H. R. 2684—72
‘‘(iv) The Secretary may approve a basic rental charge and
fair market rental charge for a unit that exceeds the minimum
amounts permitted by this subparagraph for such charges only
if—
‘‘(I) the approved basic rental charge and fair market rental
charges each exceed the applicable minimum charge by the
same amount; and
‘‘(II) the project owner agrees to restrictions on project
use or mortgage prepayment that are acceptable to the Sec-
retary.
‘‘(v) The Secretary may approve a basic rental charge and
fair market rental charge under this paragraph for a unit with
assistance under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f) that differs from the basic rental charge
and fair market rental charge for a unit in the same project that
is similar in size and amenities but without such assistance, as
needed to ensure equitable treatment of tenants in units without
such assistance.
‘‘(B)(i) The rental charge for each dwelling unit shall be at
the basic rental charge or such greater amount, not exceeding
the fair market rental charge determined pursuant to subparagraph
(A), as represents 30 percent of the tenant’s adjusted income, except
as otherwise provided in this subparagraph.
‘‘(ii) In the case of a project which contains more than 5000
units, is subject to an interest reduction payments contract, and
is financed under a State or local project, the Secretary may reduce
the rental charge ceiling, but in no case shall the rental charge
be below the basic rental charge set forth in subparagraph (A)(ii)(I).
‘‘(iii) For plans of action approved for capital grants under
the Low-Income Housing Preservation and Resident Homeowner-
ship Act of 1990 or the Emergency Low Income Housing Preserva-
tion Act of 1987, the rental charge for each dwelling unit shall
be at the minimum basic rental charge set forth in subparagraph
(A)(ii)(I) or such greater amount, not exceeding the lower of: (I)
the fair market rental charge set forth in subparagraph (A)(iii)(I);
or (II) the actual rent paid for a comparable unit in comparable
unassisted housing in the market area in which the housing assisted
under this section is located, as represents 30 percent of the tenant’s
adjusted income.
‘‘(C) With respect to those projects which the Secretary deter-
mines have separate utility metering paid by the tenants for some
or all dwelling units, the Secretary may—
‘‘(i) permit the basic rental charge and the fair market
rental charge to be determined on the basis of operating the
project without the payment of the cost of utility services used
by such dwelling units; and
‘‘(ii) permit the charging of a rental for such dwelling
units at such an amount less than 30 percent of a tenant’s
adjusted income as the Secretary determines represents a
proportionate decrease for the utility charges to be paid by
such tenant, but in no case shall rental be lower than 25
percent of a tenant’s adjusted income.’’.
(e) EFFECTIVE DATE OF 1998 PROVISIONS.—Section 236(g) of
the National Housing Act (12 U.S.C. 1715z–1(g)), as amended by
section 227 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1999 (Public Law 105–276; 112 Stat. 2490) shall be effective
H. R. 2684—73
on the date of the enactment of such Public Law 105–276, and
any excess rental charges referred to in such section that have
been collected since such date of the enactment with respect to
projects with mortgages insured under section 207 of the National
Housing Act (12 U.S.C. 1713) may be retained by the project owner
unless the Secretary of Housing and Urban Development specifically
provides otherwise. The Secretary may return any excess charges
remitted to the Secretary since such date of the enactment.
(f ) EFFECTIVE DATE.—This section shall take effect, and the
amendments made by this section are made and shall apply, on
the date of the enactment of this Act.
SEC. 533. REHABILITATION OF ASSISTED HOUSING.
