113
Low-Income Housing Preservation and Resident
Homeownership Act of 1990.
‘‘(B) UNOCCUPIED UNITS.—An unoccupied
dwelling unit, but only if—
‘‘(i)(I) a family vacates the dwelling
unit before the expiration date of the lease
for occupancy, or (II) a good faith effort is
being made to fill the unoccupied unit; and
‘‘(ii) the costs of such vacancy are not
charged to or paid by the family vacating
the dwelling unit.
Payments for units referred to in this subpara-
graph may be made only for a period not exceed-
ing 60 days, except that such payments may be
made, in the case of a newly constructed or sub-
stantially rehabilitated project, after the expira-
tion of such 60-day period in an amount equal
to the debt service attributable to such an unoc-
cupied dwelling unit for a period not to exceed
one year, if a good faith effort is being made to
fill the unit and the unit provides decent, safe,
and sanitary housing. No such payment may be
made after the expiration of such 60-day period
if the Secretary determines that the dwelling
unit is in a project which provides the owner
114
with revenues exceeding the costs incurred by
such owner with respect to such project.
‘‘(2) OWNER’S STATUS.—A public housing agen-
cy shall not approve the rental of a dwelling unit if—
‘‘(A) the owner—
‘‘(i) is debarred, suspended, or subject
to limited denial of participation under
part 24 of title 24, Code of Federal Regula-
tions; or
‘‘(ii) has been convicted of drug traf-
ficking;
‘‘(B) the owner owns any other dwelling
unit in the same project, which is assisted under
this section and at such time, such unit is not
in compliance in any material respect with
standards for housing quality for units so as-
sisted, but the public housing agency shall pro-
vide an owner of any such dwelling unit a rea-
sonable opportunity to correct the noncompliance
before denying approval; or
‘‘(C) the owner owns or has owned dwelling
units in the same project, which are assisted
under this section (or any other program of the
Federal Government for housing assistance) and
such units have repeatedly or regularly failed to
115
comply with the housing quality standards ap-
plicable to such units.
‘‘(h) OTHER
PROVISIONS
OF
ASSISTANCE
CON-
TRACTS.—Contracts to make assistance payments entered
into by any public housing agency (or by the Secretary)
with an owner of existing housing units shall meet the fol-
lowing requirements:
‘‘(1) CONTRACT TERM.—Each assistance contract
shall have a term of not less than one month nor more
than 180 months. The Secretary shall permit public
housing agencies to enter into assistance contracts
having terms of less than 12 months to the extent nec-
essary to avoid disruption in assistance to eligible
families if the annual contributions contract for the
agency under subsection (b) will expire within 1 year.
‘‘(2) PREFERENCES.—Each assistance contract
shall provide that, in making assistance available
pursuant to the contract—
‘‘(A) for not less than 70 percent of the fam-
ilies who initially receive project-based assist-
ance, and
‘‘(B) for not less than 90 percent of the fam-
ilies who initially receive tenant-based assistance
in any 1-year period,
116
preference shall be given to families that (i) occupy
substandard housing (including families that are
homeless or living in a shelter for homeless families),
(ii) are paying more than 50 percent of family in-
come for rent, or (iii) are involuntarily displaced (in-
cluding displacement because of disposition of a mul-
tifamily housing project under section 203 of the
Housing and Community Development Amendments
of 1978) at the time they are seeking assistance under
this section.
‘‘(3) SECONDARY
PREFERENCES.—Each assist-
ance contract shall provide that, for any assistance
remaining in any 1-year period after assistance is
made available pursuant to paragraph (2), preference
for such assistance shall be given to families who
qualify under a system of local preferences established
by the public housing agency in writing and after
public hearing to respond to local housing needs and
priorities, which may include—
‘‘(A) assisting very low-income families who
either reside in transitional housing assisted
under title IV of the Stewart B. McKinney
Homeless Assistance Act or participate in a pro-
gram designed to provide public assistance re-
117
cipients with greater access to employment and
educational opportunities;
‘‘(B) assisting families in accordance with
subsection (q)(1)(B);
‘‘(C) assisting families identified by local
public agencies involved in providing for the wel-
fare of children as having a lack of adequate
housing that is a primary factor in the immi-
nent placement of a child in foster care, or in
preventing the discharge of a child from foster
care and reunification with his or her family;
‘‘(D) assisting youth, upon discharge from
foster care, in cases in which return to the fam-
ily or extended family or adoption is not avail-
able;
‘‘(E) assisting veterans who are eligible and
have applied for assistance, will use the assist-
ance for a dwelling unit designed for the handi-
capped, and, upon discharge or eligibility for
discharge from a hospital or nursing home, have
physical disability which, because of the configu-
ration of their homes, prevents them from access
to or use of their homes; and
‘‘(F) achieving other objectives of national
housing policy as established by law.
118
A public housing agency may not establish a pref-
erence for assistance that provides preference based on
residency in the jurisdiction of the public housing
agency.
‘‘(4) TENANT SELECTION.—Each assistance con-
tract shall provide that the selection of tenants for
such dwelling units shall be the function of the owner,
subject to any provisions of the annual contributions
contract between the Secretary and the agency. The
owner shall use tenant selection criteria, which shall
provide as follows:
‘‘(A) PROHIBITION OF PERSONS ENGAGED
IN DRUG ACTIVITY.—The criteria shall prohibit
any individual or family evicted from housing
assisted under this Act by reason of drug-related
criminal activity from having a preference under
any provision of this paragraph for 3 years un-
less the evicted tenant successfully completes a re-
habilitation program approved by the agency or
owner. The agency or the owner may waive the
application of the preceding sentence under
standards established by the Secretary, which
shall provide for such waiver for any member of
a family of an individual prohibited from ten-
ancy under this subparagraph who the agency or
119
owner determines clearly did not participate in
and had no knowledge of such criminal activity
or when circumstances leading to eviction no
longer exist.
‘‘(B) OTHER REQUIREMENTS FOR PROJECT-
BASED
ASSISTANCE.—With 
respect 
only 
to
project-based assistance, the criteria shall—
‘‘(i) be consistent with the purpose of
improving housing opportunities for very
low-income families;
‘‘(ii) be reasonably related to program
eligibility and an applicant’s ability to per-
form the obligations of the assisted lease;
‘‘(iii) be established in writing; and
‘‘(iv) provide for the owner to prompt-
ly provide to any rejected applicant (I)
written notice of the grounds for the rejec-
tion, and (II) an opportunity to meet with
the decision maker to evaluate the validity
of the reasons for rejection and rectify any
erroneous decisions.
‘‘(5) LEASE PROVISIONS.—Each assistance con-
tract shall provide that the lease between the tenant
of any unit and the owner—
120
‘‘(A) shall be for at least one year or the
term of such assistance contract, whichever is
shorter;
‘‘(B) shall contain other terms and condi-
tions specified by the Secretary, including provi-
sions meeting the requirements of paragraphs
(6), (7), and (8); and
‘‘(C) shall be in a standard form which is
used in the local housing market area by the
owner and which applies generally to tenants in
the property who are not assisted under this sec-
tion, together with any addendum necessary to
include in the lease the provisions required under
subparagraph (B).
‘‘(6) GENERAL GROUNDS FOR TERMINATION OF
TENANCY.—Each assistance contract shall provide
that the owner shall not terminate the tenancy of the
tenant of any unit except for serious or repeated vio-
lation of the terms and conditions of the lease, for vio-
lation of applicable Federal, State, or local law, or for
other good cause. The withholding of assistance pay-
ments for a dwelling unit pursuant to paragraph (10)
shall not constitute good cause for termination of the
tenancy of the tenant of the unit.
121
‘‘(7) TERMINATION FOR ACTIVITY.—Each assist-
ance contract shall provide that any activity that
threatens the health, safety, or right to peaceful enjoy-
ment of the premises by other tenants, any activity
that threatens the health, safety, or right to peaceful
enjoyment of their residences by persons residing in
the immediate vicinity of the premises, or any drug-
related criminal activity on or near such premises,
engaged in by a tenant of any unit, any member of
the tenant’s household, or any guest or other person
under the tenant’s control, shall be cause for termi-
nation of tenancy.
‘‘(8) NOTICE OF TERMINATION OF TENANCY.—
Each assistance contract shall provide that before ter-
minating the tenancy of any tenant, the owner shall
provide written notice to the tenant specifying the
legal and factual grounds for such action, which shall
be provided in accordance with any requirements
under State or local law.
‘‘(9) MAINTENANCE AND REPLACEMENT.—Each
assistance contract shall provide that maintenance
and replacement (including redecoration) shall be
performed in accordance with the standard practice
for the building concerned as established by the owner
and agreed to by the agency (or the Secretary). With
122
the approval of the Secretary, the public housing
agency administering a contract under this section
with respect to existing housing units may exercise all
management and maintenance responsibilities with
respect to the units pursuant to a contract between
such agency and the owner of such units.
‘‘(10) ENFORCEMENT
OF
HOUSING
QUALITY
STANDARDS.—
‘‘(A) IN
GENERAL.—Each assistance con-
tract shall provide for action under this para-
graph if a unit assisted under this section fails
to comply with the standards for housing quality
for units so assisted.
‘‘(B) NOTIFICATION.—If the agency (or the
Secretary) determines that a unit assisted under
this section fails to comply in any material re-
spect with the standards for housing quality for
units so assisted, the agency (or the Secretary)
shall notify the tenant and owner of the unit of
the noncompliance and the possible actions
under this paragraph.
‘‘(C) CORRECTION
OF
NONCOMPLIANCE.—
The agency may approve the dwelling unit for
assistance under this section, on the condition
that the noncompliance is corrected, if (i) the
123
agency determines that the noncompliance is
minor and can be corrected within 15 days, (ii)
the agency provides notice of the conditional ap-
proval to the owner, (ii) the owner provides a
written commitment to the agency to correct the
noncompliance within the time period required
by the agency, not to exceed 15 days, and (iii)
the conditional approval will expedite the occu-
pancy of an eligible tenant with assistance under
this section. The agency shall reinspect any unit
for which conditional approval is made under
this subparagraph within the period referred to
in clause (ii) of the preceding sentence, and if
the agency determines that the noncompliance is
not corrected, the agency may take action under
subparagraph (D).
‘‘(D) FAILURE TO CORRECT SERIOUS NON-
COMPLIANCE.—If any serious noncompliance
with such standards is not corrected within a
reasonable period of time after such notification,
the agency (or the Secretary) shall withhold some
or all of the assistance amounts under this sec-
tion with respect to the unit and promptly—
124
‘‘(i) use such amounts to make nec-
essary repairs or contract to have such re-
pairs made;
‘‘(ii) release any withheld amounts to
the owner after repairs are made by the
owner, in an amount not exceeding the cost
of the repairs;
‘‘(iii) release any withheld amounts to
the applicable State or local housing agency
after repairs are made by such agency, in
an amount not exceeding the cost of the re-
pairs; or
‘‘(iv) upon the request of the tenant, re-
lease any withheld amounts to—
‘‘(I) the tenant to reimburse the
tenant for the reasonable cost of any
necessary repairs performed or paid
for by the tenant; or
‘‘(II) such person secured by the
tenant and approved by the agency (or
the Secretary) to make such necessary
repairs.
If an agency (or the Secretary) withholds any
assistance amounts pursuant to this subpara-
graph, the agency (or the Secretary) shall
125
promptly notify the tenant of the unit for which
assistance is withheld of the withholding and
may not terminate the assistance contract unless
and until the tenant has relocated to decent, safe,
and sanitary housing.
‘‘(11) STANDARDS AND OBLIGATIONS OF RESI-
DENCY IN HOUSING RECEIVING PROJECT-BASED AS-
SISTANCE.—Each assistance contract for project-based
assistance under subsection (i) shall provide that the
owner shall ensure and maintain compliance with
subtitle C of title VI of the Housing and Community
Development Act of 1992 and any regulations issued
under such subtitle.
‘‘(12) SERVICE COORDINATORS.—In determining
the amount of assistance provided under an assist-
ance contract for tenant-based assistance under this
paragraph, the Secretary may increase the amount
annually provided with respect to such project to pro-
vide for the costs of employing or otherwise retaining
the services of one or more service coordinators under
section 671 of the Housing and Community Develop-
ment Act of 1992 to coordinate the provision of any
services within the project for residents of the project
who are elderly or disabled families.
126
‘‘(13) OTHER.—Each assistance contract shall
provide that the agency and the owner shall carry out
such other appropriate terms and conditions as may
be mutually agreed to by the agency and owner.
‘‘(i) PROJECT-BASED ASSISTANCE.—
‘‘(1) AUTHORITY.—Pursuant to an annual con-
tributions contract entered into under subsection (b),
a public housing agency may enter into a assistance
contract providing for assistance payments under this
section that are attached to a structure.
‘‘(2) 
REQUIREMENTS.—Any 
public 
housing
agency may approve project-based assistance under
this subsection with respect to any or all of the assist-
ance provided by the public housing agency if—
‘‘(A) the owner agrees to rehabilitate the
structure other than with assistance under this
Act and the owner otherwise complies with the
requirements of this section; and
‘‘(B) in the case of any newly constructed
structure, the owner or prospective owner agrees
to construct the structure other than with assist-
ance under this Act and otherwise complies with
the requirements of this section.
‘‘(3) LONG-TERM AFFORDABILITY.—
127
‘‘(A) IN GENERAL.—In the case of an assist-
ance contract for project-based assistance under
this subsection, a public housing agency shall
enter into a contract with an owner, contingent
upon the future availability of appropriations
for the purpose of renewing expiring contracts
for assistance payments as provided in appro-
priations Acts, to extend the term of the underly-
ing assistance contract for such period or periods
as the Secretary determines to be appropriate to
achieve long-term affordability of the housing.
The contract shall obligate the owner to have the
extensions of the assistance contract accepted by
the owner and the owner’s successors in interest.
‘‘(B) TERM
OF
ASSISTANCE
FOR
LOW-IN-
COME
HOUSING
PRESERVATION.—The contract
for assistance may, at the option of the public
housing agency, have an initial term not exceed-
ing 15 years for any assistance that is at-
tached—
‘‘(i) to projects assisted under a State
program that permits the owner of the
projects to prepay a State assisted or sub-
sidized mortgage on the structure; and
128
‘‘(ii) for the purpose of providing in-
centives to owners to preserve such projects
for occupancy by low- and moderate-income
families (for the period that assistance
under this subparagraph is available) and
assisting low-income tenants to afford any
increases in rent that may be required to
induce the owner to maintain occupancy in
the project by low- and moderate-income
tenants.
Any assistance provided to low-income tenants
in the manner described in this subparagraph
shall not be considered for purposes of the limita-
tion under subsection (h)(2) regarding the per-
centage of families that may receive assistance
under this section who do not qualify for pref-
erences under such subsection.
