I
104TH CONGRESS
1ST SESSION
H. R. 2198
To abolish the Department of Housing and Urban Development and provide
for reducing Federal spending for housing and community development
activities by consolidating and eliminating programs, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 4, 1995
Mr. BROWNBACK (for himself, Mrs. MYRICK, Mr. GUTKNECHT, Mr. LARGENT,
Mr. ARMEY, Mr. DELAY, Mr. BOEHNER, Mr. ROBERTS, Mr. WALKER,
Mr. KASICH, Mr. BLILEY, Mr. SOLOMON, Mr. SAXTON, Mr. DREIER, Mr.
DORNAN, Mr. ROHRABACHER, Mr. MILLER of Florida, Mr. HOEKSTRA,
Mr. SHADEGG, Mr. SCARBOROUGH, Mr. FOLEY, Mr. SOUDER, Mr.
TIAHRT, Mr. CHRYSLER, Mr. CHRISTENSEN, Mr. COOLEY, Mrs. SMITH
of Washington, Mr. TATE, Mr. SMITH of Michigan, Mr. HEFLEY, Mr.
HASTINGS of Washington, Mr. NUSSLE, Mr. INGLIS of South Carolina,
Mr. NORWOOD, Mr. STOCKMAN, Mrs. SEASTRAND, Mr. TALENT, Mr.
SANFORD, Mr. SALMON, Mr. BONO, Mrs. CHENOWETH, Mr. MCINTOSH,
Mr. HOSTETTLER, Mr. FUNDERBURK, Mr. COBURN, Mr. GRAHAM, Mr.
HILLEARY, Mr. HUTCHINSON, Mr. BASS, Mr. CUNNINGHAM, Mr.
RADANOVICH, Mr. PARKER, Mr. DOOLITTLE, Mr. HERGER, Mr. KOLBE,
Mr. WHITE, and Mr. HAYWORTH) introduced the following bill; which
was referred to the Committee on Banking and Financial Services, and
in addition to the Committee on Government Reform and Oversight, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To abolish the Department of Housing and Urban Develop-
ment and provide for reducing Federal spending for
housing and community development activities by consoli-
dating and eliminating programs, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Housing Opportunities
and Empowerment Act’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—ABOLISHMENT OF DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT AND DISPOSITION OF FUNCTIONS
Subtitle A—Abolishment of Department of Housing and Urban Development
Sec. 101. Reestablishment of Department as Housing and Urban Development
Programs Resolution Agency.
Sec. 102. Functions.
Sec. 103. Continuation of service of HUD officers.
Sec. 104. Reorganization.
Sec. 105. Abolishment of Resolution Agency.
Sec. 106. GAO report.
Sec. 107. Conforming amendments.
Sec. 108. Effective date.
Subtitle B—Disposition of Particular Programs, Functions, and Agencies of
Department of Housing and Urban Development
Sec. 121. Program transfers.
Sec. 122. Reestablishment of Office of Federal Housing Enterprise Oversight
as independent office in Department of the Treasury.
Sec. 123. Termination of Government National Mortgage Association.
Sec. 124. Abolishment of Office of Public Affairs.
Sec. 125. Effective date.
Subtitle C—Miscellaneous Provisions
Sec. 141. References.
Sec. 142. Exercise of authorities.
Sec. 143. Savings provisions.
Sec. 144. Transfer of assets.
Sec. 145. Delegation and assignment.
Sec. 146. Authority of Office of Management and Budget with respect to func-
tions transferred.
Sec. 147. Proposed changes in law.
Sec. 148. Definition of transfer.
Sec. 149. Definitions.
TITLE II—TENANT-BASED VOUCHERS FOR RENTAL AND
HOMEOWNERSHIP ASSISTANCE
Subtitle A—Block Grants for State Housing Voucher Assistance
Sec. 201. Federal assistance for State voucher program.
Sec. 202. Block grants.
Sec. 203. State voucher program requirements.
Sec. 204. Waiver of voucher program requirements and flexible use of grant
amounts.
Sec. 205. Remedies for noncompliance.
Sec. 206. Administrative fee.
Sec. 207. Monitoring.
Subtitle B—Federal Housing Voucher Assistance Program
Sec. 221. Program authority.
Sec. 222. Eligible families.
Sec. 223. Amount of assistance payment.
Sec. 224. Payment standard and fair market rentals.
Sec. 225. Eligible dwelling units.
Sec. 226. Rents.
Sec. 227. Leases.
Sec. 228. Preferences for assistance.
Sec. 229. Portability.
Sec. 230. Use of housing assistance for homeownership.
Sec. 231. Annual contributions contracts.
Sec. 232. Housing voucher contracts.
Sec. 233. Administrative fee.
Sec. 234. Local voucher assistance agencies.
Sec. 235. Definitions.
Subtitle C—Determination of State Allocations and Election of Federal or
State Voucher Program
Sec. 251. State allocations.
Sec. 252. Availability of State allocation based on election to use Federal or
State voucher program.
Subtitle D—Office of Federal Housing Voucher Assistance in Department of
Health and Human Services
Sec. 261. Establishment.
Sec. 262. Voucher Administrator.
Sec. 263. Duty and authority of Voucher Administrator.
Sec. 264. Transfer of certain personnel.
Sec. 265. Reports.
Sec. 266. GAO audits.
Sec. 267. Regulations.
Sec. 268. Effective date.
Subtitle E—General Provisions
Sec. 281. Definitions.
Sec. 282. Maximum amount of housing assistance.
Sec. 283. Authorization of appropriations.
TITLE III—TRANSITION PROVISIONS RELATING TO REPLACE-
MENT OF PUBLIC HOUSING AND ASSISTED HOUSING PRO-
GRAMS
Sec. 301. Purpose.
Subtitle A—Replacement of Assisted Housing Programs
Sec. 311. Termination of existing programs.
Sec. 312. Transition to voucher assistance program.
Sec. 313. Transfer of residual HUD authority to administrator of Federal
Housing Voucher Assistance.
