103D CONGRESS

1ST SESSION H. R. 2517

AMENDMENTS
In the Senate of the United States,

September 23 (legislative day, September 7), 1993.

Resolved, That the bill from the House of Representatives (H.R. 2517) entitled ‘‘An Act to establish certain programs and demonstrations to assist States and communities

in efforts to relieve homelessness, assist local community development organizations, and provide affordable rental housing for low-income families, and for other purposes’’, do pass

with the following

AMENDMENTS:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘HUD Demonstration

3 Act of 1993’’.

4 SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRA5 TION PROGRAM.

6 (a) PURPOSE.—The purpose of this section is to enable

7 the Secretary of Housing and Urban Development (here8 after in this Act referred to as the ‘‘Secretary’’), through

9 cooperative efforts in partnership with other levels of gov10 ernment and the private sector, including nonprofit organi11 zations, foundations, and communities, to demonstrate

12 methods of undertaking comprehensive strategies for assist13 ing homeless individuals and families (including homeless
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1 individuals who have AIDS or who are infected with HIV),

2 through a variety of activities, including the coordination

3 of efforts and the filling of gaps in available services and

4 resources. In carrying out the demonstration, the Secretary

5 shall—

6 (1) provide comprehensive homeless demonstra7 tion grants under subsection (c); and

8 (2) provide innovative project funding under

9 subsection (d).

10 (b) DEFINITIONS.—For purposes of this section, the

11 following definitions shall apply:

12 (1) HOMELESS INDIVIDUAL.—The term ‘‘home13 less individual’’ has the meaning given such term in

14 section 103 of the Stewart B. McKinney Homeless As15 sistance Act.

16 (2) HOMELESS FAMILY.—The term ‘‘homeless

17 family’’ means a group of one or more related indi18 viduals who are homeless individuals.

19 (3) INCORPORATED DEFINITIONS.—The terms

20 ‘‘State’’, ‘‘metropolitan city’’, ‘‘urban county’’, ‘‘unit

21 of general local government’’, and ‘‘Indian tribe’’ have

22 the meanings given such terms in section 102(a) of

23 the Housing and Community Development Act of

24 1974.
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1 (4) JURISDICTION.—The term ‘‘jurisdiction’’

2 means a State, metropolitan city, urban county, unit

3 of general local government (including units in rural

4 areas), or Indian tribe.

5 (5) NONPROFIT ORGANIZATION.—The term ‘‘non6 profit organization’’ means an organization—

7 (A) no part of the net earnings of which in8 ures to the benefit of any member, founder, con9 tributor, or individual;

10 (B) that, in the case of a private nonprofit

11 organization, has a voluntary board;

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

13 designated a fiscal agent in accordance with re14 quirements established by the Secretary; and

15 (D) that practices nondiscrimination in the

16 provision of assistance.

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

18 ‘‘very low-income families’’ has the meaning given

19 such term in section 3 of the United States Housing

20 Act of 1937.

21 (c) COMPREHENSIVE HOMELESS INITIATIVE.—

22 (1) DESIGNATION.—The Secretary shall des23 ignate such jurisdictions as the Secretary may deter24 mine for comprehensive homeless initiative funding

25 under this subsection.
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1 (2) AUTHORITY.—The Secretary may provide as2 sistance under this subsection to—

3 (A) jurisdictions designated under para4 graph (1) (or entities or instrumentalities estab5 lished under the authority of such jurisdictions);

6 or

7 (B) nonprofit organizations operating with8 in such jurisdictions,

9 to establish comprehensive homeless initiatives to

10 carry out the purpose of this section.

