits of the insurance as

23 provided in section 204(a) with respect to mortgages in24 sured under section 203, and the provisions of subsections

25 (b), (c), (d), (e), (f), (g), (h), (j), and (k) of section 204
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1 shall apply to the mortgages insured under this section,

2 except that—

3 ‘‘(1) all references in section 204 to the Mutual

4 Mortgage Insurance Fund or the Fund shall be con5 strued to refer to the General Insurance Fund;

6 ‘‘(2) all references therein to section 203 shall

7 be construed to refer to this section; and

8 ‘‘(3) the excess remaining, referred to in section

9 204(f)(1), shall be retained by the Secretary and

10 credited to the General Insurance Fund.

11 ‘‘(h) LIMIT ON INSURED MORTGAGES.—The aggre12 gate dollar amount of commitments to insure mortgage

13 under this section for any fiscal year may not exceed 5

14 percent of the amount of commitments to insure mort15 gages covering one- to four-family properties that were

16 made by the Secretary under this title during the preced17 ing fiscal year. However, the Secretary may make commit18 ments to insure mortgages for up to an additional 5 per19 cent in the case of properties in empowerment zones or

20 enterprise communities approved under subchapter U of

21 Chapter 1 of the Internal Revenue Code of 1986, or in

22 equivalent State-approved enterprise zones. No more than

23 20 percent of the dwelling units located in a revitalization

24 area may be subject to a mortgage insured under this sec25 tion.’’.
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1 (b) IMPLEMENTATION.—The Secretary shall, by in2 terim rule published for effect in the Federal Register, es3 tablish such requirements as may be necessary to carry

4 out the provisions of subsection (a). The Secretary shall

5 issue final regulations based on the interim rule after no6 tice and opportunity for public comment.

7 (c) EVALUATION.—No later than 48 months after the

8 date of implementation, the Secretary shall evaluate the

9 program and, if appropriate, recommend to Congress leg10 islation to terminate or improve it.

11 MAXIMUM DOLLAR AMOUNT FOR FHA SINGLE FAMILY

12 MORTGAGES

13 SEC. 302. Subparagraph (A) of the first sentence of

14 section 203(b)(2) of the National Housing Act is amended

15 by striking clause (ii) and all that follows through ‘‘1992;’’

16 and inserting in lieu thereof the following—

17 ‘‘(ii) 85 percent of the dollar amount

18 limitation determined under section

19 305(a)(2) of the Federal Home Loan

20 Mortgage Corporation Act for a residence

21 of the applicable size;

22 except that the applicable dollar amount limita23 tion in effect for any area under this subpara24 graph (A) may not be less than the greater of—

25 ‘‘(I) the dollar amount limitation

26 in effect under this section for the
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1 area on the date of enactment of the

2 Housing Choice and Community In3 vestment Act of 1994; or

4 ‘‘(II) the applicable average area

5 purchase price determined under sec6 tion 143(e)(2) of the Internal Revenue

7 Code of 1986, adjusted by the Sec8 retary to reflect a single amount using

9 purchase prices for residences that

10 have been previously occupied, and for

11 residences that have not been so occu12 pied, which amount shall be adjusted

13 by the Secretary annually on the basis

14 of the Constant Quality Housing

15 Price Index;’’.

16 STREAMLINED REFINANCING

17 FOR HUD-HELD MORTGAGES

18 SEC. 303. (a) Section 223(a) of the National Housing

19 Act is amended—

20 (1) in paragraph (7), by striking the colon im21 mediately preceding the second proviso and all that

22 follows though ‘‘and the mortgagee’’;

23 (2) by redesignating paragraph (8) as para24 graph (9) and inserting the following new paragraph

25 immediately after paragraph (7):
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1 ‘‘(8) given to refinance a mortgage held by the

2 Secretary, upon such terms and conditions as the

3 Secretary may prescribe, covering property on which

4 there is located a one- to four-family residence, or a

5 one-family unit in a condominium project, which

6 mortgage was formerly insured under this Act and

7 subsequently assigned to the Secretary: Provided,

8 That the mortgagor has not previously refinanced a

9 mortgage pursuant to this paragraph: Provided fur10 ther, That the mortgagor has made all payments due

11 under the note secured by the existing mortgage and

12 all payments due under the note for at least the pre13 vious six months, or the mortgagor is under a for14 bearance agreement and has made all payments due

15 under the notice secured by the existing mortgage

16 for at least the previous six months: Provided fur17 ther, That the principal amount of the refinancing

18 mortgage may not exceed the outstanding principal

19 balance of the existing mortgage by more than addi20 tional amounts owed by the mortgagor due to the

21 delinquency and to the receipt of assignment assist22 ance under section 230: Provided further, That the

23 monthly payment due under the refinancing mort24 gage may not exceed the monthly payment due

25 under the existing mortgage: Provided further, That
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1 the refinancing mortgage may have a term not more

2 than 12 years in excess of the unexpired term of the

3 assigned mortgage: Provided further, That the refi4 nancing mortgage may be insured under section

5 203(b) or 221(d)(2) of this Act, at the option of the

6 mortgagee, or under section 234(c) of this Act in the

7 case of a condominium: Provided further, That a re8 financing mortgage insured under section 221(d)(2)

9 shall involve a principal obligation in an amount not

10 to exceed 50 percent of the applicable dollar limita11 tion for a one- to four-family residence under section

12 203(b)(2); or’’; and

13 (3) by adding the following new paragraph after

14 paragraph (9), as redesignated by paragraph (2) of

15 this section—

16 ‘‘(10) A mortgage of the character described in

17 paragraphs (1) through (6) of this subsection shall

18 have a maturity and a principal obligation not in ex19 cess of the maximums prescribed under the applica20 ble section or title of this Act, except that in no case

21 may the principal obligation of a mortgage referred

22 to in paragraph (5) of this subsection exceed 90 per23 cent of the appraised value of the mortgage prop24 erty, and shall bear interest at such rate as may be

25 agreed upon by the mortgagor and the mortgagee.’’.
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1 (b) The Secretary of Housing and Urban Develop2 ment may implement the authority to refinance a mort3 gage held by the Secretary under section 223(a)(8) of the

4 National Housing Act, as added by subsection (a) of this

5 section, by notice published in the Federal Register setting

6 forth such requirements as may be necessary.

7 (c) The authority to refinance a mortgage held by the

8 Secretary of Housing and Urban Development under such

9 section 223(a)(8) shall terminate 30 months after the date

10 of enactment of this Act. The total number of mortgages

11 refinanced under such section 223(a)(8) may not exceed

12 20,000.

13 INNOVATIVE AFFORDABLE HOUSING DEMONSTRATIONS

14 SEC. 304. (a) The Secretary of Housing and Urban

15 Development (the ‘‘Secretary’’) may carry out demonstra16 tions which have the potential to increase homeownership

17 opportunities through the insurance under the National

18 Housing Act of alternative mortgage instruments, and

19 through partnerships with the Federal Home Loan Mort20 gage Corporation and the Federal National Mortgage As21 sociation, with the Federal Home Loan Banks and their

22 members, and with State and local housing finance agen23 cies, in connection with meeting their responsibilities to

24 achieve affordable housing goals. These demonstrations

25 may include testing the pricing of different types of in26 sured mortgage instruments, partnerships with the Cor-
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1 poration, the Association, or the Federal Home Loan

2 Banks under which mortgage insurance provided by the

3 Secretary shall be used as a credit enhancement in connec4 tion with their mortgage lending and secondary market

5 activities, and partnership activities to achieve both home6 ownership and the stabilization or revitalization of neigh7 borhoods or to address special needs.

8 (b) Each demonstration may be approved for a term

9 of up to three years. The term of an insured mortgage

10 or activity may extend beyond the term of the demonstra11 tion. The total number of mortgages insured pursuant to

12 demonstrations under this section in any fiscal year may

13 not exceed 10 percent of the number of single family mort14 gages insured in the previous fiscal year. The total number

15 of mortgages insured pursuant to any one demonstration

16 in any fiscal year may not exceed 5 percent of the number

17 of single family mortgages insured in the previous fiscal

18 year.

19 (c) The Secretary may waive requirements of the Na20 tional Housing Act and any other applicable statutory and

21 regulatory requirements that the Secretary determines are

22 not consistent with the purposes of this section.

23 (d) The general insurance fund created by section

24 519 of the National Housing Act shall be available as a

25 revolving fund for carrying out mortgage insurance dem-
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1 onstrations under this section involving alternative mort2 gage transactions. The Secretary shall determine the

3 terms and conditions of insurance, notwithstanding any

4 provision of the National Housing Act.

5 (e) In approving a demonstration under this section,

6 the Secretary may establish such requirements as the Sec7 retary considers to be appropriate to further its purposes.

8 (f) Each demonstration under this section shall—

9 (1) be approved personally by the Secretary;

10 (2) be consistent with the overall purposes of

11 the program or programs under which the waiver is

12 granted;

13 (3) be evaluated; and

14 (4) be consistent with the Fair Housing Act,

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

16 of the Rehabilitation Act of 1973, and the Age Dis17 crimination Act of 1975.

18 (g) For each demonstration, there shall be prepared

19 an annual progress report. The Secretary shall submit a

20 report to Congress within one year after completion of

21 each demonstration, describing the results of the dem22 onstration and making any recommendations for legisla23 tion.
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1 (h) There is authorized to be appropriated

2 $1,000,000 for the evaluation of demonstrations under

3 this section.

4 (i) The term ‘‘alternative mortgage instruments’’ in5 cludes mortgages within the definition of ‘‘alternative

6 mortgage transaction’’ in section 803(1) of the Alternative

7 Mortgages Transaction Party Act of 1982.

8 SINGLE FAMILY RISK-SHARING MORTGAGE INSURANCE

9 PROGRAM

10 SEC. 305. (a) The National Housing Act is amended

11 by adding the following new section at the end of title II:

12 ‘‘SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL

13 AGENCIES

14 ‘‘SEC. 257. (a) AUTHORITY.—Notwithstanding any

15 other provision of this Act inconsistent with this section,

16 the Secretary may insure and make commitments to in17 sure under this section mortgages on single family prop18 erties under risk-sharing mortgage insurance programs es19 tablished with one or more State or agencies. Only mort20 gages executed in connection with the acquisition of a sin21 gle family property or for the refinancing of a mortgage

22 insured under this section shall be eligible. Under these

23 programs, the Secretary insures a portion of the mortgage

24 and the State or local agency insures the remainder.

25 ‘‘(b) PURPOSES.—The purposes of the program

26 under this section are (1) to increase the availability of
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1 single family mortgage financing in areas where there is

2 need for mortgage insurance under this Act that cannot

3 be met due to particularly high average median house

4 prices in the area, and (2) to foster arrangements with

5 State and local agencies to share the risk of mortgage in6 surance.

7 ‘‘(c) APPLICATIONS.—(1) The Secretary may approve

8 an application submitted by a State or local agency to es9 tablish a risk-sharing program under this section, based

10 on a determination that the State or local agency dem11 onstrates that (A) it has the legal authority under State

12 law and, where applicable, local law to participate in the

13 risk-sharing mortgage insurance program; (B) it has car14 ried out, or has the potential to carry out, a financially

15 sound, efficient, and effective mortgage insurance pro16 gram; and (C) it has the ongoing administrative and fi17 nancial capacity necessary to carry out a program under

18 this section.

19 ‘‘(2) For a violation of requirements and procedures

20 under the risk-sharing agreement between the State or

21 local agency and the Secretary or for other good cause,

22 the Secretary may cancel approval of a State or local agen23 cy under this section by giving notice to the State or local

24 agency. The cancellation shall be effective upon receipt of

25 the notice by the agency or at a later date specified by
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1 the Secretary. A decision by the Secretary to cancel ap2 proval shall be final and conclusive and shall not be sub3 ject to judicial review.

4 ‘‘(d) DELEGATION OF AUTHORITY TO INSURE TO

5 STATE AND LOCAL AGENCIES.—Pursuant to a risk-shar6 ing agreement with a State or local agency, the Secretary

7 shall delegate the authority to insure and make commit8 ments to insure the portion of mortgages to be insured

9 by the Secretary under this section to the State or local

10 agency. The risk-sharing agreement shall contain such

11 other matters as the Secretary and the State or local agen12 cy agree.

13 ‘‘(e) UNDERWRITING STANDARDS AND LOAN TERMS

14 AND CONDITIONS.—The State or local agency shall adopt

15 underwriting standards and loan terms and conditions for

16 purposes of underwriting loans to be insured under this

17 section without regard to requirements of this Act other

18 than this section, section 203(g), and section 203(r)(2),

19 subject to review and approval by the Secretary.

20 ‘‘(f) MORTGAGE INSURANCE PREMIUMS.—(1) The

21 State or local agency shall require the payment of mort22 gage insurance premiums by mortgagors.

23 ‘‘(2) The Secretary shall establish policies and proce24 dures for the sharing of premiums between the Secretary

25 and the State or local agency, based on the relative risk
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1 to, and administrative costs of, the Secretary and the

2 State or local agency. The share paid to the Secretary

3 shall not be less than an amount necessary to cover the

4 risk to, and administrative costs of, the Secretary.

5 ‘‘(g) LIMITATIONS ON PRINCIPAL MORTGAGE

6 AMOUNT.—(1) The portion of the mortgage insured under

7 this section by the Secretary may not exceed an amount

8 equal to the lesser of (A) 80 percent of the appraised value

9 of the property, or (B) the maximum amount the Sec10 retary may insure under section 203(b) of this Act for the

11 area (but not including any amount for a mortgage insur12 ance premium).

13 ‘‘(2) The total principal amount of a mortgage in14 sured under this section by the Secretary and the State

15 or local agency (A) shall exceed the maximum amount the

16 Secretary may insure under subparagraph (A) of the first

17 sentence of section 203(b)(2) of this Act for the area, and

18 (B) may not exceed the conforming loan limitation deter19 mined under section 305(a)(2) of the Federal Home Loan

20 Mortgage Corporation Act for a residence of the applicable

21 size, as adjusted annually.

22 ‘‘(3) The principal obligation of a mortgage may not

23 exceed an amount determined in accordance with subpara24 graph (B) of the first sentence of section 203(b)(2) of this

25 Act plus the mortgage insurance premium.
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1 ‘‘(4) Notwithstanding paragraph (2)(A) or (3), in the

2 case of refinancing of an existing mortgage insured under

3 this section, the principal obligation of a refinancing mort4 gage may not exceed the outstanding principal balance of

5 the existing mortgage plus any mortgage insurance pre6 mium.

7 ‘‘(h) INSURANCE CLAIMS.—(1) In the case of a de8 fault and foreclosure of a mortgage insured under this sec9 tion, the mortgagee may file a claim with the State or

10 local agency for insurance benefits in accordance with re11 quirements established by the State or local agency and

12 approved by the Secretary. The agency shall pay the full

13 amount of the claim owed to the mortgagee. If the loss

14 on the insured mortgage exceeds the amount of insurance

15 by the agency, the Secretary shall reimburse the agency

16 for the difference.

17 ‘‘(2) The insurance of a mortgage under this section

18 by the Secretary shall be an obligation of the General In19 surance Fund created pursuant to section 519 of this Act.

20 ‘‘(i) INAPPLICABILITY OF THE ASSIGNMENT PRO21 GRAM.—Section 230 shall not apply to mortgages insured

22 under the program authorized by this section.

23 ‘‘(j) RESTRICTION ON GNMA SECURITIZATION.—

24 The Government National Mortgage Association shall not

25 securitize any loans insured under this section.
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1 ‘‘(k) DEFINITIONS.—As used in this section:

2 ‘‘(1) The term ‘local agency’ shall mean an

3 agency of a unit of general local government, as de4 fined by the Secretary, which has the authority to

5 insure mortgages and to participate with the Sec6 retary in the single family risk-sharing program

7 under this section, or an agency or instrumentality

8 of a local agency if the agency or instrumentality

9 has such authority.

10 ‘‘(2) The term ‘State agency’ shall mean an

11 agency of a State which has the authority to insure

12 mortgages and to participate with the Secretary in

13 the single family risk-sharing program under this

14 section, or an agency or instrumentality of a State

15 agency if the agency or instrumentality has such au16 thority.

17 ‘‘(3) The term single family property’ means a

18 property upon which there is located a dwelling de19 signed principally for occupancy by one family, and

20 includes a condominium and a cooperative.

21 ‘‘(4) The term ‘State’ shall mean the several

22 States and Puerto Rico, the District of Columbia,

23 Guam, the Trust Territory of the Pacific Islands,

24 American Samoa, and the Virgin Islands.’’.
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1 (b) The Secretary of Housing and Urban Develop2 ment may implement the program authorized by sub3 section (a) by entering into risk-sharing agreements nego4 tiated with State agencies, notwithstanding any otherwise

5 applicable requirement for regulations or notice published

6 in the Federal Register and notwithstanding any otherwise

7 applicable regulations of the Secretary.

8 HOMEOWNERSHIP COUNSELING AND OUTREACH

9 SEC. 306. (a) Section 106(a) of the Housing and

10 Community Development Act of 1968 is amended—

11 (1) in paragraph (1), by—

12 (A) inserting ‘‘or consortia of organiza13 tions’’ after ‘‘organizations’’;

14 (B) striking the ‘‘and’’ at the end of clause

15 (iii);

16 (C) striking the period from the end of

17 clause (iv) and inserting in lieu thereof ‘‘; and’’;

18 and

19 (D) inserting at the end the following new

20 clause (v):

21 ‘‘(v) the provision of outreach activi22 ties designed to improve the access of low23 and moderate-income households to home24 ownership and sources of mortgage cred25 it.’’;
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1 (2) in the second sentence of paragraph (2),

2 by—

3 (A) striking ‘‘clause (iii)’’ and inserting in

4 lieu thereof ‘‘clauses (iii) and (v)’’; and

5 (B) by inserting after ‘‘organizations’’ the

6 following: ‘‘or consortia of organizations’’; and

7 (3) by inserting at the end the following new

8 paragraph:

9 ‘‘(4) the Secretary of Housing and Urban De10 velopment may contract with national, State, or

11 community-based entities, and consortia of such en12 tities, to carry out activities under paragraph (1)(v).

13 Contractors shall be selected on a competitive basis,

14 in accordance with selection criteria determined by

15 the Secretary. The contractors shall carry out activi16 ties prescribed by the Secretary, including activities

17 such as—

18 ‘‘(A) leveraging Federal funds with other

19 sources of funding to support activities under

20 its counseling program, including leveraging

21 private, community-based resources for the pur22 pose of assisting prospective mortgagors achieve

23 homeownership;

24 ‘‘(B) conducting outreach and marketing

25 to prospective homebuyers, particularly those in
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1 targeted neighborhoods with a high proportion

2 of low- and moderate-income and minority

3 renter households;

4 ‘‘(C) coordinating a proactive pre-purchase

5 homeownership strategy that includes linking

6 other HUD-approved counseling providers and

7 community-based organizations, assisting pro8 spective homebuyers to repair credit, educating

9 potential homebuyers on the requirements of

10 homeownership, providing technical assistance,

11 assisting in the packaging of mortgage loan ap12 plications, matching a family’s resources with

13 appropriate Government and private sector

14 homeownership assistance programs, and offer15 ing post-purchase and default-prevention coun16 seling to help homeowners retain their homes;

17 and

18 ‘‘(D) serving as an advocate for home19 buyers by working with the mortgage lending

20 industry with regard to overcoming mortgage

21 credit barriers to homeownership.’’.

22 (b) Section 106(c)(9) of such Act is amended by

23 striking ‘‘September 30, 1994’’ and inserting in lieu there24 of ‘‘September 30, 1996’’.
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1 (c) Section 106 of such Act is amended by adding

2 at the end the following new subsection:

3 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

4 are authorized to be appropriated for the purposes of this

5 section, without fiscal year limitation, such sums as may

6 be necessary, except that there are authorized to be appro7 priated $50,000,000 for each of fiscal years 1995 and

8 1996. Any amounts so appropriated shall remain available

9 until expended.’’.

10 (d) Section 106(a)(3) of such Act is hereby repealed.

11 Subtitle C—National Homeownership Fund

12 Demonstration

13 AMENDMENTS TO NAHA

14 SEC. 311. Subtitle A of title III of the Cranston-Gon15 zalez National Affordable Housing Act is amended to read

16 as follows:

17 ‘‘Subtitle A—National Homeownership Fund

18 Demonstration

19 ‘‘SEC. 301. SHORT TITLE.

20 ‘‘This subtitle may be cited as the ‘National Home21 ownership Fund Demonstration Act’.

22 ‘‘SEC. 302. PROGRAM AUTHORITY.

23 ‘‘(a) IN GENERAL.—The Secretary may provide as24 sistance, in accordance with the provisions of this subtitle,

25 for first-time homebuyers (including homebuyers buying
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1 shares in limited equity cooperatives) in the following

2 manners:

3 ‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance

4 payments through grantees to provide amounts for

5 downpayments (including closing costs and other

6 costs payable at the time of closing) on mortgages

7 for such homebuyers.

8 ‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist9 ance payments through grantees to provide loans

10 with payment of interest and principal, as deter11 mined by the grantee.

12 ‘‘(3) CAPITALIZATION OF REVOLVING LOAN

13 FUNDS.—Grants to public organizations or agencies

14 to establish revolving loan funds to provide home15 ownership assistance to eligible first-time home16 buyers consistent with the requirements of this sub17 title. Such grants shall be matched by an equal

18 amount of local investment in such revolving loan

19 funds. Any proceeds or repayments from loans made

20 under this paragraph shall be returned to the revolv21 ing loan fund established under this paragraph to be

22 used for purposes related to this section.

23 ‘‘(b) ELIGIBILITY REQUIREMENTS.—Assistance pay24 ments under this subtitle may be made only to homebuyers

25 and for mortgages meeting the following requirements:
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1 ‘‘(1) FIRST-TIME HOMEBUYER.—The home2 buyer is an individual who—

3 ‘‘(A)(i) (and whose spouse) has had no

4 ownership in a principal residence during the 3-

5 year period ending on the date of purchase of

6 the property with respect to which assistance

7 payments are made under this subtitle;

8 ‘‘(ii) is a displaced homemaker who, except

9 for owning a home with his or her spouse or re10 siding in a home owned by the spouse, meets

11 the requirements of clause (i); or

12 ‘‘(iii) is a single parent who, except for

13 owning a home with his or her spouse or resid14 ing in a home owned by the spouse while mar15 ried, meets the requirements of clause (i); and

16 ‘‘(B) meets the requirements of subpara17 graph (A) (i), (ii), or (iii), except for owning, as

18 a principal residence, a dwelling unit whose

19 structure is not permanently affixed to a per20 manent foundation in accordance with local or

21 other applicable regulations.

22 ‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The

23 aggregate annual income of the homebuyer and the

24 members of the family of the homebuyer residing

25 with the homebuyer, for the 12-month period preced-
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1 ing the date of the application of the homebuyer for

2 assistance under this subtitle, does not exceed 80

3 percent of the median income for a family of 4 per4 sons (adjusted by family size) in the applicable met5 ropolitan statistical area (or such other area that the

6 Secretary determines for areas outside of metropoli7 tan statistical areas). The Secretary shall provide for

8 certification of such income for purposes of initial

9 eligibility for assistance payments under this sub10 title.

