I

104TH CONGRESS

2D SESSION H. R. 3743

To establish a single authority under title IV of the National Housing Act

for rental and cooperative housing with five or more units and for

health care facilities through consolidation of multifamily programs, authorization of risk sharing programs with private and public entities,

and increased flexibility for FHA to establish program operations; to

make changes to the multifamily housing programs designed for the

elderly and persons with disabilities; to extend certain provisions of

existing law; and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 27, 1996

Mr. LAZIO of New York (by request) introduced the following bill; which was

referred to the Committee on Banking and Financial Services

A BILL

To establish a single authority under title IV of the National

Housing Act for rental and cooperative housing with

five or more units and for health care facilities through

consolidation of multifamily programs, authorization of

risk sharing programs with private and public entities,

and increased flexibility for FHA to establish program

operations; to make changes to the multifamily housing

programs designed for the elderly and persons with disabilities; to extend certain provisions of existing law;

and for other purposes.
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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 AND TABLE OF CONTENTS.

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

5 ‘‘FHA Multifamily Housing Reform Act of 1996’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title and table of contents.

Sec. 2. Implementation.

TITLE I—FHA MULTIFAMILY HOUSING

Sec. 10. Basic authority.

Sec. 11. Labor standards amendment.

Sec. 12. Implementation.

TITLE II—HOUSING FOR SPECIAL POPULATIONS

Sec. 20. Term of rental assistance contracts for supportive housing for the elderly and supportive housing for persons with disabilities.

Sec. 21. Tenant-based assistance for persons with disabilities.

Sec. 22. Environmental protection.

TITLE III—EXTENSIONS OF EXISTING AUTHORITY

Sec. 30. Extension of the section 221(g)(4) auction provisions.

Sec. 31. Extension of transferring excess receipts to the flexible subsidy program.

7 SEC. 2. IMPLEMENTATION.

8 (a) ISSUANCE OF NECESSARY REGULATIONS.—Not9 withstanding 42 U.S.C. 3535(o) or 24 CFR part 10, the

10 Secretary shall issue such regulations as may be necessary

11 to implement any provision of this Act, and any amend12 ment made by this Act, in accordance with section 552

13 or 553 of title 5, United States Code, as determined by

14 the Secretary.

15 (b) USE OF EXISTING RULES.—In implementing any

16 provision of this Act, the Secretary may, in the Secretary’s
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1 discretion, provide for the use of existing rules to the ex2 tent appropriate, without the need for further rulemaking.

3 TITLE I—FHA MULTIFAMILY HOUSING

4 SEC. 10. BASIC AUTHORITY.

5 The National Housing Act is amended by inserting

6 the following new title after title III:

7 ‘‘TITLE IV—CREDIT ENHANCEMENT FOR

8 MULTIFAMILY HOUSING PROJECTS

9 AND HEALTH CARE FACILITIES

10 ‘‘SEC. 401. PURPOSES.

11 ‘‘The purposes of this title are to—

12 ‘‘(1) expand the opportunities for rental hous13 ing and health care facilities through the provision

14 of credit enhancement and related activities;

15 ‘‘(2) address the unmet housing credit needs of

16 American families and communities;

17 ‘‘(3) address the unmet health care facility

18 credit needs of communities;

19 ‘‘(4) supplement and expand private sector ac20 tivity by better serving underserved markets, testing

21 new products, and filling gaps in the provision and

22 delivery of mortgage credit;

23 ‘‘(5) deliver housing credit enhancement and

24 provide other services in a non-discriminatory man-
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1 ner, and carry out activities under this title in a

2 manner that affirmatively furthers fair housing;

3 ‘‘(6) promote liquidity and provide stability to

4 the housing finance market by continuing to provide

5 credit enhancement on a sound basis during times of

6 regional and national economic downturn;

7 ‘‘(7) engage is research, development, and test8 ing of new products designed in expand housing and

9 health care facility credit;

10 ‘‘(8) collect, generate, and make available infor11 mation relevant to the provision of housing and

12 health care facility credit to American families and

13 communities; and

14 ‘‘(9) increase the capacity of localities, States,

15 and for-profit and nonprofit entities to expand ac16 cess to decent housing and health care facilities and

17 to deliver housing credit to American families and

18 communities.

19 ‘‘SEC. 402. DEFINITIONS.

20 ‘‘As used in this title:

21 ‘‘(1) The term ‘credit enhancement’ means to

22 enhance and make commitments to enhance credit,

23 including commitments to lend, insure and reinsure

24 (including insuring and reinsuring pools of mort-
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1 gages), make advances, incur liabilities, pool loans,

2 and risk-share.

3 ‘‘(2) The term ‘first mortgage’ means such

4 classes of first liens as are commonly given to secure

5 advances (including, but not limited to, advances

6 during construction) on, or the unpaid purchase

7 price of, real estate under the laws of the State in

8 which the real estate is located, together with the

9 credit instrument or instruments, if any, secured

10 thereby, and may be in the form of trust mortgages

11 or mortgage indentures or deeds of trust securing

12 notes, bonds, or other credit instruments.

13 ‘‘(3) The term ‘health care facility’ means—

14 ‘‘(A) a facility of integrated health care de15 livery system designed and operated to provide

16 medical, convalescent, skilled nursing, rehabili17 tation, custodial, personal care services, or any

18 combination thereof; and

19 ‘‘(B) a project designed, in whole or in

20 part, to provide a continuum of care, as deter21 mined by the Secretary;

22 that meets standards acceptable to the Secretary, in23 cluding standards governing licensure or State or

24 local approval and regulation of the mortgagor.
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1 ‘‘(4) The term ‘mortgage’ means a first mort2 gage on real estate in fee simple, or on the interest

3 of either the lessor or lessee under a lease with a

4 term at least 20 years longer than the stated matu5 rity of the mortgage indebtedness, and upon which

6 there is located or will be constructed a multifamily

7 housing project or a health care facility.

8 ‘‘(5) The term ‘mortgagee’ means the original

9 lender under a mortgage, and its successors and as10 signs, the includes the holders of credit instruments

11 issued under a trust mortgage or deed of trust pur12 suant to which such holders act by and through a

13 trustee therein named.