‘‘(4) SERVICE COORDINATORS.—In determining
the amount of assistance provided under an assist-
ance contract for project-based assistance under this
subsection or a contract for assistance for housing
constructed or substantially rehabilitated pursuant to
assistance provided under section 8(b)(2) of this Act
(as such section existed before October 1, 1983), the
Secretary may increase the amount annually pro-
129
vided with respect to such project to provide for the
costs of employing or otherwise retaining the services
of one or more service coordinators under section 671
of the Housing and Community Development Act of
1992 to coordinate the provision of any services with-
in the project for residents of the project who are el-
derly or disabled families.
‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—
‘‘(1) TERMINATION
OF
TENANT-BASED
ASSIST-
ANCE.—
‘‘(A) NOTICE BY OWNER.—Any owner ter-
minating any assistance contract under this sec-
tion for tenant-based assistance shall provide
written notice to the public housing agency and
the tenants involved of the proposed termination
not less than 90 days before the termination of
the contract. The notice shall specify the date of
the termination and the reasons for the termi-
nation, with detail sufficient to enable the agen-
cy to evaluate whether the termination is lawful.
‘‘(B) REVIEW
OF
NOTICE
BY
PHA.—The
public housing agency shall review the notice
and issue a written finding of the legality of the
termination and the reasons for the termination.
Within 30 days after issuance of the findings, the
130
owner shall provide written notice to each tenant
of the decision, together with the written findings
of the agency regarding the termination.
‘‘(2) TERMINATION OF PROJECT-BASED ASSIST-
ANCE CONTRACTS.—
‘‘(A) NOTICE BY OWNER.—Any owner ter-
minating any assistance contract under sub-
section (i) for project-based assistance shall pro-
vide written notice to the Secretary and the ten-
ants involved of the proposed termination not
less than one year before the termination of the
contract. The notice shall specify the date of the
termination and the reasons for the termination,
with detail sufficient to enable the Secretary to
evaluate whether the termination is lawful and
whether additional actions can be taken by the
Secretary to avoid the termination. The notice
shall include a statement that the owner and the
Secretary may agree to a renewal of the contract,
thus avoiding the termination.
‘‘(B) REVIEW OF NOTICE BY SECRETARY.—
The Secretary shall review the notice, shall con-
sider whether additional actions can be taken by
the Secretary to avoid the termination, and shall
ensure a proper adjustment of the contract rents
132
‘‘(4) NOTICE OF RENT INCREASES.—Each assist-
ance contract for assistance under this section shall
require the owner to notify tenants at least 90 days
before the expiration of the contract of any rent in-
crease which may occur as a result of the expiration
of such contract.
‘‘(5) DEFINITION
OF
TERMINATION.—For pur-
poses of this subsection, the term ‘termination’ means
the expiration of the assistance contract or the refusal
of the owner to renew an assistance contract, which
shall include the termination of tenancy by an owner
for business reasons.
‘‘(k) RENTAL
ASSISTANCE
FOR
MANUFACTURED
HOUSING.—
‘‘(1) IN
GENERAL.—The Secretary may enter
into contracts to make assistance payments under this
subsection to assist low-income families by making
rental assistance payments on behalf of any such fam-
ily that utilizes a manufactured home as its principal
place of residence. In carrying out this subsection, the
Secretary may—
‘‘(A) enter into annual contributions con-
tracts with public housing agencies pursuant to
which such agencies may enter into assistance
contracts to make such assistance payments to
133
the owners of such real property, if such owners
agree to make good faith efforts to ensure that
such property complies with local health and
safety standards for water and sewage systems;
or
‘‘(B) enter into such contracts directly with
the owners of such real property, if such owners
agree to make good faith efforts to ensure that
such property complies with local health and
safety standards for water and sewage systems.
‘‘(2) USE
OF
ASSISTANCE.—Rental assistance
payments under this subsection may be made with re-
spect to the rental of the real property on which is lo-
cated a manufactured home that is owned by a low-
income family or with respect to the rental by such
a family of a manufactured home and the real prop-
erty on which it is located.
‘‘(3) ASSISTANCE
FOR
RENTAL
OF
MANUFAC-
TURED HOME SITE.—
‘‘(A) MAXIMUM
MONTHLY
RENT.—A con-
tract entered into pursuant to this paragraph
shall establish the maximum monthly rent (in-
cluding maintenance and management charges)
that the owner is entitled to receive for the space
on which a manufactured home is located and
134
with respect to which assistance payments are to
be made. The maximum monthly rent shall not
exceed an amount approved or established by the
Secretary.
‘‘(B) AMOUNT
OF
MONTHLY
ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents real property that is assisted under this
paragraph, and on which is located a manufac-
tured home that is owned by such family shall
be the difference between the rent the family is
required to pay under section 3(a) and the sum
of—
‘‘(i) the monthly payment made by
such family to amortize the cost of purchas-
ing the manufactured home;
‘‘(ii) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary; and
‘‘(iii) the maximum monthly rent per-
mitted with respect to the real property
which is rented by such family for the pur-
pose of locating its manufactured home;
135
except that in no case may such assistance exceed
the total amount of such maximum monthly
rent.
‘‘(4) ASSISTANCE
FOR
RENTAL
OF
MANUFAC-
TURED HOME AND SITE.—
‘‘(A) MAXIMUM MONTHLY RENT.—Contracts
entered into pursuant to this paragraph shall es-
tablish the maximum monthly rent permitted
with respect to the manufactured home and the
real property on which it is located and with re-
spect to which assistance payments are to be
made. The maximum monthly rent shall not ex-
ceed an amount approved or established by the
Secretary.
‘‘(B) AMOUNT
OF
MONTHLY
ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents a manufactured home and the real prop-
erty on which it is located and that is assisted
under this paragraph shall be the difference be-
tween the rent the family is required to pay
under section 3(a) and the sum of—
‘‘(i) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary; and
136
‘‘(ii) the maximum monthly rent per-
mitted with respect to the manufactured
home and real property on which it is lo-
cated.
‘‘(5) 
ADJUSTMENT
OF
MAXIMUM
MONTHLY
RENTS.—The provisions of paragraphs (3) through
(7) of subsection (d) shall apply to the adjustments of
maximum monthly rents under this subsection.
‘‘(6) CONTRACT
TERM.—Each contract entered
into under the subsection shall be for a term of not
less than one month and not more than 180 months;
except that in any case in which the manufactured
home park is substantially rehabilitated or newly con-
structed, such term may not be less than 240 months,
nor more than the maximum term for a manufac-
tured home loan permitted under section 2(b) of the
National Housing Act.
‘‘(7) APPLICABILITY.—The Secretary may carry
out this subsection without regard to whether the
manufactured home park is existing, substantially re-
habilitated, or newly constructed.
‘‘(8) LIMITATION ON SUBSTANTIALLY REHABILI-
TATED
AND
NEWLY
CONSTRUCTED
MANUFACTURED
HOME PARKS.—In the case of any substantially reha-
bilitated or newly constructed manufactured home
137
park containing spaces with respect to which assist-
ance is made under this subsection, the principal
amount of the mortgage attributable to the rental
spaces within the park may not exceed an amount es-
tablished by the Secretary which is equal to or less
than the limitation for manufactured home parks de-
scribed in section 207(c)(3) of the National Housing
Act, and the Secretary may increase such limitation
in high cost areas in the manner described in such
section.
‘‘(9) OTHER
REQUIREMENTS.—The Secretary
may prescribe other terms and conditions necessary
for the purpose of carrying out this subsection and
that are consistent with the purposes of this sub-
section.
‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—
‘‘(1) AUTHORITY.—In making assistance avail-
able under this section and assistance under section
441 and part V of subtitle F of title IV of the Stewart
B. McKinney Homeless Assistance Act, the Secretary
may provide assistance with respect to residential
properties in which some or all of the dwelling units
do not contain bathroom or kitchen facilities, if the
unit of general local government in which the prop-
erty is located and the local public housing agency
138
certify to the Secretary that the property complies
with local health and safety standards.
‘‘(2) WAIVER
OF
LIMITATIONS
ON
ASSISTANCE
FOR SINGLE PERSONS.—The Secretary may waive, in
appropriate cases, the limitation and preference in
section 3(b)(3)(A) with respect to the assistance made
available under this subsection.
‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI-
LIES.—
‘‘(1) SHARED HOUSING.—To assist elderly fami-
lies and disabled families (as defined in section 3(b))
who elect to live in a shared housing arrangement in
which they benefit as a result of sharing the facilities
of a dwelling with others in a manner that effectively
and efficiently meets their housing needs and thereby
reduces their costs of housing, the Secretary shall per-
mit assistance provided under this section to be used
by such families in such arrangements. In carrying
out this subsection, the Secretary shall issue mini-
mum habitability standards for the purpose of ensur-
ing decent, safe, and sanitary housing for such fami-
lies while taking into account the special cir-
cumstances of shared housing.
‘‘(2) PRIORITY FOR NONELDERLY DISABLED FAM-
ILIES.—In allocating assistance under this section, a
139
public housing agency that serves more than one unit
of general local government may, at the discretion of
the agency, give priority to disabled families that are
not elderly families.
‘‘(3) AUTHORITY TO PROVIDE PREFERENCES FOR
THE ELDERLY AND RESERVE UNITS FOR THE DIS-
ABLED.—Notwithstanding subsection (h)(2) or (3), an
owner of a covered section 8 housing project (as such
term is defined in section 659 of the Housing and
Community Development Act of 1992) may give pref-
erence for occupancy of dwelling units in the project,
and reserve units for occupancy, in accordance with
subtitle D of title VI of the Housing and Community
Development Act of 1992.
‘‘(n) ADMINISTRATIVE FEES.—
‘‘(1) BASIC
FEE
FOR
TENANT-BASED
RENTAL
PROGRAM.—The Secretary shall establish a fee for the
costs incurred by a public housing agency in admin-
istering the program for rental assistance under this
section, which shall be, together with other fees au-
thorized under this subsection, included in any
amounts provided to the public housing agency under
the annual contributions contract for the agency. The
amount of the fee for each month for which a dwelling
unit is covered by an assistance contract shall be 8.2
140
percent of the fair market rental established under
subsection (e) for a 2-bedroom existing rental dwelling
unit in the market area of the public housing agency.
The Secretary may increase the fee if necessary to re-
flect the higher costs of administering small programs
and programs operating over large geographic areas.
‘‘(2) OTHER FEES.—The Secretary shall also es-
tablish reasonable fees (as determined by the Sec-
retary) for—
‘‘(A) the costs of preliminary expenses that
a public housing agency documents it has in-
curred in connection with new allocations of as-
sistance under the program for rental assistance
under this section, which shall not exceed $275
per unit assisted;
‘‘(B) the costs incurred in assisting families
who experience difficulty (as determined by the
Secretary) in obtaining appropriate housing
under the program; and
‘‘(C) extraordinary costs approved by the
Secretary.
‘‘(3) BUDGET COMPLIANCE.—The Secretary may
establish or increase a fee in accordance with this
subsection only to such extent or in such amounts as
are provided in appropriation Acts.
141
‘‘(4) FEES FOR 1995 AND 1996.—Notwithstanding
any other provision of this subsection, the basic fee for
the costs incurred by a public housing agency in ad-
ministering the program for rental assistance under
this section during fiscal years 1995 and 1996 shall
be equal to the fee determined for fiscal year 1994
under section 11(a) of the HUD Demonstration Act
of 1993.
‘‘(o) PORTABILITY OF ASSISTANCE.—
‘‘(1) AUTHORITY.—Except as provided in para-
graphs (3) and (4), any family on behalf of whom is
provided tenant-based rental assistance under this
section and who moves to an eligible dwelling unit lo-
cated within the same State, or the same or a contig-
uous metropolitan statistical area, as the metropoli-
tan statistical area within which is located the area
of jurisdiction of the public housing agency approving
the assistance for the family, may use such assistance
to rent such eligible dwelling unit.
‘‘(2) 
ADMINISTRATION.—The 
public 
housing
agency having authority with respect to the dwelling
unit to which a family moves under this subsection
shall have the responsibility of carrying out the provi-
sions of this section with respect to the family. If no
public housing agency has authority with respect to
142
the dwelling unit to which a family moves under this
subsection, the public housing agency approving the
assistance shall have such responsibility.
‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA
RESIDENCY.—At the discretion of a public housing
agency, the agency may provide that a family may
use tenant-based rental assistance under this section
to rent an eligible dwelling unit that is not located
within the area of jurisdiction of the agency approv-
ing the assistance only if, before such use, the family
has rented and occupied an eligible dwelling unit
within such original jurisdiction for not less than 12
consecutive months using assistance provided by such
agency.
‘‘(4) PROHIBITION OF PORTABILITY IN CASES OF
LEASE VIOLATION.—A family may not use tenant-
based rental assistance as provided in paragraph (1)
if the family has moved from a dwelling unit in vio-
lation of the lease for the dwelling unit.
‘‘(5) ALLOCATIONS
DUE
TO
PORTABILITY.—In
determining the amount of rental assistance provided
under an annual contributions contract for any fiscal
year, the Secretary shall consider any reduction in
the number of resident families incurred by a public
143
housing agency in the preceding fiscal year as a re-
sult of the provisions of this subsection.
‘‘(6) PROVISION
OF
RENTAL
ASSISTANCE
FOR
PORTABILITY PURPOSES.—
‘‘(A) AMOUNT.—To the extent amounts for
assistance under this section that are reserved
under section 213(d)(4) of the Housing and
Community Development Act of 1974 are avail-
able in a fiscal year, the Secretary shall provide
rental assistance under this section in accord-
ance with this paragraph.
‘‘(B) USE.—Amounts provided for use
under this paragraph shall be used only to pro-
vide a public housing agency with additional
amounts (as determined under subparagraph
(C)) to provide assistance for families on behalf
of whom assistance is provided under this section
by another public housing agency and who move
into an eligible dwelling unit located within the
area of jurisdiction of the agency to receive as-
sistance under this paragraph.
‘‘(C) REQUIREMENT.—Amounts provided
for use under this paragraph may be made
available to a public housing agency in a fiscal
year only if, during such fiscal year, the agency
144
has provided assistance pursuant to the first sen-
tence of paragraph (2) on behalf of families who
have moved into eligible dwelling units located
within the area of jurisdiction of the agency in
an amount not less than the lesser of (i) 5 per-
cent of total amount received by the agency for
assistance under this section for the fiscal year,
or (ii) the amount necessary to assist 25 percent
of average annual number of families previously
assisted by the agency who relinquish such as-
sistance in a year (based on the preceding 3 cal-
endar years).
‘‘(p) PROHIBITION OF DISCRIMINATION.—In selecting
families for the provision of assistance under this section,
a public housing agency may not exclude or penalize a fam-
ily solely because the family resides in a public housing
project.
‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—
‘‘(1) ASSISTANCE FOR RESIDENTS OF REHABILI-
TATED PROJECTS.—In the case of low-income families
living in rental projects rehabilitated under section
17 of this Act or section 533 of the Housing Act of
1949 before rehabilitation—
‘‘(A) tenant-based rental assistance under
this section shall be provided for families who
145
are required to move out of their dwelling units
because of the physical rehabilitation activities
or because of overcrowding;
‘‘(B) at the discretion of each public hous-
ing agency, tenant-based rental assistance under
this section may be provided for families who
would have to pay more than 30 percent of their
adjusted income for rent after rehabilitation
whether they choose to remain in, or to move
from, the project; and
‘‘(C) the Secretary shall allocate tenant-
based rental assistance provided under this sec-
tion to ensure that sufficient resources are avail-
able to address the physical or economic dis-
placement, or potential economic displacement,
of existing tenants pursuant to subparagraphs
(A) and (B).
‘‘(2) LOAN MANAGEMENT ASSISTANCE.—
‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section through a
loan management program to assist financially
troubled multifamily residential housing projects
(i) subject to mortgages that are insured under
the National Housing Act or mortgages that have
been assigned to the Secretary, (ii) that were
146
held by the Secretary and have been sold, and
(iii) that were assisted under section 202 of the
Housing Act of 1959.
‘‘(B) ELIGIBILITY.—The eligibility of a
multifamily residential project for loan manage-
ment assistance under this paragraph shall be
determined without regard to whether the project
is subsidized or unsubsidized.
‘‘(C) EXTENSION OF CONTRACT.—The Sec-
retary shall extend any expiring contract entered
into under this section for loan management as-
sistance or execute a new contract for project-
based loan management assistance, if the owner
agrees to continue providing housing for low-in-
come families during the term of the contract.
‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—
‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section to be used
only in connection with tenant-based assistance
under this section on behalf of any family (i)
who is otherwise eligible for such assistance, and
(ii) who the public child welfare agency for the
jurisdiction has certified is a family for whom
the lack of adequate housing is a primary factor
in the imminent placement of the family’s child
147
or children in out-of-home care or the delayed
discharge of a child or children to the family
from out-of-home care.
‘‘(B) ALLOCATION.—Any amounts made
available under this paragraph shall be allocated
by the Secretary through a national competition
among applicants based on demonstrated need
for assistance under this paragraph. To be con-
sidered for assistance, an applicant shall submit
to the Secretary a written proposal containing a
report from the public child welfare agency serv-
ing the jurisdiction of the applicant that de-
scribes how a lack of adequate housing in the ju-
risdiction is resulting in the initial or prolonged
separation of children from their families, and
how the applicant will coordinate with the pub-
lic child welfare agency to identify eligible fami-
lies and provide the families with assistance
under this paragraph.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) APPLICANT.—The term ‘applicant’
means a public housing agency.
‘‘(ii) PUBLIC CHILD WELFARE AGEN-
CY.—The term ‘public child welfare agency’
148
means the public agency responsible under
applicable State law for determining that a
child is at imminent risk of placement in
out-of-home care or that a child in out-of-
home care under the supervision of the pub-
lic agency may be returned to his or her
family.
‘‘(4) NEIGHBORHOOD CRIME FIGHTERS ASSIST-
ANCE.—
‘‘(A) ASSISTANCE.—To the extent amounts
for assistance under this section are reserved
under section 213(d)(4)(A) of the Housing and
Community Development Act of 1974 for use
under this paragraph, the Secretary may provide
such amounts to any public housing agency ap-
proved under subparagraph (C) to make assist-
ance payments under this paragraph on behalf of
any family described under subparagraph (B)
for the rental of a dwelling unit for the family
that, in the determination of the public housing
agency (after consultation with law enforcement
agency concerned) provides for the protection of
the family.
149
‘‘(B) ELIGIBLE
FAMILIES.—A family re-
ferred to in subparagraph (A) shall be any fam-
ily that—
‘‘(i) contains a member that has pro-
vided information to any Federal, State, or
local law enforcement agency that such law
enforcement agency determines substantially
contributes to the arrest, criminal prosecu-
tion, or conviction of any person for any
criminal activity in or near the area or
neighborhood in which the person providing
the information resides;
‘‘(ii) is likely, in the determination of
such law enforcement agency, to be subject
to a crime of violence directed at the family
on account of providing the information re-
ferred to in clause (i);
‘‘(iii) is legally residing, at the time
such information is provided to the law en-
forcement agency, in a dwelling unit in a
public housing project administered by a
public housing agency meeting the require-
ments of subparagraph (C) or in a dwelling
unit assisted under this section by such a
public housing agency; and
150
‘‘(iv) is not protected or assisted, or to
be protected or assisted, under chapter 224
of title 18, United States Code.
‘‘(C) ELIGIBLE PHA’S.—The Secretary may
provide amounts reserved for use under this
paragraph only to public housing agencies ap-
proved by the Secretary under this subpara-
graph. The Secretary may approve only agencies
that the Secretary determines have—
‘‘(i) established sufficient cooperation
with local law enforcement agencies to make
determinations to provide assistance under
this paragraph; and
‘‘(ii) coordinated with local law en-
forcement agencies to promptly inform the
public housing agency and the Secretary of
any determination that assistance under
this paragraph is appropriate for a family,
except that such coordination shall be sub-
ject to the procedures established under sub-
paragraph (F)(iii) to ensure confidentiality.
‘‘(D) GUIDELINES.—
‘‘(i) DETERMINATION
OF
NEED
AND
COORDINATION.—The Secretary shall estab-
151
lish guidelines jointly with the Attorney
General that—
‘‘(I) describe the types of situa-
tions under clauses (i) and (ii) of sub-
paragraph (B) in which assistance
may be provided under this paragraph,
which shall include situations in which
the information referred to in subpara-
graph (B)(i) is information regarding
any crime that is detrimental to the
health, safety, peace, or security of the
area or neighborhood in which the fam-
ily providing the information resides;
and
‘‘(II) describe elements of suffi-
cient cooperation between public hous-
ing agencies and law enforcement
agencies for purposes of subparagraph
(C)(i).
‘‘(ii) 
PROCEDURES.—The 
Secretary
shall establish procedures for public housing
agencies 
approved 
under 
subparagraph
(C)—
‘‘(I) to apply for, obtain, and ad-
minister amounts reserved for provid-
152
ing assistance under this paragraph on
behalf of families eligible under sub-
paragraph (B); and
‘‘(II) to provide for the termi-
nation of the tenancy of any family as-
sisted under this paragraph from the
dwelling unit in which the family is
residing so that such assistance may be
utilized.
‘‘(E) PHA ACTIONS.—Each public housing
agency approved by the Secretary under sub-
paragraph (C) shall—
‘‘(i) periodically notify Federal, State,
and local law enforcement agencies in the
area of jurisdiction of the public housing
agency of the availability of assistance
under this paragraph;
‘‘(ii) take such actions as may be ap-
propriate to inform residents of public hous-
ing projects administered by the agency and
dwelling units assisted under this section by
the agency of the availability of such assist-
ance; and
‘‘(iii) coordinate with such law enforce-
ment agencies to promptly inform the pub-
153
lic housing agency and the Secretary of any
determination that assistance under this
paragraph is appropriate for a family, ex-
cept that such coordination shall be subject
to the procedures established under subpara-
graph (F)(iii) to ensure confidentiality.
‘‘(F) NOTICE AND CONFIDENTIALITY.—The
Secretary shall—
‘‘(i) periodically notify public housing
agencies of the availability of assistance
under this paragraph;
‘‘(ii) encourage public housing agencies
to cooperate and coordinate with law en-
forcement agencies to encourage residents of
public housing projects and dwelling units
assisted under this section to provide infor-
mation to law enforcement agencies regard-
ing criminal activity; and
‘‘(iii) develop and implement proce-
dures to ensure the confidentiality of the
identity and new location of any family as-
sisted under this paragraph.
‘‘(G) OTHER ASSISTANCE.—A public hous-
ing agency that provides assistance under sub-
paragraph (A) for a family and the law enforce-
154
ment agency involved shall ensure that the fam-
ily is provided access to other assistance and
services appropriate to ensure that the relocation
of the family to the dwelling unit assisted under
subparagraph (A) and the neighborhood of such
dwelling unit occurs with the minimum possible
amount of disruption to the life of the family.
‘‘(H) LIABILITY.—The United States, and
its officers and employees, shall not be subject to
any civil liability on account of any decision to
provide or not to provide protection under this
paragraph.
‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—
‘‘(1) 5-YEAR PLAN.—Not later than 30 days after
the beginning of each fiscal year, the Secretary shall
publish in the Federal Register a plan for reducing,
to the extent feasible, year-to-year fluctuations in the
levels of budget authority that will be required over
the succeeding 5-year period to renew expiring assist-
ance contracts entered into under this section after the
enactment of the Housing and Community Develop-
ment Act of 1974. To the extent necessary to carry out
such plan and to the extent approved in appropria-
tions Acts, the Secretary is authorized to enter into
155
annual contributions contracts with terms of less than
60 months.
‘‘(2) NEW CONSTRUCTION AND SUBSTANTIAL RE-
HABILITATION PROJECTS.—Subject only to the avail-
ability of budget authority to carry out this para-
graph and to the absence of owners agreeing to enter
into new contracts, the Secretary shall enter into new
contracts under subtitle D of title I of the Housing
and Community Development Act of 1994 to provide
project-based assistance for qualified housing (as such
term is defined in section 163 of such subtitle) to
owners of such housing.
‘‘(s) GENERAL PROVISIONS.—
‘‘(1) PLEDGING ASSISTANCE CONTRACTS AS SE-
CURITY.—An owner may pledge, or offer as security
for any loan or obligation, an assistance contract en-
tered into pursuant to this section, but only if such
security is in connection with a project constructed or
rehabilitated pursuant to authority under this section
and the terms of the financing or any refinancing
have been approved by the Secretary.
‘‘(2) 
HOUSING
COUNSELING
FOR
RENTAL
CHOICE.—Each public housing agency that provides
rental housing assistance under this section on behalf
of low-income families shall notify such assisted fami-
156
lies of the availability of any entity in the jurisdic-
tion of the agency providing rental housing counsel-
ing under section 106(a)(4) of the Housing and
Urban Development Act of 1968.
‘‘(t) HOMEOWNERSHIP OPTION.—A public housing
agency providing assistance under this section may, at the
option of the agency, provide assistance for homeownership
under this subsection as follows:
‘‘(1) USE
OF
ASSISTANCE
FOR
HOMEOWNER-
SHIP.—A family receiving tenant-based assistance
under this section may receive assistance for occu-
pancy of a dwelling owned by one or more members
of the family if the family—
‘‘(A) is a first-time homeowner;
‘‘(B)(i) participates in the family self-suffi-
ciency program under section 23 of the public
housing agency providing the assistance; or
‘‘(ii) demonstrates that the family has in-
come from employment or other sources (other
than public assistance), as determined in accord-
ance with requirements of the Secretary, that is
not less than twice the fair market rental for the
area established under subsection (e)(1) (or such
other amount as may be established by the Sec-
retary);
157
‘‘(C) except as provided by the Secretary,
demonstrates at the time the family initially re-
ceives tenant-based assistance under this sub-
section that one or more adult members of the
family have achieved employment for the period
as the Secretary shall require;
‘‘(D) participates in a homeownership and
housing counseling program provided by the
agency; and
‘‘(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements estab-
lished by the Secretary.
‘‘(2) MONTHLY ASSISTANCE PAYMENT.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provisions of this section governing deter-
mination of the amount of assistance payments
under this section on behalf of a family, the
monthly assistance payment for any family as-
sisted under this subsection shall be the amount
by which the fair market rental for the area es-
tablished under subsection (e)(1) exceeds 30 per-
cent of the family’s monthly adjusted income; ex-
cept that the monthly assistance payment shall
not exceed the amount by which the monthly
158
homeownership expenses, as determined in ac-
cordance with requirements established by the
Secretary, exceeds 10 percent of the family’s
monthly income.
‘‘(B) EXCLUSION
OF
EQUITY
FROM
IN-
COME.—For purposes of determining the month-
ly assistance payment for a family, the Sec-
retary shall not include in family income an
amount imputed from the equity of the family in
a dwelling occupied by the family with assist-
ance under this subsection.
‘‘(3) RECAPTURE OF CERTAIN AMOUNTS.—Upon
sale of the dwelling by the family, the Secretary shall
recapture from any net proceeds the amount of addi-
tional assistance (as determined in accordance with
requirements established by the Secretary) paid to or
on behalf of the eligible family as a result of para-
graph (2)(B).
‘‘(4) DOWNPAYMENT REQUIREMENT.—Each pub-
lic housing agency providing assistance under this
subsection shall ensure that each family assisted shall
provide from its own resources not less than 80 per-
cent of any downpayment in connection with a loan
made for the purchase of a dwelling. Such resources
may include amounts from any escrow account for
159
the family established under section 23(d). Not more
than 20 percent of the downpayment may be provided
from other sources, such as from nonprofit entities
and programs of States and units of general local
government.
‘‘(5) INELIGIBILITY UNDER OTHER PROGRAMS.—
A family may not receive assistance under this sub-
section during any period when assistance is being
provided for the family under other Federal home-
ownership assistance programs, as determined by the
Secretary, which shall include assistance under the
HOME Investment Partnerships Act, the Homeowner-
ship and Opportunity Through HOPE Act, title II of
the Housing and Community Development Act of
1987, and section 502 of the Housing Act of 1949.
‘‘(6) 
INAPPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—Assistance under this subsection shall not be
subject to the requirements of the following provisions:
‘‘(A) Subsection (h)(5) of this section.
‘‘(B) Any other provisions of this section
governing maximum amounts payable to owners
and amounts payable by assisted families.
‘‘(C) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
161
less it complies with requirements established by
the Secretary.
‘‘(C) ALL MORTGAGES.—A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
‘‘(8) DEFINITION OF FIRST-TIME HOMEOWNER.—
For purposes of this subsection, the term ‘first-time
homeowner’ means—
‘‘(A) a family, no member of which has had
a present ownership interest in a principal resi-
dence during the 3 years preceding the date on
which the family initially receives assistance for
homeownership under this subsection; and
‘‘(B) any other family, as the Secretary
may prescribe.
‘‘(u) DEFINITIONS.—For purposes of this section:
‘‘(1) ANNUAL
CONTRIBUTIONS
CONTRACT.—The
term ‘annual contributions contract’ means a contract
under subsection (b) between the Secretary and a pub-
lic housing agency to provide amounts for rental as-
sistance payments under this section to the public
housing agency.
162
‘‘(2) ASSISTANCE CONTRACT.—The term ‘assist-
ance contract’ means a contract under subsection (c)
between a public housing agency (or the Secretary)
and an owner to make rental assistance payments
under this section to the owner.
‘‘(3) DEBT
SERVICE.—The term ‘debt service’
means the required payments for principal and inter-
est made with respect to a mortgage secured by hous-
ing assisted under this Act.
‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The
term ‘drug-related criminal activity’ means the illegal
manufacture, sale, distribution, use, or possession
with intent to manufacture, sell, distribute, or use, of
a controlled substance (as such term is defined in sec-
tion 102 of the Controlled Substances Act).