Sec. 314. Treatment of families assisted under terminated programs.
Sec. 315. Continued restrictions on use of existing public housing stock.
Sec. 316. Audit of project-based section 8 assistance contracts.
Subtitle B—Interim Program for Public Housing Block Grants and
Deregulation
Sec. 321. Immediate termination of existing public housing programs.
Sec. 322. Program authority.
Sec. 323. Strategic plan.
Sec. 324. Consolidation of funding.
Sec. 325. Public Housing Block Grant Fund.
Sec. 326. Grants.
Sec. 327. Eligible activities.
Sec. 328. Formula allocations.
Sec. 329. Program requirements and waivers.
Sec. 330. Authorization of appropriations.
Subtitle C—General Provisions
Sec. 341. Definitions.
TITLE IV—BLOCK GRANTS FOR HOUSING AND COMMUNITY
DEVELOPMENT OPPORTUNITIES
Subtitle A—Block Grants Program
Sec. 401. Purpose.
Sec. 402. General block grants.
Sec. 403. Eligible States and entitlement areas.
Sec. 404. Use of grant amounts.
Sec. 405. Block grant plan.
Sec. 406. Allocation of block grant amounts.
Subtitle B—Block Grants for Housing for Special Populations and Indian
Housing
Sec. 421. Block grants for housing for special populations.
Sec. 422. Block grants for Indian housing.
Subtitle C—General Provisions Relating to Block Grants
Sec. 431. Oversight.
Sec. 432. Remedies for noncompliance.
Sec. 433. Nondiscrimination.
Sec. 434. Definitions.
Sec. 435. Regulations.
Sec. 436. Funding.
Sec. 437. Repeals.
Subtitle D—Housing and Community Opportunities Agency
Sec. 441. Establishment.
Sec. 442. Director.
Sec. 443. Duties.
Sec. 444. Personnel.
Sec. 445. Administrative provisions.
Sec. 446. Report.
Subtitle E—Effective Date
Sec. 451. Effective date.
TITLE V—SINGLE FAMILY HOUSING MORTGAGE INSURANCE
Subtitle A—Federal Home Mortgage Insurance Program
Sec. 501. Federal Home Mortgage Insurance Fund.
Sec. 502. Authority to enter into risk-sharing agreements for mortgage insur-
ance coverage.
Sec. 503. Qualified mortgages.
Sec. 504. Insurance coverage.
Sec. 505. Risk-sharing agreements.
Sec. 506. Requirements for qualified mortgage insurers.
Sec. 507. Definitions.
Sec. 508. Limitation on commitments to insure mortgages.
Subtitle B—Federal Home Mortgage Insurance Fund Administration
Sec. 531. Establishment.
Sec. 532. Fund Administrator.
Sec. 533. Duty and authority of Fund Administrator.
Sec. 534. Personnel.
Sec. 535. Reports.
Sec. 536. GAO audits and reports.
Sec. 537. Regulations.
Sec. 538. Authorization of appropriations for administrative expenses.
Subtitle C—Transition Provisions
Sec. 551. Prohibition of new FHA business.
Sec. 552. Repeal of FHA insurance authority.
Sec. 553. Sale of FHA assets.
Sec. 554. Transfer of remaining FHA authority to administrator of Federal
Home Mortgage Insurance Fund.
Sec. 555. Definitions.
Subtitle D—General and Miscellaneous Provisions
Sec. 571. Amendments to title 5, United States Code.
Sec. 572. Authority of Director of OFHEO to monitor safety and soundness of
Fund.
Sec. 573. Definitions.
Sec. 574. Effective date.
TITLE VI—OFFICE OF FEDERALISM IN OFFICE OF MANAGEMENT
AND BUDGET
Sec. 601. Establishment.
Sec. 602. Administrator.
Sec. 603. Functions of Administrator.
Sec. 604. Authorization of appropriations.
Sec. 605. Compensation of Administrator at level III of Executive Schedule.
Sec. 606. Effective date.
TITLE I—ABOLISHMENT OF DE-
PARTMENT OF HOUSING AND
URBAN DEVELOPMENT AND
DISPOSITION OF FUNCTIONS
Subtitle A—Abolishment of Depart-
ment of Housing and Urban De-
velopment
SEC. 101. REESTABLISHMENT OF DEPARTMENT AS HOUS-
ING AND URBAN DEVELOPMENT PROGRAMS
RESOLUTION AGENCY.
(a) REESTABLISHMENT OF DEPARTMENT.—The De-
partment of Housing and Urban Development is hereby
redesignated as the Housing and Urban Development Pro-
grams Resolution Agency, which shall be an independent
agency in the executive branch of the Government.
(b) RESOLUTION ADMINISTRATOR.—
(1) IN GENERAL.—There shall be at the head
of the Agency an Administrator of the Agency, who
shall be appointed by the President, by and with the
advice and consent of the Senate. The agency shall
be administered under the supervision and direction
of the Resolution Administrator. The Resolution Ad-
ministrator shall receive compensation at the rate
prescribed for level III of the Executive Schedule
under section 5314 of title 5, United States Code.
(2) INITIAL
APPOINTMENT.—Notwithstanding
any other provision of this title or any other law, the
President may, at any time after the date of the en-
actment of this Act, appoint an individual to serve
as Resolution Administrator (who may be the Sec-
retary of Housing and Urban Development), as such
position is established under paragraph (1). An ap-
pointment under this paragraph may not be con-
strued to affect the position of Secretary of Housing
and Urban Development or the authority of such
Secretary before the effective date under section
108(a).
(c) DUTIES OF RESOLUTION ADMINISTRATOR.—The
Resolution Administrator shall be responsible for—
(1) the administration and wind-up, during the
wind-up period (as such term is defined in section
149), of all functions of the Resolution Adminis-
trator pursuant to section 102 and titles III and V;
(2) the administration and wind-up, during the
wind-up period, of any outstanding obligations of the
Federal Government under any programs terminated
or repealed by this Act;
(3) coordinating and carrying out, with the Ad-
ministrator of the Office of Federal Housing Vouch-
er Assistance, the transition under section 312; and
(4) taking such other actions as may be nec-
essary, before the termination date under section
105(d), to wind up any outstanding affairs of the
Department of Housing and Urban Development.