14 ‘‘(6) The term ‘mortgagor’ means the original

15 borrower under a mortgage and its successors and

16 assigns, which mortgagor shall be regulated by the

17 Secretary or other entity under this section as re18 quired by the Secretary.

19 ‘‘(7) The term ‘multifamily housing project’

20 means a rental or cooperative housing project com21 prised of five or more dwelling units, including—

22 ‘‘(A) projects designed for single room oc23 cupancy; and

24 ‘‘(B) projects designed, in whole or in part,

25 for occupancy—
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1 ‘‘(i) by elderly persons who are 62

2 years of age or older; or

3 ‘‘(ii) by persons with disabilities;

4 that meet standards acceptable to the Secretary, in5 cluding standards governing regulation of the mort6 gagor and eligibility for occupancy. Occupancy of

7 projects under this paragraph shall be under a writ8 ten lease for a period of at least 30 days, except that

9 in the case of projects designed for single room occu10 pancy, the Secretary may establish shorter rental pe11 riods for individual projects.

12 ‘‘(8) The term ‘qualified housing finance agen13 cy’ means any State or local housing finance agency

14 that—

15 ‘‘(A) carries the designation of ‘top tier’ or

16 its equivalent, as evaluated by Standard and

17 Poors or any other nationally recognized rating

18 agency;

19 ‘‘(B) receives a rating of ‘A’ or better for

20 its general obligation bonds from a nationally

21 recognized rating agency; or

22 ‘‘(C) otherwise demonstrates its capacity

23 as a sound and experienced agency, based on

24 factors such as its experience in financing mul25 tifamily housing projects or health care facili-
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1 ties (as appropriate), fund balances, administra2 tive capabilities, investment policy, internal con3 trols and financial management, portfolio qual4 ity, and State or local support.

5 ‘‘(9) The term ‘qualified participating entity’

6 means the Federal Housing Finance Board, the

7 Federal National Mortgage Association, the Federal

8 Home Loan Mortgage Corporation, a qualified fi9 nancial institution, and other State or local mort10 gage insurance companies or bank lending consortia.

11 ‘‘(10) The term ‘refinancing’ includes the refi12 nancing of any multifamily housing project or health

13 care facility mortgage. To the extent such mortgage

14 refinancings for transactions originally insured

15 under this title are not in excess of the principal

16 amount of the original mortgage loan and such other

17 limitations as may be imposed by the Secretary,

18 such refinancings shall be subject to the provisions

19 of section 223(a)(7).

20 ‘‘(11) The term ‘reinsurance agreement’ means

21 a contractual obligation under which the Secretary,

22 in exchange for appropriate compensation, agrees to

23 assume a specified portion of the risk of loss that a

24 lender or other party has previously assumed with
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1 respect to a mortgage on a multifamily housing

2 project or health care facility.

3 ‘‘(12) The term ‘State’ includes the several

4 States and Puerto Rico, the District of Columbia,

5 Guam, the Northern Mariana Islands, American

6 Samoa, and the Virgin Islands.

7 ‘‘SEC. 403. DIRECT MORTGAGE INSURANCE PROGRAM.

8 ‘‘(a) BASIC AUTHORITY.—

9 ‘‘(1) FIRST MORTGAGES.—The Secretary may

10 insure first mortgages under this section (including

11 advances on such mortgages during construction)

12 which are secured by multifamily housing projects or

13 health care facilities owned by mortgagors approved

14 by the Secretary under terms and conditions accept15 able to the Secretary, and may engage in other types

16 of credit enhancement involving approved mortga17 gees.

18 ‘‘(2) SECOND MORTGAGES.—The Secretary is

19 authorized to insure mortgages in a secondary posi20 tion to a mortgage previously insured under this

21 Act, where such mortgage is necessary, as defined by

22 the Secretary, to better protect the interests of the

23 mortgagee or the Secretary, under terms and condi24 tions approved by the Secretary.
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1 ‘‘(b) DELEGATION.—The Secretary may permit an

2 approved mortgagee to carry out (under a delegation or

3 otherwise, and with or without compensation, but subject

4 to audit, exception, or review requirements) such credit

5 approval, appraisal, inspection, issuance of commitments,

6 approval of insurance of advances, cost certification, en7 dorsement of the mortgage note, servicing, property dis8 position, or other credit enhancement functions as the Sec9 retary shall approve as consistent with the purpose of this

10 title. All appraisals of property for mortgage insurance

11 under this section shall be completed by a Certified Gen12 eral Appraiser in accordance with the Uniform Standards

13 of Professional Appraisal Practice.

14 ‘‘SEC. 404. QUALIFIED PARTICIPATING ENTITY RISK-SHAR15 ING PROGRAM.

16 ‘‘(a) BASIC AUTHORITY.—The Secretary may enter

17 into contractual arrangements (including reinsurance and

18 risk-sharing agreements) with qualified participating enti19 ties to provide credit enhancement for first mortgage loans

20 for affordable multifamily housing projects and health

21 care facilities and other credit enhancement through a sys22 tem of risk-sharing agreements with such entities.

23 ‘‘(b) AUTHORITY OF SECRETARY.—The Secretary,

24 upon request of a qualified participating entity, is author25 ized to permit the qualified participating entity to insure
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1 or reinsure (and make commitments to insure or reinsure)

2 under this section any first mortgage, advance, thereon,

3 or pool of first mortgages otherwise eligible under this sec4 tion, pursuant to a risk-sharing agreement providing that

5 the qualified participating entity will carry out (under a

6 delegation or otherwise, and with or without compensa7 tion, but subject to audit, exception, or review require8 ments) such credit approval, appraisal, inspection, issu9 ance of commitments, approval of insurance of advances,

10 cost certification, endorsement of the mortgage note, serv11 icing, property disposition, or other functions as the Sec12 retary shall approve as consistent with the purpose of this

13 section. All appraisals of property for security property for

14 a loan financed under this section shall be completed by

15 a Certified General Appraiser in accordance with the Uni16 form Standards of Professional Appraisal Practice.

17 ‘‘(c) PROGRAM REQUIREMENTS.—

18 ‘‘(1) ELIGIBILITY STANDARDS.—The Secretary

19 shall establish and enforce standards for eligibility of

20 qualified participating entities under this section, as

21 the Secretary determines to be appropriate.

22 ‘‘(2) MORTGAGE INSURANCE AND REINSUR23 ANCE.—Agreements under this section may provide

24 for—
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1 ‘‘(A) mortgage insurance through the Sec2 retary of first mortgage loans for affordable

3 multifamily housing projects and health care fa4 cilities originated by or through, or purchased

5 by, qualified participating entities; and

6 ‘‘(B) reinsurance, including reinsurance of

7 pools of loans, on affordable multifamily hous8 ing projects and health care facilities.

