Calendar No. 517

103D CONGRESS

2D SESSION S. 2281

[Report No. 103–307]

A BILL

To reduce homelessness, reform public housing, exempower communities, and for other purposes. homeownership, ensure fair housing for all, and pand and preserve affordable housing, encourage

JULY 13 (legislative day, JULY 11), 1994

Read twice and placed on the calendar
II

Calendar No. 517

103D CONGRESS

2D SESSION S. 2281

[Report No. 103–307]

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

empower communities, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 13 (legislative day, JULY 11), 1994

Mr. RIEGLE, from the Committee on Banking, Housing, and Urban Affairs,

reported the following original bill; which was read twice and placed on

the calendar

A BILL

To reduce homelessness, reform public housing, expand and

preserve affordable housing, encourage homeownership,

ensure fair housing for all, and 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,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Housing Choice and Community Investment Act of

4 1994’’.

5 (b) TABLE OF CONTENTS.—The table of contents for

6 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definition.

TITLE I—ASSISTANCE FOR THE HOMELESS

Sec. 101. Short title.

Sec. 102. Findings and purposes.

Sec. 103. Definitions.

Sec. 104. Authorizations.

Sec. 105. Application.

Sec. 106. Eligible activities.

Sec. 107. Matching requirement and maintenance of effort.

Sec. 108. Allocation and distribution of funds.

Sec. 109. Administration of program.

Sec. 110. Citizen participation.

Sec. 111. Reports, reviews, and audits.

Sec. 112. Nondiscrimination in programs and activities.

Sec. 113. Consultation.

Sec. 114. Records, reports, and audits.

Sec. 115. Annual report to Congress.

Sec. 116. Implementation.

Sec. 117. Transition provisions.

TITLE II—PUBLIC AND INDIAN HOUSING

Subtitle A—Enhanced Flexibility for Public Housing Agencies

Sec. 201. Public housing direct loans.

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

Sec. 203. Use of public-private partnerships in modernizing public housing.

Sec. 204. Report.

Sec. 205. Modification of the early childhood development program.

Sec. 206. Entrepreneurial PHAs and RMCs.

Sec. 207. Disallowance of earned income for residents who obtain employment.

Sec. 208. Ceiling rents based on reasonable rental value.

Sec. 209. Authorization to sell public housing to nonprofit organizations.

Sec. 210. Working families in public housing.

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.
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Subtitle C—Anti-Crime Initiatives

Sec. 221. Community partnerships against crime.

Sec. 222. Police in public housing.

Sec. 223. Availability of criminal records for screening and eviction.

Subtitle D—Authorizations and Extensions

Sec. 231. Low-income housing.

Sec. 232. Public housing operating subsidies.

Sec. 233. Family self-sufficiency program.

Sec. 234. Family investment and economic opportunity centers.

Sec. 235. Resident management and tenant opportunity program.

Sec. 236. Indian housing loan guarantee program.

Subtitle E—Applicability

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

Subtitle F—Termination of Certain Assisted Housing Programs

Sec. 251. Termination of certain assisted housing programs.

Subtitle G—Midnight Basketball League Training and Partnership

Sec. 261. Short title.

Sec. 262. Grants for midnight basketball league training and partnership.

Sec. 263. Public housing midnight basketball league programs.

Subtitle H—Miscellaneous Provisions

Sec. 271. Study of operating subsidy program.

Sec. 272. Composition of boards of directors of PHAs.

Sec. 273. Advanced training in public housing management.

Sec. 274. Deregulation of public housing agencies.

TITLE III—HOMEOWNERSHIP

Subtitle A—Expanded Single Family Homeownership Opportunities

Sec. 301. Maximum dollar amount for FHA single family mortgages.

Sec. 302. Streamlined refinancing for HUD-held mortgages.

Sec. 303. Innovative affordable housing demonstrations.

Sec. 304. Single family risk-sharing mortgage insurance program.

Sec. 305. Homeownership counseling and outreach.

Sec. 306. Delegation of insuring authority to direct endorsement mortgagees.

Subtitle B—Miscellaneous Provisions

Sec. 311. National homeownership fund demonstration.

Sec. 312. Section 235 refinancing.

Sec. 313. Energy efficient mortgages pilot program.

Subtitle C—Authorizations

Sec. 321. Limitation on GNMA guarantees for mortgage-backed securities.

Sec. 322. Limitation on FHA insuring authority.

Sec. 323. HOPE authorization of appropriations.

Sec. 324. Home equity conversion mortgages.
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TITLE IV—SECTION 8 RENTAL ASSISTANCE

Sec. 401. Merger of the certificate and voucher programs.

Sec. 402. Choice in residency.

Sec. 403. Family unification assistance.

Sec. 404. Fair market rents.

TITLE V—HOME INVESTMENT PARTNERSHIPS

Sec. 501. HOME program loan guarantees.

Sec. 502. HOME authorization of appropriations.

Sec. 503. Monitoring of compliance.

Sec. 504. Stabilization of HOME funding thresholds.

Sec. 505. HOME investments.

Sec. 506. Return of matching investment.

Sec. 507. Adjustment of qualifying rent.

Sec. 508. Increases in tenant income.

TITLE VI—MULTIFAMILY AND SUPPORTIVE HOUSING

Subtitle A—Preservation

Sec. 601. Cost-saving amendments.

Sec. 602. Low-income housing preservation authorization of appropriations.

Subtitle B—Renewal of Expiring Section 8 Contracts

Sec. 611. Authority to enter into new contracts.

Sec. 612. Criteria for entering into new contracts.

Sec. 613. Renewal process.

Sec. 614. Assistance for tenants.

Sec. 615. Procedures for voluntary sale to qualified purchaser.

Sec. 616. Rent levels in new contracts.

Sec. 617. Financing and restructuring underlying debt; discretionary authorities; residual receipts.

Sec. 618. Renewal requirements.

Sec. 619. Delegation of authority.

Sec. 620. Definitions.

Sec. 621. Implementation.

Sec. 622. Evaluation.

Sec. 623. Authorization of appropriations.

Subtitle C—Other Section 8 Program Amendments

Sec. 631. Refinancing high interest multifamily mortgages and eliminating unnecessary costs.

Sec. 632. Termination and reuse of section 8 HAP contract budget authority.

Sec. 633. Civil money penalties for violation of section 8 HAP contracts.

Subtitle D—Supportive Housing

Sec. 641. Section 811 rental assistance for persons with disabilities.

Sec. 642. Service coordinators in supportive housing.

Sec. 643. Funding for supportive housing for the elderly.

Sec. 644. Funding for supportive housing for persons with disabilities.

Sec. 645. Housing opportunities for persons with AIDS.

Subtitle E—Miscellaneous Provisions
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Sec. 651. Flexible subsidy program.

Sec. 652. Extension of section 221(g)(4) auction provisions.

Sec. 653. Extension of multifamily mortgage credit demonstrations.

Sec. 654. Indemnification for project managers.

Sec. 655. Civil money penalties against general partners and certain managing

agents of multifamily housing projects.

Sec. 656. Extension of equity skimming to other multifamily housing programs.

Sec. 657. Comprehensive needs assessments.

Sec. 658. Authorization of appropriations for General Insurance Fund and Special Risk Insurance Fund.

Sec. 659. FHA mortgage insurance limits for multifamily housing in high cost

areas.

Sec. 660. Elimination of new activity in low-use multifamily development programs.

Sec. 661. Revised congregate services.

Sec. 662. Study on FHA insured multifamily housing mortgages.

TITLE VII—COMMUNITY AND ECONOMIC DEVELOPMENT

Sec. 701. Community and economic development.

Sec. 702. Colonias assistance grants.

Sec. 703. Extension of colonia program under section 916 of the Cranston-Gonzalez National Affordable Housing Act.

Sec. 704. Community development block grants.

Sec. 705. Economic development initiative.

Sec. 706. CDBG reallocations.

Sec. 707. Community viability fund.

Sec. 708. Community investment corporation demonstration reauthorization.

Sec. 709. National cities in schools program.

Sec. 710. Community development grants for minority communities with special

needs demonstration.

Sec. 711. UDAG recaptures.

Sec. 712. State agencies as sureties.

Sec. 713. Conforming amendments related to empowerment zones and enterprise communities.

Sec. 714. Study of use of CDBG as a match for other Federal programs.

TITLE VIII—NONJUDICIAL FORECLOSURE OF DEFAULTED

SINGLE FAMILY MORTGAGES

Sec. 801. Short title.

Sec. 802. Findings and purpose.

Sec. 803. Definitions.

Sec. 804. Applicability.

Sec. 805. Designation of foreclosure commissioner.

Sec. 806. Prerequisites to foreclosure.

Sec. 807. Commencement of foreclosure.

Sec. 808. Notice of default and foreclosure sale.

Sec. 809. Service of notice of foreclosure sale.

Sec. 810. Presale reinstatement.

Sec. 811. Conduct of sale; adjournment.

Sec. 812. Foreclosure costs.

Sec. 813. Disposition of sale proceeds.

Sec. 814. Transfer of title and possession.

Sec. 815. Record of foreclosure and sale.

Sec. 816. Effect of sale.
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Sec. 817. Computation of time.

Sec. 818. Severability.

Sec. 819. Deficiency judgment.

TITLE IX—RURAL HOUSING

Sec. 901. Program authorizations.

Sec. 902. Eligibility of Native Americans for rural housing programs.

Sec. 903. Escrow fund.

Sec. 904. Section 502 homeownership loans.

Sec. 905. Designation of underserved areas and reservation of assistance.

Sec. 906. Section 515 rural rental housing.

Sec. 907. Optional conversion of rental assistance payments to operating subsidy for migrant farmworker projects.

Sec. 908. Eligibility of manufactured home parks for building site loans for cooperatives.

Sec. 909. Rural housing report.

Sec. 910. Priority for rural housing voucher assistance.

Sec. 911. Native American rural housing capacity demonstration program.

Sec. 912. Rural community development initiative.

TITLE X—REGULATORY AND MISCELLANEOUS PROGRAMS

Sec. 1001. OFHEO assessment collection dates.

Sec. 1002. Lead-based paint technical assistance amendments.

Sec. 1003. Lead-based paint target housing hazard reduction program.

Sec. 1004. Lead-based paint notification requirements.

Sec. 1005. HUD research and development.

Sec. 1006. Indemnification of contractors for intellectual property rights disputes.

Sec. 1007. Fair housing initiatives program authorization of appropriations.

Sec. 1008. Civil money penalties for violations of the Home Mortgage Disclosure Act by nonsupervised mortgagees.

Sec. 1009. Youthbuild.

Sec. 1010. Neighborhood reinvestment corporation.

Sec. 1011. HUD salaries and expenses.

Sec. 1012. Section 23 project conversion.

Sec. 1013. Civil money penalties for improper participation in the origination

of title I loans.

Sec. 1014. Public facilities loan.

Sec. 1015. National Commission on the Future of the Federal Housing Administration.

1 SEC. 2. DEFINITION.

2 For purposes of this Act, the term ‘‘Secretary’’

3 means the Secretary of Housing and Urban Development.
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1 TITLE I—ASSISTANCE FOR THE

2 HOMELESS

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Stewart B. McKinney

5 Homeless Housing Assistance Reorganization Act of

6 1994’’.

7 SEC. 102. FINDINGS AND PURPOSES.

8 (a) FINDINGS.—The Congress finds that—

9 (1) more Americans are homeless than at any

10 time since the Great Depression;

11 (2) homeless populations in different parts of

12 the country require different types of services to

13 meet their needs;

14 (3) the different needs within the homeless pop15 ulation argue for a comprehensive approach to Fed16 eral homeless housing assistance that provides out17 reach and assessment, emergency shelter, multiple

18 services, transitional housing, and permanent hous19 ing; and

20 (4) the separate Federal programs designed to

21 solve specific homeless problems have different dis22 tribution mechanisms, rules, and reporting require23 ments, that—

24 (A) exceed the resources available to the

25 Department of Housing and Urban Develop-
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1 ment, State governments, local governments,

2 and not-for-profit homeless providers;

3 (B) restrict the flexibility of communities

4 to fashion comprehensive homeless systems that

5 meet the needs of homeless persons in their

6 areas;

7 (C) result in unpredictable funding

8 streams that hinder the ability of communities

9 and service providers to plan, develop, and im10 plement comprehensive systems to assist home11 less individuals and families; and

12 (D) impede the integration and coordina13 tion of Federal, State, and local government

14 and private for-profit and not-for-profit re15 sources available within a community.

16 (b) PURPOSES.—The purposes of this title are—

17 (1) to reorganize the homeless housing assist18 ance authorities under the Stewart B. McKinney

19 Homeless Assistance Act;

20 (2) to assist States and localities, in partner21 ship with private nonprofit service providers, to use

22 homeless funding more efficiently and effectively;

23 (3) to simplify and make more flexible the pro24 vision of Federal homeless assistance;
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1 (4) to maximize a community’s ability to imple2 ment a coordinated, comprehensive system for pro3 viding assistance to homeless families and individ4 uals;

5 (5) to make more efficient and equitable the

6 manner in which the Secretary distributes homeless

7 assistance;

8 (6) to reduce the burden on the Secretary’s

9 staff in managing numerous programs and grant

10 competitions;

11 (7) to reduce the costs to States, units of gen12 eral local government, and private nonprofit organi13 zations in applying for and using assistance; and

14 (8) to advance the goal of meeting the needs of

15 the homeless population through the mainstream

16 programs for permanent housing as the Federal re17 sources supporting these programs become available.

18 SEC. 103. DEFINITIONS.

19 For purposes of this title, the following definitions

20 shall apply:

21 (1) COMPREHENSIVE HOMELESS ASSISTANCE

22 SYSTEM.—A ‘‘comprehensive homeless assistance

23 system’’ includes—

24 (A) a system of outreach and assessment

25 for—
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1 (i) determining whether an individual

2 or family is homeless, or whether assist3 ance is necessary to prevent an individual

4 or family from becoming homeless; and

5 (ii) ensuring that individuals and fam6 ilies that are so identified under clause (i)

7 receive appropriate housing and supportive

8 services, including assistance required to

9 prevent homelessness;

10 (B) emergency shelters with appropriate

11 supportive services to help ensure that homeless

12 individuals and families receive adequate shel13 ter;

14 (C) transitional housing with appropriate

15 supportive services to help ensure that homeless

16 individuals and families are prepared to make

17 the transition to increased responsibility and

18 permanent housing;

19 (D) permanent housing, or permanent sup20 portive housing, to help meet the long-term

21 housing needs of homeless individuals and fami22 lies;

23 (E) coordination between assistance pro24 vided under this title and assistance provided

25 under other Federal, State, and local programs
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1 that may be used to assist homeless individuals

2 and families, including programs administered

3 by the Department of Veterans Affairs, the De4 partment of Labor, the Department of Health

5 and Human Services, and the Department of

6 Education; and

7 (F) a system of referrals for subpopula8 tions of the homeless (including homeless veter9 ans) to the appropriate agencies, programs, or

10 services (including health care, job training, and

11 income support) necessary to meet their needs.

12 (2) ALLOCATION UNIT OF GENERAL LOCAL

13 GOVERNMENT.—The term ‘‘allocation unit of general

14 local government’’ means a metropolitan city or an

15 urban county.

16 (3) METROPOLITAN CITY.—The term ‘‘metro17 politan city’’ has the same meaning as in section

18 102(a)(4) of the Housing and Community Develop19 ment Act of 1974.

20 (4) URBAN COUNTY.—The term ‘‘urban coun21 ty’’ has the same meaning as in section 102(a)(6) of

22 the Housing and Community Development Act of

23 1974.

24 (5) UNIT OF GENERAL LOCAL GOVERNMENT.—
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1 (A) IN GENERAL.—The term ‘‘unit of gen2 eral local government’’ means—

3 (i) a city, town, township, county, par4 ish, village, or other general purpose politi5 cal subdivision of a State;

6 (ii) the District of Columbia; and

7 (iii) any agency or instrumentality

8 thereof that is established pursuant to leg9 islation and designated by the chief execu10 tive to act on behalf of the jurisdiction

11 with regard to provisions of this title.

12 (B) CONSORTIA.—The term ‘‘unit of gen13 eral local government’’ may include a consor14 tium of geographically contiguous units of gen15 eral local government if the Secretary deter16 mines that the consortium—

17 (i) has sufficient authority and admin18 istrative capability to carry out the pur19 poses of this title on behalf of its member

20 jurisdictions; and

21 (ii) will, according to a written certifi22 cation by the State (or States, if the con23 sortium includes jurisdictions in more than

24 1 State), direct its activities to the allevi-
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1 ation of problems of homeless individuals

2 or families within the State or States.

3 (6) INDIAN TRIBE.—The term ‘‘Indian tribe’’

4 has the same meaning as in section 102(a) of the

5 Housing and Community Development Act of 1974.

6 (7) INSULAR AREA.—The term ‘‘Insular Area’’

7 means the Virgin Islands, Guam, American Samoa,

8 and the Northern Mariana Islands.

9 (8) STATE.—The term ‘‘State’’ means each of

10 the several States and the Commonwealth of Puerto

11 Rico. Such term includes an agency or instrumental12 ity of a State that is established pursuant to legisla13 tion and designated by the chief executive to act on

14 behalf of the jurisdiction with regard to provisions of

15 this title.

16 (9) PRIVATE NONPROFIT ORGANIZATION.—The

17 term ‘‘private nonprofit organization’’ means an or18 ganization—

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

20 inures to the benefit of any member, founder,

21 contributor, or individual;

22 (B) that has a voluntary board;

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

24 designated a fiscal agent in accordance with re25 quirements established by the Secretary; and
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1 (D) that practices nondiscrimination in the

2 provision of assistance.

3 (10) HOMELESS INDIVIDUAL.—The term

4 ‘‘homeless individual’’ has the same meaning as in

5 section 103 of the Stewart B. McKinney Homeless

6 Assistance Act.

7 (11) HOMELESS FAMILY.—The term ‘‘homeless

8 family’’ means a group of one or more related indi9 viduals who are homeless individuals.

10 (12) APPLICANT.—The term ‘‘applicant’’ means

11 a grantee submitting an application under section

12 105.

13 (13) RECIPIENT.—The term ‘‘recipient’’ means

14 a grantee and a State recipient.

15 (14) STATE RECIPIENT.—The term ‘‘State re16 cipient’’ means—

17 (A) a unit of general local government

18 within the State (other than an allocation unit

19 of general local government) receiving grant

20 amounts from the State under section

21 109(c)(3); and

22 (B) a public agency or a private nonprofit

23 organization receiving grant amounts from the

24 State under section 109(c)(3).

25 (15) GRANTEE.—The term ‘‘grantee’’ means—
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1 (A) an allocation unit of general local gov2 ernment, Indian tribe, or Insular Area that ad3 ministers a grant under section 109(a)(1);

4 (B) a public agency or a private nonprofit

5 organization (or a consortium of such organiza6 tions) designated by an allocation unit of gen7 eral local government, Indian tribe, or Insular

8 Area to administer grant amounts under section

9 109(a)(2);

10 (C) a State or a private nonprofit organi11 zation designated by the Secretary to admin12 ister grant amounts under section 109(a)(3);

13 (D) a State administering a grant under

14 section 109(c)(1)(A);

15 (E) a unit of general local government des16 ignated by the Secretary to administer a grant

17 under section 109(c)(4);

18 (F) a public agency or private nonprofit

19 organization (a consortium of such organiza20 tions) designated by a unit of general local gov21 ernment to administer a grant from the Sec22 retary under section 109(c)(4); or

23 (G) a private nonprofit organization receiv24 ing a grant from the Secretary under section

25 109(c)(4).
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1 SEC. 104. AUTHORIZATIONS.

2 (a) IN GENERAL.—The Secretary may make grants

3 under this title to carry out activities to assist homeless

4 individuals and families in support of comprehensive

5 homeless assistance systems, in accordance with the provi6 sions of this title.

7 (b) FUNDING AMOUNTS.—There are authorized to be

8 appropriated to carry out this title $1,250,000,000 for fis9 cal year 1996. Any amounts appropriated shall remain

10 available until expended.

11 SEC. 105. APPLICATION.

12 (a) IN GENERAL.—Each applicant shall submit the

13 application required under this section in a form and in

14 accordance with such procedures as the Secretary shall

15 prescribe.

16 (b) HOMELESS ASSISTANCE STRATEGY.—

17 (1) IN GENERAL.—The local board established

18 for each recipient under section 110(c) or the State

19 advisory board established under section 110(d)

20 shall prepare a homeless assistance strategy for in21 clusion in the comprehensive housing affordability

22 strategy required under section 105 of the Cranston23 Gonzalez National Affordable Housing Act.

24 (2) CONSISTENCY REQUIREMENT.—The chief

25 executive officer of the State, allocation unit of gen26 eral local government, Indian tribe, or Insular Area
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1 shall ensure that the homeless assistance strategy is

2 consistent with the other elements of the comprehen3 sive housing affordability strategy.

4 (3) LOCAL BOARD COMMENTS.—To the extent

5 that the chief executive officer of the recipient alters

6 the homeless assistance strategy prepared by the

7 State advisory board or local board, the comments of

8 the State advisory board or local board on those

9 changes shall be included in the application.

10 (c) ADDITIONAL REQUIREMENTS FOR ALLOCATION

11 UNITS OF GENERAL LOCAL GOVERNMENT, INDIAN

12 TRIBES, AND INSULAR AREAS.—

13 (1) IN GENERAL.—The homeless assistance

14 strategy prepared by allocation units of general local

15 government, Indian tribes, and Insular Areas shall—

16 (A) include a description of the com17 prehensive homeless assistance system to be es18 tablished and maintained within the jurisdic19 tion; and

20 (B) meet the requirements established

21 under section 105(b)(2) of the Cranston-Gon22 zalez National Affordable Housing Act and

23 paragraph (2) of this subsection.

24 (2) ADDITIONAL REQUIREMENTS FOR HOME25 LESS ASSISTANCE STRATEGY.—Each homeless as-
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1 sistance strategy described in paragraph (1) shall

2 also contain—

3 (A) a description of current facilities and

4 services designed to assist homeless individuals

5 and families and an assessment of what is re6 quired to establish and maintain a comprehen7 sive homeless assistance system;

8 (B) a multiyear strategy for establishing

9 and maintaining the comprehensive homeless

10 assistance system, including appropriate time11 tables and budget estimates for accomplishing

12 each element of the strategy;

13 (C) a 1-year action plan, identifying all ac14 tivities to be carried out with assistance under

15 this title and describing how these activities will

16 further the strategy;

17 (D) a description of efforts to address the

18 problems faced by each of the different sub19 populations of the homeless, especially those of

20 homeless veterans;

21 (E) a certification or other evidence of fi22 nancial commitments and other resources for

23 meeting the requirements of subsections (a) and

24 (b) of section 107; and
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1 (F) a certification that the applicant will

2 comply with the requirements of this title and

3 other applicable laws.

4 (d) ADDITIONAL REQUIREMENTS FOR STATES.—The

5 homeless assistance strategy prepared by a State advisory

6 board shall meet the requirements established under sec7 tion 105(b)(2) of the Cranston-Gonzalez National Afford8 able Housing Act and shall also include—

9 (1) a multiyear strategy for establishing and

10 maintaining comprehensive homeless assistance sys11 tems throughout the State, including the actions the

12 State will take to achieve the goals set out in the

13 strategy;

14 (2) a 1-year action plan identifying the criteria

15 that the State will use in distributing amounts

16 awarded under this title, the method of distribution,

17 and the relationship of the method of distribution to

18 the homeless assistance strategy;

19 (3) a description of how the strategy will ad20 dress the problems of different subpopulations of the

21 homeless, especially those of homeless veterans;

22 (4) a certification or other evidence of financial

23 commitments and other resources, for meeting the

24 requirements under subsections (a) and (b) of sec25 tion 107 and assurances satisfactory to the Sec-
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1 retary that State recipients will also meet these re2 quirements; and

3 (5) a certification that the State and State re4 cipients will comply with the requirements of this

5 title and other applicable laws.

6 SEC. 106. ELIGIBLE ACTIVITIES.

7 Recipients may carry out the following activities with

8 grants received under this title:

9 (1) OUTREACH AND ASSESSMENT.—Outreach

10 and assessment activities designed to inform eligible

11 individuals and families about availability of services

12 and encourage the use of these services.

13 (2) PREVENTION.—Efforts to prevent homeless14 ness, including financial assistance to an individual

15 or family that has received an eviction notice, notice

16 of mortgage foreclosure, or notice of termination of

17 utility services, if—

18 (A) the individual or family cannot make

19 the required payments due to a sudden reduc20 tion of income or other financial emergency;

21 (B) the assistance is necessary to avoid the

22 eviction, foreclosure, or termination of services;

23 and
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1 (C) there is a reasonable prospect that the

2 individual or family will be able to resume pay3 ments within a reasonable period of time.

4 (3) EMERGENCY HOUSING.—The provision of

5 short-term emergency lodging in motels or shelters,

6 either directly or indirectly through vouchers.

7 (4) ACQUISITION, CONSTRUCTION, OR RENOVA8 TION.—The renovation, acquisition (and the costs

9 associated with the acquisition of Federal inventory

10 property to house homeless families), rehabilitation,

11 new construction, or conversion of buildings to be

12 used for the provision of services to the homeless.

13 (5) LEASING.—Leasing of an existing structure

14 or structures, or units within these structures, in15 cluding the provision of long-term rental assistance

16 contracts.

17 (6) OPERATING COSTS.—Operating costs in18 cluding salaries and benefits, maintenance, insur19 ance, utilities, and furnishings.

20 (7) TENANT ASSISTANCE.—The provision of se21 curity or utility deposits, rent or utility payments for

22 the first month of residence at a new location, and

23 relocation assistance.

24 (8) SUPPORTIVE SERVICES.—The provision of

25 essential supportive services, including case manage-
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1 ment, housing counseling, job training and place2 ment, primary health care, mental health services,

3 substance abuse treatment, child care, transpor4 tation, emergency food and clothing, family violence

5 services, education services, moving assistance, and

6 referrals to veterans services and legal services, ex7 cept that not more than 30 percent of the aggregate

8 amount of all assistance to a State, unit of general

9 local government, or Indian tribe under this title

10 may be used for activities under this paragraph.

11 (9) COSTS OF ADMINISTRATION.—The cost of

12 administration, which may include the planning, de13 velopment, and establishment, of a program under

14 this title, the cost of constituting and operating the

15 local board referred to in section 110(c), and the

16 cost of administering the program, except that not

17 more than 5 percent of any amounts provided to a

18 recipient under this title for a fiscal year may be

19 used for activities under this paragraph.

20 (10) CAPACITY BUILDING.—Building the capac21 ity of private nonprofit organizations to participate

22 in the comprehensive homeless assistance system of

23 the recipient, except that not more than 2 percent

24 of any amounts provided to a recipient under this
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1 title for a fiscal year may be used for activities

2 under this paragraph.

3 (11) OTHER ACTIVITIES.—Other activities that

4 further the purposes of this title, as determined by

5 the Secretary.

6 SEC. 107. MATCHING REQUIREMENT AND MAINTENANCE

7 OF EFFORT.

8 (a) MATCHING REQUIREMENT.—

9 (1) IN GENERAL.—Each recipient under this

10 title shall ensure that contributions totaling not less

11 than 25 percent of the amounts made available to

12 the recipient for any fiscal year to carry out the

13 homeless assistance program of the recipient are

14 from non-Federal sources. At the end of each pro15 gram year, each recipient shall certify to the Sec16 retary that it has complied with this section, and

17 shall include with the certification a description of

18 the sources and amounts of the matching funds.

19 (2) REDUCTION IN MATCHING REQUIRE20 MENT.—

21 (A) IN GENERAL.—The Secretary shall re22 duce the matching requirement under para23 graph (1) during a fiscal year by—

24 (i) 50 percent for a jurisdiction that

25 certifies that it is in fiscal distress; and
24

•S 2281 PCS

1 (ii) 100 percent for a jurisdiction that

2 certifies that it is in severe fiscal distress.

3 (B) DEFINITIONS.—For the purposes of

4 this subsection—

5 (i) the term ‘‘fiscal distress’’ means

6 an allocation unit of general local govern7 ment, Indian tribe, or Insular Area that

8 satisfies one of the distress criteria set

9 forth in subparagraph (C); and

10 (ii) the term ‘‘severe fiscal distress’’

11 means an allocation unit of general local

12 government, Indian tribe, or Insular Area

13 that satisfies both of the distress criteria

14 set forth in subparagraph (C).

15 (C) DISTRESS CRITERIA.—For an alloca16 tion unit of general local government, an Indian

17 tribe, or an Insular Area certifying that it is

18 distressed, the following criteria shall apply:

19 (i) POVERTY RATE.—The average

20 poverty rate in the jurisdiction for the cal21 endar year immediately preceding the year

22 in which its fiscal year begins was equal to

23 or greater than 125 percent of the average

24 national poverty rate during such calendar
25

•S 2281 PCS

1 year (as determined according to informa2 tion of the Bureau of the Census).

3 (ii) PER CAPITA INCOME.—The aver4 age per capita income in the jurisdiction

5 for the calendar year immediately preced6 ing the year in which its fiscal year begins

7 was less than 75 percent of the average

8 national per capita income during such cal9 endar year (as determined according to in10 formation of the Bureau of the Census).

11 (D) STATES.—In determining the degree

12 to which a State is in fiscal distress or severe

13 fiscal distress, the Secretary shall use the same

14 procedure used in accordance with section

15 220(d)(4) of the Cranston-Gonzalez National

16 Affordable Housing Act (42 U.S.C. 12750).

17 (E) WAIVER IN DISASTER AREAS.—If a re18 cipient (other than a State) is located in an

19 area in which a declaration of a disaster pursu20 ant to the Robert T. Stafford Disaster Relief

21 and Emergency Assistance Act is in effect for

22 any part of a fiscal year, the Secretary may re23 duce the matching requirement for that fiscal

24 year under paragraph (1) during that fiscal

25 year by not more than 100 percent.
26

•S 2281 PCS

1 (3) CALCULATION OF AMOUNTS.—In calculat2 ing the amount of matching funds required under

3 paragraph (1), a recipient may include—

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

5 source;

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

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

8 the program of the recipient;

9 (D) the value of the time and services con10 tributed by volunteers, at a rate determined by

11 the Secretary; and

12 (E) the proceeds from bond financing val13 idly issued by a State or unit of general local

14 government, agency, or instrumentality thereof,

15 or political subdivision thereof, and repayable

16 with revenues derived from a project assisted

17 under this title, but not more than 25 percent

18 of the contribution required under paragraph

19 (1) may be derived from this source.

20 (b) LIMITATION ON USE OF FUNDS.—No assistance

21 received under this title may be used to replace other

22 funds previously used, or designated for use, by the State,

23 State recipient, allocation unit of general local govern24 ment, Indian tribe, or Insular Area to assist homeless indi25 viduals and families.
27

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1 SEC. 108. ALLOCATION AND DISTRIBUTION OF FUNDS.

2 (a) INDIAN TRIBES AND INSULAR AREAS.—

3 (1) ALLOCATION.—For each fiscal year, the

4 Secretary shall allocate assistance under this title—

5 (A) to Indian tribes, in an amount equal to

6 1.0 percent of the total appropriation under

7 this title; and

8 (B) to Insular Areas, in an amount equal

9 to 0.20 percent of the total appropriation under

10 this title.

11 (2) DISTRIBUTION.—The Secretary shall pro12 vide for the distribution of amounts reserved under

13 this subsection for Indian tribes and Insular Areas

14 pursuant to specific criteria or a distribution which

15 shall be contained in a regulation issued by the Sec16 retary.

17 (b) STATES AND ALLOCATION UNITS OF GENERAL

18 LOCAL GOVERNMENT.—

19 (1) IN GENERAL.—For each fiscal year, of the

20 amounts that remain after amounts are reserved for

21 Indian tribes and Insular Areas under subsection

22 (a), and for activities under subsection (e), the Sec23 retary shall allocate assistance according to the for24 mula described in paragraph (2).

25 (2) FORMULA.—
28

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1 (A) ALLOCATION.—The Secretary shall al2 locate amounts for allocation units of general

3 local government and States in a manner that

4 ensures that the percentage of the total amount

5 available under this title for any fiscal year for

6 any State or allocation unit of general local gov7 ernment is equal to the percentage of the total

8 amount available for section 106 of the Hous9 ing and Community Development Act of 1974

10 for such prior fiscal year that is allocated for

11 such State or allocation unit of general local

12 government.

13 (B) REALLOCATION.—If under the alloca14 tion provisions applicable under this title, any

15 allocation unit of general local government

16 would receive a grant of less than 0.05 percent

17 of the amounts appropriated to carry out this

18 title for any fiscal year, such amount shall in19 stead be reallocated to the State in which such

20 allocation unit of general local government is lo21 cated for use under section 109(c).

22 (C) PRO RATA INCREASES AND DE23 CREASES.—

24 (i) INCREASE.—All amounts allocated

25 pursuant to the preceding subparagraphs
29

•S 2281 PCS

1 for allocation units of general local govern2 ment shall be increased on a pro rata basis

3 until the aggregate of such amounts equals

4 75 percent of the amounts appropriated

5 under this title for each year.

6 (ii) DECREASE.—All amounts allo7 cated pursuant to the preceding subpara8 graphs for States shall be decreased on a

9 pro rata basis until the aggregate of such

10 amounts equals 25 percent of the amounts

11 appropriated under this title for each year.

12 (3) MINIMUM GRANT AMOUNT.—Notwithstand13 ing the provisions of paragraph (2), a State or allo14 cation unit of general local government shall receive

15 no less funding for homeless assistance distributed

16 under a formula in 1996 than the average of the

17 amounts awarded annually to that jurisdiction from

18 funds appropriated for homeless assistance programs

19 administered by the Secretary during fiscal years

20 1987 through 1993.

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

22 an allocation unit of general local government is eligible

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

24 use in the jurisdiction, as provided by subsections (a) and

25 (b) of section 109, or that become available as a result
30

•S 2281 PCS

1 of actions under section 111(b), shall be added to amounts

2 available for allocation under section 108 for the succeed3 ing fiscal year.

4 (d) INSUFFICIENT APPROPRIATIONS.—

5 (1) COMPETITION.—If the amounts appro6 priated under section 104(b) for any fiscal year are

7 less than 50 percent of the amount authorized to be

8 appropriated under that subsection for that year, the

9 Secretary shall distribute the amounts appropriated

10 to States, units of general local government, Indian

11 tribes, Insular Areas, and private nonprofit organi12 zations on the basis of a competition.

13 (2) CRITERIA FOR AWARDING GRANTS.—The

14 criteria for awarding grants under paragraph (1)

15 shall include—

16 (A) the extent to which there is a need for

17 assistance for homeless individuals and families

18 in the jurisdiction;

19 (B) the extent to which the proposed ac20 tivities further the establishment and mainte21 nance of a comprehensive homeless assistance

22 system;

23 (C) the extent to which private nonprofit

24 organizations providing assistance to homeless

25 individuals and families in the jurisdiction have
31

•S 2281 PCS

1 been, and will be, included in planning for the

2 receipt of assistance under this title, and the

3 execution of the proposed activities;

4 (D) the capacity of the applicant to de5 velop and operate a project;

6 (E) the need for the type of project pro7 posed by the applicant in the area to be served;

8 (F) the extent to which the amount of as9 sistance to be provided under this title will be

10 supplemented with resources from other public

11 and private sources;

12 (G) the extent to which the applicant has

13 demonstrated coordination with other Federal,

14 State, local, private and other entities serving

15 homeless persons in the planning and operation

16 of the project; and

17 (H) such other criteria as the Secretary

18 deems appropriate to further the purposes of

19 this paragraph and this title.

20 (e) TECHNICAL ASSISTANCE AND DEMONSTRATION

21 AUTHORITY.—

22 (1) AUTHORIZATION.—The Secretary may

23 make grants under this subsection to—

24 (A) demonstrate innovative methods of cre25 ating comprehensive homeless assistance sys-
32

•S 2281 PCS

1 tems, including the coordination of efforts with

2 other levels of government and other service

3 providers and the filling of gaps in available

4 services and resources; and

5 (B) provide technical assistance, training,

6 startup funds, and other program funds (con7 sistent with the eligible activities set forth in

8 section 106) to support the creation of com9 prehensive homeless assistance systems and to

10 build nonprofit provider capacity in support of

11 such systems.

12 (2) SELECTION CRITERIA.—The Secretary shall

13 establish criteria for awarding grants under sub14 section (e)(1)(A), which shall include—

15 (A) the extent of homelessness in the juris16 diction;

17 (B) the extent to which the existing public

18 and private systems for homelessness preven19 tion, outreach, assessment, shelter, services,

20 transitional services, transitional housing, and

21 permanent housing available within the jurisdic22 tion would benefit from additional resources to

23 achieve a comprehensive approach to meeting

24 the needs of individuals and families who are
33

•S 2281 PCS

1 homeless or who are very low-income and at

2 risk of homelessness;

3 (C) the demonstrated commitment and ca4 pacity of the jurisdiction to work cooperatively

5 with the Secretary, nonprofit organizations,

6 foundations, other private entities, and the com7 munity to design and implement an initiative to

8 achieve the purposes of this subsection;

9 (D) the demonstrated commitment of non10 governmental organizations to commit financial

11 and other resources to a comprehensive home12 less assistance system in the jurisdiction;

13 (E) the commitment of the jurisdiction to

14 make necessary changes in policy and procedure

15 to provide flexibility and resources to implement

16 and sustain the initiative;

17 (F) geographic diversity in the distribution

18 of grants; and

19 (G) such other factors as the Secretary de20 termines to be appropriate.

21 (3) USE OF APPROPRIATED FUNDS.—The Sec22 retary may use not more than $50,000,000 of the

23 amounts appropriated to carry out subsection

24 (e)(1)(A) in fiscal year 1996. The Secretary may use

25 not more than $25,000,000 to carry out subsection
34

•S 2281 PCS

1 (e)(1)(B) in fiscal year 1996. The total amount pro2 vided to a single grant recipient under subsection

3 (e)(1)(A) may not exceed $5,000,000 in any fiscal

4 year.

5 SEC. 109. ADMINISTRATION OF PROGRAM.

6 (a) IN GENERAL.—The Secretary shall prescribe

7 such procedures and requirements as the Secretary deems

8 appropriate for administering grant amounts under this

9 title.

10 (b) ALLOCATION UNITS OF GENERAL LOCAL GOV11 ERNMENT, INDIAN TRIBES, AND INSULAR AREAS.—

12 (1) IN GENERAL.—Except as provided in para13 graphs (2) and (3), an allocation unit of general

14 local government, Indian tribe, or Insular Area shall

15 administer grant amounts received under section

16 108 for any fiscal year.

17 (2) AGENCIES AND ORGANIZATIONS DES18 IGNATED BY JURISDICTION.—

19 (A) DESIGNATION OF OTHER ENTITIES TO

20 ADMINISTER GRANT AMOUNTS.—An allocation

21 unit of general local government, Indian tribe,

22 or Insular Area may elect for any fiscal year to

23 designate a public agency or a private nonprofit

24 organization (or a consortium of such organiza-
35

•S 2281 PCS

1 tions) to administer grant amounts under sec2 tion 108 instead of the jurisdiction.

3 (B) EFFECT OF DESIGNATION.—The allo4 cation unit of general local government, Indian

5 tribe, or Insular Area shall remain the grantee

6 for purposes of this title. 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) ADMINISTRATION OF GRANT BY SEC11 RETARY.—If an allocation unit of general local gov12 ernment, Indian tribe, or Insular Area, or (if appro13 priate) a public agency or private nonprofit organi14 zation designated by the jurisdiction under para15 graph (2), does not receive a grant under section

16 108 for any fiscal year because of failure to meet the

17 application requirements of section 105, the Sec18 retary shall designate the State or a local private

19 nonprofit organization to administer the program or

20 distribute the funds to private nonprofit organiza21 tions within that jurisdiction on the basis of a com22 petition.

23 (c) STATES.—

24 (1) IN GENERAL.—Each State shall elect to ei25 ther—
36

•S 2281 PCS

1 (A) administer grant amounts received

2 under section 108, as provided by paragraphs

3 (2) and (3); or

4 (B) have the Secretary administer these

5 amounts instead of the State, as provided by

6 paragraph (4).

7 If a State elects to administer grant amounts under

8 subparagraph (A), the election shall be permanent

9 and final.

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

11 in paragraph (1)(A), the State—

12 (A) may use not more than 15 percent to

13 carry out its own homeless assistance program

14 under this title, except that these amounts may

15 only be used for eligible activities under section

16 106; and

17 (B) shall distribute the remaining amounts

18 to—

19 (i) State recipients for use under this

20 title; or

21 (ii) in the case of an area of the State

22 with significant homeless needs where no

23 State recipient is identified, directly to one

24 or more private nonprofit organizations

25 serving that area.
37

•S 2281 PCS

1 Not more than 20 percent of any amounts received

2 in a fiscal year by States may be used to carry out

3 activities in allocation units of general local govern4 ment.

5 (3) DISTRIBUTION OF AMOUNTS TO STATE RE6 CIPIENTS.—

7 (A) IN GENERAL.—

8 (i) OPTIONS FOR RECIPIENTS.—A

9 State distributing amounts to State recipi10 ents under paragraph (1)(A) shall, for

11 each fiscal year, afford each such recipient

12 the options of—

13 (I) administering the grant

14 amounts on its own behalf;

15 (II) designating a public agency

16 or a private nonprofit organization (as

17 provided by subsection (b)(2)) to ad18 minister the grant amounts instead of

19 the jurisdiction; or

20 (III) entering into an agreement

21 with the State, in consultation with

22 private nonprofit organizations provid23 ing assistance to homeless individuals

24 and families in the jurisdiction, under

25 which the State will administer the
38

•S 2281 PCS

1 grant amounts instead of the jurisdic2 tion.

3 (ii) EFFECT OF DESIGNATION.—A

4 State recipient designating an agency or

5 organization as provided by clause (i)(II),

6 or entering into an agreement with the

7 State under clause (i)(III), shall remain

8 the State recipient for purposes of this

9 title. The State may, at the request of the

10 State recipient, provide grant amounts di11 rectly to the agency or organization des12 ignated under clause (i)(II).

13 (B) APPLICATION.—(i) The State shall dis14 tribute amounts to State recipients (or to agen15 cies or organizations designated under subpara16 graph (A)(i)(II), as appropriate) on the basis of

17 an application containing such information as

18 the State may prescribe, except that each appli19 cation shall reflect the State’s application re20 quirements in section 105(d) and evidence an

21 intent to establish a comprehensive homeless as22 sistance system.

23 (ii) The State may waive the requirements

24 in clause (i) with respect to one or more pro-
39

•S 2281 PCS

1 posed activities, where the State determines

2 that—

3 (I) the activities are necessary to meet

4 the needs of homeless individuals and fam5 ilies within the jurisdiction; and

6 (II) a comprehensive homeless assist7 ance system is not necessary, due to the

8 nature and extent of homelessness in the

9 jurisdiction.

10 (C) PREFERENCE.—In selecting State re11 cipients and making awards under subpara12 graph (B), the State shall give preference to ap13 plications that demonstrate higher relative lev14 els of homeless need and fiscal distress.

15 (4) HUD ADMINISTRATION OF STATE PRO16 GRAM.—If a State elects to have the Secretary ad17 minister its grant amounts under section 107, as

18 provided by paragraph (1)(B), the Secretary may

19 distribute grant amounts within the State on a com20 petitive basis, using the criteria established in sec21 tion 107(d)(2), to—

22 (A) units of general local government;

23 (B) public agencies or private nonprofit

24 agencies designated by units of general local

25 government; or
40

•S 2281 PCS

1 (C) private nonprofit organizations.

2 (d) NONPROFIT HOMELESS PROVIDERS.—Each

3 grantee shall make available not less than 51 percent of

4 the grant amounts it receives for any fiscal year to private

5 nonprofit organizations that provide assistance to home6 less individuals and families to carry out activities under

7 this title. The Secretary may waive or reduce this require8 ment where a grantee can demonstrate that no private

9 nonprofit providers exist or where those private nonprofit

10 providers that do exist lack the capacity to address the

11 needs of the homeless population.

12 SEC. 110. CITIZEN PARTICIPATION.

13 (a) IN GENERAL.—Each recipient shall ensure that

14 citizens, and appropriate private nonprofit organizations

15 and other interested groups and entities, participate fully

16 in the development and carrying out of the program au17 thorized under this title. The Secretary shall prescribe

18 such requirements to carry out this section as the Sec19 retary deems appropriate, which shall include require20 ments applicable to the citizen participation provisions of

21 subsection (b), the local boards referred to in subsection

22 (c), and the requirements for States under provisions of

23 subsection (d) and the timing of, and sequence for, carry24 ing out the requirements of those subsections.
41

•S 2281 PCS

1 (b) SPECIFIC REQUIREMENTS FOR THE INVOLVE2 MENT OF CITIZENS AND OTHERS.—

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

4 (A) make available to its citizens, public

5 agencies, and other interested parties informa6 tion concerning the amount of assistance the ju7 risdiction expects to receive and the range of

8 activities that may be undertaken with the as9 sistance;

10 (B) publish the proposed application in a

11 manner that, in the determination of the Sec12 retary, affords affected citizens, public agencies,

13 and other interested parties a reasonable oppor14 tunity to examine its content and to submit

15 comments on it;

16 (C) hold one or more public hearings to ob17 tain the views of citizens, public agencies, and

18 other interested parties on the needs of home19 less individuals and families in the jurisdiction

20 at a time and a location that will ensure maxi21 mum potential participation; and

22 (D) provide citizens, public agencies, and

23 other interested parties with reasonable access

24 to records regarding any uses of any assistance
42

•S 2281 PCS

1 the recipient may have received during the pre2 ceding 5 years.

3 (2) NOTICE AND COMMENT.—Before submitting

4 any performance report under section 111(a) or sub5 stantial amendment to an application under section

6 105, a recipient shall provide citizens with reason7 able notice of, and opportunity to comment on, such

8 performance report or application before its submis9 sion.

10 (3) CONSIDERATION OF COMMENTS.—A recipi11 ent shall consider any comments or views of citizens

12 in preparing a final application, amendment to an

13 application or performance report for submission. A

14 summary of such comments or views shall be at15 tached when an application, amendment to an appli16 cation, or performance report is submitted. The sub17 mitted application, amendment, or report shall be

18 made available to the public.

19 (c) LOCAL BOARDS.—

20 (1) ESTABLISHMENT AND FUNCTION.—The

21 chief executive of each allocation unit of general

22 local government, Indian tribe, Insular Area, or

23 State recipient shall establish, select, and support a

24 local board, which shall assist the jurisdiction in—
43

•S 2281 PCS

1 (A) determining whether the grant should

2 be administered by the jurisdiction, a public

3 agency or private nonprofit organization, or the

4 State or the Secretary, as appropriate, under

5 subsection (b) and (c) of section 109;

6 (B) developing the application under sec7 tion 105;

8 (C) overseeing the activities carried out

9 with assistance under this title; and

10 (D) preparing the performance report

11 under section 111(a).

12 (2) COMPOSITION OF BOARD.—The composition

13 of each local board shall be as follows:

14 (A) MAJORITY OF BOARD.—Not less than

15 51 percent of its members shall represent the

16 following:

17 (i) Homeless individuals and families.

18 (ii) Homeless advocates.

19 (iii) Individuals and entities providing

20 assistance to homeless individuals and

21 families.

22 (B) REMAINDER OF BOARD.—The remain23 der of the board shall represent the following:

24 (i) The business community.

25 (ii) Neighborhood advocates.
44

•S 2281 PCS

1 (iii) Government officials.

2 (3) DISTRIBUTION OF MEMBERSHIP.—The

3 membership of each local board meeting the criteria

4 in paragraph (2)(A) shall have been nominated by

5 individuals and entities, other than a governmental

6 jurisdiction, that represent these groups. In selecting

7 a board, the chief executive officer of the jurisdiction

8 shall, to the maximum extent practicable, select local

9 board members who will improve access to a broad

10 range of services for homeless individuals and fami11 lies and who are sensitive to the varying needs of

12 homeless individuals and families. Each local board

13 shall include members who, to the maximum extent

14 practicable and consistent with local needs, represent

15 the different homeless subpopulations in that com16 munity, including veterans, the mentally ill, families

17 with children, young persons, battered spouses, vic18 tims of substance abuse, and persons with AIDS.

19 (4) REVIEW BY SECRETARY.—The Secretary

20 may waive the requirements of paragraphs (2) and

21 (3) if the jurisdiction has an existing local board

22 that substantially meets the requirements of such

23 paragraphs.
45

•S 2281 PCS

1 (d) REQUIREMENTS FOR THE SECRETARY AND

2 STATES DISTRIBUTING AMOUNTS TO STATE RECIPI3 ENTS.—

4 (1) STATE PROGRAMS.—The Secretary may

5 prescribe citizen participation requirements for

6 States, including a requirement for State advisory

7 boards. Such requirements shall be comparable (to

8 the extent appropriate) to those contained in the

9 preceding provisions of this section.

10 (2) The Secretary may prescribe citizen partici11 pation requirements where:

12 (A) A State or a private nonprofit organi13 zation is administering the grant amounts of an

14 allocation unit of general local government, as

15 provided by section 108(b)(3).

16 (B) The Secretary is distributing grant

17 amounts to State recipients, as provided by sec18 tion 108(c)(1)(B). Such requirements shall be

19 comparable (to the extent appropriate) to those

20 contained in the preceding provisions of this

21 section.

22 (3) LAWS INAPPLICABLE.—The following provi23 sions of law shall not apply with respect to the ac24 tions of the Secretary referred to in paragraph (2):

25 (A) The Federal Advisory Committee Act.
46

•S 2281 PCS

1 (B) Section 103 of the Department of

2 Housing and Urban Development Reform Act

3 of 1989.

4 The Secretary shall establish appropriate standards

5 under this paragraph to ensure the integrity of the

6 process for awarding assistance.

7 SEC. 111. REPORTS, REVIEWS, AND AUDITS.

8 (a) GRANTEE PERFORMANCE REPORT.—Each grant9 ee shall submit to the Secretary a performance and evalua10 tion report prepared by the State advisory board or the

11 local board concerning the use of funds made available

12 under this title. To the extent that the chief executive offi13 cer of the grantee has made changes to the report, the

14 submission shall also include the comments of the State

15 advisory board or local board. The report shall be submit16 ted at such time and contain such information as the Sec17 retary shall prescribe, and shall be made available to citi18 zens, public agencies, and other interested parties in the

19 jurisdiction of the grantee in sufficient time to permit the

20 citizens, public agencies, and other interested parties to

21 comment on the report before its submission.

22 (b) REVIEWS AND AUDITS.—

23 (1) IN GENERAL.—The Secretary shall, not less

24 than annually, make such reviews and audits as may

25 be necessary or appropriate to determine—
47

•S 2281 PCS

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

2 grantee referred to in subparagraph (B)),

3 whether the grantee—

4 (i) has carried out its activities in a

5 timely manner;

6 (ii) has made progress toward estab7 lishing and maintaining the comprehensive

8 homeless assistance system in conformity

9 with its application under this title; and

10 (iii) has carried out its activities and

11 certifications in accordance with the re12 quirements of this title and other applica13 ble laws; and

14 (B) in the case of States distributing grant

15 amounts to State recipients, whether the

16 State—

17 (i) has distributed amounts to State

18 recipients in a timely manner and in con19 formance with the method of distribution

20 described in its application;

21 (ii) has carried out its activities and

22 certifications in compliance with the re23 quirements of this title and other applica24 ble laws; and
48

•S 2281 PCS

1 (iii) has made such reviews and audits

2 of the State recipients as may be necessary

3 or appropriate to determine whether they

4 have satisfied the applicable performance

5 criteria contained in subparagraph (A).

6 (2) ADJUSTMENTS.—The Secretary may reduce

7 or condition a grant if the Secretary determines that

8 the grantee has failed to substantially comply with

9 the requirements of this title. With respect to assist10 ance made available for State recipients, the Sec11 retary may reduce or condition such assistance, or

12 take other action as appropriate in accordance with

13 the Secretary’s reviews and audits under this sub14 section, except that funds already properly expended

15 on eligible activities under this title shall not be re16 captured or deducted from future assistance to such

17 recipients. No assistance shall be reduced or condi18 tioned unless the recipient has had reasonable notice

19 and opportunity for a hearing.

20 SEC. 112. NONDISCRIMINATION IN PROGRAMS AND ACTIVI21 TIES.

22 (a) IN GENERAL.—No person in the United States

23 shall, on the ground of race, color, national origin, reli24 gion, or sex, be excluded from participation in, be denied

25 the benefits of, or be subjected to discrimination under
49

•S 2281 PCS

1 any program or activity funded in whole or in part with

2 funds made available under this title. Any prohibition

3 against discrimination on the basis of age under the Age

4 Discrimination Act of 1975 or with respect to an otherwise

5 qualified handicapped individual, as provided in section

6 504 of the Rehabilitation Act of 1973, shall also apply

7 to any such program or activity.

8 (b) LIMITATIONS.—

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

10 an Indian tribe under this title unless the applicant

11 provides satisfactory assurances that its program

12 will be conducted and administered in conformity

13 with title II of Public Law 90–284. The Secretary

14 may waive, in connection with grants to Indian

15 tribes, the provisions of subsection (a).

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

17 title relating to discrimination on the basis of race

18 shall apply to the provision of assistance to the Ha19 waiian Home Lands.

