I

103D CONGRESS

1ST SESSION H. R. 2668

To establish a demonstration program to provide affordable rental housing

for low-income families, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 20, 1993

Mr. GONZALEZ (for himself and Mrs. ROUKEMA) introduced the following bill;

which was referred to the Committee on Banking, Finance and Urban Affairs

A BILL

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’’.

6 SEC. 2. SECTION 8 COMMUNITY INVESTMENT DEMONSTRA7 TION PROGRAM.

8 (a) AUTHORITY.—Using amounts available pursuant

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

10 of 1937, the Secretary of Housing and Urban Develop-
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1 ment (in this section referred to as the ‘‘Secretary’’) shall

2 carry out a demonstration program to provide project3 based rental assistance under section 8 of such Act on be4 half of low-income families residing in housing that is con5 structed, rehabilitated, or acquired pursuant to a loan or

6 other financing from an eligible pension fund. Notwith7 standing section 514(d) of the Employee Retirement In8 come Security Act of 1974 (29 U.S.C. 1144(d)), nothing

9 in this section shall be construed to authorize any action

10 or failure to act that would otherwise constitute a violation

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

12 (b) CONTRACT TERMS.—Assistance provided under

13 the demonstration under this section with respect to eligi14 ble housing—

15 (1) shall be project-based assistance that is at16 tached to the eligible housing; and

17 (2) shall be provided pursuant to a contract en18 tered into by the Secretary and the owner of the eli19 gible housing that—

20 (A) provides such assistance for a term of

21 not less than 60 months and not more than 180

22 months; and

23 (B) provides that the contract rents for

24 dwelling units in the eligible housing shall be

25 determined by the Secretary taking into consid-
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1 eration any costs for construction, rehabilita2 tion, or acquisition of the housing, except that

3 such contract rent may not exceed the contract

4 rent permitted pursuant to section 8 of the

5 United States Housing Act of 1937.

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

7 into a commitment to provide assistance pursuant to this

8 section with respect to a housing project only if—

9 (1) the housing is—

10 (A) a multifamily housing project owned

11 by the Secretary or subject to a mortgage held

12 by the Secretary that is delinquent, under a

13 workout agreement, or being foreclosed upon by

14 the Secretary;

15 (B) designated by the Secretary under sec16 tion 24(b) of the United States Housing Act of

17 1937 as a severely distressed public housing

18 project;

19 (C) a multifamily housing project eligible

20 for assistance for troubled projects under sec21 tion 201 of the Housing and Community Devel22 opment Amendments of 1978;

23 (D) a multifamily housing project located

24 in a empowerment zone or enterprise commu25 nity designated pursuant to Federal law; or
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1 (E) any other multifamily housing project,

2 including a project to be occupied by homeless

3 persons (as such term is defined in section 103

4 of the Stewart B. McKinney Homeless Assist5 ance Act) or homeless families;

6 (2) the Secretary determines that the owner of

7 the housing has obtained commitments, satisfactory

8 in the determination of the Secretary, for financing

9 for the construction, acquisition, or rehabilitation of

10 the housing from an eligible pension fund;

11 (3) the mortgage for the housing meets stand12 ards regarding securitization and such additional

13 standards regarding financing as the Secretary may

14 establish;

15 (4) in the case of any housing that is to be con16 structed, the Secretary determines that the owner of

17 the housing has provided reasonable assurances to

18 the Secretary that the owner will own or have con19 trol of a site for the housing (which may be a suit20 able site different from the site specified in the ap21 plication under subsection (d)) not later than 12

22 months after notification of the award of assistance

23 under this section;
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1 (5) the housing and any work done with respect

2 to the housing will comply with any applicable envi3 ronmental laws or regulations;

4 (6) the construction, rehabilitation, or acquisi5 tion of the housing is not inconsistent with the ap6 proved comprehensive housing affordability strategy

7 under title I of the Cranston-Gonzalez National Af8 fordable Housing Act for the jurisdiction in which

9 the housing is located; and

10 (7) the housing complies with any other re11 quirements established by the Secretary to carry out

12 the demonstration under this section.