‘‘(5) OWNER.—The term ‘owner’ means any pri-
vate person or entity, including a cooperative, an
agency of the Federal Government, or a public hous-
ing agency, having the legal right to lease or sublease
dwelling units, and such term shall include any prin-
cipals, general partners, primary shareholders, and
other similar participants in any entity owning a
multifamily housing project (as such term is defined
in subsection (p)(3)), as well as the entity itself.
163
‘‘(6) PARTICIPATING
JURISDICTION.—The term
‘participating jurisdiction’ means a State or unit of
general local government designated by the Secretary
to be a participating jurisdiction under title II of the
Cranston-Gonzalez National Affordable Housing Act.
‘‘(7) PROJECT-BASED
ASSISTANCE.—The term
‘project-based assistance’ means rental assistance
under this section that is attached to a structure pur-
suant to subsection (i).
‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in-
clude, with respect to members of a cooperative, the
charges under the occupancy agreements between such
members and the cooperative.
‘‘(9) RENTAL ASSISTANCE.—The term ‘rental as-
sistance’ means assistance provided under this section
on behalf of low-income families for the rental of a
dwelling unit.
‘‘(10) TENANT-BASED
ASSISTANCE.—The term
‘tenant-based assistance’ means rental assistance
under this section that is not project-based assist-
ance.’’.
(b) CONFORMING AMENDMENTS.—
(1) UNITED STATES HOUSING ACT OF 1937.—The
United States Housing Act of 1937 is amended—
164
(A) 
in 
section 
3(a)(1) 
(42 
U.S.C.
1437a(a)(1)), by striking ‘‘(other than a family
assisted under section 8(o) or (y) or paying rent
under section 8(c)(3)(B))’’ and inserting ‘‘(other
than a family assisted under section 8(t) or pay-
ing rent under section 8(f)(2))’’;
(B) in section 5 (42 U.S.C. 1437c)—
(i) in subsection (c)(7)(C), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’;
(ii) in subsection (j)(1)(B)(i), by strik-
ing ‘‘section 8(o)(6)’’ and inserting ‘‘section
8’’; and
(iii) in subsection (j)(1)(D), by strik-
ing ‘‘subsection (b) or (o) of’’;
(C) in section 6(p)(1)(B) (42 U.S.C.
1437d(p)(1)(B)), by striking ‘‘holding certificates
and vouchers’’ and inserting ‘‘eligible and ap-
proved for assistance’’;
(D) in section 21(b)(3)—
(i) by striking ‘‘a certificate under sec-
tion 8(b)(1) or a housing voucher under sec-
tion 8(o)’’ and inserting ‘‘tenant-based as-
sistance under section 8’’; and
165
(ii) by striking ‘‘such certificate’’ and
inserting ‘‘such assistance’’;
(E) in section 23—
(i) in subsection (a), by striking ‘‘as-
sistance under the certificate and voucher
programs’’ and inserting ‘‘tenant-based as-
sistance’’;
(ii) in subsection (b)—
(I) in paragraph (1), by striking
‘‘assistance under subsection (b) or (o)
of’’ and inserting ‘‘tenant-based assist-
ance under’’; and
(II) in paragraph (4), by striking
‘‘Assistance under the certificate or
voucher 
programs’’ 
and 
inserting
‘‘Tenant-based assistance’’;
(iii) in subsection (c)(1), by striking
‘‘assistance under the certificate and vouch-
er programs of’’ and inserting ‘‘tenant-
based assistance from’’;
(iv) in subsection (d)(3) (as added by
section 185(b) of the Housing and Commu-
nity Development Act of 1992 (Public Law
102–550; 106 Stat. 3747)), by striking ‘‘sec-
tion 8(y)’’ and inserting ‘‘section 8(t)’’; and
166
(v) in subsection (h)(1)—
(I) by striking ‘‘section 8(q) for
the costs incurred in administering the
provision of certificate and voucher’’
and inserting ‘‘section 8(n) for the
costs incurred in administering the
provision of tenant-based’’; and
(II) 
by 
striking 
‘‘section
8(q)(2)(A)(i)’’ and inserting ‘‘section
8(n)(2)(A)’’; and
(G) 
in 
section 
304(g)(3) 
(42 
U.S.C.
1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)
and section 8(o)(9)’’ and inserting ‘‘section 8’’.
(2) 
ALLOCATION
OF
ASSISTED
HOUSING
FUNDS.—Section 213 of the Housing and Community
Development Act of 1974 (42 U.S.C. 1439) is amend-
ed—
(A) in subsection (d)—
(i) in paragraph (1)(A)(ii), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 8(d)’’ and inserting ‘‘section 8(i)’’;
(B) in subsection (e), by striking ‘‘section
8(b)(1)’’ and inserting ‘‘section 8’’.
167
(3) SUPPORTIVE HOUSING FOR ELDERLY FAMI-
LIES.—Section 801(d)(1)(B) of the Cranston-Gonzalez
National Affordable Housing Act (12 U.S.C. 1701q
note) is amended by striking ‘‘section 8(c)(1)’’ and
inserting ‘‘section 8(e)’’.
(4) ELDERLY INDEPENDENCE.—Section 803 of
the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8012) is amended—
(A) in subsection (a), by striking ‘‘housing
certificates and vouchers’’ and inserting ‘‘assist-
ance under section 8 of the United States Hous-
ing Act of 1937’’; and
(B) in subsection (b)—
(i) in the 1st sentence, by striking ‘‘not
more than 1,500 incremental vouchers and
certificates under sections 8(b) and 8(o) of
the United States Housing Act of 1937’’
and inserting ‘‘incremental assistance under
section 8 of the United States Housing Act
of 1937 on behalf of not more than 1,500
frail elderly persons’’;
(ii) in the 3rd sentence, by striking
‘‘the housing certificate or voucher program
of the agency’’ and inserting ‘‘the agency’s
168
program for assistance under such section
8’’; and
(iii) in the last sentence, by striking
‘‘sections 8(b) and 8(o)’’ and inserting ‘‘sec-
tion 8’’.
(5) REVISED
CONGREGATE
HOUSING
SERV-
ICES.—Section 802(k)(6)(B) of the Cranston-Gonzalez
National 
Affordable 
Housing 
Act 
(42 
U.S.C.
8011(k)(6)(B)) is amended by striking ‘‘subsection
(d)(2)’’ and inserting ‘‘subsection (i)’’.
(6) HOUSING FOR PERSONS WITH AIDS.—Sub-
title D of title VIII of the Cranston-Gonzalez National
Affordable Housing Act is amended—
(A) 
in 
section 
859(a)(2) 
(42 
U.S.C.
12908(a)(2)) by striking ‘‘section 8(p)’’ each
place it appears and inserting ‘‘section 8(m)(1)’’;
and
(B) in section 860(a) (42 U.S.C. 12909(a)),
by striking ‘‘section 8(n)’’ and inserting ‘‘section
8(l)’’.
(7) MC
KINNEY
ACT.—Section 441(b) of the
Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11401(b)) is amended—
(A) by striking ‘‘section 8(n)’’ and inserting
‘‘section 8(l)’’; and
169
(B) by adding at the end the following new
sentence: ‘‘Moderate rehabilitation under this sec-
tion shall be carried out in the manner provided
under the provisions of section 8(e) of the United
States Housing Act of 1937, as such section was
in effect (pursuant to section 289(b)(2) of the
Cranston-Gonzalez National Affordable Housing
Act) immediately before the enactment of the
Housing and Community Development Act of
1994.’’.
(8) FLEXIBLE SUBSIDY PROGRAM.—Section 201
of the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1715z–1a) is amended—
(A) in subsection (m)(2)(A), by striking
‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’; and
(B) in subsection (o), by striking ‘‘section
8(v)’’ and inserting ‘‘section 8(q)(2)’’.
(9) HUD-OWNED PROJECTS.—Section 203 of the
Housing and Community Development Amendments
of 1978 (12 U.S.C. 1701z–11) is amended—
(A) in subsection (e)(1)(D)—
(i) in clause (i)(IV), by inserting before
the semicolon the following: ‘‘, as such sec-
tion was in effect (pursuant to section
289(b)(2) of the Cranston-Gonzalez National
170
Affordable Housing Act) immediately before
the enactment of the Housing and Commu-
nity Development Act of 1994’’; and
(ii) in clause (ii), by striking ‘‘section
8(b)’’ and inserting ‘‘section 8’’;
(B) in subsection (g)(2), by striking ‘‘,
8(d)(1)(A)(i), and 8(o)(3)(B)’’ and inserting ‘‘
and 8(h)(2)(iii)’’; and
(C) in subsection (h)(2), by striking ‘‘sec-
tion 8(c)’’ and inserting ‘‘section 8(e)’’.
(10) HOUSING
ACCESS.—Section 204 of the
Housing and Community Development Amendments
of 1978 (12 U.S.C. 1701z–12) is amended by striking
‘‘to a holder of a certificate of eligibility under that
section solely because of such prospective tenant’s sta-
tus as a certificate holder’’ and inserting ‘‘to a family
that is approved for assistance under such section
solely because of such the family’s status as assisted
under such section’’.
(11) ELIHPA OF 1987.—The references in sec-
tions 225(b)(3)(D), 226(a)(3), and 228(a)(4) of the
Emergency Low Income Housing Preservation Act of
1987 (as in effect immediately before the enactment of
the Cranston-Gonzalez National Affordable Housing
Act) to section 8(b) of the United States Housing Act
171
of 1937 shall be considered to refer to section 8(e) of
the United States Housing Act of 1937 (as amended
by the Housing and Community Development Act of
1994).
(12) LIHPRHA OF 1990.—Title II of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 4101 et seq.) is amended—
(A) in section 215(a)—
(i) in paragraph (1), by striking ‘‘sec-
tion 8(c)’’ and inserting ‘‘section 8(e)’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 
8(c)(1)’’ 
and 
inserting 
‘‘section
8(e)(1)’’;
(B) in section 220(d)(3)(B), by striking
‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;
(C) in section 222—
(i) in subsection (a)(2)(D), by striking
‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;
and
(ii) in subsection (d)(2)(C)(i), by strik-
ing ‘‘sections 8(b) and 8(o) of the United
States Housing Act of 1937 (other than
project-based assistance attached to the
housing)’’ and inserting ‘‘tenant-based as-
172
sistance under section 8 of the United
States Housing Act of 1937’’;
(D) in section 223(a), by striking ‘‘the cer-
tificate and voucher programs under sections
8(b) and 8(o)’’ and inserting ‘‘section 8’’; and
(E) in section 226(b)(6)(B), by striking
‘‘sections 8(d)(1)(A) and 8(o)(3)’’ and inserting
‘‘section 8(h)(2)’’.
(13) DISASTER RELIEF.—
(A) TENANT-BASED
ASSISTANCE.—Section
931 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 1437c note) is
amended—
(i) in the section heading, by striking
‘‘CERTIFICATES
AND
VOUCHERS’’ and
inserting 
‘‘TENANT-BASED
ASSIST-
ANCE’’; and
(ii) by striking ‘‘assistance under the
certificate and voucher programs under sec-
tions 8 (b) and (o)’’ and inserting ‘‘tenant-
based assistance under section 8’’.
(B) MODERATE
REHABILITATION
ASSIST-
ANCE.—Section 932 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
1437c note) is amended by inserting after ‘‘such
173
Act’’ the following: ‘‘, as such section was in ef-
fect (pursuant to section 289(b)(2) of the Cran-
ston-Gonzalez National Affordable Housing Act)
immediately before the enactment of the Housing
and Community Development Act of 1994,’’.
(14) PUBLIC
HOUSING
MINCS
DEMONSTRA-
TION.—Section 522(f)(6)(B) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f
note) is amended—
(A) by striking ‘‘assistance under section
8(b)’’ and inserting ‘‘tenant-based assistance
under section 8’’; and
(B) by striking ‘‘section 8(d)(1)(A)(i)’’ and
inserting ‘‘section 8(h)(2)’’.
(15) PUBLIC HOUSING NEW CONSTRUCTION IN-
COME ELIGIBILITY.—Section 545(c)(2) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437f note) is amended by striking ‘‘section
8(d)(1)(A)(ii)’’ and inserting ‘‘section 8(h)(3)’’.
(16) SECTION
EXCESSIVE
RENT
BURDEN
DATA.—Section 550(b) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 1437f note)
is amended—
174
(A) in paragraph (1), by striking ‘‘under
the certificate and voucher programs established’’
and inserting ‘‘with tenant-based assistance’’;
(B) in the first sentence of paragraph (2),
by striking ‘‘, for each’’ and all that follows
through ‘‘participating in the program’’ and in-
serting ‘‘the percentage of families receiving ten-
ant-based assistance’’; and
(C) in paragraph (3), by striking ‘‘assist-
ance under the certicate or voucher program’’
and inserting ‘‘tenant-based assistance under sec-
tion 8 of the United States Housing Act of
1937’’.
(17) RURAL HOUSING PRESERVATION GRANTS.—
Section 533(a) of the Housing Act of 1949 (42 U.S.C.
1490m) is amended by striking ‘‘assistance payments
as provided by section 8(o)’’ and inserting ‘‘tenant-
based assistance payments under section 8 (including
assistance in accordance with section 8(f)(2)’’.
(18) FEDERALLY ASSISTED HOUSING OCCUPANCY
STANDARDS.—Section 643(b)(2) of the Housing and
Community Development Act of 1992 (42 U.S.C.
13603(b)(2)) is amended by striking ‘‘section 8(d)(1)’’
and inserting ‘‘section 8(h)’’.
175
(19) RESERVATION
OF
SECTION
UNITS
FOR
DISABLED
FAMILIES.—Section 655 of the Housing
and Community Development Act of 1992 (42 U.S.C.
13615) is amended by striking ‘‘section 8(d)(1)(A)(i)
of the United States Housing Act of 1937 and the
first sentence of section 8(o)(3)(B) of such Act’’ and
inserting ‘‘section 8(h)(2) of the United States Hous-
ing Act of 1937’’.
(20) GAO REPORT ON LEAD EXPOSURE.—Sec-
tion 1056(a) of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 4855) is amended by
striking ‘‘subsections (b) and (o) of’’.
(21) NATIONAL
HOUSING
ACT.—The National
Housing Act is amended—
(A) in section 203(v) (12 U.S.C. 1709(v)),
as added by section 185(c)(1)(B) of the Housing
and Community Development Act of 1992, by
striking ‘‘section 8(y)’’ and inserting ‘‘section
8(t)’’; and
(B) in section 236(f)(5)(A)(i) (12 U.S.C.
1715z–1(f)(5)(A)(i)), by striking ‘‘section 8(c)’’
and inserting ‘‘section 8(e)’’.
(c) APPLICABILITY.—The amendments under this sec-
tion are made on the date of the enactment of this Act, but
shall apply on and after October 1, 1995, only to assistance
176
under section 8 of the United States Housing Act of 1937
provided pursuant to an assistance contract entered into
or renewed on or after such date. Any such assistance pro-
vided pursuant to an assistance contract entered into before
such date shall be subject to the provisions of such section
8 as in effect immediately before the enactment of this Act
or otherwise applicable to such assistance.