SEC. 102. FUNCTIONS.
Except to the extent that a function is abolished or
vested in another official or agency by this Act, the Reso-
lution Administrator shall perform all functions that, im-
mediately before the effective date under section 108(a),
were functions of the Department of Housing and Urban
Development (or any office of the Department) or were
authorized to be performed by the Secretary of Housing
and Urban Development or any other officer or employee
of the Department in the capacity as such officer or em-
ployee.
SEC. 103. CONTINUATION OF SERVICE OF HUD OFFICERS.
(a) CONTINUATION OF SERVICE OF SECRETARY.—
The individual serving as the Secretary of Housing and
Urban Development on the effective date under section
108(a) may act as Resolution Administrator until the date
SEC. 107. CONFORMING AMENDMENTS.
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)
of title 3, United States Code, is amended by striking
‘‘Secretary of Housing and Urban Development,’’.
(b) EXECUTIVE DEPARTMENTS.—Section 101 of title
5, United States Code, is amended by striking the follow-
ing item:
‘‘The Department of Housing and Urban De-
velopment.’’.
(c) SECRETARY’S COMPENSATION.—Section 5312 of
title 5, United States Code, is amended by striking the
following item:
‘‘Secretary of Housing and Urban Develop-
ment.’’.
(d) DEPUTY SECRETARY’S COMPENSATION.—Section
5313 of title 5, United States Code, is amended by strik-
ing the following item:
‘‘Deputy Secretary of Housing and Urban De-
velopment.’’.
(e) INSPECTOR GENERAL’S COMPENSATION.—Sec-
tion 5315 of title 5, United States Code, is amended by
striking the following item:
‘‘Inspector General, Department of Housing
and Urban Development.’’.
(f) ASSISTANT SECRETARIES’, GENERAL COUNSEL’S,
AND CFO’S COMPENSATION.—Section 5315 of title 5,
United States Code, is amended—
(1) by striking the following item:
‘‘Assistant Secretaries of Housing and Urban
Development (8).’’;
(2) by striking the following item:
‘‘General Counsel of the Department of Hous-
ing and Urban Development.’’; and
(3) by striking the following item:
‘‘Chief Financial Officer, Department of Hous-
ing and Urban Development.’’.
(g) DEPARTMENT OF HOUSING AND URBAN DEVEL-
OPMENT ACT.—Effective on the termination date, the De-
partment of Housing and Urban Development Act (42
U.S.C. 3531 et seq.) is repealed.
SEC. 108. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this subtitle shall take effect, and the amendments
under this subtitle shall be made and shall apply, on Octo-
ber 1, 1995.
(b) PROVISIONS EFFECTIVE ON DATE OF ENACT-
MENT.—The following provisions of this subtitle shall take
effect on the date of the enactment of this Act:
(1) Section 101(b).
(2) Section 105(c).
(3) Section 106.
Subtitle B—Disposition of Particu-
lar Programs, Functions, and
Agencies 
of 
Department 
of
Housing and Urban Develop-
ment
SEC. 121. PROGRAM TRANSFERS.
(a) TRANSFER OF FUNCTIONS.—The functions that,
immediately before the effective date under section 108(a),
were performed by the Secretary of Housing and Urban
Development are hereby transferred, as follows:
(1) FAIR HOUSING ACT.—All such functions re-
lating to the Fair Housing Act, rights guaranteed
under the Fair Housing Act, and the Fair Housing
Assistance program under such Act (not including
any functions relating to the Fair Housing Initia-
tives program under section 561 of the Housing and
Community Development Act of 1987), are trans-
ferred to the Attorney General of the United States.
(2) INTERSTATE
LAND
SALES
FULL
DISCLO-
SURE ACT.—All such functions relating to the Inter-
state Land Sales Full Disclosure Act are transferred
to the Federal Trade Commission.
(3) REAL ESTATE SETTLEMENT PROCEDURES
ACT OF 1974.—All functions relating to the Real Es-
tate Settlement Procedures Act of 1974 are trans-
ferred to the Board of Governors of the Federal Re-
serve System.
(4) MANUFACTURED
HOME
STANDARDS.—All
such functions relating to the National Manufac-
tured Housing Construction and Safety Standards
Act of 1974 are transferred to the Administrator of
the Rural Housing and Community Development
Service of the Department of Agriculture.
(5) LEAD-BASED
PAINT
POISONING
PREVEN-
TION ACT.—All such functions relating to titles III,
IV, and V of the Lead-Based Paint Poisoning Pre-
vention Act are transferred to the Administrator of
the Environmental Protection Agency.
(6) RESIDENTIAL LEAD-BASED PAINT HAZARD
REDUCTION ACT OF 1992.—All such functions relat-
ing to sections 1015, 1016, 1017, 1018, 1051, 1052,
1053, and 1061 of the Housing and Community De-
velopment Act of 1992 are transferred to the Ad-
ministrator of the Environmental Protection Agency.
(7) HOME
MORTGAGE
DISCLOSURE
ACT
OF
1975.—All such functions relating to the Home
Mortgage Disclosure Act of 1975 are transferred to
the Secretary of the Treasury.
(b) TRANSITION ASSISTANCE.—The head of the
agency or office to which a function is transferred under
this section may, for such period of time as may reason-
ably be necessary to facilitate the orderly implementation
of this section, utilize the services of officers, employees,
and other personnel of the Housing and Urban Develop-
ment Programs Resolution Agency with respect to func-
tions transferred to the agency or office by this section.
SEC. 122. REESTABLISHMENT OF OFFICE OF FEDERAL
HOUSING ENTERPRISE OVERSIGHT AS INDE-
PENDENT OFFICE IN DEPARTMENT OF THE
TREASURY.