11 ‘‘(3) PRINCIPAL RESIDENCE.—The property se12 curing the mortgage is a single-family residence or

13 unit in a cooperative or condominium and is the

14 principal residence of the homebuyer.

15 ‘‘(4) MAXIMUM MORTGAGE AMOUNT.—The

16 principal obligation of the first mortgage and any

17 second mortgage assistance provided under this sub18 title does not exceed the principal amount that could

19 be insured with respect to the property under section

20 203(b) of the National Housing Act.

21 ‘‘(c) TERMS OF ASSISTANCE.—

22 ‘‘(1) SECURITY.—Assistance payments under

23 this subtitle shall be secured by a lien on the prop24 erty involved. The lien shall be subordinate to all
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1 mortgages existing on the property on the date on

2 which the first assistance payment is made.

3 ‘‘(2) REPAYMENT IF PROPERTY CEASES TO BE

4 PRINCIPAL RESIDENCE.—If the property for which

5 assistance payments are made ceases to be the prin6 cipal residence of the first-time homebuyer (or the

7 family of the homebuyer), during a time period spec8 ified by the Secretary or the grantee, whichever is

9 longer, the Secretary may provide for the repayment

10 of all or a portion of the assistance payments.

11 ‘‘(d) ALLOCATION.—

12 ‘‘(1) IN GENERAL.—Each applicant shall sub13 mit an application in such form and in accordance

14 with such procedures as the Secretary shall estab15 lish.

16 ‘‘(2) MINIMUM REQUIREMENTS.—An applica17 tion under this section shall contain a plan that de18 scribes how the applicant will achieve the objectives

19 of this subtitle. The application shall contain at a

20 minimum—

21 ‘‘(A) a description of the geographic area

22 to be covered;

23 ‘‘(B) the characteristics of the households

24 to be served;
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1 ‘‘(C) a description and commitment of

2 other public and private resources available in

3 connection with assistance under this subtitle;

4 ‘‘(D) a description of any secondary mar5 ket involvement and commitment;

6 ‘‘(E) a description and commitment of any

7 non-traditional capital resources;

8 ‘‘(F) provision of housing counseling as9 sistance available to assist borrowers;

10 ‘‘(G) a description of any restrictions on

11 resale and profits;

12 ‘‘(H) a description of resources available to

13 undertake rehabilitation of properties when

14 needed;

15 ‘‘(I) the process for award and disburse16 ment of funds to borrowers; and

17 ‘‘(J) the past history of the applicant in

18 undertaking similar projects.

19 ‘‘(3) SELECTION.—Amounts available in any

20 fiscal year for assistance under this subtitle shall be

21 allocated to States (including State agencies) or non22 profit housing intermediaries for homebuyers

23 through a national competition in accordance with

24 criteria established by the Secretary. These criteria

25 shall include the extent to which the applicant has
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1 experience in providing homeownership opportunities

2 for low- and moderate-income households.

3 ‘‘SEC. 303. DEFINITIONS.

4 ‘‘For purposes of this subtitle:

5 ‘‘(1) DISPLACED HOMEMAKER.—The term ‘dis6 placed homemaker’ means an individual who—

7 ‘‘(A) is an adult;

8 ‘‘(B) has not worked full-time full-year in

9 the labor force for a number of years, but has

10 during such years, worked primarily without re11 muneration to care for the home and family;

12 and

13 ‘‘(C) is unemployed or underemployed and

14 is experiencing difficulty in obtaining or up15 grading employment.

16 ‘‘(2) SINGLE PARENT.—The term ‘single par17 ent’ means an individual who—

18 ‘‘(A) is unmarried or legally separated

19 from a spouse; and

20 ‘‘(B)(i) has 1 or more minor children for

21 whom the individual has custody or joint cus22 tody; or

23 ‘‘(ii) is pregnant.

24 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

25 the Secretary of Housing and Urban Development.
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1 ‘‘(4) STATE.—The term ‘State’ means the

2 States of the United States, the District of Colum3 bia, the Commonwealth of Puerto Rico, the Com4 monwealth of the Northern Mariana Islands, Guam,

5 the Virgin Islands, American Samoa, the Trust Ter6 ritory of the Pacific Islands, and any other territory

7 or possession of the United States.

8 ‘‘SEC. 304. REPORT.

9 ‘‘The Secretary shall submit to the Congress, not

10 later than 6 months following the last obligation of assist11 ance by grantees under this subtitle, a report containing

12 a description of the activities carried out under this sub13 title and an analysis of the effectiveness of such assistance

14 in assisting first-time homebuyers.

15 ‘‘SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

16 ‘‘There are authorized to be appropriated for assist17 ance payments under this subtitle $100,000,000 for fiscal

18 year 1995 and such sums as may be necessary for fiscal

19 year 1996. Any amount appropriated under this section

20 shall remain available until expended.’’.

21 Subtitle C—Authorizations

22 FLEXIBLE SUBSIDY PROGRAM

23 SEC. 321. (a) AUTHORIZATION OF APPROPRIA24 TIONS.—Section 201(j)(5) of the Housing and Community
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1 Development Amendments of 1978 (12 U.S.C. 1715z–

2 1a(j)(5)) is amended to read as follows:

3 ‘‘(5) There are authorized to be appropriated

4 for assistance under the flexible subsidy fund not to

5 exceed $50,000,000 for fiscal year 1995 and not to

6 exceed $50,000,000 for fiscal year 1996.’’.

7 (b) USE OF SECTION 236 RENTAL ASSISTANCE

8 FUND AMOUNTS.—Section 236(f)(3) of the National

9 Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by

10 striking ‘‘September 30, 1994’’ and inserting ‘‘September

11 30, 1996’’.

12 SERVICE COORDINATORS IN MULTIFAMILY HOUSING

13 SEC. 322. There are authorized to be appropriated

14 for assistance for service coordinators under section 676

15 of the Housing and Community Development Act of 1992,

16 section 8(d)(2)(F)(i) of the United States Housing Act of

17 1937, section 202 of the Housing Act of 1959, and section

18 811 of the Cranston-Gonzalez National Affordable Hous19 ing Act, $16,300,000 for fiscal year 1995 and

20 $16,700,000 for fiscal year 1996.

21 LIMITATION ON GNMA GUARANTEES FOR MORTGAGE22 BACKED SECURITIES

23 SEC. 323. Section 306(g)(2) of the Federal National

24 Mortgage Association Charter Act (12 U.S.C. 1721(g)(2))

25 is amended to read as follows:
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1 ‘‘(2) Notwithstanding any other provision of

2 law and subject only to the absence of qualified re3 quests for guarantees, to the authority provided in

4 this subsection, and to the extent of or in such

5 amounts as any funding limitation approved in ap6 propriation Acts, the Association shall enter into

7 commitments to issue guarantees under this sub8 section in an aggregate amount of $130,000,000,000

9 during fiscal year 1995 and $130,000,000,000 dur10 ing fiscal year 1996. There is authorized to be ap11 propriated such sums as may be necessary to cover

12 the costs (as such term is defined in section 502 of

13 the Congressional Budget Act of 1974) of guaran14 tees issued under this Act by the Association.’’.

15 LIMITATION ON FHA INSURING AUTHORITY

16 SEC. 324. Section 531(b) of the National Housing

17 Act (12 U.S.C. 1735f–9(b)) is amended to read as follows:

18 ‘‘(b) Notwithstanding any other provision of law and

19 subject only to the absence of qualified requests for insur20 ance, to the authority provided in this Act, and to the limi21 tation in subsection (a), the Secretary shall enter into

22 commitments to insure mortgages under this Act with an

23 aggregate principal amount of $104,666,794,000 during

24 fiscal year 1995 and $91,037,845,000 during fiscal year

25 1996.’’.
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1 TITLE IV—ECONOMIC OPPORTUNITY;

2 EXPANSION OF AFFORDABLE HOUSING

3 Subtitle A—Economic Opportunity Economic

4 Opportunities for Residents in HUD-assisted Programs

5 SEC. 401. Section 3 of the Housing and Urban Devel6 opment Act of 1968 is amended—

7 (1) in subsection (c)(1)(B)(i), by inserting ‘‘,

8 and to noncustodial parents of children living in

9 such developments and subject to court-ordered or

10 administratively-ordered support agreements’’ before

11 the period;

12 (2) by adding at the end of subsection (c) the

13 following new paragraph (3):

14 ‘‘(3) ESTABLISHMENT OF ECONOMIC OPPOR15 TUNITY CENTERS.—

16 ‘‘(A) IN GENERAL.—The Secretary shall

17 establish Economic Opportunity Centers, to

18 provide services which will link low-income resi19 dents with jobs generated by housing and com20 munity development assistance.

21 ‘‘(B) ELIGIBLE GRANTEES.—The Sec22 retary may make grants to State or local gov23 ernments or their agencies, public housing

24 agencies, including Indian housing authorities,

25 public or private non-profit organizations or in-
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1 stitutions (including community action agen2 cies), or other public or private entities—

3 ‘‘(i) which are carrying out training,

4 employment development, education, or

5 other economic development activities in

6 communities which receive housing and

7 community development assistance;

8 ‘‘(ii) which provide housing, neighbor9 hood revitalization, community organizing,

10 income support or crime prevention pro11 grams to low- and very low-income persons

12 in communities which receive housing and

13 community development assistance; or

14 ‘‘(iii) which are administering housing

15 or community development programs which

16 generate a significant number of employ17 ment opportunities.

18 For fiscal year 1995, the Secretary may make

19 grants under this paragraph only to public

20 housing agencies, including Indian housing au21 thorities.

22 ‘‘(C) SELECTION CRITERIA.—The Sec23 retary shall select grantees on a competitive

24 basis, taking into account the demonstrated

25 ability of the applicants to—
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1 ‘‘(i) assess training and support serv2 ice needs;

3 ‘‘(ii) develop or provide employment

4 development skills to low-income persons;

5 ‘‘(iii) coordinate and utilize existing

6 public and private training, employment,

7 and business assistance funds or services;

8 ‘‘(iv) establish or maintain working

9 relationships with unions or other con10 struction trade associations, and public

11 and private employers; and

12 ‘‘(v) perform such other functions as

13 the Secretary may approve.

14 ‘‘(D) ELIGIBLE ACTIVITIES.—Amounts re15 ceived for the operation of Economic Oppor16 tunity Centers may be used for financial and

17 other assistance to individual residents to facili18 tate their participation in both existing and

19 newly created job training programs and em20 ployment opportunities. The agency may engage

21 in activities such as developing facilities for

22 training and support services; assessing training

23 and service needs of public housing residents;

24 funding essential training and support services

25 that are not otherwise funded; establishing a
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1 job bank of positions in connection with pro2 grams subject to this section; assisting contrac3 tors, contractor associations, and joint labor4 management committees to develop and fund

5 training and apprenticeship initiatives and pro6 grams; training and funding resident councils,

7 resident management corporations, neighbor8 hood groups, and community-based organiza9 tions to provide information about the require10 ments of this section and economic opportuni11 ties; funding the start-up costs of businesses;

12 providing links with related government and

13 private programs; and such other activities as

14 the Secretary may approve.

15 ‘‘(E) AUTHORIZATION OF APPROPRIA16 TIONS.—There are authorized to be appro17 priated for grants to carry out this paragraph,

18 $17,500,000 for fiscal year 1995 and such

19 sums as may be necessary for fiscal year

20 1996.’’; and

21 (3) by adding at the end the following new sub22 sections:

23 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated—
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1 ‘‘(1) $4,000,000 in fiscal year 1995 and such

2 sums as may be necessary in fiscal year 1996 for the

3 Secretary to establish and sustain employment train4 ing and business initiatives under this section with

5 other Federal agencies, through interagency agree6 ments providing for the transfer of amounts appro7 priated under this paragraph to other Federal agen8 cies; and

9 ‘‘(2) $3,500,000 in fiscal year 1995 and such

10 sums as may be necessary in fiscal year 1996 for the

11 Secretary to carry out a management and technical

12 assistance program for the development of materials,

13 systems, services, and information designed to en14 hance (A) the capacity of the Secretary to manage

15 activities under this section; and (B) the capacity of

16 public housing agencies, contractors, and other enti17 ties to comply with the requirements of this section.

18 ‘‘(i) OTHER RESOURCES.—The Secretary may permit

19 expenditure of funds appropriated for programs subject to

20 this section for job-related activities necessary to imple21 ment this section, including but not limited to training,

22 supervision of trainees, and job recruitment.’’.

23 RESIDENT MANAGEMENT/TENANT OPPORTUNITY

24 PROGRAM

25 SEC. 402. Section 20 of the United States Housing

26 Act of 1937 is amended—
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1 (1) by striking the section heading and insert2 ing in lieu thereof: ‘‘TENANT OPPORTUNITY PRO3 GRAM’’;

4 (2) in the first two sentences of subsection (b),

5 by striking ‘‘resident management program’’ the two

6 places it appears and inserting ‘‘tenant opportunity

7 program’’;

8 (3) in subsection (f)—

9 (A) by striking the subsection caption and

10 inserting in lieu thereof: ‘‘Tenant Opportunity

11 Assistance’’;

12 (B) in paragraph (1), by adding the follow13 ing new sentences at the end: ‘‘In addition, the

14 Secretary may provide financial assistance to

15 resident management corporations or resident

16 councils for activities sponsored by resident or17 ganizations for economic uplift, such as job

18 training, economic development, security, and

19 other self-sufficiency activities beyond those re20 lated to the management of public housing.

21 Resident councils or resident management cor22 porations may jointly apply for financial assist23 ance with public housing agencies.’’;

24 (C) in paragraph (2), by striking

25 ‘‘$100,000’’ and inserting ‘‘$250,000’’;
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1 (D) by inserting at the end the following

2 new paragraph:

3 ‘‘(5) 10 PERCENT SET-ASIDE.—The Secretary

4 may use up to 10 percent of the amounts appro5 priated under paragraph (3) to enter into contracts

6 with (A) various entities for monitoring, evaluation,

7 technical assistance, and information dissemination

8 in connection with activities under this subsection;

9 and (B) public housing agencies, resident organiza10 tions, and public or private entities for innovative

11 public/private initiatives that support the economic

12 development and increased self-sufficiency of public

13 housing residents. Eligible activities related to eco14 nomic development and self-sufficiency may include

15 such programs as counseling, treatment for sub16 stance abuse, child care, remedial education, job

17 training, and development of resident businesses.’’;

18 and

19 (E) Paragraph (3) is amended to read as

20 follows:

21 ‘‘(3) FUNDING.—Of any amounts made avail22 able for financial assistance under section 14, the

23 Secretary may use to carry out this subsection

24 $85,000,000 for fiscal year 1995 and such sums as

25 may be necessary for fiscal year 1996.’’.
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1 Subtitle B—Section 8 Initiatives

2 CHOICE IN RESIDENCY

3 SEC. 411. (a) Section 8(o) of the United States Hous4 ing Act of 1937, as amended by section 412 of this Act,

5 is further amended by adding the following new paragraph

6 at the end:

7 ‘‘(16)(A) The Secretary may make grants to

8 public housing agencies and nonprofit organizations

9 for the purpose of providing counseling to applicants

10 for and recipients of tenant-based assistance. The

11 counseling shall be designed to enable families to se12 lect units in areas without high concentrations of

13 persons living in poverty, as determined by the Sec14 retary. Eligible activities may include activities such

15 as—

16 ‘‘(i) advising families on strategies for ob17 taining appropriate housing;

18 ‘‘(ii) providing transportation assistance

19 and other services to give families access to

20 areas without high concentrations of persons

21 living in poverty;

22 ‘‘(iii) continuing advice and counseling to

23 assist families after moving to areas without

24 high concentrations of persons living in poverty;

25 and
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1 ‘‘(iv) undertaking aggressive outreach to

2 potential owners to expand the availability of

3 housing in areas without high concentrations of

4 persons living in poverty.

5 ‘‘(B) The Secretary may invite public housing

6 agencies to apply for grants under this paragraph.

7 In addition, the Secretary may select, on a competi8 tive basis, public housing agencies and nonprofit or9 ganizations for grants under this paragraph. In

10 making funding decisions, the Secretary may take

11 into account evidence in the application of commit12 ments of non-Federal assistance to be used in sup13 port of the proposed counseling program.

14 ‘‘(C) The Secretary may take failure by a public

15 housing agency to apply for a grant under this para16 graph and the effectiveness of an agency’s program

17 into account in determining amount of future fund18 ing under this subsection.

19 ‘‘(D) The budget authority available under sec20 tion 5(c) of this Act for tenant-based assistance

21 under this section is authorized to be increased by

22 $149,100,000, on or after October 1, 1995, and by

23 $152,900,000, on or after October 1, 1986, for

24 grants under this paragraph.’’.
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1 (b) The amendment made by subsection (a) shall

2 apply to assistance under contract on the date of enact3 ment of this Act as well as to assistance placed under con4 tract after the date of enactment.

5 MERGER OF THE CERTIFICATE AND VOUCHER PROGRAMS

6 SEC. 412. (a) MERGER OF CERTIFICATE AND

7 VOUCHER PROGRAMS.—Section 8(o) of the United States

8 Housing Act of 1937 is amended to read as follows:

9 ‘‘(o) CERTIFICATE PROGRAM.—(1) The Secretary

10 may provide assistance for tenant-based assistance using

11 a payment standard in accordance with this subsection.

12 The payment standard shall be used to determine the

13 monthly assistance which may be paid for any family, as

14 provided in paragraph (2) of this subsection, and shall not

15 exceed the fair market rental established under subsection

16 (c). However, the payment standard for a designated part

17 of the market area may exceed the fair market rental by

18 not more than 20 percent, where the Secretary determines

19 that higher market rents in that part of the market area

20 justify a higher payment standard. The Secretary may re21 quire a public housing agency to submit proposed payment

22 standards to the Secretary for approval.

23 ‘‘(2)(A) For a family receiving tenant-based assist24 ance, where the rent (including the amount allowed for

25 tenant-paid utilities) does not exceed the payment stand26 ard, the monthly assistance payment shall be the amount
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1 by which the rent exceeds the highest of the following

2 amounts, rounded to the nearest dollar:

3 ‘‘(i) 30 percent of the family’s monthly adjusted

4 income.

5 ‘‘(ii) 10 percent of the family’s monthly income.

6 ‘‘(iii) If the family is receiving payments for

7 welfare assistance from a public agency and a part

8 of such payments, adjusted in accordance with the

9 family’s actual housing costs, is specifically des10 ignated by such agency to meet the family’s housing

11 costs, the portion of such payments which is so des12 ignated.

13 ‘‘(B) For a family receiving tenant-based assistance,

14 where the rent (including the amount allowed for tenant15 paid utilities) exceeds the payment standard, the monthly

16 assistance payment shall be the amount by which the ap17 plicable payment standard exceeds the highest of the fol18 lowing amounts, rounded to the nearest dollar:

19 ‘‘(i) 30 percent of the family’s monthly adjusted

20 income.

21 ‘‘(ii) 10 percent of the family’s monthly income.

22 ‘‘(iii) If the family is receiving payments for

23 welfare assistance from a public agency and a part

24 of such payments, adjusted in accordance with the

25 family’s actual housing costs, is specifically des-
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1 ignated by such agency to meet the family’s housing

2 costs, the portion of such payments which is so des3 ignated.

4 ‘‘(C) For a family receiving project-based assistance,

5 the rent the family is required to pay shall be determined

6 in accordance with section 3(a)(1) and the amount of the

7 housing assistance payment shall be determined in accord8 ance with subsection (c)(3).

9 ‘‘(3) At the time a family initially receives tenant10 based assistance with respect to any unit, the total amount

11 a family may pay towards rent may not exceed 40 percent

12 of the family’s monthly adjusted income.

13 ‘‘(4) At the time a family initially receives assistance

14 under the certificate program, a family shall qualify as—

15 ‘‘(A) a very low-income family,

16 ‘‘(B) a family previously assisted under this

17 Act, or

18 ‘‘(C) a low-income family that meets eligibility

19 criteria specified by the Secretary.

20 ‘‘(5) Reviews of family income shall be made at least

21 annually.

22 ‘‘(6)(A) In selecting families to be assisted, pref23 erence shall be given to families which, at the time they

24 are seeking assistance, (i) occupy substandard housing

25 (including families that are homeless or living in a shelter
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1 for homeless families), (ii) are involuntarily displaced, or

2 (iii) are paying more than 50 percent of family income

3 for rent;

4 ‘‘(B) A public housing agency may provide for cir5 cumstances in which families who do not qualify for any

6 preference established in subparagraph (A) are provided

7 assistance under this subsection before families who do

8 qualify for such preference. However, not more than 10

9 percent in the case of tenant-based assistance and not

10 more than 30 percent in the case of project-based assist11 ance (or such higher percentage, in either case, deter12 mined by the Secretary to be necessary or appropriate)

13 of the families who initially receive assistance in any 1-

14 year period may be families who do not qualify for such

15 preference. The public housing agency shall, in implement16 ing the preceding sentence, establish a system of pref17 erences in writing and after public hearing to respond to

18 local housing needs and priorities which may include—

19 ‘‘(i) assisting very low-income families who ei20 ther reside in transitional housing assisted under

21 title IV of the Stewart B. McKinney Homeless As22 sistance Act, or participate in a program designed to

23 provide public assistance recipients with greater ac24 cess to employment and educational opportunities;
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1 ‘‘(ii) assisting families identified by local public

2 agencies involved in providing for the welfare of chil3 dren as having a lack of adequate housing that is a

4 primary factor in the imminent placement of a child

5 in foster care, or in preventing the discharge of a

6 child from foster care and reunification with his or

7 her family;

8 ‘‘(iii) assisting youth, upon discharge from fos9 ter care, in cases in which return to the family or

10 extended family or adoption is not available;

11 ‘‘(iv) assisting veterans who will use the assist12 ance for a dwelling unit designed for the handi13 capped, and, upon discharge or eligibility for dis14 charge from a hospital or nursing home, have a

15 physical disability which, because of the configura16 tion of their homes, prevents them from access to or

17 use of their homes, and

18 ‘‘(v) achieving other objectives of national hous19 ing policy as affirmed by Congress.

20 ‘‘(C) Any individual or family evicted from housing

21 assisted under the Act by reason of drug-related criminal

22 activity (as defined in subsection (f)(5)) shall not be eligi23 ble for a preference under any provision of this subpara24 graph for 3 years unless the evicted tenant successfully

25 completes a rehabilitation program approved by the Sec-
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1 retary (which shall include waiver for any member of a

2 family of an individual prohibited from tenancy under this

3 clause who the agency determines clearly did not partici4 pate in and had no knowledge of such criminal activity

5 or when circumstances leading to eviction no longer exist).

6 ‘‘(7) The Secretary shall require, for any unit, that—

7 ‘‘(A) the public housing agency inspect the unit

8 before any assistance payment may be made to de9 termine that the unit meets housing quality stand10 ards for decent, safe, and sanitary housing estab11 lished by the Secretary for the purpose of this sec12 tion; and

13 ‘‘(B) the public housing agency make annual or

14 more frequent inspections during the contract term.

15 No assistance payment may be made for a dwelling unit

16 which fails to meet such quality standards, unless any

17 such failure is promptly corrected by the owner and the

18 correction is verified by the public housing agency.

19 ‘‘(8) If a family vacates a dwelling unit, no assistance

20 payment may be made for the unit after the month during

21 which the unit was vacated.