11 (3) CRITERIA.—The Secretary shall establish cri12 teria for designating jurisdictions under paragraph

13 (1), which shall include—

14 (A) the extent of homelessness in the juris15 diction;

16 (B) the extent to which the existing public

17 and private systems for homelessness prevention,

18 outreach, assessment, shelter, services, transi19 tional services, transitional housing, and perma20 nent housing available within the jurisdiction

21 would benefit from additional resources to

22 achieve a comprehensive approach to meeting the

23 needs of individuals and families who are home24 less or who are very low-income and at risk of

25 homelessness;
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1 (C) the demonstrated willingness and ca2 pacity of the jurisdiction to work cooperatively

3 with the Department of Housing and Urban De4 velopment (hereafter in this Act referred to as the

5 ‘‘Department’’), nonprofit organizations, founda6 tions, other private entities, and the community

7 to design and implement an initiative to achieve

8 the purposes of this subsection;

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

11 and other resources to a comprehensive homeless

12 initiative in the jurisdiction;

13 (E) the commitment of the jurisdiction to

14 make necessary changes in policy and procedure

15 to provide sufficient flexibility and resources as

16 necessary to implement and sustain the initia17 tive;

18 (F) national geographic diversity in the

19 designation of jurisdiction; and

20 (G) such other factors as the Secretary de21 termines to be appropriate.

22 (4) CONSULTATION.—Prior to designating juris23 dictions under paragraph (1), the Secretary shall con24 sult with the Committee on Banking, Finance and

25 Urban Affairs of the House of Representatives and the
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1 Committee on Banking, Housing, and Urban Affairs

2 of the Senate regarding such designations.

3 (5) COMPREHENSIVE STRATEGY.—Recipients of

4 assistance under this subsection shall, in cooperation

5 with the Secretary, other governmental entities, non6 profit organizations, foundations, other private enti7 ties, and the community, develop a comprehensive

8 plan that—

9 (A) sets forth a realistic and feasible strat10 egy that contains specific projects and activities

11 to carry out the purpose of this section;

12 (B) demonstrates the willingness of the ap13 propriate government and private entities and

14 other parties to participate cooperatively in this

15 plan;

16 (C) specifies the projects and activities to be

17 funded under this subsection;

18 (D) provides an estimate of the cost of im19 plementing the initiative funded under this sub20 section;

21 (E) enumerates amounts to be made avail22 able to fund the comprehensive homeless initia23 tive by participating governmental entities, non24 profit organizations, foundations, and the com-
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1 munity, as appropriate, and requests funds from

2 the Secretary pursuant to this subsection; and

3 (F) provides such other information as the

4 Secretary determines to be appropriate.

5 (6) DESIGNATION.—The designation referred to

6 in paragraph (1) and assistance provided under

7 paragraph (2) shall be made on a noncompetitive

8 basis.

9 (d) INNOVATIVE PROJECT FUNDING.—

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

11 provide assistance under this subsection to jurisdic12 tions and nonprofit organizations operating within

13 such jurisdictions to establish innovative programs to

14 carry out the purpose of this section.

15 (2) APPLICATIONS.—Applications for assistance

16 under this subsection shall be in such form, and shall

17 include such information, as the Secretary shall deter18 mine. Each application shall include—

19 (A) a description of the extent of homeless20 ness in the jurisdiction;

21 (B) an explanation of the extent to which

22 the existing systems, both public and private, for

23 homelessness prevention, outreach, assessment,

24 shelter, services, transitional services, transi25 tional housing, and permanent housing available
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1 within the jurisdiction would benefit from addi2 tional resources to achieve a comprehensive ap3 proach to meeting the needs of individuals and

4 families who are homeless, or who are very low5 income and at risk of homelessness;

6 (C) a description of the projects and activi7 ties for which the applicant is requesting fund8 ing under this subsection and the amounts re9 quested;

10 (D) the demonstrated willingness and ca11 pacity of the jurisdiction to work cooperatively

12 with the Department, nonprofit organizations,

13 foundations, other private entities, and the com14 munity, to the extent feasible, to design and im15 plement an initiative to achieve the purposes of

16 this subsection;

17 (E) a statement of commitment from the ju18 risdiction to make necessary changes in policy

19 and procedure to provide sufficient flexibility

20 and resources as necessary to implement and

21 sustain the program; and

22 (F) such other information as the Secretary

23 determines to be appropriate.
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1 (3) CRITERIA.—The Secretary shall establish se2 lection criteria for awarding assistance under this

