II

103D CONGRESS

1ST SESSION S. 244

To stimulate enterprise development in economically distressed urban and

rural areas through public and private partnerships facilitated by community development corporations, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 27 (legislative day, JANUARY 5), 1993

Mr. KENNEDY (for himself, Mr. JEFFORDS, Mr. DODD, Mr. METZENBAUM,

Mr. DECONCINI, Mr. SIMON, Mr. HARKIN, Mr. KERRY, Mr. BRADLEY,

Mr. KOHL, Mr. INOUYE, Mr. WELLSTONE, Ms. MIKULSKI, Mr. PELL,

and Mr. MCCAIN), introduced the following bill; which was read twice and

referred to the Committee on Labor and Human Resources

A BILL

To stimulate enterprise development in economically distressed urban and rural areas through public and private

partnerships facilitated by community development corporations, and for other purposes.

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

3 SECTION 1. SHORT TITLE; FINDINGS AND PURPOSE.

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

5 ‘‘National Community Economic Partnership Act of

6 1993’’.

7 (b) FINDINGS.—Congress finds that—
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1 (1) the cities, towns, small communities and

2 rural areas throughout the United States face criti3 cal social and economic problems arising in part

4 from a lack of economic growth in community based

5 economies;

6 (2) the crisis facing local economies has re7 sulted in—

8 (A) a growing percentage of the workforce

9 earning poverty level wages, even though they

10 work full time and year round;

11 (B) the percentage of the labor force living

12 below the poverty line increasing from 25.7 per13 cent in 1979 to 31.5 percent in 1987;

14 (C) population losses, rising unemployment

15 and a decline of the farm sector and of many

16 other rural industries (such as timber, oil, gas,

17 and mining) contribute to the decline of rural

18 economies;

19 (D) with respect to rural areas, 31.9 per20 cent of the workforce falling below the poverty

21 line in 1979, with that percentage rising to

22 42.1 percent in 1987;

23 (E) with respect to urban areas, 23.4 per24 cent of the workforce falling below the poverty
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1 line in 1979, with that percentage rising to

2 28.9 percent in 1987; and

3 (F) the average wage and salary income of

4 the 90 percent of the population with the lowest

5 incomes, between 1977 and 1988, falling 3.5

6 percent in contrast to the richest 1 percent of

7 the population whose incomes more than dou8 bled in that time period.

9 (3) the future well-being of the United States

10 and the well-being of its citizens depends on the es11 tablishment and maintenance of viable community

12 development enterprises;

13 (4) meeting the goal of establishing and main14 taining viable community development enterprises

15 requires—

16 (A) increased public and private invest17 ment in business development activities, espe18 cially in the small business sector which gen19 erates the majority of new jobs as evidenced by

20 the fact that between 1980 and 1986, enter21 prises with less than 100 employees accounted

22 for more than 50 percent of the jobs created in

23 the United States;

24 (B) increased investment and technical as25 sistance to existing community based enter-
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1 prises as evidenced by the fact that during the

2 first half of the 1980’s, more than 75 percent

3 of the total net new jobs in the United States

4 came from the expansion of existing businesses;

5 (C) a substantial expansion and greater

6 continuity in the scope of Federal programs

7 that support community based economic devel8 opment strategies;

9 (D) the continuing efforts at Federal,

10 State and local levels to coordinate the plan11 ning, implementation and evaluation of commu12 nity economic development efforts; and

13 (5) community development corporations, due

14 to their proven capacity and achievements in both

15 the field of community based housing and economic

16 development, are appropriate vehicles through which

17 to advance a national community economic develop18 ment program because—

19 (A) there are currently over 2000 commu20 nity development corporations throughout the

21 United States, operating projects that promote

22 community based housing and economic devel23 opment;

24 (B) community development corporations

25 operate in every State and in virtually every
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1 major city in the United States, and account

2 for many of the existing efforts undertaken to

3 meet the needs of low income persons in both

4 urban and rural communities;

5 (C) community development corporations

6 have developed some 300,000 units of housing,

7 with over 90 percent of these units for use by

8 low income occupants;

9 (D) community development corporations

10 have developed over 19,000,000 square feet of

11 retail space, offices, industrial parks and other

12 industrial developments in economically dis13 tressed communities;

14 (E) community development corporations

15 have made loans to over 3000 enterprises, eq16 uity investments in 242 ventures and own and

17 operate 427 businesses; and

18 (F) community development corporations

19 commercial, industrial and business enterprise

20 development activities have accounted for the

21 creation and retention of nearly 90,000 jobs in

22 the last five years.