(a) REESTABLISHMENT.—The Office of Federal
Housing Enterprise Oversight of the Department of Hous-
ing and Urban Development (in this section referred to
as the ‘‘Office) is hereby reestablished as an office in the
Department of the Treasury.
(b) CONTINUATION OF SERVICE AND COMPENSATION
OF DIRECTOR.—The individual serving as the Director of
the Office on the effective date under section 108(a) may
act as Director of the Office as reestablished under this
section for the remainder of the term for which such per-
son was appointed.
(c) FUNCTIONS.—All functions relating to safety and
soundness of the enterprises (as such term is defined in
section 1303 of the Housing and Community Development
Act of 1992) that, immediately before the effective date
under section 108(a), were performed by the Secretary of
Housing and Urban Development (including the functions
under part 2 of subtitle A of title XIII of such Act, the
Federal National Mortgage Association Charter Act, and
the Federal Home Loan Mortgage Corporation Act) shall
be functions of the Secretary of the Treasury.
(d) PERSONNEL.—
(1) IN GENERAL.—The personnel employed in
connection with the functions referred to in sub-
section (c) shall be personnel of the Office as rees-
tablished by this section.
(2) EFFECT.—Any full-time or part-time per-
sonnel employed in permanent positions shall not be
separated or reduced in grade or compensation be-
cause of the reestablishment of the Office under this
section during the 1-year period beginning on the ef-
fective date under section 108(a).
(e) AMENDMENTS TO TITLE XIII OF HOUSING AND
COMMUNITY DEVELOPMENT ACT OF 1992.—Title XIII of
the Housing and Community Development Act of 1992
is amended—
Office of Federal Housing Enterprise Oversight
of the Department of Housing and Urban De-
velopment (1) to such Office, is deemed to refer
to the Office of Federal Housing Enterprise
Oversight of the Department of the Treasury,
and (2) to the Director of such Office or an
officer of such office, is deemed to refer to the
Director of the Office of Federal Housing En-
terprise Oversight of the Department of the
Treasury or an officer of such office.’’;
(3) in section 1315(d) (12 U.S.C. 4515(d))—
(A) in the subsection heading, by striking
‘‘HUD’’ and inserting ‘‘TREASURY DEPART-
MENT’’; and
(B) by striking ‘‘Department of Housing
and Urban Development’’ and inserting ‘‘De-
partment of the Treasury’’;
(4) 
in 
section 
1316(g)(3) 
(12 
U.S.C.
4516(g)(3))—
(A) by striking ‘‘(A)’’; and
(B) by striking, ‘‘and (B)’’ and all that fol-
lows through ‘‘Secretary’’;
(5) in section 1319F(2) (12 U.S.C. 4525(2)),
by striking ‘‘Department of Housing and Urban De-
velopment’’ and inserting ‘‘Department of the Treas-
ury’’;
(6) in section 1319G(a) (12 U.S.C. 4526(a)),
by striking the last sentence; and
(7) by striking the designation and heading for
part 2 of subtitle A and inserting the following:
‘‘PART 2—AUTHORITY OF SECRETARY OF
HOUSING AND URBAN DEVELOPMENT
‘‘SEC. 1320. DEFINITION OF SECRETARY.
‘‘For purposes of this part, the term ‘Secretary’
means the Secretary of Housing and Urban Develop-
ment.’’.
(f) AMENDMENTS
TO TITLE 5, UNITED STATES
CODE.—
(1) COMPENSATION.—Section 5313 of title 5,
United States Code, is amended by striking the item
relating to the Director of the Office of Federal
Housing Enterprise Oversight, Department of Hous-
ing and Urban Development, and inserting the fol-
lowing new item:
‘‘Director of the Office of Federal Housing En-
terprise Oversight, Department of the Treasury.’’.
(2) EXCLUSION
FROM
SENIOR
EXECUTIVE
SERVICE.—Section 3132(a)(1)(D) of title 5, United
States Code, is amended by striking ‘‘Department of
Housing and Urban Development’’ and inserting
‘‘Department of the Treasury’’.
(g) CLERICAL AMENDMENT.—The table of contents
in section 1(b) of the Housing and Community Develop-
ment Act of 1992 (Public Law 102–550; 106 Stat. 3679)
is amended by striking the item relating to part 2 of sub-
title A and inserting the following new items:
‘‘PART 2—AUTHORITY OF SECRETARY OF HOUSING AND URBAN
DEVELOPMENT
‘‘Sec. 1320. Definition of Secretary.’’.
SEC. 123. TERMINATION OF GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION.
(a) TERMINATION.—Section 302(a)(2)(A) of the Na-
tional Housing Act (12 U.S.C. 1717(a)(2)(A)) is amended
by adding at the end the following new sentences: ‘‘Upon
the effective date under section 125 of the Housing Oppor-
tunities and Empowerment Act, the body corporate de-
scribed in this subparagraph shall cease to exist. Upon
such effective date, any authority of the Department of
Housing and Urban Development under this Act or any
other Act to carry out duties and functions of the Associa-
tion shall terminate. On and after such effective date, the
Administrator of the Housing and Urban Development
Programs Resolution Agency may exercise the authority
of the Secretary of Housing and Urban Development to
carry out duties and functions of the Association, but only
to the extent necessary to fulfill outstanding obligations
of the Association and windup the business of the Associa-
tion (as provided in the plan established pursuant to sec-
tion 123(b) of such Act) and only until such time as such
authority is terminated (as provided by such plan). Such
Administrator may not guarantee, or make any commit-
ment to guarantee, any securities or notes based on or
backed by mortgages or otherwise engage in any new busi-
ness based on any authority of the Association.’’.