3 subsection, which shall include—

4 (A) the extent to which the program de5 scribed in the application achieves the purpose of

6 this section;

7 (B) the extent to which the applicant dem8 onstrates the capacity to implement a program

9 that achieves the purpose of this section;

10 (C) the extent to which the program de11 scribed in the application is innovative and may

12 be replicated or may serve as a model for imple13 mentation in other jurisdictions;

14 (D) diversity by geography and community

15 type; and

16 (E) such other criteria as the Secretary de17 termines to be appropriate.

18 (e) REPORTS.—

19 (1) RECIPIENTS OF FUNDS.—Each recipient of

20 funds under subsections (c) and (d) shall submit to

21 the Secretary a report or series of reports, in a form

22 and at a time specified by the Secretary. Each report

23 shall—

24 (A) describe the use of funds made available

25 under this section; and
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1 (B) include a description and an analysis

2 of the programs and projects funded, the innova3 tive approaches taken, and the level of coopera4 tion among participating parties.

5 (2) INTERIM HUD REPORT.—The Secretary shall

6 submit to the Congress, in conjunction with the 1995

7 legislative recommendations of the Department, a re8 port describing the results of the demonstration pro9 gram funded under this section to date. The report

10 shall contain a summary and analysis of all informa11 tion contained in any reports received by the Sec12 retary pursuant to paragraph (1) and shall contain

13 recommendations for future action.

14 (3) FINAL HUD REPORT.—Not later than 3

15 months after all recipient reports have been submitted

16 under paragraph (1), the Secretary shall submit to

17 the Congress a final report. The Secretary’s final re18 port shall contain a summary and analysis of all in19 formation contained in the reports received by the

20 Secretary pursuant to paragraph (1) and shall con21 tain recommendations for future action.

22 (f) AUTHORIZATION OF APPROPRIATIONS.—There are

23 authorized to be appropriated $200,000,000 for fiscal year

24 1994 to carry out this section. Of the amounts appropriated

25 pursuant to this subsection, not less than 25 percent shall
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1 be used to carry out innovative project funding under sub2 section (d). All funds shall remain available until expended.

3 (g) REPEAL.—This section shall be repealed effective

4 on October 1, 1994.

5 SEC. 3. MOVING TO OPPORTUNITIES.

6 Section 152(e) of the Housing and Community Devel7 opment Act of 1992 (42 U.S.C. 1437f note) is amended in

8 the first sentence by striking ‘‘$52,100,000’’ and inserting

9 ‘‘$165,000,000’’.

10 SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOP11 MENT AND AFFORDABLE HOUSING.

12 (a) IN GENERAL.—The Secretary is authorized to pro13 vide assistance through the National Community Develop14 ment Initiative to develop the capacity and ability of com15 munity development corporations and community housing

16 development organizations to undertake community devel17 opment and affordable housing projects and programs.

18 (b) FORM OF ASSISTANCE.—Assistance under this sec19 tion may be used for—

20 (1) training, education, support, and advice to

21 enhance the technical and administrative capabilities

22 of community development corporations and commu23 nity housing development organizations;

24 (2) loans, grants, or predevelopment assistance to

25 community development corporations and community
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1 housing development organizations to carry out com2 munity development and affordable housing activities

3 that benefit low-income families; and

4 (3) such other activities as may be determined by

5 the National Community Development Initiative in

6 consultation with the Secretary.

7 (c) MATCHING REQUIREMENT.—Assistance provided

8 under this section shall be matched from private sources in

9 an amount equal to 3 times the amount made available

10 under this section.

11 (d) IMPLEMENTATION.—The Secretary shall by notice

12 establish such requirements as may be necessary to carry

13 out the provisions of this section. The notice shall take effect

14 upon issuance.

15 (e) AUTHORIZATION.—There are authorized to be ap16 propriated $25,000,000 for fiscal year 1994 to carry out

17 this section.