9 In entering into risk-sharing agreements under this

10 section covering first mortgages, the Secretary may

11 give preference to first mortgages that are not al12 ready in the portfolios of qualified participating enti13 ties.

14 ‘‘(3) RISK APPORTIONMENT.—Agreements en15 tered into under this section between the Secretary

16 and a qualified participating entity shall specify the

17 percentage of loss that each of the parties to the

18 agreement will assume in the event of default of the

19 insured or reinsured affordable multifamily housing

20 project or health care facility first mortgage. Such

21 agreements shall specify that the qualified partici22 pating entity and the Secretary shall share any loss

23 in accordance with the risk-sharing agreement.

24 ‘‘(4) REIMBURSEMENT CAPACITY.—Agreements

25 entered into under this section between the Sec-
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1 retary and a qualified participating entity shall pro2 vide evidence acceptable to the Secretary of the ca3 pacity of such entity to fulfill any reimbursement ob4 ligations made pursuant to this section. Evidence of

5 such capacity may include—

6 ‘‘(A) a pledge of the full faith and credit

7 of a qualified participating entity to fulfill any

8 obligations entered into by the entity;

9 ‘‘(B) reserves pledged or otherwise re10 stricted by the qualified participating entity in

11 an amount equal to an agreed upon percentage

12 of the loss assumed by the entity under para13 graph (3);

14 ‘‘(C) funds pledged through a State or

15 local guarantee fund; or

16 ‘‘(D) any other form of evidence mutually

17 agreed upon by the Secretary and the qualified

18 participating entity.

19 ‘‘(5) UNDERWRITING STANDARDS.—

20 ‘‘(A) USE OF ENTITY’S UNDERWRITING

21 STANDARDS.—Except as provided by subpara22 graph (B), the Secretary may permit any quali23 fied participating entity to use its own under24 writing standards and loan terms and condi25 tions for purposes of underwriting first mort-
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1 gage loans to be insured under this section,

2 without further review by the Secretary: Pro3 vided, That the qualified participating entity

4 shall certify that it has complied with all appli5 cable statutes and requirements of the Sec6 retary.

7 ‘‘(B) FEDERAL UNDERWRITING STAND8 ARDS.—The Secretary may impose additional or

9 different underwriting criteria and loan terms

10 and conditions for contractual agreements for

11 risk-sharing where the Secretary retains more

12 than 50 percent of the risk of loss. Any other

13 financing permitted on security property for a

14 loan financed under this section shall be ex15 pressly subordinate to the first mortgage cover16 ing the security property.

17 ‘‘(d) RISK-SHARING ALTERNATIVES.—

18 ‘‘(1) DEVELOPMENT OF ALTERNATIVES.—The

19 Secretary may develop a variety of risk-sharing al20 ternatives, including arrangements under which the

21 Secretary assumes an appropriate share of the risk

22 related to long-term first mortgage loans on newly

23 constructed or acquired multifamily rental housing

24 projects and health care facilities, first mortgage

25 refinancings, bridge financing for construction under
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1 a first mortgage loan, and other forms of multifam2 ily housing project and health care facility first

3 mortgage lending and other credit enhancement that

4 the Secretary deems appropriate to carry out the

5 purposes of this section.

6 ‘‘(2) NATURE OF ALTERNATIVES.—Alternatives

7 under paragraph (1) shall be designed—

8 ‘‘(A) to ensure that other parties bear a

9 share of the risk, in percentage amount and in

10 position of exposure, that is sufficient to create

11 strong market-oriented incentives for other par12 ticipating parties to maintain sound underwrit13 ing and loan management practices;

14 ‘‘(B) to develop credit mechanisms, includ15 ing sound underwriting criteria, processing

16 methods, and credit enhancements, through

17 which the Secretary can assist in increasing

18 multifamily housing project and health care fa19 cility first mortgage lending as needed to meet

20 the expected need in the United States;

21 ‘‘(C) to provide a more adequate supply of

22 first mortgage credit for sound multifamily

23 rental housing and health care facility projects

24 in underserved urban and rural markets;
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1 ‘‘(D) to increase the efficiency, and lower

2 the costs to the Federal Government, of proc3 essing and servicing multifamily housing project

4 and health care facility first mortgage loans in5 sured by the Secretary; and

6 ‘‘(E) to improve the quality and expertise

7 of staff and of the Department of Housing and

8 Urban Development and other resources, as re9 quired for sound management of reinsurance

10 and other market-oriented forms of credit en11 hancement.

12 ‘‘(e) NON-FEDERAL PARTICIPATION.—The Secretary

13 shall carry out this section, to the maximum extent prac14 ticable, with the participation of well-established residen15 tial mortgage originators, financial institutions that invest

16 in multifamily housing project and health care facility

17 mortgages, multifamily housing project and health care fa18 cility sponsors, and such other private sector experts in

19 multifamily housing project and health care facility financ20 ing as the Secretary determines to be appropriate.

21 ‘‘(f) QUALIFICATION AS AFFORDABLE HOUSING.—

22 Multifamily housing projects securing loans insured or re23 insured under this section shall qualify as affordable, only

24 if the housing is occupied by families, elderly persons, or

25 persons with disabilities, and bears rents not greater than
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1 the gross rent for rent-restricted residential units, as de2 termined under section 42(g) of the Internal Revenue

3 Code of 1986.

4 ‘‘SEC. 405. HOUSING FINANCE AGENCY PROGRAM.

5 ‘‘(a) BASIC AUTHORITY.—The Secretary may enter

6 into contractual arrangements (including risk-sharing

7 agreements with partnerships) with qualified housing fi8 nance agencies (including entities established by States

9 that provide mortgage insurance) to provide Federal credit

10 enhancement for first mortgage loans for affordable multi11 family housing projects and health care facilities through

12 a system of risk-sharing agreements with such agencies.

13 ‘‘(b) AUTHORITY OF THE SECRETARY.—The Sec14 retary, upon request of a qualified housing finance agency,

15 may insure on a risk-sharing basis, and make commit16 ments to insure on a risk-sharing basis, under this section

17 any first mortgage, or advance thereon, pursuant to a

18 risk-sharing agreement providing that the qualified hous19 ing finance agency will carry out (under a delegation or

20 otherwise and with or without compensation, but subject

21 to audit, exception or review requirements) such credit ap22 proval, appraisal, inspection, issuance of commitments,

23 approval of insurance of advances, cost certification, en24 dorsement of the mortgage, servicing, property disposition,

25 or other functions as the Secretary shall approve as con-
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1 sistent with the purpose of this section. All appraisals of

2 property for first mortgage insurance under this section

3 shall be completed by a Certified General Appraiser in ac4 cordance with the Uniform standards of Professional Ap5 praisal Practice.