20 SEC. 113. CONSULTATION.

21 In carrying out the provisions of this title, including

22 the issuance of regulations, the Secretary shall consult

23 with other Federal departments and agencies administer24 ing programs affecting homeless individuals and families.
50

•S 2281 PCS

1 SEC. 114. RECORDS, REPORTS, AND AUDITS.

2 (a) KEEPING OF RECORDS.—Any recipient shall keep

3 such records as may be reasonably necessary—

4 (1) to disclose the amounts and the disposition

5 of the grant amounts, including types of activities

6 funded and the nature of populations served with

7 these funds; and

8 (2) to ensure compliance with the requirements

9 of this title.

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

11 The Secretary shall have access for the purpose of audit

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

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

14 are pertinent to grant amounts received in connection with

15 this title.

16 (c) ACCESS TO DOCUMENTS BY THE COMPTROLLER

17 GENERAL.—The Comptroller General of the United

18 States, or any duly authorized representative of the Comp19 troller General, shall have access for the purpose of audit

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

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

22 are pertinent to grant amounts received in connection with

23 this title.

24 SEC. 115. ANNUAL REPORT TO CONGRESS.

25 The Secretary shall submit a report to the Congress

26 annually, summarizing the activities carried out under this
51

•S 2281 PCS

1 title, and setting forth the findings, conclusions, and rec2 ommendations of the Secretary as a result of the activities.

3 The report shall be submitted not later than 4 months

4 after the end of each fiscal year (except that for fiscal

5 year 1996, the report shall be submitted not later than

6 6 months after the end of the fiscal year).

7 SEC. 116. IMPLEMENTATION.

8 (a) NOTICE AND COMMENT.—The Secretary shall, by

9 proposed rule published for notice and comment in the

10 Federal Register, establish such requirements as may be

11 necessary to carry out the provisions of this title.

12 (b) NOTICES OF FUNDING AVAILABILITY.—The Sec13 retary shall publish a notice of funding availability not

14 later than 60 days after funds are appropriated to carry

15 out this title.

16 SEC. 117. TRANSITION PROVISIONS.

17 (a) FISCAL YEAR 1995.—

18 (1) ACTIVITIES UNDER TITLE IV OF THE STEW19 ART B. MCKINNEY HOMELESS ASSISTANCE ACT.—

20 There are authorized to be appropriated for fiscal

21 year 1995 to carry out title IV of the Stewart B.

22 McKinney Homeless Assistance Act—

23 (A) $120,000,000 for the activities under

24 subtitle B;
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1 (B) $705,000,000 for the activities under

2 subtitle C; and

3 (C) $100,000,000 for the activities under

4 section 441.

5 (2) TECHNICAL ASSISTANCE AND DEMONSTRA6 TIONS.—There are authorized to be appropriated for

7 fiscal year 1995—

8 (A) $50,000,000 for activities authorized

9 under section 107(e)(1)(A); and

10 (B) $25,000,000 for activities authorized

11 under section 107(e)(1)(B).

12 (3) PREFERENCE.—Except for grants provided

13 under subtitle B and notwithstanding any other pro14 vision of law, in making grants with funds appro15 priated under this subsection for fiscal year 1995,

16 the Secretary shall give preference to applicants that

17 have established a local board, as described in sec18 tion 110, and that have developed a comprehensive

19 homeless assistance system, consistent with the pur20 poses of this title. The Secretary shall review care21 fully all grant applications from underserved areas

22 and rural areas with significant populations of

23 homeless individuals and families.

24 (b) REPEALS.—
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1 (1) STEWART B. MCKINNEY HOMELESS ASSIST2 ANCE ACT.—Title IV of the Stewart B. McKinney

3 Homeless Assistance Act (42 U.S.C. 11361 et seq.)

4 is amended by striking subtitles D, F, and G.

5 (2) INNOVATIVE HOMELESS INITIATIVES DEM6 ONSTRATION PROGRAM.—Section 2 of the HUD

7 Demonstration Act of 1993 (42 U.S.C. 11301 note)

8 is hereby repealed.

9 (c) REPEAL OF EXISTING PROGRAMS.—Effective Oc10 tober 1, 1995, title IV of the Stewart B. McKinney Home11 less Assistance Act (42 U.S.C. 11361 et seq.) is amended

12 by striking—

13 (1) subtitles B and C; and

14 (2) section 441.

15 (d) SAVINGS PROVISION.—The provisions of law re16 pealed by subsections (b) and (c) shall continue to apply

17 to grants and contracts entered into under such provisions

18 prior to the date of enactment of this Act.
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1 TITLE II—PUBLIC AND INDIAN

2 HOUSING

3 Subtitle A—Enhanced Flexibility

4 for Public Housing Agencies

5 SEC. 201. PUBLIC HOUSING DIRECT LOANS.

6 Title I of the United States Housing Act of 1937 (42

7 U.S.C. 1437 et seq.) is amended by adding at the end

8 the following new section:

9 ‘‘SEC. 27. PUBLIC HOUSING DIRECT LOANS.

10 ‘‘(a) GENERAL AUTHORIZATION.—The Secretary

11 may, upon such terms and conditions as the Secretary

12 may prescribe, make loans to public housing agencies (or

13 partnerships including these agencies) eligible for com14 prehensive modernization grants under section 14.

15 ‘‘(b) TERMS AND CONDITIONS.—

16 ‘‘(1) CRITERIA FOR APPROVAL.—In approving

17 an application under this section, the Secretary may

18 consider—

19 ‘‘(A) the ability of the public housing agen20 cy to use the proceeds of the loan effectively, di21 rectly or through contract management;

22 ‘‘(B) the adequacy of remaining future al23 locations in providing repairs, replacements,

24 and improvements that will be needed as a re-
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1 sult of usage and depreciation of existing

2 projects over the loan period; and

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

4 may specify.

5 ‘‘(2) SPECIAL CONDITIONS.—Notwithstanding

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

7 under this section only if the Secretary determines

8 that—

9 ‘‘(A) the public housing agency has an ac10 ceptable rate of obligation of funds under sec11 tion 14; or

12 ‘‘(B) the public housing agency agrees to

13 administer the loan proceeds through a contract

14 with a management company with dem15 onstrated expertise in managing development

16 projects.

17 ‘‘(3) TERM OF LOAN.—Loans under this section

18 shall be for a term consistent with the term of other

19 private debt on the project, but not to exceed 30

20 years.

21 ‘‘(4) INTEREST RATE.—Loans under this sec22 tion shall bear interest at a rate equal to the average

23 current market yields on all outstanding marketable

24 obligations of the United States with remaining

25 terms to maturities comparable to the average matu-
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1 rities of loans under this section, plus amounts suffi2 cient to cover servicing costs, plus 150 basis points.

3 ‘‘(5) SUBORDINATION.—Loans under this sec4 tion may be subordinated to other debt contracted

5 by the public housing agency or the partnership in6 cluding the agency.

7 ‘‘(6) SUBSIDY AMOUNT.—Based on the public

8 housing agency’s pledged sources of repayments (in9 cluding rents and other anticipated income streams),

10 the Director of the Office of Management and Budg11 et, in consultation with the Secretary, shall establish

12 a subsidy cost, if any, as defined by the Federal

13 Credit Reform Act of 1990, for each loan to the

14 agency.

15 ‘‘(7) PREMIUM AMOUNT.—A premium amount

16 shall be assessed to cover the subsidy amount associ17 ated with each loan so that the resulting net subsidy

18 cost to the Federal Government is zero. This pre19 mium shall be paid from the amount the public

20 housing agency receives under the comprehensive

21 grant program under section 14 in the year the loan

22 is originated.

23 ‘‘(c) AUTHORIZATION.—To the extent provided in ap24 propriations Acts, the Secretary may enter into commit25 ments to make loans under this section with an aggregate
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1 principal amount of $2,000,000,000 for each of the fiscal

2 years 1995 and 1996.

3 ‘‘(d) LOAN LIMIT.—The total outstanding principal

4 amount of loans under this section made to a public hous5 ing agency (excluding any amount repaid) may not exceed

6 5 times the amount of the public housing agency’s latest

7 comprehensive modernization grant under section 14.

8 ‘‘(e) USE OF COMPREHENSIVE MODERNIZATION

9 GRANTS.—Notwithstanding any other provision of this

10 title, comprehensive modernization grants or allocations

11 under this title to the public housing agency (including

12 program income derived therefrom) may be used by the

13 public housing agency or by the Secretary for the payment

14 of premiums due on any loan under this section.

15 ‘‘(f) PROGRAM REQUIREMENTS.—To assure the full

16 repayment of a loan made under this section and as a

17 prior condition for receiving the loan, the Secretary shall

18 require the public housing agency (or the partnership in19 cluding the agency) to—

20 ‘‘(1) enter into a contract for repayment of the

21 loan and the other specified charges;

22 ‘‘(2) pledge financial resources, including rental

23 and other income, for repayment of the loan; and

24 ‘‘(3) furnish such other security as may be ap25 propriate, including the land, the units financed with
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1 the loan, public housing units in the project financed

2 by the loan, or other land or housing owned by the

3 agency or the proceeds of disposition thereof.

4 ‘‘(g) EQUITY REQUIREMENTS.—The Secretary shall

5 require the public housing agency (or the partnership in6 cluding the agency) to contribute 30 percent equity to any

7 project financed with a loan under this section. For the

8 purpose of this subsection, the term ‘equity’ includes a

9 contribution made from Federal or non-Federal sources,

10 the value of land donated by the public housing agency

11 or the local jurisdiction, and the value of units developed

12 as part of the project using funds under section 5(a)(2),

13 section 14, or section 24.

14 ‘‘(h) PROGRAM ADMINISTRATION.—If the Secretary

15 finds that 50 percent of the annual loan authority has

16 been committed, or public housing agencies have applied

17 for such commitments, the Secretary may impose limita18 tions on the amount of loans any public housing agency

19 may receive in any fiscal year.

20 ‘‘(i) TRAINING AND INFORMATION.—The Secretary

21 may carry out training and information collection and dis22 semination activities in support of this section using funds

23 otherwise set aside for technical assistance under section

24 14.
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1 ‘‘(j) AFFORDABILITY.—The public housing agency

2 shall establish rents for units developed with the proceeds

3 of a loan under this section at a level that is affordable

4 for families with incomes that do not exceed 80 percent

5 of the median income for the area or other applicable limi6 tation on rents.’’.

7 SEC. 202. USE OF MODERNIZATION FUNDS FOR REPLACE8 MENT HOUSING.

9 Section 14 of the United States Housing Act of 1937

10 (42 U.S.C. 1437l) is amended by adding at the end the

11 following new subsection:

12 ‘‘(q) USE OF MODERNIZATION FUNDS FOR RE13 PLACEMENT HOUSING.—A public housing agency may use

14 assistance under this section for the development or acqui15 sition of additional housing under this title, in accordance

16 with requirements applicable to the development or acqui17 sition of public housing, to provide replacement housing

18 as required by section 18 if—

19 ‘‘(1) the public housing agency has developed a

20 plan that balances development activities with ongo21 ing needs under the modernization program;

22 ‘‘(2) the total amount of the public housing

23 agency’s annual grant under this section that is used

24 for replacement housing under this subsection does

25 not exceed 50 percent; and
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1 ‘‘(3) the development of housing under this sub2 section is justifiable based on the relative long-term

3 cost of development to modernization and other fac4 tors as determined by the Secretary, including

5 project redesign, reducing population densities, and

6 the remaining useful life of the existing structure.’’.

7 SEC. 203. USE OF PUBLIC-PRIVATE PARTNERSHIPS IN MOD8 ERNIZING PUBLIC HOUSING.

9 Section 14(c)(1) of the United States Housing Act

10 of 1937 (42 U.S.C. 1437l(c)(1)) is amended by inserting

11 before the semicolon the following: ‘‘or, as determined by

12 the Secretary, controlled by public housing agencies’’.

13 SEC. 204. REPORT.

14 Not later than 2 years after the date of enactment

15 of this Act, the Secretary shall submit to the Congress

16 a report detailing the effects of the amendments made by

17 sections 201, 202, and 203, including—

18 (1) activities carried out using the authorities

19 provided in such amendments;

20 (2) activities carried out with assistance pro21 vided under section 14(c)(1) of the United States

22 Housing Act of 1937;

23 (3) the amount of public and private investment

24 being committed to modernization and replacement

25 housing; and
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1 (4) the number of units assisted under section

2 14(c)(1) of the United States Housing Act of 1937

3 and the cost per unit.

4 SEC. 205. MODIFICATION OF THE EARLY CHILDHOOD DE5 VELOPMENT PROGRAM.

6 Section 222 of the Housing and Urban-Rural Recov7 ery Act of 1983 (12 U.S.C. 1701z–6 note) is amended—

8 (1) by striking the section heading and insert9 ing the following:

10 ‘‘EARLY CHILDHOOD DEVELOPMENT PROGRAMS FOR

11 PUBLIC HOUSING RESIDENTS AND HOMELESS FAMILIES’’;

12 (2) in subsection (a)(1), by inserting before the

13 period the following: ‘‘and for homeless families with

14 children, as defined in section 103 of the Stewart B.

15 McKinney Homeless Housing Assistance Reorga16 nization Act of 1994’’;

17 (3) in subsection (b)(1), by inserting before the

18 semicolon the following: ‘‘, except that the Secretary

19 may make a grant to provide additional assistance

20 for an existing child care center assisted under this

21 section or to expand an existing child care center re22 gardless of whether or not such center was pre23 viously assisted under this section’’;

24 (4) in subsection (c)—

25 (A) by redesignating paragraphs (2) and

26 (3) as paragraphs (3) and (4), respectively; and
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1 (B) by inserting after paragraph (1) the

2 following new paragraph:

3 ‘‘(2) take into account the proximity of facilities

4 for homeless families to the proposed site at which

5 the services are to be provided;’’; and

6 (5) in subsection (g), by striking the first 2 sen7 tences and inserting the following: ‘‘There are au8 thorized to be appropriated to carry out this section

9 $15,000,000 for fiscal year 1995 and $15,450,000

10 for fiscal year 1996.’’.

11 SEC. 206. ENTREPRENEURIAL PHAS AND RMCS.

12 (a) AUTHORIZATION OF DEMONSTRATIONS.—

13 (1) IN GENERAL.—The Secretary may author14 ize public housing agencies and resident manage15 ment corporations to conduct demonstrations that—

16 (A) test the extent to which aspects of the

17 public housing program may be exempt from

18 certain statutory requirements while continuing

19 to serve eligible families; and

20 (B) permit agencies and resident manage21 ment corporations to set policies for the oper22 ation, maintenance, management, and develop23 ment (including modernization) of one or more

24 projects, without regard to the requirements ap-
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1 plicable to public housing in the United States

2 Housing Act of 1937.

3 (2) APPLICABILITY OF STATE AND LOCAL

4 LAW.—In establishing policies under paragraph

5 (1)(B), agencies and resident management corpora6 tions shall be bound by any applicable State or local

7 law.

8 (3) TERM.—A demonstration may be approved

9 for a term of not more than 5 years.

10 (b) EXPEDITED WAIVERS AND DEREGULATION.—

11 The Secretary shall establish a system for expedited waiv12 ers of regulations for public housing agencies and resident

13 management corporations selected under this section.

14 (c) SELECTION OF AGENCIES AND RMCS.—The Sec15 retary may select not more than 25 public housing agen16 cies or resident management corporations (or a combina17 tion of both) to carry out demonstrations under this sec18 tion. The Secretary shall select agencies based on selection

19 criteria including such factors as—

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

21 (2) the need for a range of types of public hous22 ing agencies and resident management corporations;

23 and

24 (3) the potential effects and benefits the vari25 ations proposed by the agency or resident manage-
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1 ment corporation could have on the public housing

2 program if the variations were adopted for the whole

3 program.

4 (d) REQUIREMENTS FOR DEMONSTRATIONS.—Each

5 demonstration under this section—

6 (1) shall be approved by the Secretary;

7 (2) taken as a whole over the life of the dem8 onstration, shall not result in higher net costs to the

9 Federal Government;

10 (3) shall be consistent with the overall purposes

11 of the public housing program;

12 (4) shall be evaluated by an independent party;

13 and

14 (5) shall be consistent with the Fair Housing

15 Act, title VI of the Civil Rights Act of 1964, section

16 504 of the Rehabilitation Act of 1973, the Age Dis17 crimination Act of 1975, and the National Environ18 mental Policy Act of 1969.

19 (e) ADDITIONAL REQUIREMENTS.—In approving a

20 demonstration under this section, the Secretary may im21 pose such requirements as the Secretary considers to be

22 appropriate to further the purposes of the demonstration.

23 (f) REPORTS.—

24 (1) ANNUAL PROGRESS REPORTS.—For each

25 demonstration under this section, the public housing
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1 agency or resident management corporation carrying

2 out the demonstration shall submit an annual

3 progress report to the Secretary.

4 (2) REPORTS TO CONGRESS.—Not later than 1

5 year after the date on which each demonstration is

6 completed, the Secretary shall submit a report to the

7 Congress evaluating the results of the demonstration

8 and making any recommendations for legislation.

9 (g) DEFINITIONS.—For purposes of this section, the

10 following definitions shall apply:

11 (1) PUBLIC HOUSING AGENCY.—The term

12 ‘‘public housing agency’’ or ‘‘agency’’ means a public

13 housing agency, as defined in section 3(b)(6) of the

14 United States Housing Act of 1937, and includes

15 Indian housing authorities.

16 (2) RESIDENT MANAGEMENT CORPORATION.—

17 ‘‘Resident management corporation’’ means a resi18 dent management corporation established in accord19 ance with requirements of the Secretary under sec20 tion 20 of the United States Housing Act of 1937.

21 SEC. 207. DISALLOWANCE OF EARNED INCOME FOR RESI22 DENTS WHO OBTAIN EMPLOYMENT.

23 (a) DISALLOWANCE OF EARNED INCOME FROM PUB24 LIC HOUSING RENT DETERMINATIONS.—
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1 (1) IN GENERAL.—Section 3 of the United

2 States Housing Act of 1937 (42 U.S.C. 1437a) is

3 amended—

4 (A) by striking the undesignated para5 graph at the end of subsection (c)(3) (as added

6 by section 515(b) of Public Law 101–625); and

7 (B) by adding at the end the following new

8 subsection:

9 ‘‘(d) DISALLOWANCE OF EARNED INCOME FROM

10 PUBLIC HOUSING RENT DETERMINATIONS.—

11 ‘‘(1) IN GENERAL.—Notwithstanding any other

12 provision of law, the rent payable under subsection

13 (a) by a family—

14 ‘‘(A) that—

15 ‘‘(i) occupies a unit in a public hous16 ing project; or

17 ‘‘(ii) receives assistance under section

18 8; and

19 ‘‘(B) whose income increases as a result of

20 employment of a member of the family who was

21 previously unemployed for 1 or more years (in22 cluding a family whose income increases as a

23 result of the participation of a family member

24 in the Family Self-Sufficiency Program or other

25 job training program);
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1 may not be increased for a period of 18 months, be2 ginning with the commencement of employment as a

3 result of the increased income due to such employ4 ment.

5 ‘‘(2) TEN PERCENT LIMITATION.—After the ex6 piration of the 18-month period referred to in para7 graph (1), rent increases due to the continued em8 ployment of such a family member shall be not more

9 than 10 percent per year.

10 ‘‘(3) OVERALL LIMITATION.—Rent shall not ex11 ceed the amount determined under subsection (a).’’.

12 (2) APPLICABILITY OF AMENDMENT.—

13 (A) PUBLIC HOUSING.—Notwithstanding

14 the amendment made by paragraph (1), any

15 resident of public housing participating in the

16 program under the authority contained in the

17 undesignated paragraph at the end of section

18 3(c)(3) of the United States Housing Act of

19 1937, as such paragraph existed before the date

20 of enactment of this Act, shall continue to be

21 governed by such authority.

22 (B) SECTION 8.—The amendment made by

23 paragraph (1) shall apply to assistance provided

24 under section 8 of the United States Housing
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1 Act of 1937 with funds appropriated on or after

2 October 1, 1994.

3 (b) REPEAL.—Section 957 of the Cranston-Gonzalez

4 National Affordable Housing Act (42 U.S.C. 12714) is

5 hereby repealed.

6 SEC. 208. CEILING RENTS BASED ON REASONABLE RENTAL

7 VALUE.

8 (a) RENTAL PAYMENTS.—Section 3(a)(2)(A)(iii) of

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

10 1437a(a)(2)(A)(iii)) is amended to read as follows:

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

12 rental value of the unit, as determined by

13 the Secretary.’’.

14 (b) REGULATIONS.—

15 (1) IN GENERAL.—The Secretary shall, by reg16 ulation, after notice and an opportunity for public

17 comment, establish such requirements as may be

18 necessary to carry out the provisions of section

19 3(a)(2)(A) of the United States Housing Act of

20 1937, as amended by subsection (a).

21 (2) TRANSITION RULE.—Prior to the issuance

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

23 housing agency may implement ceiling rents which

24 shall be—
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1 (A) determined in accordance with section

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

3 1937, as such section existed before the date of

4 enactment of this Act; or

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

6 paid for a unit of comparable size by tenants in

7 the same project or a group of comparable

8 projects totaling 50 units or more.

9 SEC. 209. AUTHORIZATION TO SELL PUBLIC HOUSING TO

10 NONPROFIT ORGANIZATIONS.

11 The first sentence of section 5(h) of the United

12 States Housing Act of 1937 (42 U.S.C. 1437c(h)) is

13 amended by striking ‘‘lower income tenants’’ and inserting

14 ‘‘low-income families or to nonprofit organizations for re15 sale to low-income families’’.

16 SEC. 210. WORKING FAMILIES IN PUBLIC HOUSING.

17 Section 16 of the United States Housing Act of 1937

18 (42 U.S.C. 1437n) is amended—

19 (1) in subsection (a), by striking ‘‘25’’ and in20 serting ‘‘50’’; and

21 (2) in subsection (b)(2), by striking ‘‘25’’ the

22 first place it appears and inserting ‘‘50’’.
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1 Subtitle B—Severely Distressed

2 Public Housing Program

3 SEC. 211. REVITALIZATION OF SEVERELY DISTRESSED PUB4 LIC HOUSING.

5 (a) SEVERELY DISTRESSED PUBLIC HOUSING.—Sec6 tion 24 of the United States Housing Act of 1937 (42

7 U.S.C. 1437v) is amended as follows:

8 (1) DESIGNATION OF ELIGIBLE PROJECTS.—

9 (A) Subsection (b) is amended to read as

10 follows:

11 ‘‘(b) [RESERVED].’’.

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

13 and paragraphs (3) and (4) of subsection (i)

14 are redesignated as paragraphs (2) and (3), re15 spectively.

16 (2) INCREASE PLANNING GRANT DOLLAR

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

18 ‘‘$200,000’’ and inserting ‘‘$500,000’’.

19 (3) PLANNING GRANT ELIGIBLE ACTIVITIES.—

20 Subsection (c)(3) is amended—

21 (A) in subparagraph (G), by striking ‘‘de22 signing a suitable replacement housing plan’’

23 and inserting ‘‘designing suitable relocation and

24 replacement housing plans,’’;
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1 (B) in subparagraph (H), by striking

2 ‘‘and’’ at the end;

3 (C) in subparagraph (I), by striking the

4 period at the end and inserting ‘‘; and’’; and

5 (D) by adding at the end the following new

6 subparagraph:

7 ‘‘(J) planning for community service and

8 support service activities to be carried out by

9 the public housing agency, residents, members

10 of the community, and other persons and orga11 nizations willing to contribute to the social, eco12 nomic, or physical improvement of the commu13 nity (community service is a required element of

14 the revitalization program).’’.

15 (4) PLANNING GRANT APPLICATION; COMMU16 NITY SERVICE.—Subsection (c)(4) is amended—

17 (A) in subparagraph (D), by striking

18 ‘‘and’’ at the end;

19 (B) in subparagraph (E), by striking the

20 period at the end and inserting ‘‘; and’’; and

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

22 subparagraph:

23 ‘‘(F) a description of the community serv24 ice and support service planning activities to be

25 carried out by the public housing agency, resi-
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1 dents, members of the community, and other

2 persons and organizations willing to contribute

3 to the social, economic, or physical improvement

4 of the community.’’.

5 (5) PLANNING GRANT SELECTION CRITERIA:

6 NATIONAL GEOGRAPHIC DIVERSITY.—Subsection

7 (c)(5) is amended—

8 (A) in subparagraph (F), by inserting ‘‘,

9 taking into account the condition of the stock

10 of the public housing agency as a whole’’ before

11 the semicolon;

12 (B) by striking subparagraph (E) and re13 designating subparagraphs (F) and (G) as sub14 paragraphs (E) and (F), respectively; and

15 (C) by adding at the end the following

16 flush sentence:

17 ‘‘In making grants under this subsection, the Sec18 retary may select a lower-rated, approvable applica19 tion over a higher-rated application to increase the

20 national geographic diversity among applications ap21 proved under this section.’’.

22 (6) APPROVAL OF PROGRAMS OF COMMUNITY

23 SERVICE ACTIVITIES BY THE CORPORATION FOR NA24 TIONAL AND COMMUNITY SERVICE.—
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1 (A) PLANNING GRANT APPLICATIONS.—

2 Subsection (c)(6) is amended by adding at the

3 end the following: ‘‘The Secretary may not ap4 prove an application under this subsection un5 less the Corporation for National and Commu6 nity Service has approved the proposed program

7 of community service planning activities.’’.

8 (B) IMPLEMENTATION GRANT APPLICA9 TIONS.—Subsection (d)(5) is amended by in10 serting at the end the following: ‘‘The Secretary

11 may not approve an application under this sub12 section unless the Corporation for National and

13 Community Service has approved the proposed

14 program of community service activities.’’.

15 (7) IMPLEMENTATION GRANT ELIGIBLE ACTIVI16 TIES.—Subsection (d)(2) is amended—

17 (A) in subparagraph (H), by striking

18 ‘‘and’’ at the end;

19 (B) in subparagraph (I)—

20 (i) by inserting before the period the

21 following: ‘‘, except that an amount equal

22 to 15 percent of the amount of any grant

23 under this subsection used for support

24 services shall be contributed from non-Fed25 eral sources (which contribution shall be in
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1 the form of cash, administrative costs, and

2 the reasonable value of in-kind contribu3 tions)’’; and

4 (ii) by striking the period at the end

5 and inserting ‘‘; and’’; and

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

7 subparagraphs:

8 ‘‘(J) community service and support serv9 ice activities to be carried out by the public

10 housing agency, residents, members of the com11 munity, and other persons willing to contribute

12 to the social, economic, or physical improvement

13 of the community (community service is a re14 quired element of the revitalization program);

15 and

16 ‘‘(K) replacement of public housing

17 units.’’.

18 (8) IMPLEMENTATION GRANT APPLICATIONS:

19 COMMUNITY SERVICE.—Subsection (d)(3) is amend20 ed—

21 (A) in subparagraph (D), by striking

22 ‘‘and’’ at the end;

23 (B) in subparagraph (E), by striking the

24 period at the end and inserting ‘‘; and’’; and
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1 (C) by adding at the end the following new

2 subparagraph:

3 ‘‘(F) a description of the community serv4 ice and support activities to be carried out by

5 the public housing agency, residents, members

6 of the community, and other persons and orga7 nizations willing to contribute to the social, eco8 nomic, or physical improvement of the commu9 nity.’’.

10 (9) IMPLEMENTATION GRANT SELECTION CRI11 TERIA: NATIONAL GEOGRAPHIC DIVERSITY.—Sub12 section (d)(4) is amended—

13 (A) in subparagraph (D), by inserting

14 ‘‘(with assistance from the Department of

15 Housing and Urban Development if necessary)’’

16 after ‘‘applicant’’;

17 (B) by striking subparagraph (E) and re18 designating subparagraphs (F) and (G) as sub19 paragraphs (E) and (F), respectively;

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

21 by inserting ‘‘, taking into account the condi22 tion of the applicant’s stock as a whole’’ before

23 the semicolon; and

24 (D) by adding at the end the following

25 flush sentence: ‘‘In making grants under this
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1 subsection, the Secretary may select a lower

2 rated, approvable application over a higher

3 rated application to increase the national geo4 graphic diversity among applications approved

5 under this section.’’.

6 (10) EXCEPTIONS TO GENERAL PROGRAM RE7 QUIREMENTS.—Subsection (e) is amended by adding

8 at the end the following new paragraph:

9 ‘‘(3) DEMOLITION AND REPLACEMENT.—

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

11 other applicable law or regulation, a revitaliza12 tion plan under this section may include demoli13 tion and replacement—

14 ‘‘(i) onsite;

15 ‘‘(ii) in the same neighborhood if the

16 number of replacement units provided in

17 the same neighborhood is fewer than the

18 number of units demolished as a result of

19 the revitalization effort; or

20 ‘‘(iii) on any other site in an area in

21 which the concentration of minority indi22 viduals or of individuals with incomes

23 below the poverty level is materially less

24 than that of the units being replaced.
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1 ‘‘(B) TENANT-BASED ASSISTANCE.—Not2 withstanding the limitations contained in sub3 paragraph (A)(v) or (C) of section 18(b)(3), a

4 public housing agency may replace not more

5 than one-third of the units demolished or dis6 posed of through a revitalization project under

7 this section with tenant-based assistance.’’.

8 (11) DEFINITIONS.—

9 (A) SEVERELY DISTRESSED PUBLIC HOUS10 ING.—Subsection (h)(5) is amended to read as

11 follows:

12 ‘‘(5) SEVERELY DISTRESSED PUBLIC HOUS13 ING.—The term ‘severely distressed public housing’

14 means a public housing development or a building in

15 a development that—

16 ‘‘(A) requires major redesign, reconstruc17 tion, redevelopment, or partial or total demoli18 tion to correct serious deficiencies in the origi19 nal design (including inappropriately high popu20 lation density), deferred maintenance, physical

21 deterioration or obsolescence of major systems,

22 and other deficiencies in the physical plant of

23 the development; and

24 ‘‘(B) either—
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1 ‘‘(i)(I) is occupied predominantly by

2 families with children that have extremely

3 low incomes, high rates of unemployment,

4 and extensive dependency on various forms

5 of public assistance; and

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

7 criminal activity (including drug-related

8 criminal activity; or

9 ‘‘(ii) that has a vacancy rate, as deter10 mined by the Secretary, of 50 percent or

11 more;

12 ‘‘(C) cannot be revitalized through assist13 ance under other programs, such as the pro14 grams under sections 9 and 14, or through

15 other administrative means because of the inad16 equacy of available funds; and

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

18 the building is, in the Secretary’s determina19 tion, sufficiently separable from the remainder

20 of the project to make use of the building fea21 sible for purposes of this section.’’.

22 (B) COMMUNITY SERVICE.—Subsection (h)

23 is amended by adding at the end the following

24 new paragraphs:
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1 ‘‘(6) COMMUNITY SERVICE.—The term ‘commu2 nity service’ means services provided on a volunteer

3 basis or limited stipend basis for the social, eco4 nomic, or physical improvement of the community to

5 be served, including the opportunity for the upward

6 mobility of participants providing the community

7 service, through completion of education require8 ments, job training, or alternative methods of devel9 oping skills and job readiness.

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

11 services’ includes all activities designed to lead to12 ward upward mobility, self-sufficiency, and improved

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

14 as literacy training, job training, day care, and eco15 nomic development. Such activities may allow for the

16 participation of residents of the neighborhood.’’.

17 (12) TECHNICAL ASSISTANCE.—Section 24 is

18 amended by adding at the end the following new

19 subsection:

20 ‘‘(j) TECHNICAL ASSISTANCE.—The Secretary may

21 use not more than 0.5 percent of amounts appropriated

22 for assistance under this section to provide technical as23 sistance to grantees. Such technical assistance may be

24 made available directly, or indirectly through contracts,

25 grants, and cooperative agreements, as appropriate.’’.
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1 (b) USE OF TENANT-BASED ASSISTANCE FOR RE2 PLACEMENT HOUSING.—Section 18(b)(3)(C)(i) of the

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

4 1437p(b)(3)(C)(i)) is amended by striking ‘‘15-year’’.

5 (c) REPLACEMENT HOUSING OUTSIDE THE JURIS6 DICTION OF THE PHA.—Section 18(b)(3) of the United

7 States Housing Act of 1937 (42 U.S.C. 1437p(b)(3)) is

8 amended—

9 (1) in subparagraph (G), by striking ‘‘and’’ at

10 the end;

11 (2) in subparagraph (H), by adding ‘‘and’’ at

12 the end; and

13 (3) by adding at the end the following new sub14 paragraph:

15 ‘‘(I) may provide that all or part of such

16 additional dwelling units may be located outside

17 the jurisdiction of the public housing agency

18 (hereafter in this section referred to as the

19 ‘original agency’) if—

20 ‘‘(i) the location is in the same hous21 ing market area as the original agency, as

22 determined by the Secretary;

23 ‘‘(ii) the plan contains an agreement

24 between the original agency and the public

25 housing agency in the alternate location or
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1 other public or private entity that will be

2 responsible for providing the additional

3 units in the alternate location (hereafter in

4 this section referred to as the ‘alternate

5 agency or entity’) that the alternate agency

6 or entity will, with respect to the dwelling

7 units involved—

8 ‘‘(I) provide the dwelling units in

9 accordance with subparagraph (A);

10 ‘‘(II) complete the plan on sched11 ule in accordance with subparagraph

12 (E);

13 ‘‘(III) meet the requirements of

14 subparagraph (F) and the maximum

15 rent provisions of subparagraph (G);

16 and

17 ‘‘(IV) not impose a local resi18 dency preference on any resident of

19 the jurisdiction of the original agency

20 for purposes of admission to any such

21 units; and

22 ‘‘(iii) the arrangement is approved by

23 the unit of general local government for

24 the jurisdiction in which the additional

25 units will be located;’’.
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1 SEC. 212. MODERNIZATION PROGRAM RESERVE FUNDS.

2 Section 14(k)(1) of the United States Housing Act

3 of 1937 (42 U.S.C. 1437l(k)(1)) is amended by adding

4 after the first sentence the following: ‘‘In each fiscal year,

5 any amounts set aside for grants under this paragraph

6 that remain unreserved at the end of the fiscal year may

7 be used for modernization needs in connection with the

8 settlement of litigation and desegregation of public hous9 ing.’’.

10 SEC. 213. ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC

11 HOUSING FOR PUBLIC HOUSING OPERATING

12 SUBSIDIES.

13 Section 9(a)(2) of the United States Housing Act of

14 1937 (42 U.S.C. 1437g(a)(2)) is amended by striking ‘‘de15 veloped pursuant’’ and all that follows through ‘‘section

16 8,’’ inserting the following: ‘‘that is—

17 ‘‘(A) developed pursuant to a contributions

18 contract authorized by section 5 but is not sub19 ject to section 8; or

20 ‘‘(B) assisted under section 24 or the pro21 gram authorized under—

22 ‘‘(i) the third paragraph of the head23 ing, ‘HOMEOWNERSHIP AND OPPORTUNITY

24 FOR PEOPLE EVERYWHERE GRANTS (HOPE

25 GRANTS)’, of the Department of Veterans

26 Affairs and Housing and Urban Develop-
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1 ment, and Independent Agencies Appro2 priations Act, 1993; or

3 ‘‘(ii) the heading, ‘SEVERELY DIS4 TRESSED PUBLIC HOUSING PROJECTS’, of

5 the Department of Veterans Affairs and

6 Housing and Urban Development, and

7 Independent Agencies Appropriations Act,

8 1994;’’.

9 Subtitle C—Anti-Crime Initiatives

10 SEC. 221. COMMUNITY PARTNERSHIPS AGAINST CRIME.

11 (a) CONFORMING PROVISIONS.—Section 5001 of the

12 Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901) is

13 amended in the table of contents—

14 (1) by striking the item relating to chapter 2

15 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 after the item relating to section

20 5130 the following:

‘‘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 (42 U.S.C. 11901 et seq.) is
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1 amended by striking the chapter heading for chapter 2,

2 and sections 5121, 5122, and 5123, and inserting the fol3 lowing:

4 ‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS

5 AGAINST CRIME

6 ‘‘SEC. 5121. SHORT TITLE.

7 ‘‘This chapter may be cited as the ‘Community Part8 nerships Against Crime Act of 1994’.

9 ‘‘SEC. 5122. PURPOSES.

10 ‘‘The purposes of this chapter are to—

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

12 public housing residents by reducing the levels of

13 fear, violence, and crime in their communities;

14 ‘‘(2) expand and enhance the Federal Govern15 ment’s commitment to eliminating crime in public

16 housing;

17 ‘‘(3) broaden the scope of the Public and As18 sisted Housing Drug Elimination Act of 1990 to

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

20 that is drug-related;

21 ‘‘(4) target opportunities for long-term commit22 ments of funding primarily to public housing agen23 cies with serious crime problems;

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

25 range of community-based groups, and residents of
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1 neighboring housing that is owned or assisted by the

2 Secretary, in the development and implementation of

3 anti-crime plans;

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

5 public housing through the expansion of community6 oriented policing activities and problem-solving;

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

8 other technical assistance to program participants;

9 and

10 ‘‘(8) establish a standardized assessment sys11 tem to evaluate need among public housing agencies,

12 and to measure progress in reaching crime reduction

13 goals.

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

15 ‘‘(a) IN GENERAL.—The Secretary of Housing and

16 Urban Development, in accordance with the provisions of

17 this chapter, may make grants, for use in eliminating

18 crime in and around public and other federally assisted

19 low-income housing projects—

20 ‘‘(1) to public housing agencies (including In21 dian housing authorities); and

22 ‘‘(2) to private, for-profit, and nonprofit owners

23 of federally assisted low-income housing.
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1 ‘‘(b) CONSULTATION.—In designing the grant pro2 gram under this section, the Secretary shall consult with

3 the Attorney General.’’.

4 (c) ELIGIBLE ACTIVITIES.—Section 5124 of the Pub5 lic and Assisted Housing Drug Elimination Act of 1990

6 (42 U.S.C. 11903) is amended—

7 (1) in subsection (a)—

8 (A) in the introductory material preceding

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

10 ‘‘used in’’;

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

12 as fencing, lighting, locking, and surveillance

13 systems and costs of renovation to current

14 structures for the purposes of establishing po15 lice substations on the premises of public hous16 ing developments’’ before the semicolon;

17 (C) in paragraph (4), by striking subpara18 graph (A) and inserting the following:

19 ‘‘(A) to investigate crime; and’’;

20 (D) in paragraph (6)—

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

22 or other federally assisted low-income

23 housing projects’’; and

24 (ii) by striking ‘‘and’’ after the semi25 colon;
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1 (E) in paragraph (7)—

2 (i) by striking ‘‘where a public hous3 ing agency receives a grant,’’;

4 (ii) by striking ‘‘drug abuse’’ and in5 serting ‘‘crime’’; and

6 (iii) by striking the period at the end

7 and inserting a semicolon; and

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

9 paragraphs:

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

11 more individuals, including law enforcement officers,

12 made available by contract or other cooperative ar13 rangement with State or local law enforcement agen14 cies, to engage in community policing involving

15 interaction with members of the community on

16 proactive crime control and prevention;

17 ‘‘(9) youth initiatives, such as activities involv18 ing training, education, after-school programs, cul19 tural programs, recreation and sports, career plan20 ning, and entrepreneurship and employment; and

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

22 training, education programs, drug and alcohol

23 treatment, and other appropriate social services that

24 address the contributing factors of crime.’’; and
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1 (2) in subsection (b), by striking ‘‘(7)’’ and in2 serting ‘‘(10)’’.

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

4 Assisted Housing Drug Elimination Act of 1990 (42

5 U.S.C. 11904) is amended—

6 (1) in subsection (a)—

7 (A) by striking ‘‘To receive a grant’’ and

8 inserting the following:

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

10 (B) in the second sentence, by striking

11 ‘‘drug-related crime on the premises of’’ and in12 serting the following: ‘‘crime in and around’’;

13 and

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

15 paragraphs:

16 ‘‘(2) ONE-YEAR RENEWABLE GRANTS.—

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

18 may submit an application for a 1-year grant

19 under this chapter that, subject to the availabil20 ity of appropriated amounts, shall be renewed

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

22 if the Secretary finds, after an annual or more

23 frequent performance review, that the public

24 housing agency is performing under the terms

25 of the grant and applicable laws in a satisfac-
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1 tory manner and meets such other requirements

2 as the Secretary may prescribe.

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

4 accord a preference to an applicant for a grant

5 under this paragraph if the grant is to be used

6 to continue or expand activities eligible for as7 sistance under this chapter that have received

8 previous assistance either under this chapter

9 (as it existed prior to the enactment of the

10 Housing Choice and Community Investment

11 Act of 1994), or under section 14 of the United

12 States Housing Act of 1937. Such preference

13 shall not preclude the selection by the Secretary

14 of other meritorious applications that address

15 urgent or severe crime problems. Such pref16 erence shall not be construed to require con17 tinuation of activities determined by the Sec18 retary to be unworthy of continuation.

19 ‘‘(3) PUBLIC HOUSING AGENCIES THAT HAVE

20 ESPECIALLY SEVERE CRIME PROBLEMS.—The Sec21 retary shall, by regulation issued after notice and

22 opportunity for public comment, set forth criteria for

23 establishing a class of public housing agencies that

24 have especially severe crime problems. The Secretary

25 may allocate a portion of the annual appropriation
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1 for the program under this chapter for public hous2 ing agencies in this class.’’;

3 (2) in subsection (b)—

4 (A) by striking the material preceding

5 paragraph (1) and inserting the following: ‘‘The

6 Secretary shall approve applications under sub7 section (a)(2) that are not subject to a pref8 erence under subsection (a)(2)(B) on the basis

9 of—’’;

10 (B) in paragraph (1), by striking ‘‘drug-re11 lated crime problem in’’ and inserting ‘‘crime

12 problem in and around’’;

13 (C) in paragraph (2), by inserting ‘‘and

14 around’’ immediately after ‘‘crime problem in’’;

15 and

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

17 ‘‘local government’’ the following: ‘‘, local com18 munity-based nonprofit organizations, local resi19 dent organizations that represent the residents

20 of neighboring projects that are owned or as21 sisted by the Secretary,’’;

22 (3) in subsection (c)(2), by striking ‘‘drug23 related’’ each place it appears; and

24 (4) by striking subsection (d).
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1 (e) DEFINITIONS.—Section 5126 of the Public and

2 Assisted Housing Drug Elimination Act of 1990 (42

3 U.S.C. 11905) is amended by striking paragraphs (1) and

4 (2), and redesignating paragraphs (3) and (4) as para5 graphs (1) and (2), respectively.

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

7 and Assisted Housing Drug Elimination Act of 1990 (42

8 U.S.C. 11908) is amended by striking ‘‘Cranston-Gonzalez

9 National Affordable Housing Act’’ and inserting ‘‘Housing

10 Choice and Community Investment Act of 1994’’.

11 (g) REPORTS.—Section 5128 of the Public and As12 sisted Housing Drug Elimination Act of 1990 (42 U.S.C.

13 11907) is amended—

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

15 the following:

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

17 (2) by striking ‘‘drug-related crime in’’ and in18 serting ‘‘crime in and around’’; and

19 (3) by adding at the end the following new sub20 section:

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

22 report to the Congress describing the system used to dis23 tribute funds to grantees under this section. Such report

24 shall include—
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1 ‘‘(1) a description of the criteria used to estab2 lish the class of public housing agencies with espe3 cially severe crime problems and a list of such agen4 cies;

5 ‘‘(2) the methodology used to distribute funds

6 among the public housing agencies on the list cre7 ated under paragraph (1); and

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

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

10 (h) AUTHORIZATION OF APPROPRIATIONS.—Section

11 5130 of the Public and Assisted Housing Drug Elimi12 nation Act of 1990 (42 U.S.C. 11909) is amended—

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

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

15 that follows before the period and inserting

16 ‘‘$265,000,000 for fiscal year 1995, and

17 $272,950,000 for fiscal year 1996’’;

18 (2) in subsection (b)—

19 (A) in the heading, by striking ‘‘SET20 ASIDES’’ and inserting ‘‘SET-ASIDE’’; and

21 (B) by striking the second sentence; and

22 (3) by adding at the end the following new sub23 section:

24 ‘‘(d) SET-ASIDE FOR PUBLIC-PRIVATE PARTNER25 SHIPS.—Of amounts made available in any fiscal year to
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1 carry out this chapter, 2 percent shall be available for con2 tracts, grants, cooperative agreements, or interagency

3 agreements with public housing agencies (including Indian

4 housing authorities) and other public or private organiza5 tions, to implement programs which involve joint invest6 ment by the public and private sectors to conduct activities

7 designed to reduce crime and violence in public housing.

8 Such activities may include the creation of pilot programs

9 or the replication of successful existing programs.’’.

10 (i) REPEAL.—Section 520(k) of the Cranston-Gon11 zalez National Affordable Housing Act (42 U.S.C.

12 11903a(k)) is hereby repealed.

13 (j) TECHNICAL ASSISTANCE.—The Public and As14 sisted Housing Drug Elimination Act of 1990 (42 U.S.C.

15 11901 et seq.) is amended by adding at the end the follow16 ing new section:

17 ‘‘SEC. 5131. TECHNICAL ASSISTANCE.

18 ‘‘Of the amounts appropriated annually for each of

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

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

21 or indirectly, under grants, contracts, or cooperative

22 agreements, to provide training, information services, and

23 other technical assistance to public housing agencies and

24 other entities with respect to their participation in the pro25 gram authorized by this chapter. Such technical assistance
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1 may include the establishment and operation of the clear2 inghouse on crime in public housing and the regional

3 training program on crime prevention in public housing.

4 The Secretary may also use the foregoing amounts for ob5 taining assistance in establishing and managing assess6 ment and evaluation criteria and specifications, and for

7 obtaining the opinions of experts in relevant fields. The

8 Secretary may use not more than $1,000,000 from the

9 amounts provided under this section to make grants to

10 public housing agencies for residential police programs

11 under section 519 of the Cranston-Gonzalez National Af12 fordable Housing Act.’’.

13 SEC. 222. POLICE IN PUBLIC HOUSING.

14 Section 519 of the Cranston-Gonzalez National Af15 fordable Housing Act (42 U.S.C. 1437a–1) is amended by

16 inserting in subsection (d) after the word ‘‘requirements’’

17 the second place it appears the following: ‘‘(including sub18 stantially reduced rents or at no charge)’’.

19 SEC. 223. AVAILABILITY OF CRIMINAL RECORDS FOR

20 SCREENING AND EVICTION.

21 Section 6 of the United States Housing Act of 1937

22 (42 U.S.C. 1437d) is amended by adding at the end the

23 following new subsection:

24 ‘‘(p) AVAILABILITY OF RECORDS.—
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1 ‘‘(1) IN GENERAL.—Notwithstanding any other

2 provision of law, the National Crime Information

3 Center, a police department, and any other law en4 forcement agency shall, upon request, provide infor5 mation to public housing agencies regarding the

6 criminal conviction records of adult applicants for,

7 or residents of, public housing for purpose of appli8 cant screening, lease enforcement, and eviction. Such

9 information may not include information regarding

10 any criminal conviction of such an applicant or ten11 ant for any act (or failure to act) that occurred more

12 than 5 years in the past.

13 ‘‘(2) OPPORTUNITY TO DISPUTE.—Before an

14 adverse action is taken on the basis of a criminal

15 record, the agency shall provide the tenant or appli16 cant a copy of the record and an opportunity to dis17 pute its accuracy and relevance.

18 ‘‘(3) FEE.—An agency may be charged a rea19 sonable fee for such information.

20 ‘‘(4) RECORDS MANAGEMENT.—The Secretary

21 shall require each public housing agency to establish

22 and implement a system of records management

23 that ensures that any criminal records it receives are

24 maintained confidentially, are not misused or im25 properly disseminated, and are destroyed once the
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1 purpose for which they were requested has been

2 completed.

3 ‘‘(5) DEFINITION.—For purposes of this sub4 section, the term ‘adult’ means a person who is 18

5 years or older, or who has been convicted of a crime

6 as an adult under Federal or State law.’’.

7 Subtitle D—Authorizations and

8 Extensions

9 SEC. 231. LOW-INCOME HOUSING.

10 (a) AGGREGATE BUDGET AUTHORITY.—Section

11 5(c)(6) of the United States Housing Act of 1937 (42

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

13 following new sentence: ‘‘The aggregate amount of budget

14 authority that may be obligated for assistance referred to

15 in paragraph (7) is increased (to the extent approved in

16 appropriation Acts) by not less than $10,531,176,000 on

17 October 1, 1995, and by not less than $10,760,505,000

18 on October 1, 1996.’’.

19 (b) UTILIZATION OF BUDGET AUTHORITY.—Section

20 5(c)(7) of the United States Housing Act of 1937 (42

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

22 designation and all that follows through the end of sub23 paragraph (B) and inserting the following:

24 ‘‘(7) UTILIZATION OF BUDGET AUTHORITY.—
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1 ‘‘(A) FISCAL YEAR 1995.—Using the addi2 tional budget authority provided under para3 graph (6) and the balances of budget authority

4 that become available during fiscal year 1995,

5 the Secretary shall, to the extent approved in

6 appropriation Acts, reserve authority to enter

7 into obligations aggregating—

8 ‘‘(i) for public housing grants under

9 subsection (a)(2), not more than

10 $938,000,000, of which amount not more

11 than $263,000,000 shall be available for

12 Indian housing;

13 ‘‘(ii) for assistance under section 8,

14 not more than $1,950,000,000, of which

15 $350,000,000 shall be available for con16 tracts with terms of not more than 15

17 years under the Community Investment

18 Demonstration Program under section 6 of

19 the HUD Demonstration Act of 1993;

20 ‘‘(iii) for modernization grants under

21 section 14(k), not more than

22 $3,440,000,000, including $15,000,000 for

23 training and technical assistance;
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1 ‘‘(iv) for assistance under section 8

2 for loan management, not more than

3 $150,000,000;

4 ‘‘(v) such sums as may be necessary

5 for extensions of contracts expiring under

6 section 8, which shall be for contracts for

7 assistance under section 8 and vouchers

8 under section 8(o) and for loan manage9 ment assistance under such section;

10 ‘‘(vi) for amendments to contracts

11 under section 8, $950,000,000;

12 ‘‘(vii) for adjustments to annual con13 tributions contracts for the costs of provid14 ing service coordinators under section

15 9(a)(1)(B)(ii), not more than $55,000,000;

16 ‘‘(viii) for public housing lease adjust17 ments, $21,900,000;

18 ‘‘(ix) for assistance under section

19 18(e) for replacement housing for units de20 molished or disposed of under section 18,

21 and for eligible tenants where project own22 ers opt out of the section 8 program, not

23 more than $82,916,000;

24 ‘‘(x) for conversions for leased hous25 ing contracts under section 23 (as in effect
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1 immediately before the date of enactment

2 of the Housing and Community Develop3 ment Act of 1974) to assistance under sec4 tion 8, not more than $3,960,000; and

5 ‘‘(xi) for grants under section 24 for

6 revitalization of severely distressed public

7 housing, not more than $500,000,000.

8 ‘‘(B) FISCAL YEAR 1996.—Using the addi9 tional budget authority provided under para10 graph (6) and the balances of budget authority

11 that become available during fiscal year 1996,

12 the Secretary shall, to the extent approved in

13 appropriation Acts, reserve authority to enter

14 into obligations aggregating—

15 ‘‘(i) for public housing grants under

16 subsection (a)(2), not more than

17 $966,140,000, of which amount not more

18 than $270,890,000 shall be available for

19 Indian housing;

20 ‘‘(ii) for assistance under section 8,

21 not more than $1,998,000,000 of which

22 $350,000 shall be available for 15-year

23 contracts for the Community Investment

24 Demonstration program under section 6 of

25 the HUD Demonstration Act of 1993;
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1 ‘‘(iii) for modernization grants under

2 section 14(k), not more than

3 $3,543,200,000, including $15,000,000 for

4 training and technical assistance;

5 ‘‘(iv) for assistance under section 8

6 for loan management, not more than

7 $150,000,000;

8 ‘‘(v) for extensions of contracts expir9 ing under section 8, such sums as may be

10 necessary, which shall be for contracts for

11 assistance under section 8 and vouchers

12 under section 8(o) and for loan manage13 ment assistance under such section;

14 ‘‘(vi) for amendments to contracts

15 under section 8, such sums as may be nec16 essary;

17 ‘‘(vii) for adjustments to annual con18 tributions contracts for the costs of provid19 ing service coordinators under section

20 9(a)(1)(B)(ii), not more than $55,000,000;

21 ‘‘(viii) for public housing lease adjust22 ments, $21,900,000;

23 ‘‘(ix) for assistance under section

24 18(e) for replacement housing for units de25 molished or disposed of under section 18,
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1 and for eligible tenants where project own2 ers opt out of the section 8 program, not

3 more than $85,403,000;

4 ‘‘(x) for conversions from leased hous5 ing contracts under section 23 (as in effect

6 immediately before the date of enactment

7 of the Housing and Community Develop8 ment Act of 1974) to assistance under sec9 tion 8, not more than $3,960,000; and

10 ‘‘(xi) for grants under section 24 for

11 revitalization of severely distressed public

12 housing, not more than $515,000,000.’’.

13 SEC. 232. PUBLIC HOUSING OPERATING SUBSIDIES.

14 Section 9(c) of the United States Housing Act of

15 1937 (42 U.S.C. 1437g(c)) is amended—

16 (1) by striking paragraph (1) and inserting the

17 following:

18 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—

19 There are authorized to be appropriated for pur20 poses of providing annual contributions under this

21 section $2,950,000,000 for fiscal year 1995 and

22 $3,038,500,000 for fiscal year 1996.’’;

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

24 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 SEC. 233. FAMILY SELF-SUFFICIENCY PROGRAM.