18 SEC. 5. AUTHORIZATION FOR COMMUNITY HOUSING PART19 NERSHIPS AND SUPPORT FOR STATE AND

20 LOCAL HOUSING STRATEGIES.

21 Section 205 of the Cranston-Gonzalez National Afford22 able Housing Act (12 U.S.C. 12724) is amended—

23 (1) in paragraph (1), by striking ‘‘$14,000,000

24 for fiscal year 1994’’ and inserting ‘‘$25,000,000 for

25 fiscal year 1994’’; and
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1 (2) in paragraph (2), by striking ‘‘$11,000,000

2 for fiscal year 1994’’ and inserting ‘‘$22,000,000 for

3 fiscal year 1994’’.

4 SEC. 6. SECTION 8 COMMUNITY INVESTMENT DEMONSTRA5 TION PROGRAM.

6 (a) DEMONSTRATION PROGRAM.—The Secretary shall

7 carry out a demonstration program to attract pension fund

8 investment in affordable housing through the use of project9 based rental assistance under section 8 of the United States

10 Housing Act of 1937.

11 (b) FUNDING REQUIREMENTS.—In carrying out this

12 section, the Secretary shall ensure that not less than 50 per13 cent of the funds appropriated for the demonstration pro14 gram each year are used in conjunction with the disposition

15 of either—

16 (1) multifamily properties owned by the Depart17 ment; or

18 (2) multifamily properties securing mortgages

19 held by the Department.

20 (c) CONTRACT TERMS.—

21 (1) IN GENERAL.—Project-based assistance under

22 this section shall be provided pursuant to a contract

23 entered into by the Secretary and the owner of the eli24 gible housing that—
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1 (A) provides assistance for a term of not

2 less than 60 months and not greater than 180

3 months; and

4 (B) provides for contract rents, to be deter5 mined by the Secretary, which shall not exceed

6 contract rents permitted under section 8 of the

7 United States Housing Act of 1937, taking into

8 consideration any costs for the construction, re9 habilitation, or acquisition of the housing.

10 (2) AMENDMENT TO SECTION 203.—Section 203

11 of the Housing and Community Development Amend12 ments of 1978 (12 U.S.C. 1701z-11) is amended by

13 adding at the end the following new subsection:

14 ‘‘(l) Project-based assistance in connection with the

15 disposition of a multifamily housing project may be pro16 vided for a contract term of less than 15 years if such assist17 ance is provided—

18 ‘‘(1) under a contract authorized under section 6

19 of the HUD Demonstration Act of 1993; and

20 ‘‘(2) pursuant to a disposition plan under this

21 section for a project that is determined by the Sec22 retary to be otherwise in compliance with this sec23 tion.’’.

24 (d) LIMITATION.—(1) The Secretary may not provide

25 (or make a commitment to provide) more than 50 percent
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1 of the funding for housing financed by any single pension

2 fund, except that this limitation shall not apply if the Sec3 retary, after the end of the 6-month period beginning on

4 the date notice is issued under subsection (e)—

5 (A) determines that—

6 (i) there are no expressions of interest that

7 are likely to result in approvable applications in

8 the reasonably foreseeable future; or

9 (ii) any such expressions of interest are not

10 likely to use all funding under this section; and

11 (B) so informs the Committee on Banking, Fi12 nance and Urban Affairs of the House of Representa13 tives and the Committee on Banking, Housing, and

14 Urban Affairs of the Senate.

15 (2) If the Secretary determines that there are expres16 sions of interest referred to in paragraph (1)(A)(ii), the Sec17 retary may reserve funding sufficient in the Secretary’s de18 termination to fund such applications and may use any

19 remaining funding for other pension funds in accordance

20 with this section.

21 (e) IMPLEMENTATION.—The Secretary shall by notice

22 establish such requirements as may be necessary to carry

23 out the provisions of this section. The notice shall take effect

24 upon issuance.
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1 (f) APPLICABILITY OF ERISA.—Notwithstanding sec2 tion 514(d) of the Employee Retirement Income Security

3 Act of 1974, nothing in this section shall be construed to

4 authorize any action or failure to act that would constitute

5 a violation of such Act.

