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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2281 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 517

103d CONGRESS

  2d Session

                                S. 2281

                          [Report No. 103-307]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                July 13 (legislative day, July 11), 1994

                 Read twice and placed on the calendar

                                                       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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing Choice and 
Community Investment Act of 1994''.
    (b) Table of Contents.--The table of contents for 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.
                   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.
                 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

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.
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.

SEC. 2. DEFINITION.

    For purposes of this Act, the term ``Secretary'' means the 
Secretary of Housing and Urban Development.

                  TITLE I--ASSISTANCE FOR THE HOMELESS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Stewart B. McKinney Homeless 
Housing Assistance Reorganization Act of 1994''.

SEC. 102. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) more Americans are homeless than at any time since the 
        Great Depression;
            (2) homeless populations in different parts of the country 
        require different types of services to meet their needs;
            (3) the different needs within the homeless population 
        argue for a comprehensive approach to Federal homeless housing 
        assistance that provides outreach and assessment, emergency 
        shelter, multiple services, transitional housing, and permanent 
        housing; and
            (4) the separate Federal programs designed to solve 
        specific homeless problems have different distribution 
        mechanisms, rules, and reporting requirements, that--
                    (A) exceed the resources available to the 
                Department of Housing and Urban Development, State 
                governments, local governments, and not-for-profit 
                homeless providers;
                    (B) restrict the flexibility of communities to 
                fashion comprehensive homeless systems that meet the 
                needs of homeless persons in their areas;
                    (C) result in unpredictable funding streams that 
                hinder the ability of communities and service providers 
                to plan, develop, and implement comprehensive systems 
                to assist homeless individuals and families; and
                    (D) impede the integration and coordination of 
                Federal, State, and local government and private for-
                profit and not-for-profit resources available within a 
                community.
    (b) Purposes.--The purposes of this title are--
            (1) to reorganize the homeless housing assistance 
        authorities under the Stewart B. McKinney Homeless Assistance 
        Act;
            (2) to assist States and localities, in partnership with 
        private nonprofit service providers, to use homeless funding 
        more efficiently and effectively;
            (3) to simplify and make more flexible the provision of 
        Federal homeless assistance;
            (4) to maximize a community's ability to implement a 
        coordinated, comprehensive system for providing assistance to 
        homeless families and individuals;
            (5) to make more efficient and equitable the manner in 
        which the Secretary distributes homeless assistance;
            (6) to reduce the burden on the Secretary's staff in 
        managing numerous programs and grant competitions;
            (7) to reduce the costs to States, units of general local 
        government, and private nonprofit organizations in applying for 
        and using assistance; and
            (8) to advance the goal of meeting the needs of the 
        homeless population through the mainstream programs for 
        permanent housing as the Federal resources supporting these 
        programs become available.

SEC. 103. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Comprehensive homeless assistance system.--A 
        ``comprehensive homeless assistance system'' includes--
                    (A) a system of outreach and assessment for--
                            (i) determining whether an individual or 
                        family is homeless, or whether assistance is 
                        necessary to prevent an individual or family 
                        from becoming homeless; and
                            (ii) ensuring that individuals and families 
                        that are so identified under clause (i) receive 
                        appropriate housing and supportive services, 
                        including assistance required to prevent 
                        homelessness;
                    (B) emergency shelters with appropriate supportive 
                services to help ensure that homeless individuals and 
                families receive adequate shelter;
                    (C) transitional housing with appropriate 
                supportive services to help ensure that homeless 
                individuals and families are prepared to make the 
                transition to increased responsibility and permanent 
                housing;
                    (D) permanent housing, or permanent supportive 
                housing, to help meet the long-term housing needs of 
                homeless individuals and families;
                    (E) coordination between assistance provided under 
                this title and assistance provided under other Federal, 
                State, and local programs that may be used to assist 
                homeless individuals and families, including programs 
                administered by the Department of Veterans Affairs, the 
                Department of Labor, the Department of Health and Human 
                Services, and the Department of Education; and
                    (F) a system of referrals for subpopulations of the 
                homeless (including homeless veterans) to the 
                appropriate agencies, programs, or services (including 
                health care, job training, and income support) 
                necessary to meet their needs.
            (2) Allocation unit of general local government.--The term 
        ``allocation unit of general local government'' means a 
        metropolitan city or an urban county.
            (3) Metropolitan city.--The term ``metropolitan city'' has 
        the same meaning as in section 102(a)(4) of the Housing and 
        Community Development Act of 1974.
            (4) Urban county.--The term ``urban county'' has the same 
        meaning as in section 102(a)(6) of the Housing and Community 
        Development Act of 1974.
            (5) Unit of general local government.--
                    (A) In general.--The term ``unit of general local 
                government'' means--
                            (i) a city, town, township, county, parish, 
                        village, or other general purpose political 
                        subdivision of a State;
                            (ii) the District of Columbia; and
                            (iii) any agency or instrumentality thereof 
                        that is established pursuant to legislation and 
                        designated by the chief executive to act on 
                        behalf of the jurisdiction with regard to 
                        provisions of this title.
                    (B) Consortia.--The term ``unit of general local 
                government'' may include a consortium of geographically 
                contiguous units of general local government if the 
                Secretary determines that the consortium--
                            (i) has sufficient authority and 
                        administrative capability to carry out the 
                        purposes of this title on behalf of its member 
                        jurisdictions; and
                            (ii) will, according to a written 
                        certification by the State (or States, if the 
                        consortium includes jurisdictions in more than 
                        1 State), direct its activities to the 
                        alleviation of problems of homeless individuals 
                        or families within the State or States.
            (6) Indian tribe.--The term ``Indian tribe'' has the same 
        meaning as in section 102(a) of the Housing and Community 
        Development Act of 1974.
            (7) Insular area.--The term ``Insular Area'' means the 
        Virgin Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
            (8) State.--The term ``State'' means each of the several 
        States and the Commonwealth of Puerto Rico. Such term includes 
        an agency or instrumentality of a State that is established 
        pursuant to legislation and designated by the chief executive 
        to act on behalf of the jurisdiction with regard to provisions 
        of this title.
            (9) Private nonprofit organization.--The term ``private 
        nonprofit organization'' means an organization--
                    (A) no part of the net earnings of which inures to 
                the benefit of any member, founder, contributor, or 
                individual;
                    (B) that has a voluntary board;
                    (C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    (D) that practices nondiscrimination in the 
                provision of assistance.
            (10) Homeless individual.--The term ``homeless individual'' 
        has the same meaning as in section 103 of the Stewart B. 
        McKinney Homeless Assistance Act.
            (11) Homeless family.--The term ``homeless family'' means a 
        group of one or more related individuals who are homeless 
        individuals.
            (12) Applicant.--The term ``applicant'' means a grantee 
        submitting an application under section 105.
            (13) Recipient.--The term ``recipient'' means a grantee and 
        a State recipient.
            (14) State recipient.--The term ``State recipient'' means--
                    (A) a unit of general local government within the 
                State (other than an allocation unit of general local 
                government) receiving grant amounts from the State 
                under section 109(c)(3); and
                    (B) a public agency or a private nonprofit 
                organization receiving grant amounts from the State 
                under section 109(c)(3).
            (15) Grantee.--The term ``grantee'' means--
                    (A) an allocation unit of general local government, 
                Indian tribe, or Insular Area that administers a grant 
                under section 109(a)(1);
                    (B) a public agency or a private nonprofit 
                organization (or a consortium of such organizations) 
                designated by an allocation unit of general local 
                government, Indian tribe, or Insular Area to administer 
                grant amounts under section 109(a)(2);
                    (C) a State or a private nonprofit organization 
                designated by the Secretary to administer grant amounts 
                under section 109(a)(3);
                    (D) a State administering a grant under section 
                109(c)(1)(A);
                    (E) a unit of general local government designated 
                by the Secretary to administer a grant under section 
                109(c)(4);
                    (F) a public agency or private nonprofit 
                organization (a consortium of such organizations) 
                designated by a unit of general local government to 
                administer a grant from the Secretary under section 
                109(c)(4); or
                    (G) a private nonprofit organization receiving a 
                grant from the Secretary under section 109(c)(4).

SEC. 104. AUTHORIZATIONS.

    (a) In General.--The Secretary may make grants under this title to 
carry out activities to assist homeless individuals and families in 
support of comprehensive homeless assistance systems, in accordance 
with the provisions of this title.
    (b) Funding Amounts.--There are authorized to be appropriated to 
carry out this title $1,250,000,000 for fiscal year 1996. Any amounts 
appropriated shall remain available until expended.

SEC. 105. APPLICATION.

    (a) In General.--Each applicant shall submit the application 
required under this section in a form and in accordance with such 
procedures as the Secretary shall prescribe.
    (b) Homeless Assistance Strategy.--
            (1) In general.--The local board established for each 
        recipient under section 110(c) or the State advisory board 
        established under section 110(d) shall prepare a homeless 
        assistance strategy for inclusion in the comprehensive housing 
        affordability strategy required under section 105 of the 
        Cranston-Gonzalez National Affordable Housing Act.
            (2) Consistency requirement.--The chief executive officer 
        of the State, allocation unit of general local government, 
        Indian tribe, or Insular Area shall ensure that the homeless 
        assistance strategy is consistent with the other elements of 
        the comprehensive housing affordability strategy.
            (3) Local board comments.--To the extent that the chief 
        executive officer of the recipient alters the homeless 
        assistance strategy prepared by the State advisory board or 
        local board, the comments of the State advisory board or local 
        board on those changes shall be included in the application.
    (c) Additional Requirements for Allocation Units of General Local 
Government, Indian Tribes, and Insular Areas.--
            (1) In general.--The homeless assistance strategy prepared 
        by allocation units of general local government, Indian tribes, 
        and Insular Areas shall--
                    (A) include a description of the comprehensive 
                homeless assistance system to be established and 
                maintained within the jurisdiction; and
                    (B) meet the requirements established under section 
                105(b)(2) of the Cranston-Gonzalez National Affordable 
                Housing Act and paragraph (2) of this subsection.
            (2) Additional requirements for homeless assistance 
        strategy.--Each homeless assistance strategy described in 
        paragraph (1) shall also contain--
                    (A) a description of current facilities and 
                services designed to assist homeless individuals and 
                families and an assessment of what is required to 
                establish and maintain a comprehensive homeless 
                assistance system;
                    (B) a multiyear strategy for establishing and 
                maintaining the comprehensive homeless assistance 
                system, including appropriate timetables and budget 
                estimates for accomplishing each element of the 
                strategy;
                    (C) a 1-year action plan, identifying all 
                activities to be carried out with assistance under this 
                title and describing how these activities will further 
                the strategy;
                    (D) a description of efforts to address the 
                problems faced by each of the different subpopulations 
                of the homeless, especially those of homeless veterans;
                    (E) a certification or other evidence of financial 
                commitments and other resources for meeting the 
                requirements of subsections (a) and (b) of section 107; 
                and
                    (F) a certification that the applicant will comply 
                with the requirements of this title and other 
                applicable laws.
    (d) Additional Requirements for States.--The homeless assistance 
strategy prepared by a State advisory board shall meet the requirements 
established under section 105(b)(2) of the Cranston-Gonzalez National 
Affordable Housing Act and shall also include--
            (1) a multiyear strategy for establishing and maintaining 
        comprehensive homeless assistance systems throughout the State, 
        including the actions the State will take to achieve the goals 
        set out in the strategy;
            (2) a 1-year action plan identifying the criteria that the 
        State will use in distributing amounts awarded under this 
        title, the method of distribution, and the relationship of the 
        method of distribution to the homeless assistance strategy;
            (3) a description of how the strategy will address the 
        problems of different subpopulations of the homeless, 
        especially those of homeless veterans;
            (4) a certification or other evidence of financial 
        commitments and other resources, for meeting the requirements 
        under subsections (a) and (b) of section 107 and assurances 
        satisfactory to the Secretary that State recipients will also 
        meet these requirements; and
            (5) a certification that the State and State recipients 
        will comply with the requirements of this title and other 
        applicable laws.

SEC. 106. ELIGIBLE ACTIVITIES.

    Recipients may carry out the following activities with grants 
received under this title:
            (1) Outreach and assessment.--Outreach and assessment 
        activities designed to inform eligible individuals and families 
        about availability of services and encourage the use of these 
        services.
            (2) Prevention.--Efforts to prevent homelessness, including 
        financial assistance to an individual or family that has 
        received an eviction notice, notice of mortgage foreclosure, or 
        notice of termination of utility services, if--
                    (A) the individual or family cannot make the 
                required payments due to a sudden reduction of income 
                or other financial emergency;
                    (B) the assistance is necessary to avoid the 
                eviction, foreclosure, or termination of services; and
                    (C) there is a reasonable prospect that the 
                individual or family will be able to resume payments 
                within a reasonable period of time.
            (3) Emergency housing.--The provision of short-term 
        emergency lodging in motels or shelters, either directly or 
        indirectly through vouchers.
            (4) Acquisition, construction, or renovation.--The 
        renovation, acquisition (and the costs associated with the 
        acquisition of Federal inventory property to house homeless 
        families), rehabilitation, new construction, or conversion of 
        buildings to be used for the provision of services to the 
        homeless.
            (5) Leasing.--Leasing of an existing structure or 
        structures, or units within these structures, including the 
        provision of long-term rental assistance contracts.
            (6) Operating costs.--Operating costs including salaries 
        and benefits, maintenance, insurance, utilities, and 
        furnishings.
            (7) Tenant assistance.--The provision of security or 
        utility deposits, rent or utility payments for the first month 
        of residence at a new location, and relocation assistance.
            (8) Supportive services.--The provision of essential 
        supportive services, including case management, housing 
        counseling, job training and placement, primary health care, 
        mental health services, substance abuse treatment, child care, 
        transportation, emergency food and clothing, family violence 
        services, education services, moving assistance, and referrals 
        to veterans services and legal services, except that not more 
        than 30 percent of the aggregate amount of all assistance to a 
        State, unit of general local government, or Indian tribe under 
        this title may be used for activities under this paragraph.
            (9) Costs of administration.--The cost of administration, 
        which may include the planning, development, and establishment, 
        of a program under this title, the cost of constituting and 
        operating the local board referred to in section 110(c), and 
        the cost of administering the program, except that not more 
        than 5 percent of any amounts provided to a recipient under 
        this title for a fiscal year may be used for activities under 
        this paragraph.
            (10) Capacity building.--Building the capacity of private 
        nonprofit organizations to participate in the comprehensive 
        homeless assistance system of the recipient, except that not 
        more than 2 percent of any amounts provided to a recipient 
        under this title for a fiscal year may be used for activities 
        under this paragraph.
            (11) Other activities.--Other activities that further the 
        purposes of this title, as determined by the Secretary.

SEC. 107. MATCHING REQUIREMENT AND MAINTENANCE OF EFFORT.

    (a) Matching Requirement.--
            (1) In general.--Each recipient under this title shall 
        ensure that contributions totaling not less than 25 percent of 
        the amounts made available to the recipient for any fiscal year 
        to carry out the homeless assistance program of the recipient 
        are from non-Federal sources. At the end of each program year, 
        each recipient shall certify to the Secretary that it has 
        complied with this section, and shall include with the 
        certification a description of the sources and amounts of the 
        matching funds.
            (2) Reduction in matching requirement.--
                    (A) In general.--The Secretary shall reduce the 
                matching requirement under paragraph (1) during a 
                fiscal year by--
                            (i) 50 percent for a jurisdiction that 
                        certifies that it is in fiscal distress; and
                            (ii) 100 percent for a jurisdiction that 
                        certifies that it is in severe fiscal distress.
                    (B) Definitions.--For the purposes of this 
                subsection--
                            (i) the term ``fiscal distress'' means an 
                        allocation unit of general local government, 
                        Indian tribe, or Insular Area that satisfies 
                        one of the distress criteria set forth in 
                        subparagraph (C); and
                            (ii) the term ``severe fiscal distress'' 
                        means an allocation unit of general local 
                        government, Indian tribe, or Insular Area that 
                        satisfies both of the distress criteria set 
                        forth in subparagraph (C).
                    (C) Distress criteria.--For an allocation unit of 
                general local government, an Indian tribe, or an 
                Insular Area certifying that it is distressed, the 
                following criteria shall apply:
                            (i) Poverty rate.--The average poverty rate 
                        in the jurisdiction for the calendar year 
                        immediately preceding the year in which its 
                        fiscal year begins was equal to or greater than 
                        125 percent of the average national poverty 
                        rate during such calendar year (as determined 
                        according to information of the Bureau of the 
                        Census).
                            (ii) Per capita income.--The average per 
                        capita income in the jurisdiction for the 
                        calendar year immediately preceding the year in 
                        which its fiscal year begins was less than 75 
                        percent of the average national per capita 
                        income during such calendar year (as determined 
                        according to information of the Bureau of the 
                        Census).
                    (D) States.--In determining the degree to which a 
                State is in fiscal distress or severe fiscal distress, 
                the Secretary shall use the same procedure used in 
                accordance with section 220(d)(4) of the Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                12750).
                    (E) Waiver in disaster areas.--If a recipient 
                (other than a State) is located in an area in which a 
                declaration of a disaster pursuant to the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                is in effect for any part of a fiscal year, the 
                Secretary may reduce the matching requirement for that 
                fiscal year under paragraph (1) during that fiscal year 
                by not more than 100 percent.
            (3) Calculation of amounts.--In calculating the amount of 
        matching funds required under paragraph (1), a recipient may 
        include--
                    (A) any funds derived from a non-Federal source;
                    (B) the value of any lease on a building;
                    (C) any salary paid to staff to carry out the 
                program of the recipient;
                    (D) the value of the time and services contributed 
                by volunteers, at a rate determined by the Secretary; 
                and
                    (E) the proceeds from bond financing validly issued 
                by a State or unit of general local government, agency, 
                or instrumentality thereof, or political subdivision 
                thereof, and repayable with revenues derived from a 
                project assisted under this title, but not more than 25 
                percent of the contribution required under paragraph 
                (1) may be derived from this source.
    (b) Limitation on Use of Funds.--No assistance received under this 
title may be used to replace other funds previously used, or designated 
for use, by the State, State recipient, allocation unit of general 
local government, Indian tribe, or Insular Area to assist homeless 
individuals and families.

SEC. 108. ALLOCATION AND DISTRIBUTION OF FUNDS.

    (a) Indian Tribes and Insular Areas.--
            (1) Allocation.--For each fiscal year, the Secretary shall 
        allocate assistance under this title--
                    (A) to Indian tribes, in an amount equal to 1.0 
                percent of the total appropriation under this title; 
                and
                    (B) to Insular Areas, in an amount equal to 0.20 
                percent of the total appropriation under this title.
            (2) Distribution.--The Secretary shall provide for the 
        distribution of amounts reserved under this subsection for 
        Indian tribes and Insular Areas pursuant to specific criteria 
        or a distribution which shall be contained in a regulation 
        issued by the Secretary.
    (b) States and Allocation Units of General Local Government.--
            (1) In general.--For each fiscal year, of the amounts that 
        remain after amounts are reserved for Indian tribes and Insular 
        Areas under subsection (a), and for activities under subsection 
        (e), the Secretary shall allocate assistance according to the 
        formula described in paragraph (2).
            (2) Formula.--
                    (A) Allocation.--The Secretary shall allocate 
                amounts for allocation units of general local 
                government and States in a manner that ensures that the 
                percentage of the total amount available under this 
                title for any fiscal year for any State or allocation 
                unit of general local government is equal to the 
                percentage of the total amount available for section 
                106 of the Housing and Community Development Act of 
                1974 for such prior fiscal year that is allocated for 
                such State or allocation unit of general local 
                government.
                    (B) Reallocation.--If under the allocation 
                provisions applicable under this title, any allocation 
                unit of general local government would receive a grant 
                of less than 0.05 percent of the amounts appropriated 
                to carry out this title for any fiscal year, such 
                amount shall instead be reallocated to the State in 
                which such allocation unit of general local government 
                is located for use under section 109(c).
                    (C) Pro rata increases and decreases.--
                            (i) Increase.--All amounts allocated 
                        pursuant to the preceding subparagraphs for 
                        allocation units of general local government 
                        shall be increased on a pro rata basis until 
                        the aggregate of such amounts equals 75 percent 
                        of the amounts appropriated under this title 
                        for each year.
                            (ii) Decrease.--All amounts allocated 
                        pursuant to the preceding subparagraphs for 
                        States shall be decreased on a pro rata basis 
                        until the aggregate of such amounts equals 25 
                        percent of the amounts appropriated under this 
                        title for each year.
            (3) Minimum grant amount.--Notwithstanding the provisions 
        of paragraph (2), a State or allocation unit of general local 
        government shall receive no less funding for homeless 
        assistance distributed under a formula in 1996 than the average 
        of the amounts awarded annually to that jurisdiction from funds 
        appropriated for homeless assistance programs administered by 
        the Secretary during fiscal years 1987 through 1993.
    (c) Reallocations.--Any amounts that a State or an allocation unit 
of general local government is eligible to receive under subsection (b) 
that are not received for use in the jurisdiction, as provided by 
subsections (a) and (b) of section 109, or that become available as a 
result of actions under section 111(b), shall be added to amounts 
available for allocation under section 108 for the succeeding fiscal 
year.
    (d) Insufficient Appropriations.--
            (1) Competition.--If the amounts appropriated under section 
        104(b) for any fiscal year are less than 50 percent of the 
        amount authorized to be appropriated under that subsection for 
        that year, the Secretary shall distribute the amounts 
        appropriated to States, units of general local government, 
        Indian tribes, Insular Areas, and private nonprofit 
        organizations on the basis of a competition.
            (2) Criteria for awarding grants.--The criteria for 
        awarding grants under paragraph (1) shall include--
                    (A) the extent to which there is a need for 
                assistance for homeless individuals and families in the 
                jurisdiction;
                    (B) the extent to which the proposed activities 
                further the establishment and maintenance of a 
                comprehensive homeless assistance system;
                    (C) the extent to which private nonprofit 
                organizations providing assistance to homeless 
                individuals and families in the jurisdiction have been, 
                and will be, included in planning for the receipt of 
                assistance under this title, and the execution of the 
                proposed activities;
                    (D) the capacity of the applicant to develop and 
                operate a project;
                    (E) the need for the type of project proposed by 
                the applicant in the area to be served;
                    (F) the extent to which the amount of assistance to 
                be provided under this title will be supplemented with 
                resources from other public and private sources;
                    (G) the extent to which the applicant has 
                demonstrated coordination with other Federal, State, 
                local, private and other entities serving homeless 
                persons in the planning and operation of the project; 
                and
                    (H) such other criteria as the Secretary deems 
                appropriate to further the purposes of this paragraph 
                and this title.
    (e) Technical Assistance and Demonstration Authority.--
            (1) Authorization.--The Secretary may make grants under 
        this subsection to--
                    (A) demonstrate innovative methods of creating 
                comprehensive homeless assistance systems, including 
                the coordination of efforts with other levels of 
                government and other service providers and the filling 
                of gaps in available services and resources; and
                    (B) provide technical assistance, training, startup 
                funds, and other program funds (consistent with the 
                eligible activities set forth in section 106) to 
                support the creation of comprehensive homeless 
                assistance systems and to build nonprofit provider 
                capacity in support of such systems.
            (2) Selection criteria.--The Secretary shall establish 
        criteria for awarding grants under subsection (e)(1)(A), which 
        shall include--
                    (A) the extent of homelessness in the jurisdiction;
                    (B) the extent to which the existing public and 
                private systems for homelessness prevention, outreach, 
                assessment, shelter, services, transitional services, 
                transitional housing, and permanent housing available 
                within the jurisdiction would benefit from additional 
                resources to achieve a comprehensive approach to 
                meeting the needs of individuals and families who are 
                homeless or who are very low-income and at risk of 
                homelessness;
                    (C) the demonstrated commitment and capacity of the 
                jurisdiction to work cooperatively with the Secretary, 
                nonprofit organizations, foundations, other private 
                entities, and the community to design and implement an 
                initiative to achieve the purposes of this subsection;
                    (D) the demonstrated commitment of nongovernmental 
                organizations to commit financial and other resources 
                to a comprehensive homeless assistance system in the 
                jurisdiction;
                    (E) the commitment of the jurisdiction to make 
                necessary changes in policy and procedure to provide 
                flexibility and resources to implement and sustain the 
                initiative;
                    (F) geographic diversity in the distribution of 
                grants; and
                    (G) such other factors as the Secretary determines 
                to be appropriate.
            (3) Use of appropriated funds.--The Secretary may use not 
        more than $50,000,000 of the amounts appropriated to carry out 
        subsection (e)(1)(A) in fiscal year 1996. The Secretary may use 
        not more than $25,000,000 to carry out subsection (e)(1)(B) in 
        fiscal year 1996. The total amount provided to a single grant 
        recipient under subsection (e)(1)(A) may not exceed $5,000,000 
        in any fiscal year.

SEC. 109. ADMINISTRATION OF PROGRAM.

    (a) In General.--The Secretary shall prescribe such procedures and 
requirements as the Secretary deems appropriate for administering grant 
amounts under this title.
    (b) Allocation Units of General Local Government, Indian Tribes, 
and Insular Areas.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), an allocation unit of general local government, Indian 
        tribe, or Insular Area shall administer grant amounts received 
        under section 108 for any fiscal year.
            (2) Agencies and organizations designated by 
        jurisdiction.--
                    (A) Designation of other entities to administer 
                grant amounts.--An allocation unit of general local 
                government, Indian tribe, or Insular Area may elect for 
                any fiscal year to designate a public agency or a 
                private nonprofit organization (or a consortium of such 
                organizations) to administer grant amounts under 
                section 108 instead of the jurisdiction.
                    (B) Effect of designation.--The allocation unit of 
                general local government, Indian tribe, or Insular Area 
                shall remain the grantee for purposes of this title. 
                The Secretary may, at the request of the jurisdiction, 
                provide grant amounts directly to the agency or 
                organization designated under this paragraph.
            (3) Administration of grant by secretary.--If an allocation 
        unit of general local government, Indian tribe, or Insular 
        Area, or (if appropriate) a public agency or private nonprofit 
        organization designated by the jurisdiction under paragraph 
        (2), does not receive a grant under section 108 for any fiscal 
        year because of failure to meet the application requirements of 
        section 105, the Secretary shall designate the State or a local 
        private nonprofit organization to administer the program or 
        distribute the funds to private nonprofit organizations within 
        that jurisdiction on the basis of a competition.
    (c) States.--
            (1) In general.--Each State shall elect to either--
                    (A) administer grant amounts received under section 
                108, as provided by paragraphs (2) and (3); or
                    (B) have the Secretary administer these amounts 
                instead of the State, as provided by paragraph (4).
        If a State elects to administer grant amounts under 
        subparagraph (A), the election shall be permanent and final.
            (2) State program.--Of amounts referred to in paragraph 
        (1)(A), the State--
                    (A) may use not more than 15 percent to carry out 
                its own homeless assistance program under this title, 
                except that these amounts may only be used for eligible 
                activities under section 106; and
                    (B) shall distribute the remaining amounts to--
                            (i) State recipients for use under this 
                        title; or
                            (ii) in the case of an area of the State 
                        with significant homeless needs where no State 
                        recipient is identified, directly to one or 
                        more private nonprofit organizations serving 
                        that area.
        Not more than 20 percent of any amounts received in a fiscal 
        year by States may be used to carry out activities in 
        allocation units of general local government.
            (3) Distribution of amounts to state recipients.--
                    (A) In general.--
                            (i) Options for recipients.--A State 
                        distributing amounts to State recipients under 
                        paragraph (1)(A) shall, for each fiscal year, 
                        afford each such recipient the options of--
                                    (I) administering the grant amounts 
                                on its own behalf;
                                    (II) designating a public agency or 
                                a private nonprofit organization (as 
                                provided by subsection (b)(2)) to 
                                administer the grant amounts instead of 
                                the jurisdiction; or
                                    (III) entering into an agreement 
                                with the State, in consultation with 
                                private nonprofit organizations 
                                providing assistance to homeless 
                                individuals and families in the 
                                jurisdiction, under which the State 
                                will administer the grant amounts 
                                instead of the jurisdiction.
                            (ii) Effect of designation.--A State 
                        recipient designating an agency or organization 
                        as provided by clause (i)(II), or entering into 
                        an agreement with the State under clause 
                        (i)(III), shall remain the State recipient for 
                        purposes of this title. The State may, at the 
                        request of the State recipient, provide grant 
                        amounts directly to the agency or organization 
                        designated under clause (i)(II).
                    (B) Application.--(i) The State shall distribute 
                amounts to State recipients (or to agencies or 
                organizations designated under subparagraph (A)(i)(II), 
                as appropriate) on the basis of an application 
                containing such information as the State may prescribe, 
                except that each application shall reflect the State's 
                application requirements in section 105(d) and evidence 
                an intent to establish a comprehensive homeless 
                assistance system.
                    (ii) The State may waive the requirements in clause 
                (i) with respect to one or more proposed activities, 
                where the State determines that--
                            (I) the activities are necessary to meet 
                        the needs of homeless individuals and families 
                        within the jurisdiction; and
                            (II) a comprehensive homeless assistance 
                        system is not necessary, due to the nature and 
                        extent of homelessness in the jurisdiction.
                    (C) Preference.--In selecting State recipients and 
                making awards under subparagraph (B), the State shall 
                give preference to applications that demonstrate higher 
                relative levels of homeless need and fiscal distress.
            (4) HUD administration of state program.--If a State elects 
        to have the Secretary administer its grant amounts under 
        section 107, as provided by paragraph (1)(B), the Secretary may 
        distribute grant amounts within the State on a competitive 
        basis, using the criteria established in section 107(d)(2), 
        to--
                    (A) units of general local government;
                    (B) public agencies or private nonprofit agencies 
                designated by units of general local government; or
                    (C) private nonprofit organizations.
    (d) Nonprofit Homeless Providers.--Each grantee shall make 
available not less than 51 percent of the grant amounts it receives for 
any fiscal year to private nonprofit organizations that provide 
assistance to homeless individuals and families to carry out activities 
under this title. The Secretary may waive or reduce this requirement 
where a grantee can demonstrate that no private nonprofit providers 
exist or where those private nonprofit providers that do exist lack the 
capacity to address the needs of the homeless population.

SEC. 110. CITIZEN PARTICIPATION.

    (a) In General.--Each recipient shall ensure that citizens, and 
appropriate private nonprofit organizations and other interested groups 
and entities, participate fully in the development and carrying out of 
the program authorized under this title. The Secretary shall prescribe 
such requirements to carry out this section as the Secretary deems 
appropriate, which shall include requirements applicable to the citizen 
participation provisions of subsection (b), the local boards referred 
to in subsection (c), and the requirements for States under provisions 
of subsection (d) and the timing of, and sequence for, carrying out the 
requirements of those subsections.
    (b) Specific Requirements for the Involvement of Citizens and 
Others.--
            (1) In general.--Each recipient shall--
                    (A) make available to its citizens, public 
                agencies, and other interested parties information 
                concerning the amount of assistance the jurisdiction 
                expects to receive and the range of activities that may 
                be undertaken with the assistance;
                    (B) publish the proposed application in a manner 
                that, in the determination of the Secretary, affords 
                affected citizens, public agencies, and other 
                interested parties a reasonable opportunity to examine 
                its content and to submit comments on it;
                    (C) hold one or more public hearings to obtain the 
                views of citizens, public agencies, and other 
                interested parties on the needs of homeless individuals 
                and families in the jurisdiction at a time and a 
                location that will ensure maximum potential 
                participation; and
                    (D) provide citizens, public agencies, and other 
                interested parties with reasonable access to records 
                regarding any uses of any assistance the recipient may 
                have received during the preceding 5 years.
            (2) Notice and comment.--Before submitting any performance 
        report under section 111(a) or substantial amendment to an 
        application under section 105, a recipient shall provide 
        citizens with reasonable notice of, and opportunity to comment 
        on, such performance report or application before its 
        submission.
            (3) Consideration of comments.--A recipient shall consider 
        any comments or views of citizens in preparing a final 
        application, amendment to an application or performance report 
        for submission. A summary of such comments or views shall be 
        attached when an application, amendment to an application, or 
        performance report is submitted. The submitted application, 
        amendment, or report shall be made available to the public.
    (c) Local Boards.--
            (1) Establishment and function.--The chief executive of 
        each allocation unit of general local government, Indian tribe, 
        Insular Area, or State recipient shall establish, select, and 
        support a local board, which shall assist the jurisdiction in--
                    (A) determining whether the grant should be 
                administered by the jurisdiction, a public agency or 
                private nonprofit organization, or the State or the 
                Secretary, as appropriate, under subsection (b) and (c) 
                of section 109;
                    (B) developing the application under section 105;
                    (C) overseeing the activities carried out with 
                assistance under this title; and
                    (D) preparing the performance report under section 
                111(a).
            (2) Composition of board.--The composition of each local 
        board shall be as follows:
                    (A) Majority of board.--Not less than 51 percent of 
                its members shall represent the following:
                            (i) Homeless individuals and families.
                            (ii) Homeless advocates.
                            (iii) Individuals and entities providing 
                        assistance to homeless individuals and 
                        families.
                    (B) Remainder of board.--The remainder of the board 
                shall represent the following:
                            (i) The business community.
                            (ii) Neighborhood advocates.
                            (iii) Government officials.
            (3) Distribution of membership.--The membership of each 
        local board meeting the criteria in paragraph (2)(A) shall have 
        been nominated by individuals and entities, other than a 
        governmental jurisdiction, that represent these groups. In 
        selecting a board, the chief executive officer of the 
        jurisdiction shall, to the maximum extent practicable, select 
        local board members who will improve access to a broad range of 
        services for homeless individuals and families and who are 
        sensitive to the varying needs of homeless individuals and 
        families. Each local board shall include members who, to the 
        maximum extent practicable and consistent with local needs, 
        represent the different homeless subpopulations in that 
        community, including veterans, the mentally ill, families with 
        children, young persons, battered spouses, victims of substance 
        abuse, and persons with AIDS.
            (4) Review by secretary.--The Secretary may waive the 
        requirements of paragraphs (2) and (3) if the jurisdiction has 
        an existing local board that substantially meets the 
        requirements of such paragraphs.
    (d) Requirements for the Secretary and States Distributing Amounts 
to State Recipients.--
            (1) State programs.--The Secretary may prescribe citizen 
        participation requirements for States, including a requirement 
        for State advisory boards. Such requirements shall be 
        comparable (to the extent appropriate) to those contained in 
        the preceding provisions of this section.
            (2) The Secretary may prescribe citizen participation 
        requirements where:
                    (A) A State or a private nonprofit organization is 
                administering the grant amounts of an allocation unit 
                of general local government, as provided by section 
                108(b)(3).
                    (B) The Secretary is distributing grant amounts to 
                State recipients, as provided by section 108(c)(1)(B). 
                Such requirements shall be comparable (to the extent 
                appropriate) to those contained in the preceding 
                provisions of this section.
            (3) Laws inapplicable.--The following provisions of law 
        shall not apply with respect to the actions of the Secretary 
        referred to in paragraph (2):
                    (A) The Federal Advisory Committee Act.
                    (B) Section 103 of the Department of Housing and 
                Urban Development Reform Act of 1989.
        The Secretary shall establish appropriate standards under this 
        paragraph to ensure the integrity of the process for awarding 
        assistance.

SEC. 111. REPORTS, REVIEWS, AND AUDITS.

    (a) Grantee Performance Report.--Each grantee shall submit to the 
Secretary a performance and evaluation report prepared by the State 
advisory board or the local board concerning the use of funds made 
available under this title. To the extent that the chief executive 
officer of the grantee has made changes to the report, the submission 
shall also include the comments of the State advisory board or local 
board. The report shall be submitted at such time and contain such 
information as the Secretary shall prescribe, and shall be made 
available to citizens, public agencies, and other interested parties in 
the jurisdiction of the grantee in sufficient time to permit the 
citizens, public agencies, and other interested parties to comment on 
the report before its submission.
    (b) Reviews and Audits.--
            (1) In general.--The Secretary shall, not less than 
        annually, make such reviews and audits as may be necessary or 
        appropriate to determine--
                    (A) in the case of a grantee (other than a grantee 
                referred to in subparagraph (B)), whether the grantee--
                            (i) has carried out its activities in a 
                        timely manner;
                            (ii) has made progress toward establishing 
                        and maintaining the comprehensive homeless 
                        assistance system in conformity with its 
                        application under this title; and
                            (iii) has carried out its activities and 
                        certifications in accordance with the 
                        requirements of this title and other applicable 
                        laws; and
                    (B) in the case of States distributing grant 
                amounts to State recipients, whether the State--
                            (i) has distributed amounts to State 
                        recipients in a timely manner and in 
                        conformance with the method of distribution 
                        described in its application;
                            (ii) has carried out its activities and 
                        certifications in compliance with the 
                        requirements of this title and other applicable 
                        laws; and
                            (iii) has made such reviews and audits of 
                        the State recipients as may be necessary or 
                        appropriate to determine whether they have 
                        satisfied the applicable performance criteria 
                        contained in subparagraph (A).
            (2) Adjustments.--The Secretary may reduce or condition a 
        grant if the Secretary determines that the grantee has failed 
        to substantially comply with the requirements of this title. 
        With respect to assistance made available for State recipients, 
        the Secretary may reduce or condition such assistance, or take 
        other action as appropriate in accordance with the Secretary's 
        reviews and audits under this subsection, except that funds 
        already properly expended on eligible activities under this 
        title shall not be recaptured or deducted from future 
        assistance to such recipients. No assistance shall be reduced 
        or conditioned unless the recipient has had reasonable notice 
        and opportunity for a hearing.

SEC. 112. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

    (a) In General.--No person in the United States shall, on the 
ground of race, color, national origin, religion, or sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with funds made available under this title. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified handicapped individual, 
as provided in section 504 of the Rehabilitation Act of 1973, shall 
also apply to any such program or activity.
    (b) Limitations.--
            (1) Indian tribes.--No grant may be made to an Indian tribe 
        under this title unless the applicant provides satisfactory 
        assurances that its program will be conducted and administered 
        in conformity with title II of Public Law 90-284. The Secretary 
        may waive, in connection with grants to Indian tribes, the 
        provisions of subsection (a).
            (2) Hawaiian home lands.--Nothing in this title relating to 
        discrimination on the basis of race shall apply to the 
        provision of assistance to the Hawaiian Home Lands.

SEC. 113. CONSULTATION.

    In carrying out the provisions of this title, including the 
issuance of regulations, the Secretary shall consult with other Federal 
departments and agencies administering programs affecting homeless 
individuals and families.

SEC. 114. RECORDS, REPORTS, AND AUDITS.

    (a) Keeping of Records.--Any recipient shall keep such records as 
may be reasonably necessary--
            (1) to disclose the amounts and the disposition of the 
        grant amounts, including types of activities funded and the 
        nature of populations served with these funds; and
            (2) to ensure compliance with the requirements of this 
        title.
    (b) Access to Documents by the Secretary.--The Secretary shall have 
access for the purpose of audit and examination to any books, 
documents, papers, and records of any recipient specified in subsection 
(a) that are pertinent to grant amounts received in connection with 
this title.
    (c) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any duly authorized 
representative of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of any recipient specified in subsection (a) that are pertinent 
to grant amounts received in connection with this title.

SEC. 115. ANNUAL REPORT TO CONGRESS.

    The Secretary shall submit a report to the Congress annually, 
summarizing the activities carried out under this title, and setting 
forth the findings, conclusions, and recommendations of the Secretary 
as a result of the activities. The report shall be submitted not later 
than 4 months after the end of each fiscal year (except that for fiscal 
year 1996, the report shall be submitted not later than 6 months after 
the end of the fiscal year).

SEC. 116. IMPLEMENTATION.

    (a) Notice and Comment.--The Secretary shall, by proposed rule 
published for notice and comment in the Federal Register, establish 
such requirements as may be necessary to carry out the provisions of 
this title.
    (b) Notices of Funding Availability.--The Secretary shall publish a 
notice of funding availability not later than 60 days after funds are 
appropriated to carry out this title.

SEC. 117. TRANSITION PROVISIONS.

    (a) Fiscal Year 1995.--
            (1) Activities under title iv of the stewart b. mckinney 
        homeless assistance act.--There are authorized to be 
        appropriated for fiscal year 1995 to carry out title IV of the 
        Stewart B. McKinney Homeless Assistance Act--
                    (A) $120,000,000 for the activities under subtitle 
                B;
                    (B) $705,000,000 for the activities under subtitle 
                C; and
                    (C) $100,000,000 for the activities under section 
                441.
            (2) Technical assistance and demonstrations.--There are 
        authorized to be appropriated for fiscal year 1995--
                    (A) $50,000,000 for activities authorized under 
                section 107(e)(1)(A); and
                    (B) $25,000,000 for activities authorized under 
                section 107(e)(1)(B).
            (3) Preference.--Except for grants provided under subtitle 
        B and notwithstanding any other provision of law, in making 
        grants with funds appropriated under this subsection for fiscal 
        year 1995, the Secretary shall give preference to applicants 
        that have established a local board, as described in section 
        110, and that have developed a comprehensive homeless 
        assistance system, consistent with the purposes of this title. 
        The Secretary shall review carefully all grant applications 
        from underserved areas and rural areas with significant 
        populations of homeless individuals and families.
    (b)  Repeals.--
            (1) Stewart b. mckinney homeless assistance act.--Title IV 
        of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
        11361 et seq.) is amended by striking subtitles D, F, and G.
            (2) Innovative homeless initiatives demonstration 
        program.--Section 2 of the HUD Demonstration Act of 1993 (42 
        U.S.C. 11301 note) is hereby repealed.
    (c) Repeal of Existing Programs.--Effective October 1, 1995, title 
IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361 
et seq.) is amended by striking--
            (1) subtitles B and C; and
            (2) section 441.
    (d) Savings Provision.--The provisions of law repealed by 
subsections (b) and (c) shall continue to apply to grants and contracts 
entered into under such provisions prior to the date of enactment of 
this Act.

                  TITLE II--PUBLIC AND INDIAN HOUSING

      Subtitle A--Enhanced Flexibility for Public Housing Agencies

SEC. 201. PUBLIC HOUSING DIRECT LOANS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new section:

``SEC. 27. PUBLIC HOUSING DIRECT LOANS.

