IIA

103D CONGRESS

1ST SESSION H. R. 2668

IN THE SENATE OF THE UNITED STATES

AUGUST 3 (legislative day, JUNE 30), 1993

Received; read twice and referred to the Committee on Banking, Housing, and

Urban Affairs

AN ACT

To establish a demonstration program to provide affordable

rental housing for low-income families, 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.

4 This Act may be cited as the ‘‘Community Investment

5 Demonstration Act of 1993’’.
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1 SEC. 2. SECTION 8 COMMUNITY INVESTMENT DEMONSTRA2 TION PROGRAM.

3 (a) AUTHORITY.—Using amounts available pursuant

4 to section 5(c)(7)(B)(ii) of the United States Housing Act

5 of 1937, the Secretary of Housing and Urban Develop6 ment (in this section referred to as the ‘‘Secretary’’) shall

7 carry out a demonstration program to provide project8 based rental assistance under section 8 of such Act on be9 half of low-income families residing in housing that is con10 structed, rehabilitated, or acquired pursuant to a loan or

11 other financing from an eligible pension fund. Notwith12 standing section 514(d) of the Employee Retirement In13 come Security Act of 1974 (29 U.S.C. 1144(d)), nothing

14 in this section shall be construed to authorize any action

15 or failure to act that would otherwise constitute a violation

16 of such Act with respect to an eligible pension fund.

17 (b) CONTRACT TERMS.—Assistance provided under

18 the demonstration under this section with respect to eligi19 ble housing—

20 (1) shall be project-based assistance that is at21 tached to the eligible housing; and

22 (2) shall be provided pursuant to a contract en23 tered into by the Secretary and the owner of the eli24 gible housing that—
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1 (A) provides such assistance for a term of

2 not less than 60 months and not more than 180

3 months; and

4 (B) provides that the contract rents for

5 dwelling units in the eligible housing shall be

6 determined by the Secretary taking into consid7 eration any costs for construction, rehabilita8 tion, or acquisition of the housing, except that

9 such contract rent may not exceed the contract

10 rent permitted pursuant to section 8 of the

11 United States Housing Act of 1937.

12 (c) ELIGIBLE HOUSING.—The Secretary may enter

13 into a commitment to provide assistance pursuant to this

14 section with respect to a housing project only if—

15 (1) the housing is—

16 (A) a multifamily housing project owned

17 by the Secretary or subject to a mortgage held

18 by the Secretary that is delinquent, under a

19 workout agreement, or being foreclosed upon by

20 the Secretary;

21 (B) designated by the Secretary under sec22 tion 24(b) of the United States Housing Act of

23 1937 as a severely distressed public housing

24 project;
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1 (C) a multifamily housing project eligible

2 for assistance for troubled projects under sec3 tion 201 of the Housing and Community Devel4 opment Amendments of 1978;

5 (D) a multifamily housing project located

6 in a empowerment zone or enterprise commu7 nity designated pursuant to Federal law; or

8 (E) any other multifamily housing project,

9 including a project to be occupied by homeless

10 persons (as such term is defined in section 103

11 of the Stewart B. McKinney Homeless Assist12 ance Act) or homeless families;

13 (2) the Secretary determines that the owner of

14 the housing has obtained commitments, satisfactory

15 in the determination of the Secretary, for financing

16 for the construction, acquisition, or rehabilitation of

17 the housing from an eligible pension fund;

18 (3) the mortgage for the housing meets stand19 ards regarding securitization and such additional

20 standards regarding financing as the Secretary may

21 establish;

22 (4) in the case of any housing that is to be con23 structed, the Secretary determines that the owner of

24 the housing has provided reasonable assurances to

25 the Secretary that the owner will own or have con-
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1 trol of a site for the housing (which may be a suit2 able site different from the site specified in the ap3 plication under subsection (d)) not later than 12

4 months after notification of the award of assistance

5 under this section;

6 (5) the housing and any work done with respect

7 to the housing will comply with any applicable envi8 ronmental laws or regulations;

9 (6) the construction, rehabilitation, or acquisi10 tion of the housing is not inconsistent with the ap11 proved comprehensive housing affordability strategy

12 under title I of the Cranston-Gonzalez National Af13 fordable Housing Act for the jurisdiction in which

14 the housing is located; and

15 (7) the housing complies with any other re16 quirements established by the Secretary to carry out

17 the demonstration under this section.

18 (d) APPLICATIONS.—The Secretary shall provide for

19 the owners of eligible housing, together with the eligible

20 pension funds providing financing for the housing, to

21 jointly submit applications for assistance under this sec22 tion. An application shall include a description of the hous23 ing to be constructed, rehabilitated, or acquired, the loca24 tion of the housing (or the site for the construction of the

25 housing), the terms of the financing by the eligible pension
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1 fund, a request for a specific amount of assistance under

2 this section for a specific term, and such other information

3 as the Secretary may require.