(b) PHASE-OUT PLAN.—The Resolution Adminis-
trator shall establish a plan for winding up the affairs of
the Government National Mortgage Association (in this
section referred to as the ‘‘Association’’). The plan—
(1) shall provide that the Association shall ter-
minate upon the effective date under section 125;
(2) shall provide for the Resolution Adminis-
trator to exercise the authority of the Secretary of
Housing and Urban Development to carry out duties
and functions of the Association, but only to the ex-
tent necessary to fulfill outstanding obligations of
the Association and windup the business of the As-
sociation;
(3) may provide for the Federal National Mort-
gage Association or the Federal Home Loan Mort-
gage Corporation or other private secondary mort-
gage market entities, as the Secretary considers ap-
propriate, to assume any secondary market functions
of the Association or similar functions;
(4) shall include any recommendations for legis-
lation that may be necessary for carrying out the
amendment made by subsection (a) and the plan
under this subsection; and
(5) shall provide for any authority of the Reso-
lution Administrator under paragraph (2) to termi-
nate as soon as possible, but in no event later than
the termination date.
The Resolution Administrator shall submit a copy of the
plan under this section to the Congress not later than the
expiration of the 12-month period beginning on the date
of the enactment of this Act.
SEC. 124. ABOLISHMENT OF OFFICE OF PUBLIC AFFAIRS.
The Office of Public Affairs of the Department of
Housing and Urban Development is abolished and shall
not be a function of the Housing and Urban Development
Programs Resolution Agency pursuant to section 102.
SEC. 125. EFFECTIVE DATE.
This subtitle shall take effect, and the amendments
under this subtitle shall be made and shall apply, on the
effective date specified in section 108(a).
Subtitle C—Miscellaneous
Provisions
SEC. 141. REFERENCES.
Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any
document of or pertaining to an office from which a func-
tion is transferred by this Act—
(1) to the Secretary of Housing and Urban De-
velopment or an officer of the Department of Hous-
ing and Urban Development, is deemed to refer to
the head of the department or office to which such
function is transferred; and
(2) to the Department of Housing and Urban
Development is deemed to refer to the department
or office to which such function is transferred.
SEC. 142. EXERCISE OF AUTHORITIES.
Except as otherwise provided by law, a Federal offi-
cial to whom a function is transferred by this Act may,
for purposes of performing the function, exercise all au-
thorities under any other provision of law that were avail-
able with respect to the performance of that function to
the official responsible for the performance of the function
immediately before the effective date of the transfer of the
function.
SEC. 143. SAVINGS PROVISIONS.
(a) LEGAL DOCUMENTS.—All orders, determinations,
rules, regulations, permits, grants, loans, contracts, agree-
ments, certificates, licenses, and privileges—
(1) that have been issued, made, granted, or al-
lowed to become effective by the President, the Sec-
retary of Housing and Urban Development, any offi-
cer or employee of any office transferred or reestab-
lished by this Act, or any other Government official,
or by a court of competent jurisdiction, in the per-
formance of any function that is transferred by this
Act, and
(2) that are in effect on the effective date of
such transfer (or become effective after such date
pursuant to their terms as in effect on such effective
date),
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, any other author-
ized official, a court of competent jurisdiction, or operation
of law.
(b) PROCEEDINGS.—This Act shall not affect any
proceedings or any application for any benefits, service,
license, permit, certificate, or financial assistance pending
on the date of the enactment of this Act before an agency
or office transferred by this Act, but such proceedings and
applications shall be continued. Orders shall be issued in
such proceedings, appeals shall be taken therefrom, and
payments shall be made pursuant to such orders, as if this
Act had not been enacted, and orders issued in any such
proceeding shall continue in effect until modified, termi-
nated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of
law. Nothing in this subsection shall be considered to pro-
hibit the discontinuance or modification of any such pro-
ceeding under the same terms and conditions and to the
same extent that such proceeding could have been discon-
tinued or modified if this Act had not been enacted.
(c) SUITS.—This Act shall not affect suits com-
menced before the date of the enactment of this Act, and
in all such suits, proceeding shall be had, appeals taken,
and judgments rendered in the same manner and with the
same effect as if this Act had not been enacted.
(d) NONABATEMENT OF ACTIONS.—No suit, action,
or other proceeding commenced by or against the Depart-
ment of Housing and Urban Development or the Secretary
of Housing and Urban Development, or by or against any
individual in the official capacity of such individual as an
officer or employee of an office transferred or reestab-
lished by this Act, shall abate by reason of the enactment
of this Act.
(e) CONTINUANCE OF SUITS.—If any officer of the
Department of Housing and Urban Development in the
official capacity of such officer is a party to a suit with
respect to the function of the officer, and under this Act
such function is transferred to any other officer or office,
then such suit shall be continued with the other officer
or the head of such other office, as applicable, substituted
or added as a party.
SEC. 144. TRANSFER OF ASSETS.
Except as otherwise provided in this Act, so much
of the personnel, property, records, and unexpended bal-
ances of appropriations, allocations, and other funds em-
ployed, used, held, available, or to be made available in
connection with a function transferred to an official by
this Act shall be available to the official at such time or
times as the Director of the Office of Management and
Budget directs for use in connection with the functions
transferred.
SEC. 145. DELEGATION AND ASSIGNMENT.
Except as otherwise provided in this Act or otherwise
expressly prohibited by law, an official to whom functions
are transferred under this Act (including the head of any
officer to which functions are transferred) may delegate
any of the functions so transferred to such officers and
employees of the agency or office of such official as the
official may designate, and may authorize successive
redelegations of such functions as may be necessary or ap-
propriate. No delegation of functions under this section
or under any other provision of this Act shall relieve the
official to whom a function is transferred under this Act
of responsibility for the administration of the function.
SEC. 146. AUTHORITY OF OFFICE OF MANAGEMENT AND
BUDGET 
WITH 
RESPECT 
TO 
FUNCTIONS
TRANSFERRED.
(a) DETERMINATIONS.—If necessary, the Office of
Management and Budget shall make any determination of
the functions that are transferred under this Act.
(b) INCIDENTAL TRANSFERS.—The Director of the
Office of Management and Budget, at such time or times
as the Director shall provide, may make such incidental
dispositions of personnel, assets, liabilities, grants, con-
tracts, property, records, and unexpended balances of ap-
propriations, authorizations, allocations, and other funds
held, used, arising from, available to, or to be made avail-
able in connection with such functions, as may be nec-
essary to carry out the provisions of this Act.