    ``(a) General Authorization.--The Secretary may, upon such terms 
and conditions as the Secretary may prescribe, make loans to public 
housing agencies (or partnerships including these agencies) eligible 
for comprehensive modernization grants under section 14.
    ``(b) Terms and Conditions.--
            ``(1) Criteria for approval.--In approving an application 
        under this section, the Secretary may consider--
                    ``(A) the ability of the public housing agency to 
                use the proceeds of the loan effectively, directly or 
                through contract management;
                    ``(B) the adequacy of remaining future allocations 
                in providing repairs, replacements, and improvements 
                that will be needed as a result of usage and 
                depreciation of existing projects over the loan period; 
                and
                    ``(C) such other criteria as the Secretary may 
                specify.
            ``(2) Special conditions.--Notwithstanding paragraph (1), 
        the Secretary may approve a loan under this section only if the 
        Secretary determines that--
                    ``(A) the public housing agency has an acceptable 
                rate of obligation of funds under section 14; or
                    ``(B) the public housing agency agrees to 
                administer the loan proceeds through a contract with a 
                management company with demonstrated expertise in 
                managing development projects.
            ``(3) Term of loan.--Loans under this section shall be for 
        a term consistent with the term of other private debt on the 
        project, but not to exceed 30 years.
            ``(4) Interest rate.--Loans under this section shall bear 
        interest at a rate equal to the average current market yields 
        on all outstanding marketable obligations of the United States 
        with remaining terms to maturities comparable to the average 
        maturities of loans under this section, plus amounts sufficient 
        to cover servicing costs, plus 150 basis points.
            ``(5) Subordination.--Loans under this section may be 
        subordinated to other debt contracted by the public housing 
        agency or the partnership including the agency.
            ``(6) Subsidy amount.--Based on the public housing agency's 
        pledged sources of repayments (including rents and other 
        anticipated income streams), the Director of the Office of 
        Management and Budget, in consultation with the Secretary, 
        shall establish a subsidy cost, if any, as defined by the 
        Federal Credit Reform Act of 1990, for each loan to the agency.
            ``(7) Premium amount.--A premium amount shall be assessed 
        to cover the subsidy amount associated with each loan so that 
        the resulting net subsidy cost to the Federal Government is 
        zero. This premium shall be paid from the amount the public 
        housing agency receives under the comprehensive grant program 
        under section 14 in the year the loan is originated.
    ``(c) Authorization.--To the extent provided in appropriations 
Acts, the Secretary may enter into commitments to make loans under this 
section with an aggregate principal amount of $2,000,000,000 for each 
of the fiscal years 1995 and 1996.
    ``(d) Loan Limit.--The total outstanding principal amount of loans 
under this section made to a public housing agency (excluding any 
amount repaid) may not exceed 5 times the amount of the public housing 
agency's latest comprehensive modernization grant under section 14.
    ``(e) Use of Comprehensive Modernization Grants.--Notwithstanding 
any other provision of this title, comprehensive modernization grants 
or allocations under this title to the public housing agency (including 
program income derived therefrom) may be used by the public housing 
agency or by the Secretary for the payment of premiums due on any loan 
under this section.
    ``(f) Program Requirements.--To assure the full repayment of a loan 
made under this section and as a prior condition for receiving the 
loan, the Secretary shall require the public housing agency (or the 
partnership including the agency) to--
            ``(1) enter into a contract for repayment of the loan and 
        the other specified charges;
            ``(2) pledge financial resources, including rental and 
        other income, for repayment of the loan; and
            ``(3) furnish such other security as may be appropriate, 
        including the land, the units financed with the loan, public 
        housing units in the project financed by the loan, or other 
        land or housing owned by the agency or the proceeds of 
        disposition thereof.
    ``(g) Equity Requirements.--The Secretary shall require the public 
housing agency (or the partnership including the agency) to contribute 
30 percent equity to any project financed with a loan under this 
section. For the purpose of this subsection, the term `equity' includes 
a contribution made from Federal or non-Federal sources, the value of 
land donated by the public housing agency or the local jurisdiction, 
and the value of units developed as part of the project using funds 
under section 5(a)(2), section 14, or section 24.
    ``(h) Program Administration.--If the Secretary finds that 50 
percent of the annual loan authority has been committed, or public 
housing agencies have applied for such commitments, the Secretary may 
impose limitations on the amount of loans any public housing agency may 
receive in any fiscal year.
    ``(i) Training and Information.--The Secretary may carry out 
training and information collection and dissemination activities in 
support of this section using funds otherwise set aside for technical 
assistance under section 14.
    ``(j) Affordability.--The public housing agency shall establish 
rents for units developed with the proceeds of a loan under this 
section at a level that is affordable for families with incomes that do 
not exceed 80 percent of the median income for the area or other 
applicable limitation on rents.''.

SEC. 202. USE OF MODERNIZATION FUNDS FOR REPLACEMENT HOUSING.

    Section 14 of the United States Housing Act of 1937 (42 U.S.C. 
1437l) is amended by adding at the end the following new subsection:
    ``(q) Use of Modernization Funds for Replacement Housing.--A public 
housing agency may use assistance under this section for the 
development or acquisition of additional housing under this title, in 
accordance with requirements applicable to the development or 
acquisition of public housing, to provide replacement housing as 
required by section 18 if--
            ``(1) the public housing agency has developed a plan that 
        balances development activities with ongoing needs under the 
        modernization program;
            ``(2) the total amount of the public housing agency's 
        annual grant under this section that is used for replacement 
        housing under this subsection does not exceed 50 percent; and
            ``(3) the development of housing under this subsection is 
        justifiable based on the relative long-term cost of development 
        to modernization and other factors as determined by the 
        Secretary, including project redesign, reducing population 
        densities, and the remaining useful life of the existing 
        structure.''.

SEC. 203. USE OF PUBLIC-PRIVATE PARTNERSHIPS IN MODERNIZING PUBLIC 
              HOUSING.

    Section 14(c)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437l(c)(1)) is amended by inserting before the semicolon the 
following: ``or, as determined by the Secretary, controlled by public 
housing agencies''.

SEC. 204. REPORT.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary shall submit to the Congress a report detailing the effects 
of the amendments made by sections 201, 202, and 203, including--
            (1) activities carried out using the authorities provided 
        in such amendments;
            (2) activities carried out with assistance provided under 
        section 14(c)(1) of the United States Housing Act of 1937;
            (3) the amount of public and private investment being 
        committed to modernization and replacement housing; and
            (4) the number of units assisted under section 14(c)(1) of 
        the United States Housing Act of 1937 and the cost per unit.

SEC. 205. MODIFICATION OF THE EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    Section 222 of the Housing and Urban-Rural Recovery Act of 1983 (12 
U.S.C. 1701z-6 note) is amended--
            (1) by striking the section heading and inserting the 
        following:

``early childhood development programs for public housing residents and 
                          homeless families'';

            (2) in subsection (a)(1), by inserting before the period 
        the following: ``and for homeless families with children, as 
        defined in section 103 of the Stewart B. McKinney Homeless 
        Housing Assistance Reorganization Act of 1994'';
            (3) in subsection (b)(1), by inserting before the semicolon 
        the following: ``, except that the Secretary may make a grant 
        to provide additional assistance for an existing child care 
        center assisted under this section or to expand an existing 
        child care center regardless of whether or not such center was 
        previously assisted under this section'';
            (4) in subsection (c)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) take into account the proximity of facilities for 
        homeless families to the proposed site at which the services 
        are to be provided;''; and
            (5) in subsection (g), by striking the first 2 sentences 
        and inserting the following: ``There are authorized to be 
        appropriated to carry out this section $15,000,000 for fiscal 
        year 1995 and $15,450,000 for fiscal year 1996.''.

SEC. 206. ENTREPRENEURIAL PHAS AND RMCS.

    (a) Authorization of Demonstrations.--
            (1) In general.--The Secretary may authorize public housing 
        agencies and resident management corporations to conduct 
        demonstrations that--
                    (A) test the extent to which aspects of the public 
                housing program may be exempt from certain statutory 
                requirements while continuing to serve eligible 
                families; and
                    (B) permit agencies and resident management 
                corporations to set policies for the operation, 
                maintenance, management, and development (including 
                modernization) of one or more projects, without regard 
                to the requirements applicable to public housing in the 
                United States Housing Act of 1937.
            (2) Applicability of state and local law.--In establishing 
        policies under paragraph (1)(B), agencies and resident 
        management corporations shall be bound by any applicable State 
        or local law.
            (3) Term.--A demonstration may be approved for a term of 
        not more than 5 years.
    (b) Expedited Waivers and Deregulation.--The Secretary shall 
establish a system for expedited waivers of regulations for public 
housing agencies and resident management corporations selected under 
this section.
    (c) Selection of Agencies and RMCs.--The Secretary may select not 
more than 25 public housing agencies or resident management 
corporations (or a combination of both) to carry out demonstrations 
under this section. The Secretary shall select agencies based on 
selection criteria including such factors as--
            (1) the need for a range of project sizes;
            (2) the need for a range of types of public housing 
        agencies and resident management corporations; and
            (3) the potential effects and benefits the variations 
        proposed by the agency or resident management corporation could 
        have on the public housing program if the variations were 
        adopted for the whole program.
    (d) Requirements for Demonstrations.--Each demonstration under this 
section--
            (1) shall be approved by the Secretary;
            (2) taken as a whole over the life of the demonstration, 
        shall not result in higher net costs to the Federal Government;
            (3) shall be consistent with the overall purposes of the 
        public housing program;
            (4) shall be evaluated by an independent party; and
            (5) shall be consistent with the Fair Housing Act, title VI 
        of the Civil Rights Act of 1964, section 504 of the 
        Rehabilitation Act of 1973, the Age Discrimination Act of 1975, 
        and the National Environmental Policy Act of 1969.
    (e) Additional Requirements.--In approving a demonstration under 
this section, the Secretary may impose such requirements as the 
Secretary considers to be appropriate to further the purposes of the 
demonstration.
    (f) Reports.--
            (1) Annual progress reports.--For each demonstration under 
        this section, the public housing agency or resident management 
        corporation carrying out the demonstration shall submit an 
        annual progress report to the Secretary.
            (2) Reports to congress.--Not later than 1 year after the 
        date on which each demonstration is completed, the Secretary 
        shall submit a report to the Congress evaluating the results of 
        the demonstration and making any recommendations for 
        legislation.
    (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Public housing agency.--The term ``public housing 
        agency'' or ``agency'' means a public housing agency, as 
        defined in section 3(b)(6) of the United States Housing Act of 
        1937, and includes Indian housing authorities.
            (2) Resident management corporation.--``Resident management 
        corporation'' means a resident management corporation 
        established in accordance with requirements of the Secretary 
        under section 20 of the United States Housing Act of 1937.

SEC. 207. DISALLOWANCE OF EARNED INCOME FOR RESIDENTS WHO OBTAIN 
              EMPLOYMENT.

    (a) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
            (1) In general.--Section 3 of the United States Housing Act 
        of 1937 (42 U.S.C. 1437a) is amended--
                    (A) by striking the undesignated paragraph at the 
                end of subsection (c)(3) (as added by section 515(b) of 
                Public Law 101-625); and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the rent payable under subsection (a) by a family--
                    ``(A) that--
                            ``(i) occupies a unit in a public housing 
                        project; or
                            ``(ii) receives assistance under section 8; 
                        and
                    ``(B) whose income increases as a result of 
                employment of a member of the family who was previously 
                unemployed for 1 or more years (including a family 
                whose income increases as a result of the participation 
                of a family member in the Family Self-Sufficiency 
                Program or other job training program);
        may not be increased for a period of 18 months, beginning with 
        the commencement of employment as a result of the increased 
        income due to such employment.
            ``(2) Ten percent limitation.--After the expiration of the 
        18-month period referred to in paragraph (1), rent increases 
        due to the continued employment of such a family member shall 
        be not more than 10 percent per year.
            ``(3) Overall limitation.--Rent shall not exceed the amount 
        determined under subsection (a).''.
            (2) Applicability of amendment.--
                    (A) Public housing.--Notwithstanding the amendment 
                made by paragraph (1), any resident of public housing 
                participating in the program under the authority 
                contained in the undesignated paragraph at the end of 
                section 3(c)(3) of the United States Housing Act of 
                1937, as such paragraph existed before the date of 
                enactment of this Act, shall continue to be governed by 
                such authority.
                    (B) Section 8.--The amendment made by paragraph (1) 
                shall apply to assistance provided under section 8 of 
                the United States Housing Act of 1937 with funds 
                appropriated on or after October 1, 1994.
    (b) Repeal.--Section 957 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12714) is hereby repealed.

SEC. 208. CEILING RENTS BASED ON REASONABLE RENTAL VALUE.

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

SEC. 209. AUTHORIZATION TO SELL PUBLIC HOUSING TO NONPROFIT 
              ORGANIZATIONS.

    The first sentence of section 5(h) of the United States Housing Act 
of 1937 (42 U.S.C. 1437c(h)) is amended by striking ``lower income 
tenants'' and inserting ``low-income families or to nonprofit 
organizations for resale to low-income families''.

SEC. 210. WORKING FAMILIES IN PUBLIC HOUSING.

    Section 16 of the United States Housing Act of 1937 (42 U.S.C. 
1437n) is amended--
            (1) in subsection (a), by striking ``25'' and inserting 
        ``50''; and
            (2) in subsection (b)(2), by striking ``25'' the first 
        place it appears and inserting ``50''.

         Subtitle B--Severely Distressed Public Housing Program

SEC. 211. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

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

SEC. 212. MODERNIZATION PROGRAM RESERVE FUNDS.

    Section 14(k)(1) of the United States Housing Act of 1937 (42 
U.S.C. 1437l(k)(1)) is amended by adding after the first sentence the 
following: ``In each fiscal year, any amounts set aside for grants 
under this paragraph that remain unreserved at the end of the fiscal 
year may be used for modernization needs in connection with the 
settlement of litigation and desegregation of public housing.''.

SEC. 213. ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC HOUSING FOR PUBLIC 
              HOUSING OPERATING SUBSIDIES.

    Section 9(a)(2) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(a)(2)) is amended by striking ``developed pursuant'' and all that 
follows through ``section 8,'' inserting the following: ``that is--
                    ``(A) developed pursuant to a contributions 
                contract authorized by section 5 but is not subject to 
                section 8; or
                    ``(B) assisted under section 24 or the program 
                authorized under--
                            ``(i) the third paragraph of the heading, 
                        `homeownership and opportunity for people 
                        everywhere grants (hope grants)', of the 
                        Department of Veterans Affairs and Housing and 
                        Urban Development, and Independent Agencies 
                        Appropriations Act, 1993; or
                            ``(ii) the heading, `severely distressed 
                        public housing projects', of the Department of 
                        Veterans Affairs and Housing and Urban 
                        Development, and Independent Agencies 
                        Appropriations Act, 1994;''.

                   Subtitle C--Anti-Crime Initiatives

SEC. 221. COMMUNITY PARTNERSHIPS AGAINST CRIME.

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

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

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

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

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

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1994'.

``SEC. 5122. PURPOSES.

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

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``(a) In General.--The Secretary of Housing and Urban Development, 
in accordance with the provisions of this chapter, may make grants, for 
use in eliminating crime in and around public and other federally 
assisted low-income housing projects--
            ``(1) to public housing agencies (including Indian housing 
        authorities); and
            ``(2) to private, for-profit, and nonprofit owners of 
        federally assisted low-income housing.
    ``(b) Consultation.--In designing the grant program under this 
section, the Secretary shall consult with the Attorney General.''.
    (c) Eligible Activities.--Section 5124 of the Public and Assisted 
Housing Drug Elimination Act of 1990 (42 U.S.C. 11903) is amended--
            (1) in subsection (a)--
                    (A) in the introductory material preceding 
                paragraph (1), by inserting ``and around'' after ``used 
                in'';
                    (B) in paragraph (3), by inserting ``, such as 
                fencing, lighting, locking, and surveillance systems 
                and costs of renovation to current structures for the 
                purposes of establishing police substations on the 
                premises of public housing developments'' before the 
                semicolon;
                    (C) in paragraph (4), by striking subparagraph (A) 
                and inserting the following:
                    ``(A) to investigate crime; and'';
                    (D) in paragraph (6)--
                            (i) by striking ``in and around public or 
                        other federally assisted low-income housing 
                        projects''; and
                            (ii) by striking ``and'' after the 
                        semicolon;
                    (E) in paragraph (7)--
                            (i) by striking ``where a public housing 
                        agency receives a grant,'';
                            (ii) by striking ``drug abuse'' and 
                        inserting ``crime''; and
                            (iii) by striking the period at the end and 
                        inserting a semicolon; and
                    (F) by adding at the end the following new 
                paragraphs:
            ``(8) the employment or utilization of one or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community policing 
        involving interaction with members of the community on 
        proactive crime control and prevention;
            ``(9) youth initiatives, such as activities involving 
        training, education, after-school programs, cultural programs, 
        recreation and sports, career planning, and entrepreneurship 
        and employment; and
            ``(10) resident services programs, such as job training, 
        education programs, drug and alcohol treatment, and other 
        appropriate social services that address the contributing 
        factors of crime.''; and
            (2) in subsection (b), by striking ``(7)'' and inserting 
        ``(10)''.
    (d) Applications.--Section 5125 of the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11904) is amended--
            (1) in subsection (a)--
                    (A) by striking ``To receive a grant'' and 
                inserting the following:
            ``(1) Applications.--To receive a grant'';
                    (B) in the second sentence, by striking ``drug-
                related crime on the premises of'' and inserting the 
                following: ``crime in and around''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(2) One-year renewable grants.--
                    ``(A) In general.--Eligible applicants may submit 
                an application for a 1-year grant under this chapter 
                that, subject to the availability of appropriated 
                amounts, shall be renewed annually for a period of not 
                more than 4 years, if the Secretary finds, after an 
                annual or more frequent performance review, that the 
                public housing agency is performing under the terms of 
                the grant and applicable laws in a satisfactory manner 
                and meets such other requirements as the Secretary may 
                prescribe.
                    ``(B) Preference.--The Secretary shall accord a 
                preference to an applicant for a grant under this 
                paragraph if the grant is to be used to continue or 
                expand activities eligible for assistance under this 
                chapter that have received previous assistance either 
                under this chapter (as it existed prior to the 
                enactment of the Housing Choice and Community 
                Investment Act of 1994), or under section 14 of the 
                United States Housing Act of 1937. Such preference 
                shall not preclude the selection by the Secretary of 
                other meritorious applications that address urgent or 
                severe crime problems. Such preference shall not be 
                construed to require continuation of activities 
                determined by the Secretary to be unworthy of 
                continuation.
            ``(3) Public housing agencies that have especially severe 
        crime problems.--The Secretary shall, by regulation issued 
        after notice and opportunity for public comment, set forth 
        criteria for establishing a class of public housing agencies 
        that have especially severe crime problems. The Secretary may 
        allocate a portion of the annual appropriation for the program 
        under this chapter for public housing agencies in this 
        class.'';
            (2) in subsection (b)--
                    (A) by striking the material preceding paragraph 
                (1) and inserting the following: ``The Secretary shall 
                approve applications under subsection (a)(2) that are 
                not subject to a preference under subsection (a)(2)(B) 
                on the basis of--'';
                    (B) in paragraph (1), by striking ``drug-related 
                crime problem in'' and inserting ``crime problem in and 
                around'';
                    (C) in paragraph (2), by inserting ``and around'' 
                immediately after ``crime problem in''; and
                    (D) in paragraph (4), by inserting after ``local 
                government'' the following: ``, local community-based 
                nonprofit organizations, local resident organizations 
                that represent the residents of neighboring projects 
                that are owned or assisted by the Secretary,'';
            (3) in subsection (c)(2), by striking ``drug-related'' each 
        place it appears; and
            (4) by striking subsection (d).
    (e) Definitions.--Section 5126 of the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11905) is amended by striking 
paragraphs (1) and (2), and redesignating paragraphs (3) and (4) as 
paragraphs (1) and (2), respectively.
    (f) Implementation.--Section 5127 of the Public and Assisted 
Housing Drug Elimination Act of 1990 (42 U.S.C. 11908) is amended by 
striking ``Cranston-Gonzalez National Affordable Housing Act'' and 
inserting ``Housing Choice and Community Investment Act of 1994''.
    (g) Reports.--Section 5128 of the Public and Assisted Housing Drug 
Elimination Act of 1990 (42 U.S.C. 11907) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
    ``(a) Grantee Reports.--The Secretary'';
            (2) by striking ``drug-related crime in'' and inserting 
        ``crime in and around''; and
            (3) by adding at the end the following new subsection:
    ``(b) HUD Reports.--The Secretary shall submit a report to the 
Congress describing the system used to distribute funds to grantees 
under this section. Such report shall include--
            ``(1) a description of the criteria used to establish the 
        class of public housing agencies with especially severe crime 
        problems and a list of such agencies;
            ``(2) the methodology used to distribute funds among the 
        public housing agencies on the list created under paragraph 
        (1); and
            ``(3) the Secretary's recommendations for any change to the 
        method of distribution of funds.''.
    (h) Authorization of Appropriations.--Section 5130 of the Public 
and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 11909) is 
amended--
            (1) in the first sentence of subsection (a), by striking 
        ``$175,000,000 for fiscal year 1993'' and all that follows 
        before the period and inserting ``$265,000,000 for fiscal year 
        1995, and $272,950,000 for fiscal year 1996'';
            (2) in subsection (b)--
                    (A) in the heading, by striking ``Set-Asides'' and 
                inserting ``Set-Aside''; and
                    (B) by striking the second sentence; and
            (3) by adding at the end the following new subsection:
    ``(d) Set-Aside for Public-Private Partnerships.--Of amounts made 
available in any fiscal year to carry out this chapter, 2 percent shall 
be available for contracts, grants, cooperative agreements, or 
interagency agreements with public housing agencies (including Indian 
housing authorities) and other public or private organizations, to 
implement programs which involve joint investment by the public and 
private sectors to conduct activities designed to reduce crime and 
violence in public housing. Such activities may include the creation of 
pilot programs or the replication of successful existing programs.''.
    (i) Repeal.--Section 520(k) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 11903a(k)) is hereby repealed.
    (j) Technical Assistance.--The Public and Assisted Housing Drug 
Elimination Act of 1990 (42 U.S.C. 11901 et seq.) is amended by adding 
at the end the following new section:

``SEC. 5131. TECHNICAL ASSISTANCE.

    ``Of the amounts appropriated annually for each of fiscal years 
1995 and 1996 to carry out this chapter, the Secretary shall use not 
more than $10,000,000, directly or indirectly, under grants, contracts, 
or cooperative agreements, to provide training, information services, 
and other technical assistance to public housing agencies and other 
entities with respect to their participation in the program authorized 
by this chapter. Such technical assistance may include the 
establishment and operation of the clearinghouse on crime in public 
housing and the regional training program on crime prevention in public 
housing. The Secretary may also use the foregoing amounts for obtaining 
assistance in establishing and managing assessment and evaluation 
criteria and specifications, and for obtaining the opinions of experts 
in relevant fields. The Secretary may use not more than $1,000,000 from 
the amounts provided under this section to make grants to public 
housing agencies for residential police programs under section 519 of 
the Cranston-Gonzalez National Affordable Housing Act.''.

SEC. 222. POLICE IN PUBLIC HOUSING.

    Section 519 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 1437a-1) is amended by inserting in subsection (d) after 
the word ``requirements'' the second place it appears the following: 
``(including substantially reduced rents or at no charge)''.

SEC. 223. AVAILABILITY OF CRIMINAL RECORDS FOR SCREENING AND EVICTION.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended by adding at the end the following new subsection:
    ``(p) Availability of Records.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the National Crime Information Center, a police 
        department, and any other law enforcement agency shall, upon 
        request, provide information to public housing agencies 
        regarding the criminal conviction records of adult applicants 
        for, or residents of, public housing for purpose of applicant 
        screening, lease enforcement, and eviction. Such information 
        may not include information regarding any criminal conviction 
        of such an applicant or tenant for any act (or failure to act) 
        that occurred more than 5 years in the past.
            ``(2) Opportunity to dispute.--Before an adverse action is 
        taken on the basis of a criminal record, the agency shall 
        provide the tenant or applicant a copy of the record and an 
        opportunity to dispute its accuracy and relevance.
            ``(3) Fee.--An agency may be charged a reasonable fee for 
        such information.
            ``(4) Records management.--The Secretary shall require each 
        public housing agency to establish and implement a system of 
        records management that ensures that any criminal records it 
        receives are maintained confidentially, are not misused or 
        improperly disseminated, and are destroyed once the purpose for 
        which they were requested has been completed.
            ``(5) Definition.--For purposes of this subsection, the 
        term `adult' means a person who is 18 years or older, or who 
        has been convicted of a crime as an adult under Federal or 
        State law.''.

               Subtitle D--Authorizations and Extensions

SEC. 231. LOW-INCOME HOUSING.

    (a) Aggregate Budget Authority.--Section 5(c)(6) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(6)) is amended by adding 
at the end the following new sentence: ``The aggregate amount of budget 
authority that may be obligated for assistance referred to in paragraph 
(7) is increased (to the extent approved in appropriation Acts) by not 
less than $10,531,176,000 on October 1, 1995, and by not less than 
$10,760,505,000 on October 1, 1996.''.
    (b) Utilization of Budget Authority.--Section 5(c)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c(c)(7)) is amended by 
striking the paragraph designation and all that follows through the end 
of subparagraph (B) and inserting the following:
            ``(7) Utilization of budget authority.--
                    ``(A) Fiscal year 1995.--Using the additional 
                budget authority provided under paragraph (6) and the 
                balances of budget authority that become available 
                during fiscal year 1995, the Secretary shall, to the 
                extent approved in appropriation Acts, reserve 
                authority to enter into obligations aggregating--
                            ``(i) for public housing grants under 
                        subsection (a)(2), not more than $938,000,000, 
                        of which amount not more than $263,000,000 
                        shall be available for Indian housing;
                            ``(ii) for assistance under section 8, not 
                        more than $1,950,000,000, of which $350,000,000 
                        shall be available for contracts with terms of 
                        not more than 15 years under the Community 
                        Investment Demonstration Program under section 
                        6 of the HUD Demonstration Act of 1993;
                            ``(iii) for modernization grants under 
                        section 14(k), not more than $3,440,000,000, 
                        including $15,000,000 for training and 
                        technical assistance;
                            ``(iv) for assistance under section 8 for 
                        loan management, not more than $150,000,000;
                            ``(v) such sums as may be necessary for 
                        extensions of contracts expiring under section 
                        8, which shall be for contracts for assistance 
                        under section 8 and vouchers under section 8(o) 
                        and for loan management assistance under such 
                        section;
                            ``(vi) for amendments to contracts under 
                        section 8, $950,000,000;
                            ``(vii) for adjustments to annual 
                        contributions contracts for the costs of 
                        providing service coordinators under section 
                        9(a)(1)(B)(ii), not more than $55,000,000;
                            ``(viii) for public housing lease 
                        adjustments, $21,900,000;
                            ``(ix) for assistance under section 18(e) 
                        for replacement housing for units demolished or 
                        disposed of under section 18, and for eligible 
                        tenants where project owners opt out of the 
                        section 8 program, not more than $82,916,000;
                            ``(x) for conversions for leased housing 
                        contracts under section 23 (as in effect 
                        immediately before the date of enactment of the 
                        Housing and Community Development Act of 1974) 
                        to assistance under section 8, not more than 
                        $3,960,000; and
                            ``(xi) for grants under section 24 for 
                        revitalization of severely distressed public 
                        housing, not more than $500,000,000.
                    ``(B) Fiscal year 1996.--Using the additional 
                budget authority provided under paragraph (6) and the 
                balances of budget authority that become available 
                during fiscal year 1996, the Secretary shall, to the 
                extent approved in appropriation Acts, reserve 
                authority to enter into obligations aggregating--
                            ``(i) for public housing grants under 
                        subsection (a)(2), not more than $966,140,000, 
                        of which amount not more than $270,890,000 
                        shall be available for Indian housing;
                            ``(ii) for assistance under section 8, not 
                        more than $1,998,000,000 of which $350,000 
                        shall be available for 15-year contracts for 
                        the Community Investment Demonstration program 
                        under section 6 of the HUD Demonstration Act of 
                        1993;
                            ``(iii) for modernization grants under 
                        section 14(k), not more than $3,543,200,000, 
                        including $15,000,000 for training and 
                        technical assistance;
                            ``(iv) for assistance under section 8 for 
                        loan management, not more than $150,000,000;
                            ``(v) for extensions of contracts expiring 
                        under section 8, such sums as may be necessary, 
                        which shall be for contracts for assistance 
                        under section 8 and vouchers under section 8(o) 
                        and for loan management assistance under such 
                        section;
                            ``(vi) for amendments to contracts under 
                        section 8, such sums as may be necessary;
                            ``(vii) for adjustments to annual 
                        contributions contracts for the costs of 
                        providing service coordinators under section 
                        9(a)(1)(B)(ii), not more than $55,000,000;
                            ``(viii) for public housing lease 
                        adjustments, $21,900,000;
                            ``(ix) for assistance under section 18(e) 
                        for replacement housing for units demolished or 
                        disposed of under section 18, and for eligible 
                        tenants where project owners opt out of the 
                        section 8 program, not more than $85,403,000;
                            ``(x) for conversions from leased housing 
                        contracts under section 23 (as in effect 
                        immediately before the date of enactment of the 
                        Housing and Community Development Act of 1974) 
                        to assistance under section 8, not more than 
                        $3,960,000; and
                            ``(xi) for grants under section 24 for 
                        revitalization of severely distressed public 
                        housing, not more than $515,000,000.''.

SEC. 232. PUBLIC HOUSING OPERATING SUBSIDIES.

    Section 9(c) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(c)) is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated for purposes of providing annual 
        contributions under this section $2,950,000,000 for fiscal year 
        1995 and $3,038,500,000 for fiscal year 1996.'';
            (2) in paragraph (2), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''; and
            (3) in paragraph (3), by striking ``1993 and 1994'' and 
        inserting ``1995 and 1996''.

SEC. 233. FAMILY SELF-SUFFICIENCY PROGRAM.

    The third sentence of section 23(h)(2) of the United States Housing 
Act of 1937 (42 U.S.C. 1437u(h)(2)) is amended to read as follows: ``Of 
amounts appropriated under section 9(c), $8,400,000 for fiscal year 
1995 and $8,652,000 for fiscal year 1996 may be used for costs under 
this paragraph.''.

SEC. 234. FAMILY INVESTMENT AND ECONOMIC OPPORTUNITY CENTERS.

    Section 22 of the United States Housing Act of 1937 (42 U.S.C. 
1437t) is amended to read as follows:

``SEC. 22. FAMILY INVESTMENT AND ECONOMIC OPPORTUNITY CENTERS

    ``(a) Purpose.--The purpose of this section is to provide low-
income households and families living in or near public housing with 
better access to educational and employment opportunities to achieve 
self-sufficiency by--
            ``(1) developing facilities in or near public housing for 
        training and support services;
            ``(2) mobilizing public and private resources to expand and 
        improve the delivery of such services;
            ``(3) providing funding for such essential training and 
        support services that cannot otherwise be funded; and
            ``(4) providing services which will link low-income 
        families with jobs generated by housing and community 
        development assistance as required under section 3 of the 
        Housing and Urban Development Act of 1968.
    ``(b) Eligible Applicants.--The Secretary may make grants to State 
or local governments, to their agencies, public housing agencies 
(including Indian housing authorities), public or private nonprofit 
organizations or institutions (including community action agencies), or 
public or private entities that are administering or will administer 
family investment or economic opportunity centers that meet the 
purposes expressed in subsection (a).
    ``(c) Eligible Activities.--A grant under this section may be used 
to support activities, including--
            ``(1) establishing family investment or economic 
        opportunity centers through--
                    ``(A) the renovation, conversion, or combination of 
                vacant dwelling units in a public housing project to 
                create common areas to accommodate the provision of 
                supportive services;
                    ``(B) the renovation of existing common areas in a 
                public housing project to accommodate the provision of 
                supportive services; and
                    ``(C) the renovation, acquisition, or construction 
                of facilities near the premises of public housing 
                projects to accommodate the provision of supportive 
                services; and
            ``(2) providing services to low-income residents living in 
        or around public housing through--
                    ``(A) the provision of not more than 15 percent of 
                the cost of the supportive services only if the 
                applicant demonstrates to the satisfaction of the 
                Secretary that--
                            ``(i) the supportive services are 
                        appropriate to improve the access of the 
                        eligible residents to employment and education 
                        opportunities; and
                            ``(ii) the applicant has made diligent 
                        efforts to use or obtain other available 
                        resources to fund or provide services; and
                    ``(B) the employment of service coordinators, 
                subject to such minimum qualifications and standards as 
                the Secretary may establish, who may be responsible 
                for--
                            ``(i) assessing the training, service 
                        needs, and education of eligible residents;
                            ``(ii) working with service providers to 
                        coordinate the provision of services and tailor 
                        such services to the needs and characteristics 
                        of eligible public housing residents;
                            ``(iii) establishing a job bank of 
                        positions in connection with programs subject 
                        to this section;
                            ``(iv) providing access to services for 
                        persons having no or limited proficiency in 
                        English;
                            ``(v) assisting residents in the 
                        preparation of job applications or applications 
                        for educational programs;
                            ``(vi) assisting contractors, contractor 
                        associations, and joint labor-management 
                        committees to develop and fund training and 
                        apprenticeship initiatives and programs;
                            ``(vii) providing information about the 
                        requirements of section 3 of the Housing and 
                        Urban Development Act of 1968 and economic 
                        opportunities to resident councils, resident 
                        management corporations, neighborhood groups, 
                        and community-based organizations;
                            ``(viii) providing links with related 
                        government and private programs that fund the 
                        startup costs of businesses;
                            ``(ix) mobilizing public and private 
                        resources to ensure that the supportive 
                        services identified pursuant to subsection 
                        (g)(2) can be funded over the time period under 
                        such subsection;
                            ``(x) performing such other duties and 
                        functions that the Secretary determines are 
                        appropriate to provide families living in or 
                        near public housing with better access to 
                        educational and employment opportunities; and
                            ``(xi) identifying opportunities for low-
                        income residents living in or near public 
                        housing to access jobs created by Federal 
                        housing and community development programs.
    ``(d) Selection Criteria.--The Secretary shall establish selection 
criteria for grants under this section, which shall take into account--
            ``(1) the demonstrated ability of the applicant to provide 
        or access the supportive services identified under subsection 
        (g)(2);
            ``(2) the need for such services in the applicant's service 
        area;
            ``(3) the extent to which the renovation, conversion, and 
        combination activities are appropriate and necessary to 
        facilitate the provision of such services;
            ``(4) the extent to which the applicant has demonstrated 
        that such services will be provided for the period identified 
        under subsection (g)(2);
            ``(5) the extent to which the applicant has a good record 
        of maintaining and operating public housing or other Federal 
        programs;
            ``(6) the ability of the applicant to--
                    ``(A) develop, provide or access employment 
                development skills to low-income persons;
                    ``(B) coordinate and utilize existing public and 
                private training, employment, and business assistance 
                funds or services; and
                    ``(C) establish or maintain working relationships 
                with unions or other construction trade associations, 
                and public and private employers; and
            ``(7) any other factors that the Secretary determines to be 
        appropriate to ensure that amounts made available under this 
        section are used effectively.
    ``(e) Employment of Public Housing Residents.--Each applicant 
shall, to the maximum extent practicable, employ public housing 
residents to provide the services assisted under this section or from 
other sources and the provision of supportive services under this 
section shall be considered the provision of housing assistance for 
purposes of section 3 of the Housing and Urban Development Act of 1968. 
Such persons shall be paid at a rate not less than the highest of--
            ``(1) the minimum wage that would be applicable to the 
        employee under the Fair Labor Standards Act of 1938, if section 
        6(a)(1) of such Act applied to the resident and if the resident 
        were not exempt under section 13 of such Act;
            ``(2) the State or local minimum wage for the most nearly 
        comparable covered employment; or
            ``(3) the prevailing rates of pay for persons employed in 
        similar public occupations by the same employer.
    ``(f) Allocation of Grant Amounts.--Assistance under this section 
shall be allocated by the Secretary among approvable applications on a 
competitive basis.
    ``(g) Applications.--Applications for assistance under this section 
shall be submitted in such form and in accordance with such procedures 
as the Secretary shall establish. Each application for assistance shall 
contain--
            ``(1) a description of activities to be carried out under 
        subsection (c)(1);
            ``(2) a description of the supportive services that are to 
        be provided over a 5-year period (or such longer period that 
        the Secretary determines to be appropriate if assistance is 
        provided for activities under subsection (c) that involve 
        substantial rehabilitation);
            ``(3) a firm commitment of assistance from 1 or more 
        sources ensuring that the supportive services will be provided 
        for not less than 1 year following the completion of activities 
        assisted under subsection (c);
            ``(4) a description of public or private sources of 
        assistance that can reasonably be expected to fund or provide 
        supportive services for the entire period specified under 
        paragraph (2), including evidence of any intention to provide 
        assistance expressed by State and local governments, private 
        foundations, and other organizations (including profit and 
        nonprofit organizations);
            ``(5) certification from the appropriate State or local 
        agency (as determined by the Secretary) that--
                    ``(A) the provision of supportive services 
                described in paragraph (2) is well designed to provide 
                resident families better access to educational and 
                employment opportunities; and
                    ``(B) there is a reasonable likelihood that such 
                services will be funded or provided for the entire 
                period specified in paragraph (2); and
            ``(6) any other information or certifications that the 
        Secretary determines are necessary or appropriate to achieve 
        the purposes of this section.
    ``(h) Treatment of Income.--No service provided to a public housing 
resident under this section may be treated as income for the purpose of 
any other program or provision of Federal or State law.
    ``(i) Reports.--
            ``(1) To secretary.--Each public housing agency receiving a 
        grant under this section shall submit to the Secretary, in such 
        form and at such time as the Secretary shall prescribe, an 
        annual progress report describing and evaluating the use of 
        grant amounts received under this section.
            ``(2) To congress.--The Secretary shall submit to the 
        Congress annually, as a part of the report of the Secretary 
        under section 8 of the Department of Housing and Urban 
        Development Act, an evaluation of the effectiveness of 
        activities carried out with grants under this section in such 
        fiscal year. Such report shall summarize the progress reports 
        submitted pursuant to paragraph (1).
    ``(j) Definition of Supportive Services.--For purposes of this 
section, the term `supportive services' means new or significantly 
expanded services that the Secretary determines are essential to 
providing families living with children in public housing with better 
access to educational and employment opportunities. Such services may 
include--
            ``(1) child care;
            ``(2) employment training and counseling;
            ``(3) literacy training;
            ``(4) computer skills training;
            ``(5) education, including assistance in the attainment of 
        certificates of high school equivalency;
            ``(6) substance abuse programs; and
            ``(7) other appropriate services.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 in fiscal year 1995 
and $51,500,000 in 1996.
    ``(l) 5 Percent Set-Aside.--The Secretary may not use more than 5 
percent of the amounts appropriated under subsection (j) to enter into 
contracts with eligible applicants for innovative public/private 
initiatives that support economic development and increased self-
sufficiency of public housing residents. Eligible activities related to 
economic development and self-sufficiency include such programs as 
counseling, treatment for substance abuse, child care, remedial 
education, job training, and development of resident businesses.''.

SEC. 235. RESIDENT MANAGEMENT AND TENANT OPPORTUNITY PROGRAM.

    Section 20 of the United States Housing Act of 1937 (42 U.S.C. 
1437r) is amended--
            (1) by striking the section heading and inserting the 
        following:

        ``resident management and tenant opportunity program'';

            (2) in subsection (b), by striking ``resident management 
        program'' each place it appears and inserting ``resident 
        management and tenant opportunity program''; and
            (3) in subsection (f)--
                    (A) by striking the subsection heading and 
                inserting the following:
    ``(f) Resident Management and Tenant Opportunity Assistance.--'';
                    (B) in paragraph (1), by adding at the end the 
                following: ``In addition, the Secretary may provide 
                financial assistance to resident management 
                corporations or resident councils for activities 
                sponsored by resident organizations for job training, 
                economic development, security, and other self-
                sufficiency activities beyond those related to the 
                management of public housing. Resident councils or 
                resident management corporations may jointly apply for 
                financial assistance at their discretion with public 
                housing agencies. Only resident councils and resident 
                management corporations may be recipients of such 
                assistance.'';
                    (C) in paragraph (2), by striking ``$100,000'' and 
                inserting ``$250,000'';
                    (D) by striking paragraph (3) and inserting the 
                following:
            ``(3) Funding.--Of any amounts made available for financial 
        assistance under section 14, the Secretary may use to carry out 
        this subsection $50,000,000 for fiscal year 1995 and 
        $50,000,000 for fiscal year 1996.''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(5) Five percent set-aside.--
                    ``(A) In general.--The Secretary may use not more 
                than 5 percent of the amounts appropriated under 
                paragraph (3) to enter into contracts with--
                            ``(i) various entities for monitoring, 
                        evaluation, technical assistance, and 
                        information dissemination in connection with 
                        activities under this subsection; and
                            ``(ii) public housing agencies, resident 
                        organizations, and public or private entities 
                        for innovative public/private initiatives that 
                        support the increased self-sufficiency of 
                        public housing residents.
                    ``(B) Activities included.--Eligible activities 
                related to increased self-sufficiency under 
                subparagraph (A)(ii) may include such programs as 
                counseling, treatment for substance abuse, child care, 
                remedial education, and job training.''.

SEC. 236. INDIAN HOUSING LOAN GUARANTEE PROGRAM.

    (a) Limitation on Outstanding Aggregate Principal Amount.--Section 
184(i)(5)(C) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(5)(C)) is amended--
            (1) by striking ``fiscal years 1993 and 1994'' and 
        inserting ``fiscal years 1995 and 1996''; and
            (2) by striking ``not exceeding'' and all that follows, and 
        inserting ``not exceeding $22,388,000 for fiscal year 1995 and 
        $22,388,000 for fiscal year 1996, to the extent provided in 
        appropriation Acts.''.
    (b) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a(i)(7)) is amended to read as follows:
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to the Guarantee Fund to carry 
        out this section, $3,000,000 for fiscal year 1995 and 
        $3,000,000 for fiscal year 1996.''.

                       Subtitle E--Applicability

SEC. 241. APPLICABILITY OF PUBLIC HOUSING AMENDMENTS TO INDIAN HOUSING.

    (a) Amendment.--Section 201(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437aa(b)) is amended to read as follows:
    ``(b) Applicability of Title I.--Except as otherwise provided by 
law, the provisions of title I shall apply to low-income housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority.''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) shall not affect provisions of the United States Housing Act of 
1937 that were made applicable to public housing developed or operated 
pursuant to a contract between the Secretary and an Indian housing 
authority in accordance with section 201(b)(2) of such Act, as it 
existed before the effective date of this section.
    (c) Applicability of Other Laws.--The provisions of section 955(b) 
of the Cranston-Gonzalez National Affordable Housing Act, sections 
103(a)(1), 112, 114, 116, 118, 903, and 927 of the Housing and 
Community Development Act of 1992, and sections 301, 302, 303, and 304 
of the Multifamily Housing Property Disposition Reform Act of 1994 
shall apply to public housing developed or operated pursuant to a 
contract between the Secretary and an Indian housing authority.
    (d) Applicability to Volunteer Services.--The application of 
section 955(b) of the Cranston-Gonzalez National Affordable Housing to 
public housing developed or operated pursuant to a contract between the 
Secretary and an Indian housing authority shall apply to any volunteer 
services provided before, on, or after the date of enactment of this 
Act, except that such application may not be construed to require the 
repayment of any wages paid before the date of enactment of this Act 
for services provided before such date.

      Subtitle F--Termination of Certain Assisted Housing Programs

SEC. 251. TERMINATION OF CERTAIN ASSISTED HOUSING PROGRAMS.