6 ‘‘(c) MORTGAGE INSURANCE PREMIUMS.—The Sec7 retary shall establish a schedule of insurance premium

8 payments for first mortgages insured under this section

9 based on the percentage of loss the Secretary may assume.

10 Such schedule shall reflect a greater portion of the pre11 mium inuring to qualified housing finance agencies that

12 assume a greater share of the risk apportioned according

13 to subsection (d)(2).

14 ‘‘(d) PROGRAM REQUIREMENTS.—

15 ‘‘(1) MORTGAGE INSURANCE.—Agreements

16 under subsection (a) shall provide for full first mort17 gage insurance through the Secretary of the loans

18 for affordable multifamily housing projects and

19 health care facilities originated by or through quali20 fied housing finance agencies and for reimbursement

21 to the Secretary by such agencies for all or a portion

22 of the losses incurred on the first mortgage loans in23 sured.

24 ‘‘(2) RISK APPORTIONMENT.—Agreements en25 tered into under this section between the Secretary
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1 and a qualified housing finance agency shall specify

2 the percentage of loss that each of the parties to the

3 agreement will assume in the event of default of the

4 insured first mortgage on the affordable multifamily

5 project or health care facility. Such agreements shall

6 specify that the qualified housing finance agency and

7 the Secretary shall share any loss in accordance with

8 the risk-sharing agreement.

9 ‘‘(3) REIMBURSEMENT CAPACITY.—Agreements

10 entered into under this section between the Sec11 retary and a qualified housing finance agency shall

12 provide evidence of the capacity of such agency to

13 fulfill any reimbursement obligations made pursuant

14 to this section. Evidence of such capacity may in15 clude—

16 ‘‘(A) a pledge of the full faith and credit

17 of a qualified State or local agency to fulfill any

18 obligations entered into by the qualified housing

19 finance agency;

20 ‘‘(B) reserves pledged or otherwise re21 stricted by the qualified housing finance agency

22 in an amount equal to an agreed upon percent23 age of the loss assumed by the housing finance

24 agency under paragraph (2);
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1 ‘‘(C) funds pledged through a State or

2 local guarantee fund; or

3 ‘‘(D) any other form of evidence mutually

4 agreed upon by the Secretary and the qualified

5 housing finance agency.

6 ‘‘(e) UNDERWRITING STANDARDS.—

7 ‘‘(1) USE OF HFA UNDERWRITING STAND8 ARDS.—The Secretary may permit a qualified hous9 ing finance agency to use its own underwriting

10 standards and loan terms and conditions for pur11 poses of underwriting first mortgage loans to be in12 sured under this section without further review by

13 the Secretary: Provided, That the qualified housing

14 agency certifies that it has complied with all applica15 ble statutes and requirements of the Secretary.

16 ‘‘(2) USE OF FEDERAL UNDERWRITING STAND17 ARDS.—The Secretary may impose additional or dif18 ferent underwriting criteria and loan terms and con19 ditions for contractual agreements where the Sec20 retary retains more than 50 percent of the risk of

21 loss.

22 ‘‘(f) IDENTITY OF INTEREST.—Notwithstanding any

23 other provision of law, the Secretary may not apply iden24 tity of interest provisions to agreements entered into with
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1 qualified State housing finance agencies under this sec2 tion.

3 ‘‘(g) QUALIFICATION AS AFFORDABLE HOUSING.—

4 Multifamily housing projects securing loans insured under

5 this section shall qualify as affordable only if the housing

6 is occupied by families, elderly persons, or persons with

7 disabilities, and bears rents not greater than the gross

8 rent for rent-restricted residential projects, as determined

9 under section 42(g) of the Internal Revenue Code of 1986.

10 ‘‘SEC. 406. PREMIUMS AND FEES.

11 ‘‘The Secretary shall establish and collect such pre12 miums and fees under this title as the Secretary deter13 mines appropriate to compensate for the risks assumed

14 and related administrative costs of providing insurance,

15 reinsurance, or other credit enhancement under this title.

16 ‘‘SEC. 407. CONTRACT OF MORTGAGE INSURANCE.

17 ‘‘(a) IN GENERAL.—All contracts of mortgage insur18 ance under this title shall—

19 ‘‘(1) be evidenced by the endorsement of the

20 mortgage note for insurance or reinsurance, and

21 shall be incontestable when held by an approved

22 mortgagee to the extent provided in section 203(e);

23 and

24 ‘‘(2) be subject to, and obligations of, the Gen25 eral Insurance Fund established under section 519.
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1 ‘‘(b) UNIFORM CLAIMS SETTLEMENT.—

2 ‘‘(1) IN GENERAL.—The Secretary shall have

3 the discretion to establish uniform systems and to

4 settle claims for benefits under the contract of mort5 gage insurance thereunder in any manner consistent

6 with, and not exceeding, the current statutory au7 thority of sections 207 (g) through (j), 520, and

8 541.

9 ‘‘(2) PARTIAL PAYMENT OF CLAIMS.—For par10 tial payments of claims under this title pursuant to

11 section 541, the Secretary may require a mortga12 gee—

13 ‘‘(A) to accept a partial payment of claim

14 for all such claims; and

15 ‘‘(B) to accept a partial payment of insur16 ance benefits in order to avert a claim where

17 such claim is inevitable, regardless of whether a

18 monetary default has occurred.

19 ‘‘SEC. 408. DEFAULT AND CLAIMS UNDER CONTRACT OF

20 MORTGAGE INSURANCE.

21 ‘‘(a) IN GENERAL.—If a mortgagor fails to make any

22 payment due, or provided to be paid by the terms of a

23 mortgage insured, under this section, such failure shall be

24 a default under the mortgage. If the default continues for

25 a period of 30 days, the mortgagee shall be entitled to
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1 receive the benefits of the insurance provided by the Sec2 retary under this section.