4 The third sentence of section 23(h)(2) of the United

5 States Housing Act of 1937 (42 U.S.C. 1437u(h)(2)) is

6 amended to read as follows: ‘‘Of amounts appropriated

7 under section 9(c), $8,400,000 for fiscal year 1995 and

8 $8,652,000 for fiscal year 1996 may be used for costs

9 under this paragraph.’’.

10 SEC. 234. FAMILY INVESTMENT AND ECONOMIC OPPOR11 TUNITY CENTERS.

12 Section 22 of the United States Housing Act of 1937

13 (42 U.S.C. 1437t) is amended to read as follows:

14 ‘‘SEC. 22. FAMILY INVESTMENT AND ECONOMIC OPPOR15 TUNITY CENTERS

16 ‘‘(a) PURPOSE.—The purpose of this section is to

17 provide low-income households and families living in or

18 near public housing with better access to educational and

19 employment opportunities to achieve self-sufficiency by—

20 ‘‘(1) developing facilities in or near public hous21 ing for training and support services;

22 ‘‘(2) mobilizing public and private resources to

23 expand and improve the delivery of such services;
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1 ‘‘(3) providing funding for such essential train2 ing and support services that cannot otherwise be

3 funded; and

4 ‘‘(4) providing services which will link low-in5 come families with jobs generated by housing and

6 community development assistance as required under

7 section 3 of the Housing and Urban Development

8 Act of 1968.

9 ‘‘(b) ELIGIBLE APPLICANTS.—The Secretary may

10 make grants to State or local governments, to their agen11 cies, public housing agencies (including Indian housing au12 thorities), public or private nonprofit organizations or in13 stitutions (including community action agencies), or public

14 or private entities that are administering or will admin15 ister family investment or economic opportunity centers

16 that meet the purposes expressed in subsection (a).

17 ‘‘(c) ELIGIBLE ACTIVITIES.—A grant under this sec18 tion may be used to support activities, including—

19 ‘‘(1) establishing family investment or economic

20 opportunity centers through—

21 ‘‘(A) the renovation, conversion, or com22 bination of vacant dwelling units in a public

23 housing project to create common areas to ac24 commodate the provision of supportive services;
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1 ‘‘(B) the renovation of existing common

2 areas in a public housing project to accommo3 date the provision of supportive services; and

4 ‘‘(C) the renovation, acquisition, or con5 struction of facilities near the premises of pub6 lic housing projects to accommodate the provi7 sion of supportive services; and

8 ‘‘(2) providing services to low-income residents

9 living in or around public housing through—

10 ‘‘(A) the provision of not more than 15

11 percent of the cost of the supportive services

12 only if the applicant demonstrates to the satis13 faction of the Secretary that—

14 ‘‘(i) the supportive services are appro15 priate to improve the access of the eligible

16 residents to employment and education op17 portunities; and

18 ‘‘(ii) the applicant has made diligent

19 efforts to use or obtain other available re20 sources to fund or provide services; and

21 ‘‘(B) the employment of service coordina22 tors, subject to such minimum qualifications

23 and standards as the Secretary may establish,

24 who may be responsible for—
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1 ‘‘(i) assessing the training, service

2 needs, and education of eligible residents;

3 ‘‘(ii) working with service providers to

4 coordinate the provision of services and

5 tailor such services to the needs and char6 acteristics of eligible public housing resi7 dents;

8 ‘‘(iii) establishing a job bank of posi9 tions in connection with programs subject

10 to this section;

11 ‘‘(iv) providing access to services for

12 persons having no or limited proficiency in

13 English;

14 ‘‘(v) assisting residents in the prepa15 ration of job applications or applications

16 for educational programs;

17 ‘‘(vi) assisting contractors, contractor

18 associations, and joint labor-management

19 committees to develop and fund training

20 and apprenticeship initiatives and pro21 grams;

22 ‘‘(vii) providing information about the

23 requirements of section 3 of the Housing

24 and Urban Development Act of 1968 and

25 economic opportunities to resident councils,
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1 resident management corporations, neigh2 borhood groups, and community-based or3 ganizations;

4 ‘‘(viii) providing links with related

5 government and private programs that

6 fund the startup costs of businesses;

7 ‘‘(ix) mobilizing public and private re8 sources to ensure that the supportive serv9 ices identified pursuant to subsection

10 (g)(2) can be funded over the time period

11 under such subsection;

12 ‘‘(x) performing such other duties and

13 functions that the Secretary determines

14 are appropriate to provide families living in

15 or near public housing with better access

16 to educational and employment opportuni17 ties; and

18 ‘‘(xi) identifying opportunities for low19 income residents living in or near public

20 housing to access jobs created by Federal

21 housing and community development pro22 grams.

23 ‘‘(d) SELECTION CRITERIA.—The Secretary shall es24 tablish selection criteria for grants under this section,

25 which shall take into account—
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1 ‘‘(1) the demonstrated ability of the applicant

2 to provide or access the supportive services identified

3 under subsection (g)(2);

4 ‘‘(2) the need for such services in the appli5 cant’s service area;

6 ‘‘(3) the extent to which the renovation, conver7 sion, and combination activities are appropriate and

8 necessary to facilitate the provision of such services;

9 ‘‘(4) the extent to which the applicant has dem10 onstrated that such services will be provided for the

11 period identified under subsection (g)(2);

12 ‘‘(5) the extent to which the applicant has a

13 good record of maintaining and operating public

14 housing or other Federal programs;

15 ‘‘(6) the ability of the applicant to—

16 ‘‘(A) develop, provide or access employ17 ment development skills to low-income persons;

18 ‘‘(B) coordinate and utilize existing public

19 and private training, employment, and business

20 assistance funds or services; and

21 ‘‘(C) establish or maintain working rela22 tionships with unions or other construction

23 trade associations, and public and private em24 ployers; and
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1 ‘‘(7) any other factors that the Secretary deter2 mines to be appropriate to ensure that amounts

3 made available under this section are used effec4 tively.

5 ‘‘(e) EMPLOYMENT OF PUBLIC HOUSING RESI6 DENTS.—Each applicant shall, to the maximum extent

7 practicable, employ public housing residents to provide the

8 services assisted under this section or from other sources

9 and the provision of supportive services under this section

10 shall be considered the provision of housing assistance for

11 purposes of section 3 of the Housing and Urban Develop12 ment Act of 1968. Such persons shall be paid at a rate

13 not less than the highest of—

14 ‘‘(1) the minimum wage that would be applica15 ble to the employee under the Fair Labor Standards

16 Act of 1938, if section 6(a)(1) of such Act applied

17 to the resident and if the resident were not exempt

18 under section 13 of such Act;

19 ‘‘(2) the State or local minimum wage for the

20 most nearly comparable covered employment; or

21 ‘‘(3) the prevailing rates of pay for persons em22 ployed in similar public occupations by the same em23 ployer.
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1 ‘‘(f) ALLOCATION OF GRANT AMOUNTS.—Assistance

2 under this section shall be allocated by the Secretary

3 among approvable applications on a competitive basis.

4 ‘‘(g) APPLICATIONS.—Applications for assistance

5 under this section shall be submitted in such form and

6 in accordance with such procedures as the Secretary shall

7 establish. Each application for assistance shall contain—

8 ‘‘(1) a description of activities to be carried out

9 under subsection (c)(1);

10 ‘‘(2) a description of the supportive services

11 that are to be provided over a 5-year period (or such

12 longer period that the Secretary determines to be

13 appropriate if assistance is provided for activities

14 under subsection (c) that involve substantial reha15 bilitation);

16 ‘‘(3) a firm commitment of assistance from 1 or

17 more sources ensuring that the supportive services

18 will be provided for not less than 1 year following

19 the completion of activities assisted under subsection

20 (c);

21 ‘‘(4) a description of public or private sources

22 of assistance that can reasonably be expected to

23 fund or provide supportive services for the entire pe24 riod specified under paragraph (2), including evi25 dence of any intention to provide assistance ex-
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1 pressed by State and local governments, private

2 foundations, and other organizations (including prof3 it and nonprofit organizations);

4 ‘‘(5) certification from the appropriate State or

5 local agency (as determined by the Secretary) that—

6 ‘‘(A) the provision of supportive services

7 described in paragraph (2) is well designed to

8 provide resident families better access to edu9 cational and employment opportunities; and

10 ‘‘(B) there is a reasonable likelihood that

11 such services will be funded or provided for the

12 entire period specified in paragraph (2); and

13 ‘‘(6) any other information or certifications that

14 the Secretary determines are necessary or appro15 priate to achieve the purposes of this section.

16 ‘‘(h) TREATMENT OF INCOME.—No service provided

17 to a public housing resident under this section may be

18 treated as income for the purpose of any other program

19 or provision of Federal or State law.

20 ‘‘(i) REPORTS.—

21 ‘‘(1) TO SECRETARY.—Each public housing

22 agency receiving a grant under this section shall

23 submit to the Secretary, in such form and at such

24 time as the Secretary shall prescribe, an annual
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1 progress report describing and evaluating the use of

2 grant amounts received under this section.

3 ‘‘(2) TO CONGRESS.—The Secretary shall sub4 mit to the Congress annually, as a part of the report

5 of the Secretary under section 8 of the Department

6 of Housing and Urban Development Act, an evalua7 tion of the effectiveness of activities carried out with

8 grants under this section in such fiscal year. Such

9 report shall summarize the progress reports submit10 ted pursuant to paragraph (1).

11 ‘‘(j) DEFINITION OF SUPPORTIVE SERVICES.—For

12 purposes of this section, the term ‘supportive services’

13 means new or significantly expanded services that the Sec14 retary determines are essential to providing families living

15 with children in public housing with better access to edu16 cational and employment opportunities. Such services may

17 include—

18 ‘‘(1) child care;

19 ‘‘(2) employment training and counseling;

20 ‘‘(3) literacy training;

21 ‘‘(4) computer skills training;

22 ‘‘(5) education, including assistance in the at23 tainment of certificates of high school equivalency;

24 ‘‘(6) substance abuse programs; and

25 ‘‘(7) other appropriate services.
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1 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There

2 are authorized to be appropriated to carry out this section

3 $50,000,000 in fiscal year 1995 and $51,500,000 in 1996.

4 ‘‘(l) 5 PERCENT SET-ASIDE.—The Secretary may

5 not use more than 5 percent of the amounts appropriated

6 under subsection (j) to enter into contracts with eligible

7 applicants for innovative public/private initiatives that

8 support economic development and increased self-suffi9 ciency of public housing residents. Eligible activities relat10 ed to economic development and self-sufficiency include

11 such programs as counseling, treatment for substance

12 abuse, child care, remedial education, job training, and de13 velopment of resident businesses.’’.

14 SEC. 235. RESIDENT MANAGEMENT AND TENANT OPPOR15 TUNITY PROGRAM.

16 Section 20 of the United States Housing Act of 1937

17 (42 U.S.C. 1437r) is amended—

18 (1) by striking the section heading and insert19 ing the following:

20 ‘‘RESIDENT MANAGEMENT AND TENANT OPPORTUNITY

21 PROGRAM’’;

22 (2) in subsection (b), by striking ‘‘resident

23 management program’’ each place it appears and in24 serting ‘‘resident management and tenant oppor25 tunity program’’; and

26 (3) in subsection (f)—
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1 (A) by striking the subsection heading and

2 inserting the following:

3 ‘‘(f) RESIDENT MANAGEMENT AND TENANT OPPOR4 TUNITY ASSISTANCE.—’’;

5 (B) in paragraph (1), by adding at the end

6 the following: ‘‘In addition, the Secretary may

7 provide financial assistance to resident manage8 ment corporations or resident councils for ac9 tivities sponsored by resident organizations for

10 job training, economic development, security,

11 and other self-sufficiency activities beyond those

12 related to the management of public housing.

13 Resident councils or resident management cor14 porations may jointly apply for financial assist15 ance at their discretion with public housing

16 agencies. Only resident councils and resident

17 management corporations may be recipients of

18 such assistance.’’;

19 (C) in paragraph (2), by striking

20 ‘‘$100,000’’ and inserting ‘‘$250,000’’;

21 (D) by striking paragraph (3) and insert22 ing the following:

23 ‘‘(3) FUNDING.—Of any amounts made avail24 able for financial assistance under section 14, the

25 Secretary may use to carry out this subsection
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1 $50,000,000 for fiscal year 1995 and $50,000,000

2 for fiscal year 1996.’’; and

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

4 paragraph:

5 ‘‘(5) FIVE PERCENT SET-ASIDE.—

6 ‘‘(A) IN GENERAL.—The Secretary may

7 use not more than 5 percent of the amounts ap8 propriated under paragraph (3) to enter into

9 contracts with—

10 ‘‘(i) various entities for monitoring,

11 evaluation, technical assistance, and infor12 mation dissemination in connection with

13 activities under this subsection; and

14 ‘‘(ii) public housing agencies, resident

15 organizations, and public or private enti16 ties for innovative public/private initiatives

17 that support the increased self-sufficiency

18 of public housing residents.

19 ‘‘(B) ACTIVITIES INCLUDED.—Eligible ac20 tivities related to increased self-sufficiency

21 under subparagraph (A)(ii) may include such

22 programs as counseling, treatment for sub23 stance abuse, child care, remedial education,

24 and job training.’’.
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1 SEC. 236. INDIAN HOUSING LOAN GUARANTEE PROGRAM.

2 (a) LIMITATION ON OUTSTANDING AGGREGATE

3 PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous4 ing and Community Development Act of 1992 (12 U.S.C.

5 1515z–13a(i)(5)(C)) is amended—

6 (1) by striking ‘‘fiscal years 1993 and 1994’’

7 and inserting ‘‘fiscal years 1995 and 1996’’; and

8 (2) by striking ‘‘not exceeding’’ and all that fol9 lows, and inserting ‘‘not exceeding $22,388,000 for

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

11 1996, to the extent provided in appropriation Acts.’’.

12 (b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR13 ANTEE FUND.—Section 184(i)(7) of the Housing and

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

15 13a(i)(7)) is amended to read as follows:

16 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—

17 There are authorized to be appropriated to the

18 Guarantee Fund to carry out this section,

19 $3,000,000 for fiscal year 1995 and $3,000,000 for

20 fiscal year 1996.’’.

21 Subtitle E—Applicability

22 SEC. 241. APPLICABILITY OF PUBLIC HOUSING AMEND23 MENTS TO INDIAN HOUSING.

24 (a) AMENDMENT.—Section 201(b) of the United

25 States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is

26 amended to read as follows:
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1 ‘‘(b) APPLICABILITY OF TITLE I.—Except as other2 wise provided by law, the provisions of title I shall apply

3 to low-income housing developed or operated pursuant to

4 a contract between the Secretary and an Indian housing

5 authority.’’.

6 (b) APPLICABILITY OF AMENDMENT.—The amend7 ment made by subsection (a) shall not affect provisions

8 of the United States Housing Act of 1937 that were made

9 applicable to public housing developed or operated pursu10 ant to a contract between the Secretary and an Indian

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

12 such Act, as it existed before the effective date of this sec13 tion.

14 (c) APPLICABILITY OF OTHER LAWS.—The provi15 sions of section 955(b) of the Cranston-Gonzalez National

16 Affordable Housing Act, sections 103(a)(1), 112, 114,

17 116, 118, 903, and 927 of the Housing and Community

18 Development Act of 1992, and sections 301, 302, 303, and

19 304 of the Multifamily Housing Property Disposition Re20 form Act of 1994 shall apply to public housing developed

21 or operated pursuant to a contract between the Secretary

22 and an Indian housing authority.

23 (d) APPLICABILITY TO VOLUNTEER SERVICES.—The

24 application of section 955(b) of the Cranston-Gonzalez

25 National Affordable Housing to public housing developed
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1 or operated pursuant to a contract between the Secretary

2 and an Indian housing authority shall apply to any volun3 teer services provided before, on, or after the date of en4 actment of this Act, except that such application may not

5 be construed to require the repayment of any wages paid

6 before the date of enactment of this Act for services pro7 vided before such date.

8 Subtitle F—Termination of Certain

9 Assisted Housing Programs

10 SEC. 251. TERMINATION OF CERTAIN ASSISTED HOUSING

11 PROGRAMS.

12 (a) MAJOR RECONSTRUCTION OF OBSOLETE PUBLIC

13 HOUSING PROJECTS.—

14 (1) REPEAL.—The United States Housing Act

15 of 1937 (42 U.S.C. 1437 et seq.) is amended—

16 (A) by striking section 5(j)(2) and insert17 ing the following:

18 ‘‘(2) [Repealed.]’’;

19 (B) in section 14(c)(4), by inserting after

20 ‘‘(5)(j)(2)’’ the following: ‘‘, as such section ex21 isted before the effective date of title I of the

22 Housing Choice and Community Investment

23 Act of 1994’’; and

24 (C) in section 18(a)(3), by inserting after

25 ‘‘(5)(j)(2)’’ the following: ‘‘, as such section ex-
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1 isted before the effective date of title I of the

2 Housing Choice and Community Investment

3 Act of 1994’’.

4 (2) EFFECTIVE DATE.—The amendments made

5 by paragraph (1) shall take effect on the date on

6 which all funds appropriated to carry out section

7 5(j)(2) of the United States Housing Act have been

8 expended.

9 (3) FLEXIBILITY PROVISION.—Upon the re10 quest of the public housing agency, the Secretary

11 may authorize the use of any funding under section

12 5(j)(2) of the United States Housing Act of 1937,

13 for other development uses in conjunction with any

14 grant that was reserved or obligated pursuant to

15 section 5(j)(2) of the United States Housing Act of

16 1937, as in effect on or after the date of enactment

17 of the Housing and Community Development Act of

18 1992.

19 (b) CHOICE IN PUBLIC HOUSING MANAGEMENT.—

20 Section 25 of the United States Housing Act of 1937 (42

21 U.S.C. 1437w) is hereby repealed.

22 (c) HOPE FOR PUBLIC AND INDIAN HOUSING HOME23 OWNERSHIP.—
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1 (1) REPEAL.—Title III of the United States

2 Housing Act of 1937 (42 U.S.C. 1437aaa et seq.)

3 is repealed effective October 1, 1996.

4 (2) CONFORMING AMENDMENTS.—

5 (A) SAVINGS PROVISION.—The last sen6 tence of section 5(h) of the United States

7 Housing Act of 1937 (42 U.S.C. 1437c(h)) is

8 amended by inserting ‘‘, as such section existed

9 before the effective date of title I of the Hous10 ing Choice and Community Investment Act of

11 1994’’ before the period.

12 (B) RENTAL CERTIFICATES AND OTHER

13 EXISTING HOUSING PROGRAMS.—Section

14 8(b)(2) of the United States Housing Act of

15 1937 (42 U.S.C. 1437f(b)(2)) is hereby re16 pealed.

17 (C) RENTAL VOUCHERS.—Section 8(o)(9)

18 of the United States Housing Act of 1937 (42

19 U.S.C. 1437f(o)(9)) is hereby repealed.

20 (D) PUBLIC AND INDIAN HOUSING MOD21 ERNIZATION.—Section 14(n) of the United

22 States Housing Act of 1937 (42 U.S.C.

23 1437l(n)) is hereby repealed.

24 (E) DEMOLITION AND DISPOSITION OF

25 PUBLIC HOUSING.—Section 18(f) of the United
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1 States Housing Act of 1937 (42 U.S.C.

2 1437p(f)) is hereby repealed.

3 (F) PUBLIC HOUSING RESIDENT MANAGE4 MENT.—Section 20(f)(4) of the United States

5 Housing Act of 1937 (42 U.S.C. 1437r(f)(4)) is

6 hereby repealed.

7 (d) HOPE FOR ELDERLY INDEPENDENCE.—Section

8 803 of the Cranston-Gonzalez National Affordable Hous9 ing Act (42 U.S.C. 8012) is hereby repealed.

10 (e) INDIAN HOUSING EARLY CHILDHOOD DEM11 ONSTRATION PROGRAM.—Section 518 of the Cranston12 Gonzalez National Affordable Housing Act (12 U.S.C.

13 1701z–6 note) is hereby repealed.

14 (f) PUBLIC HOUSING ONE-STOP PERINATAL SERV15 ICES.—Section 521 of the Cranston-Gonzalez National Af16 fordable Housing Act (42 U.S.C. 1437t note) is hereby

17 repealed.

18 Subtitle G—Midnight Basketball

19 League Training and Partnership

20 SEC. 261. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Midnight Basket22 ball League Training and Partnership Act’’.
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1 SEC. 262. GRANTS FOR MIDNIGHT BASKETBALL LEAGUE

2 TRAINING AND PARTNERSHIP PROGRAMS.

3 Section 520 of the Cranston-Gonzalez National Af4 fordable Housing Act (42 U.S.C. 11903a) is amended—

5 (1) in the section heading by inserting ‘‘AND

6 ASSISTED’’ after ‘‘PUBLIC’’;

7 (2) in the subsection heading for subsection (a),

8 by inserting ‘‘PUBLIC HOUSING’’ before ‘‘YOUTH’’;

9 and

10 (3) by adding at the end the following new sub11 section:

12 ‘‘(l) MIDNIGHT BASKETBALL LEAGUE TRAINING

13 AND PARTNERSHIP PROGRAMS.—

14 ‘‘(1) AUTHORITY.—The Secretary shall make

15 grants, to the extent that amounts are approved in

16 appropriations Acts under paragraph (11), to—

17 ‘‘(A) eligible entities to assist such entities

18 in carrying out midnight basketball league pro19 grams meeting the requirements of paragraph

20 (3); and

21 ‘‘(B) eligible advisory entities to provide

22 technical assistance to eligible entities in estab23 lishing and operating such midnight basketball

24 league programs.

25 ‘‘(2) ELIGIBLE ENTITIES.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), grants under paragraph (1)(A) may

3 be made only to the following eligible entities:

4 ‘‘(i) Entities eligible under subsection

5 (b) for a grant under subsection (a).

6 ‘‘(ii) Nonprofit organizations provid7 ing employment counseling, job training, or

8 other educational services.

9 ‘‘(iii) Nonprofit organizations provid10 ing federally assisted low-income housing.

11 ‘‘(B) PROHIBITION ON SECOND GRANTS.—

12 A grant under paragraph (1)(A) may not be

13 made to an eligible entity if the entity has pre14 viously received a grant under such paragraph,

15 except that the Secretary may exempt an eligi16 ble advisory entity from the prohibition under

17 this subparagraph in extraordinary cir18 cumstances.

19 ‘‘(3) PROGRAM REQUIREMENTS.—Each eligible

20 entity receiving a grant under paragraph (1)(A)

21 shall establish a midnight basketball league program

22 as follows:

23 ‘‘(A) Not less than 50 percent of the play24 ers in the basketball league shall be residents of

25 federally assisted low-income housing or mem-
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1 bers of low-income families (as such term is de2 fined in section 3(b) of the United States Hous3 ing Act of 1937).

4 ‘‘(B) The program shall be designed to

5 serve primarily youths and young adults from a

6 neighborhood or community whose population

7 has not less than 2 of the following characteris8 tics (in comparison with national averages):

9 ‘‘(i) A substantial problem regarding

10 use or sale of illegal drugs.

11 ‘‘(ii) A high incidence of crimes com12 mitted by youths or young adults.

13 ‘‘(iii) A high incidence of persons in14 fected with the human immunodeficiency

15 virus or sexually transmitted diseases.

16 ‘‘(iv) A high incidence of pregnancy or

17 a high birth rate, among adolescents.

18 ‘‘(v) A high unemployment rate for

19 youths and young adults.

20 ‘‘(vi) A high rate of high school drop21 outs.

22 ‘‘(C) The program shall require each play23 er in the league to attend employment counsel24 ing, job training, and other educational classes

25 provided under the program, which shall be
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1 held at specified times at or near the site of the

2 games.

3 ‘‘(D) The program shall serve only youths

4 and young adults who demonstrate a need for

5 such counseling, training, and education pro6 vided by the program, in accordance with cri7 teria for demonstrating need, which shall be es8 tablished by the Secretary, in consultation with

9 the Advisory Committee.

10 ‘‘(E) The basketball games of the league

11 shall generally be held between the hours of 10

12 p.m. and 2 a.m. at a location in the neighbor13 hood or community served by the program.

14 ‘‘(F) The program shall seek sponsors for

15 each team in the basketball league. Sponsors

16 shall be private individuals or businesses in the

17 neighborhood or community served by the pro18 gram who make financial contributions to the

19 program or participate in or supplement the

20 employment, job training, and educational serv21 ices provided to the players under the program

22 with additional training or educational opportu23 nities.

24 ‘‘(G) The program shall comply with any

25 criteria established by the Secretary, in con-
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1 sultation with the Advisory Committee estab2 lished under paragraph (7).

3 ‘‘(H) Administrators or organizers of the

4 program shall receive training and technical as5 sistance provided by eligible advisory entities re6 ceiving grants under paragraph (6).

7 ‘‘(4) GRANT AMOUNT LIMITATIONS.—

8 ‘‘(A) PRIVATE CONTRIBUTIONS.—The Sec9 retary may not make a grant under paragraph

10 (1)(A) to an eligible entity that applies for a

11 grant under this subsection unless the applicant

12 entity certifies to the Secretary that the entity

13 will supplement the grant amounts with

14 amounts of funds from non-Federal sources.

15 ‘‘(B) NON-FEDERAL FUNDS.—For pur16 poses of this paragraph, the term ‘funds from

17 non-Federal sources’ includes amounts from

18 nonprofit organizations, public housing agen19 cies, States, units of general local government,

20 and Indian housing authorities, private con21 tributions, any salary paid to staff (other than

22 from grant amounts under paragraph (1)(A))

23 to carry out the program of the eligible entity,

24 in-kind contributions to carry out the program

25 (as determined by the Secretary after consulta-
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1 tion with the Advisory Committee), the value of

2 any donated material, equipment, or building,

3 the value of any lease on a building, the value

4 of any utilities provided, and the value of any

5 time and services contributed by volunteers to

6 carry out the program of the eligible entity.

7 ‘‘(C) PROHIBITION ON SUBSTITUTION OF

8 FUNDS.—Grant amounts under paragraph

9 (1)(A) and amounts provided by States and

10 units of general local government to supplement

11 grant amounts may not be used to replace other

12 public funds previously used, or designated for

13 use, under this section.

14 ‘‘(D) MAXIMUM AND MINIMUM GRANT

15 AMOUNTS.—

16 ‘‘(i) IN GENERAL.—The Secretary

17 may not make a grant under paragraph

18 (1)(A) to any single eligible entity in an

19 amount less than $55,000 or exceeding

20 $130,000, except as provided in clause (ii).

21 ‘‘(ii) EXCEPTION FOR LARGE

22 LEAGUES.—In the case of a league having

23 more than 80 players, a grant under para24 graph (1)(A) may exceed $130,000, but

25 may not exceed the amount equal to 35
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1 percent of the cost of carrying out the mid2 night basketball league program.

3 ‘‘(5) SELECTION.—The Secretary, in consulta4 tion with the Advisory Committee, shall select eligi5 ble entities that have submitted applications to re6 ceive grants under paragraph (1)(A) in accordance

7 with such application procedures as the Secretary

8 shall establish by regulation. The Secretary, in con9 sultation with the Advisory Committee, shall estab10 lish criteria for selection of applicants to receive

11 such grants. The Secretary’s selection process shall

12 ensure program participation in city, suburban, and

13 rural areas.

14 ‘‘(6) TECHNICAL ASSISTANCE GRANTS.—Tech15 nical assistance grants under paragraph (1)(B) shall

16 be made as follows:

17 ‘‘(A) ELIGIBLE ADVISORY ENTITIES.—

18 Technical assistance grants may be made only

19 to entities that—

20 ‘‘(i) are experienced and have exper21 tise in establishing, operating, or admin22 istering successful and effective programs

23 for midnight basketball and employment,

24 job training, and educational services simi-
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1 lar to the programs under paragraph (3);

2 and

3 ‘‘(ii) have provided technical assist4 ance to other entities regarding establish5 ment and operation of such programs.

6 ‘‘(B) USE.—Amounts received under tech7 nical assistance grants shall be used to establish

8 centers for providing technical assistance to en9 tities receiving grants under paragraph (1)(A)

10 of this subsection and subsection (a) regarding

11 establishment, operation, and administration of

12 effective and successful midnight basketball

13 league programs under this subsection and sub14 section (c)(3).

15 ‘‘(C) NUMBER AND AMOUNT.—To the ex16 tent that amounts are provided in appropria17 tions Acts under paragraph (11)(B) in each fis18 cal year, the Secretary shall make technical as19 sistance grants under paragraph (1)(B). In

20 each fiscal year that such amounts are available

21 the Secretary shall make 4 such grants, as fol22 lows:

23 ‘‘(i) 2 grants shall be made to eligible

24 advisory entities for development of mid-
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1 night basketball league programs in public

2 housing projects.

3 ‘‘(ii) 2 grants shall be made to eligible

4 advisory entities for development of mid5 night basketball league programs in subur6 ban or rural areas.

7 Each grant shall be in an amount not exceeding

8 $25,000.

9 ‘‘(7) ADVISORY COMMITTEE.—The Secretary

10 shall appoint an Advisory Committee to assist the

11 Secretary in providing grants under this subsection.

12 The Advisory Committee shall be composed of not

13 more than 7 members, including the following:

14 ‘‘(A) Individuals involved in managing or

15 administering midnight basketball programs

16 that the Secretary determines have been suc17 cessful and effective.

18 ‘‘(B) A representative of the Center for

19 Substance Abuse Prevention of the Public

20 Health Service, Department of Health and

21 Human Services, who is involved in administer22 ing the grant program for prevention, treat23 ment, and rehabilitation model projects for high

24 risk youth under section 509A of the Public

25 Health Service Act (42 U.S.C. 290aa–8), who
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1 shall be selected by the Secretary of Health and

2 Human Services.

3 ‘‘(C) A representative of the Department

4 of Education, who shall be selected by the Sec5 retary of Education.

6 ‘‘(D) A representative of the Department

7 of Health and Human Services, who shall be se8 lected by the Secretary of Health and Human

9 Services from among officers and employees of

10 the Department involved in issues relating to

11 high-risk youth.

12 ‘‘(8) REPORTS.—The Secretary shall require

13 each eligible entity receiving a grant under para14 graph (1)(A) and each eligible advisory entity receiv15 ing a grant under paragraph (1)(B) to submit to the

16 Secretary, for each year in which grant amounts are

17 received by the entity, a report describing the activi18 ties carried out with such amounts.

19 ‘‘(9) STUDY.—To the extent amounts are pro20 vided under appropriation Acts pursuant to para21 graph (11)(C), the Secretary shall make a grant to

22 one entity qualified to carry out a study under this

23 paragraph. The entity shall use such grant amounts

24 to carry out a scientific study of the effectiveness of

25 midnight basketball league programs under para-
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1 graph (3) of eligible entities receiving grants under

2 paragraph (1)(A). The Secretary shall require such

3 entity to submit a report describing the study and

4 any conclusions and recommendations resulting from

5 the study to the Congress and the Secretary not

6 later than the expiration of the 2-year period begin7 ning on the date that the grant under this para8 graph is made.

9 ‘‘(10) DEFINITIONS.—For purposes of this sub10 section—

11 ‘‘(A) the term ‘Advisory Committee’ means

12 the Advisory Committee established under para13 graph (7);

14 ‘‘(B) the term ‘eligible advisory entity’

15 means an entity described in paragraph (6)(A);

16 ‘‘(C) the term ‘eligible entity’ means an en17 tity described in paragraph (2)(A);

18 ‘‘(D) the term ‘federally assisted low-in19 come housing’ has the meaning given the term

20 in section 5126 of the Public and Assisted

21 Housing Drug Elimination Act of 1990; and

22 ‘‘(E) the term ‘Secretary’, unless otherwise

23 specified, means the Secretary of Housing and

24 Urban Development.
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1 ‘‘(11) AUTHORIZATION OF APPROPRIATIONS.—

2 There are authorized to be appropriated—

3 ‘‘(A) for grants under paragraph (1)(A),

4 $2,650,000 for fiscal year 1996;

5 ‘‘(B) for technical assistance grants under

6 paragraph (1)(B), $100,000 for fiscal year

7 1996; and

8 ‘‘(C) for a study grant under paragraph

9 (9), $250,000 for each of the fiscal years 1995

10 and 1996.’’.

11 SEC. 263. PUBLIC HOUSING MIDNIGHT BASKETBALL

12 LEAGUE PROGRAMS.

13 Section 520(c) of the Cranston-Gonzalez National Af14 fordable Housing Act (42 U.S.C. 11903a(c)) is amended

15 by adding at the end the following new paragraph:

16 ‘‘(3) MIDNIGHT BASKETBALL LEAGUE PRO17 GRAMS.—Notwithstanding any other provision of

18 this subsection and subsection (d), a grant under

19 this section may be used to carry out any youth

20 sports program that meets the requirements of a

21 midnight basketball league program under sub22 section (l)(4) (not including subparagraph (B) of

23 such subsection) if the program serves primarily

24 youths and young adults from the public housing
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1 project in which the program assisted by the grant

2 is operated.’’.

3 Subtitle H—Miscellaneous

4 Provisions

5 SEC. 271. STUDY OF OPERATING SUBSIDY PROGRAM.

6 (a) STUDY.—The Secretary shall conduct a study of

7 the operating subsidy program under section 9 of the

8 United States Housing Act of 1937. The study shall in9 clude examination of—

10 (1) how the program is being administered;

11 (2) alternatives to the current funding mecha12 nism of the program; and

13 (3) changes to improve the effectiveness of the

14 program.

15 (b) REPORT TO CONGRESS.—Not later than 1 year

16 after the date of enactment of this Act, the Secretary shall

17 submit to the Congress a report containing the results of

18 the study conducted under subsection (a).

19 SEC. 272. COMPOSITION OF BOARDS OF DIRECTORS OF

20 PHAS.

21 Section 2 of the United States Housing Act of 1937

22 (42 U.S.C. 1437) is amended—

23 (1) by striking ‘‘SEC. 2.’’ and inserting ‘‘SEC.

24 2. (a) IN GENERAL.—’’; and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(b) REQUIRED MEMBERSHIP.—Each board of direc4 tors of a public housing agency shall contain not less than

5 1 member who is a resident of a project operated by the

6 public housing agency.’’.

7 SEC. 273. ADVANCED TRAINING IN PUBLIC HOUSING MAN8 AGEMENT.

9 (a) ESTABLISHMENT.—

10 (1) IN GENERAL.—The Secretary shall establish

11 and conduct an annual public housing management

12 training institute to provide instruction on the fol13 lowing subjects, as they relate to public housing:

14 (A) Public housing management.

15 (B) Crime prevention and tenant security.

16 (C) Real estate law and procedure.

17 (D) Tax credit financing of low- and mod18 erate-income housing.

19 (E) Financial management.

20 (F) Such other subjects as the Secretary

21 may determine.

22 (2) CONTRACT AUTHORITY.—The Secretary

23 may contract with a private entity to conduct the

24 training institute established under this subsection.

25 (b) PARTICIPANTS.—
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1 (1) COMPETITION.—The Secretary shall estab2 lish a competition to select participants in each

3 training institute conducted under this section. The

4 selection criteria for such competition shall be de5 signed to ensure that the participants for each train6 ing institute include, to the extent possible—

7 (A) executive directors of public housing

8 agencies and their principal deputies;

9 (B) senior public housing executives and

10 managers;

11 (C) members of boards of directors of pub12 lic housing agencies; and

13 (D) public housing tenant leaders.

14 (2) PARTICIPANTS LIMITED.—Not more than

15 150 participants shall attend an executive training

16 institute held pursuant to this section.

17 (c) AUTHORIZATION.—There are authorized to be ap18 propriated to carry out this section such sums as may be

19 necessary for fiscal years 1995 and 1996.

20 SEC. 274. DEREGULATION OF PUBLIC HOUSING AGENCIES.

21 (a) PUBLIC HOUSING AGENCIES THAT OWN AND OP22 ERATE LESS THAN 100 DWELLING UNITS.—

23 (1) PUBLIC HOUSING MANAGEMENT REFORM.—

24 Section 6(j)(1) of the United States Housing Act of

25 1937 (42 U.S.C. 1437d(j)(1)) is amended—
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1 (A) by redesignating subparagraphs (A)

2 through (H) as clauses (i) through (viii), re3 spectively;

4 (B) by inserting immediately before clause

5 (i), as redesignated, the following new subpara6 graph:

7 ‘‘(A) For public housing agencies that own

8 and operate 100 or more public housing dwell9 ing units—’’; and

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

11 subparagraph:

12 ‘‘(B) For public housing agencies that own

13 and operate fewer than 100 public housing

14 dwelling units:

15 ‘‘(i) The number and percentage of

16 vacancies within an agency’s inventory, in17 cluding the progress that an agency has

18 made within the previous 3 years to reduce

19 such vacancies.

20 ‘‘(ii) The percentage of rents uncol21 lected.

22 ‘‘(iii) The ability of the agency to

23 produce and use accurate and timely

24 records of monthly income and expenses
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1 and to maintain at least a 3-month re2 serve.

3 ‘‘(iv) The annual inspection of occu4 pied units and the agency’s ability to re5 spond to maintenance work orders.

6 ‘‘(v) In the case of agencies receiving

7 funds under section 14 of this Act, the

8 percentage of such funds that are under

9 annual contributions contract to the public

10 housing agency and that remain unobli11 gated after 3 years.’’.

12 (2) OPERATING SUBSIDY.—Section 9(a) of the

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

14 1437g(a)) is amended—

15 (A) in the first sentence of paragraph

16 (3)(A), by inserting immediately after ‘‘pay17 ments under this section’’ the following: ‘‘to

18 public housing agencies that own and operate

19 100 or more public housing dwelling units’’;

20 and

21 (B) by adding at the end the following new

22 paragraph:

23 ‘‘(4) FORMULA.—

24 ‘‘(A) IN GENERAL.—The Secretary shall

25 make payments under this section (except for
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1 payments under paragraph (1)(B)) to public

2 housing agencies that own and operate fewer

3 than 100 public housing dwelling units on the

4 basis of a formula contained in regulations is5 sued by the Secretary after notice and oppor6 tunity for public comment.

7 ‘‘(B) REQUIREMENTS.—The formula de8 scribed in subparagraph (A) shall—

9 ‘‘(i) be established in consultation

10 with public housing agencies, be contained

11 in a regulation promulgated by the Sec12 retary before the start of any fiscal year to

13 which it applies;

14 ‘‘(ii) remain in effect for the duration

15 of such year without change; and

16 ‘‘(iii) provide for a reasonable transi17 tion from the method for determining oper18 ating subsidy under paragraph (3) to the

19 method contained in this paragraph.

20 ‘‘(C) THREE-YEAR PERIOD FOR AP21 PEALS.—The Secretary shall afford agencies

22 subject to this paragraph a 3-year period within

23 which to appeal the methodology used in the

24 formula established pursuant to this paragraph

25 as it pertains to the agency.’’.
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1 (b) HIGH-PERFORMING PUBLIC HOUSING AGEN2 CIES.—

3 (1) RETENTION OF SAVINGS FROM EFFICIENT

4 MANAGEMENT.—Section 6(e) the United States

5 Housing Act of 1937 (42 U.S.C. 1437d(e)) is

6 amended to read as follows:

7 ‘‘(e) TREATMENT OF SAVINGS.—

8 ‘‘(1) IN GENERAL.—Any income (other than

9 rental or investment income) generated by a high10 performing public housing agency that exceeds the

11 income estimated by the agency to be generated, ac12 cording to the agency’s annual operating budget,

13 shall be excluded in subsequent years in calculating

14 the amount of the operating subsidy provided under

15 section 9 to the agency. Such savings shall be re16 tained by the agency for other housing purposes.

17 ‘‘(2) HIGH-PERFORMING PUBLIC HOUSING

18 AGENCY.—For purposes of paragraph (1), the term

19 ‘high-performing public housing agency’ means, with

20 respect to a year, a public housing agency that has

21 been designated pursuant to subsection (j) as a

22 high-performing public housing agency for the most

23 recent fiscal year ending before the commencement

24 of such year.’’.
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1 (2) WAIVER OF RULES AND REPORTS.—Section

2 6(j) of the United States Housing Act of 1937 (42

3 U.S.C. 1437d(j)), as amended by subsection (a), is

4 amended by adding at the end the following new

5 paragraph:

6 ‘‘(5) WAIVER OF RULES AND REPORTS.—

7 ‘‘(A) IN GENERAL.—Except as provided in

8 subparagraph (B), the Secretary may, for pub9 lic housing agencies designated pursuant to

10 subsection (e) as high-performing public hous11 ing agencies with respect to a fiscal year, waive

12 (by regulation issued under subparagraph (C))

13 the applicability for the ensuing fiscal year of

14 regulatory requirements otherwise applicable to

15 public housing agencies to the extent appro16 priate, as determined by the Secretary, to facili17 tate more efficient operation of such agencies.

18 ‘‘(B) EXCEPTION.—The Secretary may not

19 waive the applicability of any provision—

20 ‘‘(i) limiting occupancy of public hous21 ing to low-income families;

22 ‘‘(ii) under section 18 requiring re23 placement of units in the case of demoli24 tion or disposition;
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1 ‘‘(iii) under the Uniform Relocation

2 Assistance and Real Property Acquisition

3 Policies Act of 1970;

4 ‘‘(iv) that prohibits, or the purpose of

5 which is to protect persons against, dis6 crimination on the basis of race, color, reli7 gion, sex, marital status, national origin,

8 age, or handicap, or that relates to fair

9 housing or equal opportunity; or

10 ‘‘(v) of chapter 75 of title 31, United

11 States Code.

12 ‘‘(C) WAIVER OF REGULATORY PROVI13 SIONS.—Not later than August 31, 1995, the

14 Secretary shall publish in the Federal Register

15 a proposed rule providing for the waiver of the

16 regulatory provisions to be waived pursuant to

17 this paragraph and identifying such provisions.

18 The Secretary shall publish such proposed rule

19 at a time during fiscal year 1995 determined by

20 the Secretary to be sufficient to provide notice

21 and an opportunity for public comment before

22 issuance of a final rule under this paragraph.’’.

23 (c) PHMAP MODERNIZATION FACTOR.—Section

24 6(j)(1)(A)(ii) of such Act (42 U.S.C. 1437d(j)(1)(A)(ii)),
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1 as redesignated by subsection (a)(2), is amended to read

2 as follows:

3 ‘‘(ii) The percentage of funds under

4 section 14 that are under annual contribu5 tions contract to the public housing agency

6 and that remain unobligated after 3

7 years.’’.

8 TITLE III—HOMEOWNERSHIP

9 Subtitle A—Expanded Single Fam10 ily Homeownership Opportuni11 ties

12 SEC. 301. MAXIMUM DOLLAR AMOUNT FOR FHA SINGLE

13 FAMILY MORTGAGES.

14 Subparagraph (A) of the first sentence of section

15 203(b)(2) of the National Housing Act (12 U.S.C.

16 1709(b)(2)) is amended by striking clause (ii) and all that

17 follows through ‘‘May 12, 1992;’’ and inserting the follow18 ing—

19 ‘‘(ii) 75 percent of the dollar amount

20 limitation determined under section

21 305(a)(2) of the Federal Home Loan

22 Mortgage Corporation Act for a residence

23 of the applicable size;

24 except that the applicable dollar amount limita25 tion in effect for any area under this subpara-
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•S 2281 PCS

1 graph may not be less than the greater of the

2 dollar amount limitation in effect under this

3 section for the area on the date of enactment

4 of the Housing Choice and Community Invest5 ment Act of 1994 or 38 percent of the dollar

6 amount limitation determined under section

7 305(a)(2) of the Federal Home Loan Mortgage

8 Corporation Act for a residence of the applica9 ble size;’’.

10 SEC. 302. STREAMLINED REFINANCING FOR HUD-HELD

11 MORTGAGES.

12 (a) MISCELLANEOUS HOUSING INSURANCE.—Section

13 223 of the National Housing Act (12 U.S.C. 1715n(a))

14 is amended—

15 (1) in subsection (a)—

16 (A) in paragraph (7), by striking the colon

17 immediately preceding the second proviso and

18 all that follows through ‘‘; or’’ and inserting a

19 semicolon;

20 (B) in paragraph (8), by striking the pe21 riod at the end and inserting ‘‘; or’’; and

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

23 paragraph:

24 ‘‘(9) given to refinance a mortgage held by the

25 Secretary, upon such terms and conditions as the
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1 Secretary may prescribe, covering property on which

2 there is located a 1- to 4-family residence, or a 1-

3 family unit in a condominium project, which mort4 gage was formerly insured under this Act and subse5 quently assigned to the Secretary pursuant to sec6 tion 230 if—

7 ‘‘(A) the mortgagor has not previously refi8 nanced a mortgage pursuant to this paragraph;

9 ‘‘(B) the mortgagor has made all payments

10 due under the note secured by the existing

11 mortgage and all payments due under the note

12 for not less than the immediately preceding 6

13 months, or the mortgagor is under a forbear14 ance agreement and has made all payments due

15 under the note secured by the existing mort16 gage for not less than the immediately preced17 ing 6 months;

18 ‘‘(C) the principal amount of the refinanc19 ing mortgage does not exceed the outstanding

20 principal balance of the existing mortgage by

21 more than additional amounts owed by the

22 mortgagor due to the delinquency and to the re23 ceipt of assignment assistance under section

24 230;
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1 ‘‘(D) the monthly payment due under the

2 refinancing mortgage does not exceed the

3 monthly payment due under the existing mort4 gage;

5 ‘‘(E) the refinancing mortgage has a term

6 of not more than 12 years in excess of the

7 unexpired term of the assigned mortgage; and

8 ‘‘(F) the refinancing mortgage is insured

9 under section 203(b) or 221(d)(2), at the op10 tion of the mortgagee, or under section 234(c)

11 in the case of a condominium.’’; and

12 (2) by adding at the end the following new sub13 section:

14 ‘‘(h) MATURITY AND PRINCIPAL OBLIGATIONS OF

15 MORTGAGES.—A mortgage of the character described in

16 paragraphs (1) through (6) of subsection (a) shall have

17 a maturity and a principal obligation not in excess of the

18 maximums prescribed under the applicable section or title

19 of this Act, except that in no case may the principal obli20 gation of a mortgage referred to in subsection (a)(5) ex21 ceed 90 percent of the appraised value of the mortgage

22 property, and shall bear interest at such rate as may be

23 agreed upon by the mortgagor and the mortgagee.’’.

24 (b) IMPLEMENTATION.—The Secretary may imple25 ment the authority to refinance a mortgage held by the
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•S 2281 PCS

1 Secretary under section 223(a)(9) of the National Hous2 ing Act, as added by subsection (a), by notice published

3 in the Federal Register setting forth such requirements

4 as may be necessary.

5 (c) LIMITATIONS ON AUTHORITY.—The authority to

6 refinance a mortgage held by the Secretary under section

7 223(a)(9) of the National Housing Act, as added by sub8 section (a), shall terminate 30 months after the date of

9 enactment of this Act.

10 SEC. 303. INNOVATIVE AFFORDABLE HOUSING DEM11 ONSTRATIONS.

12 Title II of the National Housing Act (12 U.S.C. 1707

13 et seq.) is amended by adding at the end the following

14 new section:

15 ‘‘SEC. 256. INNOVATIVE AFFORDABLE HOUSING DEM16 ONSTRATIONS.

17 ‘‘(a) AUTHORIZATION.—Notwithstanding any other

18 provision of this Act, the Secretary may carry out dem19 onstrations in accordance with this section that increase

20 homeownership opportunities through—

21 ‘‘(1) the insurance under this title of alternative

22 mortgage instruments; and

23 ‘‘(2) partnerships with—

24 ‘‘(A) the Federal Home Loan Mortgage

25 Corporation;
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•S 2281 PCS

1 ‘‘(B) the Federal National Mortgage Asso2 ciation;

3 ‘‘(C) the Federal Home Loan Banks and

4 their members;

5 ‘‘(D) State and local housing finance agen6 cies; and

7 ‘‘(E) private mortgage insurance compa8 nies.

9 ‘‘(b) ELIGIBLE DEMONSTRATIONS.—The demonstra10 tions under this section shall be approved by the Secretary

11 only if they increase homeownership opportunities for fam12 ilies with incomes that do not exceed the median income

13 for the area (as determined by the Secretary and adjusted

14 for family size), stabilize or revitalize neighborhoods, or

15 address special needs by—

16 ‘‘(1) testing the pricing of alternative mortgage

17 instruments; or

18 ‘‘(2) facilitating partnerships between the Sec19 retary and the entities described in subsection

20 (a)(2), pursuant to which mortgage insurance pro21 vided by the Secretary will be used as a credit en22 hancement in connection with the mortgage lending

23 and secondary market activities of such entities (in24 cluding activities under paragraph (1)), except that

25 such partnerships may be entered into only if they
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1 result in an equitable allocation of the risks and ben2 efits of the demonstration among the Secretary and

3 the participating entities.

4 Such demonstrations shall be subject to the requirements

5 of section 203(b) with respect to the maximum mortgage

6 amount and downpayment requirements.

7 ‘‘(c) LIMITATIONS.—Each demonstration under this

8 section may be approved for a term of not more than 3

9 years. The term of an insured mortgage or activity may

10 extend beyond the term of the demonstration. The total

11 mortgage amount insured pursuant to demonstrations

12 under this section may not exceed $1,000,000,000 for

13 each fiscal year.

14 ‘‘(d) AUTHORIZATION.—There are authorized to be

15 appropriated such sums as may be necessary to cover the

16 costs to the Federal Government under section 502 of the

17 Federal Credit Reform Act of 1990 resulting from losses

18 apportioned to the Secretary under the demonstrations

19 conducted pursuant to this section.

20 ‘‘(e) REPORTS TO CONGRESS.—

21 ‘‘(1) INITIAL REPORT.—Prior to commencing

22 each demonstration under this section, the Secretary

23 shall submit to the Committee on Banking, Housing,

24 and Urban Affairs of the Senate and the Committee

25 on Banking, Finance and Urban Affairs of the
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1 House of Representatives a report containing a de2 tailed description of the purpose and scope of the

3 demonstration.

4 ‘‘(2) PROGRESS REPORT.—For each demonstra5 tion under this section, the Secretary shall prepare

6 an annual progress report to be included in the an7 nual management report submitted to Congress by

8 the Federal Housing Administration.

9 ‘‘(3) FINAL REPORT.—Not later than 6 months

10 after the completion of each demonstration, the Sec11 retary shall submit a report to the Committee on

12 Banking, Housing, and Urban Affairs of the Senate

13 and the Committee on Banking, Finance and Urban

14 Affairs of the House of Representatives describing

15 the results of the demonstration and making any

16 recommendations for legislation.

17 ‘‘(f) DEFINITION.—For purposes of this section, the

18 term ‘alternative mortgage instrument’ means an instru19 ment secured by an interest in residential real property,

20 a dwelling, all stock allocated to a dwelling unit in a resi21 dential cooperative housing corporation, or a residential

22 manufactured home (as that term is defined in section 603

23 of the National Manufactured Home Construction and

24 Safety Standards Act of 1974)—
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1 ‘‘(1) in which the interest rate or finance

2 charge may be adjusted or renegotiated;

3 ‘‘(2) involving a fixed-rate, but which implicitly

4 permits rate adjustments by having the debt mature

5 at the end of an interval shorter than the term of

6 the amortization schedule; or

7 ‘‘(3) involving any similar type of rate, method

8 of determining return, term, repayment, or other

9 variation not common to traditional fixed-rate, fixed10 term transactions, including transactions that in11 volve the sharing of equity or appreciation; described

12 and defined by applicable regulation.’’.

13 SEC. 304. SINGLE FAMILY RISK-SHARING MORTGAGE IN14 SURANCE PROGRAM.

15 (a) AUTHORIZATION.—Title II of the National Hous16 ing Act (42 U.S.C. 1701 et seq.), as amended by section

17 303, is amended by adding the following new section:

18 ‘‘SEC. 257. SINGLE FAMILY RISK-SHARING WITH STATE AND

19 LOCAL AGENCIES.

20 ‘‘(a) AUTHORITY.—

21 ‘‘(1) IN GENERAL.—The Secretary may insure

22 and make commitments to insure mortgages on sin23 gle family properties in high cost areas under risk24 sharing mortgage insurance programs established

25 with one or more States or State or local agencies
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1 in accordance with this section. Only mortgages exe2 cuted in connection with the acquisition of a single

3 family property or the refinancing of a mortgage in4 sured under this section shall be eligible.

5 ‘‘(2) RISK-SHARING.—Under the risk-sharing

6 programs authorized under paragraph (1), the Sec7 retary shall insure a portion of the mortgage and the

8 State or the State or local agency shall insure the

9 remainder of the mortgage. In each risk-sharing

10 agreement between the Secretary and the State or

11 the State or local agency, the State or the State or

12 local agency shall be in a position subordinate to

13 that of the Secretary.

14 ‘‘(b) PURPOSES.—The purposes of the programs au15 thorized under this section are—

16 ‘‘(1) to increase the availability of single family

17 mortgage financing in areas in which there is need

18 for mortgage insurance under this Act that cannot

19 be met due to particularly high average median

20 house prices in the area; and

21 ‘‘(2) to foster arrangements with States and

22 State and local agencies to share the risk of insuring

23 mortgages on properties located in high cost areas.