    (a) Major Reconstruction of Obsolete Public Housing Projects.--
            (1) Repeal.--The United States Housing Act of 1937 (42 
        U.S.C. 1437 et seq.) is amended--
                    (A) by striking section 5(j)(2) and inserting the 
                following:
    ``(2) [Repealed.]'';
                    (B) in section 14(c)(4), by inserting after 
                ``(5)(j)(2)'' the following: ``, as such section 
                existed before the effective date of title I of the 
                Housing Choice and Community Investment Act of 1994''; 
                and
                    (C) in section 18(a)(3), by inserting after 
                ``(5)(j)(2)'' the following: ``, as such section 
                existed before the effective date of title I of the 
                Housing Choice and Community Investment Act of 1994''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date on which all funds appropriated 
        to carry out section 5(j)(2) of the United States Housing Act 
        have been expended.
            (3) Flexibility provision.--Upon the request of the public 
        housing agency, the Secretary may authorize the use of any 
        funding under section 5(j)(2) of the United States Housing Act 
        of 1937, for other development uses in conjunction with any 
        grant that was reserved or obligated pursuant to section 
        5(j)(2) of the United States Housing Act of 1937, as in effect 
        on or after the date of enactment of the Housing and Community 
        Development Act of 1992.
    (b) Choice in Public Housing Management.--Section 25 of the United 
States Housing Act of 1937 (42 U.S.C. 1437w) is hereby repealed.
    (c) Hope for Public and Indian Housing Homeownership.--
            (1) Repeal.--Title III of the United States Housing Act of 
        1937 (42 U.S.C. 1437aaa et seq.) is repealed effective October 
        1, 1996.
            (2) Conforming amendments.--
                    (A) Savings provision.--The last sentence of 
                section 5(h) of the United States Housing Act of 1937 
                (42 U.S.C. 1437c(h)) is amended by inserting ``, as 
                such section existed before the effective date of title 
                I of the Housing Choice and Community Investment Act of 
                1994'' before the period.
                    (B) Rental certificates and other existing housing 
                programs.--Section 8(b)(2) of the United States Housing 
                Act of 1937 (42 U.S.C. 1437f(b)(2)) is hereby repealed.
                    (C) Rental vouchers.--Section 8(o)(9) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f(o)(9)) is 
                hereby repealed.
                    (D) Public and indian housing modernization.--
                Section 14(n) of the United States Housing Act of 1937 
                (42 U.S.C. 1437l(n)) is hereby repealed.
                    (E) Demolition and disposition of public housing.--
                Section 18(f) of the United States Housing Act of 1937 
                (42 U.S.C. 1437p(f)) is hereby repealed.
                    (F) Public housing resident management.--Section 
                20(f)(4) of the United States Housing Act of 1937 (42 
                U.S.C. 1437r(f)(4)) is hereby repealed.
    (d) HOPE for Elderly Independence.--Section 803 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8012) is hereby 
repealed.
    (e) Indian Housing Early Childhood Demonstration Program.--Section 
518 of the Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 
1701z-6 note) is hereby repealed.
    (f) Public Housing One-Stop Perinatal Services.--Section 521 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437t 
note) is hereby repealed.

    Subtitle G--Midnight Basketball League Training and Partnership

SEC. 261. SHORT TITLE.

    This subtitle may be cited as the ``Midnight Basketball League 
Training and Partnership Act''.

SEC. 262. GRANTS FOR MIDNIGHT BASKETBALL LEAGUE TRAINING AND 
              PARTNERSHIP PROGRAMS.

    Section 520 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 11903a) is amended--
            (1) in the section heading by inserting ``and assisted'' 
        after ``public'';
            (2) in the subsection heading for subsection (a), by 
        inserting ``Public Housing'' before ``Youth''; and
            (3) by adding at the end the following new subsection:
    ``(l) Midnight Basketball League Training and Partnership 
Programs.--
            ``(1) Authority.--The Secretary shall make grants, to the 
        extent that amounts are approved in appropriations Acts under 
        paragraph (11), to--
                    ``(A) eligible entities to assist such entities in 
                carrying out midnight basketball league programs 
                meeting the requirements of paragraph (3); and
                    ``(B) eligible advisory entities to provide 
                technical assistance to eligible entities in 
                establishing and operating such midnight basketball 
                league programs.
            ``(2) Eligible entities.--
                    ``(A) In general.--Subject to subparagraph (B), 
                grants under paragraph (1)(A) may be made only to the 
                following eligible entities:
                            ``(i) Entities eligible under subsection 
                        (b) for a grant under subsection (a).
                            ``(ii) Nonprofit organizations providing 
                        employment counseling, job training, or other 
                        educational services.
                            ``(iii) Nonprofit organizations providing 
                        federally assisted low-income housing.
                    ``(B) Prohibition on second grants.--A grant under 
                paragraph (1)(A) may not be made to an eligible entity 
                if the entity has previously received a grant under 
                such paragraph, except that the Secretary may exempt an 
                eligible advisory entity from the prohibition under 
                this subparagraph in extraordinary circumstances.
            ``(3) Program requirements.--Each eligible entity receiving 
        a grant under paragraph (1)(A) shall establish a midnight 
        basketball league program as follows:
                    ``(A) Not less than 50 percent of the players in 
                the basketball league shall be residents of federally 
                assisted low-income housing or members of low-income 
                families (as such term is defined in section 3(b) of 
                the United States Housing Act of 1937).
                    ``(B) The program shall be designed to serve 
                primarily youths and young adults from a neighborhood 
                or community whose population has not less than 2 of 
                the following characteristics (in comparison with 
                national averages):
                            ``(i) A substantial problem regarding use 
                        or sale of illegal drugs.
                            ``(ii) A high incidence of crimes committed 
                        by youths or young adults.
                            ``(iii) A high incidence of persons 
                        infected with the human immunodeficiency virus 
                        or sexually transmitted diseases.
                            ``(iv) A high incidence of pregnancy or a 
                        high birth rate, among adolescents.
                            ``(v) A high unemployment rate for youths 
                        and young adults.
                            ``(vi) A high rate of high school drop-
                        outs.
                    ``(C) The program shall require each player in the 
                league to attend employment counseling, job training, 
                and other educational classes provided under the 
                program, which shall be held at specified times at or 
                near the site of the games.
                    ``(D) The program shall serve only youths and young 
                adults who demonstrate a need for such counseling, 
                training, and education provided by the program, in 
                accordance with criteria for demonstrating need, which 
                shall be established by the Secretary, in consultation 
                with the Advisory Committee.
                    ``(E) The basketball games of the league shall 
                generally be held between the hours of 10 p.m. and 2 
                a.m. at a location in the neighborhood or community 
                served by the program.
                    ``(F) The program shall seek sponsors for each team 
                in the basketball league. Sponsors shall be private 
                individuals or businesses in the neighborhood or 
                community served by the program who make financial 
                contributions to the program or participate in or 
                supplement the employment, job training, and 
                educational services provided to the players under the 
                program with additional training or educational 
                opportunities.
                    ``(G) The program shall comply with any criteria 
                established by the Secretary, in consultation with the 
                Advisory Committee established under paragraph (7).
                    ``(H) Administrators or organizers of the program 
                shall receive training and technical assistance 
                provided by eligible advisory entities receiving grants 
                under paragraph (6).
            ``(4) Grant amount limitations.--
                    ``(A) Private contributions.--The Secretary may not 
                make a grant under paragraph (1)(A) to an eligible 
                entity that applies for a grant under this subsection 
                unless the applicant entity certifies to the Secretary 
                that the entity will supplement the grant amounts with 
                amounts of funds from non-Federal sources.
                    ``(B) Non-federal funds.--For purposes of this 
                paragraph, the term `funds from non-Federal sources' 
                includes amounts from nonprofit organizations, public 
                housing agencies, States, units of general local 
                government, and Indian housing authorities, private 
                contributions, any salary paid to staff (other than 
                from grant amounts under paragraph (1)(A)) to carry out 
                the program of the eligible entity, in-kind 
                contributions to carry out the program (as determined 
                by the Secretary after consultation with the Advisory 
                Committee), the value of any donated material, 
                equipment, or building, the value of any lease on a 
                building, the value of any utilities provided, and the 
                value of any time and services contributed by 
                volunteers to carry out the program of the eligible 
                entity.
                    ``(C) Prohibition on substitution of funds.--Grant 
                amounts under paragraph (1)(A) and amounts provided by 
                States and units of general local government to 
                supplement grant amounts may not be used to replace 
                other public funds previously used, or designated for 
                use, under this section.
                    ``(D) Maximum and minimum grant amounts.--
                            ``(i) In general.--The Secretary may not 
                        make a grant under paragraph (1)(A) to any 
                        single eligible entity in an amount less than 
                        $55,000 or exceeding $130,000, except as 
                        provided in clause (ii).
                            ``(ii) Exception for large leagues.--In the 
                        case of a league having more than 80 players, a 
                        grant under paragraph (1)(A) may exceed 
                        $130,000, but may not exceed the amount equal 
                        to 35 percent of the cost of carrying out the 
                        midnight basketball league program.
            ``(5) Selection.--The Secretary, in consultation with the 
        Advisory Committee, shall select eligible entities that have 
        submitted applications to receive grants under paragraph (1)(A) 
        in accordance with such application procedures as the Secretary 
        shall establish by regulation. The Secretary, in consultation 
        with the Advisory Committee, shall establish criteria for 
        selection of applicants to receive such grants. The Secretary's 
        selection process shall ensure program participation in city, 
        suburban, and rural areas.
            ``(6) Technical assistance grants.--Technical assistance 
        grants under paragraph (1)(B) shall be made as follows:
                    ``(A) Eligible advisory entities.--Technical 
                assistance grants may be made only to entities that--
                            ``(i) are experienced and have expertise in 
                        establishing, operating, or administering 
                        successful and effective programs for midnight 
                        basketball and employment, job training, and 
                        educational services similar to the programs 
                        under paragraph (3); and
                            ``(ii) have provided technical assistance 
                        to other entities regarding establishment and 
                        operation of such programs.
                    ``(B) Use.--Amounts received under technical 
                assistance grants shall be used to establish centers 
                for providing technical assistance to entities 
                receiving grants under paragraph (1)(A) of this 
                subsection and subsection (a) regarding establishment, 
                operation, and administration of effective and 
                successful midnight basketball league programs under 
                this subsection and subsection (c)(3).
                    ``(C) Number and amount.--To the extent that 
                amounts are provided in appropriations Acts under 
                paragraph (11)(B) in each fiscal year, the Secretary 
                shall make technical assistance grants under paragraph 
                (1)(B). In each fiscal year that such amounts are 
                available the Secretary shall make 4 such grants, as 
                follows:
                            ``(i) 2 grants shall be made to eligible 
                        advisory entities for development of midnight 
                        basketball league programs in public housing 
                        projects.
                            ``(ii) 2 grants shall be made to eligible 
                        advisory entities for development of midnight 
                        basketball league programs in suburban or rural 
                        areas.
                Each grant shall be in an amount not exceeding $25,000.
            ``(7) Advisory committee.--The Secretary shall appoint an 
        Advisory Committee to assist the Secretary in providing grants 
        under this subsection. The Advisory Committee shall be composed 
        of not more than 7 members, including the following:
                    ``(A) Individuals involved in managing or 
                administering midnight basketball programs that the 
                Secretary determines have been successful and 
                effective.
                    ``(B) A representative of the Center for Substance 
                Abuse Prevention of the Public Health Service, 
                Department of Health and Human Services, who is 
                involved in administering the grant program for 
                prevention, treatment, and rehabilitation model 
                projects for high risk youth under section 509A of the 
                Public Health Service Act (42 U.S.C. 290aa-8), who 
                shall be selected by the Secretary of Health and Human 
                Services.
                    ``(C) A representative of the Department of 
                Education, who shall be selected by the Secretary of 
                Education.
                    ``(D) A representative of the Department of Health 
                and Human Services, who shall be selected by the 
                Secretary of Health and Human Services from among 
                officers and employees of the Department involved in 
                issues relating to high-risk youth.
            ``(8) Reports.--The Secretary shall require each eligible 
        entity receiving a grant under paragraph (1)(A) and each 
        eligible advisory entity receiving a grant under paragraph 
        (1)(B) to submit to the Secretary, for each year in which grant 
        amounts are received by the entity, a report describing the 
        activities carried out with such amounts.
            ``(9) Study.--To the extent amounts are provided under 
        appropriation Acts pursuant to paragraph (11)(C), the Secretary 
        shall make a grant to one entity qualified to carry out a study 
        under this paragraph. The entity shall use such grant amounts 
        to carry out a scientific study of the effectiveness of 
        midnight basketball league programs under paragraph (3) of 
        eligible entities receiving grants under paragraph (1)(A). The 
        Secretary shall require such entity to submit a report 
        describing the study and any conclusions and recommendations 
        resulting from the study to the Congress and the Secretary not 
        later than the expiration of the 2-year period beginning on the 
        date that the grant under this paragraph is made.
            ``(10) Definitions.--For purposes of this subsection--
                    ``(A) the term `Advisory Committee' means the 
                Advisory Committee established under paragraph (7);
                    ``(B) the term `eligible advisory entity' means an 
                entity described in paragraph (6)(A);
                    ``(C) the term `eligible entity' means an entity 
                described in paragraph (2)(A);
                    ``(D) the term `federally assisted low-income 
                housing' has the meaning given the term in section 5126 
                of the Public and Assisted Housing Drug Elimination Act 
                of 1990; and
                    ``(E) the term `Secretary', unless otherwise 
                specified, means the Secretary of Housing and Urban 
                Development.
            ``(11) Authorization of appropriations.--There are 
        authorized to be appropriated--
                    ``(A) for grants under paragraph (1)(A), $2,650,000 
                for fiscal year 1996;
                    ``(B) for technical assistance grants under 
                paragraph (1)(B), $100,000 for fiscal year 1996; and
                    ``(C) for a study grant under paragraph (9), 
                $250,000 for each of the fiscal years 1995 and 1996.''.

SEC. 263. PUBLIC HOUSING MIDNIGHT BASKETBALL LEAGUE PROGRAMS.

    Section 520(c) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 11903a(c)) is amended by adding at the end the following 
new paragraph:
            ``(3) Midnight basketball league programs.--Notwithstanding 
        any other provision of this subsection and subsection (d), a 
        grant under this section may be used to carry out any youth 
        sports program that meets the requirements of a midnight 
        basketball league program under subsection (l)(4) (not 
        including subparagraph (B) of such subsection) if the program 
        serves primarily youths and young adults from the public 
        housing project in which the program assisted by the grant is 
        operated.''.

                  Subtitle H--Miscellaneous Provisions

SEC. 271. STUDY OF OPERATING SUBSIDY PROGRAM.

    (a) Study.--The Secretary shall conduct a study of the operating 
subsidy program under section 9 of the United States Housing Act of 
1937. The study shall include examination of--
            (1) how the program is being administered;
            (2) alternatives to the current funding mechanism of the 
        program; and
            (3) changes to improve the effectiveness of the program.
    (b) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to the Congress a 
report containing the results of the study conducted under subsection 
(a).

SEC. 272. COMPOSITION OF BOARDS OF DIRECTORS OF PHAS.

    Section 2 of the United States Housing Act of 1937 (42 U.S.C. 1437) 
is amended--
            (1) by striking ``Sec. 2.'' and inserting ``Sec. 2. (a) In 
        General.--''; and
            (2) by adding at the end the following new subsection:
    ``(b) Required Membership.--Each board of directors of a public 
housing agency shall contain not less than 1 member who is a resident 
of a project operated by the public housing agency.''.

SEC. 273. ADVANCED TRAINING IN PUBLIC HOUSING MANAGEMENT.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish and conduct 
        an annual public housing management training institute to 
        provide instruction on the following subjects, as they relate 
        to public housing:
                    (A) Public housing management.
                    (B) Crime prevention and tenant security.
                    (C) Real estate law and procedure.
                    (D) Tax credit financing of low- and moderate-
                income housing.
                    (E) Financial management.
                    (F) Such other subjects as the Secretary may 
                determine.
            (2) Contract authority.--The Secretary may contract with a 
        private entity to conduct the training institute established 
        under this subsection.
    (b) Participants.--
            (1) Competition.--The Secretary shall establish a 
        competition to select participants in each training institute 
        conducted under this section. The selection criteria for such 
        competition shall be designed to ensure that the participants 
        for each training institute include, to the extent possible--
                    (A) executive directors of public housing agencies 
                and their principal deputies;
                    (B) senior public housing executives and managers;
                    (C) members of boards of directors of public 
                housing agencies; and
                    (D) public housing tenant leaders.
            (2) Participants limited.--Not more than 150 participants 
        shall attend an executive training institute held pursuant to 
        this section.
    (c) Authorization.--There are authorized to be appropriated to 
carry out this section such sums as may be necessary for fiscal years 
1995 and 1996.

SEC. 274. DEREGULATION OF PUBLIC HOUSING AGENCIES.

    (a) Public Housing Agencies That Own and Operate Less Than 100 
Dwelling Units.--
            (1) Public housing management reform.--Section 6(j)(1) of 
        the United States Housing Act of 1937 (42 U.S.C. 1437d(j)(1)) 
        is amended--
                    (A) by redesignating subparagraphs (A) through (H) 
                as clauses (i) through (viii), respectively;
                    (B) by inserting immediately before clause (i), as 
                redesignated, the following new subparagraph:
                    ``(A) For public housing agencies that own and 
                operate 100 or more public housing dwelling units--''; 
                and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) For public housing agencies that own and 
                operate fewer than 100 public housing dwelling units:
                            ``(i) The number and percentage of 
                        vacancies within an agency's inventory, 
                        including the progress that an agency has made 
                        within the previous 3 years to reduce such 
                        vacancies.
                            ``(ii) The percentage of rents uncollected.
                            ``(iii) The ability of the agency to 
                        produce and use accurate and timely records of 
                        monthly income and expenses and to maintain at 
                        least a 3-month reserve.
                            ``(iv) The annual inspection of occupied 
                        units and the agency's ability to respond to 
                        maintenance work orders.
                            ``(v) In the case of agencies receiving 
                        funds under section 14 of this Act, the 
                        percentage of such funds that are under annual 
                        contributions contract to the public housing 
                        agency and that remain unobligated after 3 
                        years.''.
            (2) Operating subsidy.--Section 9(a) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437g(a)) is amended--
                    (A) in the first sentence of paragraph (3)(A), by 
                inserting immediately after ``payments under this 
                section'' the following: ``to public housing agencies 
                that own and operate 100 or more public housing 
                dwelling units''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(4) Formula.--
                    ``(A) In general.--The Secretary shall make 
                payments under this section (except for payments under 
                paragraph (1)(B)) to public housing agencies that own 
                and operate fewer than 100 public housing dwelling 
                units on the basis of a formula contained in 
                regulations issued by the Secretary after notice and 
                opportunity for public comment.
                    ``(B) Requirements.--The formula described in 
                subparagraph (A) shall--
                            ``(i) be established in consultation with 
                        public housing agencies, be contained in a 
                        regulation promulgated by the Secretary before 
                        the start of any fiscal year to which it 
                        applies;
                            ``(ii) remain in effect for the duration of 
                        such year without change; and
                            ``(iii) provide for a reasonable transition 
                        from the method for determining operating 
                        subsidy under paragraph (3) to the method 
                        contained in this paragraph.
                    ``(C) Three-year period for appeals.--The Secretary 
                shall afford agencies subject to this paragraph a 3-
                year period within which to appeal the methodology used 
                in the formula established pursuant to this paragraph 
                as it pertains to the agency.''.
    (b) High-Performing Public Housing Agencies.--
            (1) Retention of savings from efficient management.--
        Section 6(e) the United States Housing Act of 1937 (42 U.S.C. 
        1437d(e)) is amended to read as follows:
    ``(e) Treatment of Savings.--
            ``(1) In general.--Any income (other than rental or 
        investment income) generated by a high-performing public 
        housing agency that exceeds the income estimated by the agency 
        to be generated, according to the agency's annual operating 
        budget, shall be excluded in subsequent years in calculating 
        the amount of the operating subsidy provided under section 9 to 
        the agency. Such savings shall be retained by the agency for 
        other housing purposes.
            ``(2) High-performing public housing agency.--For purposes 
        of paragraph (1), the term `high-performing public housing 
        agency' means, with respect to a year, a public housing agency 
        that has been designated pursuant to subsection (j) as a high-
        performing public housing agency for the most recent fiscal 
        year ending before the commencement of such year.''.
            (2) Waiver of rules and reports.--Section 6(j) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437d(j)), as 
        amended by subsection (a), is amended by adding at the end the 
        following new paragraph:
            ``(5) Waiver of rules and reports.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary may, for public housing 
                agencies designated pursuant to subsection (e) as high-
                performing public housing agencies with respect to a 
                fiscal year, waive (by regulation issued under 
                subparagraph (C)) the applicability for the ensuing 
                fiscal year of regulatory requirements otherwise 
                applicable to public housing agencies to the extent 
                appropriate, as determined by the Secretary, to 
                facilitate more efficient operation of such agencies.
                    ``(B) Exception.--The Secretary may not waive the 
                applicability of any provision--
                            ``(i) limiting occupancy of public housing 
                        to low-income families;
                            ``(ii) under section 18 requiring 
                        replacement of units in the case of demolition 
                        or disposition;
                            ``(iii) under the Uniform Relocation 
                        Assistance and Real Property Acquisition 
                        Policies Act of 1970;
                            ``(iv) that prohibits, or the purpose of 
                        which is to protect persons against, 
                        discrimination on the basis of race, color, 
                        religion, sex, marital status, national origin, 
                        age, or handicap, or that relates to fair 
                        housing or equal opportunity; or
                            ``(v) of chapter 75 of title 31, United 
                        States Code.
                    ``(C) Waiver of regulatory provisions.--Not later 
                than August 31, 1995, the Secretary shall publish in 
                the Federal Register a proposed rule providing for the 
                waiver of the regulatory provisions to be waived 
                pursuant to this paragraph and identifying such 
                provisions. The Secretary shall publish such proposed 
                rule at a time during fiscal year 1995 determined by 
                the Secretary to be sufficient to provide notice and an 
                opportunity for public comment before issuance of a 
                final rule under this paragraph.''.
    (c) PHMAP Modernization Factor.--Section 6(j)(1)(A)(ii) of such Act 
(42 U.S.C. 1437d(j)(1)(A)(ii)), as redesignated by subsection (a)(2), 
is amended to read as follows:
                            ``(ii) The percentage of funds under 
                        section 14 that are under annual contributions 
                        contract to the public housing agency and that 
                        remain unobligated after 3 years.''.

                        TITLE III--HOMEOWNERSHIP

     Subtitle A--Expanded Single Family Homeownership Opportunities

SEC. 301. MAXIMUM DOLLAR AMOUNT FOR FHA SINGLE FAMILY MORTGAGES.

    Subparagraph (A) of the first sentence of section 203(b)(2) of the 
National Housing Act (12 U.S.C. 1709(b)(2)) is amended by striking 
clause (ii) and all that follows through ``May 12, 1992;'' and 
inserting the following--
                            ``(ii) 75 percent of the dollar amount 
                        limitation determined under section 305(a)(2) 
                        of the Federal Home Loan Mortgage Corporation 
                        Act for a residence of the applicable size;
                except that the applicable dollar amount limitation in 
                effect for any area under this subparagraph may not be 
                less than the greater of the dollar amount limitation 
                in effect under this section for the area on the date 
                of enactment of the Housing Choice and Community 
                Investment Act of 1994 or 38 percent of the dollar 
                amount limitation determined under section 305(a)(2) of 
                the Federal Home Loan Mortgage Corporation Act for a 
                residence of the applicable size;''.

SEC. 302. STREAMLINED REFINANCING FOR HUD-HELD MORTGAGES.

    (a) Miscellaneous Housing Insurance.--Section 223 of the National 
Housing Act (12 U.S.C. 1715n(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (7), by striking the colon 
                immediately preceding the second proviso and all that 
                follows through ``; or'' and inserting a semicolon;
                    (B) in paragraph (8), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(9) given to refinance a mortgage held by the Secretary, 
        upon such terms and conditions as the Secretary may prescribe, 
        covering property on which there is located a 1- to 4-family 
        residence, or a 1-family unit in a condominium project, which 
        mortgage was formerly insured under this Act and subsequently 
        assigned to the Secretary pursuant to section 230 if--
                    ``(A) the mortgagor has not previously refinanced a 
                mortgage pursuant to this paragraph;
                    ``(B) the mortgagor has made all payments due under 
                the note secured by the existing mortgage and all 
                payments due under the note for not less than the 
                immediately preceding 6 months, or the mortgagor is 
                under a forbearance agreement and has made all payments 
                due under the note secured by the existing mortgage for 
                not less than the immediately preceding 6 months;
                    ``(C) the principal amount of the refinancing 
                mortgage does not exceed the outstanding principal 
                balance of the existing mortgage by more than 
                additional amounts owed by the mortgagor due to the 
                delinquency and to the receipt of assignment assistance 
                under section 230;
                    ``(D) the monthly payment due under the refinancing 
                mortgage does not exceed the monthly payment due under 
                the existing mortgage;
                    ``(E) the refinancing mortgage has a term of not 
                more than 12 years in excess of the unexpired term of 
                the assigned mortgage; and
                    ``(F) the refinancing mortgage is insured under 
                section 203(b) or 221(d)(2), at the option of the 
                mortgagee, or under section 234(c) in the case of a 
                condominium.''; and
            (2) by adding at the end the following new subsection:
    ``(h) Maturity and Principal Obligations of Mortgages.--A mortgage 
of the character described in paragraphs (1) through (6) of subsection 
(a) shall have a maturity and a principal obligation not in excess of 
the maximums prescribed under the applicable section or title of this 
Act, except that in no case may the principal obligation of a mortgage 
referred to in subsection (a)(5) exceed 90 percent of the appraised 
value of the mortgage property, and shall bear interest at such rate as 
may be agreed upon by the mortgagor and the mortgagee.''.
    (b) Implementation.--The Secretary may implement the authority to 
refinance a mortgage held by the Secretary under section 223(a)(9) of 
the National Housing Act, as added by subsection (a), by notice 
published in the Federal Register setting forth such requirements as 
may be necessary.
    (c) Limitations on Authority.--The authority to refinance a 
mortgage held by the Secretary under section 223(a)(9) of the National 
Housing Act, as added by subsection (a), shall terminate 30 months 
after the date of enactment of this Act.

SEC. 303. INNOVATIVE AFFORDABLE HOUSING DEMONSTRATIONS.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding at the end the following new section:

``SEC. 256. INNOVATIVE AFFORDABLE HOUSING DEMONSTRATIONS.

    ``(a) Authorization.--Notwithstanding any other provision of this 
Act, the Secretary may carry out demonstrations in accordance with this 
section that increase homeownership opportunities through--
            ``(1) the insurance under this title of alternative 
        mortgage instruments; and
            ``(2) partnerships with--
                    ``(A) the Federal Home Loan Mortgage Corporation;
                    ``(B) the Federal National Mortgage Association;
                    ``(C) the Federal Home Loan Banks and their 
                members;
                    ``(D) State and local housing finance agencies; and
                    ``(E) private mortgage insurance companies.
    ``(b) Eligible Demonstrations.--The demonstrations under this 
section shall be approved by the Secretary only if they increase 
homeownership opportunities for families with incomes that do not 
exceed the median income for the area (as determined by the Secretary 
and adjusted for family size), stabilize or revitalize neighborhoods, 
or address special needs by--
            ``(1) testing the pricing of alternative mortgage 
        instruments; or
            ``(2) facilitating partnerships between the Secretary and 
        the entities described in subsection (a)(2), pursuant to which 
        mortgage insurance provided by the Secretary will be used as a 
        credit enhancement in connection with the mortgage lending and 
        secondary market activities of such entities (including 
        activities under paragraph (1)), except that such partnerships 
        may be entered into only if they result in an equitable 
        allocation of the risks and benefits of the demonstration among 
        the Secretary and the participating entities.
Such demonstrations shall be subject to the requirements of section 
203(b) with respect to the maximum mortgage amount and downpayment 
requirements.
    ``(c) Limitations.--Each demonstration under this section may be 
approved for a term of not more than 3 years. The term of an insured 
mortgage or activity may extend beyond the term of the demonstration. 
The total mortgage amount insured pursuant to demonstrations under this 
section may not exceed $1,000,000,000 for each fiscal year.
    ``(d) Authorization.--There are authorized to be appropriated such 
sums as may be necessary to cover the costs to the Federal Government 
under section 502 of the Federal Credit Reform Act of 1990 resulting 
from losses apportioned to the Secretary under the demonstrations 
conducted pursuant to this section.
    ``(e) Reports to Congress.--
            ``(1) Initial report.--Prior to commencing each 
        demonstration under this section, the Secretary shall submit to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Banking, Finance and Urban Affairs 
        of the House of Representatives a report containing a detailed 
        description of the purpose and scope of the demonstration.
            ``(2) Progress report.--For each demonstration under this 
        section, the Secretary shall prepare an annual progress report 
        to be included in the annual management report submitted to 
        Congress by the Federal Housing Administration.
            ``(3) Final report.--Not later than 6 months after the 
        completion of each demonstration, the Secretary shall submit a 
        report to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Banking, Finance and Urban 
        Affairs of the House of Representatives describing the results 
        of the demonstration and making any recommendations for 
        legislation.
    ``(f) Definition.--For purposes of this section, the term 
`alternative mortgage instrument' means an instrument secured by an 
interest in residential real property, a dwelling, all stock allocated 
to a dwelling unit in a residential cooperative housing corporation, or 
a residential manufactured home (as that term is defined in section 603 
of the National Manufactured Home Construction and Safety Standards Act 
of 1974)--
            ``(1) in which the interest rate or finance charge may be 
        adjusted or renegotiated;
            ``(2) involving a fixed-rate, but which implicitly permits 
        rate adjustments by having the debt mature at the end of an 
        interval shorter than the term of the amortization schedule; or
            ``(3) involving any similar type of rate, method of 
        determining return, term, repayment, or other variation not 
        common to traditional fixed-rate, fixed-term transactions, 
        including transactions that involve the sharing of equity or 
        appreciation; described and defined by applicable 
        regulation.''.

SEC. 304. SINGLE FAMILY RISK-SHARING MORTGAGE INSURANCE PROGRAM.

    (a) Authorization.--Title II of the National Housing Act (42 U.S.C. 
1701 et seq.), as amended by section 303, is amended by adding the 
following new section:

``SEC. 257. SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL AGENCIES.

    ``(a) Authority.--
            ``(1) In general.--The Secretary may insure and make 
        commitments to insure mortgages on single family properties in 
        high cost areas under risk-sharing mortgage insurance programs 
        established with one or more States or State or local agencies 
        in accordance with this section. Only mortgages executed in 
        connection with the acquisition of a single family property or 
        the refinancing of a mortgage insured under this section shall 
        be eligible.
            ``(2) Risk-sharing.--Under the risk-sharing programs 
        authorized under paragraph (1), the Secretary shall insure a 
        portion of the mortgage and the State or the State or local 
        agency shall insure the remainder of the mortgage. In each 
        risk-sharing agreement between the Secretary and the State or 
        the State or local agency, the State or the State or local 
        agency shall be in a position subordinate to that of the 
        Secretary.
    ``(b) Purposes.--The purposes of the programs authorized under this 
section are--
            ``(1) to increase the availability of single family 
        mortgage financing in areas in which there is need for mortgage 
        insurance under this Act that cannot be met due to particularly 
        high average median house prices in the area; and
            ``(2) to foster arrangements with States and State and 
        local agencies to share the risk of insuring mortgages on 
        properties located in high cost areas.
    ``(c) Applications.--
            ``(1) Approval.--The Secretary may approve an application 
        submitted by a State or a State or local agency to establish a 
        risk-sharing program under this section, based on a 
        determination that the State or State or local agency has 
        demonstrated that the State or State or local agency--
                    ``(A) has the authority to participate in the risk-
                sharing mortgage insurance program;
                    ``(B) has carried out, or has the potential to 
                carry out, a financially sound, efficient, and 
                effective mortgage insurance program;
                    ``(C) has the ongoing administrative and financial 
                capacity necessary to carry out a program under this 
                section, including the capacity to maintain a top tier 
                or equivalent rating; and
                    ``(D) will set aside reserves or provide other 
                equivalent financial guarantees to cover its share of 
                losses in the program under this section.
            ``(2) Cancellation of approval.--
                    ``(A) In general.--The Secretary may cancel the 
                approval of a State or State or local agency made under 
                paragraph (1)--
                            ``(i) if the Secretary determines that the 
                        State or State or local agency has violated the 
                        requirements or procedures of the risk-sharing 
                        agreement between the State or State or local 
                        agency and the Secretary; or
                            ``(ii) for other good cause, as determined 
                        by the Secretary.
                    ``(B) Effective date.--A cancellation of approval 
                under this paragraph shall take effect on the later 
                of--
                            ``(i) the date on which the State or State 
                        or local agency receives notice from the 
                        Secretary of such cancellation; and
                            ``(ii) a date specified by the Secretary.
                    ``(C) Nonreviewability.--A decision by the 
                Secretary to cancel approval under this paragraph--
                            ``(i) shall be final and conclusive and 
                        shall not be subject to judicial review; and
                            ``(ii) shall not affect risk-sharing 
                        agreements between the Secretary and the State 
                        or State or local agency executed on or before 
                        the date of such cancellation.
    ``(d) Delegation of Authority To Insure.--The Secretary shall 
delegate the authority to insure and make commitments to insure the 
portion of mortgages to be insured by the Secretary under this section 
to a State or State or local agency pursuant to a risk-sharing 
agreement with the State or State or local agency. The risk-sharing 
agreement shall contain such terms and conditions to which the 
Secretary and the State or State or local agency agree.
    ``(e) Underwriting Standards and Loan Terms and Conditions.--For 
purposes of underwriting loans to be insured under this section, the 
State or State or local agency shall adopt underwriting standards and 
loan terms and conditions. Such standards, terms, and conditions shall 
be no less stringent than those required under section 203(b) and shall 
be subject to the approval of the Secretary.
    ``(f) Mortgage Insurance Premiums.--
            ``(1) In general.--The State or State or local agency shall 
        require the payment of mortgage insurance premiums by 
        mortgagors.
            ``(2) Sharing.--The Secretary shall establish policies and 
        procedures for the sharing of premiums between the Secretary 
        and the State or State or local agency, based on the relative 
        risk to, and administrative costs incurred by, the Secretary 
        and the State or State or local agency. The share of mortgage 
        insurance premiums paid to the Secretary shall not be less than 
        an amount necessary to cover the risk to, and administrative 
        costs incurred by, the Secretary.
    ``(g) Eligible Mortgages.--
            ``(1) Eligible high cost areas.--The Secretary may insure 
        mortgages under this section only if such mortgages cover 
        single family properties located in areas in which 95 percent 
        of the median 1-family house prices in the area exceeds the 
        maximum amount the Secretary may insure under section 
        203(b)(2)(A)(ii).
            ``(2) Limitations on mortgage amount.--
                    ``(A) Amount insured by the secretary.--The total 
                mortgage amount insured under this section by the 
                Secretary may not exceed an amount equal to the lesser 
                of--
                            ``(i) 80 percent of the appraised value of 
                        the property; or
                            ``(ii) the maximum amount the Secretary may 
                        insure under section 203(b) of this Act for the 
                        area (but not including any amount for a 
                        mortgage insurance premium).
                    ``(B) Maximum amount insured under this section.--
                The total principal amount of a mortgage insured under 
                this section--
                            ``(i) shall exceed the maximum amount the 
                        Secretary may insure under subparagraph (A) of 
                        the first sentence of section 203(b)(2) for the 
                        area; and
                            ``(ii) may not exceed the conforming loan 
                        limitation determined under section 305(a)(2) 
                        of the Federal Home Loan Mortgage Corporation 
                        Act for a residence of the applicable size, as 
                        adjusted annually.
                    ``(C) Amount insured by the state or state or local 
                agency.--The total mortgage amount insured under this 
                section by the State or State or local agency shall be 
                the difference between the mortgage amount and the 
                maximum amount the Secretary may insure under 
                subparagraph (A) of the first sentence of section 
                203(b)(2) for the area.
                    ``(D) Additional restriction.--The principal 
                obligation of a mortgage may not exceed the amount 
                equal to the sum of--
                            ``(i) the amount determined in accordance 
                        with subparagraph (B) of the first sentence of 
                        section 203(b)(2); and
                            ``(ii) the mortgage insurance premium.
            ``(3) Refinancing.--Notwithstanding paragraph (2), in the 
        case of refinancing of an existing mortgage insured under this 
        section, the principal obligation of a refinancing mortgage may 
        not exceed the amount equal to the sum of--
                            ``(i) the outstanding principal balance of 
                        the existing mortgage; and
                            ``(ii) any mortgage insurance premium.
    ``(h) Insurance Claims.--
            ``(1) In general.--In the case of a default and foreclosure 
        of a mortgage insured under this section, the mortgagee may 
        file a claim with the State or State or local agency for 
        insurance benefits in accordance with requirements established 
        by the State or State or local agency and approved by the 
        Secretary. The State or State or local agency shall pay the 
        full amount of the claim owed to the mortgagee. If the loss on 
        the insured mortgage exceeds the amount insured by the State or 
        State or local agency, the Secretary shall reimburse the State 
        or State or local agency for the difference.
            ``(2) General insurance fund.--The insurance of a mortgage 
        under this section by the Secretary shall be an obligation of 
        the General Insurance Fund created pursuant to section 519.
    ``(i) Inapplicability of the Assignment and Foreclosure Programs.--
Section 230 shall not apply to mortgages insured under a program 
authorized by this section. The Secretary shall not otherwise acquire 
any property securing a mortgage insured under this section.
    ``(j) Limitation.--The total mortgage amount insured under this 
section may not exceed $750,000,000 for each fiscal year.
    ``(k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Local agency.--The term `local agency' means an 
        agency of a unit of general local government, as defined by the 
        Secretary, that has the authority to participate with the 
        Secretary in the single family risk-sharing program under this 
        section, or an agency or instrumentality of a local agency if 
        the agency or instrumentality has such authority.
            ``(2) State agency.--The term `State agency' means an 
        agency of a State that has the authority to participate with 
        the Secretary in the single family risk-sharing program under 
        this section, or an agency or instrumentality of a State agency 
        if the agency or instrumentality has such authority.
            ``(3) Single family property.--The term `single family 
        property' means a property upon which there is located a 1- to 
        4-family dwelling designed principally for occupancy by the 
        borrower, and includes a condominium and a cooperative.
            ``(4) State.--The term `State' means the several States and 
        Puerto Rico, the District of Columbia, Guam, the Trust 
        Territory of the Pacific Islands, American Samoa, and the 
        Virgin Islands.''.
    (b) Implementation.--The Secretary shall, by proposed rule 
published in the Federal Register, establish such requirements as may 
be necessary to carry out this section. Not later than 12 months after 
the date of enactment of this Act, the Secretary shall issue final 
regulations based on the proposed rule after notice and opportunity for 
public comment.

SEC. 305. HOMEOWNERSHIP COUNSELING AND OUTREACH.

    (a) In General.--Section 106(a) of the Housing and Urban 
Development Act of 1968 (12 U.S.C. 1701x(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding clause (i), by 
                inserting ``or consortia of organizations'' after 
                ``organizations'';
                    (B) in clause (iii), by striking ``and'' at the 
                end;
                    (C) in clause (iv), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following new clause:
                            ``(v) the provision of outreach activities 
                        designed to improve the access of low- and 
                        moderate-income households to homeownership 
                        opportunities and sources of mortgage 
                        credit.'';
            (2) in the second sentence of paragraph (2)--
                    (A) by striking ``clause (iii)'' and inserting 
                ``clauses (iii) and (v)''; and
                    (B) by inserting after ``organizations'' the 
                following: ``or consortia of organizations''; and
            (3) by striking paragraph (3) and inserting the following:
            ``(3) Contracting authority.--The Secretary may contract 
        with national, State, or community-based entities, and 
        consortia of such entities, to carry out activities under 
        paragraph (1)(v). Contractors shall be selected on a 
        competitive basis, in accordance with selection criteria 
        determined by the Secretary. The contractors shall carry out 
        activities prescribed by the Secretary, including--
                    ``(A) leveraging Federal funds with other sources 
                of funding to support activities under the contractor's 
                counseling program, including leveraging private 
                resources for the purpose of assisting prospective 
                mortgagors achieve homeownership;
                    ``(B) conducting outreach and marketing to 
                prospective homebuyers, particularly those in 
                neighborhoods with a high proportion of low- and 
                moderate-income and minority renter households;
                    ``(C) implementing a coordinated prepurchase 
                homeownership strategy that--
                            ``(i) links other HUD-approved counseling 
                        providers and community-based organizations;
                            ``(ii) assists prospective homebuyers to 
                        repair credit;
                            ``(iii) educates potential homebuyers on 
                        the requirements of homeownership;
                            ``(iv) provides technical assistance;
                            ``(v) assists in the packaging of mortgage 
                        loan applications;
                            ``(vi) matches a family's resources with 
                        appropriate Government and private sector 
                        homeownership assistance programs; and
                            ``(vii) offers post-purchase and default-
                        prevention counseling; and
                    ``(D) working with the mortgage lending industry to 
                overcome mortgage credit barriers to potential 
                homebuyers.''.
    (b) Repeal of Termination Provisions.--Section 106 of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended by 
striking--
            (1) subsection (a)(3);
            (2) paragraphs (8) and (9) of subsection (c);
            (3) paragraphs (12) and (13) of subsection (d); and
            (4) subsection (f)(7).
    (c) Authorization of Appropriations.--Section 106 of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended by 
adding at the end the following new subsection:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated for the purposes of this section, $25,000,000 for fiscal 
year 1995, and $25,750,000 for fiscal year 1996. Any amounts so 
appropriated shall remain available until expended.''.

SEC. 306. DELEGATION OF INSURING AUTHORITY TO DIRECT ENDORSEMENT 
              MORTGAGEES.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as 
amended by sections 303 and 304, is amended by adding at the end the 
following new section:

``SEC. 258. DELEGATION OF INSURING AUTHORITY TO DIRECT ENDORSEMENT 
              MORTGAGEES.

    ``(a) In General.--
            ``(1) Authority.--The Secretary may delegate, to one or 
        more mortgagees approved by the Secretary under the direct 
        endorsement program, the authority of the Secretary under this 
        Act to insure mortgages involving property upon which there is 
        located a dwelling designed principally for occupancy by 1 to 4 
        families.
            ``(2) Factors considered in making determination.--In 
        determining whether to delegate authority to a mortgagee under 
        this subsection, the Secretary shall take into account--
                    ``(A) the experience and performance of the 
                mortgagee under the direct endorsement program;
                    ``(B) the default rate of insured mortgages 
                originated by the mortgagee compared to the default 
                rate of all insured mortgages in comparable markets; 
                and
                    ``(C) such other factors as the Secretary 
                determines appropriate to minimize risk of loss to the 
                insurance funds under this Act.
            ``(3) Restriction.--The Secretary shall not delegate 
        insuring authority pursuant to this section to a mortgagee 
        approved under the direct endorsement program if the mortgagee 
        has experienced a default rate on mortgages insured by the 
        Secretary that exceeds the national default rate on such 
        mortgages.
    ``(b) Indemnification.--
            ``(1) In general.--If the Secretary determines that a 
        mortgage insured by a mortgagee pursuant to a delegation of 
        authority under this section was not originated in accordance 
        with the requirements established by the Secretary, and the 
        Secretary pays an insurance claim with respect to the mortgage 
        within a reasonable period specified by the Secretary, the 
        Secretary shall require the mortgagee approved under this 
        section to indemnify the Secretary for the loss.
            ``(2) Fraud or misrepresentation.--Notwithstanding 
        paragraph (1), if fraud or misrepresentation is involved in 
        connection with the origination of the mortgage, the Secretary 
        shall require the mortgagee approved under this section to 
        indemnify the Secretary for the loss regardless of when the 
        insurance claim is paid.
    ``(c) Cancellation.--For a violation of requirements and procedures 
established by the Secretary or for other good cause, the Secretary may 
cancel a delegation of authority under this section by giving notice to 
the mortgagee. The cancellation shall be effective immediately upon 
receipt of the notice by the mortgagee. A decision by the Secretary to 
cancel a delegation shall be final and conclusive and shall not be 
subject to judicial review.
    ``(d) Regulations.--The Secretary shall issue regulations 
establishing requirements and procedures for the delegation of 
authority pursuant to this section, and procedures governing the 
indemnification of the Secretary by the mortgagee.''.