3 ‘‘(b) CLAIMS REQUIREMENTS.—

4 ‘‘(1) IN GENERAL.—The Secretary shall issue

5 requirements under subsection (a). These require6 ments may be changed from time to time to accom7 modate advances in technology, including those re8 lated to electronic transfers and filings. The require9 ments shall establish procedures under which the

10 mortgagee shall be required to assign, transfer, and

11 deliver to the Secretary—

12 ‘‘(A) the mortgage so in default and all

13 rights and interests arising thereunder;

14 ‘‘(B) all claims of the mortgagee against

15 the mortgagor or others, arising out of the

16 mortgage transactions;

17 ‘‘(C) all policies of title or other insurance

18 or surety bonds or other guaranties and any

19 and all claims thereunder;

20 ‘‘(D) any balance of the mortgage loan not

21 advanced to the mortgagor;

22 ‘‘(E) any cash, property, or other assets

23 (such as receivables) held by the mortgagee, or

24 to which the mortgagee is entitled to hold or re25 ceive for the account of the mortgagor or as ex-
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1 cess proceeds arising out of the mortgage or

2 underlying bond transaction and which have not

3 been applied in reduction of the principal

4 amount of the mortgage indebtedness; and

5 ‘‘(F) all records, documents, books, papers,

6 and accounts relating to the mortgage trans7 action.

8 ‘‘(2) OPTIONAL PROCEDURE.—If a mortgagor

9 defaults under a mortgage insured under section

10 403, the Secretary may permit the mortgagee to ex11 ercise the option, pursuant to procedures established

12 by the Secretary, of foreclosing upon the security

13 property and obtaining title, or obtaining title

14 through deed-in-lieu of foreclosure, or otherwise, and

15 conveying title to the Secretary. A mortgagee exer16 cising the option under this paragraph shall comply

17 with the requirements of paragraph (1), except sub18 paragraphs (A) and (D).

19 ‘‘(c) TERMINATION OF MIP OBLIGATION.—After re20 ceipt of an application for insurance benefits under this

21 title, the Secretary is authorized to terminate the obliga22 tion of the mortgagee to pay mortgage insurance premium

23 charges.

24 ‘‘(d) AMOUNT OF CLAIM.—The total amount of any

25 payout under an insurance claim under this title may not
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1 exceed the amount which the mortgagee would have re2 ceived if the mortgage indebtedness and any other fiscal

3 obligations under the mortgage had been fully satisfied on

4 the date of the assignment of the claim or the conveyance

5 of title, plus interest and necessary expenses incurred by

6 the mortgagee in connection with the claim and preserva7 tion of the project, if applicable, as determined by the Sec8 retary, and in accordance with any contract involving risk9 sharing.

10 ‘‘(e) ACQUISITION OF POSSESSION OR TITLE.—The

11 Secretary may, through foreclosure or otherwise, acquire

12 possession of, or title to, any property covered by a mort13 gage assigned to the Secretary under this title.

14 ‘‘(f) POWERS OF SECRETARY.—

15 ‘‘(1) WITH RESPECT TO PROPERTY.—Notwith16 standing any other provisions of law relating to the

17 acquisition, handling, or disposal of real and other

18 property by the United States, the Secretary, in the

19 Secretary’s discretion and for the protection of the

20 General Insurance Fund, may—

21 ‘‘(A) pay out of such Fund any expenses

22 or charges in connection with the preservation

23 of any security property under this title;

24 ‘‘(B) deal with, complete, reconstruct, rent,

25 renovate, modernize, insure, make contracts for
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1 the management of any property acquired

2 under this title;

3 ‘‘(C) establish suitable agencies for the

4 management or lease of any property acquired

5 under this title; and

6 ‘‘(D) sell or lease any real or personal

7 property (including mortgages) acquired under

8 this title.

9 ‘‘(2) WITH RESPECT TO MORTGAGES.—Not10 withstanding any other provision of law, the Sec11 retary may pursue to final collection, by way of com12 promise or otherwise, obligations under mortgages

13 assigned under this title and all claims in connection

14 with any other transactions, under this title.

15 ‘‘SEC. 409. ADJUSTED PREMIUM CHARGE UPON PREPAY16 MENT.

17 ‘‘If the principal obligation of any mortgage accepted

18 for insurance or reinsurance under this title is paid in full

19 before the maturity date, the Secretary may require the

20 mortgagee to pay an adjusted premium charge in such

21 amount as the Secretary determines to be equitable, but

22 not in excess of the aggregate amount of the premium

23 charges that the mortgagee would otherwise have been re24 quired to pay if the mortgage had continued to be insured

25 until such maturity date.
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1 ‘‘SEC. 410. ENVIRONMENTAL REVIEW.

2 ‘‘(a) IN GENERAL.—In order to assure that the poli3 cies of the National Environmental Policy Act of 1969 and

4 other provisions of law which further the purposes of such

5 Act (as specified in regulations issued by the Secretary)

6 are most effectively implemented in connection with credit

7 enhancement under this title, and to assure to the public

8 undiminished protection of the environment, the Secretary

9 may, under such regulations, in lieu of the environmental

10 protection procedures otherwise applicable, provide for

11 agreements to endorse for insurance mortgages under this

12 title upon the request of the mortgagee, qualified entity,

13 or qualified housing finance agency, if the State or unit

14 of general local government, as designated by the Sec15 retary in accordance with regulations, assumes all of the

16 responsibilities for environmental review, decision making,

17 and action pursuant to such Act, and such other provi18 sions of law as the regulations of the Secretary may speci19 fy, that would otherwise apply to the Secretary with re20 spect to the insurance of mortgages on particular prop21 erties. For purposes of this subsection, the terms ‘unit of

22 general local government’ and ‘State’ have the same mean23 ings as in section 102(a) of the Housing and Community

24 Development Act of 1974.

25 ‘‘(b) IMPLEMENTATION.—The Secretary shall issue

26 regulations to carry out this section only after consultation
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1 with the Council on Environmental Quality. Such regula2 tions shall, among other matters, provide—

3 ‘‘(1) for the monitoring of the performance of

4 environmental reviews under this subparagraph;

5 ‘‘(2) subject to the discretion of the Secretary,

6 for the provision or facilitation of training for such

7 performance; and

8 ‘‘(3) subject to the discretion of the Secretary,

9 for the suspension or termination by the Secretary

10 of the State or unit of general local government’s re11 sponsibilities under subsection (a).

12 ‘‘(c) SAVINGS.—The Secretary’s duty under sub13 section (b) shall not be construed to limit any responsibil14 ity assumed by a State or unit of general local government

15 with respect to any particular property under subsection

16 (a).