(c) TERMINATIONS.—The Director of the Office of
Management and Budget shall provide for the termination
of the affairs of all entities terminated and for such fur-
ther measures and dispositions as may be necessary to ef-
fectuate the purposes of this Act.
SEC. 147. PROPOSED CHANGES IN LAW.
Not later than one year after the date of the enact-
ment of this Act, the Director of the Office of Manage-
ment and Budget shall submit to the Congress a descrip-
tion of any changes in Federal law necessary to reflect
abolishments, transfers, reestablishments, terminations,
and disposals under this Act.
SEC. 148. DEFINITION OF TRANSFER.
For purposes of this title, the vesting of a function
in a department or office pursuant to reestablishment of
an office shall be considered to be the transfer of the func-
tion.
SEC. 149. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) FUNCTION.—The term ‘‘function’’ includes
any duty, obligation, power, authority, responsibility,
right, privilege, activity, or program.
(2) OFFICE.—The term ‘‘office’’ includes any
office, administration, agency, institute, council,
unit, organizational entity, or component thereof.
(3) RESOLUTION
ADMINISTRATOR.—The term
‘‘Resolution Administrator’’ means the Adminis-
trator of the Housing and Urban Development Pro-
grams Resolution Agency.
(4) TERMINATION
DATE.—The term ‘‘termi-
nation date’’ means the termination date under sec-
tion 105(d).
(5) WIND-UP PERIOD.—The term ‘‘wind-up pe-
riod’’ means the period beginning on the effective
date under section 108(a) and ending on the termi-
nation date.
TITLE 
II—TENANT-BASED
VOUCHERS FOR RENTAL AND
HOMEOWNERSHIP 
ASSIST-
ANCE
Subtitle A—Block Grants for State
Housing Voucher Assistance
SEC. 201. FEDERAL ASSISTANCE FOR STATE VOUCHER PRO-
GRAM.
(a) AUTHORITY
AND PURPOSE.—For fiscal year
1996 and thereafter, the Administrator of the Federal
Housing Voucher Agency (appointed pursuant to subtitle
D) shall make assistance under this subtitle available to
each eligible State (in the amount of the allocation deter-
mined under section 251 for the State) for the purpose
of providing housing voucher assistance on behalf of low-
income families for the rental or ownership of existing
dwelling units by such families.
(b) ELIGIBLE STATES.—For purposes of this sub-
title, the term ‘‘eligible State’’ means a State that has pro-
vided notice under section 252.
SEC. 202. BLOCK GRANTS.
Assistance under this subtitle for an eligible State
shall be provided in the form of a grant to the State for
a fiscal year, which may be used only (except as provided
in section 204)—
(1) to provide housing voucher assistance in ac-
cordance with the requirements of section 203; and
(2) to the extent authorized in section 206, for
administrative costs of providing such voucher as-
sistance.
SEC. 203. STATE VOUCHER PROGRAM REQUIREMENTS.
(a) IN GENERAL.—With respect to a grant under this
subtitle to an eligible State, housing voucher assistance
in accordance with the requirements of this section is fi-
nancial assistance that complies with the following re-
quirements:
(1) HOUSING
USE.—The assistance shall be
available only to cover rental or ownership expenses
of a dwelling unit that is the primary residence of
the individual, household, or family to or on behalf
of whom the assistance is provided and is located
within the State to which the grant is made.
(2) INDIVIDUAL
ASSISTANCE.—The assistance
shall be provided to or on behalf of particular indi-
viduals, households, or families who are determined
to be eligible for such assistance based on the in-
come, resources, or financial need of the individual,
household, or family, subject to the limitation under
paragraphs (3) and (5).
(3) LOW-INCOME
USE.—The assistance shall
not be available to or for any individual, household,
or family whose annual income exceeds the median
income for the area, as such median income is deter-
mined by the Voucher Administrator for purposes of
the Federal housing voucher assistance program
under subtitle B, with adjustments for smaller and
larger families.
(4) AMOUNT OF ASSISTANCE.—The amount of
assistance provided to or on behalf of an individual,
household, or family shall be determined based on
the income, resources, or financial need of the indi-
vidual, household, or family.
(5) DURATION
OF
ASSISTANCE.—Assistance
may not be provided for any individual, household,
or family for more than a specific number of
months, as shall be established by the State taking
into consideration any limitations on the duration of
eligibility of individuals, households, or families for
general welfare assistance under any such program
of the State.
(6) ELIGIBLE HOUSING.—The assistance may
not be used for the rental or occupancy of a dwelling
unit that fails to comply with any applicable State
or local laws, standards, or codes relating to housing
construction or condition, or fails to comply with
such other requirements as the State may, in its dis-
cretion, establish.
(7) CHOICE
OF
HOUSING.—Among dwelling
units for which the assistance is eligible to be used,
the choice of the dwelling unit for which the assist-
ance is used shall be solely within the discretion of
the family to whom or on behalf of whom the assist-
ance is provided.
(b) ADMINISTRATION.—The provision of housing
voucher assistance using grant amounts under this sub-
title shall be administered by the eligible State receiving
the grant, a political subdivision of the State, or any other
public or private entity selected or authorized by the State.
SEC. 204. WAIVER OF VOUCHER PROGRAM REQUIREMENTS
AND FLEXIBLE USE OF GRANT AMOUNTS.
(a) IN GENERAL.—Pursuant to a request by a State
that meets the requirements under this section, the Vouch-
er Administrator shall waive the requirements of this sub-
title requiring use of grant amounts under this subtitle
for voucher assistance and authorize the State to use such
amounts for any affordable housing activities under sec-
tion 404(e), subject to the provisions of subsections (g),
(h), and (i) of section 404. A waiver under this section
shall be effective for the first fiscal year commencing after
the request is approved and each fiscal year thereafter.