22 ‘‘(9) A public housing agency may adjust its payment

23 standard under this subsection where necessary to assure

24 continued affordability for families receiving tenant-based

25 assistance.
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1 ‘‘(10) The Secretary may set aside up to 5 percent

2 of the budget authority available under this subsection as

3 an adjustment pool. The Secretary shall use amounts in

4 the adjustment pool for adjustments pursuant to para5 graph (9) to ensure continued affordability where the Sec6 retary determines additional assistance for this purpose is

7 necessary, based on documentation submitted by a public

8 housing agency.

9 ‘‘(11)(A) The rent for units assisted under this sub10 section shall be reasonable in comparison with rents

11 charged for comparable units in the private, unassisted

12 market.

13 ‘‘(B) A public housing agency shall, at the request

14 of a family receiving tenant-based assistance under this

15 subsection, assist such family in negotiating a reasonable

16 rent with an owner. A public housing agency shall review

17 the rent for a unit under consideration by the family (and

18 all rent increases for units under lease by the family) to

19 determine whether the rent (or rent increase) requested

20 by an owner is reasonable. If a public housing agency de21 termines that the rent (or rent increase) for a unit is not

22 reasonable, the agency shall disapprove a lease for such

23 unit.

24 ‘‘(C) If units assisted under this subsection are ex25 empt from local rent control while they are so assisted,
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1 the rent for such units shall be reasonable in comparison

2 with other units in the market area that are exempt from

3 local rent control.

4 ‘‘(12)(A) A public housing agency may make assist5 ance payments on behalf of a family which utilizes a man6 ufactured home as its principal place of residence. Such

7 payments may be made for the rental of the real property

8 on which there is located a manufactured home which is

9 owned by any such family.

10 ‘‘(B)(i) For assistance pursuant to this paragraph,

11 the rent for the space on which a manufactured home is

12 located and with respect to which assistance payments are

13 to be made includes maintenance and management

14 charges and tenant-paid utilities.

15 ‘‘(ii) The public housing agency shall establish a pay16 ment standard for the purpose of determining the monthly

17 assistance which may be paid for any family under this

18 paragraph. The payment standard may not exceed an

19 amount approved or established by the Secretary.

20 ‘‘(iii) The monthly assistance payment for assistance

21 under this paragraph shall be determined in accordance

22 with paragraph (2).

23 ‘‘(13)(A) Where the Secretary enters into an annual

24 contributions contract with a public housing agency pursu25 ant to which the agency will enter into a contract for as-
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1 sistance payments with respect to an existing structure

2 under this subsection, the contract for assistance pay3 ments may not be attached to the structure unless the

4 owner agrees to rehabilitate or newly construct the struc5 ture other than with assistance under this Act and other6 wise complies with the requirements of this section. The

7 public housing agency may approve such attachment for

8 up to 15 percent of the funding available for tenant-based

9 assistance administered by the agency under this section.

10 ‘‘(B) Notwithstanding any other provision of this sec11 tion, a public housing agency and an applicable State

12 agency may, on a priority basis, attach to structures not

13 more than an additional 15 percent of the assistance only

14 with respect to projects assisted under a State program

15 that permits the owner of the projects to prepay a State16 assisted or State-subsidized mortgage on the structure.

17 However, the attachment of assistance under this sub18 paragraph shall be for the purpose of—

19 ‘‘(i) providing incentives to owners to preserve

20 such projects for occupancy by low- and moderate21 income families (for the period that assistance under

22 this sentence is available), and

23 ‘‘(ii) to assist low-income families to afford any

24 increases in rent that may be required to induce the
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1 owner to maintain occupancy in the project by low2 and moderate-income families.

3 ‘‘(C) Any assistance provided to low-income families

4 under subparagraph (B) shall not be considered for pur5 poses of the limitation under paragraph (6) regarding the

6 percentage of families that may receive assistance under

7 this section who do not qualify for preferences under that

8 paragraph.

9 ‘‘(D) In the case of a contract for assistance pay10 ments that is attached to a structure under this para11 graph, a public housing agency shall enter into a contract

12 with an owner, contingent upon the future availability of

13 appropriations for the purpose of renewing expiring con14 tracts for assistance payments as provided in appropria15 tions Acts, to extend the term of the underlying contract

16 for assistance payments for such period or periods as the

17 Secretary determines to be appropriate to achieve long18 term affordability of the housing. The contract shall obli19 gate the owner to have such extensions of the underlying

20 contract for assistance payments accepted by the owner

21 and the owner’s successors in interest. To the extent as22 sistance is used as provided in the second sentence of sub23 paragraph (B), the contract for assistance may, at the op24 tion of the public housing agency, have an initial term not

25 exceeding 15 years.
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1 ‘‘(E) The Secretary shall annually survey public

2 housing agencies to determine which public housing agen3 cies have, in providing assistance in such year, reached

4 the 15 percent limitations contained in subparagraphs (A)

5 and (B), and shall report to the Congress on the results

6 of the survey.

7 ‘‘(F) For project-based assistance under this para8 graph, assistance contracts shall establish rents, and pro9 vide for rent adjustments, in accordance with subsection

10 (c).

11 ‘‘(14) A family may lease a unit, other than a public

12 housing unit, from the public housing agency with assist13 ance under this subsection. The Secretary may establish

14 appropriate program requirements for units owned by the

15 public housing agency, including requirements for HUD

16 approval of initial rents, rent adjustments, and adminis17 trative fees, taking into account that the agency admin18 istering the assistance is also the owner of the assisted

19 unit.

20 ‘‘(15) Subsection (c) shall not apply to tenant-based

21 assistance under this subsection.’’.

22 (b) PORTABILITY.—Section 8(r) of such Act is

23 amended—

24 (1) in each paragraphs (1) and (3), by striking

25 ‘‘subsection (b) or’’;
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1 (2) in paragraph (3), by inserting at the end

2 the following new sentence: ‘‘The Secretary may re3 serve amounts available for assistance under sub4 section (o) to compensate public housing agencies

5 which issue certificates to families that move into

6 the jurisdiction of the agency under portability pro7 cedures.’’; and

8 (3) by adding the following new paragraph at

9 the end:

10 ‘‘(5) A family may not receive a certificate from

11 an agency and move to another jurisdiction under

12 the tenant-based assistance program, if the family

13 has moved out of its assisted unit in violation of its

14 lease.’’.

15 (c) REPEAL OF REQUIREMENT THAT OWNERS OF

16 MULTIFAMILY HOUSING PROJECTS LEASE TO CERTIFI17 CATE AND VOUCHER HOLDERS.—Section 8(t) of such Act

18 is hereby repealed.

19 (d) HOMEOWNERSHIP OPTION.—Section 8(y) of such

20 Act is amended—

21 (1) in paragraph (1)(A), by inserting before the

22 semicolon ‘‘or owns or is acquiring shares in a coop23 erative’’;

24 (2) in paragraph (1)(B)(i), by inserting before

25 the semicolon ‘‘and demonstrates to the public hous-
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1 ing agency that it has sufficient resources for home2 ownership’’; and

3 (3) by amending paragraph (2)(A) to read as

4 follows:

5 ‘‘(A) DETERMINATION OF AMOUNT OF AS6 SISTANCE.—

7 ‘‘(i) Where the monthly homeowner8 ship expenses, as determined in accordance

9 with requirements established by the Sec10 retary, do not exceed the payment stand11 ard, the monthly assistance payment shall

12 be the amount by which the homeowner13 ship expenses exceed the highest of the fol14 lowing amounts, rounded to the nearest

15 dollar:

16 ‘‘(I) 30 percent of the family’s

17 monthly adjusted income.

18 ‘‘(II) 10 percent of the family’s

19 monthly income.

20 ‘‘(III) If the family is receiving

21 payments for welfare assistance from

22 a public agency and a part of such

23 payments, adjusted in accordance with

24 the family’s actual housing costs, is

25 specifically designated by such agency
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1 to meet the family’s housing costs, the

2 portion of such payments which is so

3 designated.

4 ‘‘(ii) Where the monthly homeowner5 ship expenses, as determined in accordance

6 with requirements established by the Sec7 retary, exceed the payment standard, the

8 monthly assistance payment shall be the

9 amount by which the applicable payment

10 standard exceeds the highest of the follow11 ing amounts, rounded to the nearest dollar:

12 ‘‘(I) 30 percent of the family’s

13 monthly adjusted income.

14 ‘‘(II) 10 percent of the family’s

15 monthly income.

16 ‘‘(III) If the family is receiving

17 payments for welfare assistance from

18 a public agency and a part of such

19 payments, adjusted in accordance with

20 the family’s actual housing costs, is

21 specifically designated by such agency

22 to meet the family’s housing costs, the

23 portion of such payments which is so

24 designated.’’.
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1 (e) TECHNICAL AND CONFORMING AMENDMENTS TO

2 THE 1937 ACT; DELETION OF OBSOLETE PROVISIONS.—

3 The United States Housing Act of 1937 is amended as

4 provided by this subsection.

5 (1) The second and third sentences of section

6 8(a) are hereby repealed.

7 (2) Section 8(b) is amended by—

8 (A) striking ‘‘RENTAL CERTIFICATES AND

9 OTHER EXISTING HOUSING PROGRAMS.—‘‘and

10 inserting ‘‘CERTIFICATES AND OTHER EXIST11 ING HOUSING PROGRAMS.—(1)’’; and

12 (B) striking the second sentence.

13 (3) Section 8(c)(3) is amended by striking the

14 subparagraph designation ‘‘(A)’’ and striking all of

15 subparagraph (B).

16 (4) The first sentence of section 8(c)(4) is

17 amended by striking ‘‘or by a family that qualifies

18 to receive’’ and all that follows through ‘‘1990’’.

19 (5) Sections 8(c) (5) and (7) are hereby re20 pealed.

21 (6) Section 8(c)(8) is amended by inserting

22 after ‘‘section’’ the following: ‘‘(other than a con23 tract under section 8(o))’’.

24 (7) Section 8(c)(9) is amended by striking

25 ‘‘(but not less than 90 days in the case of housing
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1 certificates or vouchers under subsection (b) or (o))’’

2 and inserting ‘‘, other than a contract under sub3 section (o)’’.

4 (8) Section 8(d)(1)(A) is amended—

5 (A) by inserting after the subparagraph

6 designation ‘‘(A)’’ the following: ‘‘except for as7 sistance under subsection (o),’’;

8 (B) in clause (i) by striking ‘‘(I)’’;

9 (C) in clause (i), by striking ‘‘and (II) 90

10 percent of such families in the case of assist11 ance not attached to a structure’’; and

12 (D) in clause (i), by striking ‘‘except’’ and

13 all that follows through the semicolon at the

14 end.

15 (9) Section 8(d)(2) is amended by striking the

16 third sentence of subparagraph (A) and all that fol17 lows through the end of paragraph (2).

18 (10) Section 8(f) is amended by—

19 (A) in paragraph (6), striking ‘‘(d)(2)’’

20 and inserting ‘‘(o)(13)’’; and

21 (B) in paragraph (7), striking ‘‘(b) or’’

22 and inserting before the period the following:

23 ‘‘and that provides for the eligible family to se24 lect suitable housing and to move to other suit25 able housing’’.
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1 (11) Section 8(j) is hereby repealed.

2 (12) Section 8(n) is hereby repealed.

3 (13) The first sentence of section 8(q)(1) and

4 sections 8(q)(2)(A)(i) and 8(q)(2) are each amended

5 by striking ‘‘subsections (b) and (o)’’ and inserting

6 ‘‘this section’’.

7 (14) Section 18(b)(3) is amended—

8 (A) in subparagraph (A)(v), by striking

9 ‘‘(excluding vouchers under section 8(o))’’ each

10 place it appears;

11 (B) in subparagraph (B), by striking

12 ‘‘8(d)(2)(A)’’ and inserting ‘‘8(o)(13)’’;

13 (C) in subparagraph (B)(ii), by striking

14 ‘‘excluding vouchers under section 8(o))’’; and

15 (D) in subparagraph (C)(i), by striking

16 ‘‘and vouchers’’.

17 (15) Section 21(b)(3) is amended—

18 (A) in the first sentence, by striking ‘‘cer19 tificate under section 8(b)(1) or a housing

20 voucher under section 8(o)’’ and inserting ‘‘ten21 ant-based assistance under section 8’’; and

22 (B) by striking the second sentence.

23 (16) Section 23(b)(3)(A) is amended by strik24 ing ‘‘Certificate and voucher assistance under sec-
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1 tion 8(b) and (o)’’ and inserting ‘‘Tenant-based as2 sistance under section 8’’.

3 (f) OTHER TECHNICAL AND CONFORMING AMEND4 MENTS.—

5 (1) Section 931 of the Cranston-Gonzalez Na6 tional Affordable Housing Act is amended by strik7 ing ‘‘assistance under the certificate and voucher

8 programs under sections 8(b) and (o)’’ and inserting

9 ‘‘tenant-based assistance under section 8’’.

10 (2) Section 861(b)(1)(D) of the Cranston-Gon11 zalez National Affordable Housing Act is amended

12 by striking ‘‘certificates or vouchers’’ and inserting

13 ‘‘assistance’’.

14 (3) Section 183(c)(2) of the Housing and Com15 munity Development Act of 1987 is amended by

16 striking ‘‘section 8(o)’’ and inserting ‘‘section 8’’.

17 (4) Section 223(a) of the Housing and Commu18 nity Development Act of 1987 is amended by strik19 ing ‘‘sections 8(b) and 8(o)’’ and inserting ‘‘section

20 8’’.

21 (5) The second sentence of section 533(a) of

22 the Housing Act of 1949 is amended by striking

23 ‘‘assistance payments as provided by section 8(o)’’

24 and inserting ‘‘tenant-based assistance as provided

25 under section 8’’.
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1 (g) IMPLEMENTATION.—The Secretary shall imple2 ment the amendments made by this section by regulation

3 issued after notice and opportunity for public comment.

4 The amendments made by this section shall take effect

5 upon a date specified by the Secretary in the Federal Reg6 ister. The Secretary may provide for the conversion of as7 sistance under the certificate and voucher programs, as

8 they existed before the effective date of the amendments

9 made by this section, to the certificate program estab10 lished under this section. However, the Secretary may con11 tinue to apply the provisions of the United States Housing

12 Act of 1937 and other statutes amended by this section,

13 as they existed immediately before such effective date, to

14 assistance obligated by the Secretary before such effective

15 date for the certificate or voucher program, where nec16 essary for simplification of program administration, avoid17 ance of hardship, or other good cause.

18 SECTION 8 CERTIFICATE AND VOUCHER FEES

19 SEC. 413. (a) Section 8(q)(1) of the United States

20 Housing Act of 1937 is amended to read as follows:

21 ‘‘(1)(A) The Secretary shall establish fees for

22 the costs of administering the tenant-based assist23 ance programs under this Act.

24 ‘‘(B)(i) For the initial year the Secretary estab25 lishes fees under this section, as amended by the

26 Housing Choice and Community Investment Act of
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1 1994, the fee for each month for which a dwelling

2 unit is covered by an assistance contract shall be

3 7.65 percent of the base amount in the case of an

4 agency that, on an annual basis, is administering a

5 program of more than 1,000 units, and 7 percent of

6 the base amount for each additional unit above

7 1,000. The base amount shall be the higher of (I)

8 the fair market rental for fiscal year 1993 for a 2-

9 bedroom existing rental dwelling unit in the market

10 area of the agency, and (II) such fair market rental

11 for fiscal year 1994, but not more than 103.5 per12 cent of the amount determined under clause (I); ex13 cept that the Secretary may require that the base

14 amount be not less than a minimum amount and not

15 more than a maximum amount.

16 ‘‘(ii) For subsequent fiscal years, the Secretary

17 shall publish in the Federal Register, for each geo18 graphic area, the amount of the fee that would apply

19 for agencies administering the program, based on

20 changes in wage data or other objectively measur21 able data that reflect the costs of administering the

22 program, as determined by the Secretary.

23 ‘‘(C) The Secretary may increase the fee if nec24 essary to reflect the higher costs of administering

25 small programs, the family self-sufficiency program
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1 under section 23, and programs operating over large

2 geographic areas.’’.

3 (b) Section (8)(q)(2)(A)(i) is amended to read as fol4 lows:

5 ‘‘(i) the costs of preliminary expenses, in

6 the amount of $500, for a public housing agen7 cy, but only in connection with its initial incre8 ment of assistance received in the first year it

9 administers a tenant-based assistance program

10 under this Act;’’

11 (c) The amendments made by this section shall take

12 effect on a date specified by the Secretary in regulations

13 implementing the amendments. Until that date, the fees

14 applicable in fiscal year 1994 shall continue in effect.

15 Subtitle C—Miscellaneous

16 SECTION 811 RENTAL ASSISTANCE FOR PERSONS WITH

17 DISABILITIES

18 SEC. 421. (a) RENTAL ASSISTANCE FOR EXISTING

19 BUILDINGS.—Section 811 of the Cranston-Gonzalez Na20 tional Affordable Housing Act is amended—

21 (1) in subsection (d)(2), by inserting after the

22 dash the following new sentence: ‘‘The Secretary

23 may enter into contracts with private, nonprofit or24 ganizations to provide project rental assistance for

25 supportive housing for persons with disabilities,
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1 whether or not that housing is developed with capital

2 advances under this section.’’;

3 (2) in subsection (e)(1), by inserting imme4 diately after ‘‘assisted’’ the following: ‘‘with capital

5 advances’’;

6 (3) by amending the first two sentences of sub7 section (e)(2) to read as follows: ‘‘The initial term

8 of a contract entered into under subsection (d)(2)

9 shall be 240 months for housing developed with a

10 capital advance, and shall be not more than 60

11 months for housing not developed with a capital ad12 vance. The Secretary shall, to the extent approved in

13 appropriations Acts, extend any expiring contracts

14 for a term of not less than 60 months.’’;

15 (4) in subsection (g)(1), by inserting after ‘‘de16 velop’’ the following ‘‘(if applicable)’’;

17 (5) in each of subsections (g)(3) and (5), by in18 serting immediately before ‘‘proposed’’ the following

19 ‘‘design or’’;

20 (6) in subsection (j)(3)—

21 (A) by striking ‘‘An’’ and inserting in lieu

22 thereof the following: ‘‘(A) where the housing is

23 to be assisted with capital advances under this

24 section, an’’; and
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1 (B) by adding the following new subpara2 graph at the end thereof:

3 ‘‘(B) Where the housing is to be assisted

4 only with project rental assistance, the appli5 cant shall have ownership or control of a suit6 able site at the time of application. The Sec7 retary may approve a change in site at any time

8 from the date the application is submitted to

9 the expiration date of the rental assistance con10 tract.’’;

11 (7) in subsection (j)(4), by striking ‘‘The’’ and

12 inserting in lieu thereof the following ‘‘Where the

13 housing is assisted with capital advances under this

14 section, the’’;

15 (8) in the second sentence of subsection (k)(1),

16 by striking ‘‘the development of’’;

17 (9) in subsection (k)(5), by inserting imme18 diately after ‘‘disabilities’’ the following: ‘‘, or that

19 receives rental assistance under this section to oper20 ate or project for supportive housing for persons

21 with disabilities’’; and

22 (10) in subsection (m)(3), by striking out ‘‘(1)’’

23 and inserting in lieu thereof ‘‘(2)’’.

24 (b) REPEAL OF TENANT-BASED ASSISTANCE.—Sec25 tion 811 of such Act is amended—
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1 (1) by amending subsection (b) to read as fol2 lows:

3 ‘‘(b) GENERAL AUTHORITY.—The Secretary is au4 thorized to provide assistance to private, nonprofit organi5 zations to expand the supply of supportive housing for per6 sons with disabilities. Such assistance shall be provided

7 as—

8 ‘‘(1) capital advances in accordance with sub9 section (d)(1), together with contracts for project

10 rental assistance in accordance with subsection

11 (d)(2), or

12 ‘‘(2) contracts for project rental assistance in

13 accordance with subsection (d)(2).

14 Such assistance may be used to finance the acquisition,

15 acquisition and moderate rehabilitation, construction, re16 constructing, or moderate of substantial rehabilitation of

17 housing, including the acquisition from the Resolution

18 Trust Corporation, to be used as supportive housing for

19 persons with disabilities and may include real property ac20 quisition, site improvement, conversion, demolition, reloca21 tion, and other expenses that the Secretary determines are

22 necessary to expand the supply of supportive housing for

23 persons with disabilities.’’;

24 (2) in each of subsections (d)(1) and (3), (e)

25 (1), and (g), and in the first and second sentences
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1 of subsection (f), by striking ‘‘subsection (b)(2)’’and

2 inserting the following: ‘‘this section’’ and

3 (3) by striking subsection (d)(4).

4 (c) TECHNICAL CHANGES.—(1) Section 811(k)(6)(A)

5 of such Act is amended to read as follows:

6 ‘‘(A) that has received tax-exempt status

7 under section 501(c) (3) or (4) of the Internal

8 Revenue Code of 1986;’’.

9 (2) Section 8(i) of the United States Housing Act of

10 1937 is hereby repealed.

11 FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY

12 AND FOR PERSONS WITH DISABILITIES

13 SEC. 422. Section 601 of the Housing and Commu14 nity Development Act of 1992 (Public Law 102–550; 106

15 Stat. 3802) is amended by striking subsection (a) and in16 serting the following new subsection:

17 ‘‘(a) AGGREGATE FUNDING.—There are authorized

18 to be appropriated for the purpose of providing assistance

19 in accordance with section 202 of the Housing Act of 1959

20 and section 811 of the Cranston-Gonzalez National Af21 fordable Housing Act $537,000,000 for fiscal year 1995

22 and $387,000,000 for fiscal year 1996. Of the foregoing

23 amounts, for fiscal year 1995, $387,000,000 shall be to

24 carry out such section 811, and $150,000,000 shall be to

25 carry out such section 202. The total amount for fiscal

26 year 1996 shall be to carry out such section 811.’’.
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1 YOUTHBUILD

2 SEC. 423. (a) Section 454(b) of subtitle D of Title

3 IV of the Cranston-Gonzalez National Affordable Housing

4 Act is amended—

5 (1) in paragraph (2), by striking ‘‘Acquisition’’

6 and all that follows through ‘‘facilities’’ and insert7 ing in lieu thereof the following: ‘‘Acquisition, reha8 bilitation, or acquisition and rehabilitation of vacant

9 housing and related facilities, or construction of new

10 housing and related facilities,’’;

11 (2) by striking paragraph (6); and

12 (3) by designating paragraphs (7) and (8) as

13 paragraphs (6) and (7), respectively.

14 (b) Section 454(g) of such Act is hereby repealed.

15 (c) Section 455(a) of such Act is amended—

16 (1) in the first sentence, by inserting after ‘‘re17 ceiving assistance under this subtitle’’ the following:

18 ‘‘for costs such as construction, rehabilitation, and

19 acquisition’’; and

20 (2) in paragraph (1)(A), by deleting ‘‘less than

21 60’’ and inserting in lieu thereof ‘‘that do not exceed

22 50’’.