(a) REHABILITATION LOANS FROM RECAPTURED IRP AMOUNTS.—
Section 236(s) of the National Housing Act (12 U.S.C. 1715z–1(s))
is amended—
(1) by striking the subsection designation and heading and
inserting the following:
‘‘(s) GRANTS AND LOANS FOR REHABILITATION OF MULTIFAMILY
PROJECTS.—’’;
(2) in paragraph (1), by inserting ‘‘and loans’’ after ‘‘grants’’;
(3) in paragraph (2)—
(A) in the matter preceding subparagraph (A), by
striking ‘‘capital grant assistance under this subsection’’
and inserting ‘‘capital assistance under this subsection
under a grant or loan only’’; and
(B) in subparagraph (D)(i), by striking ‘‘capital grant
assistance’’ and inserting ‘‘capital assistance under this
subsection from a grant or loan (as appropriate)’’;
(4) in paragraph (3), by striking all of the matter that
precedes subparagraph (A) and inserting the following:
‘‘(3) ELIGIBLE USES.—Amounts from a grant or loan under
this subsection may be used only for projects eligible under
paragraph (2) for the purposes of—’’;
(5) in paragraph (4)—
(A) by striking the paragraph heading and inserting
‘‘GRANT AND LOAN AGREEMENTS’’; and
(B) by inserting ‘‘or loan’’ after ‘‘grant’’, each place
it appears;
(6) in paragraph (5), by inserting ‘‘or loan’’ after ‘‘grant’’,
each place it appears;
(7) in paragraph (6), by adding at the end the following
new subparagraph:
‘‘(D) LOANS.—In making loans under this subsection
using the amounts that the Secretary has recaptured from
contracts for interest reduction payments pursuant to
clause (i) or (ii) of paragraph (7)(A)—
‘‘(i) the Secretary may use such recaptured
amounts for costs (as such term is defined in section
502 of the Congressional Budget Act of 1974) of such
loans; and
‘‘(ii) the Secretary may make loans in any fiscal
year only to the extent or in such amounts that
amounts are used under clause (i) to cover costs of
such loans.’’;
H. R. 2684—74
(8) by redesignating paragraphs (5) and (6) (as amended
by the preceding provisions of this subsection) as paragraphs
(6) and (7); and
(9) by inserting after paragraph (4) the following new para-
graph:
‘‘(5) LOAN TERMS.—A loan under this subsection—
‘‘(A) shall provide amounts for the eligible uses under
paragraph (3) in a single loan disbursement of loan prin-
cipal;
‘‘(B) shall be repaid, as to principal and interest, on
behalf of the borrower using amounts recaptured from con-
tracts for interest reduction payments pursuant to clause
(i) or (ii) of paragraph (7)(A);
‘‘(C) shall have a term to maturity of a duration not
shorter than the remaining period for which the interest
reduction payments for the insured mortgage or mortgages
that fund repayment of the loan would have continued
after extinguishment or writedown of the mortgage (in
accordance with the terms of such mortgage in effect imme-
diately before such extinguishment or writedown);
‘‘(D) shall bear interest at a rate, as determined by
the Secretary of the Treasury, that is based upon the
current market yields on outstanding marketable obliga-
tions of the United States having comparable maturities;
and
‘‘(E) shall involve a principal obligation of an amount
not exceeding the amount that can be repaid using amounts
described in subparagraph (B) over the term determined
in accordance with subparagraph (C), with interest at the
rate determined under subparagraph (D).’’.
(b) IRP CAPITAL GRANTS REQUIREMENT FOR EXTENSION OF LOW-
INCOME
AFFORDABILITY
REQUIREMENTS.—Section 236(s) of the
National Housing Act (12 U.S.C. 1715z–1(s)) is amended—
(1) in paragraph (2)—
(A) by redesignating subparagraphs (C) and (D), as
amended by the preceding provisions of this section, as
subparagraphs (D) and (E), respectively; and
(B) by inserting after subparagraph (B) the following
new subparagraph:
‘‘(C) the project owner enters into such binding commit-
ments as the Secretary may require (which shall be
applicable to any subsequent owner) to ensure that the
owner will continue to operate the project in accordance
with all low-income affordability restrictions for the project
in connection with the Federal assistance for the project
for a period having a duration that is not less than the
period referred to in paragraph (5)(C);’’; and
(2) in paragraph (4)(B), by inserting ‘‘and consistent with
paragraph (2)(C)’’ before the period at the end.
SEC. 534. TECHNICAL ASSISTANCE.
Section 514(f )(3) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended
by inserting after ‘‘new owners)’’ the following: ‘‘, for technical
assistance for preservation of low-income housing for which project-
based rental assistance is provided at below market rent levels
H. R. 2684—75
and may not be renewed (including transfer of developments to
tenant groups, nonprofit organizations, and public entities),’’.
SEC. 535. TERMINATION OF SECTION 8 CONTRACT AND DURATION
OF RENEWAL CONTRACT.