(d) TRANSITION.—
(1) CONVERSION.—The Secretary may provide
for the conversion of assistance under the certificate
and voucher programs, as such programs existed be-
fore the date of the enactment of this Act, to the cer-
tificate program established under the amendments
under this section.
(2) CONTINUATION
OF
ASSISTANCE.—The Sec-
retary of Housing and Urban Development shall take
any action necessary to ensure that the provision of
assistance under section 8 of the United States Hous-
ing Act of 1937 to families receiving assistance under
such section on the date of the enactment of this Act
is not interrupted because of the amendments under
this section.
(e) REGULATIONS.—The Secretary shall implement the
amendments under this section by regulation issued after
notice and opportunity for public comment.
177
SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST
MORTGAGES FOR SECTION 8 PROJECTS.
Section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f), as amended by the preceding provisions
of this Act, is further amended by adding at the end the
following new subsection:
‘‘(v) REFINANCING INCENTIVE.—For a project that (1)
was constructed, substantially rehabilitated, or moderately
rehabilitated under this section, (2) is subject to an assist-
ance contract under this section, and (3) was subject to a
mortgage that has been refinanced under section 223(a)(7)
or section 223(f) of the National Housing Act to lower the
periodic debt service payments of the owner, the Secretary
may pay the owner the amount of the up front costs to the
owner of refinancing. The Secretary may make such pay-
ments only from savings in the amount of assistance pay-
ments, as determined by the Secretary on a project-by-
project basis and after application of amounts in accord-
ance with section 1012 of the Stewart B. McKinney Home-
less Assistance Amendments Act of 1988, that result from
the refinancing during the first year after the refinancing.’’.
SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS
RESIDUAL RECEIPTS.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall carry out a demonstration pro-
gram, in conjunction with State housing agencies, under
178
which the Secretary, at the request of owners of qualified
projects, makes amounts in the account for residual receipts
or excess amounts for the qualified projects available for use
under model programs to expand the supply of affordable
housing.
(b) LIMITATION.—The Secretary may not make any
amounts available for use under the demonstration program
under this section from the account of a qualified project
for residual receipts or excess amounts unless the amount
remaining in the account, together with replacement re-
serves for the project, is sufficient (in the determination of
the Secretary) to maintain, manage, and preserve the
project as affordable housing.
(c) QUALIFIED PROJECTS.—For purposes of this sec-
tion, the term ‘‘qualified project’’ means a housing project—
(1) assisted with project-based assistance under
section 8 of the United States Housing Act of 1937;
or
(2) constructed or substantially rehabilitated
pursuant to assistance provided under section 8(b)(2)
of the United States Housing Act of 1937, as such sec-
tion existed before November 30, 1983.
SEC. 145. TREATMENT OF CERTAIN PROJECTS.
(a) CONVERSION OF SECTION 23 PROJECT.—From
amounts available for the conversion of the Tamaqua
179
Highrise project in the Borough of Tamaqua, Pennsylvania,
from a leased housing contract under section 23 of the Unit-
ed States Housing Act of 1937 to tenant-based assistance
under section 8 of such Act, the Secretary of Housing and
Urban Development shall, to the extent such amounts are
made available in appropriation Acts, enter into an obliga-
tion for the conversion of the project to a project-based rent-
al assistance contract under section 8 of such Act, notwith-
standing the requirement for rehabilitation or the percent-
age limitations under section 8(d)(2) of such Act (as in ef-
fect before the date of the enactment of this Act) and sub-
paragraph (A) of section 8(i)(2) of such Act (as amended
by section 143 of this Act).
(b) COMPLIANCE WITH REHABILITATION REQUIRE-
MENT.—Rehabilitation activities undertaken by E.T.C. En-
terprises in connection with 16 scattered-site dwelling units
that were rehabilitated to provide housing for low-income
families and are located in Perth Amboy, New Jersey, are
hereby deemed to have been conducted pursuant to an agree-
ment with the Secretary of Housing and Urban Develop-
ment under clause (ii) of the third sentence of section
8(d)(2)(A) of the United States Housing Act of 1937 (as
in effect before the date of the enactment of this Act) and
subparagraph (A) of section 8(i)(2) of such Act (as amended
by section 143 of this Act).
180
SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF
OWNERS AND LANDLORDS IN SECTION 8
RENTAL ASSISTANCE PROGRAM.
The Secretary of Housing and Urban Development
shall conduct a study—
(1) to determine the extent to which the require-
ments of section 8(p)(2) of the United States Housing
Act of 1937 (as amended by this Act) and section 8(t)
of such Act (as in effect before the enactment of this
Act) cause owners of multifamily rental housing to
abstain from entering into contracts for housing as-
sistance payments under such section; and
(2) to identify other factors causing owners of
such housing to abstain from entering into such con-
tracts.
In conducting the study, the Secretary shall consult a sig-
nificant number of owners in a wide range of areas. The
Secretary shall submit a report to the Congress describing
the results of the study not later than February 1, 1996.
SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STAND-
ARDS.
The Secretary of Housing and Urban Development
shall conduct a study of the existing standards for housing
quality for dwelling units assisted under the program for
rental assistance under section 8 of the United States Hous-
ing Act of 1937. The study shall determine—
181
(1) whether the standards are effective in ensur-
ing decent, safe, and sanitary housing;
(2) how, and the extent to which, the standards
are enforced; and
(3) how the standards or the enforcement of the
standards may be improved.
The Secretary shall submit a report to the Congress
not later than 2 years after the date of the enactment of
this Act describing the results of the study and containing
any recommendations of the Secretary to carry out para-
graph (3).
Subtitle D—Renewal of Expiring
Contracts for Section 8 New Con-
struction and Substantial Reha-
bilitation Projects
SEC. 151. FINDINGS AND PURPOSE.
(a) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) housing built or substantially rehabilitated
pursuant to section 8 of the United States Housing
Act of 1937 is an important national resource that
has provided decent, safe, and affordable housing to
hundreds of thousands of low-income families who
otherwise would not have obtained affordable housing;
182
(2) the Federal Government is the steward of this
assisted housing stock and has an affirmative obliga-
tion to preserve it as housing for low-income families,
consistent with considerations of fairness to all inter-
ested parties, including owners, residents, property
managers, the community in which the housing is lo-
cated, and taxpayers;
(3) because section 8(e)(1) of the United States
Housing Act of 1937 (as in effect prior to November
30, 1983) provided, for the most part, that contracts
to make assistance payments to owners of newly con-
structed or substantially rehabilitated housing fi-
nanced with assistance of a loan made by, or insured,
guaranteed or intended for purchase by the Federal
Government, other than pursuant to section 244 of the
National Housing Act, could not exceed 20 years and
because such housing was constructed or substantially
rehabilitated during the period from 1975 to 1985, a
substantial number of contracts that provide for such
assistance will soon expire (with other housing con-
structed or substantially rehabilitated pursuant to
such section of law supported through housing assist-
ance contracts of longer duration, which will expire
at a later time);
183
(4) failure to enter into new housing assistance
contracts under equitable and financially sound terms
and conditions will reduce the supply of decent, safe,
and affordable housing for low-income Americans,
while the demonstrated need for such housing remains
great;
(5) in order for the urban and rural population
centers of the United States to regain their viability,
the housing stock in such population centers must be
preserved, which includes preserving housing built or
substantially rehabilitated under section 8 of the
United States Housing Act of 1937;
(6) assisted housing projects located in areas of
relative affluence can promote racial, social, and eco-
nomic integration, and such projects should be main-
tained as part of the affordable housing inventory to
the maximum extent practicable;
(7) the number of units of housing currently re-
ceiving project-based section 8 assistance should not
be reduced as a result of the expiration of any current
contracts; and
(8) the number of households currently assisted
by reason of residence in housing projects receiving
project-based section 8 assistance should not be re-
duced as a result of the expiration of any current con-
184
tracts to provide project-based assistance, though some
of the specific families currently living in such hous-
ing may either receive such assistance in another lo-
cation or become recipients of tenant-based assistance
under appropriate circumstances (with the preference,
as a matter of public policy, to the continued assist-
ance of such households through project-based assist-
ance).
(b) PURPOSE.—It is the purpose of this subtitle to pro-
vide for the preservation of affordable housing constructed
or substantially rehabilitated pursuant to section 8 of the
United States Housing Act of 1937, and to provide afford-
able housing opportunities for at least the same number of
families as are provided such housing by reason of their
residence in housing projects receiving project-based assist-
ance under such section, in a manner that is administra-
tively efficient, cost-effective, and fair to all interested par-
ties, including owners, residents, property managers and
the communities in which the housing is located.
SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTEN-
TION TO RENEW.
(a) NOTICE TO OWNER.—Not later than 27 months be-
fore the date of expiration of an expiring contract (or, in
the case of a qualified project subject to an expiring contract
for which the date of expiration occurs less than 27 months
185
after the date of the enactment of this Act, not later than
6 months after the date of enactment of this Act), the Sec-
retary shall notify the owner of the qualified project, in
writing, that the owner has an affirmative obligation pur-
suant to subsection (b).
(b) NOTICE BY OWNER TO SECRETARY.—Not later
than 24 months before the date of expiration of an expiring
contract (or, in the case of a qualified project subject to
an expiring contract for which the date of expiration occurs
less than 27 months after the date of the enactment of this
Act, not later than 9 months after the date of enactment
of this Act), the owner of the qualified project shall simulta-
neously—
(1) submit to the Secretary written notice stating
whether or not the owner intends to enter into a new
contract pursuant to this subtitle for project-based as-
sistance for the qualified project; and
(2) submit a copy of the notice to the chief execu-
tive officer of the State or unit of general local gov-
ernment for the jurisdiction within which the project
is located, any mortgagee of the project, the tenants
of the project (including any resident council for the
project), and such other individuals or entities as the
Secretary may require.
186
(c) SUBMISSION OF PROPOSAL TO ENTER INTO NEW
CONTRACT.—If in the notice required by subsection (b) the
owner indicates an intention to enter into a new contract
for assistance for the qualified project, not later than 3
months after submitting such notice to the Secretary, the
owner shall simultaneously—
(1) submit to the Secretary a proposal specifying
terms and conditions for the new contract, which
shall comply with the requirements for new contracts
under this subtitle; and
(2) submit a copy of the notice to the chief execu-
tive officer of the State or unit of general local gov-
ernment for the jurisdiction within which the project
is located, any mortgagee of the project, the tenants
of the project (including any resident council for the
project), and such other individuals or entities as the
Secretary may require.
(d) CAPITAL NEEDS ASSESSMENT.—
(1) REQUIREMENT.—Within a reasonable period
of time after receiving a proposal under subsection (c)
to enter into a new contract for a qualified project,
the Secretary shall conduct a comprehensive assess-
ment of the needs of the project to determine the reha-
bilitation needs and replacement reserves necessary to
187
preserve the project during the ensuing 10-year pe-
riod.
(2) CONTENT.—The assessment shall obtain the
same information regarding the qualified project that
is required to be contained in a comprehensive needs
assessment under section 403 of the Housing and
Community Development Act of 1992 for a covered
multifamily housing property subject to title IV of
such Act, shall assess the management performance
for the project, and shall obtain any other informa-
tion as the Secretary considers appropriate for pur-
poses of this subtitle regarding the project, tenants,
and market area in which the project is located.
(e) TENANT AND COMMUNITY PARTICIPATION.—
(1) ESTABLISHMENT
OF
PROCEDURES.—The
Secretary shall establish procedures that provide an
opportunity for tenants of a qualified project (includ-
ing any resident council) and other affected parties to
participate effectively in the process established under
this section and section 153 to determine whether and
under what terms and conditions a new contract will
be provided for the project or other assistance will be
made available.
(2) CONTENT OF PROCEDURES.— The procedures
established under this subsection shall include provid-
188
ing timely and adequate written notice of the pro-
posed decisions of the owner and the Secretary re-
garding the qualified project, timely access to all rel-
evant information (not including information deter-
mined to be proprietary under standards established
by the Secretary), an adequate period to analyze such
information and submit comments to the Secretary
(which the Secretary shall take into consideration in
carrying out this subtitle), and, if requested, arrang-
ing meetings with representatives of the Secretary
and the owner.
(3) APPLICABILITY.—The procedures established
under this subsection shall provide for the participa-
tion of tenants of a qualified project and other af-
fected parties in at least the following actions:
(A) Physical inspection of the qualified
property under section 155(b) and determination
of capital needs of a property pursuant to sub-
section (d).
(B) Any determination under section 154
regarding the owner of the project.
(C) Review of notice and any proposal sub-
mitted by the owner under subsections (b) and
(c) of this section.
189
(D) Determination of the response of the
Secretary under section 153.
(E) Determination of the terms of any new
contract for the project.
(F) Establishing and carrying out any plan
for sale of the project under section 157(c)(1).
(G) Establishing and carrying out of any
plan to provide assistance under subsection (d)
or (f) of section 157.
(4) MINIMUM
PERIOD
FOR
TENANT
NOTIFICA-
TION.—The Secretary shall notify tenants of a quali-
fied project of any agreement to enter into a new con-
tract for the project or of the failure to enter into a
new contract for the project, as the case may be, not
less than 12 months before the expiration of expiring
contract. If, in the case of a failure to enter into a
new contract for a qualified project, the Secretary
fails to comply with the requirement under the pre-
ceding sentence, the Secretary shall (subject only to
the availability of budget authority) provide such ad-
ditional assistance as may be necessary to extend the
contract for such 12-month period.
SEC. 153. SECRETARY’S RESPONSE TO OWNER’S PROPOSAL.
(a) REQUIREMENT.—Except in the case of an owner
who submits a notice under section 152(b) stating an inten-
190
tion not to enter into a new contract and in the case of
rejection of an owner’s proposal under subsection (c), not
later than 90 days after an owner submits a proposal under
section 152(c) for a qualified project (or not later than 30
days after the expiration of the period under section 152(b),
in the case of an owner failing to provide notice under such
subsection), the Secretary shall take action under subsection
(b) to enter into a new contract.
(b) RESPONSE TO OWNER’S PROPOSAL.—Subject only
to the availability of budget authority, the Secretary shall
take the following actions:
(1) STATUS QUO CONTRACTS.—In the case of a
qualified project for which the maximum monthly
rents for units in the project that are assisted under
the expiring contract do not (24 months before the
date of the expiration of the contract) exceed 110 per-
cent of the fair market rentals for dwelling units of
the applicable sizes and types of dwelling units in the
market area in which the qualified housing is located
and a qualified project for which the owner agrees to
reduce the maximum monthly rents so that the rents
do not exceed 110 percent of such fair market rent-
als—
(A) if the owner’s proposal under section
152(c) 
provides 
for 
establishing 
maximum
191
monthly rents under the contract for dwelling
units in the project pursuant to the procedure
under section 156(a) and otherwise complies
with the requirements of this subtitle, the Sec-
retary shall agree to the owner’s proposal and
shall enter into a new contract for the project;
and
(B) if the owner’s proposal under section
152(c) does not provide for establishing maxi-
mum monthly rents under the contract for dwell-
ing units in the project pursuant to the proce-
dure under section 156(a) or otherwise fails to
comply with the requirements of this title, or the
owner has failed to submit a proposal, the Sec-
retary shall make an offer to enter into a new
contract for the project (by modifying the own-
er’s proposal under section 152(c), if the owner
has submitted a proposal) and, if the owner ac-
cepts, the Secretary shall enter into such a new
contract for the project.
