I
104TH CONGRESS
1ST SESSION
H. R. 30
To amend and extend certain laws relating to housing and community
development, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. GONZALEZ (for himself, Mr. VENTO, Mr. SCHUMER, Mr. FRANK of Mas-
sachusetts, Mr. KANJORSKI, Mr. KENNEDY
of Massachusetts, Mr.
MFUME, Ms. WATERS, Mr. GUTIERREZ, Ms. ROYBAL-ALLARD, Mr.
BARRETT of Wisconsin, Mr. WATT, Mr. HINCHEY, Mr. SANDERS, Mr.
RUSH, and Ms. FURSE) introduced the following bill; which was referred
to the Committee on Banking and Financial Services
A BILL
To amend and extend certain laws relating to housing and
community development, 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 AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Housing and Community Development Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Effective date.
TITLE I—HOUSING ASSISTANCE
Subtitle A—Public and Indian Housing
Sec. 101. Definition of families.
Sec. 102. Family self sufficiency program.
Sec. 103. Public housing rent reform.
Sec. 104. Sale of public housing to nonprofit intermediaries.
Sec. 105. Repeal of least-cost limitation on public housing new construction.
Sec. 106. Regulatory relief and paperwork reduction for high-performing public
housing agencies.
Sec. 107. Designated housing.
Sec. 108. Eligible uses of emergency modernization funds.
Sec. 109. Use of modernization funds for replacement housing.
Sec. 110. Authority for public housing agencies to leverage amounts for re-
placement and modernization.
Sec. 111. Demolition and disposition of public housing.
Sec. 112. Revitalization of severely distressed public housing.
Sec. 113. Applicability of public housing amendments to Indian housing.
Sec. 114. Sale of certain scattered-site public housing.
Sec. 115. Community Patnerships Against Crime.
Sec. 116. Public housing resident opportunity.
Subtitle B—Section 8 Rental Assistance
Sec. 121. Merger of section 8 rental assistance programs.
Sec. 122. Incentives to refinance high interest rate mortgages.
Sec. 123. Use of excess residual receipts.
Sec. 124. Renewal of section 8 contracts.
Sec. 125. Treatment of certain projects.
Subtitle C—Homeownership Programs
Sec. 131. National Homeownership Fund.
Sec. 132. Section 235 mortgage refinancing.
Sec. 133. Residential lead-based paint hazard reduction.
Sec. 134. Federal Deposit Insurance Corporation affordable housing program.
Sec. 135. State agencies as sureties.
Subtitle D—Home Investment Partnerships
Sec. 141. Eligible use of investment.
Sec. 142. Qualification as affordable rental housing.
Sec. 143. Repayment of investment.
Sec. 144. Matching requirements.
Sec. 145. Labor requirements.
Subtitle E—Supportive Housing Programs
Sec. 151. Supportive housing for the elderly.
Sec. 152. Supportive housing for persons with disabilities.
Sec. 153. Revised congregate services.
Sec. 154. Supportive housing assistance for elderly independence.
Subtitle F—Mortgage Insurance and Secondary Mortgage Market
Sec. 161. Extension of multifamily housing mortgage auction provisions.
Sec. 162. Streamlined refinancing for HUD-held mortgages.
Sec. 163. Delegation of single family mortgage insuring authority to direct en-
dorsement mortgages.
TITLE II—COMMUNITY DEVELOPMENT
Sec. 201. Eligible activities.
Sec. 202. Reallocations.
Sec. 203. Use of UDAG recaptures.
Sec. 204. Extension of certain CDBG assistance.
Sec. 205. Colonias assistance program.
Sec. 206. Youth build program.
TITLE III—HOMELESS ASSISTANCE
Sec. 301. Short title.
Subtitle A—Reorganization of Certain McKinney Act Housing Provisions
Sec. 311. Flexible grant program.
Sec. 312. Regulations and transition provisions.
Sec. 313. Report on single occupancy assistance.
Subtitle B—Other Housing Assistance Programs for the Homeless Under
McKinney Act
Sec. 321. Section 8 assistance for single room occupancy dwellings.
Sec. 322. Section 8 assistance for shelter plus care single room occupancy
dwellings.
Sec. 323. Rural homelessness grant program.
Sec. 324. Clerical amendment.
Subtitle C—Miscellaneous Homeless Housing Provisions
Sec. 331. Strategy to eliminate unfit transient facilities.
TITLE IV—RURAL HOUSING PROGRAMS
Sec. 401. Program authorizations.
Sec. 402. Eligibility of Native Americans for rural housing programs.
Sec. 403. Escrow fund.
Sec. 404. Section 502 homeownership loans.
Sec. 405. Loan guarantees.
Sec. 406. Prepayment of rural rental housing loans.
Sec. 407. Designation of underserved areas and reservation of assistance.
Sec. 408. Administrative appeals.
Sec. 409. Section 515 rural rental housing.
Sec. 410. Optional conversion of rental assistance payments to operating sub-
sidy for migrant farmworker projects.
Sec. 411. Definition of rural area.
Sec. 412. Priority for rural housing voucher assistance.
Sec. 413. Loan guarantees for multifamily rental housing in rural areas.