23 (c) PURPOSE.—It is the purpose of this Act to stimu24 late enterprise development in economically distressed
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1 urban and rural areas through public and private partner2 ships facilitated by community development corporations.

3 TITLE I—COMMUNITY ECO4 NOMIC PARTNERSHIP IN5 VESTMENT FUNDS

6 SEC. 101. PURPOSE.

7 It is the purpose of this title to increase private in8 vestment in distressed local communities and to build and

9 expand the capacity of local institutions to better serve

10 the economic needs of local residents through the provision

11 of financial and technical assistance to community devel12 opment corporations.

13 SEC. 102. PROVISION OF ASSISTANCE.

14 (a) AUTHORITY.—The Secretary of Health and

15 Human Services (hereafter referred to in this Act as the

16 ‘‘Secretary’’) is authorized, in accordance with this title,

17 to provide nonrefundable lines of credit to community de18 velopment corporations for the establishment, mainte19 nance or expansion of revolving loan funds to be utilized

20 to finance projects intended to provide business and em21 ployment opportunities for low-income, unemployed, or

22 underemployed individuals and to improve the quality of

23 life in urban and rural areas.

24 (b) REVOLVING LOAN FUNDS.—
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1 (1) COMPETITIVE ASSESSMENT OF APPLICA2 TIONS.—In providing assistance under subsection

3 (a), the Secretary shall establish and implement a

4 competitive process for the solicitation and consider5 ation of applications from eligible entities for lines of

6 credit for the capitalization of revolving funds.

7 (2) ELIGIBLE ENTITIES.—To be eligible to re8 ceive a line of credit under this title an applicant

9 shall—

10 (A) be a community development corpora11 tion;

12 (B) prepare and submit an application to

13 the Secretary that shall include a strategic in14 vestment plan that identifies and describes the

15 economic characteristics of the target area to be

16 served, the types of business to be assisted and

17 the impact of such assistance on low-income,

18 underemployed, and unemployed individuals in

19 the target area;

20 (C) demonstrate previous experience in the

21 development of low-income housing or commu22 nity or business development projects in a low23 income community and provide a record of

24 achievement with respect to such projects; and
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1 (D) have secured one or more commit2 ments from local sources for contributions (ei3 ther in cash or in kind, letters of credit or let4 ters of commitment) in an amount that is at

5 least equal to the amount requested in the ap6 plication submitted under subparagraph (B).

7 (3) EXCEPTION.—Notwithstanding the provi8 sions of paragraph (2)(D), the Secretary may reduce

9 local contributions to not less than 25 percent of the

10 amount of the line of credit requested by the com11 munity development corporation if the Secretary de12 termines such to be appropriate in accordance with

13 section 106.

14 SEC. 103. APPROVAL OF APPLICATIONS.

15 (a) IN GENERAL.—In evaluating applications submit16 ted under section 102(b)(2)(B), the Secretary shall ensure

17 that—

18 (1) the residents of the target area to be served

19 (as identified under the strategic development plan)

20 would have an income that is less than the median

21 income for the area (as determined by the Sec22 retary);

23 (2) the applicant community development cor24 poration possesses the technical and managerial ca25 pability necessary to administer a revolving loan
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1 fund and has past experience in the development

2 and management of housing, community and eco3 nomic development programs;

4 (3) the applicant community development cor5 poration has provided sufficient evidence of the ex6 istence of good working relationships with—

7 (A) local businesses and financial institu8 tions, as well as with the community the cor9 poration proposes to serve; and

10 (B) local and regional job training pro11 grams;

12 (4) the applicant community development cor13 poration will target job opportunities that arise from

14 revolving loan fund investments under this title so

15 that 75 percent of the jobs retained or created under

16 such investments are provided to—

17 (A) individuals with—

18 (i) incomes that do not exceed the

19 Federal poverty line; or

20 (ii) incomes that do not exceed 80

21 percent of the median income of the area;

22 (B) individuals who are unemployed or un23 deremployed;

24 (C) individuals who are participating or

25 have participated in job training programs au-
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1 thorized under the Job Training Partnership

2 Act (29 U.S.C. 1501 et seq.) or the Family

3 Support Act of 1988 (Public Law 100–485);

4 (D) individuals whose jobs may be retained

5 as a result of the provision of financing avail6 able under this title; or

7 (E) individuals who have historically been

8 underrepresented in the local economy; and

9 (5) a representative cross section of applicants

10 are approved, including large and small community

11 development corporations, urban and rural commu12 nity development corporations and community devel13 opment corporations representing diverse popu14 lations.