17 ‘‘(d) PROCEDURE.—The Secretary shall approve a

18 mortgage for the provision of mortgage insurance subject

19 to the procedures authorized by this section only if, not

20 less than 30 days before such approval, before any ap21 proval, commitment, or endorsement of mortgage insur22 ance on the property by or on behalf of the Secretary, and

23 before any agreement by a qualified entity or a qualified

24 housing finance agency to provide financing under a risk25 sharing agreement with respect to the property, the mort-
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1 gagee or the qualified participating entity or the qualified

2 housing finance agency submits to the Secretary a request

3 for such approval, accompanied by a certification of the

4 State or unit of general local government that meets the

5 requirements of subsection (e). The Secretary’s approval

6 of any such certification shall be deemed to satisfy the

7 Secretary’s responsibilities under the National Environ8 mental Policy Act of 1969 and such other provisions of

9 law as the regulations of the Secretary specify insofar as

10 those responsibilities relate to the provision of mortgage

11 insurance on the property that is covered by such certifi12 cation.

13 ‘‘(e) CERTIFICATION.—A certification under the pro14 cedures authorized by this subsection shall—

15 ‘‘(1) be in a form acceptable to the Secretary;

16 ‘‘(2) be executed by the chief executive officer

17 or other officer of the State or unit of general local

18 government who qualifies under regulations of the

19 Secretary;

20 ‘‘(3) specify that the State or unit of general

21 local government under this section has fully carried

22 out its responsibilities as described under subsection

23 (a); and

24 ‘‘(4) specify that the certifying officer consents

25 to assume the status of a responsible Federal official
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1 under the National Environmental Policy Act of

2 1969 and under each provision of law specified in

3 regulations issued by the Secretary insofar as the

4 provisions of such Act or such other provisions of

5 law apply pursuant to subsection (a), and is author6 ized and consents on behalf of the State or unit of

7 general local government and himself or herself to

8 accept the jurisdiction of the Federal courts for the

9 purpose of enforcement of the responsibilities as

10 such an official.

11 ‘‘(f) APPROVAL BY STATES.—If a unit of general

12 local government carries out the responsibilities described

13 in subsection (a), the Secretary may permit the State to

14 perform those actions of the Secretary described in sub15 section (a) and the performance of such actions by the

16 State, where permitted by the Secretary, shall be deemed

17 to satisfy the Secretary’s responsibilities referred to in the

18 second sentence of clause (ii).

19 ‘‘SEC. 411. LEAD-BASED PAINT POISONING PREVENTION.

20 ‘‘In carrying out the requirements of section 302 of

21 the Lead-Based Paint Poisoning Prevention Act, the Sec22 retary may provide in regulations for the assumption of

23 all or part of the Secretary’s duties under such Act by

24 a State or unit of general local government for purposes

25 of this title.
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1 ‘‘SEC. 412. SUBSIDY LAYERING.

2 ‘‘Section 102 of the Department of Housing and

3 Urban Development Reform Act of 1989 shall not apply

4 to any type of insurance, reinsurance, or other credit en5 hancement under this title.

6 ‘‘SEC. 413. LABOR STANDARDS AND COST CERTIFICATION.

7 ‘‘This title shall be subject to the labor standards set

8 forth in section 212 and the cost certification standards

9 set forth in section 227.

10 ‘‘SEC. 414. DISCLOSURE OF RECORDS.

11 ‘‘Mortgagees under section 403, qualified participat12 ing entities under section 404, and qualified housing fi13 nance agencies under section 405 shall make available to

14 the Secretary or the Secretary’s designee, at the Sec15 retary’s request, such financial and other records as the

16 Secretary deems necessary for purposes of review and

17 monitoring under this title.’’.

18 SEC. 11. LABOR STANDARDS AMENDMENT.

19 Section 212(a) of the National Housing Act is

20 amended—

21 (1) by striking ‘‘or section 210’’ in the first

22 sentence; and

23 (2) by inserting after the first sentence the fol24 lowing new sentence: ‘‘The provisions of this section

25 shall also apply to the insurance of any mortgage
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1 under title IV, except that the provisions of this sec2 tion shall not apply to—

3 ‘‘(1) the insurance of any mortgage that would

4 have been eligible for insurance under regulations of

5 the Secretary implementing section 223(f) of this

6 Act, as that section and those regulations existed

7 immediately before the enactment of the FHA Multi8 family Housing Reform Act of 1996; and

9 ‘‘(2) work performed by any individual who—

10 ‘‘(A) volunteers—

11 ‘‘(i) to perform a service for civic,

12 charitable, or humanitarian reasons, with13 out promise, expectation, or receipt of com14 pensation for services rendered, but solely

15 for the personal purpose or pleasure of the

16 individual; and

17 ‘‘(ii) to provide such services freely

18 and without pressure or coercion, direct or

19 implied, from any employer; and

20 ‘‘(B) is not otherwise employed at any time

21 in the construction work.’’.

22 SEC. 12. IMPLEMENTATION.

23 (a) EFFECTIVE DATE.—The provisions of, and the

24 amendments made by, this part shall become effective
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1 upon implementation by the Secretary in accordance with

2 this section.

3 (b) ADMINISTRATIVE IMPLEMENTATION.—Except as

4 otherwise specifically provided by title IV of the National

5 Housing Act (as added by section 10), the Secretary shall

6 take any administrative actions necessary to implement

7 the provisions of, and the amendments made by, this part.

8 The Secretary shall complete the initial implementation of

9 such provisions and amendments within 180 days of the

10 date of enactment of this Act.

11 (c) TERMINATION OF INSURING AUTHORITY.—

12 (1) IN GENERAL.—Effective on the date of im13 plementation of this part, the Secretary may not ac14 cept applications or issue firm commitments under

15 any authority of title II of the National Housing Act

16 providing for the insurance of mortgages covering

17 multifamily rental housing or health care facilities

18 (as determined by the Secretary).

19 (2) EXCEPTIONS.—Paragraph (1) shall not

20 apply to—

21 (A) refinancings pursuant to section

22 223(a)(7) of the National Housing Act;

23 (B) extension of firm commitments entered

24 into before such date of implementation, but
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1 only if the Secretary determines there is good

2 cause for an extension; or

3 (C) outstanding applications not having re4 ceived a firm commitment if unusual equitable

5 considerations are present.

6 TITLE II—HOUSING FOR SPECIAL

7 POPULATIONS

8 SEC. 20. TERM OF RENTAL ASSISTANCE CONTRACTS FOR

9 SUPPORTIVE HOUSING FOR THE ELDERLY

10 AND SUPPORTIVE HOUSING FOR PERSONS

11 WITH DISABILITIES.

12 (a) SUPPORTIVE HOUSING FOR THE ELDERLY.—The

13 first sentence of section 202(d)(2) of the Housing Act of

14 1959 is amended by striking ‘‘240’’ and inserting ‘‘60’’.