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

14 the owners of eligible housing, together with the eligible

15 pension funds providing financing for the housing, to

16 jointly submit applications for assistance under this sec17 tion. An application shall include a description of the hous18 ing to be constructed, rehabilitated, or acquired, the loca19 tion of the housing (or the site for the construction of the

20 housing), the terms of the financing by the eligible pension

21 fund, a request for a specific amount of assistance under

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

23 as the Secretary may require.

24 (e) SELECTION AND DETERMINATION OF ASSIST25 ANCE.—The Secretary shall select eligible housing for as-
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1 sistance under this section from among applications sub2 mitted pursuant to subsection (d) and, subject to the pro3 visions of this section, shall determine the amount of as4 sistance to be provided for selected housing that is appro5 priate to maintain the affordability and feasibility of the

6 housing.

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

8 Project-based assistance provided under this section shall

9 not be considered for purposes of any percentage limita10 tion under section 8(d)(2)(A) or (B) of the United States

11 Housing Act of 1937 regarding the amount of assistance

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

13 (g) USE IN PROPERTY DISPOSITION PROGRAM.—

14 (1) AUTHORITY.—Notwithstanding any provi15 sion of section 203 of the Housing and Community

16 Development Amendments of 1978, assistance pro17 vided in connection with the disposition of a multi18 family housing project under such section 203 may

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

20 assistance is provided (A) under a contract under

21 the demonstration under this section, and (B) pur22 suant to a disposition plan under such section 203

23 for the project that is approved under such section

24 by the Secretary as otherwise in compliance with the

25 requirements of such section.
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1 (2) ALLOCATION.—Of the amounts made avail2 able in each fiscal year for assistance under the

3 demonstration under this section, a significant

4 amount may be used in connection with the disposi5 tion under section 203 of the Housing and Commu6 nity Development Amendments of 1978 of eligible

7 housing.

8 (h) REPORTS.—

9 (1) GAO.—The Comptroller General of the

10 United States shall submit to the Congress reports

11 under this paragraph evaluating the effectiveness of

12 the demonstration under this section. Such reports

13 shall be submitted not later than the expiration of

14 the 2-year period beginning on the date of the enact15 ment of this section and not later than the expira16 tion of the 6-month period beginning upon the ter17 mination date under subsection (k).

18 (2) SECRETARY.—The Secretary shall submit

19 an annual report to the Congress for each fiscal year

20 in which the Secretary provides assistance pursuant

21 to contracts entered into under this section. The re22 ports shall summarize the activities carried out

23 under this section, describe the housing assisted and

24 the amounts of assistance provided, and include any

25 findings and recommendations of the Secretary as a
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1 result of the demonstration under this section. Each

2 such report shall be submitted not later than the ex3 piration of the 3-month period beginning upon the

4 conclusion of the fiscal year for which the report is

5 made.

6 (i) DEFINITIONS.—For purposes of this section:

7 (1) The term ‘‘eligible housing’’ means housing

8 for which the requirements under subsection (c)

9 have been met.

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

11 any—

12 (A) trust, fund, plan, or other program es13 tablished or maintained by any employer or

14 other person for the purpose of providing in15 come or benefits to employees after the termi16 nation of employment or deferring income by

17 employees until after the termination of employ18 ment, or

19 (B) other entity that invests principally the

20 amounts of any trust, fund, plan, or other pro21 gram referred to in subparagraph (A),

22 that the Secretary considers appropriate for pur23 poses of this section.

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

25 final regulations necessary to carry out this section not
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1 later than the expiration of the 45-day period beginning

2 on the date of the enactment of this section.

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

4 enter into any new commitment to provide assistance

5 under this section after September 30, 1998.

6 (l) FUNDING.—Section 5(c)(7)(B)(ii) of the United

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

8 1437c(c)(7)(B)(ii)) is amended by inserting after

9 ‘‘8(i)(2);’’ the following: ‘‘and of which not more than

10 $100,000,000 shall be available for the community invest11 ment demonstration program under section 5 of the

12 Homeless and Community Development Amendments Act

13 of 1993;’’.

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