                  Subtitle B--Miscellaneous Provisions

SEC. 311. NATIONAL HOMEOWNERSHIP FUND DEMONSTRATION.

    Subtitle A of title III of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12851 et seq.) is amended to read as 
follows:

        ``Subtitle A--National Homeownership Fund Demonstration

``SEC. 301. SHORT TITLE.

    ``This subtitle may be cited as the `National Homeownership Fund 
Demonstration Act'.

``SEC. 302. PROGRAM AUTHORITY.

    ``(a) In General.--The Secretary may provide grants in accordance 
with the provisions of this subtitle to States, units of general local 
government, and private or public nonprofit organizations. Such grants 
shall be used to provide first-time homebuyers (including homebuyers 
buying shares in limited equity cooperatives) with one or more of the 
following types of assistance:
            ``(1) Closing cost assistance.--Assistance payments through 
        grantees to provide amounts for downpayments, closing, and 
        other costs payable at the time of closing.
            ``(2) Second mortgage assistance.--Assistance payments 
        through grantees to provide second mortgages.
            ``(3) Capitalization of revolving loan funds.--Revolving 
        loan funds established by grantees that are public agencies or 
        nonprofit organizations to provide homeownership assistance 
        consistent with the requirements of this subtitle. Such grants 
        shall be matched by an equal amount of State or local 
        investment. Any proceeds or repayments from loans made under 
        this paragraph shall be returned to the revolving loan fund 
        established under this paragraph to be used for purposes 
        related to this section.
    ``(b) Eligibility Requirements.--Assistance payments under this 
subtitle may be made only if the following requirements are met:
            ``(1) First-time homebuyer.--The homebuyer is an individual 
        who--
                    ``(A) (and whose spouse) has had no ownership in a 
                principal residence during the 3-year period ending on 
                the date of purchase of the property with respect to 
                which assistance payments are made under this subtitle;
                    ``(B) is a displaced homemaker who, except for 
                owning a home with his or her spouse or residing in a 
                home owned by the spouse, meets the requirements of 
                subparagraph (A); or
                    ``(C) is a single parent who, except for owning a 
                home with his or her spouse or residing in a home owned 
                by the spouse while married, meets the requirements of 
                subparagraph (A).
            ``(2) Maximum income of homebuyer.--The aggregate annual 
        income of the homebuyer and the members of the family of the 
        homebuyer residing with the homebuyer does not exceed 80 
        percent of the area median income adjusted for family size.
            ``(3) Principal residence.--The property securing the 
        mortgage is a single family residence, manufactured housing 
        unit, or unit in a cooperative or condominium and is the 
        principal residence of the homebuyer.
            ``(4) Maximum mortgage amount.--The principal obligation of 
        the first mortgage and any second mortgage assistance provided 
        under this subtitle does not exceed the principal amount 
        authorized to be insured with respect to the property under 
        section 203(b) of the National Housing Act.
    ``(c) Terms of Assistance.--
            ``(1) In general.--A grantee may provide assistance under 
        this subtitle in the form of grants, loans, or periodic 
        assistance payments.
            ``(2) Security.--If assistance payments under this subtitle 
        are secured by a lien on the property involved, such lien shall 
        be subordinate to all mortgages existing on the property on the 
        date on which the first assistance payment is made.
            ``(3) Repayment if property ceases to be principal 
        residence.--If the property for which assistance payments are 
        made ceases to be the principal residence of the first-time 
        homebuyer (or the family of the homebuyer), the grantee may 
        require the repayment of all or a portion of the assistance 
        payments.
    ``(d) Allocation.--
            ``(1) In general.--Each applicant shall submit an 
        application in such form and in accordance with such procedures 
        as the Secretary shall establish.
            ``(2) Minimum requirements.--An application under this 
        section shall contain a plan that describes how the applicant 
        will achieve the objectives of this subtitle. The application 
        shall contain a description of--
                    ``(A) the geographic area to be covered;
                    ``(B) the characteristics of the households to be 
                served;
                    ``(C) any other public and private resources 
                available in connection with assistance under this 
                subtitle;
                    ``(D) any secondary market involvement and 
                commitment;
                    ``(E) any nontraditional capital resources;
                    ``(F) the prepurchase counseling assistance and 
                post-purchase homeownership counseling to be made 
                available to the borrower;
                    ``(G) any restrictions on resale and profits;
                    ``(H) resources available to undertake 
                rehabilitation of properties when needed;
                    ``(I) the process for award and disbursement of 
                funds to borrowers; and
                    ``(J) the past history of the applicant in 
                undertaking similar projects.
            ``(3) Escrow for repairs.--An applicant may be required by 
        the Secretary to establish escrow procedures for the regular 
        collection of funds from borrowers for use by the borrower to 
        undertake rehabilitation of properties. Such procedures shall 
        include procedures for the return of escrow amounts to the 
        borrower upon the sale of the house, for emergencies, and for 
        other reasons as determined by the applicant and the borrower. 
        An escrow account shall bear interest at the passbook rate for 
        the benefit of the borrower.
            ``(4) Selection.--Amounts available in any fiscal year for 
        assistance under this subtitle shall be allocated to States 
        (including State agencies), units of general local government, 
        or public or private nonprofit organizations through a national 
        competition in accordance with criteria established by the 
        Secretary. These criteria shall include--
                    ``(A) the extent to which the applicant has 
                experience in providing homeownership assistance to 
                low- and moderate-income households;
                    ``(B) the extent of homeownership needs in the 
                area; and
                    ``(C) the lack of alternative forms of credit for 
                first-time homebuyers in the area.

``SEC. 303. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) Displaced homemaker.--The term `displaced homemaker' 
        means an individual who--
                    ``(A) is an adult;
                    ``(B) has not worked full-time in the labor force 
                for a number of years, but has during such years, 
                worked primarily without remuneration to care for the 
                home and family; and
                    ``(C) is unemployed or underemployed, as determined 
                by the Secretary, and is experiencing difficulty in 
                obtaining or upgrading employment.
            ``(2) Single parent.--The term `single parent' means an 
        individual who--
                    ``(A) is unmarried or legally separated from a 
                spouse; and
                    ``(B)(i) has 1 or more minor children for whom the 
                individual has custody or joint custody; or
                    ``(ii) is pregnant.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(4) State.--The term `State' means any of the States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, the Commonwealth of the Northern Mariana 
        Islands, Guam, the Virgin Islands, American Samoa, the Trust 
        Territory of the Pacific Islands, and any other territory or 
        possession of the United States.
            ``(5) Unit of general local government.--The term `unit of 
        general local government' has the same meaning as in section 
        102(a) of the Housing and Community Development Act of 1974.
            ``(6) Nonprofit organization.--The term `nonprofit 
        organization' means an organization--
                    ``(A) no part of the net earnings of which inures 
                to the benefit of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.

``SEC. 304. REPORT.

    ``Not later than 6 months following the last obligation of 
assistance by grantees under this subtitle, the Secretary shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Banking, Finance and Urban Affairs of the House of 
Representatives a report containing a description of the activities 
carried out under this subtitle and an analysis of the effectiveness of 
such assistance in assisting first-time homebuyers.

``SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for assistance payments 
under this subtitle $50,000,000 for fiscal year 1995 and $50,000,000 
for fiscal year 1996. Amounts appropriated under this section shall 
remain available until expended.''.

SEC. 312. SECTION 235 REFINANCING.

    Section 235(r) of the National Housing Act (12 U.S.C. 1715z(r)) is 
amended--
            (1) in paragraph (2)(C), by inserting before the semicolon 
        the following: ``, plus the costs incurred in connection with 
        the refinancing as described in paragraph (4)(B), to the extent 
        that the amount for those costs is not otherwise included in 
        the interest rate permitted by subparagraph (E), or paid by the 
        Secretary as authorized by paragraph (4)(B)'';
            (2) in paragraph (4)--
                    (A) by inserting ``and the mortgagee with respect 
                to the amount described in subparagraph (A)'' after 
                ``otherwise)''; and
                    (B) in subparagraph (A), by inserting ``and the 
                mortgagee'' after ``mortgagor''; and
            (3) by striking paragraph (5) and inserting the following:
            ``(5) Use of recaptured amounts.--The Secretary shall use 
        amounts of budget authority recaptured from assistance payments 
        contracts relating to mortgages that are being refinanced for 
        assistance payments contracts with respect to mortgages insured 
        under this subsection. The Secretary may also make such 
        recaptured amounts available for incentives under paragraph 
        (4)(A) and the costs incurred in connection with the 
        refinancing under paragraph (4)(B). For purposes of subsection 
        (c)(3)(A), the amount of recaptured budget authority that the 
        Secretary commits for assistance payments contracts relating to 
        mortgages insured under this subsection and for amounts paid 
        under paragraph (4) shall not be construed as `unused'.''.

SEC. 313. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.

    Section 513(a)(1) of the Housing and Community Development Act of 
1992 (42 U.S.C. 12712 note) is amended--
            (1) by striking ``5 States'' and inserting ``10 States''; 
        and
            (2) by adding at the end the following: ``In selecting 
        States under this paragraph, the Secretary shall give 
        preference to any State that has demonstrated a commitment to 
        participate in an energy efficient mortgage program in 
        conjunction with a government-sponsored housing enterprise.''.

                       Subtitle C--Authorizations

SEC. 321. LIMITATION ON GNMA GUARANTEES FOR MORTGAGE-BACKED SECURITIES.

    Section 306(g)(2) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1721(g)(2)) is amended in the first sentence by 
striking ``$107,700,000,000'' and all that follows before the period 
and inserting ``$142,000,000,000 during fiscal year 1995 and 
$142,000,000,000 during fiscal year 1996''.

SEC. 322. LIMITATION ON FHA INSURING AUTHORITY.

    Section 531(b) of the National Housing Act (12 U.S.C. 1735f-9(b)) 
is amended to read as follows:
    ``(b) Limitation on Insurance Authority.--Notwithstanding any other 
provision of law and subject only to the absence of qualified requests 
for insurance, to the authority provided in this Act, and to the 
limitation in subsection (a), the Secretary shall enter into 
commitments to insure mortgages under this Act with an aggregate 
principal amount of $120,900,000,000 during fiscal year 1995 and 
$120,900,000,000 during fiscal year 1996.''.

SEC. 323. HOPE AUTHORIZATION OF APPROPRIATIONS.

    Section 402 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12870) is amended by striking subsection (a) and 
inserting the following:
    ``(a) Homeownership Programs.--There are authorized to be 
appropriated for activities authorized under title III of the United 
States Housing Act of 1937 and subtitles B and C of title IV of this 
Act $75,000,000 for fiscal year 1995, and $75,000,000 for fiscal year 
1996. Of the amounts appropriated under this section--
            ``(1) up to $25,000,000 shall be available each fiscal year 
        for implementation grants to applicants who have successfully 
        completed planning grants under title III; and
            ``(2) up to 5 percent shall be available for technical 
        assistance.''.

SEC. 324. HOME EQUITY CONVERSION MORTGAGES.

    (a) Program Extension.--Section 255(g) of the National Housing Act 
(12 U.S.C. 1715z-20(g)) is amended by striking ``September 30, 1995'' 
and inserting ``September 30, 1996''.
    (b) Eligible Residences.--Section 255(d)(3) of the National Housing 
Act (12 U.S.C. 1715z-20(d)(3)) is amended to read as follows:
            ``(3) be secured by a dwelling that is designed principally 
        for a 1- to 4-family residence in which the mortgagor occupies 
        1 of the units;''.
    (c) Reports.--Section 255(k) of the National Housing Act (12 U.S.C. 
1715z-20(k)) is amended by adding at the end the following: ``Each 
biennial report shall also include the results of a survey conducted 
during the period since the most recent report under this subsection to 
determine--
                    ``(A) the financial and other needs of elderly 
                homeowners that cause such homeowners to consider 
                obtaining home equity conversion mortgages; and
                    ``(B) the extent of consumer satisfaction regarding 
                the program under this section and counseling provided 
                pursuant to the requirements of this section.
        In conducting the survey, the Secretary shall consult a 
        representative sample of mortgagors of mortgages insured under 
        this section and of elderly homeowners who have expressed 
        interest in obtaining, but have not obtained, such 
        mortgages.''.

                 TITLE IV--SECTION 8 RENTAL ASSISTANCE

SEC. 401. MERGER OF THE CERTIFICATE AND VOUCHER PROGRAMS.

    (a) Merger of Certificate and Voucher Programs.--Section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended 
to read as follows:
    ``(o) Certificate Program.--
            ``(1) Payment standard.--
                    ``(A) In general.--The Secretary may provide 
                assistance to public housing agencies for tenant-based 
                assistance using a payment standard established in 
                accordance with subparagraph (B). The payment standard 
                shall be used to determine the monthly assistance which 
                may be paid for any family, as provided in paragraph 
                (2).
                    ``(B) Establishment of payment standard.--
                            ``(i) In general.--Except as provided in 
                        clauses (ii) and (iii), the payment standard 
                        shall equal the fair market rental established 
                        under subsection (c). A public housing agency 
                        shall adjust its payment standard under this 
                        subsection whenever it is necessary to maintain 
                        its equality with the fair market rent, unless 
                        the Secretary determines pursuant to clause 
                        (ii) or (iii) that the payment standard should 
                        exceed or be less than the fair market rent.
                            ``(ii) Payment standard exceeding fair 
                        market rental.--The payment standard for a 
                        designated part of the market area may exceed 
                        the fair market rental by not more than 20 
                        percent, if the Secretary determines that 
                        higher market rents in that part of the market 
                        area justify a higher payment standard.
                            ``(iii) Payment standard less than fair 
                        market rental.--The payment standard may be 
                        less than the fair market rental if, upon 
                        request by the public housing agency, the 
                        Secretary determines that the market rents in 
                        that part of the market area justify a lower 
                        payment standard.
                    ``(C) Adjustments in payment standard.--
                            ``(i) In general.--A public housing agency 
                        may adjust its payment standard under this 
                        subsection if necessary to assure continued 
                        affordability for families receiving tenant-
                        based assistance.
                            ``(ii) Set-aside.--The Secretary may set 
                        aside not more than 5 percent of the budget 
                        authority available under this subsection as an 
                        adjustment pool. The Secretary shall use 
                        amounts in the adjustment pool for adjustments 
                        pursuant to clause (i) to ensure continued 
                        affordability if the Secretary determines 
                        additional assistance for this purpose is 
                        necessary, based on documentation submitted by 
                        a public housing agency.
                    ``(D) Approval.--The Secretary may require a public 
                housing agency to submit proposed payment standards to 
                the Secretary for approval.
            ``(2) Amount of monthly assistance payment.--
                    ``(A) Families receiving tenant-based assistance; 
                rent less than payment standard.--For a family 
                receiving tenant-based assistance, if the rent 
                (including the amount allowed for tenant-paid 
                utilities) does not exceed the payment standard, the 
                monthly assistance payment shall be the amount by which 
                the rent exceeds the greatest of the following amounts, 
                rounded to the nearest dollar:
                            ``(i) Thirty percent of the family's 
                        monthly adjusted income.
                            ``(ii) Ten percent of the family's monthly 
                        income.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of such payments, adjusted in accordance 
                        with the family's actual housing costs, is 
                        specifically designated by such agency to meet 
                        the family's housing costs, the portion of such 
                        payments which is so designated.
                    ``(B) Families receiving tenant-based assistance; 
                rent exceeds payment standard.--For a family receiving 
                tenant-based assistance, if the rent (including the 
                amount allowed for tenant-paid utilities) exceeds the 
                payment standard, the monthly assistance payment shall 
                be the amount by which the applicable payment standard 
                exceeds the greatest of the following amounts, rounded 
                to the nearest dollar:
                            ``(i) Thirty percent of the family's 
                        monthly adjusted income.
                            ``(ii) Ten percent of the family's monthly 
                        income.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of such payments, adjusted in accordance 
                        with the family's actual housing costs, is 
                        specifically designated by such agency to meet 
                        the family's housing costs, the portion of such 
                        payments which is so designated.
                    ``(C) Families receiving project-based 
                assistance.--For a family receiving project-based 
                assistance, the rent the family is required to pay 
                shall be determined in accordance with section 3(a)(1) 
                and the amount of the housing assistance payment shall 
                be determined in accordance with subsection (c)(3).
            ``(3) Forty percent limit.--At the time a family initially 
        receives tenant-based assistance with respect to any unit, the 
        total amount a family may pay toward rent may not exceed 40 
        percent of the family's monthly adjusted income.
            ``(4) Eligible families.--At the time a family initially 
        receives assistance under this subsection, a family shall 
        qualify as--
                    ``(A) a very low-income family;
                    ``(B) a family previously assisted under this Act; 
                or
                    ``(C) a low-income family that meets eligibility 
                criteria specified by the Secretary.
            ``(5) Annual review of family income.--A review of the 
        family income of each family receiving assistance under this 
        subsection shall be made not less than annually.
            ``(6) Selection of families.--
                    ``(A) Preference.--Except as provided in 
                subparagraph (B), in selecting families to receive 
                assistance under this subsection, the public housing 
                agency shall give preference to families that, at the 
                time they are seeking such assistance--
                            ``(i) occupy substandard housing (including 
                        families that are homeless or living in an 
                        emergency or transitional shelter for homeless 
                        families);
                            ``(ii) are involuntarily displaced; or
                            ``(iii) are paying more than 50 percent of 
                        family income for rent.
                    ``(B) Assistance to other families.--A public 
                housing agency may provide for circumstances in which a 
                family that does not qualify for any preference 
                established in subparagraph (A) is provided assistance 
                under this subsection before a family that does qualify 
                for such preference. However, not more than 10 percent 
                in the case of tenant-based assistance and not more 
                than 30 percent in the case of project-based assistance 
                (or such higher percentage, in either case, determined 
                by the Secretary to be necessary or appropriate) of the 
                families that initially receive assistance in any 1-
                year period may be families that do not qualify for 
                such preference. In implementing this subparagraph, the 
                public housing agency shall establish a system of 
                preferences in writing and after public hearing to 
                respond to local housing needs and priorities, which 
                may include--
                            ``(i) assisting very low-income families 
                        that participate in a program designed to 
                        provide public assistance recipients with 
                        greater access to employment and educational 
                        opportunities;
                            ``(ii) assisting families identified by 
                        local public agencies involved in providing for 
                        the welfare of children as having a lack of 
                        adequate housing that is a primary factor in 
                        the imminent placement of a child in foster 
                        care, or in preventing the discharge of a child 
                        from foster care and reunification with his or 
                        her family;
                            ``(iii) assisting youth, upon discharge 
                        from foster care, in cases in which return to 
                        the family or extended family or adoption is 
                        not available;
                            ``(iv) assisting veterans that will use the 
                        assistance for a dwelling unit designed for the 
                        handicapped, and, upon discharge or eligibility 
                        for discharge from a hospital or nursing home, 
                        have a physical disability which, because of 
                        the configuration of their homes, prevents them 
                        from access to or use of their homes; and
                            ``(v) other housing policy objectives, as 
                        approved by the Secretary.
                    ``(C) Eviction for drug-related activity.--Any 
                individual or family evicted from housing assisted 
                under this Act by reason of drug-related criminal 
                activity (as defined in subsection (f)(5)) shall not be 
                eligible for a preference under any provision of this 
                paragraph for 3 years unless the evicted tenant 
                successfully completes a rehabilitation program 
                approved by the Secretary (which shall include waiver 
                for any member of the family of an individual 
                prohibited from tenancy under this subparagraph whom 
                the agency determines clearly did not participate in 
                and had no knowledge of such criminal activity, or when 
                circumstances leading to eviction no longer exist).
            ``(7) Inspection of units by public housing agencies.--For 
        each dwelling unit assisted under this subsection, the 
        Secretary shall require the public housing agency to--
                    ``(A) inspect the unit before any assistance 
                payment may be made to determine that the unit meets 
                housing quality standards for decent, safe, and 
                sanitary housing established by the Secretary for the 
                purpose of this subsection; and
                    ``(B) make annual or more frequent inspections 
                during the contract term.
            ``(8) Vacated units.--If a family vacates a dwelling unit, 
        no assistance payment may be made for the unit after the month 
        during which the unit was vacated.
            ``(9) Rent.--
                    ``(A) Reasonable market rent.--The rent for units 
                assisted under this subsection shall be reasonable in 
                comparison with rents charged for comparable units in 
                the private, unassisted market.
                    ``(B) Negotiated rent.--A public housing agency 
                shall, at the request of a family receiving tenant-
                based assistance under this subsection, assist such 
                family in negotiating a reasonable rent with an owner. 
                A public housing agency shall review the rent for a 
                unit under consideration by the family (and all rent 
                increases for units under lease by the family) to 
                determine whether the rent (or rent increase) requested 
                by an owner is reasonable. If a public housing agency 
                determines that the rent (or rent increase) for a unit 
                is not reasonable, the agency shall disapprove a lease 
                for such unit.
                    ``(C) Units exempt from local rent control.--If a 
                unit assisted under this subsection is exempt from 
                local rent control while it is so assisted, the rent 
                for such unit shall be reasonable in comparison with 
                other units in the market area that are exempt from 
                local rent control.
                    ``(D) Payments.--The public housing agency shall 
                make timely payment of any amounts due to an owner 
                under this paragraph. The contract between the owner 
                and the public housing agency may provide for penalties 
                for the late payment of amounts due under the contract 
                which shall be imposed on the public housing agency in 
                accordance with generally accepted practices in the 
                local housing market.
            ``(10) Manufactured housing.--
                    ``(A) In general.--A public housing agency may make 
                assistance payments on behalf of a family that utilizes 
                a manufactured home as its principal place of 
                residence. Such payments may be made for the rental of 
                the real property on which the manufactured home owned 
                by any such family is located.
                    ``(B) Rent calculation.--
                            ``(i) Charges included.--For assistance 
                        pursuant to this paragraph, the rent for the 
                        space on which a manufactured home is located 
                        and with respect to which assistance payments 
                        are to be made includes maintenance and 
                        management charges and tenant-paid utilities.
                            ``(ii) Payment standard.--The public 
                        housing agency shall establish a payment 
                        standard for the purpose of determining the 
                        monthly assistance which may be paid for any 
                        family under this paragraph. The payment 
                        standard may not exceed an amount approved or 
                        established by the Secretary.
                            ``(iii) Monthly assistance payment.--The 
                        monthly assistance payment under this paragraph 
                        shall be determined in accordance with 
                        paragraph (2).
            ``(11) Contract for assistance payments.--
                    ``(A) In general.--If the Secretary enters into an 
                annual contributions contract with a public housing 
                agency pursuant to which the agency will enter into a 
                contract for assistance payments with respect to an 
                existing structure under this subsection, the contract 
                for assistance payments may not be attached to the 
                structure unless the owner agrees to rehabilitate or 
                newly construct the structure other than with 
                assistance under this Act and otherwise complies with 
                the requirements of this section. The public housing 
                agency may approve such attachment for not more than 15 
                percent of the funding available for tenant-based 
                assistance administered by the agency under this 
                section.
                    ``(B) Extension of contract term.--In the case of a 
                contract for assistance payments that is attached to a 
                structure under this paragraph, a public housing agency 
                shall enter into a contract with an owner, contingent 
                upon the future availability of appropriated funds for 
                the purpose of renewing expiring contracts for 
                assistance payments as provided in appropriations Acts, 
                to extend the term of the underlying contract for 
                assistance payments for such period or periods as the 
                Secretary determines to be appropriate to achieve long-
                term affordability of the housing. The contract shall 
                obligate the owner to have such extensions of the 
                underlying contract for assistance payments accepted by 
                the owner and the owner's successors in interest.
                    ``(C) Rent calculation.--For project-based 
                assistance under this paragraph, assistance contracts 
                shall establish rents and provide for rent adjustments 
                in accordance with subsection (c).
            ``(12) Units other than public housing units.--A family may 
        lease a unit, other than a public housing unit, from the public 
        housing agency with assistance under this subsection. The 
        Secretary may establish appropriate program requirements for 
        units owned by the public housing agency, including 
        requirements--
                    ``(A) for the Secretary's approval of initial 
                rents, rent adjustments, and administrative fees, 
                taking into account that the agency administering the 
                assistance is also the owner of the assisted unit;
                    ``(B) that the initial rent be reasonable in 
                accordance with paragraph (9)(A) and not exceed the 
                fair market rent; and
                    ``(C) that only tenant-based assistance may be used 
                for such units.
            ``(13) Inapplicable to tenant-based assistance.--Subsection 
        (c) shall not apply to tenant-based assistance under this 
        subsection.
            ``(14) Homeownership option.--A public housing agency 
        providing assistance under this section may, at the option of 
        the agency, provide assistance for homeownership under 
        subsection (y).''.
    (b) Leasing to Certificate Holders.--
            (1) Repeal.--Section 8(t) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f(t)) is repealed.
            (2) Report to congress.--Not later than 3 years after the 
        date of enactment of this Act, the Comptroller General of the 
        United States shall report to the Congress on the effect of the 
        repeal made by paragraph (1). The report shall analyze--
                    (A) discriminatory practices based on source of 
                income and any other detrimental practices occurring as 
                a result of the repeal of section 8(t) of the United 
                States Housing Act of 1937; and
                    (B) any increase in owner participation in the 
                program authorized under section 8(o) of the United 
                States Housing Act of 1937 occurring as a result of the 
                repeal of section 8(t) of such Act.
    (c) Portability.--Section 8(r) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(r)) is amended--
            (1) in paragraph (1), by striking ``subsection (b) or'';
            (2) in paragraph (3)--
                    (A) by striking ``subsection (b) or''; and
                    (B) by adding at the end the following new 
                sentence: ``The Secretary may reserve amounts available 
                for assistance under subsection (o) to compensate 
                public housing agencies which issue certificates to 
                families that move into the jurisdiction of the agency 
                under portability procedures.''; and
            (3) by adding at the end the following new paragraph:
    ``(5) Lease violations.--A family may not receive a certificate 
from an agency and move to another jurisdiction under the tenant-based 
assistance program if the family has moved out of its assisted unit in 
violation of its lease.''.
    (d) Homeownership Option.--Section 8(y) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(y)) is amended--
            (1) in paragraph (1)(A), by inserting before the semicolon 
        ``, or owns or is acquiring shares in a cooperative'';
            (2) in paragraph (1)(B)(i), by inserting before the 
        semicolon ``and demonstrates to the public housing agency that 
        it has sufficient resources for homeownership''; and
            (3) in paragraph (2), by striking subparagraph (A) and 
        inserting the following:
                    ``(A) Determination of amount of assistance.--
                            ``(i) Monthly expenses do not exceed 
                        payment standard.--If the monthly homeownership 
                        expenses, as determined in accordance with 
                        requirements established by the Secretary, do 
                        not exceed the payment standard, the monthly 
                        assistance payment shall be the amount by which 
                        the homeownership expenses exceed the highest 
                        of the following amounts, rounded to the 
                        nearest dollar:
                                    ``(I) Thirty percent of the 
                                family's monthly adjusted income.
                                    ``(II) Ten percent of the family's 
                                monthly income.
                                    ``(III) If the family is receiving 
                                payments for welfare assistance from a 
                                public agency and a part of such 
                                payments, adjusted in accordance with 
                                the family's actual housing costs, is 
                                specifically designated by such agency 
                                to meet the family's housing costs, the 
                                portion of such payments which is so 
                                designated.
                            ``(ii) Monthly expenses exceed payment 
                        standard.--If the monthly homeownership 
                        expenses, as determined in accordance with 
                        requirements established by the Secretary, 
                        exceed the payment standard, the monthly 
                        assistance payment shall be the amount by which 
                        the applicable payment standard exceeds the 
                        highest of the following amounts, rounded to 
                        the nearest dollar:
                                    ``(I) Thirty percent of the 
                                family's monthly adjusted income.
                                    ``(II) Ten percent of the family's 
                                monthly income.
                                    ``(III) If the family is receiving 
                                payments for welfare assistance from a 
                                public agency and a part of such 
                                payments, adjusted in accordance with 
                                the family's actual housing costs, is 
                                specifically designated by such agency 
                                to meet the family's housing costs, the 
                                portion of such payments which is so 
                                designated.''.
    (e) Technical and Conforming Amendments to the United States 
Housing Act of 1937; Deletion of Obsolete Provisions.--The United 
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
            (1) in section 8--
                    (A) in subsection (a), by striking the second and 
                third sentences;
                    (B) in subsection (b)--
                            (i) in the section heading, by striking 
                        ``Rental''; and
                            (ii) in the first undesignated paragraph, 
                        by striking the second sentence;
                    (C) in subsection (c)--
                            (i) in paragraph (3)--
                                    (I) by striking ``(A)''; and
                                    (II) by striking subparagraph (B);
                            (ii) in the first sentence of paragraph 
                        (4), by striking ``or by a family that 
                        qualifies to receive'' and all that follows 
                        through ``1990'';
                            (iii) by striking paragraph (5) and 
                        redesignating paragraph (6) as paragraph (5);
                            (iv) by striking paragraph (7) and 
                        redesignating paragraphs (8) through (10) as 
                        paragraphs (6) through (8), respectively;
                            (v) in paragraph (6), as redesignated, by 
                        inserting ``(other than a contract under 
                        section 8(o))'' after ``section''; and
                            (vi) in paragraph (7), as redesignated, by 
                        striking ``(but not less than 90 days in the 
                        case of housing certificates or vouchers under 
                        subsection (b) or (o))'' and inserting ``, 
                        other than a contract under subsection (o)'';
                    (D) in subsection (d)(1)(A)--
                            (i) by inserting ``except for assistance 
                        under subsection (o),'' immediately after 
                        ``(A)''; and
                            (ii) in clause (i)--
                                    (I) by striking ``(I)'';
                                    (II) by striking ``and (II) 90 
                                percent of such families in the case of 
                                assistance not attached to a 
                                structure,''; and
                            (III) by striking ``except'' and all that 
                        follows before the semicolon;
                    (E) in subsection (d)(2), by striking the third 
                sentence of subparagraph (A) and all that follows 
                through the end of the paragraph;
                    (F) in subsection (f)--
                            (i) in paragraph (6), by striking 
                        ``(d)(2)'' and inserting ``(o)(13)''; and
                            (ii) in paragraph (7)--
                                    (I) by striking ``(b) or''; and
                                    (II) by inserting before the period 
                                the following: ``and that provides for 
                                the eligible family to select suitable 
                                housing and to move to other suitable 
                                housing'';
                    (G) by striking subsection (j) and inserting the 
                following:
    ``(j) [Repealed.]'';
                    (H) by striking subsection (n) and inserting the 
                following:
    ``(n) [Repealed.]''; and
                    (I) in subsection (q)--
                            (i) in the first sentence of paragraph (1), 
                        by striking ``and housing voucher programs 
                        under subsections (b) and (o)'' and inserting 
                        ``program under this section'';
                            (ii) in paragraph (2)(A)(i), by striking 
                        ``and housing voucher programs under 
                        subsections (b) and (o)'' and inserting 
                        ``program under this section''; and
                            (iii) in paragraph (2)(B), by striking 
                        ``and housing voucher programs under 
                        subsections (b) and (o)'' and inserting 
                        ``program under this section'';
            (2) in section 18(b)(3)--
                    (A) in subparagraph (A)(v), by striking 
                ``(excluding vouchers under section 8(o))'' each place 
                it appears;
                    (B) in subparagraph (B)--
                            (i) by striking ``8(d)(2)(A)'' and 
                        inserting ``8(o)(11)''; and
                            (ii) in clause (ii), by striking 
                        ``(excluding vouchers under section 8(o))''; 
                        and
                    (C) in subparagraph (C)(i), by striking ``and 
                vouchers'';
            (3) in section 21(b)(3)--
                    (A) in the first sentence, by striking 
                ``certificate under section 8(b)(1) or a housing 
                voucher under section 8(o)'' and inserting ``tenant-
                based assistance under section 8''; and
                    (B) by striking the second sentence; and
            (4) in section 23(b)(3)(A), by striking ``Certificate and 
        voucher assistance under section 8(b) and (o)'' and inserting 
        ``Tenant-based assistance under section 8''.
    (f) Other Technical and Conforming Amendments.--
            (1) Documentation of excessive rent burdens.--Section 
        550(b) of the Cranston-Gonzalez National Affordable Housing Act 
        (42 U.S.C. 1437f note) is amended--
                    (A) in paragraph (1), by striking ``assisted under 
                the certificate and voucher programs established'' and 
                inserting ``receiving tenant-based assistance'';
                    (B) in the first sentence of paragraph (2)--
                            (i) by striking ``, for each of the 
                        certificate program and the voucher program'' 
                        and inserting ``for the tenant-based assistance 
                        under section 8''; and
                            (ii) by striking ``participating in the 
                        program'' and inserting ``receiving tenant-
                        based assistance''; and
                    (C) in paragraph (3), by striking ``assistance 
                under the certificate or voucher program'' and 
                inserting ``tenant-based assistance under section 8 of 
                the United States Housing Act of 1937''.
            (2) Feasibility study regarding indian tribe eligibility.--
        Section 561 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437f note) is amended--
                    (A) in the heading, by striking ``For Voucher 
                Program''; and
                    (B) in subsection (a), by striking ``voucher''.
            (3) Grants for community residences and services.--Section 
        861(b)(1)(D) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12910(b)(1)(D)) is amended by striking 
        ``certificates or vouchers'' and inserting ``assistance''.
            (4) Section 8 certificates and vouchers.--Section 931 of 
        the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 1437c note) is amended by striking ``assistance under 
        the certificate and voucher programs under sections 8(b) and 
        (o)'' and inserting ``tenant-based assistance under section 
        8''.
            (5) Tenant participation in multifamily housing projects.--
        Section 183(c) of the Housing and Community Development Act of 
        1987 (42 U.S.C. 1437f note) is amended--
                    (A) in the heading, by striking ``and Voucher 
                Holders''; and
                    (B) in paragraph (2), by striking ``voucher'' each 
                place it appears and inserting ``certificate''.
            (6) Assistance for displaced tenants.--Section 223(a) of 
        the Housing and Community Development Act of 1987 (12 U.S.C. 
        4113(a)) is amended by striking ``assistance under the 
        certificate and voucher programs under sections 8(b) and 8(o)'' 
        and inserting ``tenant-based assistance under section 8''.
            (7) Rural housing preservation grants.--Section 533(a) of 
        the Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the 
        second sentence by striking ``assistance payments as provided 
        by section 8(o)'' and inserting ``tenant-based assistance as 
        provided under section 8''.
            (8) Repeal of moving to opportunities for fair housing 
        demonstration.--Section 152 of the Housing and Community 
        Development Act of 1992 (42 U.S.C. 1437f note) is hereby 
        repealed.
            (9) Preferences for elderly families and persons.--Section 
        655 of the Housing and Community Development Act of 1992 (42 
        U.S.C. 13615) is amended by striking ``the first sentence of 
        section 8(o)(3)(B)'' and inserting ``section 8(o)(6)(A)''.
            (10) Assessment credits for distressed communities.--
        Section 233(a)(4)(F) of the Bank Enterprise Act of 1991 (12 
        U.S.C. 1834a(a)(4)(F)) is amended by striking ``title III of 
        the United States Housing Act of 1937 or''.
            (11) Assistance for troubled multifamily housing 
        projects.--Section 201(m)(2)(A) of the Housing and Community 
        Development Amendments of 1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is 
        amended by striking ``section 8(b)(1)'' and inserting ``section 
        8''.
            (12) Management and disposition of multifamily housing 
        projects.--Section 203(g)(2) of the Housing and Community 
        Development Amendments of 1978 (12 U.S.C. 1701z-11(g)(2)), as 
        amended by section 101(b) of the Multifamily Housing Property 
        Disposition Reform Act of 1994, is amended by striking 
        ``8(o)(3)(B)'' and inserting ``8(o)(6)(A)''.
    (g) Implementation.--The Secretary shall implement the amendments 
made by this section by regulation issued after notice and opportunity 
for public comment.
    (h) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect upon a date specified by the Secretary in the 
        Federal Register.
            (2) Conversion assistance.-- The Secretary may provide for 
        the conversion of assistance under the certificate and voucher 
        programs under subsections (b) and (o) of the United States 
        Housing Act of 1937, as they existed before the effective date 
        of the amendments made by this section, to the certificate 
        program established under this section. The Secretary may 
        continue to apply the provisions of the United States Housing 
        Act of 1937 and other statutes amended by this section, as they 
        existed immediately before the effective date of the amendments 
        made by this section, to assistance obligated by the Secretary 
        before such effective date for the certificate or voucher 
        program under section 8 of the United States Housing Act of 
        1937, if necessary for simplification of program 
        administration, avoidance of hardship, or other good cause.

SEC. 402. CHOICE IN RESIDENCY.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)), as amended by section 401(a), is amended by adding at the 
end the following new paragraph:
            ``(14) Grants for choice in residency counseling.--
                    ``(A) Authorization.--The Secretary may make grants 
                to public housing agencies and nonprofit organizations 
                for the purpose of providing counseling to applicants 
                for and recipients of tenant-based assistance. The 
                counseling shall be designed to enable families to 
                select units through informed choice, including units 
                in areas without high concentrations of persons living 
                in poverty.
                    ``(B) Eligible activities.--Activities assisted 
                with grants made under this paragraph may include--
                            ``(i) advising families on strategies for 
                        obtaining appropriate housing;
                            ``(ii) providing transportation assistance 
                        and other services to give families access to 
                        areas without high concentrations of persons 
                        living in poverty;
                            ``(iii) continuing advice and counseling to 
                        assist families after moving to areas without 
                        high concentrations of persons living in 
                        poverty; and
                            ``(iv) undertaking outreach to potential 
                        owners to expand the availability of housing in 
                        areas without high concentrations of persons 
                        living in poverty.
                    ``(C) Selection of recipients.--The Secretary may 
                select, on a competitive basis, public housing agencies 
                and nonprofit organizations for grants under this 
                paragraph. In making funding decisions, the Secretary 
                may take into account evidence of commitments of non-
                Federal assistance to be used in support of the 
                proposed counseling program.
                    ``(D) Set-aside for civil rights litigation.--Of 
                amounts appropriated pursuant to subparagraph (E), the 
                Secretary may set aside not more than 5 percent for 
                fair housing activities in connection with the 
                settlement of civil rights litigation (excluding 
                litigation brought by an employee or former employee of 
                the Secretary) including--
                            ``(i) mobility counseling and related 
                        services, including the recruitment of 
                        landlords and assistance in obtaining a place 
                        on any waiting lists for housing in the same 
                        market area;
                            ``(ii) establishing clearinghouses for 
                        information about housing opportunities;
                            ``(iii) assistance for elderly persons and 
                        persons with disabilities; and
                            ``(iv) targeted testing efforts.
                    ``(E) Authorization.--There are authorized to be 
                appropriated $75,000,000 for fiscal year 1995 and 
                $75,000,000 for fiscal year 1996 for grants under this 
                paragraph.''.

SEC. 403. FAMILY UNIFICATION ASSISTANCE.

    Section 8(x)(1) of the United States Housing Act of 1937 (12 U.S.C. 
1437f(x)(1)) is amended to read as follows:
            ``(1) Increase in budget authority.--The budget authority 
        available under section 5(c) for assistance under section 8(b) 
        is authorized to be increased by $75,000,000 on or after 
        October 1, 1995, and by $75,000,000 on or after October 1, 
        1996.''.

SEC. 404. FAIR MARKET RENTS.

    Section 8(c)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(c)(1)) is amended by adding after the period at the end the 
following: ``The Secretary shall set fair market rentals at the 45 
percentile of the standard quality rental housing within each market 
area. In setting the fair market rents, the Secretary shall only 
consider rents on units occupied by recent movers and shall not 
consider rents on government subsidized units and rents on newly 
constructed units.''.

                 TITLE V--HOME INVESTMENT PARTNERSHIPS

SEC. 501. HOME PROGRAM LOAN GUARANTEES.

    Subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12741 et seq.) is amended by adding at the end 
the following new section:

``SEC. 227. LOAN GUARANTEES.