15 (b) SUPPORTIVE HOUSING FOR PERSONS WITH DIS16 ABILITIES.—The first sentence of section 811(e)(2) of the

17 Cranston-Gonzalez National Affordable Housing Act is

18 amended by striking ‘‘240’’ and inserting ‘‘60’’.

19 SEC. 21. TENANT-BASED ASSISTANCE FOR PERSONS WITH

20 DISABILITIES.

21 (a) ELIGIBLE ENTITIES.—Section 811(d)(4) of the

22 Cranston-Gonzalez National Affordable Housing Act is

23 amended—

24 (1) by striking the first sentence and inserting

25 the following: ‘‘Tenant-based rental assistance pro-
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1 vided under subsection (b)(1) may be provided

2 through private nonprofit organizations and public

3 housing agencies. A public housing agency shall be

4 eligible to apply under this section only for the pur5 poses of providing such assistance.’’; and

6 (2) by striking the last sentence.

7 (b) DEFINITION OF PRIVATE NONPROFIT ORGANIZA8 TION.—Section 811(k)(6)(A) of such Act is amended to

9 read as follows:

10 ‘‘(A) that has received tax-exempt status

11 under paragraph (3) or (4) of section 501(c) of

12 the Internal Revenue Code of 1986;’’.

13 (c) FUNDING SET-ASIDE.—Section 811(l)(1) of such

14 Act is amended to read as follows:

15 ‘‘(1) ALLOCATION OF FUNDS FOR TENANT16 BASED ASSISTANCE.—Of any amount made available

17 for assistance under this section in any fiscal year,

18 the Secretary may use up to 25 percent for tenant19 based assistance under subsection (b)(1).’’.

20 SEC. 22. ENVIRONMENTAL PROTECTION.

21 (a) SUPPORTIVE HOUSING FOR THE ELDERLY.—Sec22 tion 202 of the Housing Act of 1959 is amended by adding

23 at the end the following new subsection:

24 ‘‘(k) ENVIRONMENTAL PROTECTION.—
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1 ‘‘(1) PURPOSE.—The purpose of this subsection

2 is to authorize a procedure for the assumption of en3 vironmental review responsibilities of the Secretary

4 by States and units of general local government in

5 connection with capital advances provided under this

6 section. This procedure shall be designed to en7 sure—

8 ‘‘(A) that the policies of the National Envi9 ronmental Policy Act of 1969 and other provi10 sions of law which further the purposes of such

11 Act (as specified by the Secretary) are most ef12 fectively implemented in connection with the

13 provision of such assistance; and

14 ‘‘(B) undiminished protection of the envi15 ronment to the public.

16 ‘‘(2) BASIC AUTHORITY.—The Secretary may,

17 in lieu of the environmental protection procedures

18 otherwise applicable and in accordance with the pro19 visions of this subsection, provide for the release of

20 funds for particular projects or activities upon the

21 request of a recipient of the assistance, if the State

22 or unit of general local government, as designated by

23 the Secretary, assumes all of the responsibilities for

24 environmental review, decisionmaking, and action

25 pursuant to the Act and the other provisions of law
37

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1 referred to in paragraph (1) that would otherwise

2 apply to the Secretary in connection with the provi3 sion of capital grant assistance to such projects or

4 activities.

5 ‘‘(3) PROCEDURE.—The Secretary shall ap6 prove the release of funds for projects or activities

7 subject to the procedures authorized by this sub8 section only if the recipient submits to the Secretary

9 a request for such release—

10 ‘‘(A) not less than 15 days before such re11 lease, except that this paragraph shall not apply

12 in the case of a project or activity proposed in

13 an area covered by a declaration by the Presi14 dent of a major disaster or emergency under

15 the Robert T. Stafford Disaster Relief and

16 Emergency Assistance Act; and

17 ‘‘(B) before any commitment of funds or

18 other assistance for such projects (other than

19 for environmental studies and such other pur20 poses as the Secretary shall specify, consistent

21 with the Act and the other provisions of law re22 ferred to in paragraph (1)).

23 The request for release shall be accompanied by a

24 certification by the State or unit of general local

25 government which meets the requirements of para-
38

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1 graph (5). The Secretary’s approval of any such cer2 tification shall be deemed to satisfy the Secretary’s

3 responsibilities under the Act and the other provi4 sions of law referred to in paragraph (1), insofar as

5 those responsibilities relate to the provision of cap6 ital grant assistance for projects to be carried out

7 pursuant thereto which are covered by the certifi8 cation.

9 ‘‘(4) CERTIFICATION.—A certification under the

10 procedures authorized by this subsection shall—

11 ‘‘(A) be in a form acceptable to the Sec12 retary;

13 ‘‘(B) be executed by the chief executive of14 ficer or other officer of the State or unit of gen15 eral local government who qualifies as the cer16 tifying officer as determined by the Secretary;

17 ‘‘(C) specify that the State or unit of gen18 eral local government has fully carried out its

19 responsibilities, as described in paragraph (2);

20 and

21 ‘‘(D) specify that the certifying officer—

22 ‘‘(i) consents to assume the status of

23 a responsible Federal official under the Act

24 and the other provisions of law referred to

25 in paragraph (1), insofar as the provisions
39

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1 of the Act or the other provisions of law

2 apply pursuant to paragraph (1); and

3 ‘‘(ii) is authorized and consents on be4 half of the State or unit of general local

5 government himself or herself to accept the

6 jurisdiction of the Federal courts for the

7 purpose of enforcement of the responsibil8 ities as such an official.

9 ‘‘(5) APPROVAL BY STATES.—If a unit of gen10 eral local government carries out the responsibilities

11 described in paragraph (4), the Secretary may per12 mit the State to perform those actions of the Sec13 retary described in paragraph (3). The performance

14 of such actions by the State shall be deemed to sat15 isfy the Secretary’s responsibilities referred to in the

16 last sentence of paragraph (3).

17 ‘‘(6) IMPLEMENTATION.—

18 ‘‘(A) The Secretary shall implement this

19 subsection after consultation with the Council

20 on Environmental Quality. The implementation

21 shall include provision—

22 ‘‘(i) for monitoring of the performance

23 of environmental reviews under this sub24 section;
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1 ‘‘(ii) in the discretion of the Secretary,

2 for the provision or facilitation of training

3 for such performance;

4 ‘‘(iii) in the discretion of the Sec5 retary, for suspension or termination by

6 the Secretary of the assumption under

7 paragraph (1); and

8 ‘‘(iv) in the discretion of the Sec9 retary, for the imposition of appropriate

10 sanctions for failure to comply with re11 sponsibilities assumed under this sub12 section, including the denial, withdrawal,

13 reduction, or abatement of assistance.