The Secretary may not offer or agree to enter into a
new contract for a qualified project, or enter into such
a contract, that establishes maximum monthly rents
under the contract for dwelling units in the project
pursuant to the procedure under section 156(a) unless
192
the maximum monthly rents under the expiring con-
tract for the project meet the requirements of the mat-
ter in this paragraph preceding subparagraph (A).
(2) BUDGET-BASED CONTRACTS.—In the case of
a qualified project for which the maximum monthly
rents for units in the project that are assisted under
the expiring contract (24 months before the date of the
expiration of the contract) exceed 110 percent of the
fair market rentals for dwelling units of the applica-
ble sizes and types of dwelling units in the market
area in which the qualified housing is located—
(A) if the owner’s proposal under section
152(c) 
provides 
for 
establishing 
maximum
monthly rents under the contract for dwelling
units in the project pursuant to the procedure
under section 156(b) and otherwise complies
with the requirements of this subtitle, the Sec-
retary shall agree to the owner’s proposal under
section 152(c) and shall enter into a new con-
tract for the project; and
(B) if the owner’s proposal under section
152(c) does not provide for establishing maxi-
mum monthly rents under the contract for dwell-
ing units in the project pursuant to the proce-
dure under section 156(b) or otherwise fails to
193
comply with the requirements of this title, or the
owner has failed to submit a proposal, the Sec-
retary shall make an offer to enter into a new
contract for the project (by modifying the own-
er’s proposal under section 152(c), if the owner
has submitted a proposal) and, if the owner ac-
cepts, the Secretary shall enter into such a new
contract for the project.
(3) AVOIDING OVERCONCENTRATION OF LOW-IN-
COME
HOUSING.—Notwithstanding paragraphs (1)
and (2), with respect to a qualified project for which
the Secretary is to provide a new contract under ei-
ther such paragraph, the Secretary may reduce the
number of dwelling units otherwise required to be as-
sisted under the new contract (pursuant to section
155(a)(3)) if—
(A) the Secretary determines that the
project is located in a market area in which
there is a high concentration of dwelling units
occupied by or affordable to very low-income
families;
(B) the Secretary consults with the owner of
the project, the tenants of the project (including
any resident council), and representatives of the
community in which the project is located re-
195
higher costs per unit assisted attributable to assisting
less units.
(c) REJECTION OF OWNER’S PROPOSAL.—The Sec-
retary may reject a proposal submitted pursuant to section
152(c) only for a reason contained in the regulations issued
under section 154.
(d) NOTICE OF SECRETARY’S ACTION.—The Secretary
shall simultaneously—
(1) submit written notice of any action under
subsection (b) or (c) to the owner of the qualified
project for which such action is taken; and
(2) submit a copy of the notice to the chief execu-
tive officer of the appropriate State or unit of general
local government for the jurisdiction within which the
project is located, any mortgagee of the project, the
tenants of the project (including any resident council
for the project), and such other individuals or entities
as the Secretary may require.
Notice under this subsection shall be submitted not later
than the expiration of the period for the qualified project
referred to in subsection (a). If the Secretary does not pro-
vide notice to the owner as required under this subsection,
the proposal of the owner shall be considered to have been
accepted without modification. Any notice rejecting a pro-
196
posal by the owner shall clearly state the reason for rejecting
the proposal.
(e) MODIFICATIONS
TO OWNER’S PROPOSAL.—The
Secretary may propose modifications to an owner’s pro-
posal submitted pursuant to section 152(c) only to the ex-
tent necessary to make the proposal comply with the re-
quirements under this subtitle for acceptance by the Sec-
retary.
(f) LIMITATION ON SECRETARY’S AUTHORITY TO RE-
JECT OR MODIFY.—The Secretary may not reject or pro-
pose modifications to a proposal submitted pursuant to sec-
tion 152(c) because an enforcement action is pending
against the owner. Notwithstanding any other provision of
this subtitle, in such event, the Secretary shall, subject only
to the availability of budget authority, extend the applicable
expiring contract for the period until the enforcement action
is concluded.
SEC. 154. LIMITATION ON NEW CONTRACTS.
(a) IN GENERAL.—The Secretary may refuse to enter
into a new contract with the owner of a qualified project
if the Secretary determines that the owner of the project
submitting the proposal has committed—
(1) violations of laws, regulations, regulatory
agreements, or other agreements for which the Sec-
retary may impose suspension, debarment, civil
197
money penalties, and such other major forms of en-
forcement action available to the Secretary under law;
or
(2) other substantial and repeated violations of
laws, regulations, regulatory agreements or other
agreements that have not been cured within a reason-
able period of time after notice was provided to the
owner.
(b) REGULATIONS.—Not later than 45 days after the
date of enactment of this Act, the Secretary shall publish
for comment proposed regulations identifying the violations
that, under subsection (a), prohibit the Secretary from en-
tering into a new contract.
SEC. 155. REQUIRED TERMS OF NEW CONTRACTS.
(a) IN GENERAL.—The Secretary may accept the pro-
posal of an owner (made under section 152(c) or negotia-
tions pursuant to such a proposal), and may propose modi-
fications to such a proposal and make an offer to enter into
a new contract for qualified housing, only if the agreement
provides for a new contract for the qualified housing that
complies with the following requirements:
(1) RENEWAL FOR REMAINING USEFUL LIFE OF
PROPERTY.—A new contract shall contain binding
commitments necessary to ensure that—
198
(A) the contract shall be renewed as pro-
vided in paragraph (5) upon expiration for the
entire remaining useful life of the qualified
project subject to the contract, subject only to the
availability of budget authority, the provisions of
this subtitle, and the provisions of the contract
or law regarding termination of the contract for
cause; and
(B) renewal of the contract under para-
graph (5) shall not alter or affect the terms of the
contract.
(2) PROJECT-BASED ASSISTANCE.—A new con-
tract shall provide that the Secretary shall provide
project-based assistance under this subtitle for dwell-
ing units in the qualified project subject to the con-
tract based upon maximum monthly rents (including
utilities and all maintenance and management
charges) that the owner may receive for the dwelling
units.
(3) LOW-INCOME OCCUPANCY.—A new contract
shall provide that, during the term of the contract, the
owner shall make available for occupancy only by
families that (at the time of their initial occupancy)
are low-income families or very low-income families
(as the contract shall provide) the number of dwelling
199
units in the qualified project subject to the contract
for which assistance is provided under the expiring
contract.
(4) MAINTENANCE OF HOUSING.—The new con-
tract shall require the owner of the qualified project
to maintain the housing in compliance with housing
quality standards established by the Secretary for
housing assisted under section 8 of the United States
Housing Act of 1937.
(5) CONTRACT TERM.—A new contract shall have
a term of 60 months and shall be renewable for addi-
tional 60-month terms without limitation.
(6) SECTION 8 REQUIREMENTS.—A new contract
shall provide that the qualified project subject to the
contract shall be subject to the requirements applica-
ble to housing assisted under section 8(i) of the Unit-
ed States Housing Act of 1937.
(7) CAPITAL NEEDS.—A new contract shall con-
tain such terms as the Secretary and the owner agree
to regarding conducting rehabilitation and replace-
ment activities for the project and may provide
amounts to the owner for meeting immediate rehabili-
tation and replacement needs of the qualified project
if the Secretary determines that providing such
amounts would be more cost effective to the Secretary
200
than financing such activities through increased
project debt.
(8) MAXIMUM MONTHLY RENTS.—A new contract
shall provide that the maximum monthly rents for the
project under the contract shall be the amount deter-
mined under section 156 upon entering into the con-
tract, and shall be adjusted annually as provided
under such section, except that—
(A) the maximum monthly rents shall be re-
determined in the manner provided under sec-
tions 153(b) and 156 upon each renewal of the
contract; and
(B) the owner of the project may, at any
time, submit a written request to the Secretary
for a redetermination of the maximum monthly
rents for the project using the procedure under
section 156(b) and, after such request, the rents
shall be determined using such method for the re-
mainder of the term of the contract.
(9) CONSIDERATION OF TENANT CONCERNS.—A
new contract shall provide that the owner of the
qualified housing shall—
(A) establish and, in good faith, carry out
a procedure, acceptable to the tenants (including
any resident council) of the project, for tenants
201
to submit to the owner comments, questions, and
requests regarding any issues concerning the
project (including the condition, management,
and ownership of the project); and
(B) make a good faith effort to respond to
such comments, questions, and requests within a
reasonable period of time.
(b) PROPERTY INSPECTIONS AND MANAGEMENT RE-
VIEWS REQUIRED BY SECRETARY.—The Secretary shall
conduct an inspection of the physical condition of each
qualified project for which a new contract is entered into
under this subtitle and shall conduct a review of the man-
agement of each such qualified project, not less than once
every 3 years. The Secretary may conduct such an inspec-
tion or review more often, as the Secretary considers appro-
priate, taking into consideration requests and comments
from tenants of the qualified project (including any resident
council) and from representatives of the unit of general local
government for the jurisdiction in which the project is lo-
cated.
SEC. 156. MAXIMUM MONTHLY RENT UNDER NEW CON-
TRACTS.
(a) STATUS QUO RENT DETERMINATION.—
(1) PROCEDURE.—If the maximum monthly
rents under a new contract for a qualified project are
202
to be established under this subsection, the rents shall
be established at the amount equal to the maximum
monthly rents under the expiring contract existing at
the time 24 months before the date of the expiration
of the contract (or an amount mutually agreed to by
the Secretary and the owner that is less than such
amount).
(2) RENT ADJUSTMENTS.—Annual increases in
the maximum monthly rents for any qualified project
for which the rents under a new contract are to be de-
termined under this subsection shall be based on the
application of the annual adjustment factor, pursuant
to section 8(d)(3) of the United States Housing Act
of 1937.
(3) SERVICE
COORDINATORS.—Notwithstanding
paragraph (1), the maximum monthly rents estab-
lished (and adjusted) under this subsection for a
qualified project shall be increased to the extent nec-
essary to provide for the total costs of a service coordi-
nator under section 161 for the project.
(b) BUDGET-BASED RENT DETERMINATION.—
(1) PROCEDURE.—If the maximum monthly
rents under a new contract for a qualified project are
to be established under this subsection, the rents shall
be established at such a level or levels that would pro-
203
vide income sufficient to support the following actual
and projected costs of operating the project:
(A) DEBT SERVICE.—The debt service on
any federally-insured or assisted loans for the
qualified project or any other loans for the
project approved by the Secretary at the time the
loans were entered into or subsequently, except
that the Secretary may provide that such debt
service shall not include—
(i) any debt service attributable to any
equity loan insured under section 241(f) of
the National Housing Act or any similar
loan made for the purposes of liquidating
the equity of the owner in the qualified
project; and
(ii) if the Secretary requires refinanc-
ing of debt under section 159 and the owner
does not refinance as provided in such sec-
tion, any debt service relating to such debt
in excess of the amount that the Secretary
determines is appropriate under prevailing
market conditions at the time such refi-
nancing was required to occur.
(B) OPERATING EXPENSES.—Operating ex-
penses for the qualified project, including costs of
204
measures to reduce or control crime, and the
total costs of a service coordinator under section
161 for the project.
(C) RESERVES.—Adequate reserves for the
qualified project, as determined pursuant to a
comprehensive needs assessment for the project
prepared and approved in accordance with title
IV of the Housing and Community Development
Act of 1992 or in such other manner as the Sec-
retary may require.
(D) ALLOWANCE FOR LOSSES.—An allow-
ance for potential operating losses of the quali-
fied project caused by vacancies and failure to
collect rents, which shall be an amount equal to
5 percent of any rental income from the project
(including any amounts paid in rent for utili-
ties).
(E) DISTRIBUTION TO OWNER.—An allow-
ance for a distribution to the owner of the quali-
fied project, which shall be an amount per dwell-
ing unit in the project per year that is deter-
mined by the Secretary taking into consideration
the size, location, and amount of rents of the
project. The allowance shall be adjusted upon
any renewal of the new contract, in the manner
205
determined by the Secretary, to provide for infla-
tion.
(F) TENANT
ORGANIZATION.—An amount
for technical assistance to the resident council (if
any) of the qualified project or for technical as-
sistance in organizing or operating a resident
council, which shall be an amount equal to $20
per dwelling unit in the project per year. The
Secretary shall provide that such amounts shall
not be made available to the owner but shall be
accessible only by resident councils or by tenants
for establishment or operation of resident coun-
cils.
(G) ALLOWANCE FOR UNIQUE COSTS.—An
allowance for unique costs specific to and char-
acteristic of qualified housing or other housing
for low-income families receiving project-based
assistance from the Secretary, in the amount
agreed to by the Secretary and the owner.
(H) ALLOWANCE FOR HIGH-RENT AREAS.—
If the Secretary determines that the prevailing
rents in the market area in which a qualified
project is located exceed the fair market rentals
for dwelling units of the applicable sizes and
206
types of dwelling units in the market area in
which the qualified housing is located—
(i) an allowance may be provided (at
the discretion of the Secretary) in an
amount necessary to provide maximum
monthly rents under this subsection in an
amount equal to the prevailing market rents
in the area; and
(ii) an allowance in the amount re-
ferred to in clause (i) shall be provided if
the Secretary determines that there is a lack
of sufficient housing in the market area in
which the project is located that is afford-
able to low-income families.
(2) RENT ADJUSTMENTS.—
(A) IN GENERAL.—Annual increases in the
maximum monthly rents for any qualified
project for which the rents under a new contract
are to be determined under this subsection shall
be based on the application of the operating cost
adjustment factor, pursuant to section 8(d)(3) of
the United States Housing Act of 1937.
(B) EXCESSIVE
ADJUSTMENTS.—The Sec-
retary may require the owner of a qualified
project for which a new contract has been pro-
207
vided to submit a proposal in the manner pro-
vided under paragraph (3) for redetermination
of maximum monthly rents for the project if—
(i) not less than 2 rent adjustments
have been made pursuant to subparagraph
(A) for the project;
(ii) an intervening redetermination of
maximum monthly rents for the project
pursuant to paragraph (1) has not oc-
curred; and
(iii) the Secretary determines that the
rents resulting from the rent adjustments
are materially in excess of the rents nec-
essary to support the costs for the project
described in paragraph (1).
If pursuant to such a redetermination the Sec-
retary determines that the rents for the project
are greater than the amount described in clause
(iii), the Secretary may reduce the maximum
monthly rents for the project to the amount de-
scribed in clause (iii), effective on the first day
of the month following written notification by
the Secretary to the owner of such new rents.