    ``(a) Authorization.--
            ``(1) In general.--The Secretary shall, upon such terms and 
        conditions as the Secretary may prescribe, guarantee and make 
        commitments to guarantee the notes or other obligations issued 
        by eligible participating jurisdictions, or by public agencies 
        designated by and acting on behalf of eligible participating 
        jurisdictions, in accordance with this subsection.
            ``(2) Purposes.--Guarantees and commitments to guarantee 
        obligations made under this subsection shall be made for 
        purposes of financing activities eligible under subtitle A of 
        title II of the Cranston-Gonzalez National Affordable Housing 
        Act, excluding administrative costs, as defined in section 207 
        of the Housing and Community Development Act of 1992.
    ``(b) Requirements for Notes and Other Obligations Guaranteed.--
            ``(1) In general.--Notes or other obligations guaranteed 
        under this section shall be in such form and denominations, 
        have such maturities, and be subject to such conditions as may 
        be prescribed by regulations issued by the Secretary. The 
        Secretary may not deny a guarantee under this section on the 
        basis of the proposed repayment period for the note or other 
        obligation, unless the period is more than 20 years or the 
        Secretary determines that the period otherwise causes the 
        guarantee to constitute an unacceptable financial risk. To the 
        extent provided in appropriation Acts, the Secretary may enter 
        into commitments to guarantee notes or other obligations under 
        this section with an aggregate principal amount of 
        $1,000,000,000 for fiscal year 1995 and $1,000,000,000 for 
        fiscal year 1996.
            ``(2) Allocation.--
                    ``(A) Allocation for indian tribes and insular 
                areas.--Of the amount approved in any appropriation Act 
                for guarantees under this section in each fiscal year, 
                the Secretary shall reserve--
                            ``(i) 1 percent for guarantees to Indian 
                        tribes; and
                            ``(ii) 0.2 percent for guarantees to 
                        Insular Areas.
                    ``(B) Remaining amounts.--Of the amount remaining 
                after the allocations under subparagraph (A) in each 
                fiscal year--
                            ``(i) 60 percent shall be used for 
                        guarantees to units of general local 
                        government; and
                            ``(ii) 40 percent shall be used for 
                        guarantees to States.
                    ``(C) Waiver.--The Secretary may waive the 
                requirements of subparagraphs (A) and (B) in any fiscal 
                year only to the extent to which there is an absence of 
                qualified applicants or proposed activities from Indian 
                tribes, Insular Areas, units of general local 
                government, or States.
    ``(c) Total Outstanding Amount.--No guarantee or commitment to 
guarantee shall be made with respect to any note or other obligation if 
the total outstanding notes or obligations guaranteed under this 
section on behalf of a participating jurisdiction (excluding any amount 
defeased under a contract entered into under subsection (e)(1)) would 
thereby exceed an amount equal to 5 times the amount of the 
participating jurisdiction's latest HOME allocation.
    ``(d) Use of Funds.--Notwithstanding any other provision of this 
title, funds allocated to the participating jurisdiction under this 
title (including program income derived therefrom) may be used by the 
participating jurisdiction or by the Secretary, in the payment of 
principal and interest due on the notes or other obligations guaranteed 
pursuant to this section and the payment of such servicing, 
underwriting, or other issuance or collection charges as may be 
specified in regulations issued by the Secretary.
    ``(e) Repayment Guarantee.--To assure the full repayment of notes 
or other obligations guaranteed hereunder as well as the issuance or 
collection charges specified by the Secretary under subsection (d), and 
as a prior condition for receiving such guarantees, the Secretary shall 
require the participating jurisdiction (and its designated public 
agency issuer, if any) to--
            ``(1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of such notes or other obligations and 
        the other specified charges;
            ``(2) pledge as security for such repayment any allocation 
        for which the participating jurisdiction may become eligible 
        under this title; and
            ``(3) furnish, at the discretion of the Secretary, such 
        other security as may be deemed appropriate by the Secretary in 
        making such guarantees, which may include increments in local 
        tax receipts generated by the housing assisted under this 
        section or disposition proceeds from the sale of land or 
        housing.
    ``(f) Application of Allocation to Repayments.--Notwithstanding any 
other provision of this title or any other Federal, State, or local 
law, the Secretary may apply allocations pledged pursuant to subsection 
(e) to any repayments due the United States as a result of such 
guarantees.
    ``(g) Full Faith and Credit.--The full faith and credit of the 
United States is pledged to the payment of all guarantees made under 
this section. Any such guarantee made by the Secretary shall be 
conclusive evidence of the eligibility of the notes or other 
obligations for such guarantee with respect to principal and interest, 
and the validity of any such guarantee so made shall be incontestable 
in the hands of a holder of the guaranteed obligations.
    ``(h) Taxes.--
            ``(1) In general.--Obligations guaranteed under this 
        section shall be subject to Federal taxation as provided in 
        paragraph (2).
            ``(2) Interest payments.--With respect to any obligation 
        guaranteed under to this section, the interest paid on such 
        obligation shall be included in gross income for the purpose of 
        chapter 1 of the Internal Revenue Code of 1954.
    ``(i) Monitoring by the Secretary.--The Secretary shall monitor the 
use of guarantees under this section by eligible participating 
jurisdictions. If the Secretary finds that 50 percent of the aggregate 
guarantee authority for that year has been committed, the Secretary 
may--
            ``(1) impose limitations on the amount of guarantees any 
        participating jurisdiction may receive in any fiscal year of 
        $35,000,000; or
            ``(2) request the enactment of legislation increasing the 
        aggregate limitation on guarantees under this section.
    ``(j) Prohibition on Fees and Charges.--Except as provided in 
subsection (d), no fee or other charge may be imposed by the Secretary 
or any other Federal agency on or with respect to a guarantee made by 
the Secretary under this section.
    ``(k) Guarantee of Timely Payment.--
            ``(1) In general.--The Secretary may, upon such terms and 
        conditions as the Secretary deems appropriate, guarantee the 
        timely payment of the principal of and interest on such trust 
        certificates or other obligations as shall--
                    ``(A) be offered by the Secretary or by any other 
                offeror approved for purposes of this subsection by the 
                Secretary, and
                    ``(B) be based on and backed by a trust or pool 
                composed of notes or other obligations guaranteed or 
                eligible for guarantee by the Secretary under this 
                section.
            ``(2) Full faith and credit.--To the same extent as 
        provided in subsection (g), the full faith and credit of the 
        United States is pledged to the payment of all amounts which 
        may be required to be paid under any guarantee by the Secretary 
        under this subsection.
            ``(3) Subrogation.--If the Secretary pays a claim under a 
        guarantee issued under this section, the Secretary shall be 
        subrogated fully to the rights satisfied by such payment.
            ``(4) Preemption.--No provision of Federal, State, or local 
        law shall preclude or limit the exercise by the Secretary of--
                    ``(A) the power to contract with respect to public 
                offerings and other sales of notes, trust certificates 
                and other obligations guaranteed under this section 
                upon such terms and conditions as the Secretary deems 
                appropriate;
                    ``(B) the right to enforce by any means deemed 
                appropriate by the Secretary any such contract; or
                    ``(C) the Secretary's ownership rights, as 
                applicable, in notes, certificates or other obligations 
                guaranteed under this section, or constituting the 
                trust or pool against which trust certificates or other 
                obligations guaranteed under this section are offered.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for each of fiscal years 
1995 and 1996 for the cost to the Government, as defined in section 502 
of the Congressional Budget Act, of guaranteed loans under this 
section.''.

SEC. 502. HOME AUTHORIZATION OF APPROPRIATIONS.

    Section 205 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12724) is amended to read as follows:

``SEC. 205. AUTHORIZATION.

    ``There are authorized to be appropriated to carry out this title 
$2,000,000,000 for fiscal year 1995, and $2,300,000,000 for fiscal year 
1996, of which--
            ``(1) not more than $20,000,000 for fiscal year 1995, and 
        $14,000,000 for fiscal year 1996, shall be for community 
        housing partnership activities authorized under section 233; 
        and
            ``(2) not more than $17,000,000 for fiscal year 1995, and 
        $11,000,000 for fiscal year 1996, shall be for activities in 
        support of State and local housing strategies authorized under 
        subtitle C.''.

SEC. 503. MONITORING OF COMPLIANCE.

    Section 226(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12756(b)) is amended to read as follows:
    ``(b) Periodic Monitoring.--Each participating jurisdiction shall 
review the activities of owners of affordable housing assisted under 
this title to assess compliance with the requirements of this title. 
Such review shall include annual review of program participant 
compliance with all applicable program requirements to adequately 
monitor HOME funded activities. Such review shall also include onsite 
inspection once every 2 years to verify compliance with housing codes 
and other applicable regulations. The results of each review shall be 
included in the jurisdiction's performance report submitted to the 
Secretary under section 108(a) and made available to the public.''.

SEC. 504. STABILIZATION OF HOME FUNDING THRESHOLDS.

    The Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
1274 et seq.) is amended as follows:
            (1) Repeal.--Sections 216(10) and 217b(4) are hereby 
        repealed.
            (2) Minimum local allocation.--Section 217(b)(3) is 
        amended--
                    (A) in the first sentence, by striking ``only those 
                jurisdictions'' and all that follows up to the period 
                and inserting the following: ``jurisdictions that are 
                not participating jurisdictions that are allocated an 
                amount of $500,000 or greater and jurisdictions that 
                are participating jurisdictions shall receive an 
                allocation''; and
                    (B) in the last sentence, by striking ``, except as 
                provided in paragraph (4)''.
            (3) Participation by states and local governments.--Section 
        216 is amended--
                    (A) in paragraph (3), by striking ``Except as 
                provided in paragraph (10), a jurisdiction'' and 
                inserting ``A jurisdiction''; and
                    (B) in paragraph (9)(B), by striking ``, except as 
                provided in paragraph (10)''.

SEC. 505. HOME INVESTMENTS.

    Section 212(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12743(b)) is amended to read as follows:
    ``(b) Investments.--Participating jurisdictions shall have 
discretion to invest funds made available under this subtitle as equity 
investments, interest-bearing loans or advances, noninterest-bearing 
loans or advances, loan guarantees, interest subsidies or other forms 
of assistance or credit enhancement that the Secretary has determined 
to be consistent with the purposes of this title. Each participating 
jurisdiction shall have the right to establish the terms of 
assistance.''.

SEC. 506. RETURN OF MATCHING INVESTMENT.

    Section 219(a) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12749(a)) is amended--
            (1) by striking ``except that, if the'' and inserting the 
        following: ``except that--
            ``(1) if the'';
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding at the end the following new paragraph:
            ``(2) if the repayment of funds drawn from a jurisdiction's 
        Home Investment Trust Fund and any payment of interest or other 
        return on the investment of such funds result from a State's 
        matching investment, and the State program providing the match 
        provides housing opportunities substantially equivalent to the 
        HOME program, the matching investment shall be returned to the 
        State for reinvestment through the State's substantially 
        equivalent housing program.''.

SEC. 507. ADJUSTMENT OF QUALIFYING RENT.

    Section 215(a)(2) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12745(a)(2)) is amended to read as follows:
            ``(2) Adjustment of qualifying rent.--
                    ``(A) In general.--The Secretary may adjust the 
                qualifying rent established for a project under 
                paragraph (1)(A), only if the Secretary finds that such 
                adjustment is necessary to support the continued 
                financial viability of the project and only by such 
                amount as the Secretary determines is necessary to 
                maintain continued financial viability of the project.
                    ``(B) Conformity with section 8 rents.--
                Notwithstanding subparagraph (A), the Secretary shall 
                adjust the qualifying rent established for a project 
                under paragraph (1)(A) to allow rents to be set at 
                levels permitted under the section 8 program or 
                comparable State-funded rental assistance programs for 
                tenants with section 8 certificates or comparable State 
                rental assistance certificates.''.

SEC. 508. INCREASES IN TENANT INCOME.

    Section 215(a)(3) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12745(a)(3)) is amended to read as follows:
            ``(3) Increases in tenant income.--Housing shall qualify as 
        affordable housing despite a temporary noncompliance with 
        subparagraph (B) or (C) of paragraph (1) only if--
                    ``(A)(i) such noncompliance is caused by increases 
                in the incomes of existing tenants; and
                    ``(ii) actions satisfactory to the Secretary are 
                being taken to ensure that all vacancies are filled in 
                accordance with paragraph (1) until such noncompliance 
                is corrected; or
                    ``(B)(i) notwithstanding subparagraph (A), such 
                noncompliance is caused by increases in the incomes of 
                existing very low-income tenants; and
                    ``(ii) actions satisfactory to the Secretary are 
                being taken to ensure that all vacancies are filled in 
                accordance with paragraph (1).
        A tenant described in subparagraph (B) shall be considered to 
        be a very low-income for the purposes of this title until the 
        tenant's income exceeds 70 percent of median income for the 
        area. A tenant described in this paragraph that no longer 
        qualifies as a low-income or very low-income family shall pay 
        as rent the lesser of the amount payable by the tenant under 
        State or local law, or 30 percent of the family's adjusted 
        monthly income, as recertified annually. The preceding sentence 
        shall not apply with respect to funds made available under this 
        Act for units that have been allocated a low-income housing tax 
        credit by a housing credit agency pursuant to section 42 of the 
        Internal Revenue Code of 1986.''.

              TITLE VI--MULTIFAMILY AND SUPPORTIVE HOUSING

                        Subtitle A--Preservation

SEC. 601. COST-SAVING AMENDMENTS.

    (a) Ceiling Rents.--Section 222(a)(2)(D) of the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 
4112(a)(2)(D)) is amended to read as follows:
                    ``(D) monthly rent contributions by current and 
                future tenants, including tenants receiving assistance 
                under section 8 of the United States Housing Act of 
                1937, shall not exceed the lesser of--
                            ``(i) 30 percent of the adjusted income of 
                        the tenant; or
                            ``(ii) 90 percent of the actual rent paid 
                        for a comparable unit in comparable unassisted 
                        housing in the market area in which the 
                        eligible low-income housing is located;
                except that the rent contributions of tenants (other 
                than tenants receiving assistance under section 8 of 
                the United States Housing Act of 1937) occupying the 
                housing at the time of any increase may not be reduced 
                under this subparagraph.''.
    (b) Floor Rents For Low-Income Tenants.--Section 222(a)(2)(E) of 
the Low-Income Housing Preservation and Resident Homeownership Act of 
1990 (12 U.S.C. 4112(a)(2)(E)) is amended--
            (1) in clause (i), by striking ``and'' at the end; and
            (2) by adding at the end the following clause:
                            ``(iii)(I) to retain the tenant occupancy 
                        profile required by subparagraph (F)(i), 
                        tenants that are determined by the Secretary to 
                        be low-income tenants at initial income 
                        certification upon occupancy, or at the time of 
                        implementation of a plan of action (whichever 
                        occurs last), shall pay for rent an amount that 
                        is not less than the lesser of--
                                    ``(aa) 30 percent of 45 percent of 
                                median income for the area (as 
                                determined by the Secretary and 
                                adjusted for family size); or
                                    ``(bb) 90 percent of the actual 
                                rent paid for a comparable unit in 
                                comparable unassisted housing in the 
                                market area in which the eligible low-
                                income housing is located.
                        Subject to subclause (II), payment of this 
                        minimum rent shall be a condition of continued 
                        occupancy and eligibility for section 8 
                        assistance.
                            ``(II) Notwithstanding the rents required 
                        under subclause (I), a tenant who occupies a 
                        unit designated for occupancy by low-income 
                        persons and families, and who becomes a very 
                        low-income tenant, shall be provided with the 
                        next available unit designated for occupancy by 
                        very low-income persons and families, and, 
                        until such unit becomes available, shall pay 
                        for rent not more than the amount chargeable as 
                        rent under section 3(a) of the United States 
                        Housing Act of 1937. Such tenant shall not be 
                        evicted for nonpayment of rent if the rent 
                        amounts set forth in this subclause are paid. 
                        The costs resulting from the difference between 
                        rents required under subclause (I) and the 
                        rents permitted under this subclause shall be 
                        incorporated into the section 8 contract for 
                        units designated for occupancy by low-income 
                        persons or families; and''.
    (c) Section 8 Assistance.--Section 222(a)(1)(E)(ii) of the Low-
Income Housing Preservation and Resident Homeownership Act of 1990 (12 
U.S.C. 4112(a)(1)(E)) is amended--
            (1) by striking ``; and'' at the end and inserting a 
        period; and
            (2) by adding at the end the following: ``For any section 8 
        assistance provided under this subtitle, whether through the 
        extension of an existing contract or the provision of a new 
        contract for assistance, the Secretary shall have the 
        discretion to adjust contract rents within the limits 
        established under section 215, irrespective of the comparable 
        rent requirements set forth in section 8(c) of the United 
        States Housing Act of 1937. Notwithstanding any provision of 
        law to the contrary, any conflict pertaining to the computation 
        of contract rents arising from differences between this 
        subtitle and section 8 of the United States Housing Act of 1937 
        shall, subject to the prior approval of the Secretary, be 
        resolved in favor of this subtitle; and''.
    (d) Applicability of Federal Preferences.--Section 222(a)(1)(F) of 
the Low-Income Housing Preservation and Resident Homeownership Act of 
1990 (12 U.S.C. 4112(a)(1)(F)) is amended--
            (1) in clause (i)--
                    (A) by striking ``rents for units becoming 
                available to new tenants shall be at levels approved by 
                the Secretary that will ensure, to the extent 
                practicable, that the units will be'' and inserting 
                ``to the extent practicable, the units becoming 
                available to new tenants shall be''; and
                    (B) by striking ``and'' at the end;
            (2) by redesignating clause (ii) as clause (iii); and
            (3) by inserting after clause (i) the following new clause:
                    ``(ii) in order to maintain the proportions of very 
                low- and low-income families and persons required by 
                clause (i), owners shall be required to apply any 
                required Federal preference rules only with respect to 
                tenants within each low- or very low-income category, 
                in accordance with the approved tenant profile; and''.
    (e) Definitions.--Section 229(4) of the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4119(4)) 
is amended to read as follows:
            ``(4)(A) The term `low-income tenants' means families or 
        persons with incomes that exceed 50 percent of the median 
        income for the area (as determined by the Secretary with 
        adjustments for family size) but do not exceed 80 percent of 
        the median income for the area (as determined by the Secretary 
        with adjustments for family size).
            ``(B) The term `very low-income tenants' means families or 
        persons with incomes that are less than or equal to 50 percent 
        of the median income for the area (as determined by the 
        Secretary with adjustments for family size).''.
    (f) Transition Provisions.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall take effect on the date of enactment of this Act.
            (2) Exception.--If an owner of eligible low-income housing 
        has a plan of action that has been approved by the Secretary 
        and that is being implemented as of the date of enactment of 
        this Act, subsections (a), (b), (c), and (d) shall not apply to 
        current tenants of such housing until the first date on which 
        the next annual rent adjustments are made following the date of 
        enactment of this Act.

SEC. 602. LOW-INCOME HOUSING PRESERVATION AUTHORIZATION OF 
              APPROPRIATIONS.

    Section 234(a) of the Housing and Community Development Act of 1987 
(12 U.S.C. 4124) is amended to read as follows:
    ``(a) In General.--There are authorized to be appropriated for 
assistance and incentives authorized under this subtitle $300,000,000 
for fiscal year 1995 and $300,000,000 for fiscal year 1996.''.

          Subtitle B--Renewal of Expiring Section 8 Contracts

SEC. 611. AUTHORITY TO ENTER INTO NEW CONTRACTS.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by adding at the end the following new subsection:
    ``(z) Renewal of Section 8 New Construction and Substantial 
Rehabilitation Expiring Contracts.--
            ``(1) In general.--Subject to appropriations, the Secretary 
        shall enter into new contracts to make assistance payments to 
        owners of qualified housing pursuant to the provisions of 
        subtitle B of title VI of the Housing Choice and Community 
        Investment Act of 1994.
            ``(2) Procedures.--The Secretary shall establish procedures 
        to enter into new contracts pursuant to paragraph (1) that--
                    ``(A) ensure that the number of low- and very low-
                income families receiving tenant- or project-based 
                assistance under this section at least equals the 
                number of affordable units under expiring section 8 
                contracts; and
                    ``(B) make assistance under this section available 
                to current tenants residing in units covered by an 
                expiring contract which is not replaced, which 
                assistance shall, to the maximum extent practicable, be 
                project-based assistance.
            ``(3) Calculation of limit.--Project-based assistance 
        contracts entered into under this subsection shall be excluded 
        in computing the limit on project-based assistance under 
        subsection (d).''.

SEC. 612. CRITERIA FOR ENTERING INTO NEW CONTRACTS.

    (a) In General.--Except as provided in subsection (b), the 
Secretary shall enter into a new contract with an owner of qualified 
housing assisted under an expiring contract if the owner submits a 
proposal to enter into a new contract for assistance under section 8 of 
the United States Housing Act of 1937 pursuant to the terms, 
conditions, and procedures set forth in this subtitle.
    (b) Exceptions.--The Secretary may reject an owner's proposal to 
enter into a new contract for assistance under section 8 of the United 
States Housing Act of 1937 if--
            (1) the owner has engaged in adverse financial or 
        managerial actions or omissions, including--
                    (A) knowingly violating any Federal, State, or 
                local law or regulation;
                    (B) knowingly and materially breaching a section 8 
                assistance contract;
                    (C) knowingly and materially violating any 
                applicable regulatory or other agreement with the 
                Secretary;
                    (D) repeatedly failing to make mortgage payments;
                    (E) failing to maintain the property after receipt 
                of notice and an opportunity to cure; or
                    (F) committing any actions or omissions which would 
                warrant suspension or debarment by the Secretary;
            (2) the owner fails to follow the procedures set forth in 
        this subtitle;
            (3) the rents proposed by the owner, after negotiation with 
        the Secretary, exceed the maximum amount permitted under 
        section 616; or
            (4) the poor condition of the property cannot be remedied 
        in a cost-effective manner.
    (c) Opportunity To Dispute Finding.--The Secretary shall provide an 
owner whose proposal to enter into a new contract has been rejected by 
the Secretary pursuant to one of the exceptions set forth in subsection 
(b) with an opportunity to dispute the basis for such rejection within 
30 days of receipt of notice by the owner of the rejection. The 
Secretary may affirm, modify, or reverse the decision to reject the 
owner's proposal. The Secretary's determination shall be final and 
shall not be subject to judicial review.

SEC. 613. RENEWAL PROCESS.

    (a) Secretary's Notice to Owner.--Not less than 27 months prior to 
the expiration of an assistance contract under section 8 the United 
States Housing Act of 1937, the Secretary shall notify the owner of the 
expiration date of the contract, the terms and conditions prerequisite 
to the Secretary's decision to enter into a new assistance contract, 
and the notice requirements and timetables required under this 
subtitle.
    (b) Owner's Initial Election.--Not later than 24 months prior to 
the expiration date, the owner shall make an initial election to enter 
into a new contract or terminate the contract upon the expiration date.
    (c) Formal Submission of Detailed Proposal To Enter Into New 
Housing Assistance Contract.--Not later than 3 months after the date on 
which an owner elects to enter into a new contract pursuant to 
subsection (b), the owner shall submit to the Secretary a detailed 
proposal that meets the requirements of this subtitle.
    (d) Response by the Secretary to Owner's Proposal.--
            (1) Response deadline.--Not later than 120 days after 
        receipt of an owner's submission pursuant to subsection (c), 
        the Secretary shall accept, reject, or require a modification 
        of the proposal. If the Secretary fails to respond prior to the 
        expiration of the 120-day period, the proposal shall be deemed 
        to be accepted.
            (2) Evaluation and negotiation.--The Secretary shall 
        establish procedures to evaluate an owner's detailed proposal 
        and to negotiate the proposal with the owner.
            (3) Basis for rejection.--The Secretary may not reject a 
        proposal submitted pursuant to subsection (c) for any reason 
        other than those set forth in section 612(b).
            (4) Final decision.--Not later than 12 months prior to the 
        expiration date of an assistance contract, the Secretary shall 
        make a final decision regarding entering into a new assistance 
        contract.
    (e) Transition.--Subject to an owner's agreement, the Secretary 
shall extend the term of any expiring contract for a period sufficient 
to facilitate notice under this section. If an owner of a project with 
an expiring contract does not agree to extend the contract, the 
Secretary shall make available to tenants currently residing in the 
project assistance authorized under this subtitle.

SEC. 614. ASSISTANCE FOR TENANTS.

    (a) Eligible Tenants.--The Secretary shall make available to 
residents residing in units covered by an expiring contract that is not 
replaced with a new assistance contract either--
            (1) project-based assistance in a unit which is located in 
        the same market area, as defined by the Secretary, and for 
        which the rent does not exceed the amount chargeable for rent 
        under section 3(a) of the United States Housing Act of 1937; or
            (2) tenant-based assistance under section 8 of the United 
        States Housing Act of 1937.
    (b) Additional Assistance.--In connection with tenant-based 
assistance provided under subsection (a)(2), the Secretary is 
authorized to increase rent levels permitted under section 8(c)(1) of 
the United States Housing Act of 1937 for a period not to exceed 18 
months to facilitate a tenant's continued residence in the tenant's 
current dwelling unit.
    (c) Type of Assistance.--The Secretary shall determine the type of 
assistance to be provided under this section in consultation with 
eligible tenants.
    (d) Tenant Notification.--
            (1) In general.--Notwithstanding section 8(c)(9) of the 
        United States Housing Act of 1937, the owner shall provide 
        tenants with not less than 12 months notice prior to the 
        expiration date of the contract. Such notice shall specify the 
        process for entering into new assistance contracts under this 
        section, the status of the renewal process, and the types of 
        assistance that may be made available to tenants upon 
        expiration of the contract.
            (2) Authority to extend.--If the final plans for the 
        project have not been concluded 12 months prior to the contract 
        expiration date, the Secretary may extend the expiring contract 
        under identical terms for a period terminating 12 months after 
        the date on which notice is provided under paragraph (1).
    (e) Tenant and Community Opportunity To Comment.--The Secretary 
shall establish procedures that will provide tenants of a project 
covered by an expiring contract and the relevant unit or units of 
general local government an opportunity to participate in the renewal 
process. Such procedures shall include the provision of timely and 
adequate notice of proposed decisions (including an owner's decision 
not to enter into a new assistance contract or the Secretary's final 
decision to reject an owner's proposal), timely access to relevant 
information, and sufficient time and opportunity to comment on such 
information and proposed decisions.
    (f) Technical Assistance.--To further the purposes of this 
subtitle, the Secretary may provide, directly or indirectly, to 
nonprofit organizations and bona fide organizations representing or 
assisting tenants residing in projects with expiring contracts, 
technical assistance for activities in connection with contracts that 
are not likely to be replaced with a new assistance contract. Of the 
amounts appropriated under section 621, not more than $5,000,000 shall 
be available to carry out this subsection.

SEC. 615. PROCEDURES FOR VOLUNTARY SALE TO QUALIFIED PURCHASER.

    The Secretary shall establish procedures to facilitate the 
voluntary sale of each project subject to a contract that is not 
replaced with a new assistance contract pursuant to this section to a 
qualified purchaser who meets the requirements set forth in section 
618.

SEC. 616. RENT LEVELS IN NEW CONTRACTS.

    (a) Initial Rent Levels.--The Secretary shall approve proposed 
initial rent levels that do not exceed 120 percent of fair market rents 
for the relevant metropolitan market area, if such levels--
            (1) reflect the requirements of sections 617 and 618; and
            (2) do not exceed current rents under the expiring 
        contract, as adjusted under section 8(c)(2) of the United 
        States Housing Act of 1937.
Notwithstanding the Secretary's authority under this subsection, an 
owner of a project with current rent levels that do not exceed 120 
percent of fair market rents for the relevant metropolitan market area 
may, subject to the Secretary's approval, proceed under the budget-
based approach set forth in subsection (b) if the actual and projected 
costs of operating the project so require.
    (b) Budget-Based Approach.--
            (1) In general.--For owners whose proposed rent levels 
        exceed the amounts permitted under subsection (a), the 
        Secretary shall determine acceptable rent levels pursuant to 
        negotiations with the owner based upon actual and projected 
        costs of operating the project. Rents set pursuant to this 
        subsection shall be established, after considering any 
        refinancing or mortgage debt restructuring that occurs pursuant 
        to section 617, at a level that would provide income sufficient 
        to support the following:
                    (A) Debt service.--Debt service.
                    (B) Project operating expenses.--Project operating 
                expenses, including--
                            (i) contributions to adequate reserves;
                            (ii) the costs of maintenance and necessary 
                        rehabilitation, as approved by the Secretary; 
                        and
                            (iii) other costs permitted under section 8 
                        of the United States Housing Act of 1937 and 
                        approved by the Secretary.
                    (C) Operating losses allowance.--An adequate 
                allowance for potential operating losses due to 
                vacancies and failure to collect rents, as determined 
                by the Secretary.
                    (D) Reasonable rate of return allowance.--An 
                allowance for a reasonable rate of return to the owner, 
                as determined by the Secretary.
                    (E) Other expenses.--Other expenses determined 
                necessary by the Secretary.
            (2) Maximum rent.--The Secretary shall not enter into new 
        contracts with an owner of a qualified housing project if the 
        rents set pursuant to this subsection exceed the lesser of--
                    (A) current rents under the expiring contract, as 
                adjusted pursuant to section 8(c)(2) of the United 
                States Housing Act of 1937;
                    (B) 144 percent of the fair market rents for the 
                metropolitan market area; and
                    (C) rent levels of comparable unassisted housing in 
                the same local market area.
            (3) Exceptions to maximum rent.--
                    (A) In general.--The Secretary is authorized to 
                enter into new contracts with owners at rents that 
                exceed the maximum rent set forth in paragraph (2) if 
                the Secretary--
                            (i) in consultation with tenants and the 
                        relevant unit of general local government, 
                        determines that the project represents a unique 
                        housing resource;
                            (ii) in consultation with tenants and the 
                        relevant unit of general local government, 
                        determines that the housing needs of the 
                        tenants and the community in which the project 
                        is located cannot be adequately addressed 
                        through the Secretary's provision of tenant-
                        based or project-based assistance to current 
                        tenants, in accordance with subsections (a) and 
                        (b) of section 615; or
                            (iii) determines that the project cannot be 
                        refinanced or restructured, pursuant to the 
                        exceptions set forth in section 617(d).
                    (B) Rent levels.--The Secretary may enter into new 
                contracts at rent levels--
                            (i) in connection with projects that meet 
                        the exceptions set forth in clause (i) or (ii) 
                        of subparagraph (A), that are the higher of 
                        rents determined under the budget-based process 
                        set forth in paragraph (1) or rents of 
                        comparable unassisted housing in the same 
                        market area; and
                            (ii) in connection with projects that only 
                        meet the exception set forth in clause (iii) of 
                        subparagraph (A), that are the lower of rents 
                        determined under the budget-based process set 
                        forth in paragraph (1) or current rent levels, 
                        as adjusted pursuant to section 8(c)(2) of the 
                        United States Housing Act of 1937.
    (c) Rent Adjustments.--The Secretary shall adjust initial rents 
approved under subsection (a) pursuant to section 8(c)(2) of the United 
States Housing Act of 1937. The Secretary shall make any adjustments to 
initial rents approved under subsection (b) pursuant to an annual 
operating cost adjustment.

SEC. 617. FINANCING AND RESTRUCTURING UNDERLYING DEBT; DISCRETIONARY 
              AUTHORITIES; RESIDUAL RECEIPTS.

    (a) In General.--Prior to entering into a new contract with a 
present or future owner of qualified housing under section 8(z) of the 
United States Housing Act of 1937 (as added by section 611) the 
Secretary shall encourage and, subject to the exceptions in subsection 
(d), may require--
            (1) the restructuring of debt if the costs to the Federal 
        Government of such restructuring are less than the costs 
        incurred by the Federal Government under a section 8 contract 
        at the project's current debt level; and
            (2) the refinancing of all debt that is financed at a rate 
        250 basis points in excess of prevailing market rates for debt 
        with a similar maturity.
Notwithstanding section 8(c)(2)(C) of the United States Housing Act of 
1937, any project refinancing or debt restructuring shall be 
accompanied by a corresponding reduction in section 8 rent levels.
    (b) FHA-Insured and Section 202 Projects.--Subject to the 
exceptions set forth in subsection (d), prior to entering into a new 
contract with an owner of a project insured by the Secretary or 
assisted under section 202 of the Housing Act of 1959, the Secretary 
shall require any debt to be restructured or refinanced to a level 
sufficient to meet the maximum rent requirements of section 616(b).
    (c) State-Financed Projects.--The Secretary shall establish 
procedures to inform State agencies that insure or finance mortgages of 
the provisions of this subtitle, and shall encourage such agencies to 
refinance or otherwise restructure debt which meets the conditions of 
paragraph (1) or (2) of subsection (a).
    (d) Exceptions.--The Secretary shall not require the refinancing or 
debt restructuring of any project, if--
            (1) the project was financed through obligations where such 
        refinancing or debt restructuring is inconsistent with 
        applicable law or agreements governing such financing; or
            (2) in the Secretary's determination, the refinancing will 
        not result in significant savings to the Secretary or to the 
        mortgagor.
    (e) Discretionary Assistance.--To facilitate renewal consistent 
with this section and section 616(b), the Secretary may, from amounts 
appropriated under this subtitle--
            (1) pay the owner's nonmortgagable transaction costs;
            (2) provide the State agency or the mortgagee with an 
        equitable share of the savings recaptured from the refinancing;
            (3) apply a share of the savings recaptured from the 
        refinancing to the project's reserves or capital expenses;
            (4) bifurcate the note to leave a first note serviceable 
        within rents reflective of the local market; and
            (5) assist in financing a project's rehabilitation needs 
        through the provision of up-front grants from--
                    (A) residual receipts distributed to the Secretary;
                    (B) the budget authority provided for increases in 
                new assistance contracts under section 8 of the United 
                States Housing Act of 1937 to pay for rehabilitation, 
                if the Secretary determines that the provision of such 
                grants in addition to section 8 rental assistance would 
                be cost-effective; and
                    (C) savings resulting from refinancing or otherwise 
                restructuring the debt.
    (f) Residual Receipts.--
            (1) In general.--Residual receipts distributed to the 
        Secretary shall be retained by the Secretary for use under 
        section 8(z) of the United States Housing Act of 1937.
            (2) Expedited acquisition.--The Secretary may expedite the 
        acquisition of residual receipts by entering into agreements 
        with owners of housing covered by an expiring contract to 
        provide such owner with a share of the receipts, not to exceed 
        15 percent, only if the share will be applied to the project or 
        to its reserves.

SEC. 618. RENEWAL REQUIREMENTS.

    The Secretary may enter into a new contract for assistance under 
section 8(z) of the United States Housing Act of 1937 with an owner or 
purchaser of qualified housing only if--
            (1) the owner or purchaser agrees to--
                    (A) a basic contract term of not less than 5 years; 
                and
                    (B) renewal of the contract for additional terms of 
                5 years, without limitation, subject to the 
                availability of appropriations and the Secretary's 
                procedures governing renewal, as set forth in this 
                subtitle;
            (2) the owner or purchaser agrees to a proposed method for 
        calculating rent consistent with section 616;
            (3) the owner or purchaser agrees to a sound financial 
        management program, consistent with section 617;
            (4) the owner or purchaser agrees to provide adequate 
        organization, staff, and financial resources to the project;
            (5) the Secretary determines that proposed rent levels are 
        sufficient to ensure that the project will remain in decent, 
        safe, and sanitary condition and in compliance with any 
        standards under applicable Federal, State, or local laws, 
        rules, ordinances, regulations, or contractual provisions 
        relating to the physical condition of the project; and
            (6) the owner or purchaser agrees to meet such other 
        requirements as the Secretary determines appropriate.

SEC. 619. DELEGATION OF AUTHORITY.

    The Secretary may delegate authority under this subtitle as the 
Secretary deems appropriate to officials of State or local government.

SEC. 620. DEFINITIONS.

    (a) Definitions.--For purposes of this subtitle--
            (1) the term ``expiration date'' means the date on which an 
        expiring contract expires;
            (2) the term ``expiring contract'' means, in connection 
        with the new construction or substantial rehabilitation of 
        certain multifamily housing projects, assistance under section 
        8(b)(2) of the United States Housing Act of 1937, as such 
        section existed before November 30, 1983, which, under the 
        terms of the contract, will expire;
            (3) the term ``knowing'' or ``knowingly'' means having 
        actual knowledge of or acting with deliberate ignorance or 
        reckless disregard;
            (4) the term ``qualified housing'' means--
                    (A) a multifamily housing project that was 
                constructed or substantially rehabilitated pursuant to 
                assistance provided under section 8(b)(2) of the United 
                States Housing Act of 1937, as such section existed 
                before November 30, 1983, and for which assistance is 
                provided pursuant to an expiring contract;
                    (B) housing described in subparagraph (A) that is 
                acquired by a purchaser; or
                    (C) housing under an assistance contract pursuant 
                to section 614(a)(1); and
            (5) the term ``renewal'' means the replacement of an 
        expiring contract with a new contract for assistance under 
        section 8 of the United States Housing Act of 1937, pursuant to 
        the procedures of this subtitle.

SEC. 621. IMPLEMENTATION.

    The Secretary shall establish such requirements as may be necessary 
to carry out the provisions of this subtitle. The Secretary shall 
issue--
            (1) a proposed rule not later than 6 months after the date 
        of enactment of this Act; and
            (2) a final rule based on the proposed rule, after notice 
        and opportunity for public comment, not later than 1 year after 
        the date of enactment of this Act.

SEC. 622. EVALUATION.

    The Secretary shall carry out a study of the renewal process 
authorized under this subtitle. The study shall include an assessment 
of--
            (1) the number of projects and corresponding units on which 
        the contracts are terminated, the location of such projects, 
        and the reasons for such termination;
            (2) the types of displacement assistance offered pursuant 
        to section 614;
            (3) the amount of savings generated;
            (4) the number of projects where debt has been refinanced 
        or otherwise restructured, together with the resulting savings 
        amount;
            (5) the number of projects acquired by a purchaser;
            (6) the difference, if any, in rent levels under an 
        expiring contract and new rent levels established under a new 
        contract for assistance; and
            (7) the numbers of projects for which rents are established 
        pursuant to section 616(a).

SEC. 623. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated under section 5(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f) for contracts under 
section 8(z) of such Act such sums as may be necessary to carry out the 
provisions of this subtitle.

             Subtitle C--Other Section 8 Program Amendments

SEC. 631. REFINANCING HIGH INTEREST MULTIFAMILY MORTGAGES AND 
              ELIMINATING UNNECESSARY COSTS.

    (a) Refinancing Incentive.--Section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f), as amended by section 611, is amended by 
adding at the end the following new subsection:
    ``(aa) Refinancing Incentive.--
            ``(1) In general.--The Secretary may pay all or part of the 
        up front costs of refinancing for each project that--
                    ``(A) is constructed, substantially rehabilitated, 
                or moderately rehabilitated under this section;
                    ``(B) is subject to an assistance contract under 
                this section; and
                    ``(C) was subject to a mortgage that has been 
                refinanced under section 223(a)(7) or section 223(f) of 
                the National Housing Act to lower the periodic debt 
                service payments of the owner.
            ``(2) Share from reduced assistance payments.--The 
        Secretary may pay the up front costs of refinancing only--
                    ``(A) to the extent that funds accrue to the 
                Secretary from the reduced assistance payments that 
                result from the refinancing; and
                    ``(B) after the application of amounts in 
                accordance with section 1012 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988.''.
    (b) FHA Contract Amendments.--Section 223(a)(7) of the National 
Housing Act (42 U.S.C. 1715n(a)(7)) is amended--
            (1) in subparagraph (B), by striking ``and'' at the end; 
        and
            (2) by striking ``; or'' at the end and inserting the 
        following: ``; and (D) any multifamily mortgage that is 
        refinanced under this paragraph shall be documented through 
        amendments to the existing insurance contract and shall not be 
        structured through the provision of a new insurance contract; 
        or''.

SEC. 632. TERMINATION AND REUSE OF SECTION 8 HAP CONTRACT BUDGET 
              AUTHORITY.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), as amended by sections 611 and 631, is amended by adding at the 
end the following new subsection:
    ``(bb)  Termination of Section 8 Contracts and Reuse of Recaptured 
Budget Authority.--
            ``(1) General authority.--The Secretary may reuse any 
        budget authority that is recaptured on account of the 
        termination, in whole or in part, of a housing assistance 
        payments contract (other than a contract for tenant-based 
        assistance) only for one or more of the following:
                    ``(A) Tenant-based assistance.--Pursuant to a 
                contract with a public housing agency, to provide 
                tenant-based assistance under this section to families 
                occupying units formerly assisted under the terminated 
                contract.
                    ``(B) Project-based assistance.--Pursuant to a 
                contract with a public housing agency, or directly with 
                an owner, to provide assistance to permit the agency to 
                attach the assistance to one or more structures, in 
                accordance with subsection (d)(2) or (o), except that 
                this assistance shall not be taken into consideration 
                in determining compliance with any percentage 
                limitation for project-based assistance under 
                subsection (d)(2) or (o).
            ``(2) Families occupying units formerly assisted under 
        terminated contract.--In choosing among the alternatives set 
        forth in paragraph (1), the Secretary shall first make 
        available tenant- or project-based assistance to families 
        occupying units formerly assisted under the terminated 
        contract.
            ``(3) New rents.--Rents established in connection with a 
        contract under this subsection shall be established in 
        accordance with subsection (c)(2), but shall not exceed the 
        amount of rent previously paid under the terminated contract.
            ``(4) Budget savings.--To the extent that new rents 
        established under paragraph (3) are less than the amount of 
        rent previously paid under the terminated contract, any budget 
        authority remaining shall be rescinded.''.

SEC. 633. CIVIL MONEY PENALTIES FOR VIOLATION OF SECTION 8 HAP 
              CONTRACTS.

    (a) Basic Authority.--Title I of the United States Housing Act of 
1937 (42 U.S.C. 1437 et seq.), as amended by section 201, is amended by 
adding at the end the following new section:

``SEC. 28. CIVIL MONEY PENALTIES AGAINST SECTION 8 OWNERS.

    ``(a) In General.--The penalties set forth in this section shall be 
in addition to any other available civil remedy or criminal penalty, 
and may be imposed regardless of whether or not the Secretary imposes 
other administrative sanctions. The Secretary may not impose penalties 
under this section for a violation, if a material cause of the 
violation is the failure of the Secretary, an agent of the Secretary, 
or a public housing agency to comply with an existing agreement.
    ``(b) Violations of Housing Assistance Payment Contracts for Which 
Penalty May Be Imposed.--
            ``(1) Liable parties.--The Secretary may impose a civil 
        money penalty under this section on--
                    ``(A) any owner of a property receiving project-
                based assistance under section 8;
                    ``(B) any general partner of a partnership owner of 
                such property; and
                    ``(C) any agent employed to manage the property 
                that has an identity of interest with the owner or the 
                general partner of a partnership owner of the property.
            ``(2) Violations.--A penalty may be imposed under this 
        section in connection with project-based assistance under 
        section 8 for a knowing and material breach of a housing 
        assistance payments contract, including the following:
                    ``(A) Decent, safe, and sanitary housing.--Failure 
                to provide decent, safe, and sanitary housing.
                    ``(B) False statements.--Knowing or willful 
                submission of false, fictitious, or fraudulent 
                statements or requests for housing assistance payments 
                to the Secretary or to any department or agency of the 
                United States.
            ``(3) Amount of penalty.--The amount of a penalty imposed 
        for a violation under this subsection, as determined by the 
        Secretary, may not exceed $25,000 per violation.
    ``(c) Agency Procedures.--
            ``(1) Establishment.--The Secretary shall issue regulations 
        establishing standards and procedures governing the imposition 
        of civil money penalties under subsection (b). Such standards 
        and procedures--
                    ``(A) shall provide for the Secretary or other 
                department official to make the determination to impose 
                the penalty;
                    ``(B) shall provide for the imposition of a penalty 
                only after the liable party has received notice and the 
                opportunity for a hearing on the record; and
                    ``(C) may provide for review by the Secretary of 
                any determination or order, or interlocutory ruling, 
                arising from such hearing, and judicial review, as 
                provided under subsection (d).
            ``(2) Final orders.--If a hearing is not requested prior to 
        the expiration of the 15-day period beginning on the date on 
        which the notice of opportunity for hearing is received, the 
        imposition of a penalty under subsection (b) shall constitute a 
        final and nonappealable determination. If the Secretary reviews 
        the determination or order, the Secretary may affirm, modify, 
        or reverse that determination or order. If the Secretary does 
        not review the determination or order before the expiration of 
        the 90-day period beginning on the date on which the 
        determination or order is issued, the determination or order 
        shall be final.
            ``(3) Factors in determining amount of penalty.--In 
        determining the amount of a penalty under subsection (b), the 
        Secretary shall take into consideration--
                    ``(A) the gravity of the offense;
                    ``(B) any history of prior offenses (including 
                offenses occurring before the date of enactment of this 
                section) by the violator;
                    ``(C) the ability of the violator to pay the 
                penalty;
                    ``(D) any injury to tenants;
                    ``(E) any injury to the public;
                    ``(F) any benefits received by the violator as a 
                result of the violation;
                    ``(G) the deterrence of future violations; and
                    ``(H) such other factors as the Secretary may 
                establish by regulation.
            ``(4) Payment of penalty.--No payment of a civil money 
        penalty levied under this section shall be payable out of 
        project income.
    ``(d) Judicial Review of Agency Determination.--Judicial review of 
determinations made under this section shall be carried out in 
accordance with section 537(e) of the National Housing Act.
    ``(e) Remedies for Noncompliance.--
            ``(1) Judicial intervention.--If a person or entity fails 
        to comply with the Secretary's determination or order imposing 
        a civil money penalty under subsection (b), after the 
        determination or order is no longer subject to review as 
        provided by subsections (c) and (d), the Secretary may request 
        the Attorney General of the United States to bring an action in 
        an appropriate United States district court to obtain a 
        monetary judgment against that person or entity and such other 
        relief as may be available. The monetary judgment may, in the 
        court's discretion, include the attorney's fees and other 
        expenses incurred by the United States in connection with the 
        action.
            ``(2) Nonreviewability of determination or order.--In an 
        action under this subsection, the validity and appropriateness 
        of the Secretary's determination or order imposing the penalty 
        shall not be subject to review.
    ``(f) Settlement by Secretary.--The Secretary may compromise, 
modify, or remit any civil money penalty which may be, or has been, 
imposed under this section.
    ``(g) Deposit of Penalties.--Notwithstanding any other provision of 
law, the Secretary shall apply all civil money penalties collected 
under this section, or any portion of such penalties, to the fund 
established under section 201(j) of the Housing and Community 
Development Amendments of 1978.
    ``(h) Definitions.--For purposes of this section--
            ``(1) the term `identity of interest managing agent' means 
        an entity--
                    ``(A) that has management responsibility for a 
                project;
                    ``(B) in which the ownership entity, including its 
                general partner or partners (if applicable), has an 
                ownership interest; and
                    ``(C) over which such ownership entity exerts 
                effective control;
            ``(2) the terms `ownership interest in' and `effective 
        control' shall have such meanings as the Secretary shall by 
        regulation prescribe; and
            ``(3) the term `knowing' means having actual knowledge of 
        or acting with deliberate ignorance of or reckless disregard 
        for the prohibitions under this section.''.
    (b) Applicability of Amendments.--The amendments made by subsection 
(a) shall apply only with respect to--
            (1) violations that occur on or after the effective date of 
        final regulations implementing the amendments made by this 
        section; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary), any portion of a violation that occurs on or 
        after such date.
    (c) Implementation.--
            (1) Regulations.--The Secretary shall implement the 
        amendments made by this section by regulation issued after 
        notice and opportunity for public comment. The notice shall 
        seek comments as to the definitions of the terms ``ownership 
        interest in'' and ``effective control'', as such terms are used 
        in the definition of the term ``identity of interest managing 
        agent''.
            (2) Timing.--A proposed rule implementing the amendments 
        made by this section shall be published not later than January 
        20, 1995.