15 (b) PRIORITY.—In determining which application to

16 approve under this title the Secretary shall give priority

17 to those applicants proposing to serve a target area—

18 (1) with a median income that does not exceed

19 80 percent of the median for the area (as deter20 mined by the Secretary); and

21 (2) with a high rate of unemployment, as deter22 mined by the Secretary or in which the population

23 loss is at least 7 percent from April 1, 1980, to

24 April 1, 1990, as reported by the Bureau of the

25 Census.
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1 SEC. 104. AVAILABILITY OF LINES OF CREDIT AND USE.

2 (a) APPROVAL OF APPLICATION.—The Secretary

3 shall provide a community development corporation that

4 has an application approved under section 103 with a line

5 of credit in an amount determined appropriate by the Sec6 retary, subject to the limitations contained in subsection

7 (b).

8 (b) LIMITATIONS ON AVAILABILITY OF AMOUNTS.—

9 (1) MAXIMUM AMOUNT.—The Secretary shall

10 not provide in excess of $2,000,000 in lines of credit

11 under this title to a single applicant.

12 (2) PERIOD OF AVAILABILITY.—A line of credit

13 provided under this title shall remain available over

14 a period of time established by the Secretary, but in

15 no event shall any such period of time be in excess

16 of 3 years from the date on which such line of credit

17 is made available.

18 (3) EXCEPTION.—Notwithstanding paragraphs

19 (1) and (2), if a recipient of a line of credit under

20 this title has made full and productive use of such

21 line of credit, can demonstrate the need and demand

22 for additional assistance, and can meet the require23 ments of section 102(b)(2), the amount of such line

24 of credit may be increased by not more than

25 $1,500,000.
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1 (c) AMOUNTS DRAWN FROM LINE OF CREDIT.—

2 Amounts drawn from each line of credit under this title

3 shall be used solely for the purposes described in section

4 101 and shall only be drawn down as needed to provide

5 loans, investments, or to defray administrative costs relat6 ed to the establishment of a revolving loan fund.

7 (d) USE OF REVOLVING LOAN FUNDS.—Revolving

8 loan funds established with lines of credit provided under

9 this title may be used to provide technical assistance to

10 private business enterprises and to provide financial as11 sistance in the form of loans, loan guarantees, interest re12 duction assistance, equity shares, and other such forms

13 of assistance to business enterprises in target areas and

14 who are in compliance with section 103(a)(4).

15 SEC. 105. LIMITATIONS ON USE OF FUNDS.

16 (a) MATCHING REQUIREMENT.—Not to exceed 50

17 percent of the total amount to be invested by an entity

18 under this title may be derived from funds made available

19 from a line of credit under this title.

20 (b) TECHNICAL ASSISTANCE AND ADMINISTRA21 TION.—Not to exceed 10 percent of the amounts available

22 from a line of credit under this title shall be used for the

23 provision of training or technical assistance and for the

24 planning, development, and management of economic de25 velopment projects. Community development corporations
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1 shall be encouraged by the Secretary to seek technical as2 sistance from other community development corporations,

3 with expertise in the planning, development and manage4 ment of economic development projects. The Secretary

5 shall assist in the identification and facilitation of such

6 technical assistance.

7 (c) LOCAL AND PRIVATE SECTOR CONTRIBUTIONS.—

8 To receive funds available under a line of credit provided

9 under this title, an entity, using procedures established by

10 the Secretary, shall demonstrate to the community devel11 opment corporation that such entity agrees to provide

12 local and private sector contributions in accordance with

13 section 102(b)(2)(D), will participate with such commu14 nity development corporation in a loan, guarantee or in15 vestment program for a designated business enterprise,

16 and that the total financial commitment to be provided

17 by such entity is at least equal to the amount to be drawn

18 from the line of credit.