24 ‘‘(c) APPLICATIONS.—
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1 ‘‘(1) APPROVAL.—The Secretary may approve

2 an application submitted by a State or a State or

3 local agency to establish a risk-sharing program

4 under this section, based on a determination that

5 the State or State or local agency has demonstrated

6 that the State or State or local agency—

7 ‘‘(A) has the authority to participate in the

8 risk-sharing mortgage insurance program;

9 ‘‘(B) has carried out, or has the potential

10 to carry out, a financially sound, efficient, and

11 effective mortgage insurance program;

12 ‘‘(C) has the ongoing administrative and

13 financial capacity necessary to carry out a pro14 gram under this section, including the capacity

15 to maintain a top tier or equivalent rating; and

16 ‘‘(D) will set aside reserves or provide

17 other equivalent financial guarantees to cover

18 its share of losses in the program under this

19 section.

20 ‘‘(2) CANCELLATION OF APPROVAL.—

21 ‘‘(A) IN GENERAL.—The Secretary may

22 cancel the approval of a State or State or local

23 agency made under paragraph (1)—

24 ‘‘(i) if the Secretary determines that

25 the State or State or local agency has vio-
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1 lated the requirements or procedures of the

2 risk-sharing agreement between the State

3 or State or local agency and the Secretary;

4 or

5 ‘‘(ii) for other good cause, as deter6 mined by the Secretary.

7 ‘‘(B) EFFECTIVE DATE.—A cancellation of

8 approval under this paragraph shall take effect

9 on the later of—

10 ‘‘(i) the date on which the State or

11 State or local agency receives notice from

12 the Secretary of such cancellation; and

13 ‘‘(ii) a date specified by the Secretary.

14 ‘‘(C) NONREVIEWABILITY.—A decision by

15 the Secretary to cancel approval under this

16 paragraph—

17 ‘‘(i) shall be final and conclusive and

18 shall not be subject to judicial review; and

19 ‘‘(ii) shall not affect risk-sharing

20 agreements between the Secretary and the

21 State or State or local agency executed on

22 or before the date of such cancellation.

23 ‘‘(d) DELEGATION OF AUTHORITY TO INSURE.—The

24 Secretary shall delegate the authority to insure and make

25 commitments to insure the portion of mortgages to be in-
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1 sured by the Secretary under this section to a State or

2 State or local agency pursuant to a risk-sharing agreement

3 with the State or State or local agency. The risk-sharing

4 agreement shall contain such terms and conditions to

5 which the Secretary and the State or State or local agency

6 agree.

7 ‘‘(e) UNDERWRITING STANDARDS AND LOAN TERMS

8 AND CONDITIONS.—For purposes of underwriting loans to

9 be insured under this section, the State or State or local

10 agency shall adopt underwriting standards and loan terms

11 and conditions. Such standards, terms, and conditions

12 shall be no less stringent than those required under sec13 tion 203(b) and shall be subject to the approval of the

14 Secretary.

15 ‘‘(f) MORTGAGE INSURANCE PREMIUMS.—

16 ‘‘(1) IN GENERAL.—The State or State or local

17 agency shall require the payment of mortgage insur18 ance premiums by mortgagors.

19 ‘‘(2) SHARING.—The Secretary shall establish

20 policies and procedures for the sharing of premiums

21 between the Secretary and the State or State or

22 local agency, based on the relative risk to, and ad23 ministrative costs incurred by, the Secretary and the

24 State or State or local agency. The share of mort25 gage insurance premiums paid to the Secretary shall
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1 not be less than an amount necessary to cover the

2 risk to, and administrative costs incurred by, the

3 Secretary.

4 ‘‘(g) ELIGIBLE MORTGAGES.—

5 ‘‘(1) ELIGIBLE HIGH COST AREAS.—The Sec6 retary may insure mortgages under this section only

7 if such mortgages cover single family properties lo8 cated in areas in which 95 percent of the median 1-

9 family house prices in the area exceeds the maxi10 mum amount the Secretary may insure under sec11 tion 203(b)(2)(A)(ii).

12 ‘‘(2) LIMITATIONS ON MORTGAGE AMOUNT.—

13 ‘‘(A) AMOUNT INSURED BY THE SEC14 RETARY.—The total mortgage amount insured

15 under this section by the Secretary may not ex16 ceed an amount equal to the lesser of—

17 ‘‘(i) 80 percent of the appraised value

18 of the property; or

19 ‘‘(ii) the maximum amount the Sec20 retary may insure under section 203(b) of

21 this Act for the area (but not including

22 any amount for a mortgage insurance pre23 mium).
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1 ‘‘(B) MAXIMUM AMOUNT INSURED UNDER

2 THIS SECTION.—The total principal amount of

3 a mortgage insured under this section—

4 ‘‘(i) shall exceed the maximum

5 amount the Secretary may insure under

6 subparagraph (A) of the first sentence of

7 section 203(b)(2) for the area; and

8 ‘‘(ii) may not exceed the conforming

9 loan limitation determined under section

10 305(a)(2) of the Federal Home Loan

11 Mortgage Corporation Act for a residence

12 of the applicable size, as adjusted annually.

13 ‘‘(C) AMOUNT INSURED BY THE STATE OR

14 STATE OR LOCAL AGENCY.—The total mortgage

15 amount insured under this section by the State

16 or State or local agency shall be the difference

17 between the mortgage amount and the maxi18 mum amount the Secretary may insure under

19 subparagraph (A) of the first sentence of sec20 tion 203(b)(2) for the area.

21 ‘‘(D) ADDITIONAL RESTRICTION.—The

22 principal obligation of a mortgage may not ex23 ceed the amount equal to the sum of—
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1 ‘‘(i) the amount determined in accord2 ance with subparagraph (B) of the first

3 sentence of section 203(b)(2); and

4 ‘‘(ii) the mortgage insurance pre5 mium.

6 ‘‘(3) REFINANCING.—Notwithstanding para7 graph (2), in the case of refinancing of an existing

8 mortgage insured under this section, the principal

9 obligation of a refinancing mortgage may not exceed

10 the amount equal to the sum of—

11 ‘‘(i) the outstanding principal balance

12 of the existing mortgage; and

13 ‘‘(ii) any mortgage insurance pre14 mium.

15 ‘‘(h) INSURANCE CLAIMS.—

16 ‘‘(1) IN GENERAL.—In the case of a default

17 and foreclosure of a mortgage insured under this

18 section, the mortgagee may file a claim with the

19 State or State or local agency for insurance benefits

20 in accordance with requirements established by the

21 State or State or local agency and approved by the

22 Secretary. The State or State or local agency shall

23 pay the full amount of the claim owed to the mort24 gagee. If the loss on the insured mortgage exceeds

25 the amount insured by the State or State or local
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1 agency, the Secretary shall reimburse the State or

2 State or local agency for the difference.

3 ‘‘(2) GENERAL INSURANCE FUND.—The insur4 ance of a mortgage under this section by the Sec5 retary shall be an obligation of the General Insur6 ance Fund created pursuant to section 519.

7 ‘‘(i) INAPPLICABILITY OF THE ASSIGNMENT AND

8 FORECLOSURE PROGRAMS.—Section 230 shall not apply

9 to mortgages insured under a program authorized by this

10 section. The Secretary shall not otherwise acquire any

11 property securing a mortgage insured under this section.

12 ‘‘(j) LIMITATION.—The total mortgage amount in13 sured under this section may not exceed $750,000,000 for

14 each fiscal year.

15 ‘‘(k) DEFINITIONS.—For purposes of this section, the

16 following definitions shall apply:

17 ‘‘(1) LOCAL AGENCY.—The term ‘local agency’

18 means an agency of a unit of general local govern19 ment, as defined by the Secretary, that has the au20 thority to participate with the Secretary in the single

21 family risk-sharing program under this section, or

22 an agency or instrumentality of a local agency if the

23 agency or instrumentality has such authority.

24 ‘‘(2) STATE AGENCY.—The term ‘State agency’

25 means an agency of a State that has the authority
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1 to participate with the Secretary in the single family

2 risk-sharing program under this section, or an agen3 cy or instrumentality of a State agency if the agency

4 or instrumentality has such authority.

5 ‘‘(3) SINGLE FAMILY PROPERTY.—The term

6 ‘single family property’ means a property upon

7 which there is located a 1- to 4-family dwelling de8 signed principally for occupancy by the borrower,

9 and includes a condominium and a cooperative.

10 ‘‘(4) STATE.—The term ‘State’ means the sev11 eral States and Puerto Rico, the District of Colum12 bia, Guam, the Trust Territory of the Pacific Is13 lands, American Samoa, and the Virgin Islands.’’.

14 (b) IMPLEMENTATION.—The Secretary shall, by pro15 posed rule published in the Federal Register, establish

16 such requirements as may be necessary to carry out this

17 section. Not later than 12 months after the date of enact18 ment of this Act, the Secretary shall issue final regulations

19 based on the proposed rule after notice and opportunity

20 for public comment.

21 SEC. 305. HOMEOWNERSHIP COUNSELING AND OUTREACH.

22 (a) IN GENERAL.—Section 106(a) of the Housing

23 and Urban Development Act of 1968 (12 U.S.C.

24 1701x(a)) is amended—

25 (1) in paragraph (1)—
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1 (A) in the matter preceding clause (i), by

2 inserting ‘‘or consortia of organizations’’ after

3 ‘‘organizations’’;

4 (B) in clause (iii), by striking ‘‘and’’ at the

5 end;

6 (C) in clause (iv), by striking the period at

7 the end and inserting ‘‘; and’’; and

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

9 clause:

10 ‘‘(v) the provision of outreach activi11 ties designed to improve the access of low12 and moderate-income households to home13 ownership opportunities and sources of

14 mortgage credit.’’;

15 (2) in the second sentence of paragraph (2)—

16 (A) by striking ‘‘clause (iii)’’ and inserting

17 ‘‘clauses (iii) and (v)’’; and

18 (B) by inserting after ‘‘organizations’’ the

19 following: ‘‘or consortia of organizations’’; and

20 (3) by striking paragraph (3) and inserting the

21 following:

22 ‘‘(3) CONTRACTING AUTHORITY.—The Sec23 retary may contract with national, State, or commu24 nity-based entities, and consortia of such entities, to

25 carry out activities under paragraph (1)(v). Contrac-
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1 tors shall be selected on a competitive basis, in ac2 cordance with selection criteria determined by the

3 Secretary. The contractors shall carry out activities

4 prescribed by the Secretary, including—

5 ‘‘(A) leveraging Federal funds with other

6 sources of funding to support activities under

7 the contractor’s counseling program, including

8 leveraging private resources for the purpose of

9 assisting prospective mortgagors achieve home10 ownership;

11 ‘‘(B) conducting outreach and marketing

12 to prospective homebuyers, particularly those in

13 neighborhoods with a high proportion of low14 and moderate-income and minority renter

15 households;

16 ‘‘(C) implementing a coordinated

17 prepurchase homeownership strategy that—

18 ‘‘(i) links other HUD-approved coun19 seling providers and community-based or20 ganizations;

21 ‘‘(ii) assists prospective homebuyers to

22 repair credit;

23 ‘‘(iii) educates potential homebuyers

24 on the requirements of homeownership;

25 ‘‘(iv) provides technical assistance;
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1 ‘‘(v) assists in the packaging of mort2 gage loan applications;

3 ‘‘(vi) matches a family’s resources

4 with appropriate Government and private

5 sector homeownership assistance programs;

6 and

7 ‘‘(vii) offers post-purchase and de8 fault-prevention counseling; and

9 ‘‘(D) working with the mortgage lending

10 industry to overcome mortgage credit barriers

11 to potential homebuyers.’’.

12 (b) REPEAL OF TERMINATION PROVISIONS.—Section

13 106 of the Housing and Urban Development Act of 1968

14 (12 U.S.C. 1701x) is amended by striking—

15 (1) subsection (a)(3);

16 (2) paragraphs (8) and (9) of subsection (c);

17 (3) paragraphs (12) and (13) of subsection (d);

18 and

19 (4) subsection (f)(7).

20 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

21 106 of the Housing and Urban Development Act of 1968

22 (12 U.S.C. 1701x) is amended by adding at the end the

23 following new subsection:

24 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

25 are authorized to be appropriated for the purposes of this
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1 section, $25,000,000 for fiscal year 1995, and

2 $25,750,000 for fiscal year 1996. Any amounts so appro3 priated shall remain available until expended.’’.

4 SEC. 306. DELEGATION OF INSURING AUTHORITY TO DI5 RECT ENDORSEMENT MORTGAGEES.

6 Title II of the National Housing Act (12 U.S.C. 1707

7 et seq.), as amended by sections 303 and 304, is amended

8 by adding at the end the following new section:

9 ‘‘SEC. 258. DELEGATION OF INSURING AUTHORITY TO DI10 RECT ENDORSEMENT MORTGAGEES.

11 ‘‘(a) IN GENERAL.—

12 ‘‘(1) AUTHORITY.—The Secretary may dele13 gate, to one or more mortgagees approved by the

14 Secretary under the direct endorsement program,

15 the authority of the Secretary under this Act to in16 sure mortgages involving property upon which there

17 is located a dwelling designed principally for occu18 pancy by 1 to 4 families.

19 ‘‘(2) FACTORS CONSIDERED IN MAKING DETER20 MINATION.—In determining whether to delegate au21 thority to a mortgagee under this subsection, the

22 Secretary shall take into account—

23 ‘‘(A) the experience and performance of

24 the mortgagee under the direct endorsement

25 program;
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1 ‘‘(B) the default rate of insured mortgages

2 originated by the mortgagee compared to the

3 default rate of all insured mortgages in com4 parable markets; and

5 ‘‘(C) such other factors as the Secretary

6 determines appropriate to minimize risk of loss

7 to the insurance funds under this Act.

8 ‘‘(3) RESTRICTION.—The Secretary shall not

9 delegate insuring authority pursuant to this section

10 to a mortgagee approved under the direct endorse11 ment program if the mortgagee has experienced a

12 default rate on mortgages insured by the Secretary

13 that exceeds the national default rate on such mort14 gages.

15 ‘‘(b) INDEMNIFICATION.—

16 ‘‘(1) IN GENERAL.—If the Secretary determines

17 that a mortgage insured by a mortgagee pursuant to

18 a delegation of authority under this section was not

19 originated in accordance with the requirements es20 tablished by the Secretary, and the Secretary pays

21 an insurance claim with respect to the mortgage

22 within a reasonable period specified by the Sec23 retary, the Secretary shall require the mortgagee ap24 proved under this section to indemnify the Secretary

25 for the loss.
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1 ‘‘(2) FRAUD OR MISREPRESENTATION.—Not2 withstanding paragraph (1), if fraud or misrepresen3 tation is involved in connection with the origination

4 of the mortgage, the Secretary shall require the

5 mortgagee approved under this section to indemnify

6 the Secretary for the loss regardless of when the in7 surance claim is paid.

8 ‘‘(c) CANCELLATION.—For a violation of require9 ments and procedures established by the Secretary or for

10 other good cause, the Secretary may cancel a delegation

11 of authority under this section by giving notice to the

12 mortgagee. The cancellation shall be effective immediately

13 upon receipt of the notice by the mortgagee. A decision

14 by the Secretary to cancel a delegation shall be final and

15 conclusive and shall not be subject to judicial review.

16 ‘‘(d) REGULATIONS.—The Secretary shall issue regu17 lations establishing requirements and procedures for the

18 delegation of authority pursuant to this section, and proce19 dures governing the indemnification of the Secretary by

20 the mortgagee.’’.
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1 Subtitle B—Miscellaneous

2 Provisions

3 SEC. 311. NATIONAL HOMEOWNERSHIP FUND DEMONSTRA4 TION.

5 Subtitle A of title III of the Cranston-Gonzalez Na6 tional Affordable Housing Act (42 U.S.C. 12851 et seq.)

7 is amended to read as follows:

8 ‘‘Subtitle A—National Homeowner9 ship Fund Demonstration

10 ‘‘SEC. 301. SHORT TITLE.

11 ‘‘This subtitle may be cited as the ‘National Home12 ownership Fund Demonstration Act’.

13 ‘‘SEC. 302. PROGRAM AUTHORITY.

14 ‘‘(a) IN GENERAL.—The Secretary may provide

15 grants in accordance with the provisions of this subtitle

16 to States, units of general local government, and private

17 or public nonprofit organizations. Such grants shall be

18 used to provide first-time homebuyers (including home19 buyers buying shares in limited equity cooperatives) with

20 one or more of the following types of assistance:

21 ‘‘(1) CLOSING COST ASSISTANCE.—Assistance

22 payments through grantees to provide amounts for

23 downpayments, closing, and other costs payable at

24 the time of closing.
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1 ‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist2 ance payments through grantees to provide second

3 mortgages.

4 ‘‘(3) CAPITALIZATION OF REVOLVING LOAN

5 FUNDS.—Revolving loan funds established by grant6 ees that are public agencies or nonprofit organiza7 tions to provide homeownership assistance consistent

8 with the requirements of this subtitle. Such grants

9 shall be matched by an equal amount of State or

10 local investment. Any proceeds or repayments from

11 loans made under this paragraph shall be returned

12 to the revolving loan fund established under this

13 paragraph to be used for purposes related to this

14 section.

15 ‘‘(b) ELIGIBILITY REQUIREMENTS.—Assistance pay16 ments under this subtitle may be made only if the follow17 ing requirements are met:

18 ‘‘(1) FIRST-TIME HOMEBUYER.—The home19 buyer is an individual who—

20 ‘‘(A) (and whose spouse) has had no own21 ership in a principal residence during the 3-year

22 period ending on the date of purchase of the

23 property with respect to which assistance pay24 ments are made under this subtitle;
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1 ‘‘(B) is a displaced homemaker who, except

2 for owning a home with his or her spouse or re3 siding in a home owned by the spouse, meets

4 the requirements of subparagraph (A); or

5 ‘‘(C) is a single parent who, except for

6 owning a home with his or her spouse or resid7 ing in a home owned by the spouse while mar8 ried, meets the requirements of subparagraph

9 (A).

10 ‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The

11 aggregate annual income of the homebuyer and the

12 members of the family of the homebuyer residing

13 with the homebuyer does not exceed 80 percent of

14 the area median income adjusted for family size.

15 ‘‘(3) PRINCIPAL RESIDENCE.—The property se16 curing the mortgage is a single family residence,

17 manufactured housing unit, or unit in a cooperative

18 or condominium and is the principal residence of the

19 homebuyer.

20 ‘‘(4) MAXIMUM MORTGAGE AMOUNT.—The

21 principal obligation of the first mortgage and any

22 second mortgage assistance provided under this sub23 title does not exceed the principal amount authorized

24 to be insured with respect to the property under sec25 tion 203(b) of the National Housing Act.
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1 ‘‘(c) TERMS OF ASSISTANCE.—

2 ‘‘(1) IN GENERAL.—A grantee may provide as3 sistance under this subtitle in the form of grants,

4 loans, or periodic assistance payments.

5 ‘‘(2) SECURITY.—If assistance payments under

6 this subtitle are secured by a lien on the property in7 volved, such lien shall be subordinate to all mort8 gages existing on the property on the date on which

9 the first assistance payment is made.

10 ‘‘(3) REPAYMENT IF PROPERTY CEASES TO BE

11 PRINCIPAL RESIDENCE.—If the property for which

12 assistance payments are made ceases to be the prin13 cipal residence of the first-time homebuyer (or the

14 family of the homebuyer), the grantee may require

15 the repayment of all or a portion of the assistance

16 payments.

17 ‘‘(d) ALLOCATION.—

18 ‘‘(1) IN GENERAL.—Each applicant shall sub19 mit an application in such form and in accordance

20 with such procedures as the Secretary shall estab21 lish.

22 ‘‘(2) MINIMUM REQUIREMENTS.—An applica23 tion under this section shall contain a plan that de24 scribes how the applicant will achieve the objectives
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1 of this subtitle. The application shall contain a de2 scription of—

3 ‘‘(A) the geographic area to be covered;

4 ‘‘(B) the characteristics of the households

5 to be served;

6 ‘‘(C) any other public and private re7 sources available in connection with assistance

8 under this subtitle;

9 ‘‘(D) any secondary market involvement

10 and commitment;

11 ‘‘(E) any nontraditional capital resources;

12 ‘‘(F) the prepurchase counseling assistance

13 and post-purchase homeownership counseling to

14 be made available to the borrower;

15 ‘‘(G) any restrictions on resale and profits;

16 ‘‘(H) resources available to undertake re17 habilitation of properties when needed;

18 ‘‘(I) the process for award and disburse19 ment of funds to borrowers; and

20 ‘‘(J) the past history of the applicant in

21 undertaking similar projects.

22 ‘‘(3) ESCROW FOR REPAIRS.—An applicant may

23 be required by the Secretary to establish escrow pro24 cedures for the regular collection of funds from bor25 rowers for use by the borrower to undertake reha-
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1 bilitation of properties. Such procedures shall in2 clude procedures for the return of escrow amounts

3 to the borrower upon the sale of the house, for emer4 gencies, and for other reasons as determined by the

5 applicant and the borrower. An escrow account shall

6 bear interest at the passbook rate for the benefit of

7 the borrower.

8 ‘‘(4) SELECTION.—Amounts available in any

9 fiscal year for assistance under this subtitle shall be

10 allocated to States (including State agencies), units

11 of general local government, or public or private

12 nonprofit organizations through a national competi13 tion in accordance with criteria established by the

14 Secretary. These criteria shall include—

15 ‘‘(A) the extent to which the applicant has

16 experience in providing homeownership assist17 ance to low- and moderate-income households;

18 ‘‘(B) the extent of homeownership needs in

19 the area; and

20 ‘‘(C) the lack of alternative forms of credit

21 for first-time homebuyers in the area.

22 ‘‘SEC. 303. DEFINITIONS.

23 ‘‘For purposes of this subtitle, the following defini24 tions shall apply:
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1 ‘‘(1) DISPLACED HOMEMAKER.—The term ‘dis2 placed homemaker’ means an individual who—

3 ‘‘(A) is an adult;

4 ‘‘(B) has not worked full-time in the labor

5 force for a number of years, but has during

6 such years, worked primarily without remunera7 tion to care for the home and family; and

8 ‘‘(C) is unemployed or underemployed, as

9 determined by the Secretary, and is experienc10 ing difficulty in obtaining or upgrading employ11 ment.

12 ‘‘(2) SINGLE PARENT.—The term ‘single par13 ent’ means an individual who—

14 ‘‘(A) is unmarried or legally separated

15 from a spouse; and

16 ‘‘(B)(i) has 1 or more minor children for

17 whom the individual has custody or joint cus18 tody; or

19 ‘‘(ii) is pregnant.

20 ‘‘(3) SECRETARY.—The term ‘Secretary’ means

21 the Secretary of Housing and Urban Development.

22 ‘‘(4) STATE.—The term ‘State’ means any of

23 the States of the United States, the District of Co24 lumbia, the Commonwealth of Puerto Rico, the Com25 monwealth of the Northern Mariana Islands, Guam,
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1 the Virgin Islands, American Samoa, the Trust Ter2 ritory of the Pacific Islands, and any other territory

3 or possession of the United States.

4 ‘‘(5) UNIT OF GENERAL LOCAL GOVERN5 MENT.—The term ‘unit of general local government’

6 has the same meaning as in section 102(a) of the

7 Housing and Community Development Act of 1974.

8 ‘‘(6) NONPROFIT ORGANIZATION.—The term

9 ‘nonprofit organization’ means an organization—

10 ‘‘(A) no part of the net earnings of which

11 inures to the benefit of any member, founder,

12 contributor, or individual;

13 ‘‘(B) that has a voluntary board;

14 ‘‘(C) that has an accounting system, or has

15 designated a fiscal agent in accordance with re16 quirements established by the Secretary; and

17 ‘‘(D) that practices nondiscrimination in

18 the provision of assistance.

19 ‘‘SEC. 304. REPORT.

20 ‘‘Not later than 6 months following the last obligation

21 of assistance by grantees under this subtitle, the Secretary

22 shall submit to the Committee on Banking, Housing, and

23 Urban Affairs of the Senate and the Committee on Bank24 ing, Finance and Urban Affairs of the House of Rep25 resentatives a report containing a description of the activi-
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1 ties carried out under this subtitle and an analysis of the

2 effectiveness of such assistance in assisting first-time

3 homebuyers.

4 ‘‘SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

5 ‘‘There are authorized to be appropriated for assist6 ance payments under this subtitle $50,000,000 for fiscal

7 year 1995 and $50,000,000 for fiscal year 1996. Amounts

8 appropriated under this section shall remain available

9 until expended.’’.

10 SEC. 312. SECTION 235 REFINANCING.

11 Section 235(r) of the National Housing Act (12

12 U.S.C. 1715z(r)) is amended—

13 (1) in paragraph (2)(C), by inserting before the

14 semicolon the following: ‘‘, plus the costs incurred in

15 connection with the refinancing as described in para16 graph (4)(B), to the extent that the amount for

17 those costs is not otherwise included in the interest

18 rate permitted by subparagraph (E), or paid by the

19 Secretary as authorized by paragraph (4)(B)’’;

20 (2) in paragraph (4)—

21 (A) by inserting ‘‘and the mortgagee with

22 respect to the amount described in subpara23 graph (A)’’ after ‘‘otherwise)’’; and

24 (B) in subparagraph (A), by inserting

25 ‘‘and the mortgagee’’ after ‘‘mortgagor’’; and
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1 (3) by striking paragraph (5) and inserting the

2 following:

3 ‘‘(5) USE OF RECAPTURED AMOUNTS.—The

4 Secretary shall use amounts of budget authority re5 captured from assistance payments contracts relat6 ing to mortgages that are being refinanced for as7 sistance payments contracts with respect to mort8 gages insured under this subsection. The Secretary

9 may also make such recaptured amounts available

10 for incentives under paragraph (4)(A) and the costs

11 incurred in connection with the refinancing under

12 paragraph (4)(B). For purposes of subsection

13 (c)(3)(A), the amount of recaptured budget author14 ity that the Secretary commits for assistance pay15 ments contracts relating to mortgages insured under

16 this subsection and for amounts paid under para17 graph (4) shall not be construed as ‘unused’.’’.

18 SEC. 313. ENERGY EFFICIENT MORTGAGES PILOT PRO19 GRAM.

20 Section 513(a)(1) of the Housing and Community

21 Development Act of 1992 (42 U.S.C. 12712 note) is

22 amended—

23 (1) by striking ‘‘5 States’’ and inserting ‘‘10

24 States’’; and
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1 (2) by adding at the end the following: ‘‘In se2 lecting States under this paragraph, the Secretary

3 shall give preference to any State that has dem4 onstrated a commitment to participate in an energy

5 efficient mortgage program in conjunction with a

6 government-sponsored housing enterprise.’’.

7 Subtitle C—Authorizations

8 SEC. 321. LIMITATION ON GNMA GUARANTEES FOR MORT9 GAGE-BACKED SECURITIES.

10 Section 306(g)(2) of the Federal National Mortgage

11 Association Charter Act (12 U.S.C. 1721(g)(2)) is amend12 ed in the first sentence by striking ‘‘$107,700,000,000’’

13 and all that follows before the period and inserting

14 ‘‘$142,000,000,000 during fiscal year 1995 and

15 $142,000,000,000 during fiscal year 1996’’.

16 SEC. 322. LIMITATION ON FHA INSURING AUTHORITY.

17 Section 531(b) of the National Housing Act (12

18 U.S.C. 1735f–9(b)) is amended to read as follows:

19 ‘‘(b) LIMITATION ON INSURANCE AUTHORITY.—Not20 withstanding any other provision of law and subject only

21 to the absence of qualified requests for insurance, to the

22 authority provided in this Act, and to the limitation in

23 subsection (a), the Secretary shall enter into commitments

24 to insure mortgages under this Act with an aggregate
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1 principal amount of $120,900,000,000 during fiscal year

2 1995 and $120,900,000,000 during fiscal year 1996.’’.

3 SEC. 323. HOPE AUTHORIZATION OF APPROPRIATIONS.

4 Section 402 of the Cranston-Gonzalez National Af5 fordable Housing Act (42 U.S.C. 12870) is amended by

6 striking subsection (a) and inserting the following:

7 ‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au8 thorized to be appropriated for activities authorized under

9 title III of the United States Housing Act of 1937 and

10 subtitles B and C of title IV of this Act $75,000,000 for

11 fiscal year 1995, and $75,000,000 for fiscal year 1996.

12 Of the amounts appropriated under this section—

13 ‘‘(1) up to $25,000,000 shall be available each

14 fiscal year for implementation grants to applicants

15 who have successfully completed planning grants

16 under title III; and

17 ‘‘(2) up to 5 percent shall be available for tech18 nical assistance.’’.

19 SEC. 324. HOME EQUITY CONVERSION MORTGAGES.

20 (a) PROGRAM EXTENSION.—Section 255(g) of the

21 National Housing Act (12 U.S.C. 1715z–20(g)) is amend22 ed by striking ‘‘September 30, 1995’’ and inserting ‘‘Sep23 tember 30, 1996’’.
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1 (b) ELIGIBLE RESIDENCES.—Section 255(d)(3) of

2 the National Housing Act (12 U.S.C. 1715z–20(d)(3)) is

3 amended to read as follows:

4 ‘‘(3) be secured by a dwelling that is designed

5 principally for a 1- to 4-family residence in which

6 the mortgagor occupies 1 of the units;’’.

7 (c) REPORTS.—Section 255(k) of the National Hous8 ing Act (12 U.S.C. 1715z–20(k)) is amended by adding

9 at the end the following: ‘‘Each biennial report shall also

10 include the results of a survey conducted during the period

11 since the most recent report under this subsection to de12 termine—

13 ‘‘(A) the financial and other needs of elder14 ly homeowners that cause such homeowners to

15 consider obtaining home equity conversion

16 mortgages; and

17 ‘‘(B) the extent of consumer satisfaction

18 regarding the program under this section and

19 counseling provided pursuant to the require20 ments of this section.

21 In conducting the survey, the Secretary shall consult

22 a representative sample of mortgagors of mortgages

23 insured under this section and of elderly home24 owners who have expressed interest in obtaining, but

25 have not obtained, such mortgages.’’.
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1 TITLE IV—SECTION 8 RENTAL

2 ASSISTANCE

3 SEC. 401. MERGER OF THE CERTIFICATE AND VOUCHER

4 PROGRAMS.

5 (a) MERGER OF CERTIFICATE AND VOUCHER PRO6 GRAMS.—Section 8(o) of the United States Housing Act

7 of 1937 (42 U.S.C. 1437f(o)) is amended to read as fol8 lows:

9 ‘‘(o) CERTIFICATE PROGRAM.—

10 ‘‘(1) PAYMENT STANDARD.—

11 ‘‘(A) IN GENERAL.—The Secretary may

12 provide assistance to public housing agencies

13 for tenant-based assistance using a payment

14 standard established in accordance with sub15 paragraph (B). The payment standard shall be

16 used to determine the monthly assistance which

17 may be paid for any family, as provided in

18 paragraph (2).

19 ‘‘(B) ESTABLISHMENT OF PAYMENT

20 STANDARD.—

21 ‘‘(i) IN GENERAL.—Except as pro22 vided in clauses (ii) and (iii), the payment

23 standard shall equal the fair market rental

24 established under subsection (c). A public

25 housing agency shall adjust its payment
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1 standard under this subsection whenever it

2 is necessary to maintain its equality with

3 the fair market rent, unless the Secretary

4 determines pursuant to clause (ii) or (iii)

5 that the payment standard should exceed

6 or be less than the fair market rent.

7 ‘‘(ii) PAYMENT STANDARD EXCEEDING

8 FAIR MARKET RENTAL.—The payment

9 standard for a designated part of the mar10 ket area may exceed the fair market rental

11 by not more than 20 percent, if the Sec12 retary determines that higher market rents

13 in that part of the market area justify a

14 higher payment standard.

15 ‘‘(iii) PAYMENT STANDARD LESS

16 THAN FAIR MARKET RENTAL.—The pay17 ment standard may be less than the fair

18 market rental if, upon request by the pub19 lic housing agency, the Secretary deter20 mines that the market rents in that part of

21 the market area justify a lower payment

22 standard.

23 ‘‘(C) ADJUSTMENTS IN PAYMENT STAND24 ARD.—
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•S 2281 PCS

1 ‘‘(i) IN GENERAL.—A public housing

2 agency may adjust its payment standard

3 under this subsection if necessary to assure

4 continued affordability for families receiv5 ing tenant-based assistance.

6 ‘‘(ii) SET-ASIDE.—The Secretary may

7 set aside not more than 5 percent of the

8 budget authority available under this sub9 section as an adjustment pool. The Sec10 retary shall use amounts in the adjustment

11 pool for adjustments pursuant to clause (i)

12 to ensure continued affordability if the

13 Secretary determines additional assistance

14 for this purpose is necessary, based on doc15 umentation submitted by a public housing

16 agency.

17 ‘‘(D) APPROVAL.—The Secretary may re18 quire a public housing agency to submit pro19 posed payment standards to the Secretary for

20 approval.

21 ‘‘(2) AMOUNT OF MONTHLY ASSISTANCE PAY22 MENT.—

23 ‘‘(A) FAMILIES RECEIVING TENANT-BASED

24 ASSISTANCE; RENT LESS THAN PAYMENT

25 STANDARD.—For a family receiving tenant-
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1 based assistance, if the rent (including the

2 amount allowed for tenant-paid utilities) does

3 not exceed the payment standard, the monthly

4 assistance payment shall be the amount by

5 which the rent exceeds the greatest of the fol6 lowing amounts, rounded to the nearest dollar:

7 ‘‘(i) Thirty percent of the family’s

8 monthly adjusted income.

9 ‘‘(ii) Ten percent of the family’s

10 monthly income.

11 ‘‘(iii) If the family is receiving pay12 ments for welfare assistance from a public

13 agency and a part of such payments, ad14 justed in accordance with the family’s ac15 tual housing costs, is specifically des16 ignated by such agency to meet the fami17 ly’s housing costs, the portion of such pay18 ments which is so designated.

19 ‘‘(B) FAMILIES RECEIVING TENANT-BASED

20 ASSISTANCE; RENT EXCEEDS PAYMENT STAND21 ARD.—For a family receiving tenant-based as22 sistance, if the rent (including the amount al23 lowed for tenant-paid utilities) exceeds the pay24 ment standard, the monthly assistance payment

25 shall be the amount by which the applicable
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•S 2281 PCS

1 payment standard exceeds the greatest of the

2 following amounts, rounded to the nearest dol3 lar:

4 ‘‘(i) Thirty percent of the family’s

5 monthly adjusted income.

6 ‘‘(ii) Ten percent of the family’s

7 monthly income.

8 ‘‘(iii) If the family is receiving pay9 ments for welfare assistance from a public

10 agency and a part of such payments, ad11 justed in accordance with the family’s ac12 tual housing costs, is specifically des13 ignated by such agency to meet the fami14 ly’s housing costs, the portion of such pay15 ments which is so designated.

16 ‘‘(C) FAMILIES RECEIVING PROJECT17 BASED ASSISTANCE.—For a family receiving

18 project-based assistance, the rent the family is

19 required to pay shall be determined in accord20 ance with section 3(a)(1) and the amount of the

21 housing assistance payment shall be determined

22 in accordance with subsection (c)(3).

23 ‘‘(3) FORTY PERCENT LIMIT.—At the time a

24 family initially receives tenant-based assistance with

25 respect to any unit, the total amount a family may
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•S 2281 PCS

1 pay toward rent may not exceed 40 percent of the

2 family’s monthly adjusted income.

3 ‘‘(4) ELIGIBLE FAMILIES.—At the time a fam4 ily initially receives assistance under this subsection,

5 a family shall qualify as—

6 ‘‘(A) a very low-income family;

7 ‘‘(B) a family previously assisted under

8 this Act; or

9 ‘‘(C) a low-income family that meets eligi10 bility criteria specified by the Secretary.

11 ‘‘(5) ANNUAL REVIEW OF FAMILY INCOME.—A

12 review of the family income of each family receiving

13 assistance under this subsection shall be made not

14 less than annually.

15 ‘‘(6) SELECTION OF FAMILIES.—

16 ‘‘(A) PREFERENCE.—Except as provided

17 in subparagraph (B), in selecting families to re18 ceive assistance under this subsection, the pub19 lic housing agency shall give preference to fami20 lies that, at the time they are seeking such as21 sistance—

22 ‘‘(i) occupy substandard housing (in23 cluding families that are homeless or living

24 in an emergency or transitional shelter for

25 homeless families);
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•S 2281 PCS

1 ‘‘(ii) are involuntarily displaced; or

2 ‘‘(iii) are paying more than 50 percent

3 of family income for rent.

4 ‘‘(B) ASSISTANCE TO OTHER FAMILIES.—

5 A public housing agency may provide for cir6 cumstances in which a family that does not

7 qualify for any preference established in sub8 paragraph (A) is provided assistance under this

9 subsection before a family that does qualify for

10 such preference. However, not more than 10

11 percent in the case of tenant-based assistance

12 and not more than 30 percent in the case of

13 project-based assistance (or such higher per14 centage, in either case, determined by the Sec15 retary to be necessary or appropriate) of the

16 families that initially receive assistance in any

17 1-year period may be families that do not qual18 ify for such preference. In implementing this

19 subparagraph, the public housing agency shall

20 establish a system of preferences in writing and

21 after public hearing to respond to local housing

22 needs and priorities, which may include—

23 ‘‘(i) assisting very low-income families

24 that participate in a program designed to

25 provide public assistance recipients with
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•S 2281 PCS

1 greater access to employment and edu2 cational opportunities;

3 ‘‘(ii) assisting families identified by

4 local public agencies involved in providing

5 for the welfare of children as having a lack

6 of adequate housing that is a primary fac7 tor in the imminent placement of a child in

8 foster care, or in preventing the discharge

9 of a child from foster care and reunifica10 tion with his or her family;

11 ‘‘(iii) assisting youth, upon discharge

12 from foster care, in cases in which return

13 to the family or extended family or adop14 tion is not available;

15 ‘‘(iv) assisting veterans that will use

16 the assistance for a dwelling unit designed

17 for the handicapped, and, upon discharge

18 or eligibility for discharge from a hospital

19 or nursing home, have a physical disability

20 which, because of the configuration of their

21 homes, prevents them from access to or

22 use of their homes; and

23 ‘‘(v) other housing policy objectives,

24 as approved by the Secretary.
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•S 2281 PCS

1 ‘‘(C) EVICTION FOR DRUG-RELATED AC2 TIVITY.—Any individual or family evicted from

3 housing assisted under this Act by reason of

4 drug-related criminal activity (as defined in

5 subsection (f)(5)) shall not be eligible for a

6 preference under any provision of this para7 graph for 3 years unless the evicted tenant suc8 cessfully completes a rehabilitation program ap9 proved by the Secretary (which shall include

10 waiver for any member of the family of an indi11 vidual prohibited from tenancy under this sub12 paragraph whom the agency determines clearly

13 did not participate in and had no knowledge of

14 such criminal activity, or when circumstances

15 leading to eviction no longer exist).

16 ‘‘(7) INSPECTION OF UNITS BY PUBLIC HOUS17 ING AGENCIES.—For each dwelling unit assisted

18 under this subsection, the Secretary shall require the

19 public housing agency to—

20 ‘‘(A) inspect the unit before any assistance

21 payment may be made to determine that the

22 unit meets housing quality standards for de23 cent, safe, and sanitary housing established by

24 the Secretary for the purpose of this subsection;

25 and
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•S 2281 PCS

1 ‘‘(B) make annual or more frequent in2 spections during the contract term.

3 ‘‘(8) VACATED UNITS.—If a family vacates a

4 dwelling unit, no assistance payment may be made

5 for the unit after the month during which the unit

6 was vacated.

7 ‘‘(9) RENT.—

8 ‘‘(A) REASONABLE MARKET RENT.—The

9 rent for units assisted under this subsection

10 shall be reasonable in comparison with rents

11 charged for comparable units in the private, un12 assisted market.

13 ‘‘(B) NEGOTIATED RENT.—A public hous14 ing agency shall, at the request of a family re15 ceiving tenant-based assistance under this sub16 section, assist such family in negotiating a rea17 sonable rent with an owner. A public housing

18 agency shall review the rent for a unit under

19 consideration by the family (and all rent in20 creases for units under lease by the family) to

21 determine whether the rent (or rent increase)

22 requested by an owner is reasonable. If a public

23 housing agency determines that the rent (or

24 rent increase) for a unit is not reasonable, the

25 agency shall disapprove a lease for such unit.
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•S 2281 PCS

1 ‘‘(C) UNITS EXEMPT FROM LOCAL RENT

2 CONTROL.—If a unit assisted under this sub3 section is exempt from local rent control while

4 it is so assisted, the rent for such unit shall be

5 reasonable in comparison with other units in

6 the market area that are exempt from local rent

7 control.

8 ‘‘(D) PAYMENTS.—The public housing

9 agency shall make timely payment of any

10 amounts due to an owner under this paragraph.

11 The contract between the owner and the public

12 housing agency may provide for penalties for

13 the late payment of amounts due under the

14 contract which shall be imposed on the public

15 housing agency in accordance with generally ac16 cepted practices in the local housing market.

17 ‘‘(10) MANUFACTURED HOUSING.—

18 ‘‘(A) IN GENERAL.—A public housing

19 agency may make assistance payments on be20 half of a family that utilizes a manufactured

21 home as its principal place of residence. Such

22 payments may be made for the rental of the

23 real property on which the manufactured home

24 owned by any such family is located.

25 ‘‘(B) RENT CALCULATION.—
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•S 2281 PCS

1 ‘‘(i) CHARGES INCLUDED.—For as2 sistance pursuant to this paragraph, the

3 rent for the space on which a manufac4 tured home is located and with respect to

5 which assistance payments are to be made

6 includes maintenance and management

7 charges and tenant-paid utilities.

8 ‘‘(ii) PAYMENT STANDARD.—The pub9 lic housing agency shall establish a pay10 ment standard for the purpose of deter11 mining the monthly assistance which may

12 be paid for any family under this para13 graph. The payment standard may not ex14 ceed an amount approved or established by

15 the Secretary.

16 ‘‘(iii) MONTHLY ASSISTANCE PAY17 MENT.—The monthly assistance payment

18 under this paragraph shall be determined

19 in accordance with paragraph (2).

20 ‘‘(11) CONTRACT FOR ASSISTANCE PAY21 MENTS.—

22 ‘‘(A) IN GENERAL.—If the Secretary en23 ters into an annual contributions contract with

24 a public housing agency pursuant to which the

25 agency will enter into a contract for assistance
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•S 2281 PCS

1 payments with respect to an existing structure

2 under this subsection, the contract for assist3 ance payments may not be attached to the

4 structure unless the owner agrees to rehabili5 tate or newly construct the structure other than

6 with assistance under this Act and otherwise

7 complies with the requirements of this section.

8 The public housing agency may approve such

9 attachment for not more than 15 percent of the

10 funding available for tenant-based assistance

11 administered by the agency under this section.

12 ‘‘(B) EXTENSION OF CONTRACT TERM.—

13 In the case of a contract for assistance pay14 ments that is attached to a structure under this

15 paragraph, a public housing agency shall enter

16 into a contract with an owner, contingent upon

17 the future availability of appropriated funds for

18 the purpose of renewing expiring contracts for

19 assistance payments as provided in appropria20 tions Acts, to extend the term of the underlying

21 contract for assistance payments for such pe22 riod or periods as the Secretary determines to

23 be appropriate to achieve long-term afford24 ability of the housing. The contract shall obli25 gate the owner to have such extensions of the
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•S 2281 PCS

1 underlying contract for assistance payments ac2 cepted by the owner and the owner’s successors

3 in interest.

4 ‘‘(C) RENT CALCULATION.—For project5 based assistance under this paragraph, assist6 ance contracts shall establish rents and provide

7 for rent adjustments in accordance with sub8 section (c).

9 ‘‘(12) UNITS OTHER THAN PUBLIC HOUSING

10 UNITS.—A family may lease a unit, other than a

11 public housing unit, from the public housing agency

12 with assistance under this subsection. The Secretary

13 may establish appropriate program requirements for

14 units owned by the public housing agency, including

15 requirements—

16 ‘‘(A) for the Secretary’s approval of initial

17 rents, rent adjustments, and administrative

18 fees, taking into account that the agency ad19 ministering the assistance is also the owner of

20 the assisted unit;

21 ‘‘(B) that the initial rent be reasonable in

22 accordance with paragraph (9)(A) and not ex23 ceed the fair market rent; and

24 ‘‘(C) that only tenant-based assistance may

25 be used for such units.
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•S 2281 PCS

1 ‘‘(13) INAPPLICABLE TO TENANT-BASED AS2 SISTANCE.—Subsection (c) shall not apply to tenant3 based assistance under this subsection.

4 ‘‘(14) HOMEOWNERSHIP OPTION.—A public

5 housing agency providing assistance under this sec6 tion may, at the option of the agency, provide assist7 ance for homeownership under subsection (y).’’.

8 (b) LEASING TO CERTIFICATE HOLDERS.—

9 (1) REPEAL.—Section 8(t) of the United States

10 Housing Act of 1937 (42 U.S.C. 1437f(t)) is re11 pealed.

12 (2) REPORT TO CONGRESS.—Not later than 3

13 years after the date of enactment of this Act, the

14 Comptroller General of the United States shall re15 port to the Congress on the effect of the repeal

16 made by paragraph (1). The report shall analyze—

17 (A) discriminatory practices based on

18 source of income and any other detrimental

19 practices occurring as a result of the repeal of

20 section 8(t) of the United States Housing Act

21 of 1937; and

22 (B) any increase in owner participation in

23 the program authorized under section 8(o) of

24 the United States Housing Act of 1937 occur-
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•S 2281 PCS

1 ring as a result of the repeal of section 8(t) of

2 such Act.

3 (c) PORTABILITY.—Section 8(r) of the United States

4 Housing Act of 1937 (42 U.S.C. 1437f(r)) is amended—

5 (1) in paragraph (1), by striking ‘‘subsection

6 (b) or’’;

7 (2) in paragraph (3)—

8 (A) by striking ‘‘subsection (b) or’’; and

9 (B) by adding at the end the following new

10 sentence: ‘‘The Secretary may reserve amounts

11 available for assistance under subsection (o) to

12 compensate public housing agencies which issue

13 certificates to families that move into the juris14 diction of the agency under portability proce15 dures.’’; and

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

17 paragraph:

18 ‘‘(5) LEASE VIOLATIONS.—A family may not receive

19 a certificate from an agency and move to another jurisdic20 tion under the tenant-based assistance program if the

21 family has moved out of its assisted unit in violation of

22 its lease.’’.

23 (d) HOMEOWNERSHIP OPTION.—Section 8(y) of the

24 United States Housing Act of 1937 (42 U.S.C. 1437f(y))

25 is amended—
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•S 2281 PCS

1 (1) in paragraph (1)(A), by inserting before the

2 semicolon ‘‘, or owns or is acquiring shares in a co3 operative’’;

4 (2) in paragraph (1)(B)(i), by inserting before

5 the semicolon ‘‘and demonstrates to the public hous6 ing agency that it has sufficient resources for home7 ownership’’; and

8 (3) in paragraph (2), by striking subparagraph

9 (A) and inserting the following:

10 ‘‘(A) DETERMINATION OF AMOUNT OF AS11 SISTANCE.—

12 ‘‘(i) MONTHLY EXPENSES DO NOT EX13 CEED PAYMENT STANDARD.—If the

14 monthly homeownership expenses, as deter15 mined in accordance with requirements es16 tablished by the Secretary, do not exceed

17 the payment standard, the monthly assist18 ance payment shall be the amount by

19 which the homeownership expenses exceed

20 the highest of the following amounts,

21 rounded to the nearest dollar:

22 ‘‘(I) Thirty percent of the fami23 ly’s monthly adjusted income.

24 ‘‘(II) Ten percent of the family’s

25 monthly income.
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•S 2281 PCS

1 ‘‘(III) If the family is receiving

2 payments for welfare assistance from

3 a public agency and a part of such

4 payments, adjusted in accordance with

5 the family’s actual housing costs, is

6 specifically designated by such agency

7 to meet the family’s housing costs, the

8 portion of such payments which is so

9 designated.

10 ‘‘(ii) MONTHLY EXPENSES EXCEED

11 PAYMENT STANDARD.—If the monthly

12 homeownership expenses, as determined in

13 accordance with requirements established

14 by the Secretary, exceed the payment

15 standard, the monthly assistance payment

16 shall be the amount by which the applica17 ble payment standard exceeds the highest

18 of the following amounts, rounded to the

19 nearest dollar:

20 ‘‘(I) Thirty percent of the fami21 ly’s monthly adjusted income.

22 ‘‘(II) Ten percent of the family’s

23 monthly income.

24 ‘‘(III) If the family is receiving

25 payments for welfare assistance from
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•S 2281 PCS

1 a public agency and a part of such

2 payments, adjusted in accordance with

3 the family’s actual housing costs, is

4 specifically designated by such agency

5 to meet the family’s housing costs, the

6 portion of such payments which is so

7 designated.’’.

8 (e) TECHNICAL AND CONFORMING AMENDMENTS TO

9 THE UNITED STATES HOUSING ACT OF 1937; DELETION

10 OF OBSOLETE PROVISIONS.—The United States Housing

11 Act of 1937 (42 U.S.C. 1437 et seq.) is amended—

12 (1) in section 8—

13 (A) in subsection (a), by striking the sec14 ond and third sentences;

15 (B) in subsection (b)—

16 (i) in the section heading, by striking

17 ‘‘RENTAL’’; and

18 (ii) in the first undesignated para19 graph, by striking the second sentence;

20 (C) in subsection (c)—

21 (i) in paragraph (3)—

22 (I) by striking ‘‘(A)’’; and

23 (II) by striking subparagraph

24 (B);
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•S 2281 PCS

1 (ii) in the first sentence of paragraph

2 (4), by striking ‘‘or by a family that quali3 fies to receive’’ and all that follows through

4 ‘‘1990’’;

5 (iii) by striking paragraph (5) and re6 designating paragraph (6) as paragraph

7 (5);

8 (iv) by striking paragraph (7) and re9 designating paragraphs (8) through (10)

10 as paragraphs (6) through (8), respec11 tively;

12 (v) in paragraph (6), as redesignated,

13 by inserting ‘‘(other than a contract under

14 section 8(o))’’ after ‘‘section’’; and

15 (vi) in paragraph (7), as redesignated,

16 by striking ‘‘(but not less than 90 days in

17 the case of housing certificates or vouchers

18 under subsection (b) or (o))’’ and inserting

19 ‘‘, other than a contract under subsection

20 (o)’’;

21 (D) in subsection (d)(1)(A)—

22 (i) by inserting ‘‘except for assistance

23 under subsection (o),’’ immediately after

24 ‘‘(A)’’; and

25 (ii) in clause (i)—
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•S 2281 PCS

1 (I) by striking ‘‘(I)’’;

2 (II) by striking ‘‘and (II) 90 per3 cent of such families in the case of as4 sistance not attached to a structure,’’;

5 and

6 (III) by striking ‘‘except’’ and all that

7 follows before the semicolon;

8 (E) in subsection (d)(2), by striking the

9 third sentence of subparagraph (A) and all that

10 follows through the end of the paragraph;

11 (F) in subsection (f)—

12 (i) in paragraph (6), by striking

13 ‘‘(d)(2)’’ and inserting ‘‘(o)(13)’’; and

14 (ii) in paragraph (7)—

15 (I) by striking ‘‘(b) or’’; and

16 (II) by inserting before the pe17 riod the following: ‘‘and that provides

18 for the eligible family to select suit19 able housing and to move to other

20 suitable housing’’;

21 (G) by striking subsection (j) and inserting

22 the following:

23 ‘‘(j) [Repealed.]’’;

24 (H) by striking subsection (n) and insert25 ing the following:
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•S 2281 PCS

1 ‘‘(n) [Repealed.]’’; and

2 (I) in subsection (q)—

3 (i) in the first sentence of paragraph

4 (1), by striking ‘‘and housing voucher pro5 grams under subsections (b) and (o)’’ and

6 inserting ‘‘program under this section’’;

7 (ii) in paragraph (2)(A)(i), by striking

8 ‘‘and housing voucher programs under sub9 sections (b) and (o)’’ and inserting ‘‘pro10 gram under this section’’; and

11 (iii) in paragraph (2)(B), by striking

12 ‘‘and housing voucher programs under sub13 sections (b) and (o)’’ and inserting ‘‘pro14 gram under this section’’;

15 (2) in section 18(b)(3)—

16 (A) in subparagraph (A)(v), by striking

17 ‘‘(excluding vouchers under section 8(o))’’ each

18 place it appears;

19 (B) in subparagraph (B)—

20 (i) by striking ‘‘8(d)(2)(A)’’ and in21 serting ‘‘8(o)(11)’’; and

22 (ii) in clause (ii), by striking ‘‘(exclud23 ing vouchers under section 8(o))’’; and

24 (C) in subparagraph (C)(i), by striking

25 ‘‘and vouchers’’;
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•S 2281 PCS

1 (3) in section 21(b)(3)—

2 (A) in the first sentence, by striking ‘‘cer3 tificate under section 8(b)(1) or a housing

4 voucher under section 8(o)’’ and inserting ‘‘ten5 ant-based assistance under section 8’’; and

6 (B) by striking the second sentence; and

7 (4) in section 23(b)(3)(A), by striking ‘‘Certifi8 cate and voucher assistance under section 8(b) and

9 (o)’’ and inserting ‘‘Tenant-based assistance under

10 section 8’’.