Section 8(c)(8) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)(8)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘terminating’’ and inserting ‘‘termi-
nation of’’; and
(B) by striking the third comma of the first sentence
and all that follows through the end of the subparagraph
and inserting the following: ‘‘. The notice shall also include
a statement that, if the Congress makes funds available,
the owner and the Secretary may agree to a renewal of
the contract, thus avoiding termination, and that in the
event of termination the Department of Housing and Urban
Development will provide tenant-based rental assistance
to all eligible residents, enabling them to choose the place
they wish to rent, which is likely to include the dwelling
unit in which they currently reside. Any contract covered
by this paragraph that is renewed may be renewed for
a period of up to 1 year or any number or years, with
payments subject to the availability of appropriations for
any year.’’;
(2) by striking subparagraph (B);
(3) in subparagraph (C)—
(A) by striking the first sentence;
(B) by striking ‘‘in the immediately preceding sen-
tence’’;
(C) by striking ‘‘180-day’’ each place it appears;
(D) by striking ‘‘such period’’ and inserting ‘‘1 year’’;
and
(E) by striking ‘‘180 days’’ and inserting ‘‘1 year’’; and
(4) by redesignating subparagraphs (C), (D), and (E), as
amended by the preceding provisions of this subsection, as
subparagraphs (B), (C), and (D), respectively.
SEC. 
536. 
ELIGIBILITY 
OF 
RESIDENTS 
OF 
FLEXIBLE 
SUBSIDY
PROJECTS FOR ENHANCED VOUCHERS.
Section 201 of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z–1a) is amended by adding
at the end the following new subsection:
‘‘(p) ENHANCED VOUCHER ELIGIBILITY.—Notwithstanding any
other provision of law, any project that receives or has received
assistance under this section and which is the subject of a trans-
action under which the project is preserved as affordable housing,
as determined by the Secretary, shall be considered eligible low-
income housing under section 229 of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12 U.S.C.
4119) for purposes of eligibility of residents of such project for
enhanced voucher assistance provided under section 8(t) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(t)) (pursuant
to section 223(f ) of the Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990 (12 U.S.C. 4113(f ))).’’.
H. R. 2684—76
SEC. 537. ENHANCED DISPOSITION AUTHORITY.
Section 204 of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appropriations
Act, 1997 (12 U.S.C. 1715z–11a) is amended—
(1) by striking ‘‘and 1999’’ and inserting ‘‘1999, and 2000’’;
and
(2) by striking ‘‘or demolition’’ and inserting ‘‘, demolition,
or construction on the properties (which shall be eligible
whether vacant or occupied)’’.
SEC. 538. UNIFIED ENHANCED VOUCHER AUTHORITY.
(a) IN GENERAL.—Section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f) is amended by inserting after subsection
(s) the following new subsection:
‘‘(t) ENHANCED VOUCHERS.—
‘‘(1) IN GENERAL.—Enhanced voucher assistance under this
subsection for a family shall be voucher assistance under sub-
section (o), except that under such enhanced voucher
assistance—
‘‘(A) subject only to subparagraph (D), the assisted
family shall pay as rent no less than the amount the
family was paying on the date of the eligibility event for
the project in which the family was residing on such date;
‘‘(B) during any period that the assisted family con-
tinues residing in the same project in which the family
was residing on the date of the eligibility event for the
project, if the rent for the dwelling unit of the family
in such project exceeds the applicable payment standard
established pursuant to subsection (o) for the unit, the
amount of rental assistance provided on behalf of the family
shall be determined using a payment standard that is
equal to the rent for the dwelling unit (as such rent may
be increased from time-to-time), subject to paragraph
(10)(A) of subsection (o);
‘‘(C) subparagraph (B) of this paragraph shall not apply
and the payment standard for the dwelling unit occupied
by the family shall be determined in accordance with sub-
section (o) if—
‘‘(i) the assisted family moves, at any time, from
such project; or
‘‘(ii) the voucher is made available for use by any
family other than the original family on behalf of whom
the voucher was provided; and
‘‘(D) if the income of the assisted family declines to
a significant extent, the percentage of income paid by the
family for rent shall not exceed the greater of 30 percent
or the percentage of income paid at the time of the eligi-
bility event for the project.