19 (d) USE OF PROCEEDS FROM INVESTMENTS.—Pro20 ceeds derived from investments made using funds made

21 available under this title may be used only for the pur22 poses described in section 101 and shall be reinvested in

23 the community in which they were generated.
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1 SEC. 106. PROGRAM PRIORITY FOR SPECIAL EMPHASIS

2 PROGRAMS.

3 (a) IN GENERAL.—The Secretary shall give priority

4 in providing lines of credit under this title to community

5 development corporations that propose to undertake eco6 nomic development activities in distressed communities

7 that target women, Native Americans, at risk youth, farm8 workers, population-losing communities, very low-income

9 communities, single mothers, veterans, and refugees; or

10 that expand employee ownership of private enterprises and

11 small businesses, and to programs providing loans of not

12 more than $35,000 to very small business enterprises.

13 (b) RESERVATION OF FUNDS.—Not less than 5 per14 cent of the amounts made available under section

15 403(a)(2)(A) may be reserved to carry out the activities

16 described in subsection (a).

17 TITLE II—EMERGING COMMU18 NITY DEVELOPMENT COR19 PORATIONS

20 SEC. 201. COMMUNITY DEVELOPMENT CORPORATION IM21 PROVEMENT GRANTS.

22 (a) PURPOSE.—It is the purpose of this section to

23 provide assistance to community development corporations

24 to upgrade the management and operating capacity of

25 such corporations and to enhance the resources available
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1 to enable such corporations to increase their community

2 economic development activities.

3 (b) SKILL ENHANCEMENT GRANTS.—

4 (1) IN GENERAL.—The Secretary shall award

5 grants to community development corporations to

6 enable such corporations to attain or enhance the

7 business management and development skills of the

8 individuals that manage such corporations to enable

9 such corporations to seek the public and private re10 sources necessary to develop community economic

11 development projects.

12 (2) USE OF FUNDS.—A recipient of a grant

13 under paragraph (1) may use amounts received

14 under such grant—

15 (A) to acquire training and technical as16 sistance from agencies or institutions that have

17 extensive experience in the development and

18 management of low-income community eco19 nomic development projects; or

20 (B) to acquire such assistance from other

21 highly successful community development cor22 porations.

23 (c) OPERATING GRANTS.—

24 (1) IN GENERAL.—The Secretary shall award

25 grants to community development corporations to
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1 enable such corporations to support an administra2 tive capacity for the planning, development, and

3 management of low-income community economic de4 velopment projects.

5 (2) USE OF FUNDS.—A recipient of a grant

6 under paragraph (1) may use amounts received

7 under such grant—

8 (A) to conduct evaluations of the feasibility

9 of potential low-income community economic de10 velopment projects that address identified needs

11 in the low-income community and that conform

12 to those projects and activities permitted under

13 title I;

14 (B) to develop a business plan related to

15 such a potential project; or

16 (C) to mobilize resources to be contributed

17 to a planned low-income community economic

18 development project or strategy.

19 (d) APPLICATIONS.—A community development cor20 poration that desires to receive a grant under this section

21 shall prepare and submit to the Secretary an application

22 at such time, in such manner, and containing such infor23 mation as the Secretary may require.

24 (e) AMOUNT AVAILABLE FOR A COMMUNITY DEVEL25 OPMENT CORPORATION.—Amounts provided under this
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1 section to a community development corporation shall not

2 exceed $75,000 per year. Such corporations may apply for

3 grants under this section for up to 3 consecutive years,

4 except that such corporations shall be required to submit

5 a new application for each grant for which such corpora6 tion desires to receive and compete on the basis of such

7 applications in the selection process.

8 SEC. 202. EMERGING COMMUNITY DEVELOPMENT COR9 PORATION REVOLVING LOAN FUNDS.

10 (a) AUTHORITY.—The Secretary is authorized to

11 award grants to emerging community development cor12 porations to enable such corporations to establish, main13 tain or expand revolving loan funds, to make or guarantee

14 loans, or to make capital investments in new or expanding

15 local businesses.