23 (d) Section 458(d) of such Act is amended by striking

24 ‘‘(b) and (c)’’ and inserting in lieu thereof ‘‘(a), (b), and

25 (c)’’.
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1 HOPE AUTHORIZATION OF APPROPRIATIONS

2 SEC. 424. Sections 402 (a) and (b) of the Cranston3 Gonzalez National Affordable Housing Act (42 U.S.C.

4 12870) are amended to read as follows:

5 ‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au6 thorized to be appropriated for activities authorized under

7 title III of the United States Housing Act of 1937, and

8 subtitles B and C of title IV of the Cranston-Gonzalez Na9 tional Affordable Housing Act, including amounts for

10 technical assistance, $100,000,000 for fiscal year 1995

11 and $100,000,000 for fiscal year 1996.

12 ‘‘(b) YOUTHBUILD PROGRAM.—There are authorized

13 to be appropriated for activities under subtitle D of title

14 IV of the Cranston-Gonzalez National Affordable Housing

15 Act $50,000,000 for fiscal year 1995 and $50,000,000 for

16 fiscal year 1996. Any amounts appropriated pursuant to

17 this subsection shall remain available until expended.’’.

18 AUTHORIZATION OF APPROPRIATIONS FOR HOUSING

19 OPPORTUNITIES FOR PERSONS WITH AIDS

20 SEC. 425. Section 863 of the Cranston-Gonzalez Na21 tional Affordable Housing Act (42 U.S.C. 12912), is

22 amended to read as follows:

23 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

24 ‘‘There are authorized to be appropriated to carry out

25 this subtitle $156,000,000 for fiscal year 1995 and

26 $156,000,000 for fiscal year 1996.’’.
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1 TITLE V—PRESERVATION AND PRODUCTION

2 SEC. 501. MISCELLANEOUS AMENDMENTS TO LIHPRHA.

3 (a) ESTABLISH A REALISTIC FEDERAL COST

4 LIMIT.—(1) Section 215(a) of the Low-Income Housing

5 Preservation and Resident Homeownership Act of 1990

6 is amended—

7 (A) in paragraph (1), by striking ‘‘120’’ and in8 serting ‘‘100’’;

9 (B) by striking paragraph (2); and

10 (C) by redesignating paragraph (3) as para11 graph (2) and amending such paragraph by striking

12 ‘‘and the amount determined under paragraph (2)’’.

13 (2) Section 215(b)(2)(C) is amended to read as fol14 lows:

15 ‘‘(C) file a second notice of intent under section

16 216(d) to terminate the low-income affordability re17 strictions through payment of the mortgage or vol18 untary termination of the insurance contract, subject

19 to compliance with the provisions of section 223.’’.

20 (3)(A) Section 221 is hereby repealed.

21 (B)(i) Section 213(b)(2), section 214(b)(2), the sec22 ond sentence of section 217(a)(1), sections 224(a)(1) (B)

23 and (C), and section 224(a)(2) of such Act are each

24 amended by striking ‘‘or 221’’.
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1 (ii) The third sentence of section 214(b) of such Act

2 is amended by striking ‘‘219, 220, or 221’’ and inserting

3 ‘‘219 or 220’’.

4 (iii) The third sentence of section 216(d)(1) of such

5 Act is amended by striking ‘‘sections 221 and 223’’ and

6 inserting ‘‘section 223’’.

7 (iv) The second sentence of section 217(a)(1) of such

8 Act is amended by striking ‘‘or upon making of any bona

9 fide offer under section 221’’.

10 (v) The last sentence of section 224(a) of such Act

11 is amended by striking ‘‘sections 220 and 221’’ and insert12 ing ‘‘section 220’’.

13 (vi) Section 229(8)(B) of such Act is amended by

14 striking ‘‘and 221’’.

15 (b) CAP APPRAISALS UNDER LIHPRHA AT FAIR

16 MARKET VALUE FOR RESIDENTIAL RENTAL USE.—Sec17 tion 213(b)(2) of such Act is amended by inserting before

18 the period the following: ‘‘as residential rental housing’’.

19 (c) REPEAL OF HOMEOWNERSHIP ASSISTANCE.—(1)

20 Section 220(d)(1) of such Act is amended to read as fol21 lows:

22 ‘‘(1) APPROVAL.—The Secretary may not ap23 prove a plan for any qualified purchaser unless the

24 Secretary finds that the criteria for approval under

25 section 222 have been satisfied.’’.
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1 (2) The matter preceding subparagraph (A) in sec2 tion 220(d)(2) of such Act is amended by striking ‘‘(in3 cluding all priority purchasers other than resident councils

4 acquiring under the homeownership program authorized

5 by section 226)’’.

6 (3) Section 220(d)(2)(G) of such Act is amended to

7 read as follows:

8 ‘‘(G) in the case of a resident council orga9 nized to acquire the housing as a limited equity

10 cooperative, cover the costs of training for the

11 resident council and of ownership counseling

12 and training.’’.

13 (4) Section 222(a) of such Act is amended by striking

14 out ‘‘(other than a resident council)’’.

15 (5) Section 222(a)(2)(A) of such Act is amended by

16 inserting ‘‘rental or limited equity cooperative’’ imme17 diately after ‘‘the housing will be retained as’’.

18 (6) Section 226 of such Act is hereby repealed.

19 (7) Section 231(a) of such Act is amended by—

20 (A) striking out ‘‘(A)’’ and all that follows

21 through ‘‘(B)’’; and

22 (B) inserting after ‘‘any nonprofit organiza23 tion’’ the following: ‘‘(including a resident council)’’.
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1 (d) NATIONAL HOUSING ACT CONFORMING AMEND2 MENT.—Section 241(f)(3)(A) of the National Housing Act

3 is amended by striking out ‘‘or 221’’.

4 (e) TRANSITION PROVISION.—The amendments

5 made by this section shall only apply to eligible owners

6 that file a plan of action under the Low-Income Housing

7 Preservation and Resident Homeownership Act of 1990

8 on or after the date of enactment of this Act.

9 LOW-INCOME HOUSING PRESERVATION AUTHORIZATION

10 OF APPROPRIATIONS

11 SEC. 502. Section 234(a) of the Housing and Com12 munity Development Act of 1987 (12 U.S.C. 4124) is

13 amended to read as follows:

14 ‘‘(a) IN GENERAL.—There are authorized to be ap15 propriated for assistance and incentives authorized under

16 this subtitle $226,000,000 for fiscal year 1996.’’.

17 FHA FUND SUPPORT OF SECTION 8 ASSISTANCE FOR

18 PROPERTY DISPOSITION

19 SEC. 503. (a) Section 203 of the Housing and Com20 munity Development Amendments of 1978 is amended by

21 adding the following new subsection at the end thereof:

22 ‘‘(m) SPENDING AUTHORITY FOR SECTION 8 ASSIST23 ANCE.—In addition to amounts otherwise made available

24 for carrying out subsection (e) and (f) of this section, the

25 Secretary shall use not to exceed a total of $3,945,000,000

26 for fiscal years 1995 through 1999 for assistance under
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1 section 8 of the United States Housing Act of 1937, as

2 authorized by subsections (e) and (f). These funds are

3 hereby made available from amounts in the General Insur4 ance Fund or the Special Risk Insurance Fund, as appro5 priate.’’.

6 (b) Section 207(l) of the National Housing Act is

7 amended by adding in the first sentence after ‘‘or sell for

8 cash or credit or lease in his discretion,’’ the following:

9 ‘‘with or without provision for rental assistance that may

10 be either project-based on tenant-based,’’.

11 HOME PROGRAM LOAN GUARANTEES

12 SEC. 504. HOME PROGRAM LOAN GUARANTEES.—

13 Title II of the Cranston-Gonzalez National Affordable

14 Housing Act (the Home Investment Partnerships Act) is

15 amended by adding the following new section at the end

16 of subtitle A:

17 ‘‘SEC. 227. LOAN GUARANTEES.—(a) The Secretary

18 is authorized, upon such terms and conditions as the Sec19 retary may prescribe, to guarantee and make commit20 ments to guarantee, only to such extent or in such

21 amounts as provided in appropriations Acts, the notes or

22 other obligations issued by eligible participating jurisdic23 tions or by public agencies designated by and acting on

24 behalf of eligible participating jurisdictions for purposes

25 of financing (including credit enhancements and debt serv26 ice reserves) the acquisition, new construction, reconstruc-
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1 tion, or moderate or substantial rehabilitation of afford2 able housing, including real property acquisition, site im3 provement, conversion, demolition, and other expenses, in4 cluding financing costs, relocation expenses of any dis5 placed persons, families, businesses, or organizations. All

6 housing funded under this section shall meet the require7 ments of this title.

8 ‘‘(b) Notes or other obligations guaranteed under this

9 section shall be in such form and denominations, have

10 such maturities, and be subject to such conditions as may

11 be prescribed by regulations issued by the Secretary. The

12 Secretary may not deny a guarantee under this section

13 on the basis of the proposed repayment period for the note

14 or other obligation, unless the period is more than 20

15 years or the Secretary determines that the period other16 wise causes the guarantee to constitute an unacceptable

17 financial risk. To the extent provided in appropriation

18 Acts, the Secretary may enter into commitments to guar19 antee notes or other obligations under this section with

20 an aggregate principal amount of $1,000,000,000 for fis21 cal year 1995 and $1,000,000,000 for fiscal year 1996.

22 ‘‘(c) No guarantee or commitment to guarantee shall

23 be made with respect to any note or other obligation if

24 the total outstanding notes or obligations guaranteed

25 under this section on behalf of a participating jurisdiction
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1 (excluding any amount defeased under a contract entered

2 into under subsection (e)(1)) would thereby exceed an

3 amount equal to 5 times the amount of the participating

4 jurisdiction’s latest HOME allocation.

5 ‘‘(d) Notwithstanding any other provision of this title,

6 funds allocated to the participating jurisdiction under this

7 title (including program income derived therefrom) are au8 thorized for use by the participating jurisdiction or by the

9 Secretary, in the payment of principal and interest due

10 on the notes or other obligations guaranteed pursuant to

11 this section and the payment of such servicing, underwrit12 ing, or other issuance or collection charges as may be spec13 ified in regulations issued by the Secretary.

14 ‘‘(e) To assure the full repayment of notes or other

15 obligations guaranteed hereunder as well as the issuance

16 or collection charges specified by the Secretary under

17 paragraph (d), and as a prior condition for receiving such

18 guarantees, the Secretary shall require the participating

19 jurisdiction (and its designated public agency issuer, if

20 any) to—

21 ‘‘(1) enter into a contract, in a form acceptable

22 to the Secretary, for repayment of such notes or

23 other obligations and the other specified charges;
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1 ‘‘(2) pledge as security for such repayment any

2 allocation for which the participating jurisdiction

3 may become eligible under this title; and

4 ‘‘(3) furnish, at the discretion of the Secretary,

5 such other security as may be deemed appropriate

6 by the Secretary in making such guarantees, which

7 may include increments in local tax receipts gen8 erated by the housing assisted under this section or

9 disposition proceeds from the sale of land or hous10 ing.

11 ‘‘(f) The Secretary is authorized, notwithstanding

12 any other provision of this title or any other Federal, State

13 or local law, to apply allocations pledged pursuant to para14 graph (e) of this section to any repayments due the United

15 States as a result of such guarantees.

16 ‘‘(g) The full faith and credit of the United States

17 is pledged to the payment of all guarantees made under

18 this section. Any such guarantee made by the Secretary

19 shall be conclusive evidence of the eligibility of the notes

20 or other obligations for such guarantee with respect to

21 principal and interest, and the validity of any such guar22 antee so made shall be incontestable in the hands of a

23 holder of the guaranteed obligations.

24 ‘‘(h) Obligations guaranteed under this section shall

25 be subject to Federal taxation as provided subsection (j).
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1 ‘‘(i) With respect to any obligation guaranteed pursu2 ant to this section, the interest paid on such obligation

3 shall be included in gross income for the purpose of chap4 ter 1 of the Internal Revenue Code of 1954.

5 ‘‘(j) The Secretary shall monitor the use of guaran6 tees under this section by eligible participating jurisdic7 tions. If the Secretary finds that 50 percent of the aggre8 gate guarantee authority has been committed, the Sec9 retary may—

10 ‘‘(1) impose limitations on the amount of guar11 antees any one participating jurisdiction may receive

12 in any fiscal year of $35,000,000; or

13 ‘‘(2) request the enactment of legislation in14 creasing the aggregate limitation on guarantees

15 under this section.

16 ‘‘(k) No fee or other charge may be imposed by the

17 Secretary or any other Federal agency on or with respect

18 to a guarantee made by the Secretary under this section.

19 ‘‘(l)(1) The Secretary is authorized, upon such terms

20 and conditions as the Secretary deems appropriate, to

21 guarantee the timely payment of the principal of and in22 terest on such trust certificates or other obligations as

23 shall—
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1 ‘‘(A) be offered by the Secretary or by any

2 other offeror approved for purposes of this sub3 section by the Secretary, and

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

5 composed of notes or other obligations guaranteed or

6 eligible for guarantee by the Secretary under this

7 section.

8 ‘‘(2) To the same extent as provided in paragraph

9 (g), the full faith and credit of the United States is

10 pledged to the payment of all amounts which may be re11 quired to be paid under any guarantee by the Secretary

12 under this subsection.

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

14 a guarantee issued under this section, the Secretary shall

15 be subrogated fully to the rights satisfied by such pay16 ment.

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

18 preclude or limit the exercise by the Secretary of—

19 ‘‘(A) the power to contract with respect to pub20 lic offerings and other sales of notes, trust certifi21 cates and other obligations guaranteed under this

22 section upon such terms and conditions as the Sec23 retary deems appropriate,

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

25 appropriate by the Secretary any such contract, and
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1 ‘‘(C) the Secretary’s ownership rights, as appli2 cable, in notes, certificates or other obligations guar3 anteed under this section, or constituting the trust

4 or pool against which trust certificates or other obli5 gations guaranteed under this section are offered.

6 ‘‘(m) There are authorized to be appropriated such

7 sums as may be necessary for each of fiscal years 1995

8 and 1996 for the cost to the Government, as defined in

9 section 502 of the Congressional Budget Act, of guaran10 teed loans under this section.’’.

11 HOME AUTHORIZATION OF APPROPRIATIONS

12 SEC. 505. Section 205 of the Cranston-Gonzalez Na13 tional Affordable Housing Act (42 U.S.C. 1274) is amend14 ed to read as follows:

15 ‘‘SEC. 205. AUTHORIZATION.—There are authorized

16 to be appropriated to carry out this title $1,000,000,000

17 for fiscal year 1995, and $1,000,000,000 for fiscal year

18 1996.’’.

19 EXTENSION OF THE SECTION 221(g)(4) AUCTION

20 PROVISIONS

21 SEC. 506. The first sentence of section

22 221(g)(4)(C)(viii) of the National Housing Act is amended

23 by striking ‘‘September 30, 1995’’ and inserting ‘‘Decem24 ber 31, 2005’’.
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1 EXTENSION OF THE MULTIFAMILY MORTGAGE CREDIT

2 DEMONSTRATIONS

3 SEC. 507. Section 542 of the Housing and Commu4 nity Development Act of 1992 is amended—

5 (1) in subsection (b)(5), by striking ‘‘1993 and

6 1994’’ and inserting ‘‘1995 and 1996’’; and

7 (2) in subsection (c)(4), by striking ‘‘1993,

8 1994, and 1995’’ and inserting ‘‘1995, 1996, and

9 1997’’.

10 TITLE VI—EXPANSION OF FAIR HOUSING MET11 ROPOLITAN AREAWIDE STRATEGY DEM12 ONSTRATION

13 SEC. 601. (a) The Secretary of Housing and Urban

14 Development shall carry out, through consortia of units

15 of general local government, a demonstration that makes

16 assisted housing available in three metropolitan areas on

17 a metropolitan, areawide basis. The demonstration shall

18 be designed to determine how best to—

19 (1) affirmatively further fair housing and ad20 dress the problem of racial segregation in metropoli21 tan areas;

22 (2) achieve the goal of overcoming racial spatial

23 separation and segregation, including testing the ef24 fect of filling vacancies in assisted housing by use of

25 a consolidated waiting list;
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1 (3) enlist cooperation by units of general local

2 government, public housing agencies, and private

3 owners of assisted housing in achieving such goals;

4 (4) make public housing a path to social and

5 economic mobility;

6 (5) eliminate housing discrimination; and

7 (6) accomplish related objectives, as determined

8 by the Secretary.

9 (b) The Secretary shall select the consortia on a com10 petitive basis and make a grant to each consortia selected

11 to carry out the demonstration. An application shall dem12 onstrate that a sufficient number of units of general local

13 government, public housing agencies, and private owners

14 of assisted housing are committed to participate in the

15 demonstration to make the demonstration feasible, includ16 ing commitments to comply with alternative program re17 quirements specified by the Secretary. The demonstration

18 shall have a three-year term with respect to each site.

19 (c) The Secretary may waive, or specify alternative

20 requirements for, any provision of any statute or regula21 tion that the Secretary administers upon finding that the

22 waiver or alternative requirement (1) is necessary to facili23 tate the demonstration, and (2) would not be inconsistent

24 with the overall purpose of the statute or regulation af25 fected. In no event may the Secretary waive, or specify
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1 alternative requirements for, statutory requirements relat2 ed to nondiscrimination, fair housing, labor standards, or

3 the environment, except that the Secretary may waive af4 firmative marketing requirements for participants in the

5 demonstration.

6 (d) There are authorized to be appropriated for the

7 costs related to regional planning, housing counseling, de8 velopment of a model consolidated waiting list, and admin9 istration under the demonstration established by this sec10 tion, $15,000,000 for each of fiscal years 1995, 1996, and

11 1997. Of the amounts appropriated for annual contribu12 tions for assisted housing under the United States Hous13 ing Act of 1937, the Secretary shall earmark $9,000,000

14 for each of fiscal years 1995, 1996, and 1997 for mod15 ernization of public housing under section 14 of that Act

16 by public housing agencies participating in the demonstra17 tion that are located in the central city of the metropolitan

18 area. Of the amounts appropriated for annual contribu19 tions for assisted housing under the United States Hous20 ing Act of 1937 and earmarked for tenant-based assist21 ance under section 8 of that Act, the Secretary may set

22 aside up to $100,000,000 for use by public housing agen23 cies in support of the demonstration.
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1 EXPAND USE OF AMOUNTS IN SECTION 213(D)(4) HEAD2 QUARTERS RESERVE IN CONNECTION WITH SETTLE3 MENT OF CIVIL RIGHTS LITIGATION

4 SEC. 602. (a) Section 213(d)(4)(A) of the Housing

5 and Community Development Act of 1974 is amended

6 by—

7 (1) striking ‘‘and’’ at the end of clause (iii);

8 (2) redesignating clause (iv) as clause (v); and

9 (3) inserting the following new clause after

10 clause (iii):

11 ‘‘(iv) fair housing activities and cash

12 payments, in connection with the settle13 ment of civil rights litigation (excluding

14 litigation brought by an employee or

15 former employee of the Secretary); and’’.

16 (b) Section 5 of the United States Housing Act of

17 1937 is amended by adding at the end the following new

18 subsection:

19 ‘‘(m) The Secretary may use up to five percent of

20 the aggregate amount appropriated under this Act for

21 public housing development and section 8 assistance for

22 the activities eligible for funding from amounts retained

23 by the Secretary in accordance with section 213(d) of the

24 Housing and Community Development Act of 1974.’’.
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1 MAKE CDBG EXPENDITURES ON FAIR HOUSING

2 ACTIVITIES ELIGIBLE ACTIVITIES IN THEIR OWN RIGHT

3 SEC. 603. (a) Section 105(a) of the Housing and

4 Community Development Act of 1974 is amended—

5 (1) in paragraph (24), by striking ‘‘and’’ at the

6 end;

7 (2) in paragraph (25), by striking the period at

8 the end and inserting ‘‘; and’’; and

9 (3) by adding at the end the following new

10 paragraph:

11 ‘‘(26) activities that affirmatively further fair

12 housing.’’.

13 (b) Section 105(c) of such Act is amended by adding

14 the following new paragraph at the end:

15 ‘‘(5) Any activity carried out under subsection

16 (a)(26) shall be presumed to benefit persons of low

17 and moderate income.’’.

18 FAIR HOUSING INITIATIVES PROGRAM AUTHORIZATION OF

19 APPROPRIATIONS

20 SEC. 604. Section 561(g) of the Housing and Com21 munity Development Act of 1987 (42 U.S.C. 3616 note)

22 is amended to read as follows:

23 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated to remain available until

25 expended, to carry out the provisions of this section
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1 $26,000,000 for fiscal year 1995 and $26,000,000 for fis2 cal year 1996, of which—

3 ‘‘(1) not less than $9,000,000 for fiscal year

4 1995 and not less than $9,000,000 for fiscal year

5 1996 shall be for private enforcement initiatives au6 thorized under subsection (b), divided equally be7 tween activities specified under subsection (b)(1)

8 and those specified under subsection (b)(2);

9 ‘‘(2) not less than $7,000,000 for fiscal year

10 1995 and not less than $7,000,000 for fiscal year

11 1996 shall be for fair housing enforcement organiza12 tions authorized under subsection (c);

13 ‘‘(3) not less than $7,000,000 for fiscal year

14 1995 and not less than $7,000,000 for fiscal year

15 1996 shall be for education and outreach programs

16 authorized under subsection (d); and

17 ‘‘(4) not less than $3,000,000 for fiscal year

18 1995 and not less than $3,000,000 for fiscal year

19 1996 shall be for administrative enforcement.’’.

20 CIVIL MONEY PENALTIES FOR VIOLATIONS OF THE HOME

21 MORTGAGE DISCLOSURE ACT BY NONSUPERVISED

22 MORTGAGES

23 SEC. 605. Section 305 of the Home Mortgage Disclo24 sure Act of 1975 is amended as follows:

25 (a) Subsection (b)(4) is repealed.
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1 (b) Subsection (c) is redesignated as section

2 305(d).

3 (c) A new subsection (c) is added, to read:

4 ‘‘(c) POWERS OF THE SECRETARY OF HOUSING AND

5 URBAN DEVELOPMENT.—

6 ‘‘(1) IN GENERAL.—The Secretary of Housing

7 and Urban Development (‘the Secretary’) shall en8 force compliance with the requirements imposed

9 under this title with regard to lending institutions

10 not named in subsection (b).

11 ‘‘(2) CIVIL MONEY PENALTIES.—Pursuant to

12 paragraph (1) of this subsection, the Secretary may

13 impose a civil money penalty for failure to comply

14 with the requirements of this title.

15 ‘‘(3) AMOUNT OF PENALTY.—The amount of

16 the penalty, as determined by the Secretary, may

17 not exceed $5,000 for each violation, except that the

18 maximum penalty for all violations by any particular

19 lending institution during any 1-year period shall

20 not exceed $1,000,000.

21 ‘‘(4) VIOLATIONS FOR WHICH A PENALTY MAY

22 BE IMPOSED.—A civil money penalty may be im23 posed for the late submission of a report, failure to

24 submit a report, submission of an illegible report,

25 submission of an erroneous report, and failure to
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1 submit a corrected report for a report that was illeg2 ible or erroneous.