‘‘(2) ELIGIBILITY EVENT.—For purposes of this subsection,
the term ‘eligibility event’ means, with respect to a multifamily
housing project, the prepayment of the mortgage on such
housing project, the voluntary termination of the insurance
contract for the mortgage for such housing project, the termi-
nation or expiration of the contract for rental assistance under
section 8 of the United States Housing Act of 1937 for such
housing project, or the transaction under which the project
is preserved as affordable housing, that, under paragraphs
H. R. 2684—77
(3) and (4) of section 515(c), section 524(d) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note), section 223(f ) of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12
U.S.C. 4113(f )), or section 201(p) of the Housing and Commu-
nity Development Amendments of 1978 (12 U.S.C. 1715z–1a(p)),
results in tenants in such housing project being eligible for
enhanced voucher assistance under this subsection.
‘‘(3) TREATMENT OF ENHANCED VOUCHERS PROVIDED UNDER
OTHER AUTHORITY.—
‘‘(A) IN GENERAL.—Notwithstanding any other provi-
sion of law, any enhanced voucher assistance provided
under any authority specified in subparagraph (B) shall
(regardless of the date that the amounts for providing
such assistance were made available) be treated, and sub-
ject to the same requirements, as enhanced voucher assist-
ance under this subsection.
‘‘(B) 
IDENTIFICATION
OF
OTHER
AUTHORITY.—The
authority specified in this subparagraph is the authority
under—
‘‘(i) the 10th, 11th, and 12th provisos under the
‘Preserving Existing Housing Investment’ account in
title II of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997 (Public Law 104–
204; 110 Stat. 2884), pursuant to such provisos, the
first proviso under the ‘Housing Certificate Fund’
account in title II of the Departments of Veterans
Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1998 (Public
Law 105–65; 111 Stat. 1351), or the first proviso under
the ‘Housing Certificate Fund’ account in title II of
the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appro-
priations Act, 1999 (Public Law 105–276; 112 Stat.
2469); and
‘‘(ii) paragraphs (3) and (4) of section 515(c) of
the Multifamily Assisted Housing Reform and Afford-
ability Act of 1997 (42 U.S.C. 1437f note), as in effect
before the enactment of this Act.
‘‘(4) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are
authorized to be appropriated for each of fiscal years 2000,
2001, 2002, 2003, and 2004 such sums as may be necessary
for enhanced voucher assistance under this subsection.’’.
(b) ENHANCED VOUCHERS UNDER MAHRAA.—Section 515(c)
of the Multifamily Assisted Housing Reform and Affordability Act
of 1997 (42 U.S.C. 1437f note) is amended by striking paragraph
(4) and inserting the following new paragraph:
‘‘(4) ASSISTANCE THROUGH ENHANCED VOUCHERS.—In the
case of any family described in paragraph (3) that resides
in a project described in section 512(2)(B), the tenant-based
assistance provided shall be enhanced voucher assistance under
section 8(t) of the United States Housing Act of 1937 (42
U.S.C. 1437f(t)).’’.
(c) ENHANCED VOUCHERS FOR CERTAIN TENANTS IN PREPAY-
MENT AND VOLUNTARY TERMINATION PROPERTIES.—Section 223 of
H. R. 2684—78
the Low-Income Housing Preservation and Resident Homeowner-
ship Act of 1990 (12 U.S.C. 4113) is amended by adding at the
end the following new subsection:
‘‘(f ) ENHANCED VOUCHER ASSISTANCE FOR CERTAIN TENANTS.—
‘‘(1) AUTHORITY.—In lieu of benefits under subsections (b),
(c), and (d), and subject to the availability of appropriated
amounts, each family described in paragraph (2) shall be offered
enhanced voucher assistance under section 8(t) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(t)).
‘‘(2) ELIGIBLE FAMILIES.—A family described in this para-
graph is a family that is—
‘‘(A)(i) a low-income family; or
‘‘(ii) a moderate-income family that is: (I) an elderly
family; (II) a disabled family; or (III) residing in a low-
vacancy area; and
‘‘(B) residing in eligible low-income housing on the
date of the prepayment of the mortgage or voluntary termi-
nation of the insurance contract.’’.
This Act may be cited as the ‘‘Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 2000’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.