16 (b) ELIGIBILITY.—To be eligible to receive a grant

17 under subsection (a), an entity shall—

18 (1) be a community development corporation;

19 (2) have completed not less than one nor more

20 than two community economic development projects

21 or related projects that improve or provide job and

22 employment opportunities to low-income individuals;

23 (3) prepare and submit to the Secretary an ap24 plication at such time, in such manner, and contain25 ing such information as the Secretary may require,
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1 including a strategic investment plan that identifies

2 and describes the economic characteristics of the

3 target area to be served, the types of business to be

4 assisted using amounts received under the grant and

5 the impact of such assistance on low-income individ6 uals; and

7 (4) have secured one or more commitments

8 from local sources for contributions (either in cash

9 or in kind, letters of credit, or letters of commit10 ment) in an amount that is equal to at least 10 per11 cent of the amounts requested in the application

12 submitted under paragraph (2).

13 (c) USE OF THE REVOLVING LOAN FUND.—

14 (1) IN GENERAL.—A revolving loan fund estab15 lished or maintained with amounts received under

16 this section may be utilized to provide financial and

17 technical assistance, loans, loan guarantees or in18 vestments to private business enterprises to—

19 (A) finance projects intended to provide

20 business and employment opportunities for low21 income individuals and to improve the quality of

22 life in urban and rural areas; and

23 (B) build and expand the capacity of

24 emerging community development corporations

25 and serve the economic needs of local residents.
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1 (2) TECHNICAL ASSISTANCE.—The Secretary

2 shall encourage emerging community development

3 corporations that receive grants under this section to

4 seek technical assistance from established commu5 nity development corporations, with expertise in the

6 planning, development and management of economic

7 development projects and shall facilitate the receipt

8 of such assistance.

9 (3) LIMITATION.—Not to exceed 10 percent of

10 the amounts received under this section by a grantee

11 shall be used for training, technical assistance and

12 administrative purposes.

13 (d) USE OF PROCEEDS FROM INVESTMENTS.—Pro14 ceeds derived from investments made with amounts pro15 vided under this section may be utilized only for the pur16 poses described in this title and shall be reinvested in the

17 community in which they were generated.

18 (e) AMOUNTS AVAILABLE.—Amounts provided under

19 this section to a community development corporation shall

20 not exceed $500,000 per year.

21 TITLE III—RESEARCH AND

22 DEMONSTRATION

23 SEC. 301. RESEARCH AND DEMONSTRATION.

24 (a) GRANTS.—The Secretary shall award grants to

25 organizations to enable such organizations to undertake
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1 programs involving research, testing, studies or dem2 onstrations related to community economic development.

3 (b) ELIGIBLE ORGANIZATIONS.—To be eligible to re4 ceive a grant under this section, an entity shall—

5 (1) be a community development corporation,

6 university, fiscal intermediary or a nonprofit organi7 zation involved in community-based economic devel8 opment activities; and

9 (2) prepare and submit to the Secretary an ap10 plication at such time, in such manner and contain11 ing such information as the Secretary determines

12 appropriate.

13 (c) USE OF FUNDS.—Amounts received under a

14 grant awarded under this section shall be made available

15 for studies, reports, tests or demonstration projects that—

16 (1) identify current problems facing both urban

17 and rural low-income communities or specific popu18 lation groups within low-income communities and

19 population-losing communities;

20 (2) identify solutions to the problems facing

21 both urban and rural low-income communities or

22 specific population groups within low-income com23 munities;
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1 (3) examine or critique current strategies being

2 implemented to address economic issues facing low3 income communities; and

4 (4) relate to any other matters determined ap5 propriate by the Secretary.

6 (d) MAXIMUM AMOUNT OF GRANT.—A grant award7 ed under this section shall not exceed $50,000.

8 TITLE IV—MISCELLANEOUS

9 PROVISIONS

10 SEC. 401. JOINT PROGRAMS.

11 The Secretary shall develop and promulgate, in con12 sultation with the heads of other Federal agencies, regula13 tions designed to permit, where appropriate, the operation

14 of joint programs under which activities supported with

15 assistance provided under this Act are coordinated with

16 community development activities supported with assist17 ance provided under other programs administered by the

18 Secretary and those administered by the heads of such

19 agencies.