11 (f) OTHER TECHNICAL AND CONFORMING AMEND12 MENTS.—

13 (1) DOCUMENTATION OF EXCESSIVE RENT

14 BURDENS.—Section 550(b) of the Cranston-Gon15 zalez National Affordable Housing Act (42 U.S.C.

16 1437f note) is amended—

17 (A) in paragraph (1), by striking ‘‘assisted

18 under the certificate and voucher programs es19 tablished’’ and inserting ‘‘receiving tenant20 based assistance’’;

21 (B) in the first sentence of paragraph

22 (2)—

23 (i) by striking ‘‘, for each of the cer24 tificate program and the voucher program’’
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•S 2281 PCS

1 and inserting ‘‘for the tenant-based assist2 ance under section 8’’; and

3 (ii) by striking ‘‘participating in the

4 program’’ and inserting ‘‘receiving tenant5 based assistance’’; and

6 (C) in paragraph (3), by striking ‘‘assist7 ance under the certificate or voucher program’’

8 and inserting ‘‘tenant-based assistance under

9 section 8 of the United States Housing Act of

10 1937’’.

11 (2) FEASIBILITY STUDY REGARDING INDIAN

12 TRIBE ELIGIBILITY.—Section 561 of the Cranston13 Gonzalez National Affordable Housing Act (42

14 U.S.C. 1437f note) is amended—

15 (A) in the heading, by striking ‘‘FOR

16 VOUCHER PROGRAM’’; and

17 (B) in subsection (a), by striking ‘‘vouch18 er’’.

19 (3) GRANTS FOR COMMUNITY RESIDENCES AND

20 SERVICES.—Section 861(b)(1)(D) of the Cranston21 Gonzalez National Affordable Housing Act (42

22 U.S.C. 12910(b)(1)(D)) is amended by striking

23 ‘‘certificates or vouchers’’ and inserting ‘‘assist24 ance’’.
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•S 2281 PCS

1 (4) SECTION 8 CERTIFICATES AND VOUCH2 ERS.—Section 931 of the Cranston-Gonzalez Na3 tional Affordable Housing Act (42 U.S.C. 1437c

4 note) is amended by striking ‘‘assistance under the

5 certificate and voucher programs under sections 8(b)

6 and (o)’’ and inserting ‘‘tenant-based assistance

7 under section 8’’.

8 (5) TENANT PARTICIPATION IN MULTIFAMILY

9 HOUSING PROJECTS.—Section 183(c) of the Housing

10 and Community Development Act of 1987 (42

11 U.S.C. 1437f note) is amended—

12 (A) in the heading, by striking ‘‘AND

13 VOUCHER HOLDERS’’; and

14 (B) in paragraph (2), by striking ‘‘vouch15 er’’ each place it appears and inserting ‘‘certifi16 cate’’.

17 (6) ASSISTANCE FOR DISPLACED TENANTS.—

18 Section 223(a) of the Housing and Community De19 velopment Act of 1987 (12 U.S.C. 4113(a)) is

20 amended by striking ‘‘assistance under the certifi21 cate and voucher programs under sections 8(b) and

22 8(o)’’ and inserting ‘‘tenant-based assistance under

23 section 8’’.

24 (7) RURAL HOUSING PRESERVATION GRANTS.—

25 Section 533(a) of the Housing Act of 1949 (42
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•S 2281 PCS

1 U.S.C. 1490m(a)) is amended in the second sentence

2 by striking ‘‘assistance payments as provided by sec3 tion 8(o)’’ and inserting ‘‘tenant-based assistance as

4 provided under section 8’’.

5 (8) REPEAL OF MOVING TO OPPORTUNITIES

6 FOR FAIR HOUSING DEMONSTRATION.—Section 152

7 of the Housing and Community Development Act of

8 1992 (42 U.S.C. 1437f note) is hereby repealed.

9 (9) PREFERENCES FOR ELDERLY FAMILIES

10 AND PERSONS.—Section 655 of the Housing and

11 Community Development Act of 1992 (42 U.S.C.

12 13615) is amended by striking ‘‘the first sentence of

13 section 8(o)(3)(B)’’ and inserting ‘‘section

14 8(o)(6)(A)’’.

15 (10) ASSESSMENT CREDITS FOR DISTRESSED

16 COMMUNITIES.—Section 233(a)(4)(F) of the Bank

17 Enterprise Act of 1991 (12 U.S.C. 1834a(a)(4)(F))

18 is amended by striking ‘‘title III of the United

19 States Housing Act of 1937 or’’.

20 (11) ASSISTANCE FOR TROUBLED MULTIFAMILY

21 HOUSING PROJECTS.—Section 201(m)(2)(A) of the

22 Housing and Community Development Amendments

23 of 1978 (12 U.S.C. 1715z–1a(m)(2)(A)) is amended

24 by striking ‘‘section 8(b)(1)’’ and inserting ‘‘section

25 8’’.
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1 (12) MANAGEMENT AND DISPOSITION OF MUL2 TIFAMILY HOUSING PROJECTS.—Section 203(g)(2)

3 of the Housing and Community Development

4 Amendments of 1978 (12 U.S.C. 1701z–11(g)(2)),

5 as amended by section 101(b) of the Multifamily

6 Housing Property Disposition Reform Act of 1994,

7 is amended by striking ‘‘8(o)(3)(B)’’ and inserting

8 ‘‘8(o)(6)(A)’’.

9 (g) IMPLEMENTATION.—The Secretary shall imple10 ment the amendments made by this section by regulation

11 issued after notice and opportunity for public comment.

12 (h) EFFECTIVE DATE.—

13 (1) IN GENERAL.—The amendments made by

14 this section shall take effect upon a date specified by

15 the Secretary in the Federal Register.

16 (2) CONVERSION ASSISTANCE.— The Secretary

17 may provide for the conversion of assistance under

18 the certificate and voucher programs under sub19 sections (b) and (o) of the United States Housing

20 Act of 1937, as they existed before the effective date

21 of the amendments made by this section, to the cer22 tificate program established under this section. The

23 Secretary may continue to apply the provisions of

24 the United States Housing Act of 1937 and other

25 statutes amended by this section, as they existed im-
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1 mediately before the effective date of the amend2 ments made by this section, to assistance obligated

3 by the Secretary before such effective date for the

4 certificate or voucher program under section 8 of the

5 United States Housing Act of 1937, if necessary for

6 simplification of program administration, avoidance

7 of hardship, or other good cause.

8 SEC. 402. CHOICE IN RESIDENCY.

9 Section 8(o) of the United States Housing Act of

10 1937 (42 U.S.C. 1437f(o)), as amended by section 401(a),

11 is amended by adding at the end the following new para12 graph:

13 ‘‘(14) GRANTS FOR CHOICE IN RESIDENCY

14 COUNSELING.—

15 ‘‘(A) AUTHORIZATION.—The Secretary

16 may make grants to public housing agencies

17 and nonprofit organizations for the purpose of

18 providing counseling to applicants for and re19 cipients of tenant-based assistance. The coun20 seling shall be designed to enable families to se21 lect units through informed choice, including

22 units in areas without high concentrations of

23 persons living in poverty.
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1 ‘‘(B) ELIGIBLE ACTIVITIES.—Activities as2 sisted with grants made under this paragraph

3 may include—

4 ‘‘(i) advising families on strategies for

5 obtaining appropriate housing;

6 ‘‘(ii) providing transportation assist7 ance and other services to give families ac8 cess to areas without high concentrations

9 of persons living in poverty;

10 ‘‘(iii) continuing advice and counseling

11 to assist families after moving to areas

12 without high concentrations of persons liv13 ing in poverty; and

14 ‘‘(iv) undertaking outreach to poten15 tial owners to expand the availability of

16 housing in areas without high concentra17 tions of persons living in poverty.

18 ‘‘(C) SELECTION OF RECIPIENTS.—The

19 Secretary may select, on a competitive basis,

20 public housing agencies and nonprofit organiza21 tions for grants under this paragraph. In mak22 ing funding decisions, the Secretary may take

23 into account evidence of commitments of non24 Federal assistance to be used in support of the

25 proposed counseling program.
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1 ‘‘(D) SET-ASIDE FOR CIVIL RIGHTS LITIGA2 TION.—Of amounts appropriated pursuant to

3 subparagraph (E), the Secretary may set aside

4 not more than 5 percent for fair housing activi5 ties in connection with the settlement of civil

6 rights litigation (excluding litigation brought by

7 an employee or former employee of the Sec8 retary) including—

9 ‘‘(i) mobility counseling and related

10 services, including the recruitment of land11 lords and assistance in obtaining a place

12 on any waiting lists for housing in the

13 same market area;

14 ‘‘(ii) establishing clearinghouses for

15 information about housing opportunities;

16 ‘‘(iii) assistance for elderly persons

17 and persons with disabilities; and

18 ‘‘(iv) targeted testing efforts.

19 ‘‘(E) AUTHORIZATION.—There are author20 ized to be appropriated $75,000,000 for fiscal

21 year 1995 and $75,000,000 for fiscal year 1996

22 for grants under this paragraph.’’.
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1 SEC. 403. FAMILY UNIFICATION ASSISTANCE.

2 Section 8(x)(1) of the United States Housing Act of

3 1937 (12 U.S.C. 1437f(x)(1)) is amended to read as fol4 lows:

5 ‘‘(1) INCREASE IN BUDGET AUTHORITY.—The

6 budget authority available under section 5(c) for as7 sistance under section 8(b) is authorized to be in8 creased by $75,000,000 on or after October 1, 1995,

9 and by $75,000,000 on or after October 1, 1996.’’.

10 SEC. 404. FAIR MARKET RENTS.

11 Section 8(c)(1) of the United States Housing Act of

12 1937 (42 U.S.C. 1437f(c)(1)) is amended by adding after

13 the period at the end the following: ‘‘The Secretary shall

14 set fair market rentals at the 45 percentile of the standard

15 quality rental housing within each market area. In setting

16 the fair market rents, the Secretary shall only consider

17 rents on units occupied by recent movers and shall not

18 consider rents on government subsidized units and rents

19 on newly constructed units.’’.

20 TITLE V—HOME INVESTMENT

21 PARTNERSHIPS

22 SEC. 501. HOME PROGRAM LOAN GUARANTEES.

23 Subtitle A of title II of the Cranston-Gonzalez Na24 tional Affordable Housing Act (42 U.S.C. 12741 et seq.)

25 is amended by adding at the end the following new section:
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1 ‘‘SEC. 227. LOAN GUARANTEES.

2 ‘‘(a) AUTHORIZATION.—

3 ‘‘(1) IN GENERAL.—The Secretary shall, upon

4 such terms and conditions as the Secretary may pre5 scribe, guarantee and make commitments to guaran6 tee the notes or other obligations issued by eligible

7 participating jurisdictions, or by public agencies des8 ignated by and acting on behalf of eligible partici9 pating jurisdictions, in accordance with this sub10 section.

11 ‘‘(2) PURPOSES.—Guarantees and commit12 ments to guarantee obligations made under this sub13 section shall be made for purposes of financing ac14 tivities eligible under subtitle A of title II of the

15 Cranston-Gonzalez National Affordable Housing

16 Act, excluding administrative costs, as defined in

17 section 207 of the Housing and Community Devel18 opment Act of 1992.

19 ‘‘(b) REQUIREMENTS FOR NOTES AND OTHER OBLI20 GATIONS GUARANTEED.—

21 ‘‘(1) IN GENERAL.—Notes or other obligations

22 guaranteed under this section shall be in such form

23 and denominations, have such maturities, and be

24 subject to such conditions as may be prescribed by

25 regulations issued by the Secretary. The Secretary

26 may not deny a guarantee under this section on the
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1 basis of the proposed repayment period for the note

2 or other obligation, unless the period is more than

3 20 years or the Secretary determines that the period

4 otherwise causes the guarantee to constitute an un5 acceptable financial risk. To the extent provided in

6 appropriation Acts, the Secretary may enter into

7 commitments to guarantee notes or other obligations

8 under this section with an aggregate principal

9 amount of $1,000,000,000 for fiscal year 1995 and

10 $1,000,000,000 for fiscal year 1996.

11 ‘‘(2) ALLOCATION.—

12 ‘‘(A) ALLOCATION FOR INDIAN TRIBES

13 AND INSULAR AREAS.—Of the amount approved

14 in any appropriation Act for guarantees under

15 this section in each fiscal year, the Secretary

16 shall reserve—

17 ‘‘(i) 1 percent for guarantees to In18 dian tribes; and

19 ‘‘(ii) 0.2 percent for guarantees to In20 sular Areas.

21 ‘‘(B) REMAINING AMOUNTS.—Of the

22 amount remaining after the allocations under

23 subparagraph (A) in each fiscal year—
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1 ‘‘(i) 60 percent shall be used for guar2 antees to units of general local govern3 ment; and

4 ‘‘(ii) 40 percent shall be used for

5 guarantees to States.

6 ‘‘(C) WAIVER.—The Secretary may waive

7 the requirements of subparagraphs (A) and (B)

8 in any fiscal year only to the extent to which

9 there is an absence of qualified applicants or

10 proposed activities from Indian tribes, Insular

11 Areas, units of general local government, or

12 States.

13 ‘‘(c) TOTAL OUTSTANDING AMOUNT.—No guarantee

14 or commitment to guarantee shall be made with respect

15 to any note or other obligation if the total outstanding

16 notes or obligations guaranteed under this section on be17 half of a participating jurisdiction (excluding any amount

18 defeased under a contract entered into under subsection

19 (e)(1)) would thereby exceed an amount equal to 5 times

20 the amount of the participating jurisdiction’s latest

21 HOME allocation.

22 ‘‘(d) USE OF FUNDS.—Notwithstanding any other

23 provision of this title, funds allocated to the participating

24 jurisdiction under this title (including program income de25 rived therefrom) may be used by the participating jurisdic-
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1 tion or by the Secretary, in the payment of principal and

2 interest due on the notes or other obligations guaranteed

3 pursuant to this section and the payment of such servic4 ing, underwriting, or other issuance or collection charges

5 as may be specified in regulations issued by the Secretary.

6 ‘‘(e) REPAYMENT GUARANTEE.—To assure the full

7 repayment of notes or other obligations guaranteed here8 under as well as the issuance or collection charges speci9 fied by the Secretary under subsection (d), and as a prior

10 condition for receiving such guarantees, the Secretary

11 shall require the participating jurisdiction (and its des12 ignated public agency issuer, if any) to—

13 ‘‘(1) enter into a contract, in a form acceptable

14 to the Secretary, for repayment of such notes or

15 other obligations and the other specified charges;

16 ‘‘(2) pledge as security for such repayment any

17 allocation for which the participating jurisdiction

18 may become eligible under this title; and

19 ‘‘(3) furnish, at the discretion of the Secretary,

20 such other security as may be deemed appropriate

21 by the Secretary in making such guarantees, which

22 may include increments in local tax receipts gen23 erated by the housing assisted under this section or

24 disposition proceeds from the sale of land or hous25 ing.
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1 ‘‘(f) APPLICATION OF ALLOCATION TO REPAY2 MENTS.—Notwithstanding any other provision of this title

3 or any other Federal, State, or local law, the Secretary

4 may apply allocations pledged pursuant to subsection (e)

5 to any repayments due the United States as a result of

6 such guarantees.

7 ‘‘(g) FULL FAITH AND CREDIT.—The full faith and

8 credit of the United States is pledged to the payment of

9 all guarantees made under this section. Any such guaran10 tee made by the Secretary shall be conclusive evidence of

11 the eligibility of the notes or other obligations for such

12 guarantee with respect to principal and interest, and the

13 validity of any such guarantee so made shall be incontest14 able in the hands of a holder of the guaranteed obligations.

15 ‘‘(h) TAXES.—

16 ‘‘(1) IN GENERAL.—Obligations guaranteed

17 under this section shall be subject to Federal tax18 ation as provided in paragraph (2).

19 ‘‘(2) INTEREST PAYMENTS.—With respect to

20 any obligation guaranteed under to this section, the

21 interest paid on such obligation shall be included in

22 gross income for the purpose of chapter 1 of the In23 ternal Revenue Code of 1954.

24 ‘‘(i) MONITORING BY THE SECRETARY.—The Sec25 retary shall monitor the use of guarantees under this sec-
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1 tion by eligible participating jurisdictions. If the Secretary

2 finds that 50 percent of the aggregate guarantee authority

3 for that year has been committed, the Secretary may—

4 ‘‘(1) impose limitations on the amount of guar5 antees any participating jurisdiction may receive in

6 any fiscal year of $35,000,000; or

7 ‘‘(2) request the enactment of legislation in8 creasing the aggregate limitation on guarantees

9 under this section.

10 ‘‘(j) PROHIBITION ON FEES AND CHARGES.—Except

11 as provided in subsection (d), no fee or other charge may

12 be imposed by the Secretary or any other Federal agency

13 on or with respect to a guarantee made by the Secretary

14 under this section.

15 ‘‘(k) GUARANTEE OF TIMELY PAYMENT.—

16 ‘‘(1) IN GENERAL.—The Secretary may, upon

17 such terms and conditions as the Secretary deems

18 appropriate, guarantee the timely payment of the

19 principal of and interest on such trust certificates or

20 other obligations as shall—

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

22 other offeror approved for purposes of this sub23 section by the Secretary, and

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

25 pool composed of notes or other obligations
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1 guaranteed or eligible for guarantee by the Sec2 retary under this section.

3 ‘‘(2) FULL FAITH AND CREDIT.—To the same

4 extent as provided in subsection (g), the full faith

5 and credit of the United States is pledged to the

6 payment of all amounts which may be required to be

7 paid under any guarantee by the Secretary under

8 this subsection.

9 ‘‘(3) SUBROGATION.—If the Secretary pays a

10 claim under a guarantee issued under this section,

11 the Secretary shall be subrogated fully to the rights

12 satisfied by such payment.

13 ‘‘(4) PREEMPTION.—No provision of Federal,

14 State, or local law shall preclude or limit the exercise

15 by the Secretary of—

16 ‘‘(A) the power to contract with respect to

17 public offerings and other sales of notes, trust

18 certificates and other obligations guaranteed

19 under this section upon such terms and condi20 tions as the Secretary deems appropriate;

21 ‘‘(B) the right to enforce by any means

22 deemed appropriate by the Secretary any such

23 contract; or

24 ‘‘(C) the Secretary’s ownership rights, as

25 applicable, in notes, certificates or other obliga-
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1 tions guaranteed under this section, or con2 stituting the trust or pool against which trust

3 certificates or other obligations guaranteed

4 under this section are offered.

5 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There

6 are authorized to be appropriated such sums as may be

7 necessary for each of fiscal years 1995 and 1996 for the

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

9 Congressional Budget Act, of guaranteed loans under this

10 section.’’.

11 SEC. 502. HOME AUTHORIZATION OF APPROPRIATIONS.

12 Section 205 of the Cranston-Gonzalez National Af13 fordable Housing Act (42 U.S.C. 12724) is amended to

14 read as follows:

15 ‘‘SEC. 205. AUTHORIZATION.

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

17 this title $2,000,000,000 for fiscal year 1995, and

18 $2,300,000,000 for fiscal year 1996, of which—

19 ‘‘(1) not more than $20,000,000 for fiscal year

20 1995, and $14,000,000 for fiscal year 1996, shall be

21 for community housing partnership activities author22 ized under section 233; and

23 ‘‘(2) not more than $17,000,000 for fiscal year

24 1995, and $11,000,000 for fiscal year 1996, shall be
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1 for activities in support of State and local housing

2 strategies authorized under subtitle C.’’.

3 SEC. 503. MONITORING OF COMPLIANCE.

4 Section 226(b) of the Cranston-Gonzalez National

5 Affordable Housing Act (42 U.S.C. 12756(b)) is amended

6 to read as follows:

7 ‘‘(b) PERIODIC MONITORING.—Each participating ju8 risdiction shall review the activities of owners of affordable

9 housing assisted under this title to assess compliance with

10 the requirements of this title. Such review shall include

11 annual review of program participant compliance with all

12 applicable program requirements to adequately monitor

13 HOME funded activities. Such review shall also include

14 onsite inspection once every 2 years to verify compliance

15 with housing codes and other applicable regulations. The

16 results of each review shall be included in the jurisdiction’s

17 performance report submitted to the Secretary under sec18 tion 108(a) and made available to the public.’’.

19 SEC. 504. STABILIZATION OF HOME FUNDING THRESH20 OLDS.

21 The Cranston-Gonzalez National Affordable Housing

22 Act (42 U.S.C. 1274 et seq.) is amended as follows:

23 (1) REPEAL.—Sections 216(10) and 217b(4)

24 are hereby repealed.
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1 (2) MINIMUM LOCAL ALLOCATION.—Section

2 217(b)(3) is amended—

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

4 those jurisdictions’’ and all that follows up to

5 the period and inserting the following: ‘‘jurisdic6 tions that are not participating jurisdictions

7 that are allocated an amount of $500,000 or

8 greater and jurisdictions that are participating

9 jurisdictions shall receive an allocation’’; and

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

12 (3) PARTICIPATION BY STATES AND LOCAL

13 GOVERNMENTS.—Section 216 is amended—

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

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

16 and inserting ‘‘A jurisdiction’’; and

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

19 SEC. 505. HOME INVESTMENTS.

20 Section 212(b) of the Cranston-Gonzalez National

21 Affordable Housing Act (42 U.S.C. 12743(b)) is amended

22 to read as follows:

23 ‘‘(b) INVESTMENTS.—Participating jurisdictions

24 shall have discretion to invest funds made available under

25 this subtitle as equity investments, interest-bearing loans
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1 or advances, noninterest-bearing loans or advances, loan

2 guarantees, interest subsidies or other forms of assistance

3 or credit enhancement that the Secretary has determined

4 to be consistent with the purposes of this title. Each par5 ticipating jurisdiction shall have the right to establish the

6 terms of assistance.’’.

7 SEC. 506. RETURN OF MATCHING INVESTMENT.

8 Section 219(a) of the Cranston-Gonzalez National

9 Affordable Housing Act (42 U.S.C. 12749(a)) is amend10 ed—

11 (1) by striking ‘‘except that, if the’’ and insert12 ing the following: ‘‘except that—

13 ‘‘(1) if the’’;

14 (2) by striking the period at the end and insert15 ing ‘‘; and’’; and

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

17 paragraph:

18 ‘‘(2) if the repayment of funds drawn from a

19 jurisdiction’s Home Investment Trust Fund and any

20 payment of interest or other return on the invest21 ment of such funds result from a State’s matching

22 investment, and the State program providing the

23 match provides housing opportunities substantially

24 equivalent to the HOME program, the matching in25 vestment shall be returned to the State for reinvest-
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1 ment through the State’s substantially equivalent

2 housing program.’’.

3 SEC. 507. ADJUSTMENT OF QUALIFYING RENT.

4 Section 215(a)(2) of the Cranston-Gonzalez National

5 Affordable Housing Act (42 U.S.C. 12745(a)(2)) is

6 amended to read as follows:

7 ‘‘(2) ADJUSTMENT OF QUALIFYING RENT.—

8 ‘‘(A) IN GENERAL.—The Secretary may

9 adjust the qualifying rent established for a

10 project under paragraph (1)(A), only if the Sec11 retary finds that such adjustment is necessary

12 to support the continued financial viability of

13 the project and only by such amount as the

14 Secretary determines is necessary to maintain

15 continued financial viability of the project.

16 ‘‘(B) CONFORMITY WITH SECTION 8

17 RENTS.—Notwithstanding subparagraph (A),

18 the Secretary shall adjust the qualifying rent

19 established for a project under paragraph

20 (1)(A) to allow rents to be set at levels per21 mitted under the section 8 program or com22 parable State-funded rental assistance pro23 grams for tenants with section 8 certificates or

24 comparable State rental assistance certifi25 cates.’’.
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1 SEC. 508. INCREASES IN TENANT INCOME.

2 Section 215(a)(3) of the Cranston-Gonzalez National

3 Affordable Housing Act (42 U.S.C. 12745(a)(3)) is

4 amended to read as follows:

5 ‘‘(3) INCREASES IN TENANT INCOME.—Housing

6 shall qualify as affordable housing despite a tem7 porary noncompliance with subparagraph (B) or (C)

8 of paragraph (1) only if—

9 ‘‘(A)(i) such noncompliance is caused by

10 increases in the incomes of existing tenants;

11 and

12 ‘‘(ii) actions satisfactory to the Secretary

13 are being taken to ensure that all vacancies are

14 filled in accordance with paragraph (1) until

15 such noncompliance is corrected; or

16 ‘‘(B)(i) notwithstanding subparagraph (A),

17 such noncompliance is caused by increases in

18 the incomes of existing very low-income tenants;

19 and

20 ‘‘(ii) actions satisfactory to the Secretary

21 are being taken to ensure that all vacancies are

22 filled in accordance with paragraph (1).

23 A tenant described in subparagraph (B) shall be

24 considered to be a very low-income for the purposes

25 of this title until the tenant’s income exceeds 70 per26 cent of median income for the area. A tenant de-
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1 scribed in this paragraph that no longer qualifies as

2 a low-income or very low-income family shall pay as

3 rent the lesser of the amount payable by the tenant

4 under State or local law, or 30 percent of the fami5 ly’s adjusted monthly income, as recertified annu6 ally. The preceding sentence shall not apply with re7 spect to funds made available under this Act for

8 units that have been allocated a low-income housing

9 tax credit by a housing credit agency pursuant to

10 section 42 of the Internal Revenue Code of 1986.’’.

11 TITLE VI—MULTIFAMILY AND

12 SUPPORTIVE HOUSING

13 Subtitle A—Preservation

14 SEC. 601. COST-SAVING AMENDMENTS.

15 (a) CEILING RENTS.—Section 222(a)(2)(D) of the

16 Low-Income Housing Preservation and Resident Home17 ownership Act of 1990 (12 U.S.C. 4112(a)(2)(D)) is

18 amended to read as follows:

19 ‘‘(D) monthly rent contributions by current

20 and future tenants, including tenants receiving

21 assistance under section 8 of the United States

22 Housing Act of 1937, shall not exceed the less23 er of—

24 ‘‘(i) 30 percent of the adjusted income

25 of the tenant; or
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1 ‘‘(ii) 90 percent of the actual rent

2 paid for a comparable unit in comparable

3 unassisted housing in the market area in

4 which the eligible low-income housing is lo5 cated;

6 except that the rent contributions of tenants

7 (other than tenants receiving assistance under

8 section 8 of the United States Housing Act of

9 1937) occupying the housing at the time of any

10 increase may not be reduced under this sub11 paragraph.’’.

12 (b) FLOOR RENTS FOR LOW-INCOME TENANTS.—

13 Section 222(a)(2)(E) of the Low-Income Housing Preser14 vation and Resident Homeownership Act of 1990 (12

15 U.S.C. 4112(a)(2)(E)) is amended—

16 (1) in clause (i), by striking ‘‘and’’ at the end;

17 and

18 (2) by adding at the end the following clause:

19 ‘‘(iii)(I) to retain the tenant occu20 pancy profile required by subparagraph

21 (F)(i), tenants that are determined by the

22 Secretary to be low-income tenants at ini23 tial income certification upon occupancy,

24 or at the time of implementation of a plan

25 of action (whichever occurs last), shall pay
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1 for rent an amount that is not less than

2 the lesser of—

3 ‘‘(aa) 30 percent of 45 percent of

4 median income for the area (as deter5 mined by the Secretary and adjusted

6 for family size); or

7 ‘‘(bb) 90 percent of the actual

8 rent paid for a comparable unit in

9 comparable unassisted housing in the

10 market area in which the eligible low11 income housing is located.

12 Subject to subclause (II), payment of this

13 minimum rent shall be a condition of con14 tinued occupancy and eligibility for section

15 8 assistance.

16 ‘‘(II) Notwithstanding the rents re17 quired under subclause (I), a tenant who

18 occupies a unit designated for occupancy

19 by low-income persons and families, and

20 who becomes a very low-income tenant,

21 shall be provided with the next available

22 unit designated for occupancy by very low23 income persons and families, and, until

24 such unit becomes available, shall pay for

25 rent not more than the amount chargeable
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1 as rent under section 3(a) of the United

2 States Housing Act of 1937. Such tenant

3 shall not be evicted for nonpayment of rent

4 if the rent amounts set forth in this

5 subclause are paid. The costs resulting

6 from the difference between rents required

7 under subclause (I) and the rents per8 mitted under this subclause shall be incor9 porated into the section 8 contract for

10 units designated for occupancy by low-in11 come persons or families; and’’.

12 (c) SECTION 8 ASSISTANCE.—Section

13 222(a)(1)(E)(ii) of the Low-Income Housing Preservation

14 and Resident Homeownership Act of 1990 (12 U.S.C.

15 4112(a)(1)(E)) is amended—

16 (1) by striking ‘‘; and’’ at the end and inserting

17 a period; and

18 (2) by adding at the end the following: ‘‘For

19 any section 8 assistance provided under this subtitle,

20 whether through the extension of an existing con21 tract or the provision of a new contract for assist22 ance, the Secretary shall have the discretion to ad23 just contract rents within the limits established

24 under section 215, irrespective of the comparable

25 rent requirements set forth in section 8(c) of the
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1 United States Housing Act of 1937. Notwithstand2 ing any provision of law to the contrary, any conflict

3 pertaining to the computation of contract rents aris4 ing from differences between this subtitle and sec5 tion 8 of the United States Housing Act of 1937

6 shall, subject to the prior approval of the Secretary,

7 be resolved in favor of this subtitle; and’’.

8 (d) APPLICABILITY OF FEDERAL PREFERENCES.—

9 Section 222(a)(1)(F) of the Low-Income Housing Preser10 vation and Resident Homeownership Act of 1990 (12

11 U.S.C. 4112(a)(1)(F)) is amended—

12 (1) in clause (i)—

13 (A) by striking ‘‘rents for units becoming

14 available to new tenants shall be at levels ap15 proved by the Secretary that will ensure, to the

16 extent practicable, that the units will be’’ and

17 inserting ‘‘to the extent practicable, the units

18 becoming available to new tenants shall be’’;

19 and

20 (B) by striking ‘‘and’’ at the end;

21 (2) by redesignating clause (ii) as clause (iii);

22 and

23 (3) by inserting after clause (i) the following

24 new clause:
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1 ‘‘(ii) in order to maintain the proportions

2 of very low- and low-income families and per3 sons required by clause (i), owners shall be re4 quired to apply any required Federal preference

5 rules only with respect to tenants within each

6 low- or very low-income category, in accordance

7 with the approved tenant profile; and’’.

8 (e) DEFINITIONS.—Section 229(4) of the Low-In9 come Housing Preservation and Resident Homeownership

10 Act of 1990 (12 U.S.C. 4119(4)) is amended to read as

11 follows:

12 ‘‘(4)(A) The term ‘low-income tenants’ means

13 families or persons with incomes that exceed 50 per14 cent of the median income for the area (as deter15 mined by the Secretary with adjustments for family

16 size) but do not exceed 80 percent of the median in17 come for the area (as determined by the Secretary

18 with adjustments for family size).

19 ‘‘(B) The term ‘very low-income tenants’ means

20 families or persons with incomes that are less than

21 or equal to 50 percent of the median income for the

22 area (as determined by the Secretary with adjust23 ments for family size).’’.

24 (f) TRANSITION PROVISIONS.—
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1 (1) IN GENERAL.—Except as provided in para2 graph (2), this section shall take effect on the date

3 of enactment of this Act.

4 (2) EXCEPTION.—If an owner of eligible low-in5 come housing has a plan of action that has been ap6 proved by the Secretary and that is being imple7 mented as of the date of enactment of this Act, sub8 sections (a), (b), (c), and (d) shall not apply to cur9 rent tenants of such housing until the first date on

10 which the next annual rent adjustments are made

11 following the date of enactment of this Act.

12 SEC. 602. LOW-INCOME HOUSING PRESERVATION AUTHOR13 IZATION OF APPROPRIATIONS.

14 Section 234(a) of the Housing and Community De15 velopment Act of 1987 (12 U.S.C. 4124) is amended to

16 read as follows:

17 ‘‘(a) IN GENERAL.—There are authorized to be ap18 propriated for assistance and incentives authorized under

19 this subtitle $300,000,000 for fiscal year 1995 and

20 $300,000,000 for fiscal year 1996.’’.
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1 Subtitle B—Renewal of Expiring

2 Section 8 Contracts

3 SEC. 611. AUTHORITY TO ENTER INTO NEW CONTRACTS.

4 Section 8 of the United States Housing Act of 1937

5 (42 U.S.C. 1437f) is amended by adding at the end the

6 following new subsection:

7 ‘‘(z) RENEWAL OF SECTION 8 NEW CONSTRUCTION

8 AND SUBSTANTIAL REHABILITATION EXPIRING CON9 TRACTS.—

10 ‘‘(1) IN GENERAL.—Subject to appropriations,

11 the Secretary shall enter into new contracts to make

12 assistance payments to owners of qualified housing

13 pursuant to the provisions of subtitle B of title VI

14 of the Housing Choice and Community Investment

15 Act of 1994.

16 ‘‘(2) PROCEDURES.—The Secretary shall estab17 lish procedures to enter into new contracts pursuant

18 to paragraph (1) that—

19 ‘‘(A) ensure that the number of low- and

20 very low-income families receiving tenant- or

21 project-based assistance under this section at

22 least equals the number of affordable units

23 under expiring section 8 contracts; and

24 ‘‘(B) make assistance under this section

25 available to current tenants residing in units
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1 covered by an expiring contract which is not re2 placed, which assistance shall, to the maximum

3 extent practicable, be project-based assistance.

4 ‘‘(3) CALCULATION OF LIMIT.—Project-based

5 assistance contracts entered into under this sub6 section shall be excluded in computing the limit on

7 project-based assistance under subsection (d).’’.

8 SEC. 612. CRITERIA FOR ENTERING INTO NEW CONTRACTS.

9 (a) IN GENERAL.—Except as provided in subsection

10 (b), the Secretary shall enter into a new contract with an

11 owner of qualified housing assisted under an expiring con12 tract if the owner submits a proposal to enter into a new

13 contract for assistance under section 8 of the United

14 States Housing Act of 1937 pursuant to the terms, condi15 tions, and procedures set forth in this subtitle.

16 (b) EXCEPTIONS.—The Secretary may reject an own17 er’s proposal to enter into a new contract for assistance

18 under section 8 of the United States Housing Act of 1937

19 if—

20 (1) the owner has engaged in adverse financial

21 or managerial actions or omissions, including—

22 (A) knowingly violating any Federal, State,

23 or local law or regulation;

24 (B) knowingly and materially breaching a

25 section 8 assistance contract;
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•S 2281 PCS

1 (C) knowingly and materially violating any

2 applicable regulatory or other agreement with

3 the Secretary;

4 (D) repeatedly failing to make mortgage

5 payments;

6 (E) failing to maintain the property after

7 receipt of notice and an opportunity to cure; or

8 (F) committing any actions or omissions

9 which would warrant suspension or debarment

10 by the Secretary;

11 (2) the owner fails to follow the procedures set

12 forth in this subtitle;

13 (3) the rents proposed by the owner, after nego14 tiation with the Secretary, exceed the maximum

15 amount permitted under section 616; or

16 (4) the poor condition of the property cannot be

17 remedied in a cost-effective manner.

18 (c) OPPORTUNITY TO DISPUTE FINDING.—The Sec19 retary shall provide an owner whose proposal to enter into

20 a new contract has been rejected by the Secretary pursu21 ant to one of the exceptions set forth in subsection (b)

22 with an opportunity to dispute the basis for such rejection

23 within 30 days of receipt of notice by the owner of the

24 rejection. The Secretary may affirm, modify, or reverse

25 the decision to reject the owner’s proposal. The Sec-
233

•S 2281 PCS

1 retary’s determination shall be final and shall not be sub2 ject to judicial review.

3 SEC. 613. RENEWAL PROCESS.

4 (a) SECRETARY’S NOTICE TO OWNER.—Not less than

5 27 months prior to the expiration of an assistance contract

6 under section 8 the United States Housing Act of 1937,

7 the Secretary shall notify the owner of the expiration date

8 of the contract, the terms and conditions prerequisite to

9 the Secretary’s decision to enter into a new assistance con10 tract, and the notice requirements and timetables required

11 under this subtitle.

12 (b) OWNER’S INITIAL ELECTION.—Not later than 24

13 months prior to the expiration date, the owner shall make

14 an initial election to enter into a new contract or terminate

15 the contract upon the expiration date.

16 (c) FORMAL SUBMISSION OF DETAILED PROPOSAL

17 TO ENTER INTO NEW HOUSING ASSISTANCE CON18 TRACT.—Not later than 3 months after the date on which

19 an owner elects to enter into a new contract pursuant to

20 subsection (b), the owner shall submit to the Secretary

21 a detailed proposal that meets the requirements of this

22 subtitle.

23 (d) RESPONSE BY THE SECRETARY TO OWNER’S

24 PROPOSAL.—
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1 (1) RESPONSE DEADLINE.—Not later than 120

2 days after receipt of an owner’s submission pursuant

3 to subsection (c), the Secretary shall accept, reject,

4 or require a modification of the proposal. If the Sec5 retary fails to respond prior to the expiration of the

6 120-day period, the proposal shall be deemed to be

7 accepted.

8 (2) EVALUATION AND NEGOTIATION.—The Sec9 retary shall establish procedures to evaluate an own10 er’s detailed proposal and to negotiate the proposal

11 with the owner.

12 (3) BASIS FOR REJECTION.—The Secretary

13 may not reject a proposal submitted pursuant to

14 subsection (c) for any reason other than those set

15 forth in section 612(b).

16 (4) FINAL DECISION.—Not later than 12

17 months prior to the expiration date of an assistance

18 contract, the Secretary shall make a final decision

19 regarding entering into a new assistance contract.

20 (e) TRANSITION.—Subject to an owner’s agreement,

21 the Secretary shall extend the term of any expiring con22 tract for a period sufficient to facilitate notice under this

23 section. If an owner of a project with an expiring contract

24 does not agree to extend the contract, the Secretary shall
235

•S 2281 PCS

1 make available to tenants currently residing in the project

2 assistance authorized under this subtitle.

3 SEC. 614. ASSISTANCE FOR TENANTS.

4 (a) ELIGIBLE TENANTS.—The Secretary shall make

5 available to residents residing in units covered by an expir6 ing contract that is not replaced with a new assistance

7 contract either—

8 (1) project-based assistance in a unit which is

9 located in the same market area, as defined by the

10 Secretary, and for which the rent does not exceed

11 the amount chargeable for rent under section 3(a) of

12 the United States Housing Act of 1937; or

13 (2) tenant-based assistance under section 8 of

14 the United States Housing Act of 1937.

15 (b) ADDITIONAL ASSISTANCE.—In connection with

16 tenant-based assistance provided under subsection (a)(2),

17 the Secretary is authorized to increase rent levels per18 mitted under section 8(c)(1) of the United States Housing

19 Act of 1937 for a period not to exceed 18 months to facili20 tate a tenant’s continued residence in the tenant’s current

21 dwelling unit.

22 (c) TYPE OF ASSISTANCE.—The Secretary shall de23 termine the type of assistance to be provided under this

24 section in consultation with eligible tenants.

25 (d) TENANT NOTIFICATION.—
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•S 2281 PCS

1 (1) IN GENERAL.—Notwithstanding section

2 8(c)(9) of the United States Housing Act of 1937,

3 the owner shall provide tenants with not less than

4 12 months notice prior to the expiration date of the

5 contract. Such notice shall specify the process for

6 entering into new assistance contracts under this

7 section, the status of the renewal process, and the

8 types of assistance that may be made available to

9 tenants upon expiration of the contract.

10 (2) AUTHORITY TO EXTEND.—If the final plans

11 for the project have not been concluded 12 months

12 prior to the contract expiration date, the Secretary

13 may extend the expiring contract under identical

14 terms for a period terminating 12 months after the

15 date on which notice is provided under paragraph

16 (1).

17 (e) TENANT AND COMMUNITY OPPORTUNITY TO

18 COMMENT.—The Secretary shall establish procedures that

19 will provide tenants of a project covered by an expiring

20 contract and the relevant unit or units of general local

21 government an opportunity to participate in the renewal

22 process. Such procedures shall include the provision of

23 timely and adequate notice of proposed decisions (includ24 ing an owner’s decision not to enter into a new assistance

25 contract or the Secretary’s final decision to reject an own-
237

•S 2281 PCS

1 er’s proposal), timely access to relevant information, and

2 sufficient time and opportunity to comment on such infor3 mation and proposed decisions.

4 (f) TECHNICAL ASSISTANCE.—To further the pur5 poses of this subtitle, the Secretary may provide, directly

6 or indirectly, to nonprofit organizations and bona fide or7 ganizations representing or assisting tenants residing in

8 projects with expiring contracts, technical assistance for

9 activities in connection with contracts that are not likely

10 to be replaced with a new assistance contract. Of the

11 amounts appropriated under section 621, not more than

12 $5,000,000 shall be available to carry out this subsection.

13 SEC. 615. PROCEDURES FOR VOLUNTARY SALE TO QUALI14 FIED PURCHASER.

15 The Secretary shall establish procedures to facilitate

16 the voluntary sale of each project subject to a contract

17 that is not replaced with a new assistance contract pursu18 ant to this section to a qualified purchaser who meets the

19 requirements set forth in section 618.

20 SEC. 616. RENT LEVELS IN NEW CONTRACTS.

21 (a) INITIAL RENT LEVELS.—The Secretary shall ap22 prove proposed initial rent levels that do not exceed 120

23 percent of fair market rents for the relevant metropolitan

24 market area, if such levels—
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•S 2281 PCS

1 (1) reflect the requirements of sections 617 and

2 618; and

3 (2) do not exceed current rents under the expir4 ing contract, as adjusted under section 8(c)(2) of

5 the United States Housing Act of 1937.

6 Notwithstanding the Secretary’s authority under this sub7 section, an owner of a project with current rent levels that

8 do not exceed 120 percent of fair market rents for the

9 relevant metropolitan market area may, subject to the Sec10 retary’s approval, proceed under the budget-based ap11 proach set forth in subsection (b) if the actual and pro12 jected costs of operating the project so require.

13 (b) BUDGET-BASED APPROACH.—

14 (1) IN GENERAL.—For owners whose proposed

15 rent levels exceed the amounts permitted under sub16 section (a), the Secretary shall determine acceptable

17 rent levels pursuant to negotiations with the owner

18 based upon actual and projected costs of operating

19 the project. Rents set pursuant to this subsection

20 shall be established, after considering any refinanc21 ing or mortgage debt restructuring that occurs pur22 suant to section 617, at a level that would provide

23 income sufficient to support the following:

24 (A) DEBT SERVICE.—Debt service.
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•S 2281 PCS

1 (B) PROJECT OPERATING EXPENSES.—

2 Project operating expenses, including—

3 (i) contributions to adequate reserves;

4 (ii) the costs of maintenance and nec5 essary rehabilitation, as approved by the

6 Secretary; and

7 (iii) other costs permitted under sec8 tion 8 of the United States Housing Act of

9 1937 and approved by the Secretary.

10 (C) OPERATING LOSSES ALLOWANCE.—An

11 adequate allowance for potential operating

12 losses due to vacancies and failure to collect

13 rents, as determined by the Secretary.

14 (D) REASONABLE RATE OF RETURN AL15 LOWANCE.—An allowance for a reasonable rate

16 of return to the owner, as determined by the

17 Secretary.

18 (E) OTHER EXPENSES.—Other expenses

19 determined necessary by the Secretary.

20 (2) MAXIMUM RENT.—The Secretary shall not

21 enter into new contracts with an owner of a qualified

22 housing project if the rents set pursuant to this sub23 section exceed the lesser of—
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•S 2281 PCS

1 (A) current rents under the expiring con2 tract, as adjusted pursuant to section 8(c)(2) of

3 the United States Housing Act of 1937;

4 (B) 144 percent of the fair market rents

5 for the metropolitan market area; and

6 (C) rent levels of comparable unassisted

7 housing in the same local market area.

8 (3) EXCEPTIONS TO MAXIMUM RENT.—

9 (A) IN GENERAL.—The Secretary is au10 thorized to enter into new contracts with own11 ers at rents that exceed the maximum rent set

12 forth in paragraph (2) if the Secretary—

13 (i) in consultation with tenants and

14 the relevant unit of general local govern15 ment, determines that the project rep16 resents a unique housing resource;

17 (ii) in consultation with tenants and

18 the relevant unit of general local govern19 ment, determines that the housing needs of

20 the tenants and the community in which

21 the project is located cannot be adequately

22 addressed through the Secretary’s provi23 sion of tenant-based or project-based as24 sistance to current tenants, in accordance
241

•S 2281 PCS

1 with subsections (a) and (b) of section

2 615; or

3 (iii) determines that the project can4 not be refinanced or restructured, pursu5 ant to the exceptions set forth in section

6 617(d).

7 (B) RENT LEVELS.—The Secretary may

8 enter into new contracts at rent levels—

9 (i) in connection with projects that

10 meet the exceptions set forth in clause (i)

11 or (ii) of subparagraph (A), that are the

12 higher of rents determined under the budg13 et-based process set forth in paragraph (1)

14 or rents of comparable unassisted housing

15 in the same market area; and

16 (ii) in connection with projects that

17 only meet the exception set forth in clause

18 (iii) of subparagraph (A), that are the

19 lower of rents determined under the budg20 et-based process set forth in paragraph (1)

21 or current rent levels, as adjusted pursuant

22 to section 8(c)(2) of the United States

23 Housing Act of 1937.

24 (c) RENT ADJUSTMENTS.—The Secretary shall ad25 just initial rents approved under subsection (a) pursuant
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•S 2281 PCS

1 to section 8(c)(2) of the United States Housing Act of

2 1937. The Secretary shall make any adjustments to initial

3 rents approved under subsection (b) pursuant to an an4 nual operating cost adjustment.

5 SEC. 617. FINANCING AND RESTRUCTURING UNDERLYING

6 DEBT; DISCRETIONARY AUTHORITIES; RESID7 UAL RECEIPTS.

8 (a) IN GENERAL.—Prior to entering into a new con9 tract with a present or future owner of qualified housing

10 under section 8(z) of the United States Housing Act of

11 1937 (as added by section 611) the Secretary shall encour12 age and, subject to the exceptions in subsection (d), may

13 require—

14 (1) the restructuring of debt if the costs to the

15 Federal Government of such restructuring are less

16 than the costs incurred by the Federal Government

17 under a section 8 contract at the project’s current

18 debt level; and

19 (2) the refinancing of all debt that is financed

20 at a rate 250 basis points in excess of prevailing

21 market rates for debt with a similar maturity.

22 Notwithstanding section 8(c)(2)(C) of the United States

23 Housing Act of 1937, any project refinancing or debt re24 structuring shall be accompanied by a corresponding re25 duction in section 8 rent levels.
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•S 2281 PCS

1 (b) FHA-INSURED AND SECTION 202 PROJECTS.—

2 Subject to the exceptions set forth in subsection (d), prior

3 to entering into a new contract with an owner of a project

4 insured by the Secretary or assisted under section 202 of

5 the Housing Act of 1959, the Secretary shall require any

6 debt to be restructured or refinanced to a level sufficient

7 to meet the maximum rent requirements of section 616(b).

8 (c) STATE-FINANCED PROJECTS.—The Secretary

9 shall establish procedures to inform State agencies that

10 insure or finance mortgages of the provisions of this sub11 title, and shall encourage such agencies to refinance or

12 otherwise restructure debt which meets the conditions of

13 paragraph (1) or (2) of subsection (a).

14 (d) EXCEPTIONS.—The Secretary shall not require

15 the refinancing or debt restructuring of any project, if—

16 (1) the project was financed through obligations

17 where such refinancing or debt restructuring is in18 consistent with applicable law or agreements govern19 ing such financing; or

20 (2) in the Secretary’s determination, the refi21 nancing will not result in significant savings to the

22 Secretary or to the mortgagor.

23 (e) DISCRETIONARY ASSISTANCE.—To facilitate re24 newal consistent with this section and section 616(b), the
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•S 2281 PCS

1 Secretary may, from amounts appropriated under this

2 subtitle—

3 (1) pay the owner’s nonmortgagable transaction

4 costs;

5 (2) provide the State agency or the mortgagee

6 with an equitable share of the savings recaptured

7 from the refinancing;

8 (3) apply a share of the savings recaptured

9 from the refinancing to the project’s reserves or cap10 ital expenses;

11 (4) bifurcate the note to leave a first note serv12 iceable within rents reflective of the local market;

13 and

14 (5) assist in financing a project’s rehabilitation

15 needs through the provision of up-front grants

16 from—

17 (A) residual receipts distributed to the Sec18 retary;

19 (B) the budget authority provided for in20 creases in new assistance contracts under sec21 tion 8 of the United States Housing Act of

22 1937 to pay for rehabilitation, if the Secretary

23 determines that the provision of such grants in

24 addition to section 8 rental assistance would be

25 cost-effective; and
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•S 2281 PCS

1 (C) savings resulting from refinancing or

2 otherwise restructuring the debt.

3 (f) RESIDUAL RECEIPTS.—

4 (1) IN GENERAL.—Residual receipts distributed

5 to the Secretary shall be retained by the Secretary

6 for use under section 8(z) of the United States

7 Housing Act of 1937.

8 (2) EXPEDITED ACQUISITION.—The Secretary

9 may expedite the acquisition of residual receipts by

10 entering into agreements with owners of housing

11 covered by an expiring contract to provide such

12 owner with a share of the receipts, not to exceed 15

13 percent, only if the share will be applied to the

14 project or to its reserves.

15 SEC. 618. RENEWAL REQUIREMENTS.

16 The Secretary may enter into a new contract for as17 sistance under section 8(z) of the United States Housing

18 Act of 1937 with an owner or purchaser of qualified hous19 ing only if—

20 (1) the owner or purchaser agrees to—

21 (A) a basic contract term of not less than

22 5 years; and

23 (B) renewal of the contract for additional

24 terms of 5 years, without limitation, subject to

25 the availability of appropriations and the Sec-
246

•S 2281 PCS

1 retary’s procedures governing renewal, as set

2 forth in this subtitle;

3 (2) the owner or purchaser agrees to a proposed

4 method for calculating rent consistent with section

5 616;

6 (3) the owner or purchaser agrees to a sound

7 financial management program, consistent with sec8 tion 617;

9 (4) the owner or purchaser agrees to provide

10 adequate organization, staff, and financial resources

11 to the project;

12 (5) the Secretary determines that proposed rent

13 levels are sufficient to ensure that the project will

14 remain in decent, safe, and sanitary condition and in

15 compliance with any standards under applicable

16 Federal, State, or local laws, rules, ordinances, regu17 lations, or contractual provisions relating to the

18 physical condition of the project; and

19 (6) the owner or purchaser agrees to meet such

20 other requirements as the Secretary determines ap21 propriate.

22 SEC. 619. DELEGATION OF AUTHORITY.

23 The Secretary may delegate authority under this sub24 title as the Secretary deems appropriate to officials of

25 State or local government.
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•S 2281 PCS

1 SEC. 620. DEFINITIONS.

2 (a) DEFINITIONS.—For purposes of this subtitle—

3 (1) the term ‘‘expiration date’’ means the date

4 on which an expiring contract expires;

5 (2) the term ‘‘expiring contract’’ means, in con6 nection with the new construction or substantial re7 habilitation of certain multifamily housing projects,

8 assistance under section 8(b)(2) of the United

9 States Housing Act of 1937, as such section existed

10 before November 30, 1983, which, under the terms

11 of the contract, will expire;

12 (3) the term ‘‘knowing’’ or ‘‘knowingly’’ means

13 having actual knowledge of or acting with deliberate

14 ignorance or reckless disregard;

15 (4) the term ‘‘qualified housing’’ means—

16 (A) a multifamily housing project that was

17 constructed or substantially rehabilitated pursu18 ant to assistance provided under section 8(b)(2)

19 of the United States Housing Act of 1937, as

20 such section existed before November 30, 1983,

21 and for which assistance is provided pursuant

22 to an expiring contract;

23 (B) housing described in subparagraph (A)

24 that is acquired by a purchaser; or

25 (C) housing under an assistance contract

26 pursuant to section 614(a)(1); and
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•S 2281 PCS

1 (5) the term ‘‘renewal’’ means the replacement

2 of an expiring contract with a new contract for as3 sistance under section 8 of the United States Hous4 ing Act of 1937, pursuant to the procedures of this

5 subtitle.

6 SEC. 621. IMPLEMENTATION.

7 The Secretary shall establish such requirements as

8 may be necessary to carry out the provisions of this sub9 title. The Secretary shall issue—

10 (1) a proposed rule not later than 6 months

11 after the date of enactment of this Act; and

12 (2) a final rule based on the proposed rule,

13 after notice and opportunity for public comment, not

14 later than 1 year after the date of enactment of this

15 Act.

16 SEC. 622. EVALUATION.

17 The Secretary shall carry out a study of the renewal

18 process authorized under this subtitle. The study shall in19 clude an assessment of—

20 (1) the number of projects and corresponding

21 units on which the contracts are terminated, the lo22 cation of such projects, and the reasons for such ter23 mination;

24 (2) the types of displacement assistance offered

25 pursuant to section 614;
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•S 2281 PCS

1 (3) the amount of savings generated;

2 (4) the number of projects where debt has been

3 refinanced or otherwise restructured, together with

4 the resulting savings amount;

5 (5) the number of projects acquired by a pur6 chaser;

7 (6) the difference, if any, in rent levels under

8 an expiring contract and new rent levels established

9 under a new contract for assistance; and

10 (7) the numbers of projects for which rents are

11 established pursuant to section 616(a).

12 SEC. 623. AUTHORIZATION OF APPROPRIATIONS.

13 There are authorized to be appropriated under sec14 tion 5(c) of the United States Housing Act of 1937 (42

15 U.S.C. 1437f) for contracts under section 8(z) of such Act

16 such sums as may be necessary to carry out the provisions

17 of this subtitle.