                     Subtitle D--Supportive Housing

SEC. 641. SECTION 811 RENTAL ASSISTANCE FOR PERSONS WITH DISABILITIES.

    (a) Rental Assistance for Existing Buildings.--Section 811 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is 
amended--
            (1) in subsection (d)(2), by adding at the end the 
        following: ``The Secretary may enter into contracts with 
        private nonprofit organizations to provide project rental 
        assistance for supportive housing for persons with 
        disabilities, regardless of whether or not that housing is 
        developed with capital advances under this section.'';
            (2) in subsection (e)--
                    (A) in paragraph (1), by inserting ``with capital 
                advances'' immediately after ``assisted''; and
                    (B) in paragraph (2), by striking the first 2 
                sentences and inserting the following: ``The initial 
                term of a contract entered into under subsection (d)(2) 
                shall be 240 months for housing developed with a 
                capital advance, and shall be not more than 60 months 
                for housing not developed with a capital advance. The 
                Secretary shall, to the extent approved in 
                appropriations Acts, extend any expiring contracts for 
                a term of not less than 60 months.'';
            (3) in subsection (g)--
                    (A) in paragraph (1), by inserting ``(if 
                applicable)'' immediately after ``develop'';
                    (B) in paragraph (3), by inserting ``design or'' 
                immediately after ``which the''; and
                    (C) in paragraph (5), by inserting ``design or'' 
                immediately after ``which the'';
            (4) in subsection (j)--
                    (A) in paragraph (3)--
                            (i) by striking ``An'' and inserting the 
                        following:
                    ``(A) If the housing is to be assisted with capital 
                advances under this section, an''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(B) If the housing is to be assisted only with 
                project rental assistance, the applicant shall have 
                ownership or control of a suitable site at the time of 
                application. The Secretary may approve a change in site 
                at any time from the date the application is submitted 
                to the expiration date of the rental assistance 
                contract.''; and
                    (B) in paragraph (4), by striking ``The'' and 
                inserting the following: ``If the housing is assisted 
                with capital advances under this section, the'';
            (5) in subsection (k)--
                    (A) in the second sentence of paragraph (1), by 
                striking ``the development of'';
                    (B) in paragraph (4), by inserting after 
                ``project'' the following: ``, consisting of one or 
                more buildings,''; and
                    (C) in paragraph (5), by inserting immediately 
                after ``disabilities'' the following: ``, or that 
                receives rental assistance under this section to 
                operate or project for supportive housing for persons 
                with disabilities''; and
            (6) in subsection (m)(3), by striking ``(1)'' and inserting 
        ``(2)''.
    (b) Technical Changes.--
            (1) Definition of private nonprofit organization.--Section 
        811(k)(6)(A) of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 8013(k)(6)(A)) is amended to read as 
        follows:
                  ``(A) that has received tax-exempt status under 
                paragraph (3) or (4) of section 501(c) of the Internal 
                Revenue Code of 1986;''.
            (2) Repeal.--Section 8(i) of the United States Housing Act 
        of 1937 (42 U.S.C. 8013(i)) is hereby repealed.

SEC. 642. SERVICE COORDINATORS IN SUPPORTIVE HOUSING.

    There are authorized to be appropriated for assistance for service 
coordinators under section 676 of the Housing and Community Development 
Act of 1992, section 8(d)(2)(F)(i) of the United States Housing Act of 
1937, section 202 of the Housing Act of 1959, and section 811 of the 
Cranston-Gonzalez National Affordable Housing Act, $15,000,000 for 
fiscal year 1995, and $15,000,000 for fiscal year 1996.

SEC. 643. FUNDING FOR SUPPORTIVE HOUSING FOR THE ELDERLY.

    Section 601 of the Housing and Community Development Act of 1992 
(106 Stat. 3802) is amended by striking subsection (a) and inserting 
the following:
    ``(a) Authorization of Appropriations.--
            ``(1) Supportive housing for the elderly.--There are 
        authorized to be appropriated to carry out section 202 of the 
        Housing Act of 1949--
                    ``(A) $1,015,000,000 for fiscal year 1995; and
                    ``(B) $1,045,450,000 for fiscal year 1996.''.

SEC. 644. FUNDING FOR SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

    Section 601(a) of the Housing and Community Development Act of 1992 
(106 Stat. 3802(a)), as amended by section 623, is amended by adding at 
the end the following new subsection:
            ``(2) Supportive housing for persons with disabilities.--
        There are authorized to be appropriated to carry out section 
        811 of the Cranston-Gonzalez National Affordable Housing Act--
                    ``(A) $435,000,000 for fiscal year 1995; and
                    ``(B) $448,050,000 for fiscal year 1996.''.

SEC. 645. HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS.

    (a) Authorization of Appropriations.--Section 863 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12912) is amended 
to read as follows:

``SEC. 863. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $166,000,000 for fiscal year 1995 and $166,000,000 for fiscal 
year 1996.''.

                  Subtitle E--Miscellaneous Provisions

SEC. 651. FLEXIBLE SUBSIDY PROGRAM.

    (a) Authorization of Appropriations.--Section 201(j)(5) of the 
Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z-
1a(j)(5)) is amended to read as follows:
            ``(5) There are authorized to be appropriated for 
        assistance under the flexible subsidy fund an amount not to 
        exceed $50,000,000 for fiscal year 1995, and not to exceed 
        $50,000,000 for fiscal year 1996.''.
    (b) Use of Section 236 Rental Assistance Fund Amounts.--Section 
236(f)(3) of the National Housing Act (12 U.S.C. 1715z-1(f)(3)) is 
amended by striking the last sentence.

SEC. 652. EXTENSION OF SECTION 221(g)(4) AUCTION PROVISIONS.

    The first sentence of section 221(g)(4)(C)(viii) of the National 
Housing Act (12 U.S.C. 1715l(g)(4)(C)(viii)) is amended by striking 
``September 30, 1995'' and inserting ``December 31, 2005''.

SEC. 653. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT DEMONSTRATIONS.

    Section 542 of the Housing and Community Development Act of 1992 
(12 U.S.C. 1708) is amended--
            (1) in subsection (b)(5), by striking ``15,000 units over 
        fiscal years 1993 and 1994'' and inserting ``25,000 units over 
        fiscal years 1993 through 1996''; and
            (2) in subsection (c)(4), by striking ``30,000 units over 
        fiscal years 1993, 1994, and 1995'' and inserting ``40,000 
        units over fiscal years 1993 through 1997''.

SEC. 654. INDEMNIFICATION FOR PROJECT MANAGERS.

    Section 207(l) of the National Housing Act (12 U.S.C. 1713(l)) is 
amended by adding at the end the following: ``For properties acquired 
by the Secretary under this section and for properties securing any 
mortgage assigned and transferred to or held by the Secretary, the 
Secretary may indemnify management contractors against claims brought 
by third persons for death, bodily injury, or loss of or damage to 
property on such terms as the Secretary determines appropriate.''.

SEC. 655. CIVIL MONEY PENALTIES AGAINST GENERAL PARTNERS AND CERTAIN 
              MANAGING AGENTS OF MULTIFAMILY HOUSING PROJECTS.

    (a) Civil Money Penalties Against Multifamily Mortgagors.--Section 
537 of the National Housing Act (12 U.S.C. 1735f-15) is amended--
            (1) in subsection (b)(1), by inserting after ``mortgagor'' 
        the second place it appears the following: ``or general partner 
        of a partnership mortgagor'';
            (2) in subsection (c)--
                    (A) by striking the heading and inserting the 
                following:
    ``(c) Other Violations.--''; and
                    (B) in paragraph (1)--
                            (i) by striking ``The Secretary may'' and 
                        all that follows through the colon and 
                        inserting the following:
                    ``(A) Liable parties.--The Secretary may also 
                impose a civil money penalty under this section on--
                            ``(i) any mortgagor of a property that 
                        includes 5 or more living units and that has a 
                        mortgage insured, coinsured, or held pursuant 
                        to this Act;
                            ``(ii) the general partner of a partnership 
                        mortgagor of such property; or
                            ``(iii) any agent employed to manage the 
                        property that has an identity of interest with 
                        the mortgagor or the general partner of a 
                        partnership mortgagor of such property.
                    ``(B) Violations.--A penalty may be imposed under 
                this paragraph for knowingly and materially taking any 
                of the following actions:'';
                            (ii) in subparagraph (B), as redesignated, 
                        by redesignating subparagraphs (A) through (L) 
                        as clauses (i) through (xii), respectively;
                            (iii) by adding after clause (xii), as 
                        redesignated, the following new clauses:
                            ``(xiii) Failure to maintain the premises, 
                        accommodations, and the grounds and equipment 
                        appurtenant thereto in good repair and 
                        condition in accordance with regulations and 
                        requirements of the Secretary, except that 
                        nothing in this clause shall have the effect of 
                        altering the provisions of an existing 
                        regulatory agreement or federally insured 
                        mortgage on the property.
                            ``(xiv) Failure, by a mortgagor or general 
                        partner of a partnership mortgagor, to provide 
                        management for the project that is acceptable 
                        to the Secretary pursuant to regulations and 
                        requirements of the Secretary.''; and
                            (iv) in the last sentence, by deleting ``of 
                        such agreement'' and inserting ``of this 
                        subsection'';
            (3) in subsection (d)--
                    (A) in paragraph (1)(B), by inserting after 
                ``mortgagor'' the following: ``, general partner of a 
                partnership mortgagor, or identity of interest agent 
                employed to manage the property,''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(5) Payment of penalty.--No payment of a civil money 
        penalty levied under this section shall be payable out of 
        project income.'';
            (4) in subsection (e)(1), by deleting ``a mortgagor'' and 
        inserting ``an entity or person'';
            (5) in subsection (f), by inserting after ``mortgagor'' 
        each place such term appears the following: ``, general partner 
        of a partnership mortgagor, or identity of interest agent 
        employed to manage the property,'';
            (6) by striking the heading of subsection (f) and inserting 
        the following: ``Civil Money Penalties Against Multifamily 
        Mortgagors, General Partners of Partnership Mortgagors, and 
        Certain Managing Agents'';
            (7) in subsection (j), by striking ``all civil money'' and 
        all that follows through the period at the end and inserting 
        the following: ``the Secretary shall apply all civil money 
        penalties collected under this section, or any portion of such 
        penalties, to the fund established under section 201(j) of the 
        Housing and Community Development Amendments of 1978.''; and
            (8) by adding at the end the following new subsection:
    ``(k) Identity of Interest Managing Agent.--For purposes of this 
section, the term `identity of interest managing agent' means an 
entity--
            ``(1) that has management responsibility for a project;
            ``(2) in which the ownership entity, including its general 
        partner or partners (if applicable), has an ownership interest; 
        and
            ``(3) over which such ownership entity exerts effective 
        control.''.
    (b) Implementation.--
            (1) Public comment.--The Secretary shall implement the 
        amendments made by this section by regulation issued after 
        notice and opportunity for public comment. The notice shall 
        seek comments primarily as to the definitions of the terms 
        ``ownership interest in'' and ``effective control'', as such 
        terms are used in the definition of identity of the term 
        ``interest managing agent''.
            (2) Timing.--A proposed rule implementing the amendments 
        made by this section shall be published not later than January 
        20, 1995.
    (c) Applicability of Amendments.--The amendments made by subsection 
(a) shall apply only with respect to--
            (1) violations that occur on or after the effective date of 
        the final regulations implementing the amendments made by this 
        section; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary), any portion of a violation that occurs on or 
        after such date.

SEC. 656. EXTENSION OF EQUITY SKIMMING TO OTHER MULTIFAMILY HOUSING 
              PROGRAMS.

    Section 254 of the National Housing Act (12 U.S.C. 1715z-19) is 
amended--
            (1) by inserting ``202 (as such program existed before the 
        date of enactment of the Cranston-Gonzalez National Affordable 
        Housing Act),'' before ``203,'';
            (2) by inserting ``221(d)(2),'' after ``220,'';
            (3) by inserting ``222,'' after ``221(d)(4),'';
            (4) by inserting ``235,'' after ``234,'';
            (5) by inserting ``255,'' after ``244,''; and
            (6) by inserting ``or 542(b) or 542(c) of the Housing and 
        Community Development Act of 1992,'' after ``title XI,''.

SEC. 657. COMPREHENSIVE NEEDS ASSESSMENTS.

    (a) In General.--Section 401(1)(A) of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-1a note) is amended--
            (1) in clause (iii), by striking ``or'' at the end;
            (2) in clause (iv), by striking ``and'' at the end and 
        inserting ``or''; and
            (3) by adding at the end the following new clause:
            ``(iv) is insured by the Secretary and is receiving housing 
        assistance payments under section 8 of the United States 
        Housing Act of 1937 (excluding payments made for tenant-based 
        assistance under section 8 or for projects assisted under 
        section 515 of the Housing Act of 1949); and''.
    (b) Technical Amendment.--Section 202(a) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1715z-1b(a)) is 
amended in the second sentence by striking ``section 201(c)'' and 
inserting ``subparagraphs (A), (B), and (C) of section 201(c)(1)''.

SEC. 658. AUTHORIZATION OF APPROPRIATIONS FOR GENERAL INSURANCE FUND 
              AND SPECIAL RISK INSURANCE FUND.

    Section 542 of the National Housing Act (12 U.S.C. 1735f-20) is 
amended by striking ``1994 and 1995'' and inserting ``1995 and 1996''.

SEC. 659. FHA MORTGAGE INSURANCE LIMITS FOR MULTIFAMILY HOUSING IN HIGH 
              COST AREAS.

    Sections 207(c)(3), 213(b)(2), 221(d)(3)(ii), 221(d)(4)(ii), 
231(c)(2), and 234(e)(3) of the National Housing Act (12 U.S.C. 
1713(c)(3), 1715e(b)(2), 1715l(d)(3)(ii), 1715l(d)(4)(ii), 1715v(c)(2); 
and 1715y(e)(3)) are amended by striking ``140 percent'' in each place 
it appears and inserting in lieu thereof ``147 percent''.

SEC. 660. ELIMINATION OF NEW ACTIVITY IN LOW-USE MULTIFAMILY 
              DEVELOPMENT PROGRAMS.

    (a) Section 220.--Section 220 of the National Housing Act (12 
U.S.C. 1715k) is amended by adding at the end the following new 
subsection:
    ``(i) Termination of Authority.--Beginning 30 days after the 
effective date of the Housing Choice and Community Investment Act of 
1994, the Secretary may not accept new applications for mortgage 
insurance under this section.''.
    (b) Title XI.--Section 1101 of the National Housing Act (12 U.S.C. 
1749aaa) is amended by adding at the end the following new subsection:
    ``(g) Termination of Authority.--Beginning 30 days after the 
effective date of the Housing Choice and Community Investment Act of 
1994, the Secretary may not accept new applications for mortgage 
insurance under this title.''.

SEC. 661. REVISED CONGREGATE SERVICES.

    Section 802(d)(7) of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8011(d)(7)) is amended in subparagraph (A) by 
striking ``The fees for meals shall be in the following amounts:'' and 
all that follows through the end of the paragraph.

SEC. 662. STUDY ON FHA INSURED MULTIFAMILY HOUSING MORTGAGES.

    (a) In General.--The Secretary and the Comptroller General of the 
United States shall jointly conduct a study of the risks and benefits 
associated with the insurance of mortgages on multifamily housing by 
the Federal Housing Administration (hereafter in this section referred 
to as the ``FHA'') under the National Housing Act.
    (b) Scope of Study.--The study conducted under this section shall 
analyze--
            (1) the relationship between the default rates for the 
        various FHA multifamily mortgage insurance programs and the 
        credit subsidy amounts appropriated for these programs;
            (2) the availability of private mortgage credit for the 
        development and acquisition of multifamily housing;
            (3) ways to enhance the availability of private mortgage 
        credit, with and without FHA mortgage insurance, for the 
        development and acquisition of multifamily housing;
            (4) the effect of downpayment requirements and nonrecourse 
        lending on the claims rate under the mortgage insurance program 
        established by section 221(d)(4) of the National Housing Act 
        and ways to reduce the claims rate under such program;
            (5) the relative financial risks shared between the General 
        Insurance Fund and the Special Risk Insurance Fund under the 
        National Housing Act and developers of FHA insured multifamily 
        housing (including an analysis of the profits being realized by 
        developers under the insurance program established in section 
        221(d)(4) of the National Housing Act compared to the financial 
        risk to such developers);
            (6) the geographic diversity of FHA insured multifamily 
        housing, including the difference in the number of units, 
        project and per unit costs, and default rates (and any reasons 
        for anomalies in the default rates in any geographic region);
            (7) the need for low-income affordable multifamily housing 
        and the need for market rate multifamily housing by geographic 
        area, and specific reasons why this need is or is not addressed 
        in each area; and
            (8) the importance of FHA multifamily mortgage insurance in 
        providing decent, safe, and sanitary rental housing for low-
        income individuals and families.
    (c) Report.--Not later than 12 months after the date of enactment 
of this Act, the Secretary and the Comptroller General of the United 
States shall submit a report to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Banking, Finance and 
Urban Affairs of the House of Representatives regarding the findings of 
the study conducted pursuant to this section. Such report shall include 
any recommendations for increasing the availability of affordable 
multifamily housing and reducing the financial risk to the General 
Insurance Fund and the Special Risk Insurance Fund under the National 
Housing Act.

             TITLE VII--COMMUNITY AND ECONOMIC DEVELOPMENT

SEC. 701. COMMUNITY AND ECONOMIC DEVELOPMENT.

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

``SEC. 123. LEVERAGED INVESTMENTS FOR TOMORROW (LIFT) PROGRAM.

    ``(a) In General.--
            ``(1) Grants authorized.--The Secretary is authorized to 
        make project-specific assistance available in accordance with 
        the provisions of this section for the purpose of stimulating 
        economic activities that primarily benefit the low- and 
        moderate-income residents of an investment area.
            ``(2) Project goals.--The Secretary shall provide 
        assistance to projects in investment areas that--
                    ``(A) generate new investment;
                    ``(B) directly create or retain jobs for residents;
                    ``(C) increase the amount of disposable income 
                expended inside the investment area;
                    ``(D) promote physical and economic revitalization;
                    ``(E) increase the availability of goods and 
                services to residents; or
                    ``(F) enhance the upward mobility of residents.
    ``(b) Eligible Applicants.--In carrying out this section, the 
Secretary shall make assistance described in subsection (f) available 
to States, units of general local government, Indian tribes, and urban 
or rural community-based development organizations, and community 
development financial institutions.
    ``(c) Eligible Activities.--
            ``(1) In general.--The Secretary shall provide assistance 
        under this section only to fund activities in investment areas 
        including the rehabilitation, construction, or financing of--
                    ``(A) retail or service facilities;
                    ``(B) the nonhousing portion of mixed use projects;
                    ``(C) public facilities (except for buildings for 
                the general use of government);
                    ``(D) the creation of new or retention of existing 
                enterprises;
                    ``(E) incubator facilities to house small 
                enterprises; and
                    ``(F) light industrial facilities and equipment.
            ``(2) Forms of assistance.--Assistance made available under 
        this subsection may be in the form of grants, loans, credit 
        enhancement loan loss reserves, or other appropriate financing 
        mechanism.
    ``(d) Ineligible Activities.--The Secretary shall not provide 
assistance under this section to fund--
            ``(1) assistance to housing or housing related activities, 
        except as provided in subsection (c)(1)(B);
            ``(2) public services as described in section 105(a)(8);
            ``(3) assistance to develop or rehabilitate infrastructure 
        pursuant to section 105;
            ``(4) assistance to finance job training activities; or
            ``(5) assistance to finance working capital expenses.
    ``(e) Eligible Investment Areas.--Assistance made available under 
this section shall be used--
            ``(1) in areas that--
                    ``(A) have a continuous boundary;
                    ``(B) are not less than 50 percent residential;
                    ``(C) have a population of which not less than 20 
                percent is at or below the poverty level; and
                    ``(D) are located within a metropolitan or 
                nonmetropolitan area that is economically distressed 
                and physically deteriorated, according to criteria 
                determined by the Secretary; or
            ``(2) in areas that have been designated as an `Enterprise 
        Community' or `Empowerment Zone' pursuant to section 1391 of 
        the Internal Revenue Code of 1986.
    ``(f) Selection Process.--The Secretary shall select grantees under 
this section on a competitive basis in accordance with the following:
            ``(1) In general.--Each application for assistance shall--
                    ``(A) include the amount of assistance requested 
                and the proposed uses of funds;
                    ``(B) describe the demographic, physical, and 
                economic characteristics of the investment area;
                    ``(C) describe a specific, eligible activity;
                    ``(D) include an integrated strategy for the 
                economic and physical revitalization of the investment 
                area;
                    ``(E) demonstrate that the proposed project is an 
                important component of an ongoing effort to implement 
                the integrated strategy;
                    ``(F) certify that the proposed project is 
                consistent with the applicable community development 
                and housing plans of the State or unit of general local 
                government; and
                    ``(G) certify that the applicant will comply with 
                requirements of the Fair Housing Act, title VI of the 
                Civil Rights Act of 1964, section 504 of the 
                Rehabilitation Act of 1973, and the Age Discrimination 
                Act of 1975.
            ``(2) Awards.--The Secretary may select grantees for 
        assistance on a quarterly basis.
    ``(g) Selection Criteria.--The Secretary shall select grantees from 
among eligible applicants based on the following criteria:
            ``(1) Social and economic need.--The extent of economic and 
        social need in the investment area.
            ``(2) Physical need.--The extent of physical need in the 
        investment area, including the extent of deteriorated or vacant 
        and blighted commercial and residential buildings and the 
        extent of abandoned commercial and residential property.
            ``(3) Positive economic impact on investment area.--The 
        extent to which an applicant's project shall produce a positive 
        economic impact on the investment area, as evidenced by--
                    ``(A) creation or retention of jobs;
                    ``(B) creation, expansion, or retention of private, 
                for-profit entities, particularly those entities that 
                are wholly- or majority-owned by residents;
                    ``(C) removal of blighted and vacant or abandoned 
                land or buildings and the replacement of such with a 
                productive eligible activity;
                    ``(D) increase in the availability of goods and 
                services to residents; or
                    ``(E) the generation of new local tax revenue, 
                including any temporary tax abatement provided to 
                assist in the development of the project.
            ``(4) Leverage.--The extent of leverage of non-Federal 
        public and private resources.
            ``(5) Other investment.--The extent of other public or 
        private investment in the investment area.
            ``(6) Integrated strategy.--The extent to which the project 
        is a part of an ongoing effort to implement an integrated 
        strategy to facilitate investment and development in the 
        investment area.
            ``(7) Community participation.--The extent to which the 
        planning process for the project includes the active 
        participation of investment area residents.
    ``(h) Financial Viability Criteria.--The Secretary shall not 
provide assistance for any project that does not meet financial 
viability criteria established by the Secretary.
    ``(i) Leverage Requirements.--Notwithstanding section 105(a)(9), 
assistance provided under this section shall be leveraged with 
financing from sources other than the Federal Government on the basis 
of $2 of non-Federal funds for each $1 of assistance provided under 
this section, of which not less than $1 of the non-Federal funds 
leveraged shall be from sources other than a State or local government.
    ``(j) Limitations.--The Secretary shall--
            ``(1) not make assistance available in amounts less than 
        $250,000 or greater than $5,000,000;
            ``(2) establish a limit on the number of applications that 
        may be submitted and the aggregate amount of funds that can be 
        awarded within a unit of general local government during a 
        specified period of time; and
            ``(3) establish criteria to evaluate the financial 
        viability, economic impact, and cost reasonableness of a 
        proposed activity provided that assistance not be limited to 
        activities for which other forms of assistance are not 
        available or could not be accomplished but for that assistance.
    ``(k) Dissemination of Information.--The Secretary shall require 
each grantee to produce a report in the form of a case study. The 
Secretary shall select the most instructive case studies, including 
successful and unsuccessful projects, assemble them into a package, and 
make the package available to all grantees and possible grantees under 
this section.
    ``(l) Records and Reports.--
            ``(1) Records.--
                    ``(A) In general.--Each recipient of assistance 
                under this section shall keep such records as may be 
                reasonably necessary to disclose the amounts and 
                disposition of assistance received under this section 
                to ensure compliance with the purposes of this section.
                    ``(B) Audits and examinations.--The Secretary and 
                Comptroller General of the United States shall have 
                access for the purpose of audit and examination to any 
                books, documents, papers, and records of the recipient 
                that are necessary to determine compliance with the 
                purposes of this section.
            ``(2) Reports.--Each recipient of assistance under this 
        section shall submit to the Secretary an annual report to the 
        Secretary describing--
                    ``(A) the uses of funds made available under this 
                subsection; and
                    ``(B) the impact of such funds in achieving the 
                purposes of this section.
    ``(m) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(2) State.--The term `State' has the same meaning as in 
        section 102.
            ``(3) Unit of general local government.--The term `unit of 
        general local government' has the same meaning as in section 
        102.
            ``(4) Indian tribe.--The term `Indian tribe' has the same 
        meaning as in section 102.
            ``(5) Community-based development organization.--The term 
        `community-based development organization' means a private, 
        locally or regionally initiated, nonprofit entity, governed by 
        a board consisting of residents, business people, and civic 
        leaders from the locality or region, which has a record of 
        implementing community and economic development projects or 
        whose articles of incorporation or bylaws indicate an 
        organizational focus on community and economic development.
            ``(6) Community development financial institution.--The 
        term `community development financial institution' has the same 
        meaning as in section 103(3) of the Community Development 
        Financial Institutions Act of 1994.
    ``(n) Authorization.--There are authorized to be appropriated for 
purposes of this section, $300,000,000 for fiscal year 1995, and 
$300,000,000 for fiscal year 1996. Of any amounts appropriated under 
this section, the Secretary shall provide assistance of not more than 
40 percent of the total amounts appropriated under this title to 
Enterprise Communities and Empowerment Zones. Any amounts appropriated 
shall remain available until expended.''.

SEC. 702. COLONIAS ASSISTANCE GRANTS.

    (a) Program Authorization.--The Secretary may make grants in 
accordance with the provisions of this section for use in addressing 
the community development and housing needs of colonias.
    (b) Funding Set-Aside.--
            (1) In general.--Of amounts allocated under subsection (h) 
        the Secretary shall set aside a target amount for grants under 
        this section for use in colonias in each State. The Secretary 
        shall determine the amount to be set aside, based on such 
        objective factors of need as the Secretary deems appropriate, 
        which may include rates of poverty in, and the population of, 
        colonias. The Secretary shall reallocate any amounts set aside 
        under this paragraph for which the Secretary determines there 
        will not be a sufficient number of eligible applications in a 
        fiscal year.
            (2) Use of funds.--Any amount not set aside or reallocated 
        under paragraph (1) may be used in colonias in any State.
    (c) Eligible Entities.--The Secretary may make grants in accordance 
with subsection (d) to--
            (1) units of general local government;
            (2) States;
            (3) nonprofit organizations; and
            (4) entities or instrumentalities established under the 
        authority of any of the entities described in paragraph (1), 
        (2), or (3).
    (d) Selection of Grantees.--
            (1) In general.--The Secretary shall select grantees under 
        this section from among the entities described in subsection 
        (c) on the basis of a competition, following publication of a 
        notice of funding availability in the Federal Register.
            (2) Selection criteria.--In selecting projects for grants 
        under this section, the Secretary shall consider--
                    (A) the extent of need in the colonia;
                    (B) the likely effectiveness of the proposed 
                approach in addressing identified needs;
                    (C) the extent to which funding for the project is 
                committed from sources other than under this section;
                    (D) the extent to which the application represents 
                an innovative approach to addressing the needs of 
                colonias; and
                    (E) such other factors as the Secretary deems 
                appropriate to carry out the objectives of this 
                section.
    (e) Eligible Activities.--A grant made under this section may be 
used to carry out one or more of the following activities:
            (1) Certain other eligible activities.--Any activity 
        eligible under section 105 of the Housing and Community 
        Development Act of 1974 or section 212(a) of the HOME 
        Investment Partnerships Act.
            (2) Refinancing.--Refinancing the existing debt of 
        homeowners to convert existing ownership regimes into 
        mortgages.
            (3) New construction.--The construction of new housing, 
        including self-help, energy-efficient, and innovative housing 
        design initiatives.
            (4) Replatting and redevelopment.--The replatting and 
        redevelopment of existing subdivisions.
            (5) Infrastructure.--The planning for, and construction of, 
        infrastructure necessary for the development of housing, 
        economic development, and community facilities.
            (6) Other activities.--Such other activities as the 
        Secretary deems appropriate to further the purposes of this 
        section.
    (f) Records, Reports, and Audits.--
            (1) Keeping of records.--Each grantee under this section 
        shall keep such records as may be reasonably necessary to 
        disclose the amounts and the disposition of grant amounts 
        received under this section and to ensure compliance with the 
        requirements of this section.
            (2) Grantee reports.--Each grantee under this section shall 
        submit to the Secretary a report, or series of reports, in a 
        form and at a time specified by the Secretary. Each report 
        shall--
                    (A) describe the use of funds made available under 
                this section; and
                    (B) analyze the effect of assisted activities in 
                addressing the community development and housing needs 
                of the residents of colonias.
            (3) Access to documents by the secretary.--For the purpose 
        of audit and examination, the Secretary shall have access to 
        any books, documents, papers, and records of each grantee under 
        this section that are pertinent to assistance received under 
        this section.
            (4) Access to documents by the comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access to the purpose of audit and examination to any 
        books, documents, papers, and records of each grantee under 
        this section that are pertinent to assistance received under, 
        and the requirements of, this section.
    (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Colonia.--The term ``colonia'' has the same meaning as 
        in section 916(e) of the Cranston-Gonzalez National Affordable 
        Housing Act.
            (2) Metropolitan area.--The term ``metropolitan area'' has 
        the same meaning as in section 102(a)(3) of the Housing and 
        Community Development Act of 1974.
            (3) Nonprofit organization.--The term ``nonprofit 
        organization'' means--
                    (A) an organization--
                            (i) that is described in section 501(c) of 
                        the Internal Revenue Code of 1986; and
                            (ii) that is exempt from taxation under 
                        section 501(a) of such Code; or
                    (B) an organization--
                            (i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            (ii) that, in the case of a private 
                        nonprofit organization, has a voluntary board;
                            (iii) that has an accounting system, or has 
                        designated a fiscal agent in accordance with 
                        requirements established by the Secretary; and
                            (iv) that practices nondiscrimination in 
                        the provision of assistance.
            (4) State.--The term ``State''' means the States of 
        California, Arizona, New Mexico, and Texas.
            (5) Unit of general local government.--
                    (A) In general.--The term ``unit of general local 
                government'' means--
                            (i) a city, town, township, county, parish, 
                        village, or other general purpose political 
                        subdivision of a State; and
                            (ii) any agency or instrumentality thereof 
                        that is established pursuant to legislation and 
                        designated by the chief executive to act on 
                        behalf of the jurisdiction with regard to 
                        provisions of this section.
                    (B) Consortia included.--The term includes a 
                consortium of geographically contiguous units of 
                general local government, if the Secretary determines 
                that the consortium--
                            (i) has sufficient authority and 
                        administrative capability to carry out the 
                        purposes of this section on behalf of its 
                        member jurisdictions; and
                            (ii) meets such other requirements as the 
                        Secretary may prescribe.
            (6) United states-mexico border region.--The term ``United 
        States-Mexico Border Region'' has the same meaning as in 
        section 916(e)(4) of the Cranston-Gonzalez National Affordable 
        Housing Act.
    (h) Funding Authorization.--There are authorized to be appropriated 
to carry out this section $50,000,000 for each of fiscal years 1995 and 
1996. Amounts appropriated shall remain available until expended.

SEC. 703. EXTENSION OF COLONIA PROGRAM UNDER SECTION 916 OF THE 
              CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT.

    Section 916(f) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 5306 note) is amended by striking ``1991'' and all that 
follows before the period and inserting ``1995 and 1996''.

SEC. 704. COMMUNITY DEVELOPMENT BLOCK GRANTS.

    (a) Community Development Block Grants.--Section 103 of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5303) is amended by 
striking the second sentence and inserting the following: ``For 
purposes of assistance under section 106, there are authorized to be 
appropriated $4,400,000,000 for fiscal year 1995 and $4,532,000,000 for 
fiscal year 1996.''.
    (b) Limitation on Loan Guarantees.--Section 108(a) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5308(a)) is amended by 
striking the fifth sentence and inserting the following: 
``Notwithstanding any other provision of law and subject only to the 
absence of qualified applicants or proposed activities and to the 
authority provided in this section, to the extent approved in 
appropriation Acts, the Secretary shall enter into commitments to 
guarantee notes and obligations under this section with an aggregate 
principal amount of $2,054,000,000 for fiscal year 1995 and 
$2,054,000,000 for fiscal year 1996.''.
    (c) Special Purpose Grants.--Section 107(a) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5307(a)) is amended by 
striking ``$60,000,000'' and all that follows through the period at the 
end and inserting the following: ``$50,000,000 shall be set aside each 
year for the following purposes:
                    ``(A) $7,000,000 shall be available in each such 
                year for grants under subsection (b)(1);
                    ``(B) $6,500,000 shall be available in each such 
                year for grants under subsection (b)(3);
                    ``(C) $15,000,000 shall be available in each such 
                year for activities under subsection (b)(4);
                    ``(D) $5,000,000 shall be available in each such 
                year under subsection (b)(5);
                    ``(E) $7,500,000 shall be available in each such 
                year to carry out the Community Outreach Partnership 
                Act of 1992 as authorized pursuant to section 851 of 
                the Housing and Community Development Act of 1992;
                    ``(F) $3,000,000 shall be available in each such 
                year for grants under subsection (c);
                    ``(G) such sums as may be necessary shall be 
                available in each such year for grants under subsection 
                (b)(2); and
                    ``(H) $5,000,000 shall be made available in each 
                such year for grants under the John Heinz Neighborhood 
                Development Program under section 123 of the Housing 
                and Urban Rural Recovery Act of 1983.''.

SEC. 705. ECONOMIC DEVELOPMENT INITIATIVE.

    Section 108(q)(1) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5308(q)(1)) is amended by adding at the end the 
following new sentence: ``Of the amounts appropriated under section 
123(n) not more than 10 percent shall be used to carry out this 
subsection.''.

SEC. 706. CDBG REALLOCATIONS.

    Section 106(c) of the Housing and Community Development Act of 1974 
(42 U.S.C. 5306(c)) is amended by striking paragraph (4).

SEC. 707. COMMUNITY VIABILITY FUND.

    Section 4 of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended--
            (1) in subsection (a), by striking all after ``Initiative'' 
        and inserting the following: ``and through intermediary 
        training centers and community and economic development 
        organizing networks to--
            ``(1) develop the organizational capacity and the ability 
        of urban and rural community development corporations, 
        community-based organizations, and community housing 
        development organizations to undertake community development, 
        economic development, and affordable housing projects and 
        programs; and
            ``(2) develop the organizational capacity and technical 
        ability of urban and rural community development corporations, 
        community-based organizations, and community housing 
        development organizations to establish sustainable and 
        indigenous community and economic development organizations for 
        the benefit of low-income individuals.'';
            (2) by striking subsection (b) and inserting the following:
    ``(b) Form of Assistance.--Assistance under this subsection may be 
used for--
            ``(1) training, technical assistance, capacity building, 
        and support for existing and new community development 
        corporations, community-based organizations, and community 
        housing development organizations;
            ``(2) loans, grants, operating assistance, and 
        predevelopment assistance to community development 
        corporations, community-based organizations, and community 
        housing development organizations to develop or improve the 
        organizational capacity and technical ability of such 
        organizations to undertake sustainable community-based 
        development for the benefit of low-income people; and
            ``(3) such other activities as may be determined by the 
        Secretary in consultation with recipients of assistance under 
        this section.'';
            (3) by striking subsection (c) and inserting the following:
    ``(c) Matching Requirement.--Assistance provided under this section 
shall be matched with funding from private sources--
            ``(1) by intermediary training centers and community and 
        economic development organizing networks, in an amount that is 
        not less than the amount of assistance provided under this 
        section; and
            ``(2) by the National Community Development Initiative, in 
        an amount that is not less than 3 times the amount of 
        assistance provided under this section.''; and
            (4) by striking subsection (e) and inserting the following:
    ``(e) Dissemination of Information.--The Secretary shall require 
recipients of assistance under this section to share information 
gathered in administering such assistance with other grantees and 
subgrantees under this section.
    ``(f) Authorization.--There are authorized to be appropriated 
$40,000,000 for fiscal year 1995, and $40,000,000 for fiscal year 1996 
to carry out this section.''.

SEC. 708. COMMUNITY INVESTMENT CORPORATION DEMONSTRATION 
              REAUTHORIZATION.

    Section 853(b) of the Housing and Community Development Act of 1992 
(42 U.S.C. 5305 note) is amended--
            (1) by striking paragraphs (8)(B) and (9)(B); and
            (2) by striking paragraph (7)(D) and inserting the 
        following:
                    ``(D) Authorization.--There are authorized to be 
                appropriated to carry out this paragraph $42,000,000 
                for fiscal year 1995 and $43,260,000 for fiscal year 
                1996 to provide capital assistance to eligible 
                organizations. Amounts so appropriated shall remain 
                available until expended.''.

SEC. 709. NATIONAL CITIES IN SCHOOLS PROGRAM.

    Section 930(c) of the Housing and Community Development Act of 1992 
(106 Stat. 3887) is amended to read as follows:
    ``(c) Authorization.--There are authorized to be appropriated to 
carry out this section $10,000,000 for fiscal year 1995 and $10,000,000 
for fiscal year 1996.''.

SEC. 710. COMMUNITY DEVELOPMENT GRANTS FOR MINORITY COMMUNITIES WITH 
              SPECIAL NEEDS DEMONSTRATION.

    (a) Authorization.--There are hereby authorized for water 
infrastructure financing and other wastewater activities for cities 
with special needs, not more than $25,000,000 for wastewater treatment 
projects, including the construction of facilities and related expenses 
in minority communities with special needs to--
            (1) improve the housing stock infrastructure in the special 
        needs communities; and
            (2) abate health hazards caused by ground water 
        contamination for septage in arid areas with high ground water 
        levels.
    (b) Treatment Projects.--The wastewater treatment projects 
authorized under this section shall include innovative technologies 
such as vacuum systems and constructed wetlands.
    (c) Definitions.--For purposes of this section--
            (1) the term ``cities with special needs'' includes 
        minority communities with special needs;
            (2) the term ``minority'' means an African-American, a 
        Hispanic-American, an Asian-American, or a Native American; and
            (3) the term ``minority community with special needs'' 
        means an unincorporated community--
                    (A) that, based on the latest census data, has a 
                minority population in excess of 50 percent;
                    (B) that has been unable to issue bonds or 
                otherwise finance a wastewater treatment system itself, 
                because its attempt to change its political subdivision 
                has been rejected by the State legislature; and
                    (C) for which the State legislature has 
                appropriated funds to help pay for the project.
    (d) Report.--Any community receiving a grant under this subsection 
shall report to the Secretary not later than 1 year after the 
completion of a wastewater treatment project on the value of the 
project or the quality of the housing stock and the health of the 
residents of the community occurring as a result of the project. The 
Secretary shall make such recommendations to Congress as appropriate 
with regard to the value of wastewater treatment projects as a 
component of programs administered by the Secretary.

SEC. 711. UDAG RECAPTURES.

    (a) In General.--Section 119(g) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5318(g)) is amended by striking the 
second sentence and inserting the following: ``Except as provided in 
section 232(c) of the Multifamily Housing Property Disposition Reform 
Act of 1994, during the 18-month period beginning on the date on which 
the UDAG Retention Program authorized by such section expires, the 
Secretary shall be prohibited from recapturing, adjusting, withdrawing, 
or reducing any UDAG funds from recipients of UDAG grants. For the 
duration of the UDAG Retention Program, the Secretary shall provide 
technical assistance to grant recipients to adjust, rework, relocate, 
refine, redefine, or otherwise revise the original UDAG project 
description to produce a viable UDAG project in accordance with the 
requirements of this section. The Secretary shall not impose regulatory 
requirements that are not statutorily based, that restrict revision or 
use of UDAG funding.''.
    (b) Extension of Time Period.--Section 119(t) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5318(t)) is amended by 
striking ``90 days'' each place it appears and inserting ``21 months''.
    (c) Waiver of Integral Relation Requirement.--Notwithstanding any 
other provision of law, the requirement that an amendment to an urban 
development action grant agreement must be integrally related to the 
approved project is hereby waived for project numbers B87AA360540 and 
B87AA360521.

SEC. 712. STATE AGENCIES AS SURETIES.

    Section 9304 of title 31, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) State Agencies.--A State agency, including any financing 
authority established by any State, which meets the requirements of 
paragraphs (2) and (3) of subsection (a) may be treated as a surety 
corporation for purposes of this chapter.''.

SEC. 713. CONFORMING AMENDMENTS RELATED TO EMPOWERMENT ZONES AND 
              ENTERPRISE COMMUNITIES.