20 SEC. 402. REPORTS.

21 (a) COMMUNITY DEVELOPMENT CORPORATIONS.—

22 Not later than 2 years after the date on which assistance

23 is provided to a community development corporation under

24 title I or II, every 2 years thereafter, the community devel25 opment corporation shall prepare and submit to the Sec-
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1 retary a report under this section. Such report shall in2 clude—

3 (1) the amount of funds received by the com4 munity development corporation;

5 (2) a summary of the uses of such funds;

6 (3) the number of jobs created or retained by

7 the corporation;

8 (4) the number and type of new businesses

9 started, including micro-businesses;

10 (5) the number of jobs created or retained for

11 individuals identified in section 103(a)(4);

12 (6) in the case of funds made available under

13 title I, the source and amount of matching funds;

14 (7) in the case of revolving loan funds made

15 available under title II, the amount of funds lever16 aged; and

17 (8) related human services and facilities pro18 vided as result of assistance provided under this Act.

19 (b) SECRETARY.—Not later than 3 years after the

20 date on which assistance is first provided under title I or

21 II, and annually thereafter, the Secretary shall prepare

22 and submit to the Committee on Labor and Human Re23 sources of the Senate and the Committee on Education

24 and Labor of the House of Representatives a report con25 taining a summary of the reports received by the Secretary
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1 under subsection (a) for the period in which the report

2 of the Secretary is submitted.

3 SEC. 403. DEFINITIONS.

4 As used in this Act:

5 (1) COMMUNITY DEVELOPMENT CORPORA6 TION.—The term ‘‘community development corpora7 tion’’ means a private, nonprofit corporation whose

8 board of directors is comprised of business, civic and

9 community leaders, and whose principal purpose in10 cludes the provision of low-income housing or com11 munity economic development projects that primarily

12 benefit low-income individuals and communities.

13 (2) LOCAL AND PRIVATE SECTOR CONTRIBU14 TION.—The term ‘‘local and private sector contribu15 tion’’ means the funds available at the local level (by

16 private financial institutions, State and local govern17 ments) or by any private philanthropic organization

18 and private, nonprofit organizations that will be

19 committed and used solely for the purpose of financ20 ing private business enterprises in conjunction with

21 amounts provided under this Act.

22 (3) POPULATION-LOSING COMMUNITY.—The

23 term ‘‘population-losing community’’ means any

24 county in which the net population loss is at least
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1 7 percent from April 1, 1980 to April 1, 1990, as

2 reported by the Bureau of the Census.

3 (4) PRIVATE BUSINESS ENTERPRISE.—The

4 term ‘‘private business enterprise’’ means any busi5 ness enterprise that is engaged in the manufacture

6 of a product, provision of a service, construction or

7 development of a facility, or that is involved in some

8 other commercial, manufacturing or industrial activ9 ity, and that agrees to target job opportunities stem10 ming from investments authorized under this Act to

11 certain individuals.

12 (5) TARGET AREA.—The term ‘‘target area’’

13 means any area defined in an application for assist14 ance under this Act that has a population whose in15 come does not exceed the median for the area within

16 which the target area is located.

17 (6) VERY LOW-INCOME COMMUNITY.—The term

18 ‘‘very low-income community’’ means a community

19 in which the median income of the residents of such

20 community does not exceed 50 percent of the median

21 income of the area.

22 SEC. 404. AUTHORIZATION OF APPROPRIATIONS.

23 (a) COMMUNITY ECONOMIC PARTNERSHIP INVEST24 MENT FUNDS AND EMERGING COMMUNITY DEVELOP25 MENT CORPORATIONS.—
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1 (1) IN GENERAL.—There are authorized to be

2 appropriated to carry out titles I and II,

3 $40,000,000 for fiscal year 1994, $100,000,000 for

4 fiscal year 1995, and $125,000,000 for fiscal year

5 1996.

6 (2) EARMARKS.—Of the aggregate amount ap7 propriated under paragraph (1) for each fiscal

8 year—

9 (A) 60 percent shall be available to carry

10 out title I; and

11 (B) 40 percent shall be available to carry

12 out title II.

13 (3) AMOUNTS.—Amounts appropriated under

14 paragraph (1) shall remain available for expenditure

15 without fiscal year limitation.

16 (b) RESEARCH AND DEMONSTRATION.—There are

17 authorized to be appropriated to carry out title III such

18 sums as may be necessary for each of the fiscal years 1994

19 through 1996.

20 SEC. 405. PROHIBITION.

21 None of the funds authorized under this Act shall be

22 used to finance the construction of housing.

23 SEC. 406. EFFECTIVE DATE.

24 This Act shall take effect as if included in the Omni25 bus Budget Reconciliation Act of 1990.
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