18 Subtitle C—Other Section 8

19 Program Amendments

20 SEC. 631. REFINANCING HIGH INTEREST MULTIFAMILY

21 MORTGAGES AND ELIMINATING UNNECES22 SARY COSTS.

23 (a) REFINANCING INCENTIVE.—Section 8 of the

24 United States Housing Act of 1937 (42 U.S.C. 1437f),
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•S 2281 PCS

1 as amended by section 611, is amended by adding at the

2 end the following new subsection:

3 ‘‘(aa) REFINANCING INCENTIVE.—

4 ‘‘(1) IN GENERAL.—The Secretary may pay all

5 or part of the up front costs of refinancing for each

6 project that—

7 ‘‘(A) is constructed, substantially rehabili8 tated, or moderately rehabilitated under this

9 section;

10 ‘‘(B) is subject to an assistance contract

11 under this section; and

12 ‘‘(C) was subject to a mortgage that has

13 been refinanced under section 223(a)(7) or sec14 tion 223(f) of the National Housing Act to

15 lower the periodic debt service payments of the

16 owner.

17 ‘‘(2) SHARE FROM REDUCED ASSISTANCE PAY18 MENTS.—The Secretary may pay the up front costs

19 of refinancing only—

20 ‘‘(A) to the extent that funds accrue to the

21 Secretary from the reduced assistance payments

22 that result from the refinancing; and

23 ‘‘(B) after the application of amounts in

24 accordance with section 1012 of the Stewart B.
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•S 2281 PCS

1 McKinney Homeless Assistance Amendments

2 Act of 1988.’’.

3 (b) FHA CONTRACT AMENDMENTS.—Section

4 223(a)(7) of the National Housing Act (42 U.S.C.

5 1715n(a)(7)) is amended—

6 (1) in subparagraph (B), by striking ‘‘and’’ at

7 the end; and

8 (2) by striking ‘‘; or’’ at the end and inserting

9 the following: ‘‘; and (D) any multifamily mortgage

10 that is refinanced under this paragraph shall be doc11 umented through amendments to the existing insur12 ance contract and shall not be structured through

13 the provision of a new insurance contract; or’’.

14 SEC. 632. TERMINATION AND REUSE OF SECTION 8 HAP

15 CONTRACT BUDGET AUTHORITY.

16 Section 8 of the United States Housing Act of 1937

17 (42 U.S.C. 1437f), as amended by sections 611 and 631,

18 is amended by adding at the end the following new sub19 section:

20 ‘‘(bb) TERMINATION OF SECTION 8 CONTRACTS AND

21 REUSE OF RECAPTURED BUDGET AUTHORITY.—

22 ‘‘(1) GENERAL AUTHORITY.—The Secretary

23 may reuse any budget authority that is recaptured

24 on account of the termination, in whole or in part,

25 of a housing assistance payments contract (other
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•S 2281 PCS

1 than a contract for tenant-based assistance) only for

2 one or more of the following:

3 ‘‘(A) TENANT-BASED ASSISTANCE.—Pur4 suant to a contract with a public housing agen5 cy, to provide tenant-based assistance under

6 this section to families occupying units formerly

7 assisted under the terminated contract.

8 ‘‘(B) PROJECT-BASED ASSISTANCE.—Pur9 suant to a contract with a public housing agen10 cy, or directly with an owner, to provide assist11 ance to permit the agency to attach the assist12 ance to one or more structures, in accordance

13 with subsection (d)(2) or (o), except that this

14 assistance shall not be taken into consideration

15 in determining compliance with any percentage

16 limitation for project-based assistance under

17 subsection (d)(2) or (o).

18 ‘‘(2) FAMILIES OCCUPYING UNITS FORMERLY

19 ASSISTED UNDER TERMINATED CONTRACT.—In

20 choosing among the alternatives set forth in para21 graph (1), the Secretary shall first make available

22 tenant- or project-based assistance to families occu23 pying units formerly assisted under the terminated

24 contract.
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•S 2281 PCS

1 ‘‘(3) NEW RENTS.—Rents established in con2 nection with a contract under this subsection shall

3 be established in accordance with subsection (c)(2),

4 but shall not exceed the amount of rent previously

5 paid under the terminated contract.

6 ‘‘(4) BUDGET SAVINGS.—To the extent that

7 new rents established under paragraph (3) are less

8 than the amount of rent previously paid under the

9 terminated contract, any budget authority remaining

10 shall be rescinded.’’.

11 SEC. 633. CIVIL MONEY PENALTIES FOR VIOLATION OF

12 SECTION 8 HAP CONTRACTS.

13 (a) BASIC AUTHORITY.—Title I of the United States

14 Housing Act of 1937 (42 U.S.C. 1437 et seq.), as amend15 ed by section 201, is amended by adding at the end the

16 following new section:

17 ‘‘SEC. 28. CIVIL MONEY PENALTIES AGAINST SECTION 8

18 OWNERS.

19 ‘‘(a) IN GENERAL.—The penalties set forth in this

20 section shall be in addition to any other available civil rem21 edy or criminal penalty, and may be imposed regardless

22 of whether or not the Secretary imposes other administra23 tive sanctions. The Secretary may not impose penalties

24 under this section for a violation, if a material cause of

25 the violation is the failure of the Secretary, an agent of
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•S 2281 PCS

1 the Secretary, or a public housing agency to comply with

2 an existing agreement.

3 ‘‘(b) VIOLATIONS OF HOUSING ASSISTANCE PAY4 MENT CONTRACTS FOR WHICH PENALTY MAY BE IM5 POSED.—

6 ‘‘(1) LIABLE PARTIES.—The Secretary may im7 pose a civil money penalty under this section on—

8 ‘‘(A) any owner of a property receiving

9 project-based assistance under section 8;

10 ‘‘(B) any general partner of a partnership

11 owner of such property; and

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

13 property that has an identity of interest with

14 the owner or the general partner of a partner15 ship owner of the property.

16 ‘‘(2) VIOLATIONS.—A penalty may be imposed

17 under this section in connection with project-based

18 assistance under section 8 for a knowing and mate19 rial breach of a housing assistance payments con20 tract, including the following:

21 ‘‘(A) DECENT, SAFE, AND SANITARY HOUS22 ING.—Failure to provide decent, safe, and sani23 tary housing.

24 ‘‘(B) FALSE STATEMENTS.—Knowing or

25 willful submission of false, fictitious, or fraudu-
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•S 2281 PCS

1 lent statements or requests for housing assist2 ance payments to the Secretary or to any de3 partment or agency of the United States.

4 ‘‘(3) AMOUNT OF PENALTY.—The amount of a

5 penalty imposed for a violation under this sub6 section, as determined by the Secretary, may not ex7 ceed $25,000 per violation.

8 ‘‘(c) AGENCY PROCEDURES.—

9 ‘‘(1) ESTABLISHMENT.—The Secretary shall

10 issue regulations establishing standards and proce11 dures governing the imposition of civil money pen12 alties under subsection (b). Such standards and pro13 cedures—

14 ‘‘(A) shall provide for the Secretary or

15 other department official to make the deter16 mination to impose the penalty;

17 ‘‘(B) shall provide for the imposition of a

18 penalty only after the liable party has received

19 notice and the opportunity for a hearing on the

20 record; and

21 ‘‘(C) may provide for review by the Sec22 retary of any determination or order, or inter23 locutory ruling, arising from such hearing, and

24 judicial review, as provided under subsection

25 (d).
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1 ‘‘(2) FINAL ORDERS.—If a hearing is not re2 quested prior to the expiration of the 15-day period

3 beginning on the date on which the notice of oppor4 tunity for hearing is received, the imposition of a

5 penalty under subsection (b) shall constitute a final

6 and nonappealable determination. If the Secretary

7 reviews the determination or order, the Secretary

8 may affirm, modify, or reverse that determination or

9 order. If the Secretary does not review the deter10 mination or order before the expiration of the 90-

11 day period beginning on the date on which the deter12 mination or order is issued, the determination or

13 order shall be final.

14 ‘‘(3) FACTORS IN DETERMINING AMOUNT OF

15 PENALTY.—In determining the amount of a penalty

16 under subsection (b), the Secretary shall take into

17 consideration—

18 ‘‘(A) the gravity of the offense;

19 ‘‘(B) any history of prior offenses (includ20 ing offenses occurring before the date of enact21 ment of this section) by the violator;

22 ‘‘(C) the ability of the violator to pay the

23 penalty;

24 ‘‘(D) any injury to tenants;

25 ‘‘(E) any injury to the public;
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1 ‘‘(F) any benefits received by the violator

2 as a result of the violation;

3 ‘‘(G) the deterrence of future violations;

4 and

5 ‘‘(H) such other factors as the Secretary

6 may establish by regulation.

7 ‘‘(4) PAYMENT OF PENALTY.—No payment of a

8 civil money penalty levied under this section shall be

9 payable out of project income.

10 ‘‘(d) JUDICIAL REVIEW OF AGENCY DETERMINA11 TION.—Judicial review of determinations made under this

12 section shall be carried out in accordance with section

13 537(e) of the National Housing Act.

14 ‘‘(e) REMEDIES FOR NONCOMPLIANCE.—

15 ‘‘(1) JUDICIAL INTERVENTION.—If a person or

16 entity fails to comply with the Secretary’s deter17 mination or order imposing a civil money penalty

18 under subsection (b), after the determination or

19 order is no longer subject to review as provided by

20 subsections (c) and (d), the Secretary may request

21 the Attorney General of the United States to bring

22 an action in an appropriate United States district

23 court to obtain a monetary judgment against that

24 person or entity and such other relief as may be

25 available. The monetary judgment may, in the
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1 court’s discretion, include the attorney’s fees and

2 other expenses incurred by the United States in con3 nection with the action.

4 ‘‘(2) NONREVIEWABILITY OF DETERMINATION

5 OR ORDER.—In an action under this subsection, the

6 validity and appropriateness of the Secretary’s deter7 mination or order imposing the penalty shall not be

8 subject to review.

9 ‘‘(f) SETTLEMENT BY SECRETARY.—The Secretary

10 may compromise, modify, or remit any civil money penalty

11 which may be, or has been, imposed under this section.

12 ‘‘(g) DEPOSIT OF PENALTIES.—Notwithstanding any

13 other provision of law, the Secretary shall apply all civil

14 money penalties collected under this section, or any por15 tion of such penalties, to the fund established under sec16 tion 201(j) of the Housing and Community Development

17 Amendments of 1978.

18 ‘‘(h) DEFINITIONS.—For purposes of this section—

19 ‘‘(1) the term ‘identity of interest managing

20 agent’ means an entity—

21 ‘‘(A) that has management responsibility

22 for a project;

23 ‘‘(B) in which the ownership entity, includ24 ing its general partner or partners (if applica25 ble), has an ownership interest; and
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1 ‘‘(C) over which such ownership entity ex2 erts effective control;

3 ‘‘(2) the terms ‘ownership interest in’ and ‘ef4 fective control’ shall have such meanings as the Sec5 retary shall by regulation prescribe; and

6 ‘‘(3) the term ‘knowing’ means having actual

7 knowledge of or acting with deliberate ignorance of

8 or reckless disregard for the prohibitions under this

9 section.’’.

10 (b) APPLICABILITY OF AMENDMENTS.—The amend11 ments made by subsection (a) shall apply only with respect

12 to—

13 (1) violations that occur on or after the effec14 tive date of final regulations implementing the

15 amendments made by this section; and

16 (2) in the case of a continuing violation (as de17 termined by the Secretary), any portion of a viola18 tion that occurs on or after such date.

19 (c) IMPLEMENTATION.—

20 (1) REGULATIONS.—The Secretary shall imple21 ment the amendments made by this section by regu22 lation issued after notice and opportunity for public

23 comment. The notice shall seek comments as to the

24 definitions of the terms ‘‘ownership interest in’’ and

25 ‘‘effective control’’, as such terms are used in the
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1 definition of the term ‘‘identity of interest managing

2 agent’’.

3 (2) TIMING.—A proposed rule implementing the

4 amendments made by this section shall be published

5 not later than January 20, 1995.

6 Subtitle D—Supportive Housing

7 SEC. 641. SECTION 811 RENTAL ASSISTANCE FOR PERSONS

8 WITH DISABILITIES.

9 (a) RENTAL ASSISTANCE FOR EXISTING BUILD10 INGS.—Section 811 of the Cranston-Gonzalez National

11 Affordable Housing Act (42 U.S.C. 8013) is amended—

12 (1) in subsection (d)(2), by adding at the end

13 the following: ‘‘The Secretary may enter into con14 tracts with private nonprofit organizations to provide

15 project rental assistance for supportive housing for

16 persons with disabilities, regardless of whether or

17 not that housing is developed with capital advances

18 under this section.’’;

19 (2) in subsection (e)—

20 (A) in paragraph (1), by inserting ‘‘with

21 capital advances’’ immediately after ‘‘assisted’’;

22 and

23 (B) in paragraph (2), by striking the first

24 2 sentences and inserting the following: ‘‘The

25 initial term of a contract entered into under
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1 subsection (d)(2) shall be 240 months for hous2 ing developed with a capital advance, and shall

3 be not more than 60 months for housing not

4 developed with a capital advance. The Secretary

5 shall, to the extent approved in appropriations

6 Acts, extend any expiring contracts for a term

7 of not less than 60 months.’’;

8 (3) in subsection (g)—

9 (A) in paragraph (1), by inserting ‘‘(if ap10 plicable)’’ immediately after ‘‘develop’’;

11 (B) in paragraph (3), by inserting ‘‘design

12 or’’ immediately after ‘‘which the’’; and

13 (C) in paragraph (5), by inserting ‘‘design

14 or’’ immediately after ‘‘which the’’;

15 (4) in subsection (j)—

16 (A) in paragraph (3)—

17 (i) by striking ‘‘An’’ and inserting the

18 following:

19 ‘‘(A) If the housing is to be assisted with

20 capital advances under this section, an’’; and

21 (ii) by adding at the end the following

22 new subparagraph:

23 ‘‘(B) If the housing is to be assisted only

24 with project rental assistance, the applicant

25 shall have ownership or control of a suitable
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1 site at the time of application. The Secretary

2 may approve a change in site at any time from

3 the date the application is submitted to the ex4 piration date of the rental assistance contract.’’;

5 and

6 (B) in paragraph (4), by striking ‘‘The’’

7 and inserting the following: ‘‘If the housing is

8 assisted with capital advances under this sec9 tion, the’’;

10 (5) in subsection (k)—

11 (A) in the second sentence of paragraph

12 (1), by striking ‘‘the development of’’;

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

14 ‘‘project’’ the following: ‘‘, consisting of one or

15 more buildings,’’; and

16 (C) in paragraph (5), by inserting imme17 diately after ‘‘disabilities’’ the following: ‘‘, or

18 that receives rental assistance under this sec19 tion to operate or project for supportive housing

20 for persons with disabilities’’; and

21 (6) in subsection (m)(3), by striking ‘‘(1)’’ and

22 inserting ‘‘(2)’’.

23 (b) TECHNICAL CHANGES.—

24 (1) DEFINITION OF PRIVATE NONPROFIT ORGA25 NIZATION.—Section 811(k)(6)(A) of the Cranston-
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1 Gonzalez National Affordable Housing Act (42

2 U.S.C. 8013(k)(6)(A)) is amended to read as fol3 lows:

4 ‘‘(A) that has received tax-exempt status

5 under paragraph (3) or (4) of section 501(c) of

6 the Internal Revenue Code of 1986;’’.

7 (2) REPEAL.—Section 8(i) of the United States

8 Housing Act of 1937 (42 U.S.C. 8013(i)) is hereby

9 repealed.

10 SEC. 642. SERVICE COORDINATORS IN SUPPORTIVE HOUS11 ING.

12 There are authorized to be appropriated for assist13 ance for service coordinators under section 676 of the

14 Housing and Community Development Act of 1992, sec15 tion 8(d)(2)(F)(i) of the United States Housing Act of

16 1937, section 202 of the Housing Act of 1959, and section

17 811 of the Cranston-Gonzalez National Affordable Hous18 ing Act, $15,000,000 for fiscal year 1995, and

19 $15,000,000 for fiscal year 1996.

20 SEC. 643. FUNDING FOR SUPPORTIVE HOUSING FOR THE

21 ELDERLY.

22 Section 601 of the Housing and Community Develop23 ment Act of 1992 (106 Stat. 3802) is amended by striking

24 subsection (a) and inserting the following:

25 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
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1 ‘‘(1) SUPPORTIVE HOUSING FOR THE ELDER2 LY.—There are authorized to be appropriated to

3 carry out section 202 of the Housing Act of 1949—

4 ‘‘(A) $1,015,000,000 for fiscal year 1995;

5 and

6 ‘‘(B) $1,045,450,000 for fiscal year

7 1996.’’.

8 SEC. 644. FUNDING FOR SUPPORTIVE HOUSING FOR PER9 SONS WITH DISABILITIES.

10 Section 601(a) of the Housing and Community De11 velopment Act of 1992 (106 Stat. 3802(a)), as amended

12 by section 623, is amended by adding at the end the fol13 lowing new subsection:

14 ‘‘(2) SUPPORTIVE HOUSING FOR PERSONS WITH

15 DISABILITIES.—There are authorized to be appro16 priated to carry out section 811 of the Cranston17 Gonzalez National Affordable Housing Act—

18 ‘‘(A) $435,000,000 for fiscal year 1995;

19 and

20 ‘‘(B) $448,050,000 for fiscal year 1996.’’.

21 SEC. 645. HOUSING OPPORTUNITIES FOR PERSONS WITH

22 AIDS.

23 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

24 863 of the Cranston-Gonzalez National Affordable Hous25 ing Act (42 U.S.C. 12912) is amended to read as follows:
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1 ‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

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

3 this subtitle $166,000,000 for fiscal year 1995 and

4 $166,000,000 for fiscal year 1996.’’.

5 Subtitle E—Miscellaneous

6 Provisions

7 SEC. 651. FLEXIBLE SUBSIDY PROGRAM.

8 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

9 201(j)(5) of the Housing and Community Development

10 Amendments of 1978 (12 U.S.C. 1715z–1a(j)(5)) is

11 amended to read as follows:

12 ‘‘(5) There are authorized to be appropriated

13 for assistance under the flexible subsidy fund an

14 amount not to exceed $50,000,000 for fiscal year

15 1995, and not to exceed $50,000,000 for fiscal year

16 1996.’’.

17 (b) USE OF SECTION 236 RENTAL ASSISTANCE

18 FUND AMOUNTS.—Section 236(f)(3) of the National

19 Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by

20 striking the last sentence.

21 SEC. 652. EXTENSION OF SECTION 221(g)(4) AUCTION PROVI22 SIONS.

23 The first sentence of section 221(g)(4)(C)(viii) of the

24 National Housing Act (12 U.S.C. 1715l(g)(4)(C)(viii)) is

25 amended by striking ‘‘September 30, 1995’’ and inserting

26 ‘‘December 31, 2005’’.
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1 SEC. 653. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT

2 DEMONSTRATIONS.

3 Section 542 of the Housing and Community Develop4 ment Act of 1992 (12 U.S.C. 1708) is amended—

5 (1) in subsection (b)(5), by striking ‘‘15,000

6 units over fiscal years 1993 and 1994’’ and inserting

7 ‘‘25,000 units over fiscal years 1993 through 1996’’;

8 and

9 (2) in subsection (c)(4), by striking ‘‘30,000

10 units over fiscal years 1993, 1994, and 1995’’ and

11 inserting ‘‘40,000 units over fiscal years 1993

12 through 1997’’.

13 SEC. 654. INDEMNIFICATION FOR PROJECT MANAGERS.

14 Section 207(l) of the National Housing Act (12

15 U.S.C. 1713(l)) is amended by adding at the end the fol16 lowing: ‘‘For properties acquired by the Secretary under

17 this section and for properties securing any mortgage as18 signed and transferred to or held by the Secretary, the

19 Secretary may indemnify management contractors against

20 claims brought by third persons for death, bodily injury,

21 or loss of or damage to property on such terms as the

22 Secretary determines appropriate.’’.
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1 SEC. 655. CIVIL MONEY PENALTIES AGAINST GENERAL

2 PARTNERS AND CERTAIN MANAGING AGENTS

3 OF MULTIFAMILY HOUSING PROJECTS.

4 (a) CIVIL MONEY PENALTIES AGAINST MULTIFAM5 ILY MORTGAGORS.—Section 537 of the National Housing

6 Act (12 U.S.C. 1735f–15) is amended—

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

8 ‘‘mortgagor’’ the second place it appears the follow9 ing: ‘‘or general partner of a partnership mortga10 gor’’;

11 (2) in subsection (c)—

12 (A) by striking the heading and inserting

13 the following:

14 ‘‘(c) OTHER VIOLATIONS.—’’; and

15 (B) in paragraph (1)—

16 (i) by striking ‘‘The Secretary may’’

17 and all that follows through the colon and

18 inserting the following:

19 ‘‘(A) LIABLE PARTIES.—The Secretary

20 may also impose a civil money penalty under

21 this section on—

22 ‘‘(i) any mortgagor of a property that

23 includes 5 or more living units and that

24 has a mortgage insured, coinsured, or held

25 pursuant to this Act;
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•S 2281 PCS

1 ‘‘(ii) the general partner of a partner2 ship mortgagor of such property; or

3 ‘‘(iii) any agent employed to manage

4 the property that has an identity of inter5 est with the mortgagor or the general part6 ner of a partnership mortgagor of such

7 property.

8 ‘‘(B) VIOLATIONS.—A penalty may be im9 posed under this paragraph for knowingly and

10 materially taking any of the following actions:’’;

11 (ii) in subparagraph (B), as redesig12 nated, by redesignating subparagraphs (A)

13 through (L) as clauses (i) through (xii), re14 spectively;

15 (iii) by adding after clause (xii), as re16 designated, the following new clauses:

17 ‘‘(xiii) Failure to maintain the prem18 ises, accommodations, and the grounds and

19 equipment appurtenant thereto in good re20 pair and condition in accordance with reg21 ulations and requirements of the Secretary,

22 except that nothing in this clause shall

23 have the effect of altering the provisions of

24 an existing regulatory agreement or feder25 ally insured mortgage on the property.
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1 ‘‘(xiv) Failure, by a mortgagor or gen2 eral partner of a partnership mortgagor, to

3 provide management for the project that is

4 acceptable to the Secretary pursuant to

5 regulations and requirements of the Sec6 retary.’’; and

7 (iv) in the last sentence, by deleting

8 ‘‘of such agreement’’ and inserting ‘‘of this

9 subsection’’;

10 (3) in subsection (d)—

11 (A) in paragraph (1)(B), by inserting after

12 ‘‘mortgagor’’ the following: ‘‘, general partner

13 of a partnership mortgagor, or identity of inter14 est agent employed to manage the property,’’;

15 and

16 (B) by adding at the end the following new

17 paragraph:

18 ‘‘(5) PAYMENT OF PENALTY.—No payment of a

19 civil money penalty levied under this section shall be

20 payable out of project income.’’;

21 (4) in subsection (e)(1), by deleting ‘‘a mortga22 gor’’ and inserting ‘‘an entity or person’’;

23 (5) in subsection (f), by inserting after ‘‘mort24 gagor’’ each place such term appears the following:

25 ‘‘, general partner of a partnership mortgagor, or
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1 identity of interest agent employed to manage the

2 property,’’;

3 (6) by striking the heading of subsection (f)

4 and inserting the following: ‘‘CIVIL MONEY PEN5 ALTIES AGAINST MULTIFAMILY MORTGAGORS, GEN6 ERAL PARTNERS OF PARTNERSHIP MORTGAGORS,

7 AND CERTAIN MANAGING AGENTS’’;

8 (7) in subsection (j), by striking ‘‘all civil

9 money’’ and all that follows through the period at

10 the end and inserting the following: ‘‘the Secretary

11 shall apply all civil money penalties collected under

12 this section, or any portion of such penalties, to the

13 fund established under section 201(j) of the Housing

14 and Community Development Amendments of

15 1978.’’; and

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

18 ‘‘(k) IDENTITY OF INTEREST MANAGING AGENT.—

19 For purposes of this section, the term ‘identity of interest

20 managing agent’ means an entity—

21 ‘‘(1) that has management responsibility for a

22 project;

23 ‘‘(2) in which the ownership entity, including its

24 general partner or partners (if applicable), has an

25 ownership interest; and
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1 ‘‘(3) over which such ownership entity exerts ef2 fective control.’’.

3 (b) IMPLEMENTATION.—

4 (1) PUBLIC COMMENT.—The Secretary shall

5 implement the amendments made by this section by

6 regulation issued after notice and opportunity for

7 public comment. The notice shall seek comments pri8 marily as to the definitions of the terms ‘‘ownership

9 interest in’’ and ‘‘effective control’’, as such terms

10 are used in the definition of identity of the term ‘‘in11 terest managing agent’’.

12 (2) TIMING.—A proposed rule implementing the

13 amendments made by this section shall be published

14 not later than January 20, 1995.

15 (c) APPLICABILITY OF AMENDMENTS.—The amend16 ments made by subsection (a) shall apply only with respect

17 to—

18 (1) violations that occur on or after the effec19 tive date of the final regulations implementing the

20 amendments made by this section; and

21 (2) in the case of a continuing violation (as de22 termined by the Secretary), any portion of a viola23 tion that occurs on or after such date.
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1 SEC. 656. EXTENSION OF EQUITY SKIMMING TO OTHER

2 MULTIFAMILY HOUSING PROGRAMS.

3 Section 254 of the National Housing Act (12 U.S.C.

4 1715z–19) is amended—

5 (1) by inserting ‘‘202 (as such program existed

6 before the date of enactment of the Cranston-Gon7 zalez National Affordable Housing Act),’’ before

8 ‘‘203,’’;

9 (2) by inserting ‘‘221(d)(2),’’ after ‘‘220,’’;

10 (3) by inserting ‘‘222,’’ after ‘‘221(d)(4),’’;

11 (4) by inserting ‘‘235,’’ after ‘‘234,’’;

12 (5) by inserting ‘‘255,’’ after ‘‘244,’’; and

13 (6) by inserting ‘‘or 542(b) or 542(c) of the

14 Housing and Community Development Act of

15 1992,’’ after ‘‘title XI,’’.

16 SEC. 657. COMPREHENSIVE NEEDS ASSESSMENTS.

17 (a) IN GENERAL.—Section 401(1)(A) of the Housing

18 and Community Development Act of 1992 (12 U.S.C.

19 1715z–1a note) is amended—

20 (1) in clause (iii), by striking ‘‘or’’ at the end;

21 (2) in clause (iv), by striking ‘‘and’’ at the end

22 and inserting ‘‘or’’; and

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

24 clause:

25 ‘‘(iv) is insured by the Secretary and is receiv26 ing housing assistance payments under section 8 of
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1 the United States Housing Act of 1937 (excluding

2 payments made for tenant-based assistance under

3 section 8 or for projects assisted under section 515

4 of the Housing Act of 1949); and’’.

5 (b) TECHNICAL AMENDMENT.—Section 202(a) of the

6 Housing and Community Development Amendments of

7 1978 (12 U.S.C. 1715z–1b(a)) is amended in the second

8 sentence by striking ‘‘section 201(c)’’ and inserting ‘‘sub9 paragraphs (A), (B), and (C) of section 201(c)(1)’’.

10 SEC. 658. AUTHORIZATION OF APPROPRIATIONS FOR GEN11 ERAL INSURANCE FUND AND SPECIAL RISK

12 INSURANCE FUND.

13 Section 542 of the National Housing Act (12 U.S.C.

14 1735f–20) is amended by striking ‘‘1994 and 1995’’ and

15 inserting ‘‘1995 and 1996’’.

16 SEC. 659. FHA MORTGAGE INSURANCE LIMITS FOR MULTI17 FAMILY HOUSING IN HIGH COST AREAS.

18 Sections 207(c)(3), 213(b)(2), 221(d)(3)(ii),

19 221(d)(4)(ii), 231(c)(2), and 234(e)(3) of the National

20 Housing Act (12 U.S.C. 1713(c)(3), 1715e(b)(2),

21 1715l(d)(3)(ii), 1715l(d)(4)(ii), 1715v(c)(2); and

22 1715y(e)(3)) are amended by striking ‘‘140 percent’’ in

23 each place it appears and inserting in lieu thereof ‘‘147

24 percent’’.
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1 SEC. 660. ELIMINATION OF NEW ACTIVITY IN LOW-USE

2 MULTIFAMILY DEVELOPMENT PROGRAMS.

3 (a) SECTION 220.—Section 220 of the National

4 Housing Act (12 U.S.C. 1715k) is amended by adding at

5 the end the following new subsection:

6 ‘‘(i) TERMINATION OF AUTHORITY.—Beginning 30

7 days after the effective date of the Housing Choice and

8 Community Investment Act of 1994, the Secretary may

9 not accept new applications for mortgage insurance under

10 this section.’’.

11 (b) TITLE XI.—Section 1101 of the National Hous12 ing Act (12 U.S.C. 1749aaa) is amended by adding at the

13 end the following new subsection:

14 ‘‘(g) TERMINATION OF AUTHORITY.—Beginning 30

15 days after the effective date of the Housing Choice and

16 Community Investment Act of 1994, the Secretary may

17 not accept new applications for mortgage insurance under

18 this title.’’.

19 SEC. 661. REVISED CONGREGATE SERVICES.

20 Section 802(d)(7) of the Cranston-Gonzalez National

21 Affordable Housing Act (42 U.S.C. 8011(d)(7)) is amend22 ed in subparagraph (A) by striking ‘‘The fees for meals

23 shall be in the following amounts:’’ and all that follows

24 through the end of the paragraph.
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1 SEC. 662. STUDY ON FHA INSURED MULTIFAMILY HOUSING

2 MORTGAGES.

3 (a) IN GENERAL.—The Secretary and the Comptrol4 ler General of the United States shall jointly conduct a

5 study of the risks and benefits associated with the insur6 ance of mortgages on multifamily housing by the Federal

7 Housing Administration (hereafter in this section referred

8 to as the ‘‘FHA’’) under the National Housing Act.

9 (b) SCOPE OF STUDY.—The study conducted under

10 this section shall analyze—

11 (1) the relationship between the default rates

12 for the various FHA multifamily mortgage insurance

13 programs and the credit subsidy amounts appro14 priated for these programs;

15 (2) the availability of private mortgage credit

16 for the development and acquisition of multifamily

17 housing;

18 (3) ways to enhance the availability of private

19 mortgage credit, with and without FHA mortgage

20 insurance, for the development and acquisition of

21 multifamily housing;

22 (4) the effect of downpayment requirements

23 and nonrecourse lending on the claims rate under

24 the mortgage insurance program established by sec25 tion 221(d)(4) of the National Housing Act and

26 ways to reduce the claims rate under such program;
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1 (5) the relative financial risks shared between

2 the General Insurance Fund and the Special Risk

3 Insurance Fund under the National Housing Act

4 and developers of FHA insured multifamily housing

5 (including an analysis of the profits being realized

6 by developers under the insurance program estab7 lished in section 221(d)(4) of the National Housing

8 Act compared to the financial risk to such devel9 opers);

10 (6) the geographic diversity of FHA insured

11 multifamily housing, including the difference in the

12 number of units, project and per unit costs, and de13 fault rates (and any reasons for anomalies in the de14 fault rates in any geographic region);

15 (7) the need for low-income affordable multi16 family housing and the need for market rate multi17 family housing by geographic area, and specific rea18 sons why this need is or is not addressed in each

19 area; and

20 (8) the importance of FHA multifamily mort21 gage insurance in providing decent, safe, and sani22 tary rental housing for low-income individuals and

23 families.

24 (c) REPORT.—Not later than 12 months after the

25 date of enactment of this Act, the Secretary and the
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1 Comptroller General of the United States shall submit a

2 report to the Committee on Banking, Housing, and Urban

3 Affairs of the Senate and the Committee on Banking, Fi4 nance and Urban Affairs of the House of Representatives

5 regarding the findings of the study conducted pursuant

6 to this section. Such report shall include any recommenda7 tions for increasing the availability of affordable multifam8 ily housing and reducing the financial risk to the General

9 Insurance Fund and the Special Risk Insurance Fund

10 under the National Housing Act.

11 TITLE VII—COMMUNITY AND

12 ECONOMIC DEVELOPMENT

13 SEC. 701. COMMUNITY AND ECONOMIC DEVELOPMENT.

14 Title I of the Housing and Community Development

15 Act of 1974 (42 U.S.C. 5301 et seq.) is amended by add16 ing at the end the following new section:

17 ‘‘SEC. 123. LEVERAGED INVESTMENTS FOR TOMORROW

18 (LIFT) PROGRAM.

19 ‘‘(a) IN GENERAL.—

20 ‘‘(1) GRANTS AUTHORIZED.—The Secretary is

21 authorized to make project-specific assistance avail22 able in accordance with the provisions of this section

23 for the purpose of stimulating economic activities

24 that primarily benefit the low- and moderate-income

25 residents of an investment area.
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1 ‘‘(2) PROJECT GOALS.—The Secretary shall

2 provide assistance to projects in investment areas

3 that—

4 ‘‘(A) generate new investment;

5 ‘‘(B) directly create or retain jobs for resi6 dents;

7 ‘‘(C) increase the amount of disposable in8 come expended inside the investment area;

9 ‘‘(D) promote physical and economic revi10 talization;

11 ‘‘(E) increase the availability of goods and

12 services to residents; or

13 ‘‘(F) enhance the upward mobility of resi14 dents.

15 ‘‘(b) ELIGIBLE APPLICANTS.—In carrying out this

16 section, the Secretary shall make assistance described in

17 subsection (f) available to States, units of general local

18 government, Indian tribes, and urban or rural community19 based development organizations, and community develop20 ment financial institutions.

21 ‘‘(c) ELIGIBLE ACTIVITIES.—

22 ‘‘(1) IN GENERAL.—The Secretary shall provide

23 assistance under this section only to fund activities

24 in investment areas including the rehabilitation, con25 struction, or financing of—
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1 ‘‘(A) retail or service facilities;

2 ‘‘(B) the nonhousing portion of mixed use

3 projects;

4 ‘‘(C) public facilities (except for buildings

5 for the general use of government);

6 ‘‘(D) the creation of new or retention of

7 existing enterprises;

8 ‘‘(E) incubator facilities to house small en9 terprises; and

10 ‘‘(F) light industrial facilities and equip11 ment.

12 ‘‘(2) FORMS OF ASSISTANCE.—Assistance made

13 available under this subsection may be in the form

14 of grants, loans, credit enhancement loan loss re15 serves, or other appropriate financing mechanism.

16 ‘‘(d) INELIGIBLE ACTIVITIES.—The Secretary shall

17 not provide assistance under this section to fund—

18 ‘‘(1) assistance to housing or housing related

19 activities, except as provided in subsection (c)(1)(B);

20 ‘‘(2) public services as described in section

21 105(a)(8);

22 ‘‘(3) assistance to develop or rehabilitate infra23 structure pursuant to section 105;

24 ‘‘(4) assistance to finance job training activities;

25 or
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1 ‘‘(5) assistance to finance working capital ex2 penses.

3 ‘‘(e) ELIGIBLE INVESTMENT AREAS.—Assistance

4 made available under this section shall be used—

5 ‘‘(1) in areas that—

6 ‘‘(A) have a continuous boundary;

7 ‘‘(B) are not less than 50 percent residen8 tial;

9 ‘‘(C) have a population of which not less

10 than 20 percent is at or below the poverty level;

11 and

12 ‘‘(D) are located within a metropolitan or

13 nonmetropolitan area that is economically dis14 tressed and physically deteriorated, according to

15 criteria determined by the Secretary; or

16 ‘‘(2) in areas that have been designated as an

17 ‘Enterprise Community’ or ‘Empowerment Zone’

18 pursuant to section 1391 of the Internal Revenue

19 Code of 1986.

20 ‘‘(f) SELECTION PROCESS.—The Secretary shall se21 lect grantees under this section on a competitive basis in

22 accordance with the following:

23 ‘‘(1) IN GENERAL.—Each application for assist24 ance shall—
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1 ‘‘(A) include the amount of assistance re2 quested and the proposed uses of funds;

3 ‘‘(B) describe the demographic, physical,

4 and economic characteristics of the investment

5 area;

6 ‘‘(C) describe a specific, eligible activity;

7 ‘‘(D) include an integrated strategy for the

8 economic and physical revitalization of the in9 vestment area;

10 ‘‘(E) demonstrate that the proposed

11 project is an important component of an ongo12 ing effort to implement the integrated strategy;

13 ‘‘(F) certify that the proposed project is

14 consistent with the applicable community devel15 opment and housing plans of the State or unit

16 of general local government; and

17 ‘‘(G) certify that the applicant will comply

18 with requirements of the Fair Housing Act,

19 title VI of the Civil Rights Act of 1964, section

20 504 of the Rehabilitation Act of 1973, and the

21 Age Discrimination Act of 1975.

22 ‘‘(2) AWARDS.—The Secretary may select

23 grantees for assistance on a quarterly basis.
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1 ‘‘(g) SELECTION CRITERIA.—The Secretary shall se2 lect grantees from among eligible applicants based on the

3 following criteria:

4 ‘‘(1) SOCIAL AND ECONOMIC NEED.—The ex5 tent of economic and social need in the investment

6 area.

7 ‘‘(2) PHYSICAL NEED.—The extent of physical

8 need in the investment area, including the extent of

9 deteriorated or vacant and blighted commercial and

10 residential buildings and the extent of abandoned

11 commercial and residential property.

12 ‘‘(3) POSITIVE ECONOMIC IMPACT ON INVEST13 MENT AREA.—The extent to which an applicant’s

14 project shall produce a positive economic impact on

15 the investment area, as evidenced by—

16 ‘‘(A) creation or retention of jobs;

17 ‘‘(B) creation, expansion, or retention of

18 private, for-profit entities, particularly those en19 tities that are wholly- or majority-owned by

20 residents;

21 ‘‘(C) removal of blighted and vacant or

22 abandoned land or buildings and the replace23 ment of such with a productive eligible activity;

24 ‘‘(D) increase in the availability of goods

25 and services to residents; or
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1 ‘‘(E) the generation of new local tax reve2 nue, including any temporary tax abatement

3 provided to assist in the development of the

4 project.

5 ‘‘(4) LEVERAGE.—The extent of leverage of

6 non-Federal public and private resources.

7 ‘‘(5) OTHER INVESTMENT.—The extent of other

8 public or private investment in the investment area.

9 ‘‘(6) INTEGRATED STRATEGY.—The extent to

10 which the project is a part of an ongoing effort to

11 implement an integrated strategy to facilitate invest12 ment and development in the investment area.

13 ‘‘(7) COMMUNITY PARTICIPATION.—The extent

14 to which the planning process for the project in15 cludes the active participation of investment area

16 residents.

17 ‘‘(h) FINANCIAL VIABILITY CRITERIA.—The Sec18 retary shall not provide assistance for any project that

19 does not meet financial viability criteria established by the

20 Secretary.

21 ‘‘(i) LEVERAGE REQUIREMENTS.—Notwithstanding

22 section 105(a)(9), assistance provided under this section

23 shall be leveraged with financing from sources other than

24 the Federal Government on the basis of $2 of non-Federal

25 funds for each $1 of assistance provided under this sec-
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1 tion, of which not less than $1 of the non-Federal funds

2 leveraged shall be from sources other than a State or local

3 government.

4 ‘‘(j) LIMITATIONS.—The Secretary shall—

5 ‘‘(1) not make assistance available in amounts

6 less than $250,000 or greater than $5,000,000;

7 ‘‘(2) establish a limit on the number of applica8 tions that may be submitted and the aggregate

9 amount of funds that can be awarded within a unit

10 of general local government during a specified period

11 of time; and

12 ‘‘(3) establish criteria to evaluate the financial

13 viability, economic impact, and cost reasonableness

14 of a proposed activity provided that assistance not

15 be limited to activities for which other forms of as16 sistance are not available or could not be accom17 plished but for that assistance.

18 ‘‘(k) DISSEMINATION OF INFORMATION.—The Sec19 retary shall require each grantee to produce a report in

20 the form of a case study. The Secretary shall select the

21 most instructive case studies, including successful and un22 successful projects, assemble them into a package, and

23 make the package available to all grantees and possible

24 grantees under this section.

25 ‘‘(l) RECORDS AND REPORTS.—
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1 ‘‘(1) RECORDS.—

2 ‘‘(A) IN GENERAL.—Each recipient of as3 sistance under this section shall keep such

4 records as may be reasonably necessary to dis5 close the amounts and disposition of assistance

6 received under this section to ensure compliance

7 with the purposes of this section.

8 ‘‘(B) AUDITS AND EXAMINATIONS.—The

9 Secretary and Comptroller General of the

10 United States shall have access for the purpose

11 of audit and examination to any books, docu12 ments, papers, and records of the recipient that

13 are necessary to determine compliance with the

14 purposes of this section.

15 ‘‘(2) REPORTS.—Each recipient of assistance

16 under this section shall submit to the Secretary an

17 annual report to the Secretary describing—

18 ‘‘(A) the uses of funds made available

19 under this subsection; and

20 ‘‘(B) the impact of such funds in achieving

21 the purposes of this section.

22 ‘‘(m) DEFINITIONS.—For purposes of this section,

23 the following definitions shall apply:

24 ‘‘(1) SECRETARY.—The term ‘Secretary’ means

25 the Secretary of Housing and Urban Development.
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1 ‘‘(2) STATE.—The term ‘State’ has the same

2 meaning as in section 102.

3 ‘‘(3) UNIT OF GENERAL LOCAL GOVERN4 MENT.—The term ‘unit of general local government’

5 has the same meaning as in section 102.

6 ‘‘(4) INDIAN TRIBE.—The term ‘Indian tribe’

7 has the same meaning as in section 102.

8 ‘‘(5) COMMUNITY-BASED DEVELOPMENT ORGA9 NIZATION.—The term ‘community-based develop10 ment organization’ means a private, locally or re11 gionally initiated, nonprofit entity, governed by a

12 board consisting of residents, business people, and

13 civic leaders from the locality or region, which has

14 a record of implementing community and economic

15 development projects or whose articles of incorpora16 tion or bylaws indicate an organizational focus on

17 community and economic development.

18 ‘‘(6) COMMUNITY DEVELOPMENT FINANCIAL IN19 STITUTION.—The term ‘community development fi20 nancial institution’ has the same meaning as in sec21 tion 103(3) of the Community Development Finan22 cial Institutions Act of 1994.

23 ‘‘(n) AUTHORIZATION.—There are authorized to be

24 appropriated for purposes of this section, $300,000,000

25 for fiscal year 1995, and $300,000,000 for fiscal year
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1 1996. Of any amounts appropriated under this section, the

2 Secretary shall provide assistance of not more than 40

3 percent of the total amounts appropriated under this title

4 to Enterprise Communities and Empowerment Zones. Any

5 amounts appropriated shall remain available until ex6 pended.’’.

7 SEC. 702. COLONIAS ASSISTANCE GRANTS.

8 (a) PROGRAM AUTHORIZATION.—The Secretary may

9 make grants in accordance with the provisions of this sec10 tion for use in addressing the community development and

11 housing needs of colonias.

12 (b) FUNDING SET-ASIDE.—

13 (1) IN GENERAL.—Of amounts allocated under

14 subsection (h) the Secretary shall set aside a target

15 amount for grants under this section for use in

16 colonias in each State. The Secretary shall deter17 mine the amount to be set aside, based on such ob18 jective factors of need as the Secretary deems appro19 priate, which may include rates of poverty in, and

20 the population of, colonias. The Secretary shall re21 allocate any amounts set aside under this paragraph

22 for which the Secretary determines there will not be

23 a sufficient number of eligible applications in a fiscal

24 year.
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1 (2) USE OF FUNDS.—Any amount not set aside

2 or reallocated under paragraph (1) may be used in

3 colonias in any State.

4 (c) ELIGIBLE ENTITIES.—The Secretary may make

5 grants in accordance with subsection (d) to—

6 (1) units of general local government;

7 (2) States;

8 (3) nonprofit organizations; and

9 (4) entities or instrumentalities established

10 under the authority of any of the entities described

11 in paragraph (1), (2), or (3).

12 (d) SELECTION OF GRANTEES.—

13 (1) IN GENERAL.—The Secretary shall select

14 grantees under this section from among the entities

15 described in subsection (c) on the basis of a competi16 tion, following publication of a notice of funding

17 availability in the Federal Register.

18 (2) SELECTION CRITERIA.—In selecting

19 projects for grants under this section, the Secretary

20 shall consider—

21 (A) the extent of need in the colonia;

22 (B) the likely effectiveness of the proposed

23 approach in addressing identified needs;
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•S 2281 PCS

1 (C) the extent to which funding for the

2 project is committed from sources other than

3 under this section;

4 (D) the extent to which the application

5 represents an innovative approach to addressing

6 the needs of colonias; and

7 (E) such other factors as the Secretary

8 deems appropriate to carry out the objectives of

9 this section.

10 (e) ELIGIBLE ACTIVITIES.—A grant made under this

11 section may be used to carry out one or more of the follow12 ing activities:

13 (1) CERTAIN OTHER ELIGIBLE ACTIVITIES.—

14 Any activity eligible under section 105 of the Hous15 ing and Community Development Act of 1974 or

16 section 212(a) of the HOME Investment Partner17 ships Act.

18 (2) REFINANCING.—Refinancing the existing

19 debt of homeowners to convert existing ownership

20 regimes into mortgages.

21 (3) NEW CONSTRUCTION.—The construction of

22 new housing, including self-help, energy-efficient,

23 and innovative housing design initiatives.
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1 (4) REPLATTING AND REDEVELOPMENT.—The

2 replatting and redevelopment of existing subdivi3 sions.

4 (5) INFRASTRUCTURE.—The planning for, and

5 construction of, infrastructure necessary for the de6 velopment of housing, economic development, and

7 community facilities.

8 (6) OTHER ACTIVITIES.—Such other activities

9 as the Secretary deems appropriate to further the

10 purposes of this section.

11 (f) RECORDS, REPORTS, AND AUDITS.—

12 (1) KEEPING OF RECORDS.—Each grantee

13 under this section shall keep such records as may be

14 reasonably necessary to disclose the amounts and

15 the disposition of grant amounts received under this

16 section and to ensure compliance with the require17 ments of this section.

18 (2) GRANTEE REPORTS.—Each grantee under

19 this section shall submit to the Secretary a report,

20 or series of reports, in a form and at a time speci21 fied by the Secretary. Each report shall—

22 (A) describe the use of funds made avail23 able under this section; and
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•S 2281 PCS

1 (B) analyze the effect of assisted activities

2 in addressing the community development and

3 housing needs of the residents of colonias.

4 (3) ACCESS TO DOCUMENTS BY THE SEC5 RETARY.—For the purpose of audit and examina6 tion, the Secretary shall have access to any books,

7 documents, papers, and records of each grantee

8 under this section that are pertinent to assistance

9 received under this section.

10 (4) ACCESS TO DOCUMENTS BY THE COMP11 TROLLER GENERAL.—The Comptroller General of

12 the United States, or any of the duly authorized rep13 resentatives of the Comptroller General, shall have

14 access to the purpose of audit and examination to

15 any books, documents, papers, and records of each

16 grantee under this section that are pertinent to as17 sistance received under, and the requirements of,

18 this section.

19 (g) DEFINITIONS.—For purposes of this section, the

20 following definitions shall apply:

21 (1) COLONIA.—The term ‘‘colonia’’ has the

22 same meaning as in section 916(e) of the Cranston23 Gonzalez National Affordable Housing Act.

24 (2) METROPOLITAN AREA.—The term ‘‘metro25 politan area’’ has the same meaning as in section
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•S 2281 PCS

1 102(a)(3) of the Housing and Community Develop2 ment Act of 1974.

3 (3) NONPROFIT ORGANIZATION.—The term

4 ‘‘nonprofit organization’’ means—

5 (A) an organization—

6 (i) that is described in section 501(c)

7 of the Internal Revenue Code of 1986; and

8 (ii) that is exempt from taxation

9 under section 501(a) of such Code; or

10 (B) an organization—

11 (i) no part of the net earnings of

12 which inures to the benefit of any member,

13 founder, contributor, or individual;

14 (ii) that, in the case of a private non15 profit organization, has a voluntary board;

16 (iii) that has an accounting system, or

17 has designated a fiscal agent in accordance

18 with requirements established by the Sec19 retary; and

20 (iv) that practices nondiscrimination

21 in the provision of assistance.

22 (4) STATE.—The term ‘‘State’’’ means the

23 States of California, Arizona, New Mexico, and

24 Texas.

25 (5) UNIT OF GENERAL LOCAL GOVERNMENT.—
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1 (A) IN GENERAL.—The term ‘‘unit of gen2 eral local government’’ means—

3 (i) a city, town, township, county, par4 ish, village, or other general purpose politi5 cal subdivision of a State; and

6 (ii) any agency or instrumentality

7 thereof that is established pursuant to leg8 islation and designated by the chief execu9 tive to act on behalf of the jurisdiction

10 with regard to provisions of this section.

11 (B) CONSORTIA INCLUDED.—The term in12 cludes a consortium of geographically contig13 uous units of general local government, if the

14 Secretary determines that the consortium—

15 (i) has sufficient authority and admin16 istrative capability to carry out the pur17 poses of this section on behalf of its mem18 ber jurisdictions; and

19 (ii) meets such other requirements as

20 the Secretary may prescribe.

21 (6) UNITED STATES-MEXICO BORDER RE22 GION.—The term ‘‘United States-Mexico Border Re23 gion’’ has the same meaning as in section 916(e)(4)

24 of the Cranston-Gonzalez National Affordable Hous25 ing Act.
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•S 2281 PCS

1 (h) FUNDING AUTHORIZATION.—There are author2 ized to be appropriated to carry out this section

3 $50,000,000 for each of fiscal years 1995 and 1996.

4 Amounts appropriated shall remain available until ex5 pended.

6 SEC. 703. EXTENSION OF COLONIA PROGRAM UNDER SEC7 TION 916 OF THE CRANSTON-GONZALEZ NA8 TIONAL AFFORDABLE HOUSING ACT.

9 Section 916(f) of the Cranston-Gonzalez National Af10 fordable Housing Act (42 U.S.C. 5306 note) is amended

11 by striking ‘‘1991’’ and all that follows before the period

12 and inserting ‘‘1995 and 1996’’.

13 SEC. 704. COMMUNITY DEVELOPMENT BLOCK GRANTS.

14 (a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—

15 Section 103 of the Housing and Community Development

16 Act of 1974 (42 U.S.C. 5303) is amended by striking the

17 second sentence and inserting the following: ‘‘For pur18 poses of assistance under section 106, there are authorized

19 to be appropriated $4,400,000,000 for fiscal year 1995

20 and $4,532,000,000 for fiscal year 1996.’’.

21 (b) LIMITATION ON LOAN GUARANTEES.—Section

22 108(a) of the Housing and Community Development Act

23 of 1974 (42 U.S.C. 5308(a)) is amended by striking the

24 fifth sentence and inserting the following: ‘‘Notwithstand25 ing any other provision of law and subject only to the ab-
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•S 2281 PCS

1 sence of qualified applicants or proposed activities and to

2 the authority provided in this section, to the extent ap3 proved in appropriation Acts, the Secretary shall enter

4 into commitments to guarantee notes and obligations

5 under this section with an aggregate principal amount of

6 $2,054,000,000 for fiscal year 1995 and $2,054,000,000

7 for fiscal year 1996.’’.

8 (c) SPECIAL PURPOSE GRANTS.—Section 107(a) of

9 the Housing and Community Development Act of 1974

10 (42 U.S.C. 5307(a)) is amended by striking

11 ‘‘$60,000,000’’ and all that follows through the period at

12 the end and inserting the following: ‘‘$50,000,000 shall

13 be set aside each year for the following purposes:

14 ‘‘(A) $7,000,000 shall be available in each

15 such year for grants under subsection (b)(1);

16 ‘‘(B) $6,500,000 shall be available in each

17 such year for grants under subsection (b)(3);

18 ‘‘(C) $15,000,000 shall be available in

19 each such year for activities under subsection

20 (b)(4);

21 ‘‘(D) $5,000,000 shall be available in each

22 such year under subsection (b)(5);

23 ‘‘(E) $7,500,000 shall be available in each

24 such year to carry out the Community Outreach

25 Partnership Act of 1992 as authorized pursu-
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•S 2281 PCS

1 ant to section 851 of the Housing and Commu2 nity Development Act of 1992;

3 ‘‘(F) $3,000,000 shall be available in each

4 such year for grants under subsection (c);

5 ‘‘(G) such sums as may be necessary shall

6 be available in each such year for grants under

7 subsection (b)(2); and

8 ‘‘(H) $5,000,000 shall be made available in

9 each such year for grants under the John Heinz

10 Neighborhood Development Program under sec11 tion 123 of the Housing and Urban Rural Re12 covery Act of 1983.’’.

13 SEC. 705. ECONOMIC DEVELOPMENT INITIATIVE.

14 Section 108(q)(1) of the Housing and Community

15 Development Act of 1974 (42 U.S.C. 5308(q)(1)) is

16 amended by adding at the end the following new sentence:

17 ‘‘Of the amounts appropriated under section 123(n) not

18 more than 10 percent shall be used to carry out this sub19 section.’’.

20 SEC. 706. CDBG REALLOCATIONS.

21 Section 106(c) of the Housing and Community Devel22 opment Act of 1974 (42 U.S.C. 5306(c)) is amended by

23 striking paragraph (4).
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1 SEC. 707. COMMUNITY VIABILITY FUND.