14 ‘‘(B) The Secretary’s duty under subpara15 graph (A) shall not be construed to limit or re16 duce any responsibility assumed by a State or

17 unit of general local government with respect to

18 any particular project under this subsection.’’.

19 (b) SUPPORTIVE HOUSING FOR PERSONS WITH DIS20 ABILITIES.—Section 811 of the Cranston-Gonzalez Na21 tional Affordable Housing Act is amended by adding at

22 the end the following new subsection:

23 ‘‘(n) ENVIRONMENTAL PROTECTION.—

24 ‘‘(1) PURPOSE.—The purpose of this subsection

25 is to authorize a procedure for the assumption of en-
41

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1 vironmental review responsibilities of the Secretary

2 by States and units of general local government in

3 connection with assistance provided under subsection

4 (b)(2). This procedure shall be designed to ensure—

5 ‘‘(A) that the policies of the National Envi6 ronmental Policy Act of 1969 and other provi7 sions of law which further the purposes of such

8 Act (as specified by the Secretary) are most ef9 fectively implemented in connection with the

10 provision of such assistance; and

11 ‘‘(B) undiminished protection of the envi12 ronment to the public.

13 ‘‘(2) BASIC AUTHORITY.—The Secretary may,

14 in lieu of the environmental protection procedures

15 otherwise applicable and in accordance with the pro16 visions of this subsection, provide for the release of

17 funds for particular projects or activities upon the

18 request of a recipient of the assistance, if the State

19 or unit of general local government, as designated by

20 the Secretary, assumes all of the responsibilities for

21 environmental review, decisionmaking, and action

22 pursuant to the Act and the other provisions of law

23 referred to in paragraph (1) that would otherwise

24 apply to the Secretary in connection with the provi25 sion of assistance to such projects or activities.
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1 ‘‘(3) PROCEDURE.—The Secretary shall approve

2 the release of funds for projects or activities subject

3 to the procedures authorized by this subsection only

4 if the recipient submits to the Secretary a request

5 for such release—

6 ‘‘(A) not less than 15 days before such re7 lease, except that this paragraph shall not apply

8 in the case of a project or activity proposed in

9 an area covered by a declaration by the Presi10 dent of a major disaster or emergency under

11 the Robert T. Stafford Disaster Relief and

12 Emergency Assistance Act; and

13 ‘‘(B) before any commitment of funds or

14 other assistance for such projects (other than

15 for environmental studies and such other pur16 poses as the Secretary shall specify, consistent

17 with the Act and the other provisions of law re18 ferred to in paragraph (1)).

19 The request for release shall be accompanied by a

20 certification by the State or unit of general local

21 government which meets the requirements of para22 graph (5). The Secretary’s approval of any such cer23 tification shall be deemed to satisfy the Secretary’s

24 responsibilities under the Act and the other provi25 sions of law referred to in paragraph (1), insofar as
43

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1 those responsibilities relate to the provision of assist2 ance for projects to be carried out pursuant thereto

3 which are covered by the certification.

4 ‘‘(4) CERTIFICATION.—A certification under the

5 procedures authorized by this subsection shall—

6 ‘‘(A) be in a form acceptable to the Sec7 retary;

8 ‘‘(B) be executed by the chief executive of9 ficer or other officer of the State or unit of gen10 eral local government who qualifies as the cer11 tifying officer as determined by the Secretary;

12 ‘‘(C) specify that the State or unit of gen13 eral local government has fully carried out its

14 responsibilities, as described in paragraph (2);

15 and

16 ‘‘(D) specify that the certifying officer—

17 ‘‘(i) consents to assume the status of

18 a responsible Federal official under the Act

19 and the other provisions of law referred to

20 in paragraph (1), insofar as the provisions

21 of the Act or the other provisions of law

22 apply pursuant to paragraph (1); and

23 ‘‘(ii) is authorized and consents on be24 half of the State or unit of general local

25 government himself or herself to accept the
44

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1 jurisdiction of the Federal courts for the

2 purpose of enforcement of the responsibil3 ities as such an official.

4 ‘‘(5) APPROVAL BY STATES.—If a unit of gen5 eral local government carries out the responsibilities

6 described in paragraph (4), the Secretary may per7 mit the State to perform those actions of the Sec8 retary described in paragraph (3). The performance

9 of such actions by the State shall be deemed to sat10 isfy the Secretary’s responsibilities referred to in the

11 last sentence of paragraph (3).

12 ‘‘(6) IMPLEMENTATION.—

13 ‘‘(A) The Secretary shall implement this

14 subsection after consultation with the Council

15 on Environmental Quality. The implementation

16 shall include provision—

17 ‘‘(i) for monitoring of the performance

18 of environmental reviews under this sub19 section;

20 ‘‘(ii) in the discretion of the Secretary,

21 for the provision or facilitation of training

22 for such performance;

23 ‘‘(iii) in the discretion of the Sec24 retary, for suspension or termination by
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1 the Secretary of the assumption under

2 paragraph (1); and

3 ‘‘(iv) in the discretion of the Sec4 retary, for the imposition of appropriate

5 sanctions for failure to comply with re6 sponsibilities assumed under this sub7 section, including the denial, withdrawal,

8 reduction, or abatement of assistance.

9 ‘‘(B) The Secretary’s duty under subpara10 graph (A) shall not be construed to limit or re11 duce any responsibility assumed by a State or

12 unit of general local government with respect to

13 any particular project under this subsection.’’.

14 TITLE III—EXTENSIONS OF EXISTING

15 AUTHORITY

16 SEC. 30. EXTENSION OF THE SECTION 211(g)(4) AUCTION

17 PROVISIONS.

18 The first sentence of section 221(g)(4)(C)(viii) of the

19 National Housing Act is amended by striking ‘‘September

20 30, 1996’’ and inserting ‘‘December 31, 2005, except that

21 the authority to apply this subparagraph in any fiscal year

22 shall be subject to appropriations for that year’’.
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1 SEC. 31. EXTENSION OF TRANSFERRING EXCESS RECEIPTS

2 TO THE FLEXIBLE SUBSIDY PROGRAM.

3 Section 236(f)(3) of the National Housing Act is

4 amended by striking ‘‘1994’’ and inserting ‘‘2000’’.

Æ