(3) TIMING.—If the Secretary requests an owner
of a qualified project or a project for which a new
208
contract is to be provided to submit a proposal for
maximum monthly rents based on costs described in
paragraph (1) and the owner fails to submit such a
proposal during the 90-day period beginning upon re-
ceipt of such request, the Secretary may establish the
maximum monthly rents for the project based on such
information as is available to the Secretary from the
owner’s most recent audited financial statements,
without the agreement of the owner.
(4) ADDITIONAL INFORMATION FROM OWNER.—
The owner of a qualified project (including a project
for which a new contract has been provided) may, at
any time, submit to the Secretary information re-
garding prevailing rent levels for comparable dwelling
units in the market area in which the project is lo-
cated and the Secretary shall consider such informa-
tion in making any determinations or agreements
under this subsection regarding the project.
SEC. 157. ACTIONS IN CASES OF FAILURE TO ENTER INTO
NEW CONTRACT.
(a) NOTICE.—If—
(1) the owner of a qualified project indicates, in
the notice required under section 152(b), an intention
not to enter into a new contract,
209
(2) the Secretary and the owner fail to agree to
enter into a new contract after a reasonable period of
negotiation, or
(3) the Secretary refuses to enter into a new con-
tract with the owner pursuant to section 154,
the Secretary shall provide notice containing the informa-
tion under subsection (b) to the owner, the chief executive
officer of the State or unit of general local government for
the jurisdiction within which the project is located, any
mortgagee of the project, the tenants of the project (includ-
ing any resident council for the project), and such other
individuals or entities as the Secretary considers appro-
priate.
(b) CONTENTS OF NOTICE.—Notice under subsection
(a) shall identify the qualified project, state the intention
of the Secretary to enter into a new contract for the project
with an owner of the project acceptable to the Secretary,
state that the Secretary may take either of the actions au-
thorized under subsection (c) with respect to the project, and
propose maximum monthly rents for the project subject to
the requirements of sections 153(b) and 156.
(c) ATTEMPTED SALE OF PROJECT.—After providing
notice under subsection (b) for a qualified project—
(1) the Secretary shall negotiate with the owner
and other interested parties to develop a plan for sale
210
of the project in a timely manner to a new owner who
agrees to enter into a new contract with the Secretary
and who may be a nonprofit or for-profit entity, a
State or local governmental entity, a tenant (or group
of tenants) or a resident council; a new contract
under this paragraph may be provided pursuant to
the loan management program under section 8(q)(2)
of the United States Housing Act of 1937 or a con-
tract through a public housing agency for project-
based assistance under section 8(i) of such Act; and
(2) notwithstanding paragraph (1), the Sec-
retary may acquire the qualified project by con-
demnation, under judicial process, pursuant to the
first section of the Act of August 1, 1888 (Chapter
728, 25 Stat. 357; 40 U.S.C. 257).
(d) FAILURE TO SELL PROJECT.—
(1) TRANSFER OF PROJECT-BASED ASSISTANCE
TO OTHER HOUSING.—If, after providing notice under
subsection (b) for a qualified project and making rea-
sonable efforts under subsection (c)(1) the Secretary
fails to enter into a new contract for the project (and
determines that action under subsection (c)(2) is not
appropriate), the Secretary shall, subject only to the
availability of budget authority and the absence of
qualified requests for such assistance, provide project-
211
based rental assistance for at least the same number
of dwelling units in housing located within the same
market area as the qualified project as were assisted
under the expiring contract for the project. Tenants of
the qualified project shall be offered initial occupancy
in dwelling units assisted pursuant to this para-
graph.
(2) CONSULTATION.—In providing project-based
assistance under this subsection, the Secretary shall
consult with nonprofit and for-profit entities, State
and local governmental entities, and tenants and any
resident council of the project, regarding acquisition
and operation of housing to be assisted under this
subsection.
(e) TECHNICAL ASSISTANCE.—Using a portion of any
amounts in an account for residual receipts established for
a qualified project and any amounts made available for
new contracts under this subtitle, the Secretary shall (sub-
ject to the availability of such amounts) provide for tech-
nical assistance for tenants of the project (including any
resident councils), nonprofit organizations, nonprofit devel-
opers of affordable housing, and State and local govern-
mental agencies to the extent necessary to—
212
(1) develop the capacity and ability of such enti-
ties to carry out activities pursuant to subsections
(c)(1) and (d); and
(2) assist such entities in preparing submissions,
proposals, and such other documents and entering
into contracts, agreements, and other arrangements
involved in such activities.
(f) ASSISTANCE FOR PROJECT TENANTS.—
(1) RIGHT TO RECEIVE ASSISTANCE.—If, in the
notice required by section 152(b), the owner indicates
a preference not to enter into a new contract or the
Secretary fails to enter into a new contract for the
project, the Secretary shall provide assistance under
paragraphs (2) and (3), subject only to the availabil-
ity of budget authority, for each family who on the
date of the expiration of the expiring contract resides
in a dwelling unit in the project that is assisted
under the expiring contract.
(2) TYPE OF ASSISTANCE.—Assistance required
under this paragraph shall be provided, as deter-
mined by the Secretary, in one of the following forms:
(A) TENANT-BASED
ASSISTANCE.—Assist-
ance may be provided as tenant-based rental as-
sistance under the provisions of section 8(b) of
the United States Housing Act of 1937, as in ef-
213
fect on June 1, 1994, except that in providing
such assistance the Secretary may increase the
maximum monthly rental amount to the extent
necessary to permit families remain in the dwell-
ing unit they occupy in the qualified project or
to obtain a comparable dwelling unit in the
same market area.
(B) OCCUPANCY
IN
A
UNIT
RECEIVING
PROJECT-BASED ASSISTANCE.—The family may
be offered occupancy of an available dwelling
unit that is assisted under a contract pursuant
to subsection (c)(1) or (d).
(3) RELOCATION
ASSISTANCE.—Assistance re-
quired under this section is assistance to the tenant
of a qualified project in the amount of the total cost
of relocating to a unit assisted under paragraph (2).
SEC. 158. CONTRACT EXTENSION.
Subject to the availability of budget authority, the Sec-
retary may extend any expiring contract in force on the
date of enactment of this Act, under identical terms and
conditions, for not more than 24 months if the Secretary
determines that such extension is necessary to protect ten-
ants of the qualified project subject to the contract or the
General Insurance Fund established under section 519 of
the National Housing Act, except that—
214
(1) the authority under this section may be exer-
cised only once for any contract or qualified project;
and
(2) such authority may not be exercised for a
qualified project for which the owner has provided
timely notification under section 152(b) indicating
an intention not to enter into a new contract for the
project, unless the owner expressly agrees to the exten-
sion or the Secretary is taking action pursuant to sec-
tion 152(e)(5) or 153(f).
SEC. 159. FINANCING AND RESTRUCTURING UNDERLYING
DEBT AND TREATMENT OF RESIDUAL RE-
CEIPTS.
(a) IN GENERAL.—Before entering into a new contract
with a present or future owner of a qualified project, the
Secretary shall encourage and, subject to the exceptions in
subsection (d), may require—
(1) the restructuring of debt if the costs to the
Federal Government of such restructuring are less
than the costs incurred by the Federal Government
under a contract for assistance under section 8 of the
United States Housing Act of 1937 at the project’s
current debt level; and
215
(2) the refinancing of all debt that is financed at
a rate 250 basis points in excess of prevailing market
rates for debt with a similar maturity.
Any project refinancing or debt restructuring shall be ac-
companied by a corresponding reduction in the maximum
monthly rents for the project.
(b) FHA-INSURED PROJECTS.—Subject to the excep-
tions set forth in subsection (d), the Secretary shall require
an owner of a project subject to a mortgage insured by the
Secretary which is to be assisted under a new contract to
certify that any debt that meets the conditions of paragraph
(1) or (2) of subsection (a) will be restructured or refi-
nanced, as applicable.
(c) STATE-FINANCED PROJECTS.—The Secretary shall
establish procedures to inform State agencies that insure
or finance mortgages of the provisions of this subtitle, and
shall encourage such agencies to refinance or otherwise re-
structure debt which meets the conditions of paragraph (1)
or (2) of subsection (a).
(d) EXCEPTIONS.—The Secretary shall not require the
refinancing or debt restructuring of any project, if—
(1) the project was financed through obligations
issued by a State or local housing agency or the Gov-
ernment National Mortgage Association and such refi-
nancing or debt restructuring is inconsistent with ap-
216
plicable law or agreements governing such financing;
and
(2) in the Secretary’s determination, the refi-
nancing will not result in significant savings to the
Department of Housing and Urban Development or to
the mortgagor.
(e) DISCRETIONARY ASSISTANCE.—To facilitate re-
newal consistent with this section and section 156(b), the
Secretary may, from amounts appropriated under this sub-
title—
(1) pay the owner’s nonmortgageable transaction
costs;
(2) provide the State insuring agency or the
mortgagee with an equitable share of the savings re-
captured from the refinancing;
(3) apply a share of the savings recaptured from
the refinancing to the project’s reserves or capital ex-
penses;
(4) bifurcate the note to leave a first note service-
able within rents reflective of the local market; and
(5) assist in financing a project’s rehabilitation
needs through the provision of up-front grants from—
(A) residual receipts distributed to the Sec-
retary;
217
(B) the budget authority provided for in-
creases in new contracts to pay for rehabilita-
tion, if the Secretary determines that the provi-
sion of such grants in addition to rental assist-
ance under section 8 of the United States Hous-
ing Act of 1937 would be cost-effective; and
(C) savings resulting from refinancing or
otherwise restructuring the debt.
(f) RESIDUAL RECEIPTS.—
(1) IN GENERAL.—Residual receipts distributed
to the Secretary shall be retained by the Secretary for
use under this subtitle.
(2) EXPEDITED
ACQUISITION.—The Secretary
may expedite the acquisition of residual receipts by
entering into agreements with owners of housing cov-
ered by an expiring contract to provide such owner
with a share of the receipts, not to exceed 15 percent,
only if the share will be applied to the project or to
its reserves.
SEC. 160. RETENTION OF PROGRAM SAVINGS BY SEC-
RETARY.
Any savings achieved through implementation of the
provisions of this Act, except for such savings made avail-
able to State or local housing agencies pursuant to section
159, shall be retained by the Secretary to increase affordable
218
housing opportunities, in such manner as may be deter-
mined by statute, or as may be determined by the Secretary.
SEC. 161. SUPPORTIVE SERVICES.
(a) PROVISION
OF SERVICE COORDINATOR.—Each
owner of qualified project or a project for which a new con-
tract has been provided shall provide, to the extent amounts
are available pursuant to subsection (b) or another provi-
sion of this subtitle, that the project is served (on a full-
or part-time basis in a manner approved by the Secretary)
by a service coordinator under section 671 of the Housing
and Community Development Act of 1992. The preceding
sentence shall apply only after the expiration of the 270-
day period beginning on the date of the enactment of this
Act.
(b) PAYMENT OF COSTS.—Notwithstanding any other
provision of law, the salary and other costs associated with
employing a service coordinator shall be considered an eligi-
ble project expense for a qualified project which may be
fully funded under the expiring contract, as provided by
the Secretary.
SEC. 162. DELEGATION OF AUTHORITY.
The Secretary may delegate the authority of the Sec-
retary under this subtitle, as the Secretary considers appro-
priate, to officials of States and units of general local gov-
219
ernment, who may also act as contract administrators
under applicable law.
SEC. 163. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘expiring contract’’ means any con-
tract for assistance under section 8 of the United
States Housing Act of 1937 pursuant to the authority
referred to in paragraph (4)(A) of this subsection;
(2) the term ‘‘fair market rental’’ means the fair
market rental established pursuant to the authority
under—
(A) section 8(c)(1) of the United States
Housing Act of 1937, as such section existed be-
fore the date of the enactment of this Act; or
(B) section 8(e) of the United States Hous-
ing Act of 1937, as in effect after the date of the
enactment of this Act;
(3) the terms ‘‘low-income family’’ and ‘‘very
low-income family’’ have the meanings given the
terms in section 3 of the United States Housing Act
of 1937;
(4) the term ‘‘maximum monthly rents’’ means,
with respect to a new contract for a qualified project,
the maximum monthly rent that the owner is entitled
220
to receive for dwelling units in the project assisted
under the new contract;
(5) the term ‘‘new contract’’ means—
(A) a contract pursuant to this subtitle to
provide project-based assistance for a qualified
project; and
(B) a contract pursuant to the provisions of
subsection (d) or (f)(2)(B) of section 157 or sec-
tion 153(b)(3);
(6) the term ‘‘owner’’ includes the current or sub-
sequent owner or owners of a qualified project;
(7) the terms ‘‘qualified project’’ and ‘‘project’’
mean a multifamily housing project that—
(A) was constructed or substantially reha-
bilitated pursuant to assistance provided under
section 8(b)(2) of the United States Housing Act
of 1937, as such section existed before November
30, 1983; and
(B) is assisted under an expiring contract;
(8) the term ‘‘resident council’’ means any demo-
cratically operated organization of tenants of a quali-
fied project; and
(9) the term ‘‘Secretary’’ means the Secretary of
Housing and Urban Development.
221
SEC. 164. REGULATIONS.
The Secretary shall issue any final regulations nec-
essary to carry out this subtitle, which shall take effect not
later than 6 months after the date of the enactment of this
Act. The regulations shall be issued after notice and oppor-
tunity for public comment in accordance with the procedure
under section 553 of title 5, United States Code, applicable
to substantive rules (notwithstanding subsections (a)(2),
(b)(B), and (d)(3) of such section).
SEC. 165. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as
may be necessary to carry out the provisions of this subtitle
for which amounts are not provided under section 5(c) of
the United States Housing Act of 1937.
Subtitle E—Homeownership
Programs
SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.
(a) AUTHORIZATION OF APPROPRIATIONS AND TECH-
NICAL ASSISTANCE.—
(1) IN GENERAL.—Section 402 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12870) is amended by striking subsections (a) and (b)
and inserting the following new subsection:
‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au-
thorized to be appropriated for grants under this title
$100,000,000 for fiscal year 1995 and $100,000,000 for fis-
222
cal year 1996, which shall be available for activities author-
ized under subtitles B and C. Any amounts appropriated
pursuant to this subsection shall remain available until ex-
pended.’’.
(b) HOPE II MATCHING REQUIREMENTS.—Section
423(c)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12873(c)) is amended by striking
‘‘33 percent’’ and inserting ‘‘25 percent’’.
(c) ELIGIBILITY UNDER HOPE III OF HOMES ON
LEASED LAND OWNED BY COMMUNITY LAND TRUSTS.—
Section 446(4) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12896(4)) is amended—
(1) by inserting ‘‘(A)’’ before ‘‘owned’’; and
(2) by inserting before the period at the end the
following: ‘‘, or (B) located on leased land owned by
a community land trust (as such term is defined in
section 233 of the HOME Investment Partnerships
Act)’’.