2 Section 4 of the HUD Demonstration Act of 1993

3 (42 U.S.C. 9816 note) is amended—

4 (1) in subsection (a), by striking all after ‘‘Ini5 tiative’’ and inserting the following: ‘‘and through

6 intermediary training centers and community and

7 economic development organizing networks to—

8 ‘‘(1) develop the organizational capacity and the

9 ability of urban and rural community development

10 corporations, community-based organizations, and

11 community housing development organizations to

12 undertake community development, economic devel13 opment, and affordable housing projects and pro14 grams; and

15 ‘‘(2) develop the organizational capacity and

16 technical ability of urban and rural community de17 velopment corporations, community-based organiza18 tions, and community housing development organiza19 tions to establish sustainable and indigenous com20 munity and economic development organizations for

21 the benefit of low-income individuals.’’;

22 (2) by striking subsection (b) and inserting the

23 following:

24 ‘‘(b) FORM OF ASSISTANCE.—Assistance under this

25 subsection may be used for—
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1 ‘‘(1) training, technical assistance, capacity

2 building, and support for existing and new commu3 nity development corporations, community-based or4 ganizations, and community housing development or5 ganizations;

6 ‘‘(2) loans, grants, operating assistance, and

7 predevelopment assistance to community develop8 ment corporations, community-based organizations,

9 and community housing development organizations

10 to develop or improve the organizational capacity

11 and technical ability of such organizations to under12 take sustainable community-based development for

13 the benefit of low-income people; and

14 ‘‘(3) such other activities as may be determined

15 by the Secretary in consultation with recipients of

16 assistance under this section.’’;

17 (3) by striking subsection (c) and inserting the

18 following:

19 ‘‘(c) MATCHING REQUIREMENT.—Assistance pro20 vided under this section shall be matched with funding

21 from private sources—

22 ‘‘(1) by intermediary training centers and com23 munity and economic development organizing net24 works, in an amount that is not less than the
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•S 2281 PCS

1 amount of assistance provided under this section;

2 and

3 ‘‘(2) by the National Community Development

4 Initiative, in an amount that is not less than 3 times

5 the amount of assistance provided under this sec6 tion.’’; and

7 (4) by striking subsection (e) and inserting the

8 following:

9 ‘‘(e) DISSEMINATION OF INFORMATION.—The Sec10 retary shall require recipients of assistance under this sec11 tion to share information gathered in administering such

12 assistance with other grantees and subgrantees under this

13 section.

14 ‘‘(f) AUTHORIZATION.—There are authorized to be

15 appropriated $40,000,000 for fiscal year 1995, and

16 $40,000,000 for fiscal year 1996 to carry out this sec17 tion.’’.

18 SEC. 708. COMMUNITY INVESTMENT CORPORATION DEM19 ONSTRATION REAUTHORIZATION.

20 Section 853(b) of the Housing and Community De21 velopment Act of 1992 (42 U.S.C. 5305 note) is amend22 ed—

23 (1) by striking paragraphs (8)(B) and (9)(B);

24 and
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1 (2) by striking paragraph (7)(D) and inserting

2 the following:

3 ‘‘(D) AUTHORIZATION.—There are author4 ized to be appropriated to carry out this para5 graph $42,000,000 for fiscal year 1995 and

6 $43,260,000 for fiscal year 1996 to provide

7 capital assistance to eligible organizations.

8 Amounts so appropriated shall remain available

9 until expended.’’.

10 SEC. 709. NATIONAL CITIES IN SCHOOLS PROGRAM.

11 Section 930(c) of the Housing and Community Devel12 opment Act of 1992 (106 Stat. 3887) is amended to read

13 as follows:

14 ‘‘(c) AUTHORIZATION.—There are authorized to be

15 appropriated to carry out this section $10,000,000 for fis16 cal year 1995 and $10,000,000 for fiscal year 1996.’’.

17 SEC. 710. COMMUNITY DEVELOPMENT GRANTS FOR MINOR18 ITY COMMUNITIES WITH SPECIAL NEEDS

19 DEMONSTRATION.

20 (a) AUTHORIZATION.—There are hereby authorized

21 for water infrastructure financing and other wastewater

22 activities for cities with special needs, not more than

23 $25,000,000 for wastewater treatment projects, including

24 the construction of facilities and related expenses in mi25 nority communities with special needs to—
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1 (1) improve the housing stock infrastructure in

2 the special needs communities; and

3 (2) abate health hazards caused by ground

4 water contamination for septage in arid areas with

5 high ground water levels.

6 (b) TREATMENT PROJECTS.—The wastewater treat7 ment projects authorized under this section shall include

8 innovative technologies such as vacuum systems and con9 structed wetlands.

10 (c) DEFINITIONS.—For purposes of this section—

11 (1) the term ‘‘cities with special needs’’ includes

12 minority communities with special needs;

13 (2) the term ‘‘minority’’ means an African14 American, a Hispanic-American, an Asian-American,

15 or a Native American; and

16 (3) the term ‘‘minority community with special

17 needs’’ means an unincorporated community—

18 (A) that, based on the latest census data,

19 has a minority population in excess of 50 per20 cent;

21 (B) that has been unable to issue bonds or

22 otherwise finance a wastewater treatment sys23 tem itself, because its attempt to change its po24 litical subdivision has been rejected by the State

25 legislature; and
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1 (C) for which the State legislature has ap2 propriated funds to help pay for the project.

3 (d) REPORT.—Any community receiving a grant

4 under this subsection shall report to the Secretary not

5 later than 1 year after the completion of a wastewater

6 treatment project on the value of the project or the quality

7 of the housing stock and the health of the residents of

8 the community occurring as a result of the project. The

9 Secretary shall make such recommendations to Congress

10 as appropriate with regard to the value of wastewater

11 treatment projects as a component of programs adminis12 tered by the Secretary.

13 SEC. 711. UDAG RECAPTURES.

14 (a) IN GENERAL.—Section 119(g) of the Housing

15 and Community Development Act of 1974 (42 U.S.C.

16 5318(g)) is amended by striking the second sentence and

17 inserting the following: ‘‘Except as provided in section

18 232(c) of the Multifamily Housing Property Disposition

19 Reform Act of 1994, during the 18-month period begin20 ning on the date on which the UDAG Retention Program

21 authorized by such section expires, the Secretary shall be

22 prohibited from recapturing, adjusting, withdrawing, or

23 reducing any UDAG funds from recipients of UDAG

24 grants. For the duration of the UDAG Retention Pro25 gram, the Secretary shall provide technical assistance to
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•S 2281 PCS

1 grant recipients to adjust, rework, relocate, refine, rede2 fine, or otherwise revise the original UDAG project de3 scription to produce a viable UDAG project in accordance

4 with the requirements of this section. The Secretary shall

5 not impose regulatory requirements that are not statu6 torily based, that restrict revision or use of UDAG fund7 ing.’’.

8 (b) EXTENSION OF TIME PERIOD.—Section 119(t) of

9 the Housing and Community Development Act of 1974

10 (42 U.S.C. 5318(t)) is amended by striking ‘‘90 days’’

11 each place it appears and inserting ‘‘21 months’’.

12 (c) WAIVER OF INTEGRAL RELATION REQUIRE13 MENT.—Notwithstanding any other provision of law, the

14 requirement that an amendment to an urban development

15 action grant agreement must be integrally related to the

16 approved project is hereby waived for project numbers

17 B87AA360540 and B87AA360521.

18 SEC. 712. STATE AGENCIES AS SURETIES.

19 Section 9304 of title 31, United States Code, is

20 amended by adding at the end the following new sub21 section:

22 ‘‘(c) STATE AGENCIES.—A State agency, including

23 any financing authority established by any State, which

24 meets the requirements of paragraphs (2) and (3) of sub-
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•S 2281 PCS

1 section (a) may be treated as a surety corporation for pur2 poses of this chapter.’’.

3 SEC. 713. CONFORMING AMENDMENTS RELATED TO

4 EMPOWERMENT ZONES AND ENTERPRISE

5 COMMUNITIES.

6 (a) CDBG ELIGIBLE ACTIVITIES.—Section

7 105(a)(13) of the Housing and Community Development

8 Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by strik9 ing ‘‘federally approved enterprise zones’’ and inserting

10 ‘‘empowerment zones and enterprise communities des11 ignated pursuant to section 1391 of the Internal Revenue

12 Code of 1986’’.

13 (b) CDBG EMPLOYMENT PRESUMPTION.—Section

14 105(c)(4)(A) of the Housing and Community Develop15 ment Act of 1974 (42 U.S.C. 5305(c)(4)(A)) is amend16 ed—

17 (1) by striking ‘‘Federal enterprise zone’’; and

18 (2) by inserting ‘‘for empowerment zones and

19 enterprise communities designated pursuant to sec20 tion 1391 of the Internal Revenue Code of 1986’’

21 after ‘‘criteria’’.

22 SEC. 714. STUDY OF USE OF CDBG AS A MATCH FOR OTHER

23 FEDERAL PROGRAMS.

24 Not later than January 31, 1995, the Secretary shall

25 submit a report to the Committee on Banking, Housing,
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1 and Urban Affairs of the Senate and the Committee on

2 Banking, Finance and Urban Affairs of the House of Rep3 resentatives describing the use of community development

4 block grant funds, provided pursuant to title I of the

5 Housing and Community Development Act of 1974, to

6 meet the matching requirements in other Federal pro7 grams. The report shall identify those Federal programs

8 for which community development block grant funds qual9 ify as a match and provide an analysis of the extent to

10 which such funds are used as a match.

11 TITLE VIII—NONJUDICIAL FORE12 CLOSURE OF DEFAULTED

13 SINGLE FAMILY MORTGAGES

14 SEC. 801. SHORT TITLE.

15 This title may be cited as the ‘‘Single Family Mort16 gage Foreclosure Act of 1994’’.

17 SEC. 802. FINDINGS AND PURPOSE.

18 (a) FINDINGS.—The Congress finds that—

19 (1) the disparate State laws under which mort20 gages are foreclosed on behalf of the Secretary cov21 ering 1- to 4-family residential properties—

22 (A) burden certain programs administered

23 by the Secretary;

24 (B) increase the costs of collecting obliga25 tions; and
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1 (C) generally are a detriment to the com2 munity in which the properties are located;

3 (2) the long periods required to complete the

4 foreclosure of such mortgages under certain State

5 laws—

6 (A) lead to deterioration in the condition of

7 the properties involved;

8 (B) necessitate substantial Federal holding

9 expenditures;

10 (C) increase the risk of vandalism, fire

11 loss, depreciation, damage, and waste with re12 spect to the properties; and

13 (D) adversely affect the neighborhoods in

14 which the properties are located;

15 (3) these conditions seriously impair the ability

16 of the Secretary to protect the Federal financial in17 terest in the affected properties and frustrate attain18 ment of the objectives of the underlying Federal pro19 gram authority;

20 (4) the availability of uniform and more expedi21 tious procedures, with no right of redemption in the

22 mortgagor or others, for the foreclosure of these

23 mortgages by the Secretary will tend to ameliorate

24 these conditions; and
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1 (5) providing the Secretary with a nonjudicial

2 foreclosure procedure will reduce unnecessary litiga3 tion by removing many foreclosures from the courts

4 if they contribute to overcrowded calendars.

5 (b) PURPOSE.—The purpose of this title is to create

6 a uniform Federal foreclosure remedy for single family

7 mortgages that—

8 (1) are held by the Secretary pursuant to title

9 I or title II of the National Housing Act; or

10 (2) secure loans obligated by the Secretary

11 under section 312 of the Housing Act of 1964.

12 SEC. 803. DEFINITIONS.

13 For purposes of this title, the following definitions

14 shall apply:

15 (1) BONA FIDE PURCHASER.—The term ‘‘bona

16 fide purchaser’’ means a purchaser for value in good

17 faith and without notice of any adverse claim, and

18 who acquires the security property free of any ad19 verse claim.

20 (2) COUNTY.—The term ‘‘county’’ has the same

21 meaning as in section 2 of title 1, United States

22 Code.

23 (3) MORTGAGE.—The term ‘‘mortgage’’ means

24 a deed of trust, mortgage, deed to secure debt, secu25 rity agreement, or any other form of instrument
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1 under which any property (real, personal or mixed),

2 or any interest in property (including leaseholds, life

3 estates, reversionary interests, and any other estates

4 under applicable State law), is conveyed in trust,

5 mortgaged, encumbered, pledged, or otherwise ren6 dered subject to a lien for the purpose of securing

7 the payment of money or the performance of an obli8 gation.

9 (4) MORTGAGE AGREEMENT.—The term ‘‘mort10 gage agreement’’ means the note or debt instrument

11 and the mortgage instrument, deed of trust instru12 ment, trust deed, or instrument or instruments cre13 ating the mortgage, including any instrument incor14 porated by reference therein and any instrument or

15 agreement amending or modifying any of the fore16 going.

17 (5) MORTGAGOR.—The term ‘‘mortgagor’’

18 means the obligor, grantor, or trustee named in the

19 mortgage agreement and, unless the context other20 wise indicates, includes the current owner of record

21 of the security property whether or not such owner

22 is personally liable on the mortgage debt.

23 (6) OWNER.—The term ‘‘owner’’ means any

24 person who has an ownership interest in property

25 and includes heirs, devises, executors, administra-
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1 tors, and other personal representatives, and trust2 ees of testamentary trusts if the owner of record is

3 deceased.

4 (7) PERSON.—The term ‘‘person’’ includes any

5 individual, group of individuals, association, partner6 ship, corporation, or organization.

7 (8) RECORD; RECORDED.—The terms ‘‘record’’

8 and ‘‘recorded’’ include ‘‘register’’ and ‘‘registered’’

9 in the instance of registered land.

10 (9) SECURITY PROPERTY.—The term ‘‘security

11 property’’ means the property (real, personal or

12 mixed) or an interest in property (including lease13 holds, life estates, reversionary interests, and any

14 other estates under applicable State law), together

15 with fixtures and other interests subject to the lien

16 of the mortgage under applicable State law.

17 (10) SINGLE FAMILY MORTGAGE.—The term

18 ‘‘single family mortgage’’ means a mortgage that

19 covers property on which there is located a 1- to 4-

20 family residence, and that—

21 (A) is held by the Secretary pursuant to

22 title I or title II of the National Housing Act;

23 or

24 (B) secures a loan obligated by the Sec25 retary under section 312 of the Housing Act of
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1 1964, as it existed before the repeal of that sec2 tion by section 289 of the Cranston-Gonzalez

3 National Affordable Housing Act (except that a

4 mortgage securing such a loan that covers prop5 erty containing nonresidential space and a 1- to

6 4-family dwelling shall not be subject to this

7 title).

8 (11) STATE.—The term ‘‘State’’ means—

9 (A) the several States;

10 (B) the District of Columbia;

11 (C) the Commonwealth of Puerto Rico;

12 (D) the United States Virgin Islands;

13 (E) Guam;

14 (F) American Samoa;

15 (G) the Northern Mariana Islands;

16 (H) the Trust Territory of the Pacific Is17 lands; and

18 (I) Indian tribes, as defined by the Sec19 retary.

20 SEC. 804. APPLICABILITY.

21 Single family mortgages encumbering real estate lo22 cated in any State may be foreclosed by the Secretary in

23 accordance with this title, or pursuant to other foreclosure

24 procedures available, at the option of the Secretary.
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1 SEC. 805. DESIGNATION OF FORECLOSURE COMMISSIONER.

2 (a) IN GENERAL.—The Secretary may designate a

3 person or persons to serve as a foreclosure commissioner

4 or commissioners for the purpose of foreclosing upon a

5 single family mortgage.

6 (b) POWER OF SALE.—A foreclosure commissioner

7 designated under this section shall have a nonjudicial

8 power of sale.

9 (c) QUALIFICATIONS.—The foreclosure commis10 sioner, if a natural person, shall be a resident of the State

11 in which the security property is located and, if not a natu12 ral person, the foreclosure commissioner must be duly au13 thorized to transact business under laws of the State in

14 which the security property is located. No person shall be

15 designated as a foreclosure commissioner unless that per16 son is responsible, financially sound, and competent to

17 conduct a foreclosure.

18 (d) DESIGNATION PROCEDURE.—

19 (1) WRITTEN DESIGNATION.—The Secretary

20 may designate a foreclosure commissioner by execut21 ing a written designation stating the name and busi22 ness or residential address of the commissioner, ex23 cept that if a person is designated in his or her ca24 pacity as an official or employee of a government or

25 corporate entity, such person may be designated by
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1 his or her unique title or position instead of by

2 name.

3 (2) SUBSTITUTE COMMISSIONERS.—The Sec4 retary may, with or without cause, designate a sub5 stitute foreclosure commissioner to replace a pre6 viously designated foreclosure commissioner.

7 (3) NUMBER.—More than 1 foreclosure com8 missioner may be designated at any time.

9 SEC. 806. PREREQUISITES TO FORECLOSURE.

10 (a) IN GENERAL.—

11 (1) UPON BREACH OF COVENANT OR CONDI12 TION.—The Secretary is authorized to foreclose a

13 mortgage under this title upon the breach of a cov14 enant or condition in the mortgage agreement.

15 (2) NO OTHER PENDING PROCEEDINGS.—

16 (A) PRIOR TO COMMENCEMENT.—No fore17 closure may be commenced under this title un18 less any previously pending judicial or

19 nonjudicial proceeding that has been separately

20 instituted by the Secretary to foreclose the

21 mortgage (other than under this title), has been

22 withdrawn, dismissed, or otherwise terminated.

23 (B) AFTER COMMENCEMENT.—No sepa24 rately instituted foreclosure proceeding on a

25 mortgage which is the subject of a foreclosure
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•S 2281 PCS

1 proceeding under this title shall be instituted by

2 the Secretary during the pendency of fore3 closure pursuant to this title.

4 (b) OTHER RIGHTS UNAFFECTED.—Nothing in this

5 title shall preclude the Secretary from—

6 (1) enforcing any right, other than foreclosure,

7 under applicable Federal or State law, including any

8 right to obtain a monetary judgment; or

9 (2) foreclosing under this title if the Secretary

10 has obtained or is seeking any other remedy avail11 able pursuant to Federal or State law, or under the

12 mortgage agreement, including the appointment of a

13 receiver, mortgagee-in-possession status, or relief

14 under an assignment of rents.

15 SEC. 807. COMMENCEMENT OF FORECLOSURE.

16 (a) REQUEST TO FORECLOSURE COMMISSIONER.—If

17 the Secretary, as holder of a single family mortgage, deter18 mines that the prerequisites to foreclosure set forth in sec19 tion 806 are satisfied, the Secretary may request the fore20 closure commissioner to commence foreclosure of a single

21 family mortgage. Upon such request, the foreclosure com22 missioner shall commence foreclosure of the mortgage, by

23 commencing service of a notice of default and foreclosure

24 sale in accordance with sections 808 and 809.
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1 (b) DESIGNATION OF SUBSTITUTE FORECLOSURE

2 COMMISSIONER.—After commencement of a foreclosure

3 under this title, the Secretary may designate a substitute

4 foreclosure commissioner at any time before the time of

5 the foreclosure sale, and the foreclosure shall continue

6 without prejudice, unless the substitute commissioner, in

7 that commissioner’s sole discretion, finds that continu8 ation of the foreclosure sale will unfairly affect the inter9 ests of the mortgagor. If the substitute commissioner

10 makes such a finding, the substitute commissioner shall

11 cancel the foreclosure sale, or adjourn such sale in accord12 ance with section 811(c).

13 (c) WRITTEN NOTICE.—Upon designation of a sub14 stitute foreclosure commissioner, a copy of the written no15 tice of such designation described in section 805 shall be

16 served—

17 (1) by mail, as provided in section 809 (except

18 that the minimum time periods between mailing and

19 the date of foreclosure sale prescribed in such sec20 tion shall not apply); or

21 (2) in any other manner which, in the sub22 stitute commissioner’s sole discretion, is conducive to

23 achieving timely notice of such substitution.
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1 SEC. 808. NOTICE OF DEFAULT AND FORECLOSURE SALE.

2 The notice of default and foreclosure sale to be served

3 in accordance with this title shall set forth—

4 (1) the name and address of the foreclosure

5 commissioner;

6 (2) the date on which the notice is issued;

7 (3) the names of—

8 (A) the Secretary;

9 (B) the original mortgagee (if other than

10 the Secretary); and

11 (C) the original mortgagor;

12 (4) the street address or a description of the lo13 cation of the security property, and a description of

14 the security property, sufficient to identify the prop15 erty to be sold;

16 (5) the date of the mortgage, the office in

17 which the mortgage is recorded, and the liber num18 ber and folio or other appropriate description of the

19 location of recordation of the mortgage;

20 (6) identification of the failure to make pay21 ment, including the due date of the earliest install22 ment payment remaining wholly unpaid as of the

23 date on which the notice is issued upon which the

24 foreclosure is based, or a description of any other

25 default or defaults upon which foreclosure is based,

26 and the acceleration of the secured indebtedness;
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•S 2281 PCS

1 (7) the date, time, and location of the fore2 closure sale;

3 (8) a statement that the foreclosure is being

4 conducted pursuant to this title;

5 (9) a description of the types of costs, if any,

6 to be paid by the purchaser upon transfer of title;

7 (10) the amount and method of deposit to be

8 required at the foreclosure sale (except that no de9 posit shall be required of the Secretary) and the

10 time and method of payment of the balance of the

11 foreclosure purchase price; and

12 (11) any other appropriate terms of sale or in13 formation, as the Secretary may determine.

14 SEC. 809. SERVICE OF NOTICE OF FORECLOSURE SALE.

15 The foreclosure commissioner shall serve the notice

16 of default and foreclosure sale described in section 808

17 upon the following persons and in the following manner,

18 and no additional notice shall be required to be served,

19 notwithstanding any notice requirements of any State or

20 local law:

21 (1) TIMING.—Not less than 21 days before the

22 date of the foreclosure sale, the notice of default and

23 foreclosure sale shall be filed in the manner author24 ized for filing a notice of an action concerning real

25 property according to the law of the State in which
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•S 2281 PCS

1 the security property is located or, if none, in the

2 manner authorized by section 3201 of title 28, Unit3 ed States Code.

4 (2) NOTICE BY MAIL.—

5 (A) IN GENERAL.—The notice of fore6 closure sale shall be sent by certified or reg7 istered mail, postage prepaid and return receipt

8 requested, to the following:

9 (i) CURRENT OWNER.—The current

10 security property owner of record, as the

11 record existed 45 days before the date

12 originally set for the foreclosure sale

13 (whether or not the notice describes a sale

14 adjourned).

15 (ii) MORTGAGORS.—All mortgagors of

16 record or other persons who appear on the

17 basis of the record to be liable for part or

18 all of the mortgage debt, as the record ex19 isted 45 days before the date originally set

20 for the foreclosure sale (whether or not the

21 notice describes a sale adjourned).

22 (iii) DWELLING UNITS.—All dwelling

23 units in the security property (whether or

24 not the notice describes a sale adjourned).
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1 (iv) OTHER LIENHOLDERS.—All per2 sons holding liens of record upon the secu3 rity property, as the record existed 45 days

4 before the date originally set for the fore5 closure sale (whether or not the notice de6 scribes a sale adjourned).

7 (B) TIMING.—

8 (i) NOTICE UNDER CLAUSES (i) AND

9 (ii).—Notice under clauses (i) and (ii) of

10 subparagraph (A) shall be mailed not less

11 than 21 days before the date of the fore12 closure sale, and shall be mailed to the

13 current owner and mortgagor at the last

14 known address of the current owner and

15 mortgagor, or, if none, to the address of

16 the security property, or, at the discretion

17 of the foreclosure commissioner, to any

18 other address believed to be that of such

19 current owner and mortgagor.

20 (ii) NOTICE UNDER CLAUSE (iii).—

21 Notice under clause (iii) of subparagraph

22 (A) shall be mailed not less than 21 days

23 before the date of the foreclosure sale. If

24 the names of the occupants of the security

25 property are not known to the Secretary,
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•S 2281 PCS

1 or the security property has more than 1

2 dwelling, the notice shall be posted at the

3 security property not less than 21 days be4 fore the foreclosure sale.

5 (iii) NOTICE UNDER CLAUSE (iv).—

6 Notice under clause (iv) of subparagraph

7 (A) shall be mailed not less than 21 days

8 before the date of the foreclosure sale, and

9 shall be mailed to each such lienholder’s

10 address of record or, at the discretion of

11 the foreclosure commissioner, to any other

12 address believed to be that of such

13 lienholder.

14 (C) EFFECTIVENESS OF NOTICE.—Notice

15 by mail pursuant to this section or section

16 807(c) shall be deemed duly given upon mail17 ing, whether or not received by the addressee

18 and whether or not a return receipt is received

19 or the notice is returned.

20 (3) PUBLICATION.—

21 (A) IN GENERAL.—A copy of the notice of

22 default and foreclosure sale shall be published

23 once a week during 3 successive calendar weeks

24 before the date of the foreclosure sale. Such

25 publication shall be in a newspaper or news-
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•S 2281 PCS

1 papers having general circulation in the county

2 or counties in which the security property being

3 sold is located. To the extent practicable, the

4 newspaper or newspapers chosen shall be a

5 newspaper or newspapers having circulation

6 conducive to achieving notice of foreclosure by

7 publication. A legal newspaper that is accepted

8 as a newspaper of legal record in the county or

9 counties in which the security property being

10 sold is located shall be considered a newspaper

11 having general circulation for the purposes of

12 this paragraph.

13 (B) EXCEPTION.—If there is no newspaper

14 published at least weekly which has a general

15 circulation in one of the counties in which the

16 security property being sold is located, copies of

17 the notice of default and foreclosure sale shall

18 be posted not less than 21 days before the date

19 of the foreclosure sale—

20 (i) at the courthouse of any county or

21 counties in which the security property is

22 located; and

23 (ii) at the place where the sale is to

24 be held.
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1 SEC. 810. PRESALE REINSTATEMENT.

2 (a) WITHDRAWAL AND CANCELLATION.—

3 (1) IN GENERAL.—Except as provided in sec4 tions 807(b) and 811(c), the foreclosure commis5 sioner shall withdraw the security property from

6 foreclosure and cancel the foreclosure sale only if—

7 (A) the Secretary directs the foreclosure

8 commissioner to do so before or at the time of

9 the sale;

10 (B) the foreclosure commissioner finds,

11 upon application of the mortgagor not less than

12 3 days before the date of the sale, that the de13 fault or defaults upon which the foreclosure is

14 based did not exist at the time of service of the

15 notice of default and foreclosure sale; or

16 (C)(i) in the case of a foreclosure involving

17 a monetary default, there is tendered to the

18 foreclosure commissioner before public auction

19 is completed the entire amount of principal and

20 interest which would be due if payments under

21 the mortgage had not been accelerated;

22 (ii) in the case of a foreclosure involving a

23 nonmonetary default, the foreclosure commis24 sioner, upon application of the mortgagor be25 fore the date of foreclosure sale, finds that such

26 default is cured; and
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1 (iii) there is tendered to the foreclosure

2 commissioner before public auction is com3 pleted—

4 (I) all amounts due under the mort5 gage agreement (excluding additional

6 amounts which would have been due if

7 mortgage payments had been accelerated);

8 (II) all amounts of expenditures se9 cured by the mortgage; and

10 (III) all costs of foreclosure incurred

11 for which payment from the proceeds of

12 foreclosure is provided in section 812.

13 (2) DISCRETIONARY NONCANCELLATION.—The

14 Secretary may refuse to cancel a foreclosure sale

15 pursuant to paragraph (1)(C) if the current mortga16 gor or owner of record has, on one or more previous

17 occasions, caused a foreclosure of the mortgage,

18 commenced pursuant to this title or otherwise, to be

19 canceled by curing a default.

20 (b) OPPORTUNITY OF SECRETARY TO DISPUTE

21 WITHDRAWAL.—Before withdrawing the security property

22 from foreclosure under subparagraph (B) or (C) of sub23 section (a)(1), the foreclosure commissioner shall afford

24 the Secretary a reasonable opportunity to demonstrate

25 why the security property should not be so withdrawn.
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1 (c) EFFECT OF CANCELLATION.—

2 (1) MORTGAGE UNAFFECTED.—In any case in

3 which a foreclosure commenced under this title is

4 canceled, the mortgage shall continue in effect as

5 though acceleration had not occurred.

6 (2) COMMENCEMENT OF NEW FORECLOSURE

7 SALE.—Cancellation of a foreclosure sale under this

8 title shall have no effect on the commencement of a

9 subsequent foreclosure proceeding under this title.

10 (d) NOTICE OF CANCELLATION.—The foreclosure

11 commissioner shall file a notice of cancellation in the same

12 place and manner provided for filing the notice of default

13 and foreclosure sale in section 809.

14 SEC. 811. CONDUCT OF SALE; ADJOURNMENT.

15 (a) IN GENERAL.—

16 (1) MANNER AND TIME.—A foreclosure sale

17 pursuant to this title shall be held at public auction

18 and shall be scheduled to begin between the hours

19 of 9 o’clock ante meridian and 4 o’clock post merid20 ian local time.

21 (2) LOCATION.—The foreclosure sale shall be

22 held at a location specified in the notice of default

23 and foreclosure sale and such location shall be at a

24 place where foreclosure real estate auctions are cus25 tomarily held in the county or counties in which the
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•S 2281 PCS

1 property to be sold is located, or at a courthouse

2 therein, or at or on the property to be sold. Sale of

3 security property situated in two or more counties

4 may be held in any 1 of the counties in which any

5 part of the security property is situated.

6 (3) SALE OF MULTIPLE PROPERTIES.—The

7 foreclosure commissioner may designate the order in

8 which multiple security properties are sold.

9 (b) DUTIES OF FORECLOSURE COMMISSIONER.—

10 (1) CONDUCT OF SALE.—

11 (A) IN GENERAL.—The foreclosure com12 missioner shall conduct the foreclosure sale in

13 accordance with the provisions of this title and

14 in a manner fair to both the mortgagor and the

15 Secretary.

16 (B) WRITTEN BIDS.—Written one-price

17 sealed bids shall be accepted by the foreclosure

18 commissioner from the Secretary and other per19 sons for entry by announcement by the fore20 closure commissioner at the sale.

21 (C) AUCTIONEER.—The foreclosure com22 missioner may serve as auctioneer, or, in ac23 cordance with regulations of the Secretary, may

24 employ an auctioneer to be paid from the com25 mission provided for in section 812(5).
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1 (2) ELIGIBLE PARTICIPANTS.—

2 (A) IN GENERAL.—The Secretary, and any

3 other person who has submitted a written one4 price bid, may bid at the foreclosure sale.

5 (B) PROHIBITED PARTICIPANTS.—The

6 foreclosure commissioner or any relative, related

7 business entity, or employee of the foreclosure

8 commissioner or a related business entity shall

9 not be permitted to bid in any manner on the

10 security property subject to foreclosure sale, ex11 cept that the foreclosure commissioner or an

12 auctioneer may be directed by the Secretary to

13 enter a bid on the Secretary’s behalf.

14 (c) ADJOURNMENT OR CANCELLATION OF SALE.—

15 (1) GENERAL AUTHORITY.—The foreclosure

16 commissioner may, before or at the time of the fore17 closure sale, adjourn or cancel the foreclosure sale if

18 the commissioner determines, in the commissioner’s

19 discretion, that—

20 (A) circumstances are not conducive to a

21 sale which is fair to the mortgagor and the Sec22 retary; or

23 (B) additional time is necessary to deter24 mine whether the security property should be
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•S 2281 PCS

1 withdrawn from foreclosure, as provided in sec2 tion 810.

3 (2) ADJOURNMENT TO SAME OR LATER DAY.—

4 The foreclosure commissioner may adjourn a fore5 closure sale to a later hour the same day by an6 nouncing or posting the new time and place of the

7 foreclosure sale, or may adjourn the foreclosure sale

8 for not less than 9 and not more than 31 days, in

9 which case the commissioner shall serve a notice of

10 default and foreclosure sale revised to recite the fact

11 that the foreclosure sale has been adjourned to a

12 specified date, as well as any other information the

13 foreclosure commissioner deems appropriate. Such

14 notice shall be served by publication and mailing in

15 accordance with section 809, except that publication

16 may be made on any of 3 separate days before the

17 revised date of foreclosure sale, and mailing may be

18 made at any time not less than 7 days before the

19 date to which the foreclosure sale has been ad20 journed.

21 (d) CASH DEPOSITS.—The foreclosure commissioner

22 may require a bidder to make a cash deposit in an amount

23 or percentage set by the foreclosure commissioner and

24 stated in the notice of foreclosure sale before the bid is

25 accepted. A successful bidder at the foreclosure sale who
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1 fails to comply with the terms of the sale may be required

2 to forfeit the cash deposit or, at the election of the fore3 closure commissioner after consultation with the Sec4 retary, shall be liable to the Secretary for any costs in5 curred as a result of such failure.

6 (e) PRESUMPTION OF VALIDITY OF SALE.—Any fore7 closure sale held in accordance with this title shall be con8 clusively presumed to have been conducted in a legal, fair,

9 and reasonable manner. The sale price shall be conclu10 sively presumed to be reasonable and equal to the fair

11 market value of the property.

12 SEC. 812. FORECLOSURE COSTS.

13 The following foreclosure costs shall be paid from the

14 sale proceeds before satisfaction of any other claim to such

15 sale proceeds:

16 (1) ADVERTISING AND POSTAGE.—Necessary

17 advertising costs and postage incurred in giving no18 tice pursuant to sections 809 and 811.

19 (2) MILEAGE.—Mileage (determined by the

20 most reasonable road distance) for posting notices

21 and for the foreclosure commissioner’s or auc22 tioneer’s attendance at the sale, as provided in sec23 tion 1821 of title 28, United States Code.
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•S 2281 PCS

1 (3) TITLE AND LIEN SEARCH.—Reasonable and

2 necessary costs incurred in connection with any

3 search of title and lien records.

4 (4) RECORDATION FEES.—Costs incurred to

5 record documents.

6 (5) COMMISSION.—A commission for the fore7 closure commissioner (if the foreclosure commis8 sioner is not an employee of the United States) for

9 the conduct of the foreclosure, to the extent such a

10 commission is authorized by the Secretary.

11 SEC. 813. DISPOSITION OF SALE PROCEEDS.

12 (a) PRIORITY PAYMENTS.—Money realized from a

13 foreclosure sale shall be made available for obligation and

14 expenditure in the following order:

15 (1) COSTS OF FORECLOSURE.—To cover the

16 costs of the foreclosure proceeding described in sec17 tion 812.

18 (2) TAX LIENS.—To pay valid tax liens or as19 sessments if required by the notice of default and

20 foreclosure sale.

21 (3) PRIOR LIENS.—To pay any liens recorded

22 before the recording of the mortgage which are re23 quired to be paid in conformity with the terms of

24 sale in the notice of default and foreclosure sale.
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•S 2281 PCS

1 (4) SERVICE CHARGES AND ADVANCES.—To

2 pay service charges and advances for taxes, assess3 ments, and property insurance premiums.

4 (5) INTEREST.—To pay any outstanding inter5 est.

6 (6) PRINCIPAL.—To pay the principal outstand7 ing balance secured by the mortgage (including ex8 penditures for the necessary protection, preservation,

9 and repair of the security property as authorized

10 under the mortgage agreement and interest thereon

11 if provided for in the mortgage agreement).

12 (7) LATE CHARGES OR FEES.—To pay any late

13 charges or fees.

14 (b) OTHER PAYMENTS.—

15 (1) OTHER LIENHOLDERS AND THE MORTGA16 GOR.—Any surplus of proceeds from a foreclosure

17 sale, after payment of the items described in sub18 section (a) shall be paid in the following order:

19 (A) First, to holders of liens recorded after

20 the mortgage in the order of priority under

21 Federal law or the law of the State in which the

22 security property is located.

23 (B) Second, to the appropriate mortgagor.

24 (2) DISPUTED CLAIMS.—If the person to whom

25 such surplus is to be paid cannot be located, or if
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•S 2281 PCS

1 the surplus available is insufficient to pay all claim2 ants and the claimants cannot agree on the alloca3 tion of the surplus, or if any person claiming an in4 terest in the mortgage proceeds does not agree that

5 some or all of the sale proceeds should be paid to

6 a claimant as provided in this section, that part of

7 the sale proceeds in question may be deposited by

8 the foreclosure commissioner with an appropriate of9 ficial or court authorized under law to receive dis10 puted funds in such circumstances. If a procedure

11 for the deposit of disputed funds is not available,

12 and the foreclosure commissioner files a bill of

13 interpleader or is sued as a stakeholder to determine

14 entitlement to such funds, the foreclosure commis15 sioner’s necessary costs incurred in taking or de16 fending such action shall be deductible from the dis17 puted funds.

18 SEC. 814. TRANSFER OF TITLE AND POSSESSION.

19 (a) DELIVERY OF DEEDS.—The foreclosure commis20 sioner shall, upon delivery of a deed or deeds to the pur21 chaser or purchasers (which shall be without warranty or

22 covenants to the purchaser or purchasers) obtain the bal23 ance of the purchase price in accordance with the terms

24 of sale provided in the notice of default and foreclosure

25 sale. Notwithstanding any State law to the contrary, deliv-
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1 ery of a deed by the foreclosure commissioner shall be a

2 conveyance of the property, and constitute passage of title

3 to the mortgaged property, and no judicial proceedings

4 shall be required ancillary or supplementary to the proce5 dures provided in this title to assure the validity of the

6 conveyance or confirmation of such conveyance.

7 (b) RIGHT OF POSSESSION.—A purchaser at a fore8 closure sale held pursuant to this title shall be entitled

9 to possession upon passage of title under subsection (a)

10 to the mortgaged property, subject to any interest or inter11 ests not barred under section 816. Any person remaining

12 in possession of the mortgaged property after the passage

13 of title shall be deemed a tenant at sufferance subject to

14 eviction under local law.

15 (c) DEATH OF PURCHASER.—If a purchaser dies be16 fore execution and delivery of the deed conveying the prop17 erty to the purchaser, the foreclosure commissioner shall

18 execute and deliver the deed to a representative of the de19 cedent purchaser’s estate upon payment of the purchase

20 price in accordance with the terms of sale. Such delivery

21 to the representative of the purchaser’s estate shall have

22 the same effect as if accomplished during the lifetime of

23 the purchaser.
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1 (d) BONA FIDE PURCHASER.—The purchaser of

2 property under this title shall be presumed to be a bona

3 fide purchaser.

4 (e) NO RIGHT OF REDEMPTION.—

5 (1) IN GENERAL.—There shall be no right of

6 redemption, or right of possession based upon a

7 right of redemption, in the mortgagor or others sub8 sequent to a foreclosure completed pursuant to this

9 title.

10 (2) CERTAIN PROVISIONS.—Section 204(l) of

11 the National Housing Act and section 701 of the

12 Department of Housing and Urban Development

13 Reform Act of 1989 shall not apply to mortgages

14 foreclosed under this title.

15 (f) TAXES.—When a mortgage foreclosed pursuant to

16 this title is conveyed to the Secretary, no tax shall be im17 posed or collected with respect to the foreclosure commis18 sioner’s deed (including any tax customarily imposed upon

19 the deed instrument or upon the conveyance or transfer

20 of title to the property). Failure to collect or pay a tax

21 of the type and under the circumstances stated in the pre22 ceding sentence shall not be grounds for refusing to record

23 such a deed, for failing to recognize such recordation as

24 imparting notice, or for denying the enforcement of such

25 a deed and its provisions in any State or Federal court.
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1 SEC. 815. RECORD OF FORECLOSURE AND SALE.

2 (a) STATEMENTS INCLUDED.—To establish a suffi3 cient record of foreclosure and sale, the foreclosure com4 missioner shall include in the recitals of the deed to the

5 purchaser, or prepare as an affidavit or addendum to the

6 deed, a statement setting forth—

7 (1) the date, time, and place of the foreclosure

8 sale;

9 (2) that the mortgage was held by the Sec10 retary, the date of the mortgage, the office in which

11 the mortgage was recorded, and the liber number

12 and folio or other appropriate description of the rec13 ordation of the mortgage;

14 (3) the particulars of the foreclosure commis15 sioner’s service of the notice of default and fore16 closure sale in accordance with sections 809 and

17 811;

18 (4) the date and place of filing the notice of de19 fault and foreclosure sale;

20 (5) that the foreclosure was conducted in ac21 cordance with the provisions of this title and with

22 the terms of the notice of default and foreclosure

23 sale; and

24 (6) the sale amount.

25 (b) EFFECT OF STATEMENTS.—The items set forth

26 in subsection (a) shall—
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1 (1) be prima facie evidence of the truth of such

2 facts in any Federal or State court; and

3 (2) evidence a conclusive presumption in favor

4 of bona fide purchasers and encumbrancers for value

5 without notice.

6 Encumbrancers for value include liens placed by lenders

7 who provide the purchaser with purchase money in ex8 change for a security interest in the newly-conveyed prop9 erty.

10 (c) RECORDATION OF INSTRUMENTS.—The deed exe11 cuted by the foreclosure commissioner, the foreclosure

12 commissioner’s affidavit (if prepared) and any other in13 struments submitted for recordation in relation to the

14 foreclosure of the security property under this title shall

15 be accepted for recordation by the registrar of deeds or

16 other appropriate official of the county or counties in

17 which the security property is located upon tendering of

18 payment of the usual recording fees for such instruments,

19 and without regard to the compliance of those instruments

20 with any other local filing requirements.

21 SEC. 816. EFFECT OF SALE.

22 A sale, made and conducted as prescribed in this title

23 to a bona fide purchaser, shall bar all claims upon, or with

24 respect to, the property sold, for each of the following per25 sons:
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1 (1) NOTICE RECIPIENTS.—Any person to whom

2 the notice of default and foreclosure sale was mailed

3 as provided in this title, and the heir, devisee, execu4 tor, administrator, successor, or assignee claiming

5 under any such person.

6 (2) SUBORDINATE CLAIMANTS WITH KNOWL7 EDGE.—Any person claiming any interest in the

8 property subordinate to that of the mortgage, if such

9 person had actual knowledge of the foreclosure sale.

10 (3) NONRECORDED CLAIMANTS.—Any person

11 claiming any interest in the property, whose assign12 ment, mortgage, or other conveyance was not duly

13 recorded or filed in the proper place for recording or

14 filing, or whose judgment or decree was not duly

15 docketed or filed in the proper place for docketing

16 or filing, before the date on which the notice of the

17 foreclosure sale was first served by publication, as

18 required by section 809(3), and the executor, admin19 istrator, or assignee of such a person.

20 (4) OTHER PERSONS.—Any person claiming an

21 interest in the property under a statutory lien or en22 cumbrance created subsequent to the recording or

23 filing of the mortgage being foreclosed, and attach24 ing to the title or interest of any person designated

25 in any of the foregoing paragraphs.
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1 SEC. 817. COMPUTATION OF TIME.

2 Periods of time provided for in this title shall be cal3 culated in consecutive calendar days, including the day or

4 days on which the actions or events occur or are to occur

5 for which the period of time is provided and including the

6 day on which an event occurs or is to occur from which

7 the period is to be calculated.

8 SEC. 818. SEVERABILITY.

9 If any part of this title shall, for any reason, be ad10 judged by a court of competent jurisdiction to be invalid,

11 or invalid as applied to a class of cases, such judgment

12 shall not affect, impair, or invalidate the remainder there13 of, and shall be confined in its operation to the part there14 of directly involved in the controversy in which such judg15 ment shall have been rendered.

16 SEC. 819. DEFICIENCY JUDGMENT.

17 (a) IN GENERAL.—

18 (1) REFERRAL TO ATTORNEY GENERAL.—If

19 after deducting the payments provided for in section

20 813 of this title, the price at which the security

21 property is sold at a foreclosure sale is less than the

22 unpaid balance of the debt secured by the security

23 property, resulting in a deficiency, the Secretary

24 may refer the matter to the Attorney General who

25 may commence an action or actions against any or
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1 all debtors to recover the deficiency, unless such an

2 action is specifically prohibited by the mortgage.

3 (2) OTHER RECOVERIES.—In any action insti4 tuted pursuant to this section the United States may

5 recover—

6 (A) any amount authorized by section

7 3011 of title 28, United States Code; and

8 (B) the costs of the action.

9 (b) LIMITATION.—Any action commenced to recover

10 a deficiency under this section must be brought not later

11 than 6 years after the date of the last sale of the security

12 property.

13 TITLE IX—RURAL HOUSING

14 SEC. 901. PROGRAM AUTHORIZATIONS.

15 (a) INSURANCE AND GUARANTEE AUTHORITY.—Sec16 tion 513(a) of the Housing Act of 1949 (42 U.S.C.

17 1483(a)) is amended to read as follows:

18 ‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—

19 ‘‘(1) IN GENERAL.—The Secretary may, to the

20 extent approved in appropriation Acts, insure and

21 guarantee loans under this title during fiscal years

22 1995 and 1996, in aggregate amounts not to exceed

23 $3,231,103,950 and $3,360,037,069, respectively, as

24 follows:
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1 ‘‘(A) For insured or guaranteed loans

2 under section 502 on behalf of low-income bor3 rowers receiving assistance under section

4 521(a)(1), $1,802,500,000 for fiscal year 1995

5 and $1,856,575,000 for fiscal year 1996.

6 ‘‘(B) For guaranteed loans under section

7 502(h) on behalf of low- and moderate-income

8 borrowers, $772,500,000 for fiscal year 1995

9 and $795,675,000 for fiscal year 1996.

10 ‘‘(C) For loans under section 504,

11 $36,050,000 for fiscal year 1995 and

12 $37,131,500 for fiscal year 1996.

13 ‘‘(D) For insured loans under section 514,

14 $18,053,950 for fiscal year 1995 and

15 $18,595,569 for fiscal year 1996.

16 ‘‘(E) For insured loans under section 515,

17 $600,000,000 for fiscal year 1995 and

18 $650,000,000 for fiscal year 1996.

19 ‘‘(F) For loans under section

20 523(b)(1)(B), $1,000,000 for fiscal year 1995

21 and $1,030,000 for fiscal year 1996.

22 ‘‘(G) For site loans under section 524,

23 $1,000,000 for fiscal year 1995 and $1,030,000

24 for fiscal year 1996.
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1 ‘‘(2) LIMITATION ON USE.—Notwithstanding

2 any other provision of law, insured or guaranteed

3 loan authority in this title for any fiscal year shall

4 not be transferred or used for any purpose not speci5 fied in this title.’’.

6 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

7 513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b))

8 is amended to read as follows:

9 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There

10 are authorized to be appropriated for fiscal years 1995

11 and 1996, and to remain available until expended, the fol12 lowing amounts:

13 ‘‘(1) For grants under section 502(c)(5)(C)(i),

14 $10,000,000 for fiscal year 1995, and $10,000,000

15 for fiscal year 1996.

16 ‘‘(2) For grants under section 504,

17 $31,000,000 for fiscal year 1995 and $31,930,000

18 for fiscal year 1996.

19 ‘‘(3) For purposes of section 509(c),

20 $1,000,000 for fiscal year 1995 and $1,030,000 for

21 fiscal year 1996.

22 ‘‘(4) For project preparation grants under sec23 tion 509(f)(6), $5,688,278 for fiscal year 1995 and

24 $5,858,926 for fiscal year 1996.
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1 ‘‘(5) In fiscal years 1995 and 1996, such sums

2 as may be necessary to meet payments on notes or

3 other obligations issued by the Secretary under sec4 tion 511 equal to—

5 ‘‘(A) the aggregate of the contributions

6 made by the Secretary in the form of credits on

7 principal due on loans made pursuant to section

8 503; and

9 ‘‘(B) the interest due on a similar sum

10 represented by notes or other obligations issued

11 by the Secretary.

12 ‘‘(6) For grants for service coordinators under

13 section 515(y), $1,073,260 for fiscal year 1995 and

14 $1,105,458 for fiscal year 1996.

15 ‘‘(7) For financial assistance under section

16 516—

17 ‘‘(A) for low-rent housing and related fa18 cilities for domestic farm labor under sub19 sections (a) through (j) of such section,

20 $15,000,000 for fiscal year 1995 and

21 $18,000,000 for fiscal year 1996; and

22 ‘‘(B) for housing for rural homeless and

23 migrant farmworkers under subsection (k) of

24 such section, $10,269,230 for fiscal year 1995

25 and $11,407,307 for fiscal year 1996.
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1 ‘‘(8) For grants under section 523(f),

2 $14,918,314 for fiscal year 1995 and $15,365,863

3 for fiscal year 1996.

4 ‘‘(9) For grants under section 533,

5 $33,056,408 for fiscal year 1993 and $34,048,100

6 for fiscal year 1994.

7 ‘‘(10) For grants under section 538,

8 $10,000,000 for fiscal year 1995, which shall remain

9 available until the end of fiscal year 1997.

10 ‘‘(11) For assistance under section 539,

11 $10,000,000 for fiscal year 1995 and $12,000,000

12 for fiscal year 1996.’’.

13 (c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—

14 Section 513(c) of the Housing Act of 1949 (42 U.S.C.

15 1483(c)(1)) is amended by striking ‘‘(c)’’ and all that fol16 lows through the end of paragraph (1) and inserting the

17 following:

18 ‘‘(c) RENTAL AND OPERATING ASSISTANCE.—

19 ‘‘(1) IN GENERAL.—The Secretary, to the ex20 tent approved in appropriations Acts for fiscal years

21 1995 and 1996, may enter into rental assistance

22 payment contracts under section 521(a)(2)(A) and

23 contracts for operating assistance under section

24 521(a)(5), aggregating $454,079,620 for fiscal year

25 1995 and $467,702,009 for fiscal year 1996.’’.
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1 (d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT

2 CONTRACTS.—Section 513(d) of the Housing Act of 1949

3 (42 U.S.C. 1483(d)) is amended to read as follows:

4 ‘‘(d) SUPPLEMENTAL RENTAL ASSISTANCE CON5 TRACTS.—The Secretary, to the extent approved in appro6 priations Acts for fiscal years 1995 and 1996, may enter

7 into 5-year supplemental rental assistance contracts under

8 section 502(c)(5)(D) aggregating $13,070,160 for fiscal

9 year 1995 and $13,462,265 for fiscal year 1996.’’.

10 (e) RURAL HOUSING VOUCHER AUTHORITY.—Sec11 tion 513(e) of the Housing Act of 1949 (42 U.S.C.

12 1483(e)) is amended to read as follows:

13 ‘‘(e) RURAL HOUSING VOUCHERS.—There are au14 thorized to be appropriated for rural housing vouchers

15 under section 542, $100,000,000 for fiscal year 1995 and

16 $100,000,000 for fiscal year 1996.’’.

17 (f) RENTAL HOUSING LOAN AUTHORITY.—Section

18 515(b)(4) of the Housing Act of 1949 (42 U.S.C.

19 1485(b)(4)) is amended by striking ‘‘1991’’ and inserting

20 ‘‘1996’’.

21 SEC. 902. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL

22 HOUSING PROGRAMS.

23 Section 501(b)(6) of the Housing Act of 1949 (42

24 U.S.C. 1471(b)(6)) is amended by adding at the end the

25 following new sentence: ‘‘In any case in which assistance
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1 made available under this title may be provided to a State

2 or State agency or in which a State or State agency is

3 eligible to participate in a program or activity under this

4 title, such assistance may also be provided to Indian tribes

5 and tribal agencies and Indian tribes and tribal agencies

6 shall be eligible to participate, respectively.’’.

7 SEC. 903. ESCROW FUND.

8 Section 501(e) of the Housing Act of 1949 (42

9 U.S.C. 1471(e)) is amended by striking the third and

10 fourth sentences and inserting the following: ‘‘The Sec11 retary may establish in the United States Treasury an es12 crow fund for the deposit of such periodic payments. The

13 Secretary may direct the Secretary of the Treasury to in14 vest and reinvest amounts in the escrow fund in public

15 debt securities with maturities suitable for the needs of

16 the escrow fund and bearing interest at rates determined

17 by the Secretary of the Treasury, taking into consideration

18 the current average market yield on outstanding market19 able obligations of the United States of comparable matu20 rities. Any interest earned shall be credited to the escrow

21 fund. The Secretary shall disburse amounts at the appro22 priate time or times for the purposes for which the

23 amounts were escrowed in the fund. The interest rate to

24 be paid on escrowed amounts shall be determined annually

25 based on the interest earned less an amount not to exceed
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1 1 percent which shall be used for expenses in carrying out

2 the provisions of this title.’’.

3 SEC. 904. SECTION 502 HOMEOWNERSHIP LOANS.

4 (a) REMOTE RURAL AREAS.—Section 502(f) of the

5 Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—

6 (1) by striking paragraph (1);

7 (2) by redesignating paragraph (2) as para8 graph (1); and

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

10 paragraph:

11 ‘‘(2) SECURITY.—In making a loan under this

12 section for housing located in a rural area that is a

13 remote rural area (which shall include tribal allotted

14 or Indian trust land) where the borrower resides or

15 is employed, the Secretary shall consider the actual

16 replacement cost of the property and structure for

17 which the loan is made as adequate security for the

18 loan required under subsection (b).’’.

19 (b) DEFERRED MORTGAGE DEMONSTRATION.—

20 Paragraphs (1) and (2) of section 502(g) of the Housing

21 Act of 1949 (42 U.S.C. 1472(g)) are amended to read

22 as follows:

23 ‘‘(1) AUTHORITY.—With respect to families or

24 persons otherwise eligible for assistance under sub25 section (d) but having incomes below the amount de-
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1 termined to qualify for a loan under this section, the

2 Secretary may defer mortgage payments beyond the

3 amount affordable at 1 percent interest, taking into

4 consideration income, taxes, and insurance. Deferred

5 amounts shall not exceed 25 percent of the amount

6 of the payment due at 1 percent interest and shall

7 be subject to recapture.

8 ‘‘(2) FUNDING.—Subject to approval in appro9 priations Acts, not more than 10 percent of the

10 amount approved for each of fiscal years 1993 and

11 1994 for loans under this section may be used to

12 carry out this subsection.’’.