3 ‘‘(5) AGENCY PROCEDURES.—

4 ‘‘(A) ESTABLISHMENT.—The Secretary

5 shall establish standards and procedures gov6 erning the imposition of civil money penalties

7 under this section. These standards and proce8 dures shall provide for the Secretary to make

9 the determination to impose the penalty or to

10 use an administrative entity (such as the Mort11 gagee Review Board, established pursuant to

12 section 202(c) of the National Housing Act) to

13 make the determination; shall provide for the

14 imposition of a penalty only after the lending

15 institution has been given an opportunity for a

16 hearing on the record; and may provide for re17 view by the Secretary of a determination or

18 order, or interlocutory ruling, arising from a

19 hearing.

20 ‘‘(B) FINAL ORDERS.—If no hearing is re21 quested within 15 days of receipt of the notice

22 of opportunity for hearing, the imposition of

23 the penalty shall constitute a final and

24 unappealable determination. If the Secretary re25 views the determination or order, the Secretary
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1 may affirm, modify, or reverse that determina2 tion or order. If the Secretary does not review

3 the determination or order within 90 days of

4 the issuance of the determination or order, the

5 determination or order shall be final.

6 ‘‘(C) FACTORS IN DETERMINING AMOUNT

7 OF PENALTY.—In determining the amount of a

8 penalty under this subsection, consideration

9 shall be given to such factors as the gravity of

10 the offense, any history of prior offenses, ability

11 to pay the penalty, deterrence of future viola12 tions, and such other factors as the Secretary

13 may determine to be appropriate.

14 ‘‘(D) REVIEWABILITY OF IMPOSITION OF

15 PENALTY.—The Secretary’s determination or

16 order imposing a penalty under this subsection

17 shall not be subject to review, except as pro18 vided in this subsection.

19 ‘‘(6) JUDICIAL REVIEW OF AGENCY DETER20 MINATION.—

21 ‘‘(A) IN GENERAL.—After exhausting all

22 administrative remedies established by the Sec23 retary under this subsection, a lending institu24 tion against whom the Secretary has imposed a

25 civil money penalty under this subsection may
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1 obtain a review of the penalty as may be ad2 dressed in the notice of determination to impose

3 a penalty in the appropriate court of appeals of

4 the United States, by filing in such court, with5 in 20 days after the entry of such order or de6 termination, a written petition praying that the

7 Secretary’s determination or order be modified

8 or set aside in whole or in part.

9 ‘‘(B) OBJECTIONS NOT RAISED IN HEAR10 ING.—The court shall not consider any objec11 tion that was not raised in the hearing con12 ducted pursuant to this subsection unless a

13 demonstration is made of extraordinary cir14 cumstances causing the failure to raise the ob15 jection. If any party demonstrates to the satis16 faction of the court that additional evidence not

17 presented at the hearing is material and that

18 there were reasonable grounds for the failure to

19 present such evidence at the hearing, the court

20 shall remand the matter to the Secretary for

21 consideration of the additional evidence.

22 ‘‘(C) SCOPE OF REVIEW.—The decisions,

23 findings, and determinations of the Secretary

24 shall be reviewed pursuant to section 706 of

25 title 5, United States Code.
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1 ‘‘(D) ORDER TO PAY PENALTY.—Notwith2 standing any other provision of law, in any such

3 review, the court shall have the power to order

4 payment of the penalty imposed by the Sec5 retary.

6 ‘‘(7) ACTION TO COLLECT PENALTY.—If a lend7 ing institution fails to comply with the Secretary’s

8 determination or order imposing a civil money pen9 alty under this subsection, after the determination

10 or order is no longer subject to review as provided

11 by this subsection, the Secretary may bring an ac12 tion in an appropriate United States district court to

13 obtain a monetary judgment against the lending in14 stitution. In such an action, the validity and appro15 priateness of the Secretary’s determination or order

16 imposing the penalty shall not be subject to review.

17 The monetary judgment may, in the court’s discre18 tion, include the attorneys fees and other expenses

19 incurred by the United States in connection with the

20 action.

21 ‘‘(8) SETTLEMENT BY SECRETARY.—The Sec22 retary may compromise, modify, or remit any civil

23 money penalty which may be imposed under this

24 subsection.
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1 ‘‘(9) REGULATIONS.—The Secretary shall issue

2 such regulations as the Secretary deems appropriate

3 to implement this subsection.

4 ‘‘(10) DEPOSIT OF PENALTIES IN UNITED

5 STATES TREASURY.—All civil money penalties col6 lected under this subsection shall be deposited in the

7 Miscellaneous Receipts Account of the Treasury.’’.

8 TITLE VII—COMMUNITY DEVELOPMENT AND

9 EMPOWERMENT

10 Subtitle A—Neighborhood Leveraged

11 INVESTMENTS FOR TOMORROW (LIFT) PROGRAM

12 AUTHORIZATION

13 SEC. 701. (a) PROGRAM AUTHORIZATION.—The Sec14 retary is authorized to make grants in accordance with

15 the provisions of this subtitle to States, units of general

16 local government, Indian tribes, and community-based

17 non-profit organizations for the purpose of stimulating

18 public and private investment in the community-building

19 enterprises that provide essential services to disadvan20 taged communities, spur new investment and development

21 in nearby areas, and create jobs for neighborhood resi22 dents.

23 (b) FUNDING AUTHORIZATION.—

24 (1) IN GENERAL.—There are authorized to be

25 appropriated for purposes of this subtitle

26 $200,000,000 for fiscal year 1995 and such sums as
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1 may be necessary for fiscal year 1996. Any amount

2 appropriated shall remain available until expended.

3 (2) ALLOCATION OF FUNDS.—(A) Of the

4 amounts appropriated under paragraph (1) for any

5 fiscal year, the Secretary shall set aside such

6 amounts as the Secretary deems appropriate to

7 carry out the training, information, and technical as8 sistance activities referred to in section 707.

9 (B) Of the amounts remaining each fiscal year

10 after amounts are set aside under subparagraph

11 (A)—

12 (i) 75 percent shall be available for neigh13 borhood revitalization grants under section 704;

14 and

15 (ii) 25 percent shall be available for

16 project-based grants under section 705.

17 ELIGIBLE NEIGHBORHOODS

18 SEC. 702. (a) INDICIA OF NEED.—Grants under this

19 subtitle may only be used in neighborhoods that meet such

20 criteria of need as the Secretary shall prescribe. These cri21 teria may include—

22 (1) concentrations of persons of low and mod23 erate income in census tracts in the neighborhood;

24 (2) poverty rates in the neighborhood;

25 (3) rates of unemployment in the neighborhood;

26 and
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1 (4) such other indicia of economic need as the

2 Secretary deems appropriate.

3 (b) LIMITATION.—Eligible neighborhoods under this

4 section shall be located outside central business districts,

5 as determined by the Secretary, except that the Secretary

6 may waive this requirement, if the Secretary determines

7 that a successful neighborhood revitalization strategy is

8 contingent upon the simultaneous revitalization of such a

9 district.

10 ELIGIBLE ACTIVITIES

11 SEC. 703. Grants under this subtitle may be used to

12 carry out activities to further the comprehensive physical

13 and economic revitalization of eligible neighborhoods, in14 cluding (but not limited to) activities such as the construc15 tion, rehabilitation, or financing of—

16 (1) retail and service facilities;

17 (2) mixed-use projects;

18 (3) projects that link economic development and

19 housing;

20 (4) community centers; and

21 (5) community-based business expansions.

22 Grantees may provide assistance under this subtitle

23 through grants, loans, credit enhancements, or other ap24 propriate mechanisms.
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1 GRANTS FOR NEIGHBORHOOD REVITALIZATION PROJECTS

2 SEC. 704. (a) IN GENERAL.—Of amounts allocated

3 under section 701(b)(2)(B)(i), the Secretary shall make

4 grants for the purpose of assisting the development and

5 implementation of neighborhood revitalization projects in

6 eligible neighborhoods, which may include projects in

7 which grantees participate as developers or joint-venture

8 partners with for-profit entities.

9 (b) SELECTION PROCESS.—

10 (1) IN GENERAL.—The Secretary shall select

11 grantees under this section on a non-competitive

12 basis, through negotiation with the grantee.

13 (2) SELECTION CRITERIA.—In selecting

14 projects, the Secretary shall consider the extent to

15 which the assisted activities will—

16 (A) provide essential goods and services to

17 residents of the neighborhood;

18 (B) generate jobs for residents of the

19 neighborhood, especially for residents who are

20 chronically unemployed or receive welfare;

21 (C) be an essential element of, and catalyst

22 for, the comprehensive physical and economic

23 revitalization of the neighborhood;

24 (D) build the economic base of the neigh25 borhood through such measures as business ex-
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1 pansion, and job opportunities and meaningful

2 reinvestment of a share of the profits of a suc3 cessful project in the neighborhood, including

4 economically empowering neighborhood resi5 dents to carry out additional neighborhood de6 velopment projects;

7 (E) leverage public and private investment

8 (other than assistance under this subtitle) in

9 the physical and economic revitalization of the

10 neighborhood and in the activities proposed to

11 be assisted; and

12 (F) meet such other factors as the Sec13 retary deems appropriate to carry out the objec14 tives of this section.

15 (c) AUTHORITY OF SECRETARY.—The Secretary

16 shall prescribe such requirements for the making of grants

17 under this section as the Secretary deems appropriate.

18 COMPETITIVE GRANTS FOR PROJECT-BASED GRANTS

19 SEC. 705. (a) IN GENERAL.—Of amounts allocated

20 under section 701(b)(2)(B)(ii), the Secretary shall make

21 grants for the purpose of facilitating private and public

22 sector investment in economic revitalization projects in eli23 gible neighborhoods.

24 (b) APPLICATIONS.—

25 (1) FORM AND PROCEDURE.—An application

26 for a grant under this section shall be submitted in
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1 such form and in accordance with such procedures

2 as the Secretary shall prescribe.

3 (2) MINIMUM REQUIREMENTS.—An application

4 shall at a minimum—

5 (A) request a grant under this section,

6 specifying the amount of the grant requested

7 and its proposed uses;

8 (B) demonstrate that the neighborhood in

9 which the proposed activities are to be carried

10 out is an eligible neighborhood under section

11 702;

12 (C) describe the applicant’s comprehensive

13 strategy for the physical and economic revital14 ization of the neighborhood;

15 (D) demonstrate that the proposed activi16 ties are an integral part of this strategy;

17 (E) demonstrate that the proposed project

18 is consistent with, and an integral part of, the

19 relevant housing and community development

20 plans of the State or unit of general local gov21 ernment; and

22 (F) contain a certification that the appli23 cant will comply with the requirements of the

24 Fair Housing Act, title VI of the Civil Rights

25 Act of 1964, section 504 of the Rehabilitation
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1 Act of 1973, and the Age Discrimination Act of

2 1975, and will affirmatively further fair hous3 ing.

4 (c) SELECTION CRITERIA.—The Secretary shall es5 tablish selection criteria for awarding grants under this

6 section. These criteria shall consider the extent to which

7 the assisted activities—

8 (1) generate jobs for residents of the neighbor9 hood, especially for residents who are chronically un10 employed or receive welfare;

11 (2) build the economic base of the neighborhood

12 through such measures as business expansion, and

13 job opportunities and meaningful reinvestment of a

14 share of the profits of a successful project in the

15 neighborhood, including economically empowering

16 neighborhood residents to carry out additional neigh17 borhood development projects;

18 (3) are sponsored by for-profit or non-profit

19 development partnerships with a proven record of

20 success;

21 (4) build upon and expand the capacity of local

22 institutions to carry out neighborhood revitalization;

23 (5) are an integral part of the housing and

24 community development plans of the appropriate

25 governmental jurisdiction; and
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1 (6) meet such other factors as the Secretary

2 deems appropriate to carry out the objectives of this

3 section.

4 (d) GRANT LIMITATIONS.—

5 (1) NEED FOR GRANT.—A grant may be made

6 under this section only if the Secretary determines

7 that the grantee has made efforts to complete the

8 project without a grant under this section, but can9 not do so consistent with the timely execution of the

10 project without the grant.

11 (2) NUMBER OF APPLICATIONS.—The Secretary

12 shall establish limits on the number of applications

13 submitted by individual grantees within any unit of

14 general local government, State, or Indian tribe for

15 each announcement of funding availability that is

16 published in the Federal Register.

17 (3) GRANT CAP.—The Secretary shall establish

18 aggregate limits on the grant amounts that may be

19 made available to individual grantees within a unit

20 of general local government, State, or Indian tribe

21 for each announcement of funding availability that is

22 published in the Federal Register.

23 (e) AUTHORITY OF SECRETARY.—The Secretary

24 shall prescribe such requirements for the making of grants

25 under this section as the Secretary deems appropriate.
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1 RECORDS, REPORTS, AND AUDITS

2 SEC. 706. (a) KEEPING OF RECORDS.—Each grantee

3 shall keep such records as may be reasonably necessary

4 to disclose the amounts and the disposition of grant

5 amounts received under this subtitle and to ensure compli6 ance with the requirements of this subtitle.

7 (b) GRANTEE REPORTS.—Each grantee shall submit

8 to the Secretary a report, or series of reports, in a form

9 and at a time specified by the Secretary. Each report

10 shall—

11 (1) describe the use of funds made available

12 under this subtitle; and

13 (2) describe and analyze the effect of assisted

14 activities in addressing the objectives of this subtitle.

15 (c) ACCESS TO DOCUMENTS BY THE SECRETARY.—

16 The Secretary shall have access for the purpose of audit

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

18 records of the grantee that are pertinent to assistance re19 ceived in connection with, and the requirements of, this

20 subtitle.

21 (d) ACCESS TO DOCUMENTS BY THE COMPTROLLER

22 GENERAL.—The Comptroller General of the United

23 States, or any of the duly authorized representatives of

24 the Comptroller General, shall have access for the purpose

25 of audit and examination to any books, documents, papers,
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1 and records of the grantee that are pertinent to assistance

2 received under, and the requirements of, this subtitle.

3 TRAINING AND INFORMATION ACTIVITIES

4 SEC. 707. From amounts set aside under section

5 701(b)(1), the Secretary shall carry out, directly or

6 through contracts, training, information, and technical as7 sistance activities with respect to the programs authorized

8 by this subtitle.

9 DEFINITIONS

10 SEC. 708. As used in this subtitle:

11 (1) The term ‘‘Indian tribe’’ has the meaning

12 given such term in section 102(a)(17) of the Hous13 ing and Community Development Act of 1974.

14 (2) The term ‘‘neighborhood’’ means an area

15 consisting of such geographic and other characteris16 tics as the Secretary may prescribe.

17 (3) The term ‘‘nonprofit organization’’ means—

18 (A) an organization—

19 (i) that is described in section 501(c)

20 of the Internal Revenue Act of 1986; and

21 (ii) is exempt from taxation under

22 section 501(a) of such Code; or

23 (B) an organization—

24 (i) no part of the net earnings of

25 which inures to the benefit of any member,

26 founder, contributor, or individual;
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1 (ii) that in the case of a private non2 profit organization, has a voluntary board;

3 (iii) that has an accounting system, or

4 has designated a fiscal agent in accordance

5 with requirements established by the Sec6 retary; and

7 (iv) that practices nondiscrimination

8 in the provision of assistance.

9 (4) The term ‘‘Secretary’’ means the Secretary

10 of Housing and Urban Development.

11 (5) The term ‘‘State’’ has the meaning given

12 the term in section 102(a)(2) of the Housing and

13 Community Development Act of 1974.

14 (6) The term ‘‘unit of general local govern15 ment’’ means—

16 (A) a city, town, township, county, parish,

17 village, or other general purpose political sub18 division of a State;

19 (B) the District of Columbia; and

20 (C) any agency or instrumentality thereof

21 that is established pursuant to legislation and

22 designated by the chief executive to act on be23 half of the jurisdiction with regard to provisions

24 of this subtitle.
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1 The term includes a consortium of geographically

2 contiguous units of general local government, if the

3 Secretary determines that the consortium—

4 (i) has sufficient authority and administra5 tive capability to carry out the purposes of this

6 subtitle on behalf of its member jurisdictions;

7 and

8 (ii) meets such other requirements as the

9 Secretary may prescribe.

10 Subtitle B—Community Viability Fund

11 PROGRAM AUTHORIZATION

12 SEC. 711. Section 123 of the Housing and Urban13 Rural Recovery Act of 1983 is amended to read as follows:

14 ‘‘COMMUNITY VIABILITY FUND

15 ‘‘SEC. 123. (a) AUTHORIZATION.—

16 ‘‘(1) PROGRAM AUTHORITY.—The Secretary is

17 authorized, in accordance with the provisions of this

18 section—

19 ‘‘(A) to make grants for strategic planning

20 and urban design, as provided in subsection (b);

21 ‘‘(B) to make grants for community insti22 tution building and neighborhood development,

23 as provided in section (c); and

24 ‘‘(C) to provide analysis, information dis25 semination, travel, technical assistance, and rec26 ognition awards, as provided in section (d).
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1 ‘‘(2) FUNDING AUTHORITY.—

2 ‘‘(A) IN GENERAL.—There are authorized

3 to be appropriated for purposes of this section

4 $130,000,000 for fiscal year 1995 and such

5 sums as may be necessary for fiscal year 1996.

6 Any amounts appropriated shall remain avail7 able until expended.

8 ‘‘(B) OVERALL ALLOCATION OF FUNDS.—

9 Of the amounts appropriated under paragraph

10 (2) for each such year—

11 ‘‘(i) not to exceed $30,000,000 shall

12 be available for grants for strategic plan13 ning and urban design under subsection

14 (b);

15 ‘‘(ii) not to exceed $100,000,000 shall

16 be available for grants for community in17 stitution building and neighborhood devel18 opment under subsection (c); and

19 ‘‘(iii) not to exceed $10,000,000 shall

20 be available for analysis, information dis21 semination, travel, technical assistance,

22 and recognition awards under subsection

23 (d).

24 ‘‘(b) GRANTS FOR STRATEGIC PLANNING AND

25 URBAN DESIGN.—
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1 ‘‘(1) IN GENERAL.—From amounts set aside

2 under subsection (a)(2)(B)(i), the Secretary is au3 thorized to make grants in furtherance of the objec4 tives of this subsection to States; units of general

5 local government; and metropolitan, non-metropoli6 tan, and regional planning agencies.

7 ‘‘(2) CATEGORIES OF ACTIVITIES.—The Sec8 retary is authorized to allocate amounts available

9 under this subsection for the following categories of

10 activities—

11 ‘‘(A) urban design and the development of

12 public amenities in lower income neighborhoods

13 that serve as a catalyst for the renewal of the

14 neighborhood;

15 ‘‘(B) development and implementation of

16 comprehensive plans that focus on local and

17 metropolitan strategies which create sustainable

18 community development at the neighborhood,

19 city, and metropolitan level;

20 ‘‘(C) expanding economic opportunities for

21 persons of low and moderate income through

22 areawide planning approaches that provide edu23 cational and employment opportunities for such

24 persons;
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1 ‘‘(D) coordinated efforts that stimulate fair

2 housing, further the deconcentration of the poor

3 and minorities, reduce the isolation of income

4 groups within communities, remove barriers to

5 affordable housing development, and expand

6 housing opportunities for persons of low and

7 moderate income;

8 ‘‘(E) the conservation of important his9 toric, visual, and cultural features;

10 ‘‘(F) the development and implementation

11 of comprehensive approaches that integrate

12 poorer, inner-city neighborhoods into the great13 er metropolitan region; and

14 ‘‘(G) such other categories as the Sec15 retary determines will further the purposes of

16 this subsection.

17 ‘‘(3) ALLOCATION OF FUNDS.—From amounts

18 available under this subsection for any fiscal year,

19 the Secretary shall use—

20 ‘‘(A) 75 percent for competitive grants

21 under paragraph (4); and

22 ‘‘(B) 25 percent for non-competitive grants

23 under paragraph (5).

24 ‘‘(4) COMPETITIVE GRANTS.—An application

25 for a competitive grant under this subsection shall
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1 contain such information, and be submitted by an

2 applicant in such form and in accordance with such

3 procedures, as the Secretary shall prescribe.

4 ‘‘(5) NON-COMPETITIVE GRANTS.—The Sec5 retary shall select grantees for non-competitive

6 grants under this subsection through negotiation

7 with the grantee.

8 ‘‘(6) SELECTION CRITERIA.—The Secretary

9 shall establish selection criteria for grants under

10 paragraphs (4) and (5). The criteria shall include

11 factors such as the extent to which the activities pro12 posed for assistance—

13 ‘‘(A) involve interagency and intergovern14 mental coordination of Federal, State, and local

15 public, private, and non-profit resources in an

16 integrated manner;

17 ‘‘(B) represent an innovative approach to

18 furthering the objectives of this section; and

19 ‘‘(C) are part of an overall strategic revi20 talization plan.

21 ‘‘(7) AUTHORITY OF SECRETARY.—The Sec22 retary shall prescribe such additional requirements

23 for the making of grants under this subsection as

24 the Secretary deems appropriate.
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1 ‘‘(c) GRANTS FOR COMMUNITY INSTITUTION BUILD2 ING AND NEIGHBORHOOD DEVELOPMENT.—

3 ‘‘(1) IN GENERAL.—From amounts set aside

4 under subsection (a)(2)(B)(ii), the Secretary is au5 thorized to make grants to eligible neighborhood de6 velopment organizations, non-profit organizations,

7 and entities that assist such organizations in carry8 ing out activities under this section, to provide train9 ing and other forms of capacity building assistance

10 to improve and expand the ability of community and

11 neighborhood organizations to carry out housing and

12 development programs, and to carry out neighbor13 hood development activities, including those specified

14 in paragraphs (3) (B) through (F).

15 ‘‘(2) ALLOCATION OF FUNDS.—From amounts

16 available under this subsection for any fiscal year,

17 the Secretary shall use—

18 ‘‘(A) 75 percent for competitive grants

19 under paragraph (4); and

20 ‘‘(B) 25 percent for non-competitive grants

21 under paragraph (5).

22 ‘‘(3) ELIGIBLE ACTIVITIES.—Activities eligible

23 for assistance under this subsection include—
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1 ‘‘(A) training, technical assistance, and ca2 pacity building for new and existing organiza3 tions and institutions;

4 ‘‘(B) building the capacity of neighborhood

5 organizations and institutions, such as Commu6 nity Development Corporations, community

7 banks, and credit unions;

8 ‘‘(C) establishing new community-based or9 ganizations and institutions;

10 ‘‘(D) promoting joint ventures that expand

11 housing, educational, and employment choices

12 for inner city residents;

13 ‘‘(E) creating permanent jobs available to

14 persons of low and moderate income and unem15 ployed populations;

16 ‘‘(F) establishing or expanding business

17 opportunities within low- and moderate-income

18 neighborhoods;

19 ‘‘(G) developing, rehabilitating, or manag20 ing neighborhood housing stock;

21 ‘‘(H) developing delivery mechanisms for

22 essential services that have lasting benefit to

23 the community and neighborhood;

24 ‘‘(I) planning, promoting, or financing vol25 untary neighborhood improvement efforts; and
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1 ‘‘(J) such other activities that the Sec2 retary determines further the purposes of this

3 subsection.

4 ‘‘(4) COMPETITIVE GRANTS.—An application

5 for a competitive grant under this subsection shall

6 contain such information, and be submitted by an

7 applicant in such form and in accordance with such

8 procedures, as the Secretary shall prescribe.

9 ‘‘(5) NON-COMPETITIVE GRANTS.—The Sec10 retary shall select grantees for non-competitive

11 grants under this subsection through negotiation

12 with the grantee.