(b) CONSISTENCY WITH STATE WELFARE PRO-
GRAM.—Affordable housing activities conducted with
grant amounts under this subtitle pursuant to a waiver
under this section for a State shall, to the extent the State
determines reasonable and practicable, be consistent with
the purposes of and requirements under the general wel-
fare assistance program of the State, including purposes
and requirements to engage in work or training and pro-
viding for duration of eligibility.
(c) WAIVER REQUEST.—A request for a waiver under
this section for a State shall—
(1) be made in writing;
(2) be signed by the chief executive officer of
the State;
(3) describe how the use of the grant amounts
will comply with the requirement under subsection
(b);
(4) include a certification that grant amounts
made available to the State under this subtitle will
be used in compliance with subsection (a); and
(5) include a certification that a plan for the
use of any grant amounts will be made publicly
available prior to any use of such amounts.
(d) STANDARD FOR WAIVER.—The Voucher Admin-
istrator may not disapprove a request for a waiver un-
less—
(1) the request does not comply with the re-
quirements under subsection (c); or
(2) the Voucher Administrator determines that
the description under subsection (c)(3) evidences an
unreasonable inconsistency between the use of the
grant amounts and the purposes of and require-
ments under the general welfare assistance program
of the State.
In disapproving a request for a waiver under this section,
the Administrator shall inform the State of the reasons
for the disapproval, and such disapproval shall not affect
the consideration of any subsequent request by a State
for a waiver.
(e) PROHIBITION AGAINST REVOKING WAIVER.—
Once the Voucher Administrator grants a waiver under
this section, the Voucher Administrator may not subse-
quently repeal, revoke, waive, annul, or otherwise limit or
nullify the waiver. This subsection shall not affect the au-
thority of the Voucher Administrator to take action under
section 205.
SEC. 205. REMEDIES FOR NONCOMPLIANCE.
(a) REDUCTION OR TERMINATION OF ASSISTANCE.—
If the Voucher Administrator finds on the record after op-
portunity for an agency hearing that a State receiving a
grant under this subtitle has failed to comply substantially
with any provision of this subtitle, the Voucher Adminis-
trator shall (notwithstanding section 201(a))—
(1) terminate payments under this subtitle to
the State; or
(2) reduce payments under this subtitle to the
State by an amount equal to the amount of such
payments that were not expended in accordance with
this subtitle.
(b) RESUMPTION OF ASSISTANCE.—If the Voucher
Administrator takes action under subsection (a) with re-
spect to a State, the Voucher Administrator shall resume
payments of assistance under this subtitle to the State at
such time that the Voucher Administrator determines the
State has or will comply with the provisions of this sub-
title.
(c) CIVIL ACTION.—
(1) REFERRAL.—In lieu of, or in addition to,
any action authorized by subsection (a), if the
Voucher Administrator has reason to believe that a
State receiving assistance under this subtitle has
failed to comply substantially with any provision of
this subtitle, the Voucher Administrator may refer
the matter to the Attorney General of the United
States with a recommendation that an appropriate
civil action be instituted.
(2) ACTION.—Upon such a referral the Attor-
ney General may bring a civil action in any United
States district court having venue thereof for such
relief as may be appropriate, including an action to
recover the amount of the assistance furnished
under this subtitle which was not expended in ac-
cordance with this subtitle, or for mandatory or in-
junctive relief.
(d) CIVIL ACTION TO REVIEW OF REMEDIAL AC-
TIONS.—Any State that receives notice under subsection
(a) of the termination or reduction of payments under this
subtitle may, within 60 days after receiving such notice,
file with the United States Court of Appeals for the circuit
in which such State is located, or in the United States
Court of Appeals for the District of Columbia, a petition
for review of the Voucher Administrator’s action. The peti-
tioner shall forthwith transmit copies of the petition to the
Voucher Administrator and the Attorney General of the
United States, who shall represent the Voucher Adminis-
trator in the litigation.
SEC. 206. ADMINISTRATIVE FEE.
(a) ESTABLISHMENT.—The Voucher Administrator
shall establish a fee for the costs incurred by an eligible
State in administering the provision of housing voucher
assistance in accordance with the requirements of section
203. From any amounts made available in a grant under
this subtitle for a fiscal year, the State may use an amount
not exceeding the fee for costs of administering such hous-
ing voucher assistance.
(b) LIMITATION.—A State that receives a grant
under this subtitle for a fiscal year may not use such grant
amounts for any costs (for the fiscal year) of administer-
ing the State program for housing voucher assistance in
an amount that exceeds the administrative fee under this
section for the State.
(c) AMOUNT.—The amount of the administrative fee
under subsection (a) for a State for a fiscal year shall be
an amount, determined by the Voucher Administrator, to
be equivalent to the aggregate of the amounts of adminis-
trative fees that would have been determined under section
233 for local voucher assistance agencies in the State if
the amount allocated for the State under section 251 were
provided for assistance under subtitle B.
SEC. 207. MONITORING.
The Voucher Administrator may require States re-
ceiving assistance under this subtitle in any fiscal year to
report to the Administrator regarding the use of such
amounts.
Subtitle B—Federal Housing
Voucher Assistance Program
SEC. 221. PROGRAM AUTHORITY.
For fiscal years 1996 and thereafter, the Voucher
Administrator shall carry out a program under this sub-
title in the States that have not provided notice under sec-
tion 252, to provide housing assistance payments on a
monthly basis, on behalf of low-income families, to cover
costs incurred by such families in renting or owning exist-
ing dwelling units.
SEC. 222. ELIGIBLE FAMILIES.
(a) LOW-INCOME AND ELIGIBLE HOUSING REQUIRE-
MENTS.—Housing assistance under this subtitle may be
provided only on behalf of families who are low-income
families at the time that such assistance is made available
for the families and only for the rental or ownership of
eligible dwelling units by such families.
(b) DETERMINATION OF INCOME ELIGIBILITY.—The
local voucher assistance agency providing housing assist-
ance under this subtitle shall be responsible for determin-
ing the eligibility of a family for housing assistance and
selecting the family as an assisted family. The Voucher
Administrator shall require each local voucher assistance
agency to issue each family selected as an assisted family
a voucher, which shall be a document that evidences such
selection and the commitment of the agency to provide
housing assistance on behalf of the family and that states
the terms and conditions of the housing assistance to be
provided on behalf of the family.