6 (g) REPORT.—Not later than 3 months after the last

7 day of each fiscal year, the Secretary shall submit to the

8 Committee on Banking, Finance and Urban Affairs of the

9 House of Representatives and the Committee on Banking,

10 Housing, and Urban Affairs of the Senate a report summa11 rizing the activities carried out under this section during

12 that fiscal year.

13 (h) ESTABLISHMENT OF STANDARDS.—Mortgages se14 cured by housing assisted under this demonstration shall

15 meet such standards regarding financing and securitization

16 as the Secretary may establish.

17 (i) GAO STUDY.—The Comptroller General of the

18 United States shall conduct a study evaluating the dem19 onstration authorized under this section and shall report

20 its findings to the Committee on Banking, Finance and

21 Urban Affairs of the House of Representatives and the Com22 mittee on Banking, Housing, and Urban Affairs of the Sen23 ate not later than 3 months after the conclusion of the dem24 onstration.
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1 (j) AUTHORIZATION OF APPROPRIATIONS.—There are

2 authorized to be appropriated $100,000,000 for fiscal year

3 1994 to carry out this section.

4 (k) TERMINATION DATE.—The Secretary shall not

5 enter into any new commitment to provide assistance under

6 this section after September 30, 1998.

7 SEC. 7. NATIONAL COMMISSION ON MANUFACTURED HOUS8 ING.

9 (a) EXTENSION OF COMMISSION.—Section 943(g) of

10 the Cranston-Gonzalez National Affordable Housing Act

11 (Public Law 101–625; 104 Stat. 4415) is amended by strik12 ing ‘‘on October 1, 1993’’ and inserting ‘‘on October 1,

13 1994’’.

14 (b) FINAL REPORT.—Section 943(d)(2) of the Cran15 ston-Gonzalez National Affordable Housing Act (Public

16 Law 101–625; 104 Stat. 4414) is amended by striking ‘‘9

17 months after the Commission is established pursuant to sub18 section (b)’’ and inserting ‘‘August 1, 1994’’.

19 (c) INTERIM REPORT.—Section 943(d) of the Cran20 ston-Gonzalez National Affordable Housing Act (Public

21 Law 101–625; 104 Stat. 4414) is amended—

22 (1) by redesignating paragraph (2) (as amended

23 by subsection (b) of this section) as paragraph (3);

24 and
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1 (2) by inserting after paragraph (1) the follow2 ing new paragraph:

3 ‘‘(2) INTERIM REPORT.—Not later than March 1,

4 1994, the Commission shall submit an interim report

5 to the Secretary and the Congress. The report shall

6 describe the activities of the Commission under para7 graph (1) and shall contain any information specified

8 in such paragraph that is available to the Commis9 sion and any evaluations and recommendations speci10 fied in such paragraph that may be made by the

11 Commission, at such time.’’.

12 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

13 943(f) of the Cranston-Gonzalez National Affordable Hous14 ing Act (Public Law 101–625; 104 Stat. 4415) is amended

15 by inserting after the first sentence the following new sen16 tence: ‘‘There are authorized to be appropriated for fiscal

17 year 1994 such sums as may be necessary to carry out this

18 section.’’.

19 SEC. 8. RECIPROCITY IN APPROVAL OF HOUSING SUBDIVI20 SIONS AMONG FEDERAL AGENCIES.

21 (a) EXTENSION OF AUTHORITY.—Section 535(b) of the

22 Housing Act of 1949 (42 U.S.C. 1490o(b)) is amended by

23 striking ‘‘June 15, 1993’’ and inserting ‘‘September 30,

24 1994’’.
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1 (b) RETROACTIVITY.—An administrative approval of

2 a housing subdivision made after June 15, 1993, and before

3 the date of the enactment of this Act is approved and shall

4 be considered to have been lawfully made, but only if other5 wise made in accordance with the provisions of section

6 535(b) of the Housing Act of 1949.