13 ‘‘(6) SELECTION CRITERIA.—The Secretary

14 shall establish selection criteria for grants under

15 paragraphs (4) and (5). The criteria shall include

16 the extent to which the proposed activities will—

17 ‘‘(A) develop new community and neigh18 borhood groups in previously unorganized areas

19 for groups that do not yet have the track record

20 necessary to secure project-based funding;

21 ‘‘(B) develop new organizations that link

22 housing, economic, and human development;

23 ‘‘(C) coordinate with local law enforcement

24 agencies or local public housing agencies involv25 ing anti-crime initiatives;
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1 ‘‘(D) leverage matching contributions to

2 support a wide variety of community develop3 ment initiatives from the private sector; founda4 tions; colleges and universities; civic groups; so5 cial, cultural, religious, and other institutions;

6 and the national service program in a manner

7 that achieves greater long-term private sector

8 support;

9 ‘‘(E) build the managerial, financial, and

10 administrative capacity of the applicant organi11 zation or the community organizations to which

12 it proposes to provide services; and

13 ‘‘(F) assist eligible neighborhood develop14 ment organizations.

15 ‘‘(7) AUTHORITY OF SECRETARY.—The Sec16 retary shall prescribe such additional requirements

17 for the making of grants under this subsection as

18 the Secretary deems appropriate.

19 ‘‘(d) RECOGNITION AWARDS.—

20 ‘‘(1) IN GENERAL.—From amounts set aside

21 under subsection (a)(2)(B)(iii), the Secretary is au22 thorized to provide awards recognizing excellence

23 and innovation in the preparation and implementa24 tion of community-wide and regional strategies or
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1 activities hat successfully further sustainable com2 munity development by—

3 ‘‘(A) expanding fair housing opportunities;

4 ‘‘(B) furthering economic revitalization;

5 ‘‘(C) reducing economic isolation of income

6 groups within communities and the region;

7 ‘‘(D) expanding housing, educational, and

8 employment choices for persons of low and

9 moderate income throughout a metropolitan

10 area;

11 ‘‘(E) providing amenities in lower income

12 neighborhoods that serve as a catalyst for and

13 result in the neighborhood’s revitalization; or

14 ‘‘(F) such other means as the Secretary

15 deems appropriate.

16 ‘‘(2) USE OF FUNDS.—The Secretary may use

17 amounts under this subsection—

18 ‘‘(A) to provide grants to, or to enter into

19 contracts with, public and private organizations

20 (including governmental, non-profit, and for21 profit organizations) to assist in the analysis

22 and selection of award recipients, the provision

23 (directly or by contract) of technical assistance,

24 and the dissemination of information used to
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1 carry out the programs authorized under sub2 sections (b) and (c);

3 ‘‘(B) to defray the costs of the Secretary

4 in administering the program authorized by this

5 subsection, including (but not limited to) such

6 costs as—

7 ‘‘(i) printing and disseminating infor8 mation;

9 ‘‘(ii) holding conferences;

10 ‘‘(iii) establishing and using design ju11 ries selected by the Secretary;

12 ‘‘(iv) providing nominal awards to

13 winning nominees;

14 ‘‘(v) holding competitions for awards,

15 including travel and per diem costs; and

16 ‘‘(vi) travel of award winners to at17 tend follow-on conferences endorsed by the

18 Secretary and to provide peer-to-peer as19 sistance to other appropriate individuals

20 and entities; and

21 ‘‘(C) providing technical assistance, di22 rectly or by contract, to further the purposes of

23 this subsection.

24 ‘‘(3) AUTHORITY OF SECRETARY.—The Sec25 retary shall prescribe such requirements for recogni-
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1 tion awards under this subsection as the Secretary

2 deems appropriate.

3 ‘‘(e) RECORDS, REPORTS, AND AUDITS.—

4 ‘‘(1) KEEPING OF RECORDS.—Each grantee

5 under this section shall keep such records as may be

6 reasonably necessary to disclose the amounts and

7 the disposition of grant amounts received under this

8 section and to ensure compliance with the require9 ments of this section.

10 ‘‘(2) GRANTEE REPORTS.—Each such grantee

11 shall submit to the Secretary a report, or series of

12 reports, in a form and at a time specified by the

13 Secretary. Each report shall—

14 ‘‘(A) describe the use of funds made avail15 able under this section; and

16 ‘‘(B) describe and analyze the effect of as17 sisted activities in addressing the purposes of

18 this section.

19 ‘‘(3) ACCESS TO DOCUMENTS BY THE SEC20 RETARY.—The Secretary shall have access for the

21 purpose of audit and examination to any books, doc22 uments, papers, and records of the grantee that are

23 pertinent to assistance received in connection with,

24 and the requirements of, this section.
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1 ‘‘(4) ACCESS TO DOCUMENT BY THE COMP2 TROLLER GENERAL.—The Comptroller General of

3 the United States, or any of the duly authorized rep4 resentatives of the Comptroller General, shall have

5 access for the purpose of audit and examination to

6 any books, documents, papers, and records of the

7 grantee that are pertinent to assistance received

8 under, and the requirements of, this section.

9 ‘‘(f) DEFINITIONS.—As used in this section:

10 ‘‘(1) For purposes of subsection (c), the term

11 ‘eligible neighborhood development organization’

12 means—

13 ‘‘(A) an entity organized as a nonprofit or14 ganization incorporated under the laws of the

15 State in which it operates;

16 ‘‘(B) an organization that is responsible to

17 residents of its neighborhood through a govern18 ing body, not less than 51 percent of the mem19 bers of which reside within the boundaries of

20 the area served;

21 ‘‘(C) an organization that has conducted

22 business for at least one year before the date of

23 an application for a grant; and

24 ‘‘(D) an organization that conducts neigh25 borhood development activities that have as
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1 their primary beneficiaries persons of low and

2 moderate income.

3 ‘‘(2) The term ‘nonprofit organization’ means—

4 ‘‘(A) an organization—

5 ‘‘(i) that is described in section 501(c)

6 of the Internal Revenue Act of 1986; and

7 ‘‘(ii) is exempt from taxation under

8 section 501(a) of such Code; or

9 ‘‘(B) an organization—

10 ‘‘(i) no part of the net earnings of

11 which inures to the benefit of any member,

12 founder, contributor, or individual;

13 ‘‘(ii) that in the case of a private non14 profit organization, has a voluntary board;

15 ‘‘(iii) that has an accounting system,

16 or has designated a fiscal agent in accord17 ance with requirements established by the

18 Secretary; and

19 ‘‘(iv) that practices nondiscrimination

20 in the provision of assistance.

21 ‘‘(3) The term ‘persons of low- and moderate22 income’ has the meaning given the term in section

23 102(a)(20) of the Housing and Community Develop24 ment Act of 1974.
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1 ‘‘(4) The term ‘Secretary’ means the Secretary

2 of Housing and Urban Development.

3 ‘‘(5) The term ‘State’ has the meaning given

4 the term in section 102(a)(2) of the Housing and

5 Community Development Act of 1974.

6 ‘‘(6) The term ‘unit of general local govern7 ment’ means—

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

9 village, or other general purpose political sub10 division of a State;

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

12 ‘‘(C) any agency or instrumentality thereof

13 that is established pursuant to legislation and

14 designated by the chief executive to act on be15 half of the jurisdiction with regard to provisions

16 of this section.

17 The term includes a consortium of geographically

18 contiguous units of general local government, if the

19 Secretary determines that the consortium—

20 ‘‘(i) has sufficient authority and adminis21 trative capability to carry out the purposes of

22 this section on behalf of its member jurisdic23 tions; and

24 ‘‘(ii) meets such other requirements as the

25 Secretary may prescribe.’’.
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1 SEC. 712. SAVINGS PROVISION.—(a) PREVIOUS

2 GRANTS.—Any grant approved under such section 123 be3 fore the effective date of this section shall continue to be

4 governed by the provisions of section 123.

5 (b) EFFECTIVE DATE.—This section shall become ef6 fective on the later of October 1, 1994 or the date of en7 actment of this Act.

8 Subtitle C—Colonias Assistance Program Authorization

9 SEC. 721. (a) PROGRAM AUTHORIZATION.—The Sec10 retary is authorized to make grants in accordance with

11 the provisions of this subtitle to units of general local gov12 ernment, States, non-profit organizations, or entities or

13 instrumentalities established under the authority of any

14 of these entities, for use in addressing the community de15 velopment and housing needs of colonias.

16 (b) FUNDING AUTHORIZATION.—

17 (1) IN GENERAL.—There are authorized to be

18 appropriated for purposes of this subtitle

19 $100,000,000 for each of fiscal years 1995 and

20 1996. Any amount appropriated shall remain avail21 able until expended.

22 (2) ALLOCATION OF FUNDS.—Of the amounts

23 appropriated under paragraph (1) for any fiscal

24 year—
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1 (A) 80 percent shall be available for grants

2 to establish model programs under section 723;

3 and

4 (B) 20 percent shall be available for com5 petitive grants under section 724.

6 ELIGIBLE ACTIVITIES

7 SEC. 722. Assistance under this subtitle may be used

8 to carry out the following activities—

9 (1) any activity eligible under section 105 of the

10 Housing and Community Development Act of 1974

11 or section 212(a) of the HOME Investment Partner12 ships Act;

13 (2) refinancing the existing debt of homeowners

14 to convert existing ownership regimes into mort15 gages;

16 (3) the construction of new housing, including

17 self-help, energy-efficient, and innovative housing de18 sign initiatives;

19 (4) the development of new subdivisions for af20 fordable housing;

21 (5) the re-platting and redevelopment of exist22 ing subdivisions;

23 (6) the planning for, and construction of, infra24 structure necessary for the development of housing,

25 economic development, and community facilities and

26 amenities; and
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1 (7) such other activities as the Secretary deems

2 appropriate to further the purposes of this subtitle.

3 MODEL PROGRAMS

4 SEC. 723. (a) IN GENERAL.—Of amounts allocated

5 under section 721(b)(2)(A), the Secretary shall make

6 grants to the entities referred to in section 721(a) for the

7 purpose of establishing model programs of assistance for

8 addressing the community development, housing, and

9 other needs of the residents of the colonias.

10 (b) SELECTION OF GRANTEES.—

11 (1) GEOGRAPHIC DISTRIBUTION.—The Sec12 retary shall designate—

13 (A) at least one project in each State; and

14 (B) at least one project within a metropoli15 tan area in any State.

16 (2) SELECTION PROCESSS.—

17 (A) IN GENERAL.—The Secretary shall se18 lect grantees under this section on a non-com19 petitive basis, through negotiation with the

20 grantee.

21 (B) SELECTION CRITERIA.—In selecting

22 projects, the Secretary shall consider—

23 (i) the extent of need in the colonia;

24 (ii) the likely effectiveness of the pro25 posed approach in addressing identified

26 needs;
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1 (iii) the extent to which funding for

2 the project is committed from sources

3 other than under this subtitle;

4 (iv) the need to consider a variety of

5 solutions to a variety of needs situations;

6 and

7 (v) such other factors as the Secretary

8 deems appropriate to carry out the objec9 tives of this subtitle.

10 COMPETITIVE GRANTS

11 SEC. 724. (a) FUNDING SET-ASIDE.—

12 (1) IN GENERAL.—Of amounts allocated under

13 section 721(b)(2)(B), the Secretary shall set aside a

14 target amount for grants under this section for use

15 in colonias in each State. The Secretary shall deter16 mine the amount to be set aside, based on such ob17 jective factors of need as the Secretary deems appro18 priate, which may include rates of poverty in, and

19 the population of, colonias. The Secretary shall re20 allocate any amounts set-aside under this paragraph

21 for which the Secretary determines there will not be

22 sufficient approvable applications in a fiscal year.

23 (2) USE OF FUNDS.—Any amount not set aside

24 or reallocated under paragraph (1) may be used in

25 colonias in any State.
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1 (b) AUTHORITY TO MAKE GRANTS.—Grants under

2 this section shall be made, in accordance with subsection

3 (a), to the entities referred to in section 721(a), for the

4 purpose of assisting the community development and

5 housing needs of the residents of one or more colonias in

6 an area or region.

7 (c) APPLICATIONS.—Applications under this section

8 shall contain such information, and shall be submitted at

9 such time and in accordance with such procedures, as the

10 Secretary shall prescribe.

11 (d) SELECTION OF GRANTEES.—

12 (1) IN GENERAL.—The Secretary shall select

13 grantees under this section on the basis of a com14 petition, following publication of a notice of funding

15 availability in the Federal Register.

16 (2) SELECTION CRITERIA.—In selecting

17 projects, the Secretary shall consider—

18 (A) the extent of need in the colonia;

19 (B) the likely effectiveness of the proposed

20 approach in addressing identified needs;

21 (C) the extent to which funding for the

22 project is committed from sources other than

23 under this subtitle;
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1 (D) the extent to which the application

2 represents an innovative approach to addressing

3 the needs of colonias; and

4 (E) such other factors as the Secretary

5 deems appropriate to carry out the objectives of

6 this subtitle.

7 RECORDS, REPORTS, AND AUDITS

8 SEC. 725. (a) KEEPING OF RECORDS.—Each grantee

9 shall keep such records as may be reasonably necessary

10 to disclose the amounts and the disposition of grant

11 amounts received under this subtitle and to ensure compli12 ance with the requirements of this subtitle.

13 (b) GRANTEE REPORTS.—Each grantee shall submit

14 to the Secretary a report, or series of reports, in a form

15 and at a time specified by the Secretary. Each report

16 shall—

17 (1) describe the use of funds made available

18 under this subtitle; and

19 (2) describe the analyze the effect of assisted

20 activities in addressing the community development

21 and housing needs of the residents of colonias.

22 (c) ACCESS TO DOCUMENTS BY THE SECRETARY.—

23 The Secretary shall have access for the purpose of audit

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

25 records of the grantee that are pertinent to assistance re-
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1 ceived in connection with, and the requirements of, this

2 subtitle.

3 (d) ACCESS TO DOCUMENTS BY THE COMPTROLLER

4 GENERAL.—The Comptroller General of the United

5 States, or any of the duly authorized representatives of

6 the Comptroller General, shall have access to the purpose

7 of audit and examination to any books, documents, papers,

8 and records of the grantee that are pertinent to assistance

9 received under, and the requirements of, this subtitle.

10 DEFINITIONS

11 SEC. 726. As used in this subtitle:

12 (1) The terms ‘‘colonia’’ and ‘‘United States13 Mexico Border Region’’ have the meanings given

14 those terms in sections 916(e) (1) and (4), respec15 tively, of the Cranston-Gonzalez National Affordable

16 Housing Act.

17 (2) The term ‘‘metropolitan area’’ has the

18 meaning given the term in section 102(a)(3) of the

19 Housing and Community Development Act of 1974.

20 (3) The term ‘‘nonprofit organization’’ means—

21 (A) an organization—

22 (i) that is described in section 501(c)

23 of the Internal Revenue Act of 1986; and

24 (ii) that is exempt from taxation

25 under section 501(a) of such Code; or

26 (B) an organization—
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1 (i) no part of the net earnings of

2 which inures to the benefit of any member,

3 founder, contributor, or individual;

4 (ii) that in the case of a private non5 profit organization, has a voluntary board;

6 (iii) that has an accounting system, or

7 has designated a fiscal agent in accordance

8 with requirements established by the Sec9 retary; and

10 (iv) that practices nondiscrimination

11 in the provision of assistance.

12 (4) The term ‘‘Secretary’’ means the Secretary

13 of Housing and Urban Development.

14 (5) The term ‘‘State’’’ means the States of

15 California, Arizona, New Mexico, and Texas.

16 (6) The term ‘‘unit of general local govern17 ment’’ means—

18 (A) a city, town, township, county, parish,

19 village, or other general purpose political sub20 division of a State;

21 (B) the District of Columbia; and

22 (C) any agency or instrumentality thereof

23 that is established pursuant to legislation and

24 designated by the chief executive to act on be-
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1 half of the jurisdiction with regard to provisions

2 of this subtitle.

3 The term includes a consortium of geographically

4 contiguous units of general local government, if the

5 Secretary determines that the consortium—

6 (i) has sufficient authority and administra7 tive capability to carry out the purposes of this

8 subtitle on behalf of its member jurisdictions;

9 and

10 (ii) meets such other requirements as the

11 Secretary may prescribe.

12 EXTENSION OF COLONIA PROGRAM UNDER SECTION 916

13 OF THE CRANSTON-GONZALEZ NATIONAL AFFORD14 ABLE HOUSING ACT

15 SEC. 727. Section 916(f) of the Cranston-Gonzalez

16 National Affordable Housing Act is amended by striking

17 ‘‘1991’’ and all that follows up to the period and inserting

18 in lieu thereof the following: ‘‘beginning before fiscal year

19 1998’’.

20 Subtitle D—Zone Economic Development Initiative

21 Authorization

22 SEC. 731. The Secretary of Housing and Urban De23 velopment may make grants to units of general local gov24 ernment in which Empowerment Zones and Enterprise

25 Communities have been designated pursuant to section

26 1391 of the Internal Revenue Code of 1986.
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1 PURPOSE

2 SEC. 732. The purpose of grants under this subtitle

3 is to assist units of general local government in imple4 menting the strategic plan for community revitalization re5 quirement for each designated Zone and Community by

6 expanding business opportunities and job creation and by

7 stimulating the use of project-based rental assistance cer8 tificates and other activities to construct or rehabilitate

9 rental housing.

10 ELIGIBLE ACTIVITIES

11 SEC. 733. (a) ECONOMIC DEVELOPMENT.—Economic

12 development activities are those that are eligible under

13 title I of the Housing and Community Development Act

14 of 1974.

15 (b) ASSISTED HOUSING.—Eligible assisted housing

16 activities include, but are not limited to—

17 (1) project-based assistance activities eligible

18 under section 8 of the United States Housing Act of

19 1937 or similar State and local programs; and

20 (2) activities eligible for assistance under the

21 HOME program or a similar local affordable hous22 ing program.

23 (c) TECHNICAL ASSISTANCE.—From amounts set

24 aside under section 737(b), the Secretary shall carry out,

25 directly or through contracts, training and information ac-
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1 tivities in connection with the program authorized by this

2 subtitle.

3 ALLOCATION OF FUNDS

4 SEC. 734. (a) APPLICATION.—A locality in which an

5 empowerment zone or enterprise community has been des6 ignated, where the designation remains in effect, may sub7 mit an application to the Secretary for a grant under this

8 subtitle. The application shall contain such information

9 and certifications as the Secretary may require, including

10 a certification that the grant will be used in accordance

11 with the approved strategic plan. Where a zone or commu12 nity is within the jurisdiction of more than one unit of

13 general local government, each shall join in the applica14 tion. The application shall specify whether, and if so how,

15 the grant is to be divided among one or more governments.

16 (b) FUNDING.—For applications approved by the

17 Secretary—

18 (1) each urban Empowerment Zone shall re19 ceive $50,000,000;

20 (2) each rural Empowerment Zone shall receive

21 $20,000,000; and

22 (3) each Enterprise Community shall receive

23 $1,400,000.

24 (c) TERMS AND CONDITIONS.—Grants made under

25 this subtitle shall be subject to such terms and conditions

26 as the Secretary may establish.
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1 USE IN CONJUNCTION WITH LOAN GUARANTEES

2 SEC. 735. Grants made under this subtitle may be

3 used in conjunction with loans guaranteed under section

4 108 of the Housing and Community Development Act of

5 1974 and section 227 of the Home Investment Partner6 ships Act.

7 RECORDS, REPORTS, AND AUDITS

8 SEC. 736. (a) KEEPING OF RECORDS.—Each grantee

9 shall keep such records as may be reasonably necessary

10 to disclose the amounts and the disposition of grant

11 amounts received under this subtitle and to ensure compli12 ance with the requirements of this subtitle.

13 (b) GRANTEE REPORTS.—Each grantee shall submit

14 to the Secretary a report, or series of reports, in a form

15 and at a time specified by the Secretary. Each report

16 shall—

17 (1) describe the use of funds made available

18 under this subtitle; and

19 (2) describe and analyze the effect of assisted

20 activities in addressing the objectives of this subtitle.

21 (c) ACCESS TO DOCUMENTS BY THE SECRETARY.—

22 The Secretary shall have access for the purpose of audit

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

24 records of the grantee that are pertinent to assistance re25 ceived in connection with, and the requirements of, this

26 subtitle.
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1 (d) ACCESS TO DOCUMENTS BY THE COMPTROLLER

2 GENERAL.—The Comptroller General of the United

3 States, or any of the duly authorized representatives of

4 the Comptroller General, shall have access for the purpose

5 of audit and examination to any books, documents, papers,

6 and records of the grantee that are pertinent to assistance

7 received under, and the requirements of, this subtitle.

8 FUNDING AUTHORIZATION

9 SEC. 737. (a) There authorized to be appropriated

10 for purposes of this subtitle $500,000,000 for fiscal year

11 1995 and such sums as may be necessary for fiscal year

12 1996. Any amount appropriated shall remain available

13 until expended.

14 (b) Of the amounts appropriated under subsection (a)

15 for any fiscal year and not allocated under section 734(b),

16 the Secretary shall set aside any balance to carry out the

17 training and information activities referred to in section

18 733(c).

19 Subtitle E—Authorizations of Appropriations

20 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT

21 AND AFFORDABLE HOUSING

22 SEC. 741. Section 4(e) of the HUD Demonstration

23 Act of 1993 (42 U.S.C. 9816 note) is amended to read

24 as follows:

25 ‘‘(e) AUTHORIZATION.—There are authorized to be

26 appropriated $20,000,000 for fiscal year 1995 and such
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1 sums as may be necessary for fiscal year 1996, to carry

2 out this section.’’.

3 COMMUNITY DEVELOPMENT BLOCK GRANTS

4 SEC. 742. (a) COMMUNITY DEVELOPMENT BLOCK

5 GRANTS.—The second sentence of section 103 of the

6 Housing and Community Development Act of 1974 (42

7 U.S.C. 5303) is amended to read as follows: ‘‘For pur8 poses of assistance under section 106, there are authorized

9 to be appropriated $4,400,000,000 for fiscal year 1995

10 and $4,400,000,000 for fiscal year 1996.’’.

11 (b) LIMITATION ON LOAN GUARANTEES.—The fifth

12 sentence of section 108(a) of the Housing and Community

13 Development Act of 1974 (42 U.S.C. 5308(a)) is amended

14 to read as follows: ‘‘Notwithstanding any other provision

15 of law and subject only to the absence of qualified appli16 cants or proposed activities and to the authority provided

17 in this section, to the extent approved in appropriation

18 Acts, the Secretary shall enter into commitments to guar19 antee notes and obligations under this section with an ag20 gregate principal amount of $2,054,000,000 for fiscal year

21 1995 and $2,054,000,000 for fiscal year 1996.’’.