(c) INCOME REVIEWS.—Each local voucher assist-
ance agency shall conduct annual reviews of the incomes
of the families assisted under this subtitle by the agency
to determine eligibility for such assistance and the appro-
priate amount of such assistance.
(d) DURATION OF ASSISTANCE.—
(1) 5-YEAR LIMITATION.—Except as provided in
paragraph (3), a family may not be provided housing
assistance under this title for more than 60 months,
regardless of whether such months of assistance are
consecutive or not.
(2) COUNTING.—For purposes of this section,
the number of months that a family shall be consid-
ered to previously have been provided assistance
under this title shall be equal to the number of
months that the longest-assisted family member re-
sided (for any portion of a month) in a household
assisted under this title at a time when such member
was 18 years of age or older.
(3) EXEMPTION OF ELDERLY AND DISABLED
FAMILIES.—The limitation under paragraph (1)
shall not apply to—
(A) elderly families and disabled families;
and
(B) other elderly persons and persons with
disabilities, as the Voucher Administrator may
provide, except that such exceptions shall be de-
signed to ensure that the benefit of the excep-
tions are derived primarily by elderly persons
and persons with disabilities and not by
nonelderly and nondisabled members of a
household who are not essential to their care or
well-being.
(4) LONGEST-ASSISTED FAMILY MEMBER.—For
purposes of paragraph (2), the term ‘‘longest-as-
sisted family member’’ means, with respect to a fam-
ily, the member of the family who has resided (for
any portion of a month) in a household assisted
under this title for more months than any other
member of the family.
SEC. 223. AMOUNT OF ASSISTANCE PAYMENT.
(a) IN GENERAL.—Except as provided in subsection
(c), the amount of the monthly assistance payment on be-
half of family renting or owning an eligible dwelling unit
shall be the amount by which (1) the payment standard
established under section 224 for a dwelling unit of the
applicable size and located in the area in which the family
resides, exceeds (2) 30 percent of the monthly adjusted
income of the family.
(b) EXCLUSION OF EQUITY FROM INCOME.—In de-
termining the monthly assistance payment for a family on
behalf of whom housing assistance is provided under sec-
tion 230, no amount imputed from the equity of the family
in such dwelling unit may be included in the income of
the family.
(c) LIMITATIONS TO PREVENT EXCESSIVE ASSIST-
ANCE PAYMENTS.—The amount of the monthly assistance
payment on behalf of a family may not in any case ex-
ceed—
(1) for any family for whom 30 percent of the
adjusted income of the family exceeds the rent for
the dwelling unit of the family (or the monthly
homeownership expenses for the dwelling unit owned
by 1 or more members of the family), 50 percent of
the difference between the payment standard appli-
cable to the dwelling unit and the actual rent
charged by the owner for the assisted dwelling unit;
(2) for any family renting an eligible dwelling
unit using housing assistance, the amount by which
the rent for the dwelling unit (including the amount
allowed for utilities in the case of a unit with sepa-
rate utility metering) exceeds 10 percent of the
monthly income of the family; or
(3) for any family residing in a dwelling unit
owned by 1 or more members of the family, the
amount by which the monthly homeownership ex-
penses, as determined in accordance with require-
ments established by the Voucher Administrator, ex-
ceed 10 percent of the monthly income of the family.
(d) RETURN
OF CERTAIN SAVINGS
TO FEDERAL
TREASURY.—Any local voucher assistance agency that
makes assistance payments in a fiscal year on behalf of
a family described in subsection (c)(1) shall reserve from
amounts made available to the agency for such year an
amount equal to 50 percent of the difference referred to
in such subsection. The Voucher Administrator shall, at
the end of such fiscal year, recapture any amounts so re-
served and such amounts shall be covered into the General
Fund of the Treasury of the United States.
SEC. 224. PAYMENT STANDARD AND FAIR MARKET RENT-
ALS.
(a) ESTABLISHMENT.—The amount of housing as-
sistance under this subtitle to be provided monthly on be-
half of low-income families shall be determined using pay-
ment standards under this section. The payment stand-
ards shall be based on fair market rentals established
under subsection (b) and shall be established by housing
market area for various sizes and types of existing rental
dwelling units.
(b) FAIR MARKET RENTALS.—
(1) ESTABLISHMENT.—The Voucher Adminis-
trator shall provide for an independent entity to es-
tablish fair market rentals, by housing market area,
for various sizes and types of existing rental dwelling
units that are eligible dwelling units (as such term
is defined in section 225(b)). For a market area, the
fair market rental for a dwelling unit of a particular
size and type in the market area shall be a dollar
amount that reflects the rental amount for a stand-
ard quality rental unit of such size and type in the
market area that is an eligible dwelling unit.
(2) ANNUAL ADJUSTMENT.—The Voucher Ad-
ministrator shall provide for the independent entity
responsible for establishing fair market rentals to
annually adjust each fair market rental in effect
under this subsection, to be effective on October 1,
to the extent that changes in rents for existing rent-
al dwelling units of various sizes and types in the
market area require such adjustment for continued
compliance with the requirements of paragraph (1).
Any adjustments shall be based on the most recent
data available trended so the payment standards will
be current for the year to which they apply.
(3) EFFECTIVENESS.—The Voucher Adminis-
trator shall cause to be published in the Federal
Register any proposed fair market rentals or adjust-
ments in a manner to provide reasonable time for
public comment to the independent entity establish-
ing such fair market rentals. The proposed fair mar-
ket rentals shall become effective upon the date of
publication in final form in the Federal Register.
SEC. 225. ELIGIBLE DWELLING UNITS.
(a) SELECTION BY FAMILY.—The determination of
the eligible dwelling unit in which an assisted family re-
sides and for which housing assistance is provided under
this subtitle shall be made solely by the assisted family.