    (a) CDBG Eligible Activities.--Section 105(a)(13) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5305(a)(13)) is 
amended by striking ``federally approved enterprise zones'' and 
inserting ``empowerment zones and enterprise communities designated 
pursuant to section 1391 of the Internal Revenue Code of 1986''.
    (b) CDBG Employment Presumption.--Section 105(c)(4)(A) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5305(c)(4)(A)) 
is amended--
            (1) by striking ``Federal enterprise zone''; and
            (2) by inserting ``for empowerment zones and enterprise 
        communities designated pursuant to section 1391 of the Internal 
        Revenue Code of 1986'' after ``criteria''.

SEC. 714. STUDY OF USE OF CDBG AS A MATCH FOR OTHER FEDERAL PROGRAMS.

    Not later than January 31, 1995, the Secretary shall submit a 
report to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives describing the use of community development 
block grant funds, provided pursuant to title I of the Housing and 
Community Development Act of 1974, to meet the matching requirements in 
other Federal programs. The report shall identify those Federal 
programs for which community development block grant funds qualify as a 
match and provide an analysis of the extent to which such funds are 
used as a match.

    TITLE VIII--NONJUDICIAL FORECLOSURE OF DEFAULTED SINGLE FAMILY 
                               MORTGAGES

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Single Family Mortgage Foreclosure 
Act of 1994''.

SEC. 802. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the disparate State laws under which mortgages are 
        foreclosed on behalf of the Secretary covering 1- to 4-family 
        residential properties--
                    (A) burden certain programs administered by the 
                Secretary;
                    (B) increase the costs of collecting obligations; 
                and
                    (C) generally are a detriment to the community in 
                which the properties are located;
            (2) the long periods required to complete the foreclosure 
        of such mortgages under certain State laws--
                    (A) lead to deterioration in the condition of the 
                properties involved;
                    (B) necessitate substantial Federal holding 
                expenditures;
                    (C) increase the risk of vandalism, fire loss, 
                depreciation, damage, and waste with respect to the 
                properties; and
                    (D) adversely affect the neighborhoods in which the 
                properties are located;
            (3) these conditions seriously impair the ability of the 
        Secretary to protect the Federal financial interest in the 
        affected properties and frustrate attainment of the objectives 
        of the underlying Federal program authority;
            (4) the availability of uniform and more expeditious 
        procedures, with no right of redemption in the mortgagor or 
        others, for the foreclosure of these mortgages by the Secretary 
        will tend to ameliorate these conditions; and
            (5) providing the Secretary with a nonjudicial foreclosure 
        procedure will reduce unnecessary litigation by removing many 
        foreclosures from the courts if they contribute to overcrowded 
        calendars.
    (b) Purpose.--The purpose of this title is to create a uniform 
Federal foreclosure remedy for single family mortgages that--
            (1) are held by the Secretary pursuant to title I or title 
        II of the National Housing Act; or
            (2) secure loans obligated by the Secretary under section 
        312 of the Housing Act of 1964.

SEC. 803. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Bona fide purchaser.--The term ``bona fide purchaser'' 
        means a purchaser for value in good faith and without notice of 
        any adverse claim, and who acquires the security property free 
        of any adverse claim.
            (2) County.--The term ``county'' has the same meaning as in 
        section 2 of title 1, United States Code.
            (3) Mortgage.--The term ``mortgage'' means a deed of trust, 
        mortgage, deed to secure debt, security agreement, or any other 
        form of instrument under which any property (real, personal or 
        mixed), or any interest in property (including leaseholds, life 
        estates, reversionary interests, and any other estates under 
        applicable State law), is conveyed in trust, mortgaged, 
        encumbered, pledged, or otherwise rendered subject to a lien 
        for the purpose of securing the payment of money or the 
        performance of an obligation.
            (4) Mortgage agreement.--The term ``mortgage agreement'' 
        means the note or debt instrument and the mortgage instrument, 
        deed of trust instrument, trust deed, or instrument or 
        instruments creating the mortgage, including any instrument 
        incorporated by reference therein and any instrument or 
        agreement amending or modifying any of the foregoing.
            (5) Mortgagor.--The term ``mortgagor'' means the obligor, 
        grantor, or trustee named in the mortgage agreement and, unless 
        the context otherwise indicates, includes the current owner of 
        record of the security property whether or not such owner is 
        personally liable on the mortgage debt.
            (6) Owner.--The term ``owner'' means any person who has an 
        ownership interest in property and includes heirs, devises, 
        executors, administrators, and other personal representatives, 
        and trustees of testamentary trusts if the owner of record is 
        deceased.
            (7) Person.--The term ``person'' includes any individual, 
        group of individuals, association, partnership, corporation, or 
        organization.
            (8) Record; recorded.--The terms ``record'' and 
        ``recorded'' include ``register'' and ``registered'' in the 
        instance of registered land.
            (9) Security property.--The term ``security property'' 
        means the property (real, personal or mixed) or an interest in 
        property (including leaseholds, life estates, reversionary 
        interests, and any other estates under applicable State law), 
        together with fixtures and other interests subject to the lien 
        of the mortgage under applicable State law.
            (10) Single family mortgage.--The term ``single family 
        mortgage'' means a mortgage that covers property on which there 
        is located a 1- to 4-family residence, and that--
                    (A) is held by the Secretary pursuant to title I or 
                title II of the National Housing Act; or
                    (B) secures a loan obligated by the Secretary under 
                section 312 of the Housing Act of 1964, as it existed 
                before the repeal of that section by section 289 of the 
                Cranston-Gonzalez National Affordable Housing Act 
                (except that a mortgage securing such a loan that 
                covers property containing nonresidential space and a 
                1- to 4-family dwelling shall not be subject to this 
                title).
            (11) State.--The term ``State'' means--
                    (A) the several States;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico;
                    (D) the United States Virgin Islands;
                    (E) Guam;
                    (F) American Samoa;
                    (G) the Northern Mariana Islands;
                    (H) the Trust Territory of the Pacific Islands; and
                    (I) Indian tribes, as defined by the Secretary.

SEC. 804. APPLICABILITY.

    Single family mortgages encumbering real estate located in any 
State may be foreclosed by the Secretary in accordance with this title, 
or pursuant to other foreclosure procedures available, at the option of 
the Secretary.

SEC. 805. DESIGNATION OF FORECLOSURE COMMISSIONER.

    (a) In General.--The Secretary may designate a person or persons to 
serve as a foreclosure commissioner or commissioners for the purpose of 
foreclosing upon a single family mortgage.
    (b) Power of Sale.--A foreclosure commissioner designated under 
this section shall have a nonjudicial power of sale.
    (c) Qualifications.--The foreclosure commissioner, if a natural 
person, shall be a resident of the State in which the security property 
is located and, if not a natural person, the foreclosure commissioner 
must be duly authorized to transact business under laws of the State in 
which the security property is located. No person shall be designated 
as a foreclosure commissioner unless that person is responsible, 
financially sound, and competent to conduct a foreclosure.
    (d) Designation Procedure.--
            (1) Written designation.--The Secretary may designate a 
        foreclosure commissioner by executing a written designation 
        stating the name and business or residential address of the 
        commissioner, except that if a person is designated in his or 
        her capacity as an official or employee of a government or 
        corporate entity, such person may be designated by his or her 
        unique title or position instead of by name.
            (2) Substitute commissioners.--The Secretary may, with or 
        without cause, designate a substitute foreclosure commissioner 
        to replace a previously designated foreclosure commissioner.
            (3) Number.--More than 1 foreclosure commissioner may be 
        designated at any time.

SEC. 806. PREREQUISITES TO FORECLOSURE.

    (a) In General.--
            (1) Upon breach of covenant or condition.--The Secretary is 
        authorized to foreclose a mortgage under this title upon the 
        breach of a covenant or condition in the mortgage agreement.
            (2) No other pending proceedings.--
                    (A) Prior to commencement.--No foreclosure may be 
                commenced under this title unless any previously 
                pending judicial or nonjudicial proceeding that has 
                been separately instituted by the Secretary to 
                foreclose the mortgage (other than under this title), 
                has been withdrawn, dismissed, or otherwise terminated.
                    (B) After commencement.--No separately instituted 
                foreclosure proceeding on a mortgage which is the 
                subject of a foreclosure proceeding under this title 
                shall be instituted by the Secretary during the 
                pendency of foreclosure pursuant to this title.
    (b) Other Rights Unaffected.--Nothing in this title shall preclude 
the Secretary from--
            (1) enforcing any right, other than foreclosure, under 
        applicable Federal or State law, including any right to obtain 
        a monetary judgment; or
            (2) foreclosing under this title if the Secretary has 
        obtained or is seeking any other remedy available pursuant to 
        Federal or State law, or under the mortgage agreement, 
        including the appointment of a receiver, mortgagee-in-
        possession status, or relief under an assignment of rents.

SEC. 807. COMMENCEMENT OF FORECLOSURE.

    (a) Request to Foreclosure Commissioner.--If the Secretary, as 
holder of a single family mortgage, determines that the prerequisites 
to foreclosure set forth in section 806 are satisfied, the Secretary 
may request the foreclosure commissioner to commence foreclosure of a 
single family mortgage. Upon such request, the foreclosure commissioner 
shall commence foreclosure of the mortgage, by commencing service of a 
notice of default and foreclosure sale in accordance with sections 808 
and 809.
    (b) Designation of Substitute Foreclosure Commissioner.--After 
commencement of a foreclosure under this title, the Secretary may 
designate a substitute foreclosure commissioner at any time before the 
time of the foreclosure sale, and the foreclosure shall continue 
without prejudice, unless the substitute commissioner, in that 
commissioner's sole discretion, finds that continuation of the 
foreclosure sale will unfairly affect the interests of the mortgagor. 
If the substitute commissioner makes such a finding, the substitute 
commissioner shall cancel the foreclosure sale, or adjourn such sale in 
accordance with section 811(c).
    (c) Written Notice.--Upon designation of a substitute foreclosure 
commissioner, a copy of the written notice of such designation 
described in section 805 shall be served--
            (1) by mail, as provided in section 809 (except that the 
        minimum time periods between mailing and the date of 
        foreclosure sale prescribed in such section shall not apply); 
        or
            (2) in any other manner which, in the substitute 
        commissioner's sole discretion, is conducive to achieving 
        timely notice of such substitution.

SEC. 808. NOTICE OF DEFAULT AND FORECLOSURE SALE.

    The notice of default and foreclosure sale to be served in 
accordance with this title shall set forth--
            (1) the name and address of the foreclosure commissioner;
            (2) the date on which the notice is issued;
            (3) the names of--
                    (A) the Secretary;
                    (B) the original mortgagee (if other than the 
                Secretary); and
                    (C) the original mortgagor;
            (4) the street address or a description of the location of 
        the security property, and a description of the security 
        property, sufficient to identify the property to be sold;
            (5) the date of the mortgage, the office in which the 
        mortgage is recorded, and the liber number and folio or other 
        appropriate description of the location of recordation of the 
        mortgage;
            (6) identification of the failure to make payment, 
        including the due date of the earliest installment payment 
        remaining wholly unpaid as of the date on which the notice is 
        issued upon which the foreclosure is based, or a description of 
        any other default or defaults upon which foreclosure is based, 
        and the acceleration of the secured indebtedness;
            (7) the date, time, and location of the foreclosure sale;
            (8) a statement that the foreclosure is being conducted 
        pursuant to this title;
            (9) a description of the types of costs, if any, to be paid 
        by the purchaser upon transfer of title;
            (10) the amount and method of deposit to be required at the 
        foreclosure sale (except that no deposit shall be required of 
        the Secretary) and the time and method of payment of the 
        balance of the foreclosure purchase price; and
            (11) any other appropriate terms of sale or information, as 
        the Secretary may determine.

SEC. 809. SERVICE OF NOTICE OF FORECLOSURE SALE.

    The foreclosure commissioner shall serve the notice of default and 
foreclosure sale described in section 808 upon the following persons 
and in the following manner, and no additional notice shall be required 
to be served, notwithstanding any notice requirements of any State or 
local law:
            (1) Timing.--Not less than 21 days before the date of the 
        foreclosure sale, the notice of default and foreclosure sale 
        shall be filed in the manner authorized for filing a notice of 
        an action concerning real property according to the law of the 
        State in which the security property is located or, if none, in 
        the manner authorized by section 3201 of title 28, United 
        States Code.
            (2) Notice by mail.--
                    (A) In general.--The notice of foreclosure sale 
                shall be sent by certified or registered mail, postage 
                prepaid and return receipt requested, to the following:
                            (i) Current owner.--The current security 
                        property owner of record, as the record existed 
                        45 days before the date originally set for the 
                        foreclosure sale (whether or not the notice 
                        describes a sale adjourned).
                            (ii) Mortgagors.--All mortgagors of record 
                        or other persons who appear on the basis of the 
                        record to be liable for part or all of the 
                        mortgage debt, as the record existed 45 days 
                        before the date originally set for the 
                        foreclosure sale (whether or not the notice 
                        describes a sale adjourned).
                            (iii) Dwelling units.--All dwelling units 
                        in the security property (whether or not the 
                        notice describes a sale adjourned).
                            (iv) Other lienholders.--All persons 
                        holding liens of record upon the security 
                        property, as the record existed 45 days before 
                        the date originally set for the foreclosure 
                        sale (whether or not the notice describes a 
                        sale adjourned).
                    (B) Timing.--
                            (i) Notice under clauses (i) and (ii).--
                        Notice under clauses (i) and (ii) of 
                        subparagraph (A) shall be mailed not less than 
                        21 days before the date of the foreclosure 
                        sale, and shall be mailed to the current owner 
                        and mortgagor at the last known address of the 
                        current owner and mortgagor, or, if none, to 
                        the address of the security property, or, at 
                        the discretion of the foreclosure commissioner, 
                        to any other address believed to be that of 
                        such current owner and mortgagor.
                            (ii) Notice under clause (iii).--Notice 
                        under clause (iii) of subparagraph (A) shall be 
                        mailed not less than 21 days before the date of 
                        the foreclosure sale. If the names of the 
                        occupants of the security property are not 
                        known to the Secretary, or the security 
                        property has more than 1 dwelling, the notice 
                        shall be posted at the security property not 
                        less than 21 days before the foreclosure sale.
                            (iii) Notice under clause (iv).--Notice 
                        under clause (iv) of subparagraph (A) shall be 
                        mailed not less than 21 days before the date of 
                        the foreclosure sale, and shall be mailed to 
                        each such lienholder's address of record or, at 
                        the discretion of the foreclosure commissioner, 
                        to any other address believed to be that of 
                        such lienholder.
                    (C) Effectiveness of notice.--Notice by mail 
                pursuant to this section or section 807(c) shall be 
                deemed duly given upon mailing, whether or not received 
                by the addressee and whether or not a return receipt is 
                received or the notice is returned.
            (3) Publication.--
                    (A) In general.--A copy of the notice of default 
                and foreclosure sale shall be published once a week 
                during 3 successive calendar weeks before the date of 
                the foreclosure sale. Such publication shall be in a 
                newspaper or newspapers having general circulation in 
                the county or counties in which the security property 
                being sold is located. To the extent practicable, the 
                newspaper or newspapers chosen shall be a newspaper or 
                newspapers having circulation conducive to achieving 
                notice of foreclosure by publication. A legal newspaper 
                that is accepted as a newspaper of legal record in the 
                county or counties in which the security property being 
                sold is located shall be considered a newspaper having 
                general circulation for the purposes of this paragraph.
                    (B) Exception.--If there is no newspaper published 
                at least weekly which has a general circulation in one 
                of the counties in which the security property being 
                sold is located, copies of the notice of default and 
                foreclosure sale shall be posted not less than 21 days 
                before the date of the foreclosure sale--
                            (i) at the courthouse of any county or 
                        counties in which the security property is 
                        located; and
                            (ii) at the place where the sale is to be 
                        held.

SEC. 810. PRESALE REINSTATEMENT.

    (a) Withdrawal and Cancellation.--
            (1) In general.--Except as provided in sections 807(b) and 
        811(c), the foreclosure commissioner shall withdraw the 
        security property from foreclosure and cancel the foreclosure 
        sale only if--
                    (A) the Secretary directs the foreclosure 
                commissioner to do so before or at the time of the 
                sale;
                    (B) the foreclosure commissioner finds, upon 
                application of the mortgagor not less than 3 days 
                before the date of the sale, that the default or 
                defaults upon which the foreclosure is based did not 
                exist at the time of service of the notice of default 
                and foreclosure sale; or
                    (C)(i) in the case of a foreclosure involving a 
                monetary default, there is tendered to the foreclosure 
                commissioner before public auction is completed the 
                entire amount of principal and interest which would be 
                due if payments under the mortgage had not been 
                accelerated;
                    (ii) in the case of a foreclosure involving a 
                nonmonetary default, the foreclosure commissioner, upon 
                application of the mortgagor before the date of 
                foreclosure sale, finds that such default is cured; and
                    (iii) there is tendered to the foreclosure 
                commissioner before public auction is completed--
                            (I) all amounts due under the mortgage 
                        agreement (excluding additional amounts which 
                        would have been due if mortgage payments had 
                        been accelerated);
                            (II) all amounts of expenditures secured by 
                        the mortgage; and
                            (III) all costs of foreclosure incurred for 
                        which payment from the proceeds of foreclosure 
                        is provided in section 812.
            (2) Discretionary noncancellation.--The Secretary may 
        refuse to cancel a foreclosure sale pursuant to paragraph 
        (1)(C) if the current mortgagor or owner of record has, on one 
        or more previous occasions, caused a foreclosure of the 
        mortgage, commenced pursuant to this title or otherwise, to be 
        canceled by curing a default.
    (b) Opportunity of Secretary To Dispute Withdrawal.--Before 
withdrawing the security property from foreclosure under subparagraph 
(B) or (C) of subsection (a)(1), the foreclosure commissioner shall 
afford the Secretary a reasonable opportunity to demonstrate why the 
security property should not be so withdrawn.
    (c) Effect of Cancellation.--
            (1) Mortgage unaffected.--In any case in which a 
        foreclosure commenced under this title is canceled, the 
        mortgage shall continue in effect as though acceleration had 
        not occurred.
            (2) Commencement of new foreclosure sale.--Cancellation of 
        a foreclosure sale under this title shall have no effect on the 
        commencement of a subsequent foreclosure proceeding under this 
        title.
    (d) Notice of Cancellation.--The foreclosure commissioner shall 
file a notice of cancellation in the same place and manner provided for 
filing the notice of default and foreclosure sale in section 809.

SEC. 811. CONDUCT OF SALE; ADJOURNMENT.

    (a) In General.--
            (1) Manner and time.--A foreclosure sale pursuant to this 
        title shall be held at public auction and shall be scheduled to 
        begin between the hours of 9 o'clock ante meridian and 4 
        o'clock post meridian local time.
            (2) Location.--The foreclosure sale shall be held at a 
        location specified in the notice of default and foreclosure 
        sale and such location shall be at a place where foreclosure 
        real estate auctions are customarily held in the county or 
        counties in which the property to be sold is located, or at a 
        courthouse therein, or at or on the property to be sold. Sale 
        of security property situated in two or more counties may be 
        held in any 1 of the counties in which any part of the security 
        property is situated.
            (3) Sale of multiple properties.--The foreclosure 
        commissioner may designate the order in which multiple security 
        properties are sold.
    (b) Duties of Foreclosure Commissioner.--
            (1) Conduct of sale.--
                    (A) In general.--The foreclosure commissioner shall 
                conduct the foreclosure sale in accordance with the 
                provisions of this title and in a manner fair to both 
                the mortgagor and the Secretary.
                    (B) Written bids.--Written one-price sealed bids 
                shall be accepted by the foreclosure commissioner from 
                the Secretary and other persons for entry by 
                announcement by the foreclosure commissioner at the 
                sale.
                    (C) Auctioneer.--The foreclosure commissioner may 
                serve as auctioneer, or, in accordance with regulations 
                of the Secretary, may employ an auctioneer to be paid 
                from the commission provided for in section 812(5).
            (2) Eligible participants.--
                    (A) In general.--The Secretary, and any other 
                person who has submitted a written one-price bid, may 
                bid at the foreclosure sale.
                    (B) Prohibited participants.--The foreclosure 
                commissioner or any relative, related business entity, 
                or employee of the foreclosure commissioner or a 
                related business entity shall not be permitted to bid 
                in any manner on the security property subject to 
                foreclosure sale, except that the foreclosure 
                commissioner or an auctioneer may be directed by the 
                Secretary to enter a bid on the Secretary's behalf.
    (c) Adjournment or Cancellation of Sale.--
            (1) General authority.--The foreclosure commissioner may, 
        before or at the time of the foreclosure sale, adjourn or 
        cancel the foreclosure sale if the commissioner determines, in 
        the commissioner's discretion, that--
                    (A) circumstances are not conducive to a sale which 
                is fair to the mortgagor and the Secretary; or
                    (B) additional time is necessary to determine 
                whether the security property should be withdrawn from 
                foreclosure, as provided in section 810.
            (2) Adjournment to same or later day.--The foreclosure 
        commissioner may adjourn a foreclosure sale to a later hour the 
        same day by announcing or posting the new time and place of the 
        foreclosure sale, or may adjourn the foreclosure sale for not 
        less than 9 and not more than 31 days, in which case the 
        commissioner shall serve a notice of default and foreclosure 
        sale revised to recite the fact that the foreclosure sale has 
        been adjourned to a specified date, as well as any other 
        information the foreclosure commissioner deems appropriate. 
        Such notice shall be served by publication and mailing in 
        accordance with section 809, except that publication may be 
        made on any of 3 separate days before the revised date of 
        foreclosure sale, and mailing may be made at any time not less 
        than 7 days before the date to which the foreclosure sale has 
        been adjourned.
    (d) Cash Deposits.--The foreclosure commissioner may require a 
bidder to make a cash deposit in an amount or percentage set by the 
foreclosure commissioner and stated in the notice of foreclosure sale 
before the bid is accepted. A successful bidder at the foreclosure sale 
who fails to comply with the terms of the sale may be required to 
forfeit the cash deposit or, at the election of the foreclosure 
commissioner after consultation with the Secretary, shall be liable to 
the Secretary for any costs incurred as a result of such failure.
    (e) Presumption of Validity of Sale.--Any foreclosure sale held in 
accordance with this title shall be conclusively presumed to have been 
conducted in a legal, fair, and reasonable manner. The sale price shall 
be conclusively presumed to be reasonable and equal to the fair market 
value of the property.

SEC. 812. FORECLOSURE COSTS.

    The following foreclosure costs shall be paid from the sale 
proceeds before satisfaction of any other claim to such sale proceeds:
            (1) Advertising and postage.--Necessary advertising costs 
        and postage incurred in giving notice pursuant to sections 809 
        and 811.
            (2) Mileage.--Mileage (determined by the most reasonable 
        road distance) for posting notices and for the foreclosure 
        commissioner's or auctioneer's attendance at the sale, as 
        provided in section 1821 of title 28, United States Code.
            (3) Title and lien search.--Reasonable and necessary costs 
        incurred in connection with any search of title and lien 
        records.
            (4) Recordation fees.--Costs incurred to record documents.
            (5) Commission.--A commission for the foreclosure 
        commissioner (if the foreclosure commissioner is not an 
        employee of the United States) for the conduct of the 
        foreclosure, to the extent such a commission is authorized by 
        the Secretary.

SEC. 813. DISPOSITION OF SALE PROCEEDS.

    (a) Priority Payments.--Money realized from a foreclosure sale 
shall be made available for obligation and expenditure in the following 
order:
            (1) Costs of foreclosure.--To cover the costs of the 
        foreclosure proceeding described in section 812.
            (2) Tax liens.--To pay valid tax liens or assessments if 
        required by the notice of default and foreclosure sale.
            (3) Prior liens.--To pay any liens recorded before the 
        recording of the mortgage which are required to be paid in 
        conformity with the terms of sale in the notice of default and 
        foreclosure sale.
            (4) Service charges and advances.--To pay service charges 
        and advances for taxes, assessments, and property insurance 
        premiums.
            (5) Interest.--To pay any outstanding interest.
            (6) Principal.--To pay the principal outstanding balance 
        secured by the mortgage (including expenditures for the 
        necessary protection, preservation, and repair of the security 
        property as authorized under the mortgage agreement and 
        interest thereon if provided for in the mortgage agreement).
            (7) Late charges or fees.--To pay any late charges or fees.
    (b) Other Payments.--
            (1) Other lienholders and the mortgagor.--Any surplus of 
        proceeds from a foreclosure sale, after payment of the items 
        described in subsection (a) shall be paid in the following 
        order:
                    (A) First, to holders of liens recorded after the 
                mortgage in the order of priority under Federal law or 
                the law of the State in which the security property is 
                located.
                    (B) Second, to the appropriate mortgagor.
            (2) Disputed claims.--If the person to whom such surplus is 
        to be paid cannot be located, or if the surplus available is 
        insufficient to pay all claimants and the claimants cannot 
        agree on the allocation of the surplus, or if any person 
        claiming an interest in the mortgage proceeds does not agree 
        that some or all of the sale proceeds should be paid to a 
        claimant as provided in this section, that part of the sale 
        proceeds in question may be deposited by the foreclosure 
        commissioner with an appropriate official or court authorized 
        under law to receive disputed funds in such circumstances. If a 
        procedure for the deposit of disputed funds is not available, 
        and the foreclosure commissioner files a bill of interpleader 
        or is sued as a stakeholder to determine entitlement to such 
        funds, the foreclosure commissioner's necessary costs incurred 
        in taking or defending such action shall be deductible from the 
        disputed funds.

SEC. 814. TRANSFER OF TITLE AND POSSESSION.

    (a) Delivery of Deeds.--The foreclosure commissioner shall, upon 
delivery of a deed or deeds to the purchaser or purchasers (which shall 
be without warranty or covenants to the purchaser or purchasers) obtain 
the balance of the purchase price in accordance with the terms of sale 
provided in the notice of default and foreclosure sale. Notwithstanding 
any State law to the contrary, delivery of a deed by the foreclosure 
commissioner shall be a conveyance of the property, and constitute 
passage of title to the mortgaged property, and no judicial proceedings 
shall be required ancillary or supplementary to the procedures provided 
in this title to assure the validity of the conveyance or confirmation 
of such conveyance.
    (b) Right of Possession.--A purchaser at a foreclosure sale held 
pursuant to this title shall be entitled to possession upon passage of 
title under subsection (a) to the mortgaged property, subject to any 
interest or interests not barred under section 816. Any person 
remaining in possession of the mortgaged property after the passage of 
title shall be deemed a tenant at sufferance subject to eviction under 
local law.
    (c) Death of Purchaser.--If a purchaser dies before execution and 
delivery of the deed conveying the property to the purchaser, the 
foreclosure commissioner shall execute and deliver the deed to a 
representative of the decedent purchaser's estate upon payment of the 
purchase price in accordance with the terms of sale. Such delivery to 
the representative of the purchaser's estate shall have the same effect 
as if accomplished during the lifetime of the purchaser.
    (d) Bona Fide Purchaser.--The purchaser of property under this 
title shall be presumed to be a bona fide purchaser.
    (e) No Right of Redemption.--
            (1) In general.--There shall be no right of redemption, or 
        right of possession based upon a right of redemption, in the 
        mortgagor or others subsequent to a foreclosure completed 
        pursuant to this title.
            (2) Certain provisions.--Section 204(l) of the National 
        Housing Act and section 701 of the Department of Housing and 
        Urban Development Reform Act of 1989 shall not apply to 
        mortgages foreclosed under this title.
    (f) Taxes.--When a mortgage foreclosed pursuant to this title is 
conveyed to the Secretary, no tax shall be imposed or collected with 
respect to the foreclosure commissioner's deed (including any tax 
customarily imposed upon the deed instrument or upon the conveyance or 
transfer of title to the property). Failure to collect or pay a tax of 
the type and under the circumstances stated in the preceding sentence 
shall not be grounds for refusing to record such a deed, for failing to 
recognize such recordation as imparting notice, or for denying the 
enforcement of such a deed and its provisions in any State or Federal 
court.

SEC. 815. RECORD OF FORECLOSURE AND SALE.

    (a) Statements Included.--To establish a sufficient record of 
foreclosure and sale, the foreclosure commissioner shall include in the 
recitals of the deed to the purchaser, or prepare as an affidavit or 
addendum to the deed, a statement setting forth--
            (1) the date, time, and place of the foreclosure sale;
            (2) that the mortgage was held by the Secretary, the date 
        of the mortgage, the office in which the mortgage was recorded, 
        and the liber number and folio or other appropriate description 
        of the recordation of the mortgage;
            (3) the particulars of the foreclosure commissioner's 
        service of the notice of default and foreclosure sale in 
        accordance with sections 809 and 811;
            (4) the date and place of filing the notice of default and 
        foreclosure sale;
            (5) that the foreclosure was conducted in accordance with 
        the provisions of this title and with the terms of the notice 
        of default and foreclosure sale; and
            (6) the sale amount.
    (b) Effect of Statements.--The items set forth in subsection (a) 
shall--
            (1) be prima facie evidence of the truth of such facts in 
        any Federal or State court; and
            (2) evidence a conclusive presumption in favor of bona fide 
        purchasers and encumbrancers for value without notice.
Encumbrancers for value include liens placed by lenders who provide the 
purchaser with purchase money in exchange for a security interest in 
the newly-conveyed property.
    (c) Recordation of Instruments.--The deed executed by the 
foreclosure commissioner, the foreclosure commissioner's affidavit (if 
prepared) and any other instruments submitted for recordation in 
relation to the foreclosure of the security property under this title 
shall be accepted for recordation by the registrar of deeds or other 
appropriate official of the county or counties in which the security 
property is located upon tendering of payment of the usual recording 
fees for such instruments, and without regard to the compliance of 
those instruments with any other local filing requirements.

SEC. 816. EFFECT OF SALE.

    A sale, made and conducted as prescribed in this title to a bona 
fide purchaser, shall bar all claims upon, or with respect to, the 
property sold, for each of the following persons:
            (1) Notice recipients.--Any person to whom the notice of 
        default and foreclosure sale was mailed as provided in this 
        title, and the heir, devisee, executor, administrator, 
        successor, or assignee claiming under any such person.
            (2) Subordinate claimants with knowledge.--Any person 
        claiming any interest in the property subordinate to that of 
        the mortgage, if such person had actual knowledge of the 
        foreclosure sale.
            (3) Nonrecorded claimants.--Any person claiming any 
        interest in the property, whose assignment, mortgage, or other 
        conveyance was not duly recorded or filed in the proper place 
        for recording or filing, or whose judgment or decree was not 
        duly docketed or filed in the proper place for docketing or 
        filing, before the date on which the notice of the foreclosure 
        sale was first served by publication, as required by section 
        809(3), and the executor, administrator, or assignee of such a 
        person.
            (4) Other persons.--Any person claiming an interest in the 
        property under a statutory lien or encumbrance created 
        subsequent to the recording or filing of the mortgage being 
        foreclosed, and attaching to the title or interest of any 
        person designated in any of the foregoing paragraphs.

SEC. 817. COMPUTATION OF TIME.

    Periods of time provided for in this title shall be calculated in 
consecutive calendar days, including the day or days on which the 
actions or events occur or are to occur for which the period of time is 
provided and including the day on which an event occurs or is to occur 
from which the period is to be calculated.

SEC. 818. SEVERABILITY.

    If any part of this title shall, for any reason, be adjudged by a 
court of competent jurisdiction to be invalid, or invalid as applied to 
a class of cases, such judgment shall not affect, impair, or invalidate 
the remainder thereof, and shall be confined in its operation to the 
part thereof directly involved in the controversy in which such 
judgment shall have been rendered.

SEC. 819. DEFICIENCY JUDGMENT.

    (a) In General.--
            (1) Referral to attorney general.--If after deducting the 
        payments provided for in section 813 of this title, the price 
        at which the security property is sold at a foreclosure sale is 
        less than the unpaid balance of the debt secured by the 
        security property, resulting in a deficiency, the Secretary may 
        refer the matter to the Attorney General who may commence an 
        action or actions against any or all debtors to recover the 
        deficiency, unless such an action is specifically prohibited by 
        the mortgage.
            (2) Other recoveries.--In any action instituted pursuant to 
        this section the United States may recover--
                    (A) any amount authorized by section 3011 of title 
                28, United States Code; and
                    (B) the costs of the action.
    (b) Limitation.--Any action commenced to recover a deficiency under 
this section must be brought not later than 6 years after the date of 
the last sale of the security property.

                        TITLE IX--RURAL HOUSING

SEC. 901. PROGRAM AUTHORIZATIONS.

    (a) Insurance and Guarantee Authority.--Section 513(a) of the 
Housing Act of 1949 (42 U.S.C. 1483(a)) is amended to read as follows:
    ``(a) Insurance and Guarantee Authority.--
            ``(1) In general.--The Secretary may, to the extent 
        approved in appropriation Acts, insure and guarantee loans 
        under this title during fiscal years 1995 and 1996, in 
        aggregate amounts not to exceed $3,231,103,950 and 
        $3,360,037,069, respectively, as follows:
                    ``(A) For insured or guaranteed loans under section 
                502 on behalf of low-income borrowers receiving 
                assistance under section 521(a)(1), $1,802,500,000 for 
                fiscal year 1995 and $1,856,575,000 for fiscal year 
                1996.
                    ``(B) For guaranteed loans under section 502(h) on 
                behalf of low- and moderate-income borrowers, 
                $772,500,000 for fiscal year 1995 and $795,675,000 for 
                fiscal year 1996.
                    ``(C) For loans under section 504, $36,050,000 for 
                fiscal year 1995 and $37,131,500 for fiscal year 1996.
                    ``(D) For insured loans under section 514, 
                $18,053,950 for fiscal year 1995 and $18,595,569 for 
                fiscal year 1996.
                    ``(E) For insured loans under section 515, 
                $600,000,000 for fiscal year 1995 and $650,000,000 for 
                fiscal year 1996.
                    ``(F) For loans under section 523(b)(1)(B), 
                $1,000,000 for fiscal year 1995 and $1,030,000 for 
                fiscal year 1996.
                    ``(G) For site loans under section 524, $1,000,000 
                for fiscal year 1995 and $1,030,000 for fiscal year 
                1996.
            ``(2) Limitation on use.--Notwithstanding any other 
        provision of law, insured or guaranteed loan authority in this 
        title for any fiscal year shall not be transferred or used for 
        any purpose not specified in this title.''.
    (b) Authorization of Appropriations.--Section 513(b) of the Housing 
Act of 1949 (42 U.S.C. 1483(b)) is amended to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal years 1995 and 1996, and to remain available 
until expended, the following amounts:
            ``(1) For grants under section 502(c)(5)(C)(i), $10,000,000 
        for fiscal year 1995, and $10,000,000 for fiscal year 1996.
            ``(2) For grants under section 504, $31,000,000 for fiscal 
        year 1995 and $31,930,000 for fiscal year 1996.
            ``(3) For purposes of section 509(c), $1,000,000 for fiscal 
        year 1995 and $1,030,000 for fiscal year 1996.
            ``(4) For project preparation grants under section 
        509(f)(6), $5,688,278 for fiscal year 1995 and $5,858,926 for 
        fiscal year 1996.
            ``(5) In fiscal years 1995 and 1996, such sums as may be 
        necessary to meet payments on notes or other obligations issued 
        by the Secretary under section 511 equal to--
                    ``(A) the aggregate of the contributions made by 
                the Secretary in the form of credits on principal due 
                on loans made pursuant to section 503; and
                    ``(B) the interest due on a similar sum represented 
                by notes or other obligations issued by the Secretary.
            ``(6) For grants for service coordinators under section 
        515(y), $1,073,260 for fiscal year 1995 and $1,105,458 for 
        fiscal year 1996.
            ``(7) For financial assistance under section 516--
                    ``(A) for low-rent housing and related facilities 
                for domestic farm labor under subsections (a) through 
                (j) of such section, $15,000,000 for fiscal year 1995 
                and $18,000,000 for fiscal year 1996; and
                    ``(B) for housing for rural homeless and migrant 
                farmworkers under subsection (k) of such section, 
                $10,269,230 for fiscal year 1995 and $11,407,307 for 
                fiscal year 1996.
            ``(8) For grants under section 523(f), $14,918,314 for 
        fiscal year 1995 and $15,365,863 for fiscal year 1996.
            ``(9) For grants under section 533, $33,056,408 for fiscal 
        year 1993 and $34,048,100 for fiscal year 1994.
            ``(10) For grants under section 538, $10,000,000 for fiscal 
        year 1995, which shall remain available until the end of fiscal 
        year 1997.
            ``(11) For assistance under section 539, $10,000,000 for 
        fiscal year 1995 and $12,000,000 for fiscal year 1996.''.
    (c) Rental Assistance Payment Contracts.--Section 513(c) of the 
Housing Act of 1949 (42 U.S.C. 1483(c)(1)) is amended by striking 
``(c)'' and all that follows through the end of paragraph (1) and 
inserting the following:
    ``(c) Rental and Operating Assistance.--
            ``(1) In general.--The Secretary, to the extent approved in 
        appropriations Acts for fiscal years 1995 and 1996, may enter 
        into rental assistance payment contracts under section 
        521(a)(2)(A) and contracts for operating assistance under 
        section 521(a)(5), aggregating $454,079,620 for fiscal year 
        1995 and $467,702,009 for fiscal year 1996.''.
    (d) Supplemental Rental Assistance Payment Contracts.--Section 
513(d) of the Housing Act of 1949 (42 U.S.C. 1483(d)) is amended to 
read as follows:
    ``(d) Supplemental Rental Assistance Contracts.--The Secretary, to 
the extent approved in appropriations Acts for fiscal years 1995 and 
1996, may enter into 5-year supplemental rental assistance contracts 
under section 502(c)(5)(D) aggregating $13,070,160 for fiscal year 1995 
and $13,462,265 for fiscal year 1996.''.
    (e) Rural Housing Voucher Authority.--Section 513(e) of the Housing 
Act of 1949 (42 U.S.C. 1483(e)) is amended to read as follows:
    ``(e) Rural Housing Vouchers.--There are authorized to be 
appropriated for rural housing vouchers under section 542, $100,000,000 
for fiscal year 1995 and $100,000,000 for fiscal year 1996.''.
    (f) Rental Housing Loan Authority.--Section 515(b)(4) of the 
Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by striking 
``1991'' and inserting ``1996''.

SEC. 902. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL HOUSING PROGRAMS.

    Section 501(b)(6) of the Housing Act of 1949 (42 U.S.C. 1471(b)(6)) 
is amended by adding at the end the following new sentence: ``In any 
case in which assistance made available under this title may be 
provided to a State or State agency or in which a State or State agency 
is eligible to participate in a program or activity under this title, 
such assistance may also be provided to Indian tribes and tribal 
agencies and Indian tribes and tribal agencies shall be eligible to 
participate, respectively.''.

SEC. 903. ESCROW FUND.

    Section 501(e) of the Housing Act of 1949 (42 U.S.C. 1471(e)) is 
amended by striking the third and fourth sentences and inserting the 
following: ``The Secretary may establish in the United States Treasury 
an escrow fund for the deposit of such periodic payments. The Secretary 
may direct the Secretary of the Treasury to invest and reinvest amounts 
in the escrow fund in public debt securities with maturities suitable 
for the needs of the escrow fund and bearing interest at rates 
determined by the Secretary of the Treasury, taking into consideration 
the current average market yield on outstanding marketable obligations 
of the United States of comparable maturities. Any interest earned 
shall be credited to the escrow fund. The Secretary shall disburse 
amounts at the appropriate time or times for the purposes for which the 
amounts were escrowed in the fund. The interest rate to be paid on 
escrowed amounts shall be determined annually based on the interest 
earned less an amount not to exceed 1 percent which shall be used for 
expenses in carrying out the provisions of this title.''.

SEC. 904. SECTION 502 HOMEOWNERSHIP LOANS.

    (a) Remote Rural Areas.--Section 502(f) of the Housing Act of 1949 
(42 U.S.C. 1472(f)) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1); and
            (3) by adding at the end the following new paragraph:
            ``(2) Security.--In making a loan under this section for 
        housing located in a rural area that is a remote rural area 
        (which shall include tribal allotted or Indian trust land) 
        where the borrower resides or is employed, the Secretary shall 
        consider the actual replacement cost of the property and 
        structure for which the loan is made as adequate security for 
        the loan required under subsection (b).''.
    (b) Deferred Mortgage Demonstration.--Paragraphs (1) and (2) of 
section 502(g) of the Housing Act of 1949 (42 U.S.C. 1472(g)) are 
amended to read as follows:
            ``(1) Authority.--With respect to families or persons 
        otherwise eligible for assistance under subsection (d) but 
        having incomes below the amount determined to qualify for a 
        loan under this section, the Secretary may defer mortgage 
        payments beyond the amount affordable at 1 percent interest, 
        taking into consideration income, taxes, and insurance. 
        Deferred amounts shall not exceed 25 percent of the amount of 
        the payment due at 1 percent interest and shall be subject to 
        recapture.
            ``(2) Funding.--Subject to approval in appropriations Acts, 
        not more than 10 percent of the amount approved for each of 
        fiscal years 1993 and 1994 for loans under this section may be 
        used to carry out this subsection.''.
    (c) Phase-In of Rent Increases.--Section 502(c)(4)(B)(vi) of the 
Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(vi)) is amended by 
inserting before the period at the end the following: ``, except that 
any such increase in rents for current tenants (except for increases 
made necessary by increases in operating costs) shall (I) be phased in 
equally over a period of not less than 3 years, if such increase is 30 
percent or more, and (II) be limited to not more than 10 percent per 
year if such increase is more than 10 percent but less than 30 
percent''.

SEC. 905. DESIGNATION OF UNDERSERVED AREAS AND RESERVATION OF 
              ASSISTANCE.

    (a) Reauthorization and Set-Aside.--Section 509(f)(4) of the 
Housing Act of 1949 (42 U.S.C. 1479(f)(4)) is amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence--
                            (i) by striking ``5.0 percent in fiscal 
                        years 1993 and 1994'' and inserting ``not less 
                        than 5 percent or more than 10 percent for each 
                        of fiscal years 1995 and 1996''; and
                            (ii) by striking ``514, 515, and 524'' and 
                        inserting ``and 515''; and
                    (B) in the second sentence, by striking ``sections 
                514 and 515'' and inserting ``section 515''; and
            (2) in subparagraph (B)(ii), by striking ``5 percent'' and 
        inserting ``10 percent''.
    (b) 2-Year and 3-Year Designations.--Section 509(f) of the Housing 
Act of 1949 (42 U.S.C. 1479(f)) is amended--
            (1) in paragraph (1)--
                    (A) in the 1st sentence, by striking ``in each 
                fiscal year''; and
                    (B) in the 2d sentence, by striking ``year in'' and 
                inserting ``first year for'';
            (2) in paragraph (2)--
                    (A) in the first sentence, by striking ``paragraph 
                (4)'' and inserting ``paragraph (5)''; and
                    (B) by striking the last sentence;
            (3) in paragraph (3)(B), by striking ``paragraph (2)'' and 
        inserting ``paragraph (3)'';
            (4) in paragraph (4)(A), by striking ``paragraph (7)'' and 
        inserting ``paragraph (8)'';
            (5) by redesignating paragraphs (2) through (8) as 
        paragraphs (3) through (9), respectively; and
            (6) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Timing and duration of designations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall redesignate the 
                targeted underserved areas under this subsection once 
                every 2 fiscal years and such designations shall remain 
                in effect for a period of 2 fiscal years. The first 
                such 2-year designation shall be made for fiscal years 
                1995 and 1996.
                    ``(B) Designations for indian areas.--The Secretary 
                shall ensure that, at all times, not less than 5 
                counties or communities that contain tribal allotted or 
                Indian trust land are included among the 100 counties 
                and communities designated as targeted underserved 
                areas. The Secretary shall redesignate the counties or 
                communities designated as a targeted underserved area 
                in compliance with this subparagraph once every 3 
                fiscal years and such designations shall remain in 
                effect for 3 fiscal years. The first such 3-year 
                designation shall be made for fiscal years 1995 through 
                1997. Upon designation, the Secretary shall specify any 
                targeted underserved area designated in compliance with 
                this subparagraph.''.