22 (c) SPECIAL PURPOSE GRANTS.—Section 107 of the

23 Housing and Community Development Act of 1974 (42

24 U.S.C. 5307(a)) is amended by striking out all that fol25 lows ‘‘the following purposes:’’ and inserting in lieu there26 of the following:
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1 ‘‘(A) $7,000,000 shall be available in each

2 such year for grants under subsection (b)(1);

3 ‘‘(B) $6,500,000 shall be available in each

4 such year for grants under subsection (b)(3);

5 ‘‘(C) $28,000,000 shall be available in

6 each such year for activities under subsection

7 (b)(4);

8 ‘‘(D) $6,000,000 shall be available in each

9 such year under subsection (b)(5);

10 ‘‘(E) $2,000,000 shall be available in each

11 such year for grants under subsection (b)(6);

12 ‘‘(F) $3,000,000 shall be available in each

13 such year for grants under subsection (c); and

14 ‘‘(G) such sums as may be necessary shall

15 be available in each such year for grants under

16 paragraph (2) of subsection (b).’’.

17 ECONOMIC DEVELOPMENT INITIATIVE

18 SEC. 743. Section 108(q)(1) of the Housing and

19 Community Development Act of 1974 (42 U.S.C. 5308)

20 is amended by adding to the end thereof the following sen21 tence: ‘‘There are authorized to be appropriated to carry

22 out this subsection $50,000,000 for fiscal year 1995 and

23 such sums as may be necessary for fiscal year 1996, to

24 remain available until expended.’’.
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1 TITLE VIII—MANAGEMENT REFORM

2 Subtitle a—Improve the Allocation and Use of Assistance

3 LIMIT SECTION 8 CONTRACT RENT ADJUSTMENTS FOR

4 RENTS ABOVE SECTION 8 EXISTING HOUSING FMRS

5 SEC. 801. (a) Section 8(c)(2)(A) of the United States

6 Housing Act of 1937 is amended by inserting at the end

7 the following: ‘‘However, where the maximum monthly

8 rent, for a unit in a new construction, substantial rehabili9 tation, or moderate rehabilitation project, to be adjusted

10 using an annual adjustment factor exceeds the fair market

11 rental for an existing dwelling unit in the market area,

12 the Secretary shall adjust the rent only to the extent that

13 the owner demonstrates that the adjusted rent would not

14 exceed the rent for an unassisted unit of similar quality,

15 type, and age in the same market area, as determined by

16 the Secretary.’’.

17 (b) The amendment made by subsection (a) shall

18 apply to all contracts for new construction, substantial re19 habilitation, and moderate rehabilitation projects under

20 which rents are adjusted under section 8(c)(2)(A) of such

21 Act by applying an annual adjustment factor.

22 PROVIDE INCENTIVES TO REFINANCE HIGH INTEREST

23 MORTGAGES FOR SECTION 8 PROJECTS

24 SEC. 802. Section 8 of the United States Housing

25 Act of 1937 is amended by inserting the following new

26 subsection at the end:
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1 ‘‘(z) REFINANCING INCENTIVE.—For a project that

2 (1) was constructed, substantially rehabilitated, or mod3 erately rehabilitated under this section, (2) is subject to

4 an assistance contract under this section, and (3) was sub5 ject to a mortgage that has been refinanced under section

6 223(a)(7) or section 223(f) of the National Housing Act

7 to lower the periodic debt service payments of the owner,

8 the Secretary may pay the owner the amount of the

9 upfront costs to the owner of refinancing. The Secretary

10 may make such payments only from savings in the amount

11 of assistance payments, as determined by the Secretary

12 on a project-by-project basis and after application of

13 amounts in accordance with section 1012 of the Stewart

14 B. McKinney Homeless Assistance Amendments Act of

15 1988, that result from the refinancing during the first

16 year after the refinancing.’’.

17 LMSA REFORMS

18 SEC. 803. (a) Section 8(v)(1) of the United States

19 Housing Act of 1937 is amended to read as follows:

20 ‘‘(v)(1) In the case of a contract entered into under

21 this section for loan management assistance, the Secretary

22 may reduce the number of units covered by the contract

23 by one for each family that moves out of the project. This

24 paragraph shall not apply in the case of a contract for

25 loan management assistance entered into as an incentive

26 under the Emergency Low Income Housing Preservation
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1 Act of 1987 or the Low-Income Housing Preservation and

2 Resident Homeownership Act of 1990.’’.

3 (b) The amendment made by subsection (a) shall

4 apply to all contracts for loan management assistance en5 tered into under section 8 of such Act.

6 REDUCE AAF FOR UNITS WHERE FAMILY HAS NOT

7 MOVED SINCE PREVIOUS YEAR

8 SEC. 804. (a) Section 8(c)(2)(A) of the United States

9 Housing Act of 1937, as amended by section 801 of this

10 Act, is further amended by inserting at the end the follow11 ing: ‘‘For any unit occupied by the same family at the

12 time of the last annual rent adjustment, where the assist13 ance contract provides for the adjustment of the maximum

14 monthly rent by applying an annual adjustment factor and

15 where the rent for a unit is otherwise eligible for an ad16 justment based on the full amount of the factor, 0.01 shall

17 be subtracted from the amount of the factor, except that

18 the factor shall not be reduced to less than 1.0.’’.

19 (b) The amendment made by subsection (a) shall

20 apply to all contracts that are subject to section 8(c)(2)(A)

21 of such Act and that provide for rent adjustments using

22 an annual adjustment factor.

23 PREFERENCE FOR WORKING FAMILIES

24 SEC. 805. The United States Housing Act of 1937

25 is amended—
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1 (1) in each of sections 6(c)(4)(A)(ii) and

2 8(d)(1)(A)(ii), by striking ‘‘and (V)’’ and inserting

3 in lieu thereof the following: ‘‘(V) assisting families

4 that include one or more adult members who are

5 employed; and (VI)’’; and

6 (2) in the penultimate sentence of section 16(c),

7 by striking ‘‘under the system’’ and all that follows

8 up to the period.

9 USE OF TECHNICAL ASSISTANCE FUND BY OR FOR HUD

10 STAFF

11 SEC. 806. Section 7 of the Department of Housing

12 and Urban Development Act is amended by adding at the

13 end thereof a new subsection, as follows:

14 ‘‘(r) The Secretary may transfer to any of the ac15 counts of the Department for salaries and expenses from

16 any other account from which funds may be drawn for

17 technical assistance such amounts as the Secretary deter18 mines are reasonable to reimburse such salaries and ex19 penses account. Such reimbursement shall be for expendi20 tures for the costs of personal services, travel, and trans21 portation, and other object classifications that are in22 curred for the technical assistance, training, and related

23 activities provided by or to officials and employees of the

24 Department for a program that is funded from such other

25 account and in which the costs of technical assistance are

26 otherwise eligible for expenditure. Up to 10 percent of the
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1 amount that may be transferred may be used for technical

2 assistance, training, travel, and related expenses provided

3 to officials and employees of the Department. The author4 ity to transfer provided in this subsection shall be in addi5 tion to any other authority to transfer funds among ac6 counts that the Secretary may now or hereafter have.’’.

7 Subtitle B—Office of Public and Indian Housing

8 OVERSIGHT, TECHNICAL ASSISTANCE, EMERGENCY AC9 TION RESOURCES, AND RESIDENT SURVEY FOR PUB10 LIC HOUSING PROGRAMS

11 SEC. 811. (a) Section (3) of the United States Hous12 ing Act of 1937 is amended by adding to the end thereof

13 the following new subsection:

14 ‘‘(d) As used in sections 5 and 14, the term ‘technical

15 assistance and services’ shall include (but not be limited

16 to) any or all undertakings by the Secretary, directly using

17 officials and employees of the Secretary, or indirectly

18 under contract or otherwise, related to the inspection or

19 oversight of project or program development or implemen20 tation; training and technical assistance; public housing

21 agency or Indian housing authority program, project, or

22 general management; crisis management and operations;

23 and survey research; and the preparation of reports of rec24 ommendations to the Secretary.’’.
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1 (b) Section 5(c) of such Act is amended by adding

2 at the end thereof the following new paragraph:

3 ‘‘(9) From amounts appropriated pursuant to

4 this Act and earmarked for public housing develop5 ment (including Indian housing development) up to

6 one-half of one per centum shall be made available

7 to the Secretary for technical assistance and serv8 ices.’’.

9 (c) Section 14(k)(1) of such Act is redesignated as

10 section 14(k)(1)(A), and amended by adding the following

11 new paragraph, after such redesignated subparagraph, as

12 follows:

13 ‘‘(B) From amounts approved in appro14 priation Acts for grants under this section in

15 any fiscal year, up to one per centum shall be

16 made available to the Secretary for technical as17 sistance and services.’’.

18 RECAPTURE OF DEVELOPMENT AMOUNTS

19 SEC. 812. Section 5(k) of the United States Housing

20 Act of 1937 is amended by adding before the period at

21 the end of the first sentence a comma and the following:

22 ‘‘unless the Secretary finds that there is no feasible way

23 for the agency to begin construction or rehabilitation, or

24 to complete acquisition, within such period’’.
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1 Subtitle C—Office of Housing

2 SECTION 235 REFINANCING

3 SEC. 821. Section 235(r) of the National Housing

4 Act is amended—

5 (1) in paragraph (2)(C), by inserting after ‘‘re6 financed’’ the following: ‘‘, plus the costs incurred in

7 connection with the refinancing as described in para8 graph (4)(B) to the extent that the amount for those

9 costs is not otherwise included in the interest rate

10 as permitted by subparagraph (E) or paid by the

11 Secretary as authorized by paragraph (4)(B)’’;

12 (2) in paragraph (4):

13 (A) by inserting after ‘‘otherwise)’’ the fol14 lowing: ‘‘and the mortgagee with respect to the

15 amount described in paragraph (A)’’; and

16 (B) in subparagraph (A), by inserting after

17 ‘‘mortgagor’’ the following: ‘‘and the mortga18 gee’’; and

19 (3) by revising paragraph (5) to read as follows:

20 ‘‘(5) The Secretary shall use amounts of budget

21 authority recaptured from assistance payments con22 tracts relating to mortgages that are being refi23 nanced for assistance payments contracts with re24 spect to mortgages insured under this subsection.

25 The Secretary may also make such recaptured
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1 amounts available for incentives under paragraph

2 (4)(A) and the costs incurred in connection with the

3 refinancing under paragraph (4)(B). For purposes

4 of subsection (c)(3)(A), the amount of recaptured

5 budget authority that the Secretary commits for as6 sistance payments contracts relating to mortgages

7 insured under this subsection and for amounts paid

8 under paragraph (4) shall not be construed as ‘un9 used.’ ’’.

10 ELIMINATION OF NEW ACTIVITY IN LOW-USE FHA

11 MULTIFAMILY DEVELOPMENT PROGRAMS

12 SEC. 822. (a) Section 207 of the National Housing

13 Act is amended by adding the following new subsection

14 at the end thereof:

15 ‘‘(s) Beginning 30 days after the effective date of the

16 Housing Choice and Community Investment Act of 1994,

17 the Secretary may not accept new applications for mort18 gage insurance under this section with respect to mort19 gages involving (1) the new construction or substantial re20 habilitation of properties or projects or (2) manufactured

21 home parks.’’.

22 (b) Section 220 of such Act is amended by adding

23 the following new subsection at the end thereof:

24 ‘‘(i) Beginning 30 days after the effective date of the

25 Housing Choice and Community Investment Act of 1994,

26 the Secretary may not accept new applications for mort-
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1 gage insurance under this section with respect to mort2 gages involving the new construction or substantial reha3 bilitation of multifamily projects.’’.

4 (c) Section 231(b) of the such Act is amended by add5 ing the following new sentence at the end thereof: ‘‘Begin6 ning 30 days after the effective date of the Housing Choice

7 and Community Investment Act of 1994, the Secretary

8 may not accept new applications for mortgage insurance

9 under this section.’’.

10 (d) Section 234(d) of such Act is amended by adding

11 the following new flush material at the end thereof:

12 ‘‘Beginning 30 days after the effective date of the Housing

13 Choice and Community Investment Act of 1994, the Sec14 retary may not accept new applications for mortgage in15 surance under this subsection.’’.

16 (e) Section 1101 of such Act is amended by adding

17 the following new sentence at the end thereof: ‘‘Beginning

18 30 days after the effective date of the Housing Choice and

19 Community Investment Act of 1994, the Secretary may

20 not accept new applications for mortgage insurance under

21 this title.’’.

22 INDEMNIFICATION FOR PROJECT MANAGERS

23 SEC. 823. Section 207(l) of the National Housing Act

24 is amended by inserting the following before the period:

25 ‘‘: Provided further, That, for properties acquired by the

26 Secretary under this section and for properties secured by
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1 any mortgage assigned and transferred to or held by the

2 Secretary, the Secretary may indemnify management con3 tractors against claims by third persons for death, bodily

4 injury, or loss of or damage to property on such terms

5 as the Secretary determines appropriate’’.

6 Subtitle D—Office of Community Planning and

7 Development Management Information Systems

8 SEC. 831. MANAGEMENT INFORMATION SYSTEMS.—

9 Section 103 of the Housing and Community Development

10 Act of 1974 is amended—

11 (1) by inserting the subsection designation

12 ‘‘(a)’’ immediately after ‘‘103’’; and

13 (2) by adding the following new subsection at

14 the end thereof:

15 ‘‘(b) Of the amount approved in an appropriation Act

16 for each of fiscal years 1995 and 1996 under this section,

17 up to 0.5 percent may be set aside by the Secretary for

18 improving management information systems used by the

19 Secretary and recipients under this title.’’.

20 CDBG REALLOCATIONS

21 SEC. 832. Section 106(c) of the Housing and Com22 munity Development Act of 1974 is amended by striking

23 paragraph (4).

24 USE OF UDAG RECAPTURES

25 SEC. 833. Section 119(o) of the Housing and Com26 munity Development Act of 1974 is amended by striking
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1 ‘‘October 1, 1993’’ and inserting in lieu thereof ‘‘April 11,

2 1994’’.

3 Subtitle E—Nonjudicial Foreclosure of Defaulted Single

4 Family Mortgages

5 SEC. 841. SHORT TITLE.—This subtitle may be cited

6 as the ‘‘Single Family Mortgage Foreclosure Act of

7 1994’’.

8 SEC. 842. FINDINGS AND PURPOSE.—(a) FIND9 INGS.—The Congress finds that—

10 (1) disparate State laws under which mortgages

11 are foreclosed on behalf of the Secretary of Housing

12 and Urban Development covering one- to four-family

13 residential properties burden certain programs ad14 ministered by the Secretary, increase the costs of

15 collecting these obligations, and cause detriment to

16 the community generally;

17 (2) long periods to complete the foreclosure of

18 these mortgages under certain State laws lead to de19 terioration in the condition of the properties in20 volved; necessitate substantial Federal holding ex21 penditures; increase the risk of vandalism, fire loss,

22 depreciation, damage, and waste with respect to the

23 properties; and adversely affect the neighborhoods in

24 which the properties are located;
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1 (3) these conditions seriously impair the Sec2 retary’s ability to protect the Federal financial inter3 est in the affected properties and frustrate attain4 ment of the objectives of the underlying Federal pro5 gram authority;

6 (4) the availability of a uniform and more expe7 ditious procedures, with no right of redemption in

8 the mortgagor or others, for the foreclosure of these

9 mortgages by the Secretary will tend to ameliorate

10 these conditions; and

11 (5) providing the Secretary with a nonjudicial

12 foreclosure procedure will reduce unnecessary litiga13 tion by removing many foreclosures from the courts

14 where they contribute to overcrowded calendars.

15 (b) PURPOSE.—The purpose of this subtitle is to cre16 ate a uniform Federal foreclosure remedy for single family

17 mortgages that (1) are held by the Secretary of Housing

18 and Urban Development pursuant to title I or title II of

19 the National Housing Act or (2) secure loans obligated

20 by the Secretary under section 312 of the Housing Act

21 of 1964.

22 SEC. 843. DEFINITIONS.—As used in this subtitle—

23 (1) ‘‘bona fide purchaser’’ means a purchaser

24 for value in good faith and without notice of any ad-
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1 verse claim, who will, therefore, acquire the security

2 property free of any adverse claim;

3 (2) ‘‘mortgage’’ means a deed of trust, mort4 gage, deed to secure debt, security agreement, or

5 any other form of instrument under which any inter6 est in property, real, personal or mixed, or any inter7 est in property including leaseholds, life estates, re8 versionary interests, and any other estates under ap9 plicable State law, is conveyed in trust, mortgaged,

10 encumbered, pledged, or otherwise rendered subject

11 to a lien for the purpose of securing the payment of

12 money or the performance of an obligation;

13 (3) ‘‘single family mortgage’’ means a mortgage

14 that covers property on which there is located a one15 to four-family residence, which mortgage—

16 (A) is held by the Secretary pursuant to

17 title I or title II of the National Housing Act,

18 or

19 (B) secures a loan obligated by the Sec20 retary under section 312 of the Housing Act of

21 1964, as it existed before its repeal by section

22 289 of the Cranston-Gonzalez National Afford23 able Housing Act (except that a mortgage se24 curing such a loan that covers property contain-
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1 ing non-residential space and a one- to four2 family dwelling shall not be subject to this Act);

3 (4) ‘‘mortgage agreement’’ means the note or

4 debt instrument and the mortgage instrument, deed

5 of trust instrument, trust deed, or instrument or in6 struments creating the mortgage, including any in7 strument incorporated by reference therein and any

8 instrument or agreement amending or modifying any

9 of the foregoing;

10 (5) ‘‘mortgagor’’ means the obliger, grantor, or

11 trust named in the mortgage agreement and, unless

12 the context otherwise indicates, includes the current

13 owner of record of the security property whether or

14 not personally liable on the mortgage debt;

15 (6) ‘‘owner’’ means any person who has an

16 ownership interest in property and includes heirs,

17 devises, executors, administrators, and other per18 sonal representatives, and trustees of testamentary

19 trusts if the owner of record is deceased;

20 (7) ‘‘person’’ includes any individual, group of

21 individuals, association, partnership, corporation, or

22 organization;

23 (8) ‘‘record’’ and ‘‘recorded’’ include ‘‘register’’

24 and ‘‘registered’’ in the instance of registered land;
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1 (9) ‘‘security property’’ means the property

2 (real, personal or mixed) or an interest in property

3 (including leaseholds, life estates, reversionary inter4 ests, and any other estates under applicable State

5 law), together with fixtures and other interests sub6 ject to the lien of the mortgage under applicable

7 State law;

8 (10) ‘‘State’’ means the several States, the Dis9 trict of Columbia, the Commonwealth of Puerto

10 Rico, the United States Virgin Islands, Guam,

11 American Samoa, the Northern Mariana Islands, the

12 Trust Territory of the Pacific Islands, and Indian

13 tribes as defined by the Secretary;

14 (11) ‘‘county’’ means county as defined in title

15 2 of title I, United States Code; and

16 (12) ‘‘Secretary’’ means the Secretary of Hous17 ing and Urban Development.

18 SEC. 844. APPLICABILITY.—Single family mortgages

19 encumbering real estate located in any State may be fore20 closed by the Secretary in accordance with this subtitle,

21 or pursuant to other foreclosure procedures available, at

22 the option of the Secretary.

23 SEC. 845. DESIGNATION OF FORECLOSURE COMMIS24 SIONER.—A foreclosure commissioner or commissioners

25 designated pursuant to this subtitle shall have a
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1 nonjudicial power of sale as provided in this subtitle.

2 Where the Secretary wishes to foreclose upon a single fam3 ily mortgage, the Secretary may designate a foreclosure

4 commissioner and, with or without cause, may designate

5 a substitute foreclosure commissioner to replace a pre6 viously designated foreclosure commissioner, by executing

7 a duly acknowledged, written designation stating the name

8 and business or residential address of the commissioner

9 or substitute commissioner. The designation shall be effec10 tive upon execution. The foreclosure commissioner, if a

11 natural person, shall be a resident of the State in which

12 the security property is located and, if not a natural per13 son, the foreclosure commissioner must be duly authorized

14 to transact business under laws of the State in which the

15 security property is located. The foreclosure commissioner

16 shall be a person who is responsible, financially sound, and

17 competent to conduct the foreclosure. More than one fore18 closure commissioner may be designated. If a natural per19 son is designated as foreclosure commissioner or sub20 stitute foreclosure commissioner, such person shall be des21 ignated by name, except that where such person is des22 ignated in his or her capacity as an official or employee

23 of a government or corporate entity, such person may be

24 designated by his or her unique title or position instead

25 of by name.
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1 SEC. 846. PREREQUISITES TO FORECLOSURE.—

2 Foreclosure by the Secretary under this subtitle of a single

3 family mortgage may be commenced, as provided in sec4 tion 848, upon the breach of a covenant or condition in

5 the mortgage agreement for which foreclosure is author6 ized under the mortgage, except that no such foreclosure

7 may be commenced unless any previously pending proceed8 ing, judicial or nonjudicial, separately instituted by the

9 Secretary to foreclose the mortgage other than under this

10 subtitle has been withdrawn, dismissed, or otherwise ter11 minated. No such separately instituted foreclosure pro12 ceeding on the mortgage shall be instituted by the Sec13 retary during the pendency of foreclosure pursuant to this

14 subtitle. Nothing in this subtitle shall preclude the Sec15 retary from enforcing any right, other than foreclosure,

16 under applicable Federal or State law, including any right

17 to obtain a monetary judgment. Nothing in this subtitle

18 shall preclude the Secretary from foreclosing under this

19 subtitle where the Secretary has obtained or is seeking any

20 other remedy available pursuant to Federal or State law

21 or under the mortgage agreement, including, but not lim22 ited to, the appointment of a receiver, mortgage-in-posses23 sion status, or relief under an assignment of rents.

24 SEC. 847. NOTICE OF FORECLOSURE SALE.—The

25 notice of foreclosure sale to be served in accordance with
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1 this subtitle shall be subscribed with the name and address

2 of the foreclosure commissioner and the date on which

3 subscribed, and shall set forth the following information:

4 (1) The names of the Secretary, the original

5 mortgagee (if other than the Secretary), and the

6 original mortgagor.

7 (2) The street address or a description of the

8 location of the security property, and a description

9 of the security property, sufficient to identify the

10 property to be sold.

11 (3) The date of the mortgage, the office is

12 which the mortgage is recorded, and the liber and

13 folio or other description of the location of recorda14 tion of the mortgage.

15 (4) The failure to make payment, including the

16 due date of the earliest installment payment remain17 ing wholly unpaid as of the date the notice is sub18 scribed, or the description of other default or de19 faults upon which foreclosure is based, and the ac20 celeration of the secured indebtedness.

21 (5) The date, time, and place of the foreclosure

22 sale;

23 (6) A statement that the foreclosure is being

24 conducted pursuant to this subtitle.
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1 (7) The types of costs, if any, to be paid by the

2 purchaser upon transfer of title.

3 (8) The amount and method of deposit to be re4 quired at the foreclosure sale (except that no deposit

5 shall be required of the Secretary), the time and

6 method of payment of the balance of the foreclosure

7 purchase price, and other appropriate terms of sale.

8 SEC. 848. COMMENCEMENT OF FORECLOSURE.—(a)

9 If the Secretary as holder of a single family mortgage de10 termines that the prerequisites to foreclosure set forth in

11 section 846 are satisfied, the Secretary may request the

12 foreclosure commissioner to commence foreclosure of a

13 single family mortgage. Upon such request, the foreclosure

14 commissioner shall commence foreclosure of the mortgage,

15 by commencing service of a notice of default and fore16 closure sale in accordance with section 849.