13 (c) PHASE-IN OF RENT INCREASES.—Section

14 502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.

15 1472(c)(4)(B)(vi)) is amended by inserting before the pe16 riod at the end the following: ‘‘, except that any such in17 crease in rents for current tenants (except for increases

18 made necessary by increases in operating costs) shall (I)

19 be phased in equally over a period of not less than 3 years,

20 if such increase is 30 percent or more, and (II) be limited

21 to not more than 10 percent per year if such increase is

22 more than 10 percent but less than 30 percent’’.
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1 SEC. 905. DESIGNATION OF UNDERSERVED AREAS AND

2 RESERVATION OF ASSISTANCE.

3 (a) REAUTHORIZATION AND SET-ASIDE.—Section

4 509(f)(4) of the Housing Act of 1949 (42 U.S.C.

5 1479(f)(4)) is amended—

6 (1) in subparagraph (A)—

7 (A) in the first sentence—

8 (i) by striking ‘‘5.0 percent in fiscal

9 years 1993 and 1994’’ and inserting ‘‘not

10 less than 5 percent or more than 10 per11 cent for each of fiscal years 1995 and

12 1996’’; and

13 (ii) by striking ‘‘514, 515, and 524’’

14 and inserting ‘‘and 515’’; and

15 (B) in the second sentence, by striking

16 ‘‘sections 514 and 515’’ and inserting ‘‘section

17 515’’; and

18 (2) in subparagraph (B)(ii), by striking ‘‘5 per19 cent’’ and inserting ‘‘10 percent’’.

20 (b) 2-YEAR AND 3-YEAR DESIGNATIONS.—Section

21 509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f))

22 is amended—

23 (1) in paragraph (1)—

24 (A) in the 1st sentence, by striking ‘‘in

25 each fiscal year’’; and
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1 (B) in the 2d sentence, by striking ‘‘year

2 in’’ and inserting ‘‘first year for’’;

3 (2) in paragraph (2)—

4 (A) in the first sentence, by striking

5 ‘‘paragraph (4)’’ and inserting ‘‘paragraph

6 (5)’’; and

7 (B) by striking the last sentence;

8 (3) in paragraph (3)(B), by striking ‘‘para9 graph (2)’’ and inserting ‘‘paragraph (3)’’;

10 (4) in paragraph (4)(A), by striking ‘‘paragraph

11 (7)’’ and inserting ‘‘paragraph (8)’’;

12 (5) by redesignating paragraphs (2) through

13 (8) as paragraphs (3) through (9), respectively; and

14 (6) by inserting after paragraph (1) the follow15 ing new paragraph:

16 ‘‘(2) TIMING AND DURATION OF DESIGNA17 TIONS.—

18 ‘‘(A) IN GENERAL.—Except as provided in

19 subparagraph (B), the Secretary shall redesig20 nate the targeted underserved areas under this

21 subsection once every 2 fiscal years and such

22 designations shall remain in effect for a period

23 of 2 fiscal years. The first such 2-year designa24 tion shall be made for fiscal years 1995 and

25 1996.
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1 ‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—

2 The Secretary shall ensure that, at all times,

3 not less than 5 counties or communities that

4 contain tribal allotted or Indian trust land are

5 included among the 100 counties and commu6 nities designated as targeted underserved areas.

7 The Secretary shall redesignate the counties or

8 communities designated as a targeted under9 served area in compliance with this subpara10 graph once every 3 fiscal years and such des11 ignations shall remain in effect for 3 fiscal

12 years. The first such 3-year designation shall be

13 made for fiscal years 1995 through 1997. Upon

14 designation, the Secretary shall specify any tar15 geted underserved area designated in compli16 ance with this subparagraph.’’.

17 SEC. 906. SECTION 515 RURAL RENTAL HOUSING.

18 (a) LOAN TERM.—Section 515(a)(2) of the Housing

19 Act of 1949 (42 U.S.C. 1485(a)(2)) is amended by strik20 ing ‘‘fifty’’ and inserting ‘‘30’’.

21 (b) EQUITY TAKEOUT.—Section 515(t) of the Hous22 ing Act of 1949 (42 U.S.C. 1485(t)) is amended by strik23 ing paragraphs (4) and (5) and redesignating paragraphs

24 (6), (7), and (8) as paragraphs (4), (5), and (6), respec25 tively.
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1 (c) SET-ASIDE FOR NONPROFIT ENTITIES.—The

2 first sentence of section 515(w)(1) of the Housing Act of

3 1949 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fis4 cal years 1994 and 1995’’ and inserting ‘‘fiscal years 1995

5 and 1996.’’.

6 (d) AUTHORITY FOR SEQUENTIAL LOAN TRANSFERS

7 AND LIMITATION ON PROJECT TRANSFERS.—Section 515

8 of the Housing Act of 1949 (42 U.S.C. 1485) is amended

9 by inserting after subsection (g) the following new sub10 section:

11 ‘‘(h) LIMITATION ON TRANSFER OF PROJECTS.—Be12 ginning after the date of the enactment of the Housing

13 and Community Development Act of 1994, any interest

14 in the ownership of a project for which a loan is made

15 or insured under this section may be transferred only if

16 the Secretary determines that such transfer would be in

17 the best interests of the tenants of the housing for which

18 the loan was made or insured and of the Federal Govern19 ment.’’.

20 (e) PREPAYMENT.—

21 (1) IN GENERAL.—Section 502(c)(1) of the

22 Housing Act of 1949 (42 U.S.C. 1472(c)(1)) is

23 amended by adding at the end the following:

24 ‘‘(C) Beginning after May 26, 1994, and prior to the

25 expiration of 2 years after the date of enactment of this
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1 subparagraph, the Secretary may not accept an offer to

2 prepay, make an equity loan, transfer to a nonprofit orga3 nization, or request refinancing in accordance with sub4 section (b)(3) of, any loan made or insured under this sec5 tion pursuant to a contract entered into before the enact6 ment of the Department of Housing and Urban Develop7 ment Reform Act of 1989.’’.

8 (2) APPROVAL OF ASSISTANCE.—Section

9 502(c)(4)(C) of the Housing Act of 1949 (42 U.S.C.

10 1472(c)(4)(C)) is amended by striking the matter

11 preceding clause (i) and inserting the following:

12 ‘‘(C) APPROVAL OF ASSISTANCE.—The Secretary

13 may approve assistance under subparagraph (B) only if

14 the restrictive period has expired for any loan made or

15 insured under section 514 or 515 of this title pursuant

16 to a contract entered into after December 21, 1979, but

17 before the date of enactment of the Department of Hous18 ing and Urban Development Reform Act of 1989, and the

19 Secretary determines that the combination of assistance

20 provided—’’.
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1 SEC. 907. OPTIONAL CONVERSION OF RENTAL ASSISTANCE

2 PAYMENTS TO OPERATING SUBSIDY FOR MI3 GRANT FARMWORKER PROJECTS.

4 (a) IN GENERAL.—Section 521(a) of the Housing

5 Act of 1949 (42 U.S.C. 1490a(a)) is amended by adding

6 at the end the following new paragraph:

7 ‘‘(5) OPERATING ASSISTANCE FOR MIGRANT FARM8 WORKER PROJECTS.—

9 ‘‘(A) AUTHORITY.—In the case of housing (and

10 related facilities) for migrant farmworkers provided

11 or assisted with a loan under section 514 or a grant

12 under section 516, the Secretary may, at the request

13 of the owner of the project, use amounts provided

14 for rental assistance payments under paragraph (2)

15 to provide assistance for the costs of operating the

16 project. Any project assisted under this paragraph

17 may not receive rental assistance under paragraph

18 (2).

19 ‘‘(B) AMOUNT.—In any fiscal year, the assist20 ance provided under this paragraph for any project

21 shall not exceed an amount equal to 90 percent of

22 the operating costs for the project for the year, as

23 determined by the Secretary. The amount of assist24 ance to be provided for a project under this para25 graph shall be an amount that makes units in the

26 project available to migrant farmworkers in the area
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1 of the project at rates generally not exceeding 30

2 percent of the monthly adjusted incomes of such

3 farmworkers, based on the prevailing incomes of

4 such farmworkers in the area.

5 ‘‘(C) SUBMISSION OF INFORMATION.—The

6 owner of a project assisted under this paragraph

7 shall be required to provide to the Secretary, at least

8 annually, a budget of operating expenses and esti9 mated rental income, which the Secretary shall use

10 to determine the amount of assistance for the

11 project.

12 ‘‘(D) DEFINITIONS.—For purposes of this

13 paragraph, the following definitions shall apply:

14 ‘‘(i) The term ‘migrant farmworker’ shall

15 have the same meaning given the term in sec16 tion 516(k)(7).

17 ‘‘(ii) The term ‘operating cost’ means ex18 penses incurred in operating a project, includ19 ing expenses for—

20 ‘‘(I) administration, maintenance, re21 pair, and security of the project;

22 ‘‘(II) utilities, fuel, furnishings, and

23 equipment for the project; and

24 ‘‘(III) maintaining adequate reserve

25 funds for the project.’’.
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1 (b) CONFORMING AMENDMENTS.—Title V of the

2 Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amend3 ed—

4 (1) in section 502—

5 (A) in subsection (c)(1)(A)(i), by striking

6 ‘‘or (a)(2)’’ and inserting ‘‘, (a)(2), or (5)’’;

7 (B) in subsection (c)(4)(B)(ii), by inserting

8 before the period at the end the following: ‘‘, or

9 additional assistance or an increase in assist10 ance provided under section 521(a)(5)’’;

11 (C) in subsection (c)(4)(B)(iii), by insert12 ing before the period at the end the following:

13 ‘‘, or current tenants of projects not assisted

14 under section 521(a)(5)’’;

15 (D) in subsection (c)(5)(C)(iii)—

16 (i) by striking the second comma; and

17 (ii) by inserting ‘‘, or any assistance

18 payments received under section

19 521(a)(5),’’ before ‘‘with respect’’;

20 (E) in subsection (c)(5)(D), by inserting

21 before the period at the end the following: ‘‘or,

22 in the case of housing assisted under section

23 521(a)(5), does not exceed the rents established

24 for the project under such section’’;
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1 (2) in the second sentence of section 509(f)(5)

2 (as redesignated by the preceding provisions of this

3 title), by striking ‘‘an amount of section 521 rental

4 assistance’’ and inserting ‘‘, from amounts available

5 for assistance under paragraphs (2) and (5) of sec6 tion 521(a), an amount’’;

7 (3) in section 513(c)(2)—

8 (A) in the matter preceding subparagraph

9 (A), by inserting ‘‘or contracts for operating as10 sistance under section 521(a)(5)’’ after

11 ‘‘521(a)(2)(A)’’;

12 (B) in subparagraph (A), by inserting ‘‘or

13 operating assistance contracts’’ after ‘‘con14 tracts’’;

15 (C) in subparagraph (B), by striking

16 ‘‘rental’’ each place it appears; and

17 (D) in subparagraph (C), by inserting ‘‘or

18 operating assistance contracts’’ after ‘‘con19 tracts’’;

20 (4) in section 521(a)(2)(B)—

21 (A) by inserting ‘‘or paragraph (5)’’ after

22 ‘‘this paragraph’’; and

23 (B) by striking ‘‘which shall’’ and all that

24 follows through the period at the end and in25 serting the following: ‘‘. The budget (and the
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1 income, in the case of a project assisted under

2 this paragraph) shall be used to determine the

3 amount of the assistance for each project.’’;

4 (5) in section 521(c), by striking ‘‘subsection

5 (a)(2)’’ and inserting ‘‘subsections (a)(2) and

6 (a)(5)’’;

7 (6) in section 521(e), by inserting after ‘‘recipi8 ent’’ the following: ‘‘or any tenant in a project as9 sisted under subsection (a)(5)’’; and

10 (7) in section 530, by striking ‘‘rental assist11 ance payments with respect to such project under

12 section 521(a)(2)(A)’’ an inserting ‘‘assistance pay13 ments with respect to such project under section

14 521(a)(2)(A) or 521(a)(5)’’.

15 SEC. 908. ELIGIBILITY OF MANUFACTURED HOME PARKS

16 FOR BUILDING SITE LOANS FOR COOPERA17 TIVES.

18 The first sentence of section 524(a)(1) of the Hous19 ing Act of 1949 (42 U.S.C. 1490d(a)(1)) is amended by

20 inserting before the period at the end the following: ‘‘, and

21 for the acquisition and development of manufactured home

22 parks owned by nonprofit organizations for future owner23 ship by low- and moderate-income residents of the park’’.
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1 SEC. 909. RURAL HOUSING REPORT.

2 Not later than 180 days after the date of enactment

3 of this Act, the Secretary of Agriculture shall submit a

4 report to the Committee on Banking, Housing, and Urban

5 Affairs of the Senate and the Committee on Banking, Fi6 nance and Urban Affairs of the House of Representatives

7 on the rural rental housing program administered by the

8 Farmer’s Home Administration under section 515 of the

9 Housing Act of 1949. Such report shall review and analyze

10 the programmatic and fiscal performance of the section

11 515 program, and shall address the criticisms of the pro12 gram detailed in the report entitled ‘‘A Report to the Com13 mittee on Appropriations, U. S. House of Representatives,

14 on the Practices and Procedures Regarding Certain Hous15 ing and Loan Assistance Programs Under the Farmer’s

16 Home Administration’’.

17 SEC. 910. PRIORITY FOR RURAL HOUSING VOUCHER AS18 SISTANCE.

19 Section 542 of the Housing Act of 1949 (42 U.S.C.

20 1490r) is amended by adding at the end the following new

21 subsection:

22 ‘‘(c) PRIORITY.—

23 ‘‘(1) REQUIREMENT.—In providing assistance

24 under this section, the Secretary shall give pref25 erence to providing assistance for rental housing

26 that—
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1 ‘‘(A) is financed or assisted with a loan,

2 guarantee, insurance, or other assistance pro3 vided under this title; and

4 ‘‘(B)(i) has a significant number of units,

5 as determined by the Secretary, that have been

6 vacant for extended periods; or

7 ‘‘(ii) is occupied by a significant number of

8 families, as determined by the Secretary, who

9 pay as rent for a unit in the housing an amount

10 exceeding 30 percent of the family’s monthly

11 adjusted income.

12 ‘‘(2) PROJECT-BASED ASSISTANCE.—To provide

13 assistance according to the preference under para14 graph (1), the Secretary may enter into contracts

15 with owners of housing described in paragraph (1)

16 to provide voucher assistance payments that are at17 tached to such housing on behalf of very low-income

18 families who reside in such housing.’’.

19 SEC. 911. NATIVE AMERICAN RURAL HOUSING CAPACITY

20 DEMONSTRATION PROGRAM.

21 Title V of the Housing Act of 1949 is amended by

22 inserting after section 537 (42 U.S.C. 1490p–1) the fol23 lowing new section:
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1 ‘‘SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION

2 PROGRAM FOR NATIVE AMERICANS AND

3 ALASKAN NATIVES.

4 ‘‘(a) AUTHORITY.—The Secretary shall carry out a

5 program under this section to demonstrate the effective6 ness of assisting Native Americans and Alaskan Natives

7 in underserved areas to apply for, obtain, and use housing

8 assistance under this title.

9 ‘‘(b) GRANTS.—Under the demonstration under this

10 section, the Secretary shall make grants to technical as11 sistance providers selected under subsection (f) to carry

12 out activities under subsection (c) with respect to tribes

13 selected under subsection (e) (and members of the tribes)

14 in the selected areas. Of the amounts provided to a tech15 nical assistance provider under a grant under this section,

16 40 percent shall be disbursed to the technical assistance

17 provider in fiscal year 1995, 30 percent shall be so dis18 bursed in fiscal year 1996, and 30 percent shall be so dis19 bursed in fiscal year 1997.

20 ‘‘(c) USE OF ASSISTANCE.—

21 ‘‘(1) ELIGIBLE ACTIVITIES.—Any amounts pro22 vided to a technical assistance provider under a

23 grant under this section shall be used by the tech24 nical assistance provider only—

25 ‘‘(A) to train individuals for employment

26 as local project coordinators under paragraph
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1 (2), which shall include training regarding the

2 availability, application for, and use of housing

3 assistance under this title with respect to tribes

4 and members of tribes;

5 ‘‘(B) to provide ongoing technical assist6 ance and training to local project coordinators;

7 ‘‘(C) to provide assistance to the tribes se8 lected under subsection (e) in the selected

9 areas, or to Native American or Alaskan Native

10 housing organizations serving such tribes, to

11 employ local project coordinators trained pursu12 ant to subparagraph (A); and

13 ‘‘(D) to establish a revolving fund to pro14 vide loans to tribes and members of tribes for

15 customary and reasonable costs incurred in pre16 paring and submitting applications for housing

17 assistance under this title to be used in the se18 lected areas (including costs of credit reports),

19 except that not more than $1,500 may be pro20 vided for the purpose under this subparagraph

21 to any single tribe or Native American or Alas22 kan Native housing organization.

23 ‘‘(2) LOCAL PROJECT COORDINATOR.—For pur24 poses of this section, a local project coordinator shall

25 be an individual who—
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1 ‘‘(A) is employed by a tribe selected under

2 subsection (e) in, or Native American or Alas3 kan Native housing organization serving, the

4 selected area;

5 ‘‘(B) provides advice and assistance to the

6 tribe or the tribes served by the organization

7 (and members of such tribes), regarding the

8 availability, application for, and use of housing

9 assistance under this title;

10 ‘‘(C) otherwise facilitates the use of such

11 assistance by the tribes and their members; and

12 ‘‘(D) assists the tribes and their members

13 in obtaining loans from the revolving fund es14 tablished under paragraph (1)(D).

15 ‘‘(d) TRIBAL CONTRIBUTIONS TO DEMONSTRATION

16 PROGRAM.—Each tribe selected under subsection (e) for

17 participation in the demonstration program under this

18 section shall enter into an agreement with the technical

19 assistance provider to provide in-kind or financial assist20 ance, in addition to amounts provided under this section,

21 for activities under the demonstration program, in an

22 amount determined by the tribe and the technical assist23 ance provider. The assistance provided pursuant to such

24 agreement may include assistance in the form of office
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1 space, equipment, transportation, salary enhancement,

2 and fringe benefits, and other forms of assistance.

3 ‘‘(e) SELECTION OF TRIBES AND AREAS.—

4 ‘‘(1) ELIGIBILITY.—The Secretary shall provide

5 for the technical assistance providers receiving

6 grants under this section to select for participation

7 in the demonstration under this section not more

8 than a total of 15 tribes—

9 ‘‘(A) that are located in counties or

10 communities—

11 ‘‘(i) that are eligible for designation

12 as targeted underserved areas under sec13 tion 509(f); or

14 ‘‘(ii) that include tribal allotted or In15 dian trust land; and

16 ‘‘(B) that—

17 ‘‘(i) have agreed to participate in the

18 demonstration under this section by des19 ignating individuals for training as local

20 project coordinators under subsection (c);

21 or

22 ‘‘(ii) are located in a county or com23 munity within which is located a Native

24 American or Alaskan Native housing orga-
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1 nization that has so agreed to participate

2 in the demonstration under this section.

3 ‘‘(2) CRITERIA FOR SELECTION.—Each tech4 nical assistance provider selecting tribes pursuant to

5 paragraph (1) shall make such selections according

6 to criteria that include—

7 ‘‘(A) the extent of substandard housing on

8 the reservation of the tribe;

9 ‘‘(B) the extent of the waiting list for

10 housing assistance under Federal housing pro11 grams in the community or community under

12 paragraph (1)(A);

13 ‘‘(C) the extent of interest in and willing14 ness to participate in the demonstration pro15 gram under this section for a 3-year period;

16 and

17 ‘‘(D) the extent of willingness to provide

18 in-kind or financial assistance in addition to

19 amounts provided under this section for activi20 ties under the demonstration program.

21 ‘‘(3) TREATMENT AS TARGETED UNDERSERVED

22 AREAS.—Notwithstanding the designation of coun23 ties and communities as targeted underserved areas

24 under section 509(f)(1) and the provisions of section

25 520, any selected area under this section shall be
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•S 2281 PCS

1 considered a targeted underserved area for fiscal

2 years 1995, 1996, and 1997, for purposes of eligi3 bility for assistance with amounts reserved under

4 section 509(f)(4)(A).

5 ‘‘(f) SELECTION OF TECHNICAL ASSISTANCE PRO6 VIDERS.—

7 ‘‘(1) ELIGIBILITY.—The Secretary may make a

8 grant under this section only to a nonprofit organi9 zation having experience in providing training and

10 technical assistance regarding the use of housing as11 sistance under this title and in administering revolv12 ing loan funds for costs relating to housing assist13 ance programs under this title.

14 ‘‘(2) APPLICATION.—The Secretary shall pro15 vide for nonprofit organizations meeting the require16 ments under paragraph (1) to submit applications

17 for a grant under this section during a period of not

18 more than 45 days that begins upon publication of

19 the notice of funding availability under subsection

20 (i).

21 ‘‘(3) SELECTION.—Not more than 30 days

22 after expiration of such period, the Secretary shall

23 select, to receive grants under this section, 1 or

24 more nonprofit organizations submitting applications

25 that are—
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1 ‘‘(A) capable of carrying out the duties of

2 technical assistance providers under this sec3 tion; and

4 ‘‘(B) knowledgeable and experienced re5 garding housing needs and issues of Native

6 Americans and Alaskan Natives and housing

7 assistance programs under this title; and

8 ‘‘(C) agree to comply with the provisions of

9 this section.

10 ‘‘(g) REPORTS.—

11 ‘‘(1) LOCAL PROJECT COORDINATORS.—Each

12 local project coordinator trained or assisted by a

13 technical assistance provider with amounts from a

14 grant under this section shall submit a report to the

15 technical assistance provider for each of fiscal years

16 1995 through 1997, regarding the activities of the

17 coordinator. The report shall be submitted not later

18 than 30 days after the conclusion of the fiscal year

19 for which the report is made.

20 ‘‘(2) TECHNICAL ASSISTANCE PROVIDERS.—

21 Each technical assistance provider receiving a grant

22 under this section shall submit a report to the Sec23 retary for each of fiscal years 1995 through 1997,

24 summarizing the information submitted under para25 graph (1) for the fiscal year and describing the ac-
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•S 2281 PCS

1 tivities of the technical assistance provider under the

2 demonstration under this section during the fiscal

3 year. The report shall be submitted not later than

4 60 days after the conclusion of the fiscal year for

5 which the report is made.

6 ‘‘(3) SECRETARY.—The Secretary shall submit

7 a report to the Congress for each of fiscal years

8 1995 through 1997 describing the demonstration

9 under this section and the findings of the Secretary

10 as a result of the demonstration. The report shall be

11 submitted not later than 90 days after the conclu12 sion of the fiscal year for which the report is made.

13 ‘‘(h) DEFINITIONS.—For purposes of this section, the

14 following definitions shall apply:

15 ‘‘(1) ALASKAN NATIVE VILLAGE.—The term

16 ‘Alaskan Native Village’ has the same meaning given

17 the term ‘Native village’ in section 3 of the Alaska

18 Native Claims Settlement Act.

19 ‘‘(2) NATIVE AMERICAN OR ALASKAN NATIVE

20 HOUSING ORGANIZATION.—The term ‘Native Amer21 ican or Alaskan Native housing organization’ means

22 a nonprofit organization that primarily serves a tribe

23 or tribes, and includes Indian housing authorities

24 and other housing entities of a tribe.
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1 ‘‘(3) NONPROFIT ORGANIZATION.—The term

2 ‘nonprofit organization’ means any private, nonprofit

3 organization that—

4 ‘‘(A) is organized or chartered under State,

5 tribal, or local laws;

6 ‘‘(B) has no part of its net earning inuring

7 to the benefit of any member, founder, contrib8 utor, or individual;

9 ‘‘(C) complies with standards of financial

10 accountability acceptable to the Secretary; and

11 ‘‘(D) through its articles of incorporation

12 or through resolution of the governing body of

13 a tribe, has among its purposes significant ac14 tivities related to the provision of decent hous15 ing that is affordable to low- and moderate-in16 come families.

17 ‘‘(4) SELECTED AREA.—The term ‘selected

18 area’ means, with respect to any tribe selected under

19 subsection (e), the county or community meeting the

20 requirements of subsection (e)(1) in which the tribe

21 selected is located.

22 ‘‘(5) TECHNICAL ASSISTANCE PROVIDER.—The

23 term ‘technical assistance provider’ means a non24 profit organization (including a tribe and an Indian
367

•S 2281 PCS

1 housing authority) that is selected under subsection

2 (f) to receive a grant under this section.

3 ‘‘(6) TRIBE.—The term ‘tribe’ means any In4 dian tribe, band, group, or nation, including Alaska

5 Indians, Aleuts, and Eskimos, and any Alaskan Na6 tive Village, of the United States, that is considered

7 an eligible recipient under the Indian Self-Deter8 mination and Education Assistance Act or was con9 sidered an eligible recipient under chapter 67 of title

10 31, prior to the repeal of such chapter.

11 ‘‘(i) NOTICE OF FUNDING AVAILABILITY.—

12 ‘‘(1) PUBLICATION.—The Secretary shall cause

13 to be published in the Federal Register notice of the

14 availability of any amounts made available for

15 grants under this section. Such notice shall be pub16 lished not later than the expiration of the 90-day pe17 riod beginning on the date that amounts are appro18 priated to carry out this section.

19 ‘‘(2) CONTENTS.—The notice referred to in

20 paragraph (1) shall—

21 ‘‘(A) describe the requirements for eligi22 bility to receive a grant, the purposes of the

23 grant, and the permissible uses of grant

24 amounts;
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1 ‘‘(B) contain an address to which requests

2 for additional information regarding the dem3 onstration under this section may be made; and

4 ‘‘(C) state the deadline established by the

5 Secretary pursuant to section (f)(2) for the sub6 mission of applications for a grant.’’.

7 SEC. 912. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

8 Title V of the Housing Act of 1949 (42 U.S.C. 1471

9 et seq.) is amended by inserting after section 538 (as

10 added by the preceding provisions of this title) the follow11 ing new section:

12 ‘‘SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

13 ‘‘(a) IN GENERAL.—The Secretary is authorized to

14 provide assistance to develop the capacity and ability of

15 community development corporations, community housing

16 development organizations, and other nonprofit organiza17 tions to undertake community development and affordable

18 housing projects and programs in rural areas.

19 ‘‘(b) FORM OF ASSISTANCE.—Assistance under this

20 section may be used for—

21 ‘‘(1) training, education, support, and advice to

22 enhance the technical and administrative capabilities

23 of community development corporations, community

24 housing development organizations, and nonprofit

25 organizations in rural areas;
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•S 2281 PCS

1 ‘‘(2) loans, grants, or predevelopment assistance

2 to community development corporations, community

3 housing development organizations, and nonprofit

4 organizations to carry out community development

5 and affordable housing activities that benefit low-in6 come families in rural areas; and

7 ‘‘(3) such other activities for rural areas as may

8 be determined by the Secretary.

9 ‘‘(c) MATCHING REQUIREMENT.—Assistance pro10 vided under this section shall be matched from private

11 sources in an amount equal to 1 times the amount made

12 available under this section.

13 ‘‘(d) IMPLEMENTATION.—The Secretary shall by no14 tice establish such requirements as may be necessary to

15 carry out the provisions of this section. The notice shall

16 take effect upon issuance.’’.

17 TITLE X—REGULATORY AND

18 MISCELLANEOUS PROGRAMS

19 SEC. 1001. OFHEO ASSESSMENT COLLECTION DATES.

20 Section 1316(b) of the Housing and Community De21 velopment Act of 1992 (42 U.S.C. 4516(b)) is amended

22 by striking paragraph (2) and inserting the following:

23 ‘‘(2) TIMING OF PAYMENT.—The annual assess24 ment shall be payable on October 1 and April 1 of

25 each fiscal year.’’.
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1 SEC. 1002. LEAD-BASED PAINT TECHNICAL ASSISTANCE

2 AMENDMENTS.

3 The Residential Lead-Based Paint Hazard Reduction

4 Act of 1992 (42 U.S.C. 4851 et seq.) is amended—

5 (1) in section 1011(g)—

6 (A) in paragraph (1)—

7 (i) in the first sentence, by inserting

8 before the period the following: ‘‘by provid9 ing technical assistance either directly, or

10 indirectly under contract or otherwise’’;

11 and

12 (ii) by striking the second sentence;

13 and

14 (B) by striking paragraph (2) and insert15 ing the following:

16 ‘‘(2) SET-ASIDE.—Of the total amount appro17 priated under subsection (p), there shall be set aside

18 to carry out this subsection $5,000,000 for fiscal

19 year 1995 and $5,000,000 for fiscal year 1996.’’;

20 (2) in section 1052, by inserting ‘‘either di21 rectly, or indirectly under contract or otherwise,’’

22 after ‘‘other Federal agencies,’’;

23 (3) by striking section 1053 and inserting the

24 following:
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1 ‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI2 TIES.

3 ‘‘The Secretary may use funding available to carry

4 out this part to undertake, either directly, or indirectly

5 under contract or otherwise, pursuant to title V of the

6 Housing and Urban Development Act of 1970, such stud7 ies, tests (including pilot tests of new or revised pro8 grams), evaluations, demonstrations, education of the pub9 lic, and preparation of training materials, as are consist10 ent with the purposes of this Act.’’; and

11 (4) by adding at the end the following new sec12 tion:

13 ‘‘SEC. 1054. AUTHORIZATION.

14 ‘‘Of the total amount approved in appropriation Acts

15 under section 1011(p), there shall be set aside to carry

16 out this part $10,000,000 for fiscal year 1995 and

17 $10,000,000 for fiscal year 1996.’’.

18 SEC. 1003. LEAD-BASED PAINT TARGET HOUSING HAZARD

19 REDUCTION PROGRAM.

20 Section 1011(p) of the Residential Lead-Based Paint

21 Hazard Reduction Act of 1992 (42 U.S.C. 4852(p)) is

22 amended to read as follows:

23 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated $150,000,000 for fiscal

25 year 1995 and $150,000,000 for fiscal year 1996 to carry

26 out this title.’’.
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1 SEC. 1004. LEAD-BASED PAINT NOTIFICATION REQUIRE2 MENTS.

3 (a) DISCLOSURE OF INFORMATION CONCERNING

4 LEAD UPON TRANSFER OF RESIDENTIAL PROPERTY.—

5 Section 1018(a)(1)(A) of the Residential Lead-Based

6 Paint Hazard Reduction Act of 1992 (42 U.S.C.

7 4852d(a)(1)(A)) is amended by inserting before the semi8 colon the following: ‘‘, which shall be made available in

9 English and Spanish versions, and if practicable, in other

10 languages as are spoken by a substantial number of the

11 residents, as determined by the Secretary and the Admin12 istrator’’.

13 SEC. 1005. HUD RESEARCH AND DEVELOPMENT.

14 The second sentence of section 501 of the Housing

15 and Urban Development Act of 1970 (12 U.S.C. 1701z–

16 1) is amended to read as follows: ‘‘There are authorized

17 to be appropriated to carry out this title $40,000,000 for

18 fiscal year 1995 and $40,000,000 for fiscal year 1996.’’.

19 SEC. 1006. INDEMNIFICATION OF CONTRACTORS FOR IN20 TELLECTUAL PROPERTY RIGHTS DISPUTES.

21 A recipient of Federal housing assistance may not use

22 such funds to indemnify contractors or subcontractors

23 against costs associated with litigating or settling disputes

24 concerning the infringement of intellectual property rights.
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•S 2281 PCS

1 SEC. 1007. FAIR HOUSING INITIATIVES PROGRAM AUTHOR2 IZATION OF APPROPRIATIONS.

3 Section 561(g) of the Housing and Community De4 velopment Act of 1987 (42 U.S.C. 3616 note) is amended

5 to read as follows:

6 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

7 are authorized to be appropriated to remain available until

8 expended to carry out the provisions of this section

9 $26,000,000 for fiscal year 1995 and $26,000,000 for fis10 cal year 1996. Amounts appropriated shall remain avail11 able until expended.’’.

12 SEC. 1008. CIVIL MONEY PENALTIES FOR VIOLATIONS OF

13 THE HOME MORTGAGE DISCLOSURE ACT BY

14 NONSUPERVISED MORTGAGEES.

15 Section 305 of the Home Mortgage Disclosure Act

16 of 1975 (12 U.S.C. 2804) is amended—

17 (1) by striking subsection (b)(4); and

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

20 ‘‘(d) POWERS OF THE SECRETARY OF HOUSING AND

21 URBAN DEVELOPMENT.—

22 ‘‘(1) IN GENERAL.—The Secretary of Housing

23 and Urban Development (hereafter in this sub24 section referred to as the ‘Secretary’) shall enforce

25 compliance with the requirements imposed under
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•S 2281 PCS

1 this title with regard to lending institutions not

2 named in subsection (b).

3 ‘‘(2) CIVIL MONEY PENALTIES.—Pursuant to

4 paragraph (1), the Secretary may impose a civil

5 money penalty for failure to comply with the require6 ments of this title.

7 ‘‘(3) AMOUNT OF PENALTY.—The amount of

8 the penalty, as determined by the Secretary, may

9 not exceed $5,000 for each violation, except that the

10 maximum penalty for all violations by any particular

11 lending institution during any 1-year period shall

12 not exceed $1,000,000.

13 ‘‘(4) VIOLATIONS FOR WHICH A PENALTY MAY

14 BE IMPOSED.—A civil money penalty may be im15 posed for the late submission of a report, failure to

16 submit a report, submission of an illegible report,

17 submission of an erroneous report, or failure to sub18 mit a corrected report for a report that was illegible

19 or erroneous.

20 ‘‘(5) AGENCY PROCEDURES.—

21 ‘‘(A) ESTABLISHMENT.—The Secretary

22 shall establish standards and procedures gov23 erning the imposition of civil money penalties

24 under this section. These standards and proce25 dures—
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1 ‘‘(i) shall provide for the Secretary to

2 make the determination to impose the pen3 alty or to use an administrative entity

4 (such as the Mortgagee Review Board, es5 tablished pursuant to section 202(c) of the

6 National Housing Act) to make the deter7 mination;

8 ‘‘(ii) shall provide for the imposition

9 of a penalty only after the lending institu10 tion has been given an opportunity for a

11 hearing on the record; and

12 ‘‘(iii) may provide for review by the

13 Secretary of a determination or order, or

14 interlocutory ruling, arising from a hear15 ing.

16 ‘‘(B) FINAL ORDERS.—If a hearing is not

17 requested during the 15-day period beginning

18 on the date on which notice of opportunity for

19 hearing is received, the imposition of the pen20 alty shall constitute a final and unappealable

21 determination. If the Secretary reviews the de22 termination or order, the Secretary may affirm,

23 modify, or reverse that determination or order.

24 If the Secretary does not review the determina25 tion or order prior to the expiration of the 90-
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1 day period beginning on the date of the issu2 ance of the determination or order, the deter3 mination or order shall be final.

4 ‘‘(C) FACTORS IN DETERMINING AMOUNT

5 OF PENALTY.—In determining the amount of a

6 penalty under this subsection, consideration

7 shall be given to such factors as the gravity of

8 the offense, any history of prior offenses, ability

9 to pay the penalty, deterrence of future viola10 tions, and such other factors as the Secretary

11 may determine to be appropriate.

12 ‘‘(D) NO REVIEW OF IMPOSITION OF PEN13 ALTY.—Except as provided in this subsection,

14 the Secretary’s determination or order imposing

15 a penalty under this subsection shall not be

16 subject to review.

17 ‘‘(6) JUDICIAL REVIEW OF AGENCY DETER18 MINATION.—

19 ‘‘(A) IN GENERAL.—After exhausting all

20 administrative remedies established by the Sec21 retary under this subsection, a lending institu22 tion against which the Secretary has imposed a

23 civil money penalty under this subsection may

24 obtain a review of the penalty as may be ad25 dressed in the notice of determination to impose
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1 a penalty in the appropriate court of appeals of

2 the United States, by filing in such court, be3 fore the expiration of the 20-day period begin4 ning on the date of the entry of such order or

5 determination, a written petition praying that

6 the Secretary’s determination or order be modi7 fied or set aside in whole or in part.

8 ‘‘(B) OBJECTIONS NOT RAISED IN HEAR9 ING.—The court shall not consider any objec10 tion that was not raised in the hearing con11 ducted pursuant to this subsection unless a

12 demonstration is made of extraordinary cir13 cumstances causing the failure to raise the ob14 jection. If any party demonstrates to the satis15 faction of the court that additional evidence not

16 presented at the hearing is material and that

17 there were reasonable grounds for the failure to

18 present such evidence at the hearing, the court

19 shall remand the matter to the Secretary for

20 consideration of the additional evidence.

21 ‘‘(C) SCOPE OF REVIEW.—The decisions,

22 findings, and determinations of the Secretary

23 shall be reviewed pursuant to section 706 of

24 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, the Secretary may, after

10 the determination or order is no longer subject to re11 view as provided by this subsection, bring an action

12 in an appropriate United States district court to ob13 tain a monetary judgment against the lending insti14 tution. In any such 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 imposed under this subsection.

24 ‘‘(9) REGULATIONS.—The Secretary shall, by

25 interim rule published in the Federal Register, es-
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1 tablish such requirements as may be necessary to

2 carry out this subsection. The Secretary shall issue

3 final regulations based on the interim rule after no4 tice and an opportunity for public comment.

5 ‘‘(10) DEPOSIT OF PENALTIES IN UNITED

6 STATES TREASURY.—All civil money penalties col7 lected under this subsection shall be deposited in the

8 Miscellaneous Receipts Account of the United States

9 Treasury.’’.

10 SEC. 1009. YOUTHBUILD.

11 (a) IMPLEMENTATION GRANTS.—Section 454 of the

12 Cranston-Gonzalez National Affordable Housing Act (42

13 U.S.C. 12899c) is amended—

14 (1) in subsection (b)—

15 (A) in paragraph (2), by striking ‘‘Acquisi16 tion’’ and all that follows through ‘‘facilities’’

17 and inserting the following: ‘‘acquisition, reha18 bilitation, or acquisition and rehabilitation of

19 vacant or underutilized community facilities tar20 geted to serving the needs of low- and mod21 erate-income people, or the new construction of

22 community facilities targeted to serving the

23 needs of low- and moderate-income people;’’;

24 (B) by striking paragraph (6); and
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1 (C) by designating paragraphs (7) and (8)

2 as paragraphs (6) and (7), respectively; and

3 (2) by striking subsection (e) and inserting the

4 following:

5 ‘‘(e) PRIORITY FOR APPLICANTS WHO OBTAIN 10

6 PERCENT OF THEIR TOTAL BUDGET FROM OTHER

7 SOURCES.—In awarding grants under this section, the

8 Secretary shall give priority to applicants to the extent

9 that they have succeeded in obtaining not less than 10

10 percent of their total budget for the Youthbuild program

11 from Federal, State, local, or private sources other than

12 assistance provided under this subtitle.’’.

13 (b) ADDITIONAL PROGRAM REQUIREMENTS.—Sec14 tion 455(a) of the Cranston-Gonzalez National Affordable

15 Housing Act (42 U.S.C. 12899d(a)) is amended—

16 (1) in the material preceding paragraph (1), by

17 inserting ‘‘for costs such as construction, rehabilita18 tion, and acquisition’’ after ‘‘receiving assistance

19 under this subtitle’’; and

20 (2) in paragraph (1)(A)—

21 (A) by striking ‘‘90’’ and inserting ‘‘80’’;

22 and

23 (B) by striking ‘‘less than 60’’ and insert24 ing ‘‘that do not exceed 50’’.
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1 (c) MANAGEMENT AND TECHNICAL ASSISTANCE.—

2 Section 458 of the Cranston-Gonzalez National Affordable

3 Housing Act (42 U.S.C. 12899g) is amended—

4 (1) in subsection (d), by striking ‘‘(b) and (c)’’

5 and inserting ‘‘(a), (b), and (c)’’;

6 (2) by redesignating subsections (b) through (d)

7 as subsections (c) through (e), respectively; and

8 (3) by inserting after subsection (a) the follow9 ing new subsection:

10 ‘‘(b) DATA COLLECTION AND ANALYSIS.—The Sec11 retary shall collect and analyze information necessary to

12 assess the quality and effects of the Youthbuild Program,

13 and monitor Youthbuild programs receiving assistance

14 under this subtitle.’’.

15 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

16 402 of the Cranston-Gonzalez National Affordable Hous17 ing Act (42 U.S.C. 12870) is amended by striking sub18 section (b) and inserting the following:

19 ‘‘(b) YOUTHBUILD.—There are authorized to be ap20 propriated for activities authorized under subtitle D of

21 title IV $100,000,000 for fiscal year 1995, and

22 $100,000,000 for fiscal year 1996.’’.
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1 SEC. 1010. NEIGHBORHOOD REINVESTMENT CORPORA2 TION.

3 Section 608(a)(1) of the Neighborhood Reinvestment

4 Corporation Act (42 U.S.C. 8107(a)(1)) is amended by

5 striking the first sentence and inserting the following:

6 ‘‘There are authorized to be appropriated to the corpora7 tion to carry out this title $38,667,000 for fiscal year

8 1995 and $38,667,000 for fiscal year 1996.’’.

9 SEC. 1011. HUD SALARIES AND EXPENSES.

10 Section 7(s)(1) of the Department of Housing and

11 Urban Development Act (42 U.S.C. 3535(s)(1)) is amend12 ed to read as follows:

13 ‘‘(s)(1) Notwithstanding any other provision of law,

14 there is authorized to be appropriated for salaries and ex15 penses to carry out the purposes of this section

16 $1,000,773,000 for fiscal year 1995 and $1,011,618,000

17 for fiscal year 1996.’’.

18 SEC. 1012. SECTION 23 PROJECT CONVERSION.

19 (a) AUTHORIZATION.—Notwithstanding the terms of

20 contracts entered into pursuant to section 14(b)(2) of the

21 United States Housing Act of 1937, the Secretary is au22 thorized to enter into obligations to convert any assistance

23 contract from a leased housing contract under section 23

24 of such Act to a project-based assistance contract under

25 section 8 of such Act.
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1 (b) LIMITATION.—The authorization set forth in sub2 section (a) is conditioned on the repayment to the Sec3 retary of all amounts received by the public housing agen4 cy under the comprehensive improvement assistance pro5 gram under section 14 of the United States Housing Act

6 of 1937 for any project for which assistance will be con7 verted subject to this section and the amounts, as deter8 mined by the Secretary, received by the public housing

9 agency under the formula in section 14(k) of such Act by

10 reason of such project.

11 SEC. 1013. CIVIL MONEY PENALTIES FOR IMPROPER PAR12 TICIPATION IN THE ORIGINATION OF TITLE I

13 LOANS.

14 (a) AMENDMENT.—Section 2(b)(7) of the National

15 Housing Act (12 U.S.C. 1703(b)(7)) is amended to read

16 as follows:

17 ‘‘(7) CIVIL MONEY PENALTIES.—With respect

18 to the financing of alterations, repairs, and improve19 ments upon or in connection with existing structures

20 or manufactured homes, the building of new struc21 tures, or the purchase of manufactured homes or

22 lots, as authorized under the first sentence of section

23 2(a), any dealer or loan correspondent (as such

24 terms are defined by the Secretary) that knowingly

25 (as defined in section 536(g)) and materially—
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1 ‘‘(A) submits false information; or

2 ‘‘(B) fails to submit information required

3 to be submitted to any financial institution or

4 to the Secretary;

5 shall be subject to a civil money penalty in the

6 amount and manner provided under section 536

7 with respect to mortgagees and lenders.’’.

8 (b) APPLICABILITY OF AMENDMENT.—The amend9 ment made by subsection (a) shall apply only with respect

10 to—

11 (1) violations that occur on or after the date of

12 enactment of this Act; and

13 (2) in the case of a continuing violation (as de14 termined by the Secretary), any portion of the viola15 tion that occurs on or after such date of enactment.

16 SEC. 1014. PUBLIC FACILITIES LOAN.

17 The Secretary shall cancel the indebtedness of Lock18 port Township, Illinois, relating to the public facilities loan

19 for Project No. ILL–11–PFLO112. Lockport Township,

20 Illinois, is hereby relieved of all liability to the Federal

21 Government for the outstanding principal balance on such

22 loan, the amount of accrued interest on such loan, and

23 any other fees and charges payable in connection with

24 such loan.
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1 SEC. 1015. NATIONAL COMMISSION ON THE FUTURE OF

2 THE FEDERAL HOUSING ADMINISTRATION.

3 (a) PURPOSE.—The purpose of this section is to es4 tablish a national commission which shall develop rec5 ommendations on—

6 (1) the appropriate future role of the Federal

7 Government in providing mortgage insurance;

8 (2) modernizing and improving the structure

9 and operations of the FHA;

10 (3) protecting the safety and soundness of the

11 insurance funds of the FHA; and

12 (4) increasing service to families currently un13 derserved by the mortgage finance system.

14 (b) ESTABLISHMENT.—There is hereby established a

15 commission to be known as the National Commission on

16 the Future of the Federal Housing Administration.

17 (c) MEMBERSHIP.—

18 (1) IN GENERAL.—The Commission shall con19 sist of the Secretary and 18 additional members,

20 who shall be appointed not later than 60 days after

21 amounts to carry out this section are made available

22 under subsection (h), in accordance with the follow23 ing:

24 (A) Four members shall be appointed by

25 the Chairman of the Committee on Banking,

26 Housing, and Urban Affairs of the Senate and
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1 4 members shall be appointed by the Ranking

2 Minority Member of such Committee.

3 (B) Four members shall be appointed by

4 the Chairman of the Committee on Banking,

5 Finance and Urban Affairs of the House of

6 Representatives and 4 members shall be ap7 pointed by the Ranking Minority Member of

8 such Committee.

9 (C) Two members shall be appointed by

10 the Secretary.

11 (2) QUALIFICATIONS.—The 8 members of the

12 Commission appointed under subparagraphs (A) and

13 (B) of paragraph (1) shall include—

14 (A) 1 individual who represents the mort15 gage finance industry;

16 (B) 1 individual with knowledge and exper17 tise from a secondary mortgage market entity;

18 (C) 1 individual with knowledge and expe19 rience concerning home sales or single family

20 asset management;

21 (D) 1 individual who represents the private

22 mortgage insurance industry;

23 (E) 1 individual with knowledge and expe24 rience concerning multifamily housing asset

25 management;
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1 (F) 1 individual who represents a State or

2 local housing agency active in single family or

3 multifamily housing activities;

4 (G) 1 individual who represents the inter5 ests of low-income homeowners, tenants, or

6 residents of urban or rural neighborhoods; and

7 (H) 1 individual who resides in an urban

8 or rural community whose residents are under9 served by the conventional housing finance sys10 tem.

11 (3) CHAIRPERSON.—The Secretary shall select

12 a chairperson from among members of the Commis13 sion.

14 (4) QUORUM.—A majority of the members of

15 the Commission shall constitute a quorum for the

16 transaction of business.

17 (5) VOTING.—Each member of the Commission

18 shall be entitled to 1 vote, and all votes shall be

19 given equal weight.

20 (6) VACANCIES.—Any vacancy on the Commis21 sion shall not affect the powers of the Commission

22 and shall be filled in the manner in which the origi23 nal appointment was made.

24 (7) PROHIBITION ON ADDITIONAL PAY.—Mem25 bers of the Commission shall serve without com-
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1 pensation, but shall be reimbursed for travel, sub2 sistence, and other necessary expenses incurred in

3 the performance of their duties as members of the

4 Commission.

5 (d) SUBCOMMITTEES.—In carrying out its duties

6 under subsection (e), the Commission shall establish 2

7 subcommittees, 1 of which shall carry out such duties with

8 respect to issues relating to mortgage insurance for multi9 family housing and 1 of which shall carry out such duties

10 with respect to issues relating to mortgage insurance for

11 single family housing

12 (e) DUTIES.—

13 (1) IN GENERAL.—The Commission shall con14 duct a study of the existing operations of the FHA

15 and shall make recommendations regarding the fu16 ture mission, organization, responsibilities, and func17 tions of the FHA. In conducting the study and for18 mulating recommendations, the Commission shall—

19 (A) determine the most appropriate role

20 for the Federal Government in extending the

21 availability of mortgage credit and review var22 ious alternative mortgage products and, with

23 regard to the mission and functions of the

24 FHA, the appropriateness of the use of such

25 products by the FHA;
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1 (B) determine whom FHA programs are

2 intended to serve;

3 (C) consider the appropriate relationship

4 between the FHA and the Government National

5 Mortgage Association, and private mortgage in6 surance and the Government-sponsored enter7 prises;

8 (D) compare and contrast the FHA with

9 the private marketplace with respect to the

10 quality, price, and variety of mortgages instru11 ments made available to consumers;

12 (E) consider the impact of the FHA on the

13 development of new mortgage products;

14 (F) consider whether the FHA could func15 tion more effectively if organized as a Govern16 ment corporation, a Government-sponsored en17 terprise, or with any other organizational struc18 ture different from the existing structure;

19 (G) consider whether the personnel, pro20 curement, budgeting, and other requirements

21 generally applicable to the Federal agencies

22 should be modified in their applicability to the

23 FHA;

24 (H) review the laws establishing and relat25 ing to the FHA and determine whether amend-
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1 ment to such law would be appropriate to re2 structure the FHA, or to provide new authority

3 or increased flexibility for the operations of the

4 FHA;

5 (I) determine ways in which the FHA can

6 more effectively contribute to the revitalization

7 of inner-cities and increase housing opportuni8 ties for low-income families;

9 (J) determine ways to improve the man10 agement and sale of assets owned by the FHA;

11 (K) determine ways to reduce the risk of

12 future insurance losses from the existing inven13 tory of outstanding mortgages insured by the

14 FHA; and

15 (L) determine ways to improve the private

16 management of multifamily properties insured

17 by the FHA.

18 (2) REPORT.—Not later 12 months after the

19 date on which all members of the Commission are

20 appointed under subsection (c), the Commission

21 shall submit to the Secretary and to the Congress a

22 report containing—

23 (A) the information and evaluations speci24 fied in paragraph (1); and
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1 (B) specific recommendations for legisla2 tive and administrative actions to carry out the

3 determinations made pursuant to paragraph

4 (1).

5 (f) POWERS.—

6 (1) HEARINGS.—The Commission may, for the

7 purpose of carrying out this section, hold such hear8 ings and sit and act at such times and places as the

9 Commission considers appropriate.

10 (2) RULES AND REGULATIONS.—The Commis11 sion may adopt such rules and regulations as may

12 be necessary to establish its procedures and to gov13 ern the manner of its operations, organization, and

14 personnel.

15 (3) ASSISTANCE FROM FEDERAL AGENCIES.—

16 (A) INFORMATION.—The Commission may

17 secure directly from any department or agency

18 of the United States such data and information

19 as the Commission may require for the purpose

20 of carrying out this section. Upon request of

21 the Commission, any such department or agen22 cy shall furnish such data or information. The

23 Commission may acquire data or information

24 directly from such departments or agencies to
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1 the same extent that the Secretary may acquire

2 such data or information.

3 (B) ADMINISTRATIVE SUPPORT.—The

4 General Services Administration shall provide to

5 the Commission, on a reimbursable basis, ad6 ministrative support services requested by the

7 Commission.

8 (C) PERSONNEL DETAILS.—Upon the re9 quest of the chairperson of the Commission, the

10 Secretary shall, to the extent possible and sub11 ject to the discretion of the Secretary, detail

12 any of the personnel of the Department of

13 Housing and Urban Development, on a

14 nonreimbursable basis, to assist the Commis15 sion in carrying out its duties under this sec16 tion.

17 (4) MAILS.—The Commission may use the

18 United States mails in the same manner and under

19 the same conditions as other Federal agencies.

20 (5) CONTRACTING.—The Commission may, to

21 such extent and in such amounts as are provided in

22 appropriations Acts, enter into contracts necessary

23 to carry out its duties under this section.
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1 (6) ADVISORY COMMITTEE.—The Commission

2 shall be considered an advisory committee within the

3 meaning of the Federal Advisory Committee Act.

4 (7) STAFF.—

5 (A) EXECUTIVE DIRECTOR.—The Commis6 sion shall appoint an executive director of the

7 Commission who shall be compensated at a rate

8 fixed by the Commission, but which may not ex9 ceed the rate established for level V of the Ex10 ecutive Schedule under title 5, United States

11 Code.

12 (B) PERSONNEL.—In addition to the exec13 utive director, the Commission may appoint and

14 fix the compensation of such personnel as the

15 Commission considers appropriate, in accord16 ance with the provisions of title 5, United

17 States Code, governing appointments in the

18 competitive service, and the provisions of chap19 ter 51 and subchapter III of chapter 53 of such

20 title, relating to classification and General

21 Schedule pay rates.

22 (C) LIMITATION.—This paragraph shall be

23 effective only to the extent that amounts are

24 made available in appropriations Acts.

25 (g) DEFINITIONS.—For purposes of this section—
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1 (1) the term ‘‘Commission’’ means the National

2 Commission on the Future of the Federal Housing

3 Administration established under this section; and

4 (2) the term ‘‘FHA’’ means the Federal Hous5 ing Administration of the Department of Housing

6 and Urban Development.

7 (h) FUNDING.—Of any amounts appropriated pursu8 ant to section 501 of the Housing and Urban Development

9 Act of 1970, the Secretary shall set aside to carry out

10 this section $1,000,000 for fiscal year 1995. Any amounts

11 made available pursuant to this subsection shall remain

12 available until expended.

13 (i) SUNSET.—The Commission shall terminate 12

14 months after the date on which all of the members of the

15 Commission are appointed under subsection (c).

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