SEC. 906. SECTION 515 RURAL RENTAL HOUSING.

    (a) Loan Term.--Section 515(a)(2) of the Housing Act of 1949 (42 
U.S.C. 1485(a)(2)) is amended by striking ``fifty'' and inserting 
``30''.
    (b) Equity Takeout.--Section 515(t) of the Housing Act of 1949 (42 
U.S.C. 1485(t)) is amended by striking paragraphs (4) and (5) and 
redesignating paragraphs (6), (7), and (8) as paragraphs (4), (5), and 
(6), respectively.
    (c) Set-Aside for Nonprofit Entities.--The first sentence of 
section 515(w)(1) of the Housing Act of 1949 (42 U.S.C. 1485(w)(1)) is 
amended by striking ``fiscal years 1994 and 1995'' and inserting 
``fiscal years 1995 and 1996.''.
    (d) Authority for Sequential Loan Transfers and Limitation on 
Project Transfers.--Section 515 of the Housing Act of 1949 (42 U.S.C. 
1485) is amended by inserting after subsection (g) the following new 
subsection:
    ``(h) Limitation on transfer of projects.--Beginning after the date 
of the enactment of the Housing and Community Development Act of 1994, 
any interest in the ownership of a project for which a loan is made or 
insured under this section may be transferred only if the Secretary 
determines that such transfer would be in the best interests of the 
tenants of the housing for which the loan was made or insured and of 
the Federal Government.''.
    (e) Prepayment.--
            (1) In general.--Section 502(c)(1) of the Housing Act of 
        1949 (42 U.S.C. 1472(c)(1)) is amended by adding at the end the 
        following:
    ``(C) Beginning after May 26, 1994, and prior to the expiration of 
2 years after the date of enactment of this subparagraph, the Secretary 
may not accept an offer to prepay, make an equity loan, transfer to a 
nonprofit organization, or request refinancing in accordance with 
subsection (b)(3) of, any loan made or insured under this section 
pursuant to a contract entered into before the enactment of the 
Department of Housing and Urban Development Reform Act of 1989.''.
            (2)  Approval of assistance.--Section 502(c)(4)(C) of the 
        Housing Act of 1949 (42 U.S.C. 1472(c)(4)(C)) is amended by 
        striking the matter preceding clause (i) and inserting the 
        following:
    ``(C) Approval of assistance.--The Secretary may approve assistance 
under subparagraph (B) only if the restrictive period has expired for 
any loan made or insured under section 514 or 515 of this title 
pursuant to a contract entered into after December 21, 1979, but before 
the date of enactment of the Department of Housing and Urban 
Development Reform Act of 1989, and the Secretary determines that the 
combination of assistance provided--''.

SEC. 907. OPTIONAL CONVERSION OF RENTAL ASSISTANCE PAYMENTS TO 
              OPERATING SUBSIDY FOR MIGRANT FARMWORKER PROJECTS.

    (a) In General.--Section 521(a) of the Housing Act of 1949 (42 
U.S.C. 1490a(a)) is amended by adding at the end the following new 
paragraph:
    ``(5) Operating Assistance for Migrant Farmworker Projects.--
            ``(A) Authority.--In the case of housing (and related 
        facilities) for migrant farmworkers provided or assisted with a 
        loan under section 514 or a grant under section 516, the 
        Secretary may, at the request of the owner of the project, use 
        amounts provided for rental assistance payments under paragraph 
        (2) to provide assistance for the costs of operating the 
        project. Any project assisted under this paragraph may not 
        receive rental assistance under paragraph (2).
            ``(B) Amount.--In any fiscal year, the assistance provided 
        under this paragraph for any project shall not exceed an amount 
        equal to 90 percent of the operating costs for the project for 
        the year, as determined by the Secretary. The amount of 
        assistance to be provided for a project under this paragraph 
        shall be an amount that makes units in the project available to 
        migrant farmworkers in the area of the project at rates 
        generally not exceeding 30 percent of the monthly adjusted 
        incomes of such farmworkers, based on the prevailing incomes of 
        such farmworkers in the area.
            ``(C) Submission of information.--The owner of a project 
        assisted under this paragraph shall be required to provide to 
        the Secretary, at least annually, a budget of operating 
        expenses and estimated rental income, which the Secretary shall 
        use to determine the amount of assistance for the project.
            ``(D) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                    ``(i) The term `migrant farmworker' shall have the 
                same meaning given the term in section 516(k)(7).
                    ``(ii) The term `operating cost' means expenses 
                incurred in operating a project, including expenses 
                for--
                            ``(I) administration, maintenance, repair, 
                        and security of the project;
                            ``(II) utilities, fuel, furnishings, and 
                        equipment for the project; and
                            ``(III) maintaining adequate reserve funds 
                        for the project.''.
    (b) Conforming Amendments.--Title V of the Housing Act of 1949 (42 
U.S.C. 1471 et seq.) is amended--
            (1) in section 502--
                    (A) in subsection (c)(1)(A)(i), by striking ``or 
                (a)(2)'' and inserting ``, (a)(2), or (5)'';
                    (B) in subsection (c)(4)(B)(ii), by inserting 
                before the period at the end the following: ``, or 
                additional assistance or an increase in assistance 
                provided under section 521(a)(5)'';
                    (C) in subsection (c)(4)(B)(iii), by inserting 
                before the period at the end the following: ``, or 
                current tenants of projects not assisted under section 
                521(a)(5)'';
                    (D) in subsection (c)(5)(C)(iii)--
                            (i) by striking the second comma; and
                            (ii) by inserting ``, or any assistance 
                        payments received under section 521(a)(5),'' 
                        before ``with respect'';
                    (E) in subsection (c)(5)(D), by inserting before 
                the period at the end the following: ``or, in the case 
                of housing assisted under section 521(a)(5), does not 
                exceed the rents established for the project under such 
                section'';
            (2) in the second sentence of section 509(f)(5) (as 
        redesignated by the preceding provisions of this title), by 
        striking ``an amount of section 521 rental assistance'' and 
        inserting ``, from amounts available for assistance under 
        paragraphs (2) and (5) of section 521(a), an amount'';
            (3) in section 513(c)(2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``or contracts for operating assistance under 
                section 521(a)(5)'' after ``521(a)(2)(A)'';
                    (B) in subparagraph (A), by inserting ``or 
                operating assistance contracts'' after ``contracts'';
                    (C) in subparagraph (B), by striking ``rental'' 
                each place it appears; and
                    (D) in subparagraph (C), by inserting ``or 
                operating assistance contracts'' after ``contracts'';
            (4) in section 521(a)(2)(B)--
                    (A) by inserting ``or paragraph (5)'' after ``this 
                paragraph''; and
                    (B) by striking ``which shall'' and all that 
                follows through the period at the end and inserting the 
                following: ``. The budget (and the income, in the case 
                of a project assisted under this paragraph) shall be 
                used to determine the amount of the assistance for each 
                project.'';
            (5) in section 521(c), by striking ``subsection (a)(2)'' 
        and inserting ``subsections (a)(2) and (a)(5)'';
            (6) in section 521(e), by inserting after ``recipient'' the 
        following: ``or any tenant in a project assisted under 
        subsection (a)(5)''; and
            (7) in section 530, by striking ``rental assistance 
        payments with respect to such project under section 
        521(a)(2)(A)'' an inserting ``assistance payments with respect 
        to such project under section 521(a)(2)(A) or 521(a)(5)''.

SEC. 908. ELIGIBILITY OF MANUFACTURED HOME PARKS FOR BUILDING SITE 
              LOANS FOR COOPERATIVES.

    The first sentence of section 524(a)(1) of the Housing Act of 1949 
(42 U.S.C. 1490d(a)(1)) is amended by inserting before the period at 
the end the following: ``, and for the acquisition and development of 
manufactured home parks owned by nonprofit organizations for future 
ownership by low- and moderate-income residents of the park''.

SEC. 909. RURAL HOUSING REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Agriculture shall submit a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Banking, Finance and Urban Affairs of the House of Representatives on 
the rural rental housing program administered by the Farmer's Home 
Administration under section 515 of the Housing Act of 1949. Such 
report shall review and analyze the programmatic and fiscal performance 
of the section 515 program, and shall address the criticisms of the 
program detailed in the report entitled ``A Report to the Committee on 
Appropriations, U. S. House of Representatives, on the Practices and 
Procedures Regarding Certain Housing and Loan Assistance Programs Under 
the Farmer's Home Administration''.

SEC. 910. PRIORITY FOR RURAL HOUSING VOUCHER ASSISTANCE.

    Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following new subsection:
    ``(c) Priority.--
            ``(1) Requirement.--In providing assistance under this 
        section, the Secretary shall give preference to providing 
        assistance for rental housing that--
                    ``(A) is financed or assisted with a loan, 
                guarantee, insurance, or other assistance provided 
                under this title; and
                    ``(B)(i) has a significant number of units, as 
                determined by the Secretary, that have been vacant for 
                extended periods; or
                    ``(ii) is occupied by a significant number of 
                families, as determined by the Secretary, who pay as 
                rent for a unit in the housing an amount exceeding 30 
                percent of the family's monthly adjusted income.
            ``(2) Project-based assistance.--To provide assistance 
        according to the preference under paragraph (1), the Secretary 
        may enter into contracts with owners of housing described in 
        paragraph (1) to provide voucher assistance payments that are 
        attached to such housing on behalf of very low-income families 
        who reside in such housing.''.

SEC. 911. NATIVE AMERICAN RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM.

    Title V of the Housing Act of 1949 is amended by inserting after 
section 537 (42 U.S.C. 1490p-1) the following new section:

``SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION PROGRAM FOR NATIVE 
              AMERICANS AND ALASKAN NATIVES.

    ``(a) Authority.--The Secretary shall carry out a program under 
this section to demonstrate the effectiveness of assisting Native 
Americans and Alaskan Natives in underserved areas to apply for, 
obtain, and use housing assistance under this title.
    ``(b) Grants.--Under the demonstration under this section, the 
Secretary shall make grants to technical assistance providers selected 
under subsection (f) to carry out activities under subsection (c) with 
respect to tribes selected under subsection (e) (and members of the 
tribes) in the selected areas. Of the amounts provided to a technical 
assistance provider under a grant under this section, 40 percent shall 
be disbursed to the technical assistance provider in fiscal year 1995, 
30 percent shall be so disbursed in fiscal year 1996, and 30 percent 
shall be so disbursed in fiscal year 1997.
    ``(c) Use of Assistance.--
            ``(1) Eligible activities.--Any amounts provided to a 
        technical assistance provider under a grant under this section 
        shall be used by the technical assistance provider only--
                    ``(A) to train individuals for employment as local 
                project coordinators under paragraph (2), which shall 
                include training regarding the availability, 
                application for, and use of housing assistance under 
                this title with respect to tribes and members of 
                tribes;
                    ``(B) to provide ongoing technical assistance and 
                training to local project coordinators;
                    ``(C) to provide assistance to the tribes selected 
                under subsection (e) in the selected areas, or to 
                Native American or Alaskan Native housing organizations 
                serving such tribes, to employ local project 
                coordinators trained pursuant to subparagraph (A); and
                    ``(D) to establish a revolving fund to provide 
                loans to tribes and members of tribes for customary and 
                reasonable costs incurred in preparing and submitting 
                applications for housing assistance under this title to 
                be used in the selected areas (including costs of 
                credit reports), except that not more than $1,500 may 
                be provided for the purpose under this subparagraph to 
                any single tribe or Native American or Alaskan Native 
                housing organization.
            ``(2) Local project coordinator.--For purposes of this 
        section, a local project coordinator shall be an individual 
        who--
                    ``(A) is employed by a tribe selected under 
                subsection (e) in, or Native American or Alaskan Native 
                housing organization serving, the selected area;
                    ``(B) provides advice and assistance to the tribe 
                or the tribes served by the organization (and members 
                of such tribes), regarding the availability, 
                application for, and use of housing assistance under 
                this title;
                    ``(C) otherwise facilitates the use of such 
                assistance by the tribes and their members; and
                    ``(D) assists the tribes and their members in 
                obtaining loans from the revolving fund established 
                under paragraph (1)(D).
    ``(d) Tribal Contributions to Demonstration Program.--Each tribe 
selected under subsection (e) for participation in the demonstration 
program under this section shall enter into an agreement with the 
technical assistance provider to provide in-kind or financial 
assistance, in addition to amounts provided under this section, for 
activities under the demonstration program, in an amount determined by 
the tribe and the technical assistance provider. The assistance 
provided pursuant to such agreement may include assistance in the form 
of office space, equipment, transportation, salary enhancement, and 
fringe benefits, and other forms of assistance.
    ``(e) Selection of Tribes and Areas.--
            ``(1) Eligibility.--The Secretary shall provide for the 
        technical assistance providers receiving grants under this 
        section to select for participation in the demonstration under 
        this section not more than a total of 15 tribes--
                    ``(A) that are located in counties or communities--
                            ``(i) that are eligible for designation as 
                        targeted underserved areas under section 
                        509(f); or
                            ``(ii) that include tribal allotted or 
                        Indian trust land; and
                    ``(B) that--
                            ``(i) have agreed to participate in the 
                        demonstration under this section by designating 
                        individuals for training as local project 
                        coordinators under subsection (c); or
                            ``(ii) are located in a county or community 
                        within which is located a Native American or 
                        Alaskan Native housing organization that has so 
                        agreed to participate in the demonstration 
                        under this section.
            ``(2) Criteria for selection.--Each technical assistance 
        provider selecting tribes pursuant to paragraph (1) shall make 
        such selections according to criteria that include--
                    ``(A) the extent of substandard housing on the 
                reservation of the tribe;
                    ``(B) the extent of the waiting list for housing 
                assistance under Federal housing programs in the 
                community or community under paragraph (1)(A);
                    ``(C) the extent of interest in and willingness to 
                participate in the demonstration program under this 
                section for a 3-year period; and
                    ``(D) the extent of willingness to provide in-kind 
                or financial assistance in addition to amounts provided 
                under this section for activities under the 
                demonstration program.
            ``(3) Treatment as targeted underserved areas.--
        Notwithstanding the designation of counties and communities as 
        targeted underserved areas under section 509(f)(1) and the 
        provisions of section 520, any selected area under this section 
        shall be considered a targeted underserved area for fiscal 
        years 1995, 1996, and 1997, for purposes of eligibility for 
        assistance with amounts reserved under section 509(f)(4)(A).
    ``(f) Selection of Technical Assistance Providers.--
            ``(1) Eligibility.--The Secretary may make a grant under 
        this section only to a nonprofit organization having experience 
        in providing training and technical assistance regarding the 
        use of housing assistance under this title and in administering 
        revolving loan funds for costs relating to housing assistance 
        programs under this title.
            ``(2) Application.--The Secretary shall provide for 
        nonprofit organizations meeting the requirements under 
        paragraph (1) to submit applications for a grant under this 
        section during a period of not more than 45 days that begins 
        upon publication of the notice of funding availability under 
        subsection (i).
            ``(3) Selection.--Not more than 30 days after expiration of 
        such period, the Secretary shall select, to receive grants 
        under this section, 1 or more nonprofit organizations 
        submitting applications that are--
                    ``(A) capable of carrying out the duties of 
                technical assistance providers under this section; and
                    ``(B) knowledgeable and experienced regarding 
                housing needs and issues of Native Americans and 
                Alaskan Natives and housing assistance programs under 
                this title; and
                    ``(C) agree to comply with the provisions of this 
                section.
    ``(g) Reports.--
            ``(1) Local project coordinators.--Each local project 
        coordinator trained or assisted by a technical assistance 
        provider with amounts from a grant under this section shall 
        submit a report to the technical assistance provider for each 
        of fiscal years 1995 through 1997, regarding the activities of 
        the coordinator. The report shall be submitted not later than 
        30 days after the conclusion of the fiscal year for which the 
        report is made.
            ``(2) Technical assistance providers.--Each technical 
        assistance provider receiving a grant under this section shall 
        submit a report to the Secretary for each of fiscal years 1995 
        through 1997, summarizing the information submitted under 
        paragraph (1) for the fiscal year and describing the activities 
        of the technical assistance provider under the demonstration 
        under this section during the fiscal year. The report shall be 
        submitted not later than 60 days after the conclusion of the 
        fiscal year for which the report is made.
            ``(3) Secretary.--The Secretary shall submit a report to 
        the Congress for each of fiscal years 1995 through 1997 
        describing the demonstration under this section and the 
        findings of the Secretary as a result of the demonstration. The 
        report shall be submitted not later than 90 days after the 
        conclusion of the fiscal year for which the report is made.
    ``(h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Alaskan native village.--The term `Alaskan Native 
        Village' has the same meaning given the term `Native village' 
        in section 3 of the Alaska Native Claims Settlement Act.
            ``(2) Native american or alaskan native housing 
        organization.--The term `Native American or Alaskan Native 
        housing organization' means a nonprofit organization that 
        primarily serves a tribe or tribes, and includes Indian housing 
        authorities and other housing entities of a tribe.
            ``(3) Nonprofit organization.--The term `nonprofit 
        organization' means any private, nonprofit organization that--
                    ``(A) is organized or chartered under State, 
                tribal, or local laws;
                    ``(B) has no part of its net earning inuring to the 
                benefit of any member, founder, contributor, or 
                individual;
                    ``(C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    ``(D) through its articles of incorporation or 
                through resolution of the governing body of a tribe, 
                has among its purposes significant activities related 
                to the provision of decent housing that is affordable 
                to low- and moderate-income families.
            ``(4) Selected area.--The term `selected area' means, with 
        respect to any tribe selected under subsection (e), the county 
        or community meeting the requirements of subsection (e)(1) in 
        which the tribe selected is located.
            ``(5) Technical assistance provider.--The term `technical 
        assistance provider' means a nonprofit organization (including 
        a tribe and an Indian housing authority) that is selected under 
        subsection (f) to receive a grant under this section.
            ``(6) Tribe.--The term `tribe' means any Indian tribe, 
        band, group, or nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        that is considered an eligible recipient under the Indian Self-
        Determination and Education Assistance Act or was considered an 
        eligible recipient under chapter 67 of title 31, prior to the 
        repeal of such chapter.
    ``(i) Notice of Funding Availability.--
            ``(1) Publication.--The Secretary shall cause to be 
        published in the Federal Register notice of the availability of 
        any amounts made available for grants under this section. Such 
        notice shall be published not later than the expiration of the 
        90-day period beginning on the date that amounts are 
        appropriated to carry out this section.
            ``(2) Contents.--The notice referred to in paragraph (1) 
        shall--
                    ``(A) describe the requirements for eligibility to 
                receive a grant, the purposes of the grant, and the 
                permissible uses of grant amounts;
                    ``(B) contain an address to which requests for 
                additional information regarding the demonstration 
                under this section may be made; and
                    ``(C) state the deadline established by the 
                Secretary pursuant to section (f)(2) for the submission 
                of applications for a grant.''.

SEC. 912. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

    Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) is 
amended by inserting after section 538 (as added by the preceding 
provisions of this title) the following new section:

``SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.

    ``(a) In General.--The Secretary is authorized to provide 
assistance to develop the capacity and ability of community development 
corporations, community housing development organizations, and other 
nonprofit organizations to undertake community development and 
affordable housing projects and programs in rural areas.
    ``(b) Form of Assistance.--Assistance under this section may be 
used for--
            ``(1) training, education, support, and advice to enhance 
        the technical and administrative capabilities of community 
        development corporations, community housing development 
        organizations, and nonprofit organizations in rural areas;
            ``(2) loans, grants, or predevelopment assistance to 
        community development corporations, community housing 
        development organizations, and nonprofit organizations to carry 
        out community development and affordable housing activities 
        that benefit low-income families in rural areas; and
            ``(3) such other activities for rural areas as may be 
        determined by the Secretary.
    ``(c) Matching Requirement.--Assistance provided under this section 
shall be matched from private sources in an amount equal to 1 times the 
amount made available under this section.
    ``(d) Implementation.--The Secretary shall by notice establish such 
requirements as may be necessary to carry out the provisions of this 
section. The notice shall take effect upon issuance.''.

             TITLE X--REGULATORY AND MISCELLANEOUS PROGRAMS

SEC. 1001. OFHEO ASSESSMENT COLLECTION DATES.

    Section 1316(b) of the Housing and Community Development Act of 
1992 (42 U.S.C. 4516(b)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Timing of payment.--The annual assessment shall be 
        payable on October 1 and April 1 of each fiscal year.''.

SEC. 1002. LEAD-BASED PAINT TECHNICAL ASSISTANCE AMENDMENTS.

    The Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 
U.S.C. 4851 et seq.) is amended--
            (1) in section 1011(g)--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by inserting 
                        before the period the following: ``by providing 
                        technical assistance either directly, or 
                        indirectly under contract or otherwise''; and
                            (ii) by striking the second sentence; and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Set-aside.--Of the total amount appropriated under 
        subsection (p), there shall be set aside to carry out this 
        subsection $5,000,000 for fiscal year 1995 and $5,000,000 for 
        fiscal year 1996.'';
            (2) in section 1052, by inserting ``either directly, or 
        indirectly under contract or otherwise,'' after ``other Federal 
        agencies,'';
            (3) by striking section 1053 and inserting the following:

``SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVITIES.

    ``The Secretary may use funding available to carry out this part to 
undertake, either directly, or indirectly under contract or otherwise, 
pursuant to title V of the Housing and Urban Development Act of 1970, 
such studies, tests (including pilot tests of new or revised programs), 
evaluations, demonstrations, education of the public, and preparation 
of training materials, as are consistent with the purposes of this 
Act.''; and
            (4) by adding at the end the following new section:

``SEC. 1054. AUTHORIZATION.

    ``Of the total amount approved in appropriation Acts under section 
1011(p), there shall be set aside to carry out this part $10,000,000 
for fiscal year 1995 and $10,000,000 for fiscal year 1996.''.

SEC. 1003. LEAD-BASED PAINT TARGET HOUSING HAZARD REDUCTION PROGRAM.

    Section 1011(p) of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992 (42 U.S.C. 4852(p)) is amended to read as 
follows:
    ``(p) Authorization of Appropriations.--There are authorized to be 
appropriated $150,000,000 for fiscal year 1995 and $150,000,000 for 
fiscal year 1996 to carry out this title.''.

SEC. 1004. LEAD-BASED PAINT NOTIFICATION REQUIREMENTS.

    (a) Disclosure of Information Concerning Lead Upon Transfer of 
Residential Property.--Section 1018(a)(1)(A) of the Residential Lead-
Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4852d(a)(1)(A)) is 
amended by inserting before the semicolon the following: ``, which 
shall be made available in English and Spanish versions, and if 
practicable, in other languages as are spoken by a substantial number 
of the residents, as determined by the Secretary and the 
Administrator''.

SEC. 1005. HUD RESEARCH AND DEVELOPMENT.

    The second sentence of section 501 of the Housing and Urban 
Development Act of 1970 (12 U.S.C. 1701z-1) is amended to read as 
follows: ``There are authorized to be appropriated to carry out this 
title $40,000,000 for fiscal year 1995 and $40,000,000 for fiscal year 
1996.''.

SEC. 1006. INDEMNIFICATION OF CONTRACTORS FOR INTELLECTUAL PROPERTY 
              RIGHTS DISPUTES.

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

SEC. 1007. FAIR HOUSING INITIATIVES PROGRAM AUTHORIZATION OF 
              APPROPRIATIONS.

    Section 561(g) of the Housing and Community Development Act of 1987 
(42 U.S.C. 3616 note) is amended to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to remain available until expended to carry out the 
provisions of this section $26,000,000 for fiscal year 1995 and 
$26,000,000 for fiscal year 1996. Amounts appropriated shall remain 
available until expended.''.

SEC. 1008. CIVIL MONEY PENALTIES FOR VIOLATIONS OF THE HOME MORTGAGE 
              DISCLOSURE ACT BY NONSUPERVISED MORTGAGEES.

    Section 305 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 
2804) is amended--
            (1) by striking subsection (b)(4); and
            (2) by adding at the end the following new subsection:
    ``(d) Powers of the Secretary of Housing and Urban Development.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development (hereafter in this subsection referred to as the 
        `Secretary') shall enforce compliance with the requirements 
        imposed under this title with regard to lending institutions 
        not named in subsection (b).
            ``(2) Civil money penalties.--Pursuant to paragraph (1), 
        the Secretary may impose a civil money penalty for failure to 
        comply with the requirements of this title.
            ``(3) Amount of penalty.--The amount of the penalty, as 
        determined by the Secretary, may not exceed $5,000 for each 
        violation, except that the maximum penalty for all violations 
        by any particular lending institution during any 1-year period 
        shall not exceed $1,000,000.
            ``(4) Violations for which a penalty may be imposed.--A 
        civil money penalty may be imposed for the late submission of a 
        report, failure to submit a report, submission of an illegible 
        report, submission of an erroneous report, or failure to submit 
        a corrected report for a report that was illegible or 
        erroneous.
            ``(5) Agency procedures.--
                    ``(A) Establishment.--The Secretary shall establish 
                standards and procedures governing the imposition of 
                civil money penalties under this section. These 
                standards and procedures--
                            ``(i) shall provide for the Secretary to 
                        make the determination to impose the penalty or 
                        to use an administrative entity (such as the 
                        Mortgagee Review Board, established pursuant to 
                        section 202(c) of the National Housing Act) to 
                        make the determination;
                            ``(ii) shall provide for the imposition of 
                        a penalty only after the lending institution 
                        has been given an opportunity for a hearing on 
                        the record; and
                            ``(iii) may provide for review by the 
                        Secretary of a determination or order, or 
                        interlocutory ruling, arising from a hearing.
                    ``(B) Final orders.--If a hearing is not requested 
                during the 15-day period beginning on the date on which 
                notice of opportunity for hearing is received, the 
                imposition of the penalty shall constitute a final and 
                unappealable determination. If the Secretary reviews 
                the determination or order, the Secretary may affirm, 
                modify, or reverse that determination or order. If the 
                Secretary does not review the determination or order 
                prior to the expiration of the 90-day period beginning 
                on the date of the issuance of the determination or 
                order, the determination or order shall be final.
                    ``(C) Factors in determining amount of penalty.--In 
                determining the amount of a penalty under this 
                subsection, consideration shall be given to such 
                factors as the gravity of the offense, any history of 
                prior offenses, ability to pay the penalty, deterrence 
                of future violations, and such other factors as the 
                Secretary may determine to be appropriate.
                    ``(D) No review of imposition of penalty.--Except 
                as provided in this subsection, the Secretary's 
                determination or order imposing a penalty under this 
                subsection shall not be subject to review.
            ``(6) Judicial review of agency determination.--
                    ``(A) In general.--After exhausting all 
                administrative remedies established by the Secretary 
                under this subsection, a lending institution against 
                which the Secretary has imposed a civil money penalty 
                under this subsection may obtain a review of the 
                penalty as may be addressed in the notice of 
                determination to impose a penalty in the appropriate 
                court of appeals of the United States, by filing in 
                such court, before the expiration of the 20-day period 
                beginning on the date of the entry of such order or 
                determination, a written petition praying that the 
                Secretary's determination or order be modified or set 
                aside in whole or in part.
                    ``(B) Objections not raised in hearing.--The court 
                shall not consider any objection that was not raised in 
                the hearing conducted pursuant to this subsection 
                unless a demonstration is made of extraordinary 
                circumstances causing the failure to raise the 
                objection. If any party demonstrates to the 
                satisfaction of the court that additional evidence not 
                presented at the hearing is material and that there 
                were reasonable grounds for the failure to present such 
                evidence at the hearing, the court shall remand the 
                matter to the Secretary for consideration of the 
                additional evidence.
                    ``(C) Scope of review.--The decisions, findings, 
                and determinations of the Secretary shall be reviewed 
                pursuant to section 706 of title 5, United States Code.
                    ``(D) Order to pay penalty.--Notwithstanding any 
                other provision of law, in any such review, the court 
                shall have the power to order payment of the penalty 
                imposed by the Secretary.
            ``(7) Action to collect penalty.--If a lending institution 
        fails to comply with the Secretary's determination or order 
        imposing a civil money penalty under this subsection, the 
        Secretary may, after the determination or order is no longer 
        subject to review as provided by this subsection, bring an 
        action in an appropriate United States district court to obtain 
        a monetary judgment against the lending institution. In any 
        such action, the validity and appropriateness of the 
        Secretary's determination or order imposing the penalty shall 
        not be subject to review. The monetary judgment may, in the 
        court's discretion, include the attorneys fees and other 
        expenses incurred by the United States in connection with the 
        action.
            ``(8) Settlement by secretary.--The Secretary may 
        compromise, modify, or remit any civil money penalty imposed 
        under this subsection.
            ``(9) Regulations.--The Secretary shall, by interim rule 
        published in the Federal Register, establish such requirements 
        as may be necessary to carry out this subsection. The Secretary 
        shall issue final regulations based on the interim rule after 
        notice and an opportunity for public comment.
            ``(10) Deposit of penalties in united states treasury.--All 
        civil money penalties collected under this subsection shall be 
        deposited in the Miscellaneous Receipts Account of the United 
        States Treasury.''.

SEC. 1009. YOUTHBUILD.

    (a) Implementation Grants.--Section 454 of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12899c) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``Acquisition'' 
                and all that follows through ``facilities'' and 
                inserting the following: ``acquisition, rehabilitation, 
                or acquisition and rehabilitation of vacant or 
                underutilized community facilities targeted to serving 
                the needs of low- and moderate-income people, or the 
                new construction of community facilities targeted to 
                serving the needs of low- and moderate-income 
                people;'';
                    (B) by striking paragraph (6); and
                    (C) by designating paragraphs (7) and (8) as 
                paragraphs (6) and (7), respectively; and
            (2) by striking subsection (e) and inserting the following:
    ``(e) Priority for Applicants Who Obtain 10 Percent of Their Total 
Budget From Other Sources.--In awarding grants under this section, the 
Secretary shall give priority to applicants to the extent that they 
have succeeded in obtaining not less than 10 percent of their total 
budget for the Youthbuild program from Federal, State, local, or 
private sources other than assistance provided under this subtitle.''.
    (b) Additional Program Requirements.--Section 455(a) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899d(a)) 
is amended--
            (1) in the material preceding paragraph (1), by inserting 
        ``for costs such as construction, rehabilitation, and 
        acquisition'' after ``receiving assistance under this 
        subtitle''; and
            (2) in paragraph (1)(A)--
                    (A) by striking ``90'' and inserting ``80''; and
                    (B) by striking ``less than 60'' and inserting 
                ``that do not exceed 50''.
    (c) Management and Technical Assistance.--Section 458 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899g) is 
amended--
            (1) in subsection (d), by striking ``(b) and (c)'' and 
        inserting ``(a), (b), and (c)'';
            (2) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Data Collection and Analysis.--The Secretary shall collect 
and analyze information necessary to assess the quality and effects of 
the Youthbuild Program, and monitor Youthbuild programs receiving 
assistance under this subtitle.''.
    (d) Authorization of Appropriations.--Section 402 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12870) is amended 
by striking subsection (b) and inserting the following:
    ``(b) Youthbuild.--There are authorized to be appropriated for 
activities authorized under subtitle D of title IV $100,000,000 for 
fiscal year 1995, and $100,000,000 for fiscal year 1996.''.

SEC. 1010. NEIGHBORHOOD REINVESTMENT CORPORATION.

    Section 608(a)(1) of the Neighborhood Reinvestment Corporation Act 
(42 U.S.C. 8107(a)(1)) is amended by striking the first sentence and 
inserting the following: ``There are authorized to be appropriated to 
the corporation to carry out this title $38,667,000 for fiscal year 
1995 and $38,667,000 for fiscal year 1996.''.

SEC. 1011. HUD SALARIES AND EXPENSES.

    Section 7(s)(1) of the Department of Housing and Urban Development 
Act (42 U.S.C. 3535(s)(1)) is amended to read as follows:
    ``(s)(1) Notwithstanding any other provision of law, there is 
authorized to be appropriated for salaries and expenses to carry out 
the purposes of this section $1,000,773,000 for fiscal year 1995 and 
$1,011,618,000 for fiscal year 1996.''.

SEC. 1012. SECTION 23 PROJECT CONVERSION.

    (a) Authorization.--Notwithstanding the terms of contracts entered 
into pursuant to section 14(b)(2) of the United States Housing Act of 
1937, the Secretary is authorized to enter into obligations to convert 
any assistance contract from a leased housing contract under section 23 
of such Act to a project-based assistance contract under section 8 of 
such Act.
    (b) Limitation.--The authorization set forth in subsection (a) is 
conditioned on the repayment to the Secretary of all amounts received 
by the public housing agency under the comprehensive improvement 
assistance program under section 14 of the United States Housing Act of 
1937 for any project for which assistance will be converted subject to 
this section and the amounts, as determined by the Secretary, received 
by the public housing agency under the formula in section 14(k) of such 
Act by reason of such project.

SEC. 1013. CIVIL MONEY PENALTIES FOR IMPROPER PARTICIPATION IN THE 
              ORIGINATION OF TITLE I LOANS.

    (a) Amendment.--Section 2(b)(7) of the National Housing Act (12 
U.S.C. 1703(b)(7)) is amended to read as follows:
            ``(7) Civil money penalties.--With respect to the financing 
        of alterations, repairs, and improvements upon or in connection 
        with existing structures or manufactured homes, the building of 
        new structures, or the purchase of manufactured homes or lots, 
        as authorized under the first sentence of section 2(a), any 
        dealer or loan correspondent (as such terms are defined by the 
        Secretary) that knowingly (as defined in section 536(g)) and 
        materially--
                    ``(A) submits false information; or
                    ``(B) fails to submit information required to be 
                submitted to any financial institution or to the 
                Secretary;
        shall be subject to a civil money penalty in the amount and 
        manner provided under section 536 with respect to mortgagees 
        and lenders.''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) shall apply only with respect to--
            (1) violations that occur on or after the date of enactment 
        of this Act; and
            (2) in the case of a continuing violation (as determined by 
        the Secretary), any portion of the violation that occurs on or 
        after such date of enactment.

SEC. 1014. PUBLIC FACILITIES LOAN.

    The Secretary shall cancel the indebtedness of Lockport Township, 
Illinois, relating to the public facilities loan for Project No. ILL-
11-PFLO112. Lockport Township, Illinois, is hereby relieved of all 
liability to the Federal Government for the outstanding principal 
balance on such loan, the amount of accrued interest on such loan, and 
any other fees and charges payable in connection with such loan.

SEC. 1015. NATIONAL COMMISSION ON THE FUTURE OF THE FEDERAL HOUSING 
              ADMINISTRATION.

    (a) Purpose.--The purpose of this section is to establish a 
national commission which shall develop recommendations on--
            (1) the appropriate future role of the Federal Government 
        in providing mortgage insurance;
            (2) modernizing and improving the structure and operations 
        of the FHA;
            (3) protecting the safety and soundness of the insurance 
        funds of the FHA; and
            (4) increasing service to families currently underserved by 
        the mortgage finance system.
    (b) Establishment.--There is hereby established a commission to be 
known as the National Commission on the Future of the Federal Housing 
Administration.
    (c) Membership.--
            (1) In general.--The Commission shall consist of the 
        Secretary and 18 additional members, who shall be appointed not 
        later than 60 days after amounts to carry out this section are 
        made available under subsection (h), in accordance with the 
        following:
                    (A) Four members shall be appointed by the Chairman 
                of the Committee on Banking, Housing, and Urban Affairs 
                of the Senate and 4 members shall be appointed by the 
                Ranking Minority Member of such Committee.
                    (B) Four members shall be appointed by the Chairman 
                of the Committee on Banking, Finance and Urban Affairs 
                of the House of Representatives and 4 members shall be 
                appointed by the Ranking Minority Member of such 
                Committee.
                    (C) Two members shall be appointed by the 
                Secretary.
            (2) Qualifications.--The 8 members of the Commission 
        appointed under subparagraphs (A) and (B) of paragraph (1) 
        shall include--
                    (A) 1 individual who represents the mortgage 
                finance industry;
                    (B) 1 individual with knowledge and expertise from 
                a secondary mortgage market entity;
                    (C) 1 individual with knowledge and experience 
                concerning home sales or single family asset 
                management;
                    (D) 1 individual who represents the private 
                mortgage insurance industry;
                    (E) 1 individual with knowledge and experience 
                concerning multifamily housing asset management;
                    (F) 1 individual who represents a State or local 
                housing agency active in single family or multifamily 
                housing activities;
                    (G) 1 individual who represents the interests of 
                low-income homeowners, tenants, or residents of urban 
                or rural neighborhoods; and
                    (H) 1 individual who resides in an urban or rural 
                community whose residents are underserved by the 
                conventional housing finance system.
            (3) Chairperson.--The Secretary shall select a chairperson 
        from among members of the Commission.
            (4) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum for the transaction of business.
            (5) Voting.--Each member of the Commission shall be 
        entitled to 1 vote, and all votes shall be given equal weight.
            (6) Vacancies.--Any vacancy on the Commission shall not 
        affect the powers of the Commission and shall be filled in the 
        manner in which the original appointment was made.
            (7) Prohibition on additional pay.--Members of the 
        Commission shall serve without compensation, but shall be 
        reimbursed for travel, subsistence, and other necessary 
        expenses incurred in the performance of their duties as members 
        of the Commission.
    (d) Subcommittees.--In carrying out its duties under subsection 
(e), the Commission shall establish 2 subcommittees, 1 of which shall 
carry out such duties with respect to issues relating to mortgage 
insurance for multi-family housing and 1 of which shall carry out such 
duties with respect to issues relating to mortgage insurance for single 
family housing
    (e) Duties.--
            (1) In general.--The Commission shall conduct a study of 
        the existing operations of the FHA and shall make 
        recommendations regarding the future mission, organization, 
        responsibilities, and functions of the FHA. In conducting the 
        study and formulating recommendations, the Commission shall--
                    (A) determine the most appropriate role for the 
                Federal Government in extending the availability of 
                mortgage credit and review various alternative mortgage 
                products and, with regard to the mission and functions 
                of the FHA, the appropriateness of the use of such 
                products by the FHA;
                    (B) determine whom FHA programs are intended to 
                serve;
                    (C) consider the appropriate relationship between 
                the FHA and the Government National Mortgage 
                Association, and private mortgage insurance and the 
                Government-sponsored enterprises;
                    (D) compare and contrast the FHA with the private 
                marketplace with respect to the quality, price, and 
                variety of mortgages instruments made available to 
                consumers;
                    (E) consider the impact of the FHA on the 
                development of new mortgage products;
                    (F) consider whether the FHA could function more 
                effectively if organized as a Government corporation, a 
                Government-sponsored enterprise, or with any other 
                organizational structure different from the existing 
                structure;
                    (G) consider whether the personnel, procurement, 
                budgeting, and other requirements generally applicable 
                to the Federal agencies should be modified in their 
                applicability to the FHA;
                    (H) review the laws establishing and relating to 
                the FHA and determine whether amendment to such law 
                would be appropriate to restructure the FHA, or to 
                provide new authority or increased flexibility for the 
                operations of the FHA;
                    (I) determine ways in which the FHA can more 
                effectively contribute to the revitalization of inner-
                cities and increase housing opportunities for low-
                income families;
                    (J) determine ways to improve the management and 
                sale of assets owned by the FHA;
                    (K) determine ways to reduce the risk of future 
                insurance losses from the existing inventory of 
                outstanding mortgages insured by the FHA; and
                    (L) determine ways to improve the private 
                management of multifamily properties insured by the 
                FHA.
            (2) Report.--Not later 12 months after the date on which 
        all members of the Commission are appointed under subsection 
        (c), the Commission shall submit to the Secretary and to the 
        Congress a report containing--
                    (A) the information and evaluations specified in 
                paragraph (1); and
                    (B) specific recommendations for legislative and 
                administrative actions to carry out the determinations 
                made pursuant to paragraph (1).
    (f) Powers.--
            (1) Hearings.--The Commission may, for the purpose of 
        carrying out this section, hold such hearings and sit and act 
        at such times and places as the Commission considers 
        appropriate.
            (2) Rules and regulations.--The Commission may adopt such 
        rules and regulations as may be necessary to establish its 
        procedures and to govern the manner of its operations, 
        organization, and personnel.
            (3) Assistance from federal agencies.--
                    (A) Information.--The Commission may secure 
                directly from any department or agency of the United 
                States such data and information as the Commission may 
                require for the purpose of carrying out this section. 
                Upon request of the Commission, any such department or 
                agency shall furnish such data or information. The 
                Commission may acquire data or information directly 
                from such departments or agencies to the same extent 
                that the Secretary may acquire such data or 
                information.
                    (B) Administrative support.--The General Services 
                Administration shall provide to the Commission, on a 
                reimbursable basis, administrative support services 
                requested by the Commission.
                    (C) Personnel details.--Upon the request of the 
                chairperson of the Commission, the Secretary shall, to 
                the extent possible and subject to the discretion of 
                the Secretary, detail any of the personnel of the 
                Department of Housing and Urban Development, on a 
                nonreimbursable basis, to assist the Commission in 
                carrying out its duties under this section.
            (4) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        Federal agencies.
            (5) Contracting.--The Commission may, to such extent and in 
        such amounts as are provided in appropriations Acts, enter into 
        contracts necessary to carry out its duties under this section.
            (6) Advisory committee.--The Commission shall be considered 
        an advisory committee within the meaning of the Federal 
        Advisory Committee Act.
            (7) Staff.--
                    (A) Executive director.--The Commission shall 
                appoint an executive director of the Commission who 
                shall be compensated at a rate fixed by the Commission, 
                but which may not exceed the rate established for level 
                V of the Executive Schedule under title 5, United 
                States Code.
                    (B) Personnel.--In addition to the executive 
                director, the Commission may appoint and fix the 
                compensation of such personnel as the Commission 
                considers appropriate, in accordance with the 
                provisions of title 5, United States Code, governing 
                appointments in the competitive service, and the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of such title, relating to classification and 
                General Schedule pay rates.
                    (C) Limitation.--This paragraph shall be effective 
                only to the extent that amounts are made available in 
                appropriations Acts.
    (g) Definitions.--For purposes of this section--
            (1) the term ``Commission'' means the National Commission 
        on the Future of the Federal Housing Administration established 
        under this section; and
            (2) the term ``FHA'' means the Federal Housing 
        Administration of the Department of Housing and Urban 
        Development.
    (h) Funding.--Of any amounts appropriated pursuant to section 501 
of the Housing and Urban Development Act of 1970, the Secretary shall 
set aside to carry out this section $1,000,000 for fiscal year 1995. 
Any amounts made available pursuant to this subsection shall remain 
available until expended.
    (i) Sunset.--The Commission shall terminate 12 months after the 
date on which all of the members of the Commission are appointed under 
subsection (c).
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```