17 (b) After commencement of a foreclosure under this

18 subtitle, the Secretary may designate a substitute fore19 closure commissioner at any time before the time of fore20 closure sale, and the foreclosure shall continue without

21 prejudice, unless the substitute commissioner, in his or her

22 sole discretion, finds that continuation of the foreclosure

23 sale will unfairly affect the interests of the mortgagor. If

24 the substitute commissioner makes such a finding, the

25 substitute commissioner shall cancel the foreclosure sale,
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1 or adjourn such sale in the manner provided in section

2 851(c). Upon designation of a substitute foreclosure com3 missioner, a copy of the written notice of such designation

4 referred to in section 845 shall be served (1) by mail, as

5 provided in such section 849 (except that the minimum

6 time periods between mailing and the date of foreclosure

7 sale prescribed in such section shall not apply), or (2) in

8 any other manner which, in the substitute commissioner’s

9 sole discretion, is conducive to achieving timely notice of

10 such substitution.

11 SEC. 849. SERVICE OF NOTICE OF FORECLOSURE

12 SALE.—The foreclosure commissioner shall serve the no13 tice of foreclosure sale provided for in section 847 upon

14 the following persons and in the following manner, and

15 no additional notice shall be required to be served, not16 withstanding any notice requirements of any State or local

17 law:

18 (1) TIMING.—At least 21 days prior to the date

19 of the foreclosure sale, the notice of foreclosure sale

20 required by section 848 of this subtitle shall be filed

21 in the manner authorized for filing a notice of an ac22 tion concerning real property according to the law of

23 the State where the security property is located or,

24 if none, in the manner authorized by section 3201

25 of title 28, United States Code.
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1 (2) NOTICE BY MAIL.—The notice of fore2 closure sale shall be sent by certified or registered

3 mail, postage prepaid and return receipt requested

4 to the following:

5 (A) The current security property owner of

6 record, as the record exists 45 days before the

7 date originally set for foreclosure sale, whether

8 or not the notice describes a sale adjourned as

9 provided in this subtitle.

10 (B) All mortgagors of record or other per11 sons who appear of record or in the mortgage

12 agreement to be liable for part or all of the

13 mortgage debt, as the record exists 45 days be14 fore the date originally set for foreclosure sale,

15 whether or not the notice describes a sale ad16 journed as provided in this subtitle, except any

17 such mortgagors or persons who have been re18 leased.

19 (C) All dwelling units in the security prop20 erty, whether or not the notice describes a sale

21 adjourned as provided in this subtitle.

22 (D) All persons holding liens of record

23 upon the security property, as the record exists

24 45 days before the date originally set for fore-
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1 closure sale, whether or not the notice describes

2 a sale adjourned as provided in this subtitle.

3 Notice under clauses (A) and (B) of this paragraph

4 shall be mailed at least 21 days before the date of

5 foreclosure sale, and shall be mailed to the owner or

6 mortgagor at the last known address of the owner

7 or mortgagor, or, if none, to the address of the secu8 rity property, or, at the discretion of the foreclosure

9 commissioner, to any other address believed to be

10 that of such owner or mortgagor. Notice under

11 clause (C) of this paragraph shall be mailed at least

12 21 days before the date of foreclosure sale. If the

13 names of the occupants of the security property are

14 not known to the Secretary, or the security property

15 has more than one dwelling, the notice shall be post16 ed at the security property at least 21 days prior to

17 the foreclosure sale. Notice under clause (D) of this

18 paragraph shall be mailed at least 21 days before

19 the date of foreclosure sale, and shall be mailed to

20 each such lienholder’s address as stated of record or,

21 at the discretion of the foreclosure commissioner, to

22 any other address believed to be that of such

23 lienholder. Notice by mail pursuant to this sub24 section or section 848(b) shall be deemed duly given

25 upon mailing, whether or not received by the ad-
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1 dressee and whether or not a return receipt is re2 ceived or the letter is returned.

3 (3) PUBLICATION.—A copy of the notice of de4 fault and foreclosure sale shall be published, as pro5 vided herein, once a week during three successive

6 calendar weeks before the sale date. Such publica7 tion shall be in a newspaper or newspapers having

8 general circulation in the county or counties in

9 which the security property being sold is located. To

10 the extent practicable, the newspaper or newspapers

11 chosen shall be a newspaper or newspapers, if any

12 is available, having circulation conducive to achiev13 ing notice of foreclosure by publication. A legal

14 newspaper that is accepted as a newspaper of legal

15 record in the county or counties in which the secu16 rity property being sold is located shall be considered

17 a newspaper having general circulation for the pur18 poses of this paragraph. Should there be no news19 paper published at least weekly which has a general

20 circulation in one of the counties in which the secu21 rity property being sold is located, copies of the no22 tice of default and foreclosure sale shall be posted at

23 the courthouse of any county or counties in which

24 the security property is located and at the place
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1 where the sale is to be held at least 21 days before

2 the date of sale.

3 SEC. 850. PRESALE REINSTATEMENT.—(a) Except

4 as provided in sections 848(b) and 851(c), the foreclosure

5 commissioner shall withdraw the security property from

6 foreclosure and cancel the foreclosure sale only if—

7 (1) the Secretary so directs the commissioner

8 prior to or at the time of sale;

9 (2) the commissioner finds, upon application of

10 the mortgagor at least 3 days before the date of

11 sale, that the default or defaults upon which the

12 foreclosure is based did not exist at the time of serv13 ice of the notice of default and foreclosure sale; or

14 (3)(A) in the case of a foreclosure involving a

15 monetary default, there is tendered to the fore16 closure commissioner before public auction is com17 pleted the entire amount of principal and interest

18 which would be due if payments under the mortgage

19 had not been accelerated;

20 (B) in the case of a foreclosure involving a

21 nonmonetary default, the foreclosure commissioner,

22 upon application of the mortgagor before the date of

23 foreclosure sale, finds that such default is cured; and

24 (C) there is tendered to the foreclosure commis25 sioner before public auction is completed all amounts
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1 due under the mortgage agreement (excluding addi2 tional amounts which would have been due if mort3 gage payments had been accelerated), all amounts of

4 expenditures secured by the mortgage, and all costs

5 of foreclosure incurred for which payment from the

6 proceeds of foreclosure is provided in section 852,

7 except that the Secretary shall have discretion to

8 refuse to cancel a foreclosure pursuant to this para9 graph if the current mortgagor or owner of record

10 has on one or more previous occasions caused a fore11 closure of the mortgage, commenced pursuant to

12 this subtitle or otherwise, to be canceled by curing

13 a default.

14 (b) Before withdrawing the security property from

15 foreclosure in the circumstances described in subsection

16 (a)(2) or (a)(3), the foreclosure commissioner shall afford

17 the Secretary a reasonable opportunity to demonstrate

18 why the security property should not be so withdrawn.

19 (c) In any case in which a foreclosure commenced

20 under this subtitle is canceled, the mortgage shall continue

21 in effect as though acceleration had not occurred.

22 (d) If the foreclosure commissioner cancels a fore23 closure sale under this subtitle a new foreclosure may be

24 subsequently commenced as provided in this subtitle.
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1 (e) The foreclosure commissioner shall file a notice

2 of cancellation in the same place and manner provided for

3 filing the notice of foreclosure sale in section 849.

4 SEC. 851. CONDUCT OF SALE; ADJOURNMENT.—(a)

5 Foreclosure sale pursuant to this subtitle shall be at public

6 auction, and shall be scheduled to begin between the hours

7 of 9 o’clock ante meridiem and 4 o’clock post meridiem

8 local time. The foreclosure sale shall be held at a location

9 specified in the notice of default and foreclosure sale,

10 which shall be a location where foreclosure real estate auc11 tions are customarily held in the county or one of the

12 counties in which the property to be sold is located, or

13 at a courthouse therein, or at or on the property to be

14 sold. Sale of security property situated in two or more

15 counties may be held in any one of the counties in which

16 any part of the security property is situated. The fore17 closure commissioner may designate the order in which

18 multiple tracts of security are sold.

19 (b) The foreclosure commissioner shall conduct the

20 foreclosure sale in accordance with the provisions of this

21 subtitle and in a manner fair to both the mortgagor and

22 the Secretary. Written one-price sealed bids shall be ac23 cepted by the foreclosure commissioner from the Secretary

24 and other persons for entry by announcement by the com25 missioner at the sale. The Secretary and any other person
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1 may bid at the foreclosure sale, including the Secretary

2 or any other person who has submitted a written one-price

3 bid. The foreclosure commissioner or any relative, related

4 business entity, or employee of such commissioner or en5 tity shall not be permitted to bid in any manner on the

6 security property subject to foreclosure sale, except that

7 the foreclosure commissioner or an auctioneer may be di8 rected by the Secretary to enter a bid on the Secretary’s

9 behalf. The foreclosure commissioner may serve as auc10 tioneer, or, in accordance with regulations of the Sec11 retary, may employ an auctioneer to be paid from the com12 mission provided for in section 852(5).

13 (c) The foreclosure commissioner shall have discre14 tion, prior to or at the time of sale to adjourn or cancel

15 the foreclosure sale if the commissioner determines, in the

16 commissioner’s discretion, that circumstances are not con17 ducive to a sale which is fair to the mortgagor and the

18 Secretary or that additional time is necessary to determine

19 whether the security property should be withdrawn from

20 foreclosure as provided in section 850. The foreclosure

21 commissioner may adjourn a sale to a later hour the same

22 day by announcing or posting the new time and place of

23 the foreclosure sale, or may adjourn the foreclosure sale

24 for not less than 9 nor more than 31 days, in which case

25 the commissioner shall serve a notice of default and fore-
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1 closure sale revised to recite that the foreclosure sale has

2 been adjourned to a specified date and to include any cor3 rections the foreclosure commissioner deems appropriate.

4 Such notice shall be served by publication and mailing in

5 accordance with section 849, except that publication may

6 be made on any of 3 separate days before the revised date

7 of foreclosure sale, and mailing may be made at any time

8 at least 7 days before the date to which the foreclosure

9 sale has been adjourned.

10 (d) The foreclosure commissioner may require a bid11 der to make a cash deposit in an amount or percentage

12 set by him and stated in the notice of foreclosure sale be13 fore the bid is accepted. A successful bidder at the fore14 closure sale who fails to comply with the terms of the sale

15 may be required to forfeit the cash deposit or, at the elec16 tion of the foreclosure commissioner after consultation

17 with the Secretary, shall be liable to the agency incurred

18 by the agency as a result of such failure.

19 (e) Any foreclosure sale held in accordance with this

20 subtitle shall be conclusively presumed to have been con21 ducted in a legal, fair, and reasonable manner. The sale

22 price shall be conclusively presumed to be reasonable and

23 equal to the fair market value of the property.
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1 SEC. 852. FORECLOSURE COSTS.—The following

2 foreclosure costs shall be paid from the sale proceeds be3 fore satisfaction of any other claim to such sale proceeds:

4 (1) Necessary advertising costs and postage in5 curred in giving notice pursuant to sections 849 and

6 851.

7 (2) Mileage for posting notices and for the fore8 closure commissioner’s or auctioneer’s attendance at

9 the sale as provided in section 1921 of title 28,

10 United States Code, for mileage by the most reason11 able road distance.

12 (3) Reasonable and necessary costs actually in13 curred in connection with any necessary search of

14 title and lien records.

15 (4) Necessary out-of-pocket costs incurred by

16 the foreclosure commissioner to record documents.

17 (5) A commission for the foreclosure commis18 sioner other than an employee of the United States

19 for the conduct of the foreclosure to the extent au20 thorized by the Secretary.

21 SEC. 853. DISPOSITION OF SALE PROCEEDS.—

22 Money realized from a foreclosure sale shall be made avail23 able for obligation and expenditure—

24 (1) first, to cover the costs of foreclosure pro25 vided for in section 852;
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1 (2) then, to pay valid tax liens or assessments

2 if required by the notice of foreclosure sale;

3 (3) then, to pay any liens recorded before the

4 recording of the mortgage which are required to be

5 paid in conformity with the terms of sale in the no6 tice of foreclosure sale;

7 (4) then, to service charges and advancements

8 for taxes, assessments, and property insurance pre9 miums;

10 (5) then, to the interest;

11 (6) then, to the principal balance secured by the

12 mortgage (including expenditures for the necessary

13 protection, preservation, and repair of the security

14 property as authorized under the mortgage agree15 ment and interest thereon if provided for in the

16 mortgage agreement); and

17 (7) then, to late charges.

18 Any surplus after payment of the foregoing shall be paid

19 to holders of liens recorded after the mortgage in the order

20 of priority under Federal law or the law of the State where

21 the security property is located and then to the appro22 priate mortgagor. If the person to whom such surplus is

23 to be paid cannot be located, or if the surplus available

24 is insufficient to pay all claimants and the claimant cannot

25 agree on the allocation of the surplus, or if any person
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1 claiming an interest in the mortgage proceeds does not

2 agree that some or all of the sale proceeds should be paid

3 to a claimant as provided in this section, that part of the

4 sale proceeds in question may be deposited by the fore5 closure commissioner with an appropriate official or court

6 authorized under law to receive disputed funds in such cir7 cumstances. If such a procedure for the deposit of dis8 puted funds is not available, and the foreclosure commis9 sioner files a bill of interpleader or is sued as a stakeholder

10 to determine entitlement to such funds, the foreclosure

11 commissioner’s necessary costs in taking or defending

12 such action shall be deductible from the disputed funds.

13 SEC. 854. TRANSFER OF TITLE AND POSSESSION.—

14 (a) The foreclosure commissioner shall deliver a deed or

15 deeds to the purchaser or purchasers without warranty or

16 covenants to the purchaser or purchasers and obtain the

17 balance of the purchase price in accordance with the terms

18 of sale provided in the notice of default and foreclosure

19 sale. Notwithstanding State law to the contrary, the com20 missioner’s deed shall be a conveyance of property, and

21 no judicial proceedings shall be required ancillary or sup22 plementary to the procedures provided in this subtitle to

23 assure the validity of the conveyance or confirmation of

24 such conveyance.
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1 (b) A purchaser at a foreclosure sale held pursuant

2 to this subtitle shall be entitled to possession upon passage

3 of title to the mortgaged property, subject to an interest

4 or interests not barred under section 856. Any person re5 maining in possession after the passage of title shall be

6 deemed a tenant at sufferance subject to eviction under

7 local law.

8 (c) If a purchaser dies before execution and delivery

9 of the deed conveying the property to the purchaser, the

10 foreclosure commissioner shall execute and deliver the

11 deed to the representative of the purchaser’s estate upon

12 payment of the purchase price in accordance with the

13 terms of sale. Such delivery to the representative of the

14 purchaser’s estate shall have the same effect as if accom15 plished during the lifetime of the purchaser.

16 (d) The purchaser of property under this subtitle

17 shall be presumed to be a bona fide purchaser without no18 tice of defects, if any, in the title conveyed to said pur19 chaser if the purchaser would have been considered a bona

20 fide purchaser without notice had the sale been made vol21 untarily and in person by the debtor.

22 (e) There shall be no right of redemption, or right

23 of possession based upon right of redemption, in the mort24 gagor or others subsequent to a foreclosure pursuant to

25 this subtitle. Section 204(l) of the National Housing Act
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1 and section 701 of the Department of Housing and Urban

2 Development Reform Act of 1989 shall not apply to mort3 gages foreclosed under this subtitle.

4 (f) When conveyance is made to the Secretary, no tax

5 shall be imposed or collected with respect to the fore6 closure commissioner’s deed, whether as a tax upon the

7 instrument or upon the privilege of conveying or transfer8 ring title to the property. Failure to collect or pay a tax

9 of the type and under the circumstances stated in the pre10 ceding sentence shall not be grounds for refusing to record

11 such a deed, for failing to recognize such recordation as

12 imparting notice, or for denying the enforcement of such

13 a deed and its provisions in any State or Federal court.

14 SEC. 855. RECORD OF FORECLOSURE AND SALE.—

15 (a) To establish a sufficient record of foreclosure and sale,

16 the foreclosure commissioner shall include in the recitals

17 of the deed to the purchaser or prepare an affidavit or

18 addendum to the deed stating—

19 (1) the date, time and place of sale;

20 (2) that the mortgage was held by the Sec21 retary, the date of the mortgage, the office in which

22 the mortgage was recorded, and the liber and folio

23 or other description of the recordation of the mort24 gage;
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1 (3) the particulars of the foreclosure commis2 sioner’s service of notice of default and foreclosure

3 sale in accordance with sections 849 and 851;

4 (4) the date and place of filing the notice of

5 foreclosure sale;

6 (5) that the foreclosure was conducted in ac7 cordance with the provisions of this subtitle and with

8 the terms of the notice of default and foreclosure

9 sale; and

10 (6) the sale amount.

11 (b) The statements set forth in subsection (a) shall

12 be prima facie evidence of the truth of such recitals and

13 statement of facts in any Federal or State court; and shall

14 be a conclusive presumption in favor of bona fide pur15 chasers and encumbrancers for value without notice. En16 cumbrancers for value include liens placed by lenders who

17 provide the purchaser with purchase money in exchange

18 for a security interest in the newly-conveyed property.

19 (c) The deed executed by the foreclosure commis20 sioner, the foreclosure commissioner’s affidavit and any

21 other instruments submitted for recordation in relation to

22 the foreclosure of the security property under this subtitle

23 shall be accepted for recordation by the registrar of deeds

24 or other appropriate official of the country or counties in

25 which the security property is located upon tendering of
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1 payment of the usual recording fees for such instruments

2 without regard to the compliance of those instruments

3 with local filing requirements.

4 SEC. 856. EFFECT OF SALE.—A sale, made and con5 ducted as prescribed in this subtitle to a bonda fide pur6 chaser, shall be an entire bar of all claims upon, or with

7 respect to, the property sold, of each of the following

8 persons:

9 (1) Any person to whom the notice of fore10 closure sale was mailed as provided in this subtitle,

11 and the heir, devisee, executor, administrator, suc12 cessor of assignee claiming under any such person.

13 (2) Any person claiming any interest in the

14 property subordinate to that of the mortgage, if such

15 person had actual knowledge of the sale.

16 (3) Each person, claiming any interest in the

17 property, whose assignment, mortgage, or other con18 veyance was not duly recorded or filed in the proper

19 place for recording or filing, or whose judgment or

20 decree was not duly docketed or filed in the proper

21 place for docketing or filing, prior to the date on

22 which the notice of sale was first served by publica23 tion, as required by section 849(2); and the execu24 tor, administrator, or assignee of such a person.
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1 (4) Every other person claiming under a statu2 tory lien or encumbrance created subsequent to the

3 recording or filing of the mortgage being foreclosed,

4 attaching to the title or interest of any person des5 ignated in any of the foregoing subsections of this

6 section.

7 SEC. 857. COMPUTATION OF TIME.—Periods of time

8 provided for in this subtitle shall be calculated in consecu9 tive calendar days including the day or days on which the

10 actions or events occur or are to occur for which the period

11 of time is provided and including the day on which an

12 event occurs or is to occur from which the period is to

13 be calculated.

14 SEC. 858. SEPARABILITY.—If any clause, sentence,

15 paragraph, or part of this subtitle shall, for any reason,

16 be adjudged by a court of competent jurisdiction to be in17 valid or invalid as applied to a class of cases, such judg18 ment shall not affect, impair, or invalidate the remainder

19 thereof and of this subtitle, but shall be confined in its

20 operation to the clause, sentence, paragraph, or part

21 thereof directly involved in the controversy in which such

22 judgment shall have been rendered.

23 SEC. 859. DEFICIENCY JUDGMENT.—(a) IN GEN24 ERAL.—If after deducting the disbursements provided for

25 in section 853 of this subtitle, the price at which the secu-
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1 rity property is sold at a foreclosure sale is less than the

2 unpaid balance of the debt secured by the security prop3 erty, resulting in a deficiency, the Secretary may refer the

4 matter to the Attorney General who may commence an

5 action or actions against any or all debtors to recover the

6 deficiency, unless specifically prohibited by the mortgage.

7 The United States is also entitled to recover any amount

8 authorized by section 3011 of title 28, United States Code,

9 and costs of the action.

10 (b) LIMITATION.—Any action commenced to recover

11 the deficiency must be brought within 6 years of the last

12 sale of the security property.

13 TITLE IX—MISCELLANEOUS AMENDMENTS

14 OFHEO ASSESSMENT COLLECTION DATES

15 SEC. 901. Section 1316(b) of the Housing and Com16 munity Development Act of 1992 is amended by striking

17 out paragraph (2) and inserting in lieu thereof the follow18 ing:

19 ‘‘(2) TIMING OF PAYMENT.—The annual assess20 ment shall be payable semiannually for each fiscal

21 year, on October 1st and April 1st.’’.

22 LEAD-BASED PAINT TECHNICAL ASSISTANCE

23 AMENDMENTS

24 SEC. 902. (a) Section 1011(g) of the Residential

25 Lead-Based Paint Hazard Reduction Act of 1992 is

26 amended—
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1 (1) in paragraph (1)—

2 (A) first sentence, by inserting immediately

3 before the period a comma and ‘‘by providing

4 technical assistance, either directly, or indirectly

5 under contracts or otherwise’’; and

6 (B) by striking out the second sentence;

7 and

8 (2) by striking out paragraph (2) and inserting

9 in lieu thereof the following:

10 ‘‘(2) SET-ASIDE.—Of the total amount ap11 proved in appropriation Acts under subsection (p),

12 there shall be set aside to carry out this subsection

13 $5,000,000 for fiscal year 1995 and $5,000,000 for

14 fiscal year 1996.’’.

15 (b) Section 1052 of such Act is amended by inserting

16 immediately after ‘‘other Federal agencies,’’ the following:

17 ‘‘either directly, or indirectly under contract or other18 wise,’’.

19 (c) Strike out section 1053 of such Act, and insert

20 in lieu thereof the following:

21 ‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI22 TIES.

23 ‘‘The Secretary is authorized to use funding that may

24 be available to carry out this part to undertake, either di25 rectly, or indirectly under contract or otherwise, pursuant
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1 to title V, Housing and Urban Development Act of 1970

2 (12 U.S.C. 1701z–1), such studies, tests (including but

3 not limited to pilot tests of new or revised programs), eval4 uations, demonstrations, education of the public, and

5 preparation of training materials, as are consistent with

6 the purposes of this Act.

7 ‘‘SEC. 1054. AUTHORIZATION.

8 ‘‘Of the total amount approved in appropriation Acts

9 under section 1011(p), there shall be set aside to carry

10 out this part $10,000,000 for fiscal year 1995 and

11 $10,000,000 for fiscal year 1996.’’.

12 LEAD-BASED PAINT TARGET HOUSING HAZARD

13 REDUCTION PROGRAM

14 SEC. 903. Section 1011(p) of the Residential Lead15 Based Paint Hazard Reduction Act of 1992 is amended

16 to read as follows:

17 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For the

18 purposes of carrying out this Act, there are authorized to

19 be appropriated $100,000,000 for fiscal year 1995 and

20 $100,000,000 for fiscal year 1996.’’.

21 HUD RESEARCH AND DEVELOPMENT

22 SEC. 904. The second sentence of section 501 of the

23 Housing and Urban Development Act of 1970 (12 U.S.C.

24 1701z–1) is amended to read as follows: ‘‘There are au25 thorized to be appropriated to carry out this title
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1 $40,000,000 for fiscal year 1995 and $40,000,000 for fis2 cal year 1996.’’.

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