7 SEC. 9. FHA INSURANCE AUTHORITY.

8 Section 531(b) of the National Housing Act (12 U.S.C.

9 1735f–9(b)) is amended by striking ‘‘$65,905,824,960’’ and

10 inserting ‘‘$110,165,000,000’’.

11 SEC. 10. GNMA GUARANTEE AUTHORITY.

12 Section 306(g)(2) of the National Housing Act (12

13 U.S.C. 1721(g)(2)) is amended by striking

14 ‘‘$88,000,000,000’’ and inserting ‘‘$107,700,000,000’’.

15 SEC. 11. ADMINISTRATION OF SECTION 8 PROGRAM.

16 (a) ADMINISTRATIVE FEE.—Notwithstanding the sec17 ond sentence of section 8(q)(1) of the United States Housing

18 Act of 1937, other applicable law, or any implementing reg19 ulations and related requirements, the fee for the ongoing

20 costs of administering the certificate and housing voucher

21 programs under subsections (b) and (o) of section 8 of such

22 Act during fiscal year 1994 shall be—

23 (1) not less than a fee calculated in accordance

24 with the fair market rents for Federal fiscal year

25 1993; or
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1 (2) not more than—

2 (A) a fee calculated in accordance with sec3 tion 8(q) of such Act, except that such fee shall

4 not be in excess of 3.5 percent above the fee cal5 culated in accordance with paragraph (1); or

6 (B) to the extent approved in an appropria7 tion Act, a fee calculated in accordance with

8 such section 8(q).

9 (b) STUDY.—

10 (1) IN GENERAL.—The Secretary shall conduct a

11 study assessing the costs incurred by public housing

12 agencies in administering the voucher and certificate

13 programs under subsections (b) and (o) of section 8

14 of the United States Housing Act of 1937.

15 (2) SPECIFIC REQUIREMENTS.—The study con16 ducted under this subsection shall—

17 (A) take into account variances in costs at18 tributable to the geographic area, the tenant pop19 ulation, and the number of units covered by a

20 public housing agency; and

21 (B) include an analysis of the costs associ22 ated with Federal mandates, such as the family

23 self-sufficiency program, and such other factors

24 that the Secretary determines to be appropriate.
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1 (3) SUBMISSION TO CONGRESS.—The Secretary

2 shall submit to the Congress a report containing the

3 results of the study conducted under this subsection in

4 conjunction with the Department of Housing and

5 Urban Development’s 1994 legislative recommenda6 tions.

7 SEC. 12. AMENDMENTS TO PUBLIC LAW 102–389.

8 (a) EXTENSION OF TIME.—Subject to appropriations

9 made in advance in an appropriations Act, title II of the

10 Departments of Veterans Affairs and Housing and Urban

11 Development, and Independent Agencies Appropriations

12 Act, 1993 (Public Law 102–389), is amended under the

13 heading ‘‘Administrative Provisions’’ in the second undesig14 nated paragraph by striking ‘‘October 1, 1993’’ and insert15 ing ‘‘October 1, 1994’’.

16 (b) PROJECT-BASED ASSISTANCE.—Title II of the De17 partments of Veterans Affairs and Housing and Urban De18 velopment, and Independent Agencies Appropriations Act,

19 1993 (Public Law 102-389), is amended under the heading

20 ‘‘Administrative Provisions’’ in the ninth undesignated

21 paragraph by inserting ‘‘(which may be project-based as22 sistance)’’ after ‘‘36 units’’.

Amend the title so as to read: ‘‘An Act to enable the

Secretary of Housing and Urban Development to demonstrate innovative strategies for assisting homeless indi-
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viduals, to develop the capacity of community development corporations and community housing development

organizations to undertake community development and

affordable housing projects and programs, to encourage

pension fund investment in affordable housing, and for

other purposes.’’.

Attest:

Secretary.
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