4 (e) SELECTION AND DETERMINATION OF ASSIST5 ANCE.—

6 (1) IN GENERAL.—The Secretary shall select el7 igible housing for assistance under this section from

8 among applications submitted pursuant to sub9 section (d) and, subject to the provisions of this sec10 tion, shall determine the amount of assistance to be

11 provided for selected housing that is appropriate to

12 maintain the affordability and feasibility of the

13 housing.

14 (2) LIMITATION.—Of any amounts made avail15 able for the demonstration under this section pursu16 ant to the amendment made by subsection (l) of this

17 section, during the 6-month period beginning on the

18 date that such amounts first are made available by

19 the Secretary for assistance under this section, the

20 Secretary may not provide (or make any commit21 ment to provide) more than 50 percent of such

22 amounts for assistance for eligible housing financed

23 by any single eligible pension fund.

24 (f) RELATION TO PHA PROJECT-BASED LIMIT.—

25 Project-based assistance provided under this section shall
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1 not be considered for purposes of any percentage limita2 tion under section 8(d)(2)(A) or (B) of the United States

3 Housing Act of 1937 regarding the amount of assistance

4 under such section that may be attached to the structure.

5 (g) USE IN PROPERTY DISPOSITION PROGRAM.—

6 (1) AUTHORITY.—Notwithstanding any provi7 sion of section 203 of the Housing and Community

8 Development Amendments of 1978, assistance pro9 vided in connection with the disposition of a multi10 family housing project under such section 203 may

11 have a contract term of less than 15 years if such

12 assistance is provided (A) under a contract under

13 the demonstration under this section, and (B) pur14 suant to a disposition plan under such section 203

15 for the project that is approved under such section

16 by the Secretary as otherwise in compliance with the

17 requirements of such section.

18 (2) ALLOCATION.—Of the amounts made avail19 able in each fiscal year for assistance under the

20 demonstration under this section, a significant

21 amount may be used in connection with the disposi22 tion under section 203 of the Housing and Commu23 nity Development Amendments of 1978 of eligible

24 housing.

25 (h) REPORTS.—
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1 (1) GAO.—The Comptroller General of the

2 United States shall submit to the Congress reports

3 under this paragraph evaluating the effectiveness of

4 the demonstration under this section. Such reports

5 shall be submitted not later than the expiration of

6 the 2-year period beginning on the date of the enact7 ment of this section and not later than the expira8 tion of the 6-month period beginning upon the ter9 mination date under subsection (k).

10 (2) SECRETARY.—The Secretary shall submit

11 an annual report to the Congress for each fiscal year

12 in which the Secretary provides assistance pursuant

13 to contracts entered into under this section. The re14 ports shall summarize the activities carried out

15 under this section, describe the housing assisted and

16 the amounts of assistance provided, and include any

17 findings and recommendations of the Secretary as a

18 result of the demonstration under this section. Each

19 such report shall be submitted not later than the ex20 piration of the 3-month period beginning upon the

21 conclusion of the fiscal year for which the report is

22 made.

23 (i) DEFINITIONS.—For purposes of this section:
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1 (1) The term ‘‘eligible housing’’ means housing

2 for which the requirements under subsection (c)

3 have been met.

4 (2) The term ‘‘eligible pension fund’’ means

5 any—

6 (A) trust, fund, plan, or other program es7 tablished or maintained by any employer or

8 other person for the purpose of providing in9 come or benefits to employees after the termi10 nation of employment or deferring income by

11 employees until after the termination of employ12 ment, or

13 (B) other entity that invests principally the

14 amounts of any trust, fund, plan, or other pro15 gram referred to in subparagraph (A),

16 that the Secretary considers appropriate for pur17 poses of this section.

18 (j) REGULATIONS.—The Secretary shall issue any

19 final regulations necessary to carry out this section not

20 later than the expiration of the 45-day period beginning

21 on the date of the enactment of this section.

22 (k) TERMINATION DATE.—The Secretary may not

23 enter into any new commitment to provide assistance

24 under this section after September 30, 1998.
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1 (l) FUNDING.—Section 5(c)(7)(B)(ii) of the United

2 States Housing Act of 1937 (42 U.S.C.

3 1437c(c)(7)(B)(ii)) is amended by inserting after

4 ‘‘8(i)(2);’’ the following: ‘‘and of which not more than

5 $100,000,000 shall be available for the community invest6 ment demonstration program under section 5 of the

7 Homeless and Community Development Amendments Act

8 of 1993;’’.

Passed the House of Representatives August 2,

1993.

Attest: DONNALD K. ANDERSON,

Clerk.