SEC. 172. NATIONAL HOMEOWNERSHIP FUND.
Subtitle A of title III of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12701 note) is
amended to read as follows:
223
‘‘Subtitle A—National
Homeownership Fund
‘‘SEC. 301. SHORT TITLE.
‘‘This subtitle may be cited as the ‘National Home-
ownership Fund Act’.
‘‘SEC. 302. AUTHORITY.
‘‘The Secretary of Housing and Urban Development
may make grants under this subtitle to States (including
State housing finance agencies), local housing finance agen-
cies, and nonprofit housing intermediaries to provide as-
sistance, in accordance with the provisions of this subtitle,
for the acquisition of principal residences for first-time
homebuyers (including homebuyers buying shares in lim-
ited equity cooperatives).
‘‘SEC. 303. ELIGIBLE ASSISTANCE.
‘‘A grantee may use amounts received under this sub-
title only to provide assistance to first-time homebuyers in
the following manners:
‘‘(1) DOWNPAYMENT
ASSISTANCE.—Assistance
payments to provide amounts for the downpayment
(including closing costs and other costs payable at the
time of closing) on a mortgage for the homebuyer.
‘‘(2) SECOND
MORTGAGE
ASSISTANCE.—Assist-
ance payments to provide loans that have such terms
224
for payment of interest and principal as may be de-
termined by the grantee.
‘‘(3) CAPITALIZATION
OF
REVOLVING
LOAN
FUNDS.—To establish revolving loan funds (or to
make grants to public organizations or agencies to es-
tablish such funds) to provide homeownership assist-
ance to eligible first-time homebuyers in accordance
with the provisions of this subtitle. Any grantee under
this subtitle (and any subgrantee of such a grantee)
shall provide an equal amount of local investment for
such revolving loan fund and any proceeds or repay-
ments from loans made under this paragraph shall be
returned to the revolving loan fund established under
this paragraph to be used for purposes related to this
section.
‘‘(4) INTEREST
RATE
BUYDOWNS.—Assistance
payments so that the rate of interest payable on a
mortgage by the homebuyer does not exceed 6 percent.
‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.
‘‘(a) HOMEBUYER.—Assistance may be provided only
to homebuyers meeting the following requirements:
‘‘(1) FIRST-TIME HOMEBUYER.—The homebuyer
is an individual who—
‘‘(A)(i) (and whose spouse) has had no own-
ership in a principal residence during the 3-year
225
period ending on the date of purchase of the
property with respect to which assistance pay-
ments are made under this subtitle;
‘‘(ii) is a displaced homemaker who, except
for owning a home with his or her spouse or re-
siding in a home owned by the spouse, meets the
requirements of clause (i); or
‘‘(iii) is a single parent who, except for
owning a home with his or her spouse or resid-
ing in a home owned by the spouse while mar-
ried, meets the requirements of clause (i); and
‘‘(B) meets the requirements of subpara-
graph (A)(i), (ii), or (iii), except for owning, as
a principal residence, a dwelling unit whose
structure is not permanently affixed to a perma-
nent foundation in accordance with local or
other applicable regulations.
‘‘(2) MAXIMUM
INCOME
OF
HOMEBUYER.—The
aggregate annual income of the homebuyer and the
members of the family of the homebuyer residing with
the homebuyer, for the 12-month period preceding the
date of the application of the homebuyer for assist-
ance under this subtitle, does not exceed 115 percent
of the median income for a family of 4 persons (ad-
justed by family size) in the applicable metropolitan
226
statistical area (or such other area that the Secretary
determines for areas outside of metropolitan statis-
tical areas). The Secretary shall provide for certifi-
cation of such income for purposes of initial eligi-
bility for assistance payments under this subtitle.
‘‘(b) MORTGAGE.—Assistance may be provided only for
mortgages meeting the following requirements:
‘‘(1) PRINCIPAL RESIDENCE.—The property sub-
ject to the mortgage is a single-family residence or
unit in a cooperative (including any manufactured
home park owned by residents or owned by nonprofit
organizations for future ownership by residents) or
condominium, or a single family residence located on
leased land owned by a community land trust, and
is the principal residence of the homebuyer.
‘‘(2) MAXIMUM MORTGAGE AMOUNT.—The prin-
cipal obligation of the first mortgage and any second
mortgage assistance provided under this subtitle does
not exceed the principal amount that could be insured
under section 203(b) of the National Housing Act
with respect to a property having the same number
of dwelling units.
‘‘(c) MINIMUM DOWNPAYMENT.—For first-time home-
buyers to receive downpayment assistance under section
303(a)(1), the homebuyer shall have paid not less than 1
227
percent of the cost of acquisition of the property (excluding
any mortgage insurance premiums paid at the time the
mortgage is insured), as such cost is estimated by the Sec-
retary.
‘‘SEC. 305. COUNSELING REQUIREMENTS.
‘‘Each grantee under this subtitle shall ensure that
each homebuyer receiving assistance under this subtitle
from the grantee (or any subgrantee of such grantee) shall
be provided prepurchase and postpurchase homeownership
counseling from individuals certified by the Secretary
under section 106(e) of the Housing and Urban Develop-
ment Act of 1968.
‘‘SEC. 306. ALLOCATION OF GRANT AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary may make a grant
under this subtitle only to a State (including a State hous-
ing finance agency), local housing finance agency, or non-
profit housing intermediary that submits to the Secretary
an application under this section that is approved by the
Secretary. Applications shall be made in such form and in
accordance with such procedures as the Secretary shall es-
tablish.
‘‘(b) 
MINIMUM
REQUIREMENTS.—An 
application
under this section shall contain a plan that describes how
the applicant will achieve the objectives of this subtitle. The
application shall include—
228
‘‘(1) a description of the geographic area, includ-
ing the revitalization area included, to be covered by
the program to provide assistance under this subtitle;
‘‘(2) the characteristics of the households to be
served by the program;
‘‘(3) a description and evidence of the commit-
ment of other public and private resources to be made
available in the revitalization area and other areas in
which homebuyers receive assistance under this sub-
title;
‘‘(4) a description of any secondary market and
private mortgage insurance involvement and commit-
ment in connection with assistance under this sub-
title;
‘‘(5) a description of how prepurchase and
postpurchase counseling will be provided to home-
buyers assisted under this subtitle;
‘‘(6) a description of any restrictions on resale
and profits;
‘‘(7) a description of existing affordable housing
programs and resources available to undertake reha-
bilitation of properties when needed;
‘‘(8) a description of the process for award and
disbursement of assistance to homebuyers; and
229
‘‘(9) a description of the history of the applicant
in undertaking similar projects.
‘‘(c) 
SELECTION.—The 
Secretary 
shall 
allocate
amounts available in any fiscal year for assistance under
this subtitle to States (including State housing finance
agencies), local housing finance agencies, or nonprofit hous-
ing intermediaries for homebuyers through a national com-
petition in accordance with criteria established by the Sec-
retary. The criteria shall include the extent to which the
applicant has experience in providing homeownership op-
portunities for low- and moderate-income households.
‘‘(d) TARGETING FOR REVITALIZATION AREAS.—Each
grantee under this subtitle shall use not more than 50 per-
cent of any amounts received under this subtitle for assist-
ance under section 303(a) for homebuyers purchasing resi-
dences in revitalization areas using mortgages insured
under section 203(b) of the National Housing Act.
‘‘SEC. 307. REPORT.
‘‘Not later than 18 months after the date of the issu-
ance of final regulations pursuant to section 310, the Sec-
retary shall submit to the Congress a report stating the
amount of loans made in revitalization areas and in other
areas, the amount of loans insured under the National
Housing Act made in connection with assistance under this
section and the amount of privately insured loans made in
230
connection with such assistance, and an analysis of the ef-
fectiveness of such assistance in assisting first-time home-
buyers.
‘‘SEC. 308. DEFINITIONS.
‘‘For purposes of this subtitle:
‘‘(1) 
ASSISTANCE.—The 
term 
‘assistance’
means—
‘‘(A) any downpayment assistance provided
under section 303(1);
‘‘(B) any second mortgage loan provided
under section 303(2);
‘‘(C) any loan provided from a revolving
fund established under section 303(3); and
‘‘(D) any payment for buydown of an inter-
est rate provided under section 303(4).
‘‘(2) COMMUNITY LAND TRUST.—The term ‘com-
munity land trust’ has the meaning given the term in
section 233 of the Cranston-Gonzalez National Afford-
able Housing Act.
‘‘(3) DISPLACED HOMEMAKER.—The term ‘dis-
placed homemaker’ means an individual who—
‘‘(A) is an adult;
‘‘(B) has not worked full-time, full-year in
the labor force for a number of years, but has
231
during such years, worked primarily without re-
muneration to care for the home and family; and
‘‘(C) is unemployed or underemployed and
is experiencing difficulty in obtaining or up-
grading employment.
‘‘(4) REVITALIZATION AREA.—The term ‘revital-
ization area’ means—
‘‘(A) an empowerment zone or enterprise
community approved under Subchapter U of
Chapter 1 of the Internal Revenue Code of 1986,
or an equivalent State-approved enterprise zone;
and
‘‘(B) a neighborhood that, in the determina-
tion of the Secretary, is targeted by a unit of
general local government for revitalization using
coordinated affordable housing programs and en-
hanced supportive services.
‘‘(5) NONPROFIT HOUSING INTERMEDIARY.—The
term ‘nonprofit housing intermediary’ means a non-
profit organization that the Secretary determines has
among its principal purposes activities described in
clauses (1) and (2) of section 802(a) of the Housing
and Community Development Act of 1974.
‘‘(6) SINGLE PARENT.—The term ‘single parent’
means an individual who—
232
‘‘(A) is unmarried or legally separated from
a spouse; and
‘‘(B)(i) has 1 or more minor children for
whom the individual has custody or joint cus-
tody; or
‘‘(ii) is pregnant.
‘‘(7) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(8) STATE.—The term ‘State’ means the States
of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, Guam, the Virgin Is-
lands, American Samoa, and any other territory or
possession of the United States.
‘‘(9) STATE
HOUSING
FINANCE
AGENCY.—The
term ‘State housing finance agency’ has the meaning
given the term in section 802(b) of the Housing and
Community Development Act of 1974.
‘‘(10) LOCAL HOUSING FINANCE AGENCY.—The
term ‘local housing finance agency’ means a housing
finance agency of any city, county, town, township,
parish, village, or other general purpose subdivision
of a State, or of any combination of such political
subdivisions recognized by the Secretary, or any other
233
agency or instrumentality of such an entity that car-
ries out activities described in section 303.
‘‘SEC. 309. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for assist-
ance under this subtitle $115,000,000 for fiscal year 1995
and $215,000,000 for fiscal year 1996. Any amount appro-
priated under this section shall remain available until ex-
pended.
‘‘SEC. 310. REGULATIONS.
‘‘Not later than 10 days after the date of the enactment
of the Housing and Community Development Act of 1994,
the Secretary shall issue an interim rule to implement this
subtitle. The Secretary shall issue final regulations nec-
essary to implement this subtitle not later than 90 days
after issuance of such interim rule.’’.
SEC. 173. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act (12 U.S.C.
1715z(r)) is amended—
(1) in paragraph (2)(C), by inserting after ‘‘refi-
nanced’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate as
permitted by subparagraph (E) or paid by the Sec-
retary as authorized by paragraph (4)(B)’’;
234
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by inserting after ‘‘otherwise)’’ the following:
‘‘and the mortgagee (with respect to the amount
described in subparagraph (A))’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortgagee’’;
and
(3) by amending paragraph (5) to read as fol-
lows:
‘‘(5) The Secretary shall use amounts of budget author-
ity recaptured from assistance payments contracts relating
to mortgages that are being refinanced for assistance pay-
ments contracts with respect to mortgages insured under
this subsection. The Secretary may also make such recap-
tured amounts available for incentives under paragraph
(4)(A) and the costs incurred in connection with the refi-
nancing under paragraph (4)(B). For purposes of sub-
section (c)(3)(A), the amount of recaptured budget author-
ity that the Secretary commits for assistance payments con-
tracts relating to mortgages insured under this subsection
and for amounts paid under paragraph (4) shall not be
construed as unused.’’.
235
SEC. 174. HOUSING COUNSELING FOR HOMEOWNERSHIP
AND RENTAL HOUSING CHOICE.
(a) EXTENSIONS OF PROGRAMS.—
(1) EMERGENCY
HOMEOWNERSHIP
COUNSEL-
ING.—Section 106(c)(9) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(c)(9)) is
amended by striking ‘‘September 30, 1994’’ and in-
serting ‘‘September 30, 1996’’.
(2) PREPURCHASE AND FORECLOSURE-PREVEN-
TION
COUNSELING
DEMONSTRATION.—Section
106(d)(13) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended by
striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal year
1996’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
106 of the Housing and Urban Development Act of 1968
(12 U.S.C. 1701x) is amended—
(1) in subsection (a), by striking paragraph (3)
(2) in subsection (c)—
(A) by striking paragraph (8); and
(B) by redesignating paragraph (9) (as
amended by subsection (a)) as paragraph (8);
(3) in subsection (d)—
(A) by striking paragraph (12); and
(B) by redesignating paragraph (13) (as
amended by subsection (a)) as paragraph (12);
236
(4) in subsection (f), by striking paragraph (7);
and
(5) by adding at the end the following new sub-
section:
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$62,000,000 for fiscal year 1995 and $65,000,000 for fiscal
year 1996, of which amounts $30,000,000 shall be available
in each such fiscal year to carry out subsection (c). Any
amounts appropriated pursuant to this subsection shall re-
main available until expended.’’.
(c) OUTREACH.—Section 106(a) of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701x(a)) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘The’’ and inserting ‘‘AC-
TIVITIES.—The’’;
(B) in the matter preceding clause (i), by
inserting ‘‘or consortia of organizations’’ after
‘‘organizations’’;
(C) in clause (iii), by striking ‘‘and’’ at the
end;
(D) in clause (iv), by striking the period at
the end and inserting a semicolon; and
243
housing and other federally assisted low-income housing
projects to (1) public housing agencies, and (2) private, for-
profit and nonprofit owners of federally assisted low-income
housing. In designing the program for grants under this
chapter, the Secretary shall consult with the Attorney Gen-
eral.’’.
(b) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.—Section 5124(a) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is
amended—
(A) in the matter preceding paragraph (1),
by inserting ‘‘and around’’ after ‘‘used in’’;
(B) in paragraph (3), by inserting before
the semicolon the following: ‘‘, including fencing,
lighting, locking, and surveillance systems’’;
(C) in paragraph (4), by striking subpara-
graph (A) and inserting the following new sub-
paragraph:
‘‘(A) to investigate crime; and’’;
(D) in paragraph (6)—
(i) by striking ‘‘in and around public
or other federally assisted low-income hous-
ing projects’’; and
(ii) by striking ‘‘and’’ after the semi-
colon; and