TITLE V—AUTHORIZATIONS OF APPROPRIATIONS
Sec. 501. Low-income housing authorization.
Sec. 502. Public housing operating subsidies.
Sec. 503. Indian housing loan guarantees.
Sec. 504. New construction of projects for disabled families.
Sec. 505. Emergency modernization funds.
Sec. 506. Family investment centers.
Sec. 507. Service coordinators.
Sec. 508. Community partnerships against crime.
Sec. 509. Early childhood development program.
Sec. 510. Section 8 new construction and substantial rehabilitation contract re-
newals.
Sec. 511. Housing counseling.
Sec. 512. Headquarters reserve.
Sec. 513. Supportive housing for the elderly and persons with disabilities.
Sec. 514. Congregate services.
Sec. 515. Supportive housing assistance for elderly independence.
Sec. 516. Housing opportunities for persons with AIDS.
Sec. 517. National Homeownership Fund.
Sec. 518. Low-income housing preservation.
Sec. 519. Flexible subsidy program.
Sec. 520. Home investment partnerships.
Sec. 521. Community investment demonstration program.
Sec. 522. Youthbuild program.
Sec. 523. Community development block grant and section 108 loan guaran-
tees.
Sec. 524. Economic development grants.
Sec. 525. Neighborhood Reinvestment Corporation.
Sec. 526. John Heinz neighborhood development program.
Sec. 527. Colonias assistance program.
Sec. 528. New towns demonstration program for emergency relief of Los Ange-
les.
Sec. 529. FHA mortgage insurance aggregate limit.
Sec. 530. GNMA mortgage-backed securities guarantee limit.
Sec. 531. Exclusion of GNMA from HUD personnel ceilings.
Sec. 532. HUD research and development.
Sec. 533. Residential lead-based paint hazard reduction.
Sec. 534. Fair housing initiatives program.
Sec. 535. National American Indian Housing Council.
Sec. 536. Housing Assistance Council.
Sec. 537. Flexible block grant assistance under Stewart B. McKinney Homeless
Assistance Act.
Sec. 538. Section 8 assistance for single room occupancy dwellings.
Sec. 539. Section 8 assistance for shelter plus care single room occupancy
dwellings.
Sec. 540. Rural homelessness program.
Sec. 541. Interagency Council on the Homeless.
Sec. 542. Chairperson of Interagency Council on Homeless.
Sec. 543. Extension of Interagency Council on the Homeless.
Sec. 544. Federal Emergency Management Agency food and shelter program.
SEC. 2. EFFECTIVE DATE.
The provisions of this Act and the amendments made
by this Act shall take effect and shall apply upon the date
of the enactment of this Act, unless such provisions or
amendments specifically provide for effectiveness or appli-
cability upon another date certain.
TITLE I—HOUSING ASSISTANCE
Subtitle A—Public and Indian Housing
SEC. 101. DEFINITION OF FAMILIES.
The first sentence of section 3(b)(3)(B) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is
amended by inserting ‘‘or, in the case of disabled families,
other household members’’ after ‘‘spouses’’.
SEC. 102. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) SCOPE.—Section 23(b)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437u(b)(3)) is amended
to read as follows:
‘‘(3) SCOPE.—Each public housing agency re-
quired to carry out a local program under this sec-
tion shall make assistance under the program avail-
able in a fiscal year, subject only to the availability
of amounts for such assistance, to a number of fami-
lies who are assisted by the agency under section 8
or reside in public housing of the agency that is
equivalent to the sum of—
‘‘(A) the increase for such year in the
number of families assisted under section 8 (as
compared to the preceding year); and
‘‘(B) the increase for such year in the
number of public housing dwelling units made
available by the agency (as compared to the
preceding year).’’.
(b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Sec-
tion 23(d) of the United States Housing Act of 1937 (42
U.S.C. 1437u(d)) is amended—
(1) in paragraph (2)—
(A) in the 1st sentence, by striking ‘‘shall’’
and inserting ‘‘may’’;
(B) in the 2d sentence, by inserting after
‘‘area median income’’ the following: ‘‘that
choose to escrow amounts under this para-
graph’’;
(C) in the 2d sentence, by striking ‘‘shall’’
and inserting ‘‘may’’; and
(D) by striking the 3d and 4th sentences
and inserting the following new sentence:
‘‘Amounts in the escrow account may be with-
drawn by the participating family upon the suc-
cessful performance of the obligations of the
family under the contract of participation en-
tered into by the family under subsection (c), as
determined according to the specific goals and
terms included in the contract, and under other
circumstances, as determined by the public
housing agency with the approval of the Sec-
retary.’’; and
(2) by striking the 2d sentence of paragraph
(3) and inserting the following new sentence: ‘‘The
plan may require the establishment of escrow sav-
ings accounts under paragraph (2), a description of
the procedures for release of escrowed amounts, and
any other incentives designed by the public housing
agency.’’.
(c) SERVICE COORDINATORS.—Section 23 of the
United States Housing Act of 1937 (42 U.S.C. 1437u)
is amended—
(1) in the last sentence of subsection (b)(1), by
inserting ‘‘under section 671 of the Housing and
Community Development Act of 1992’’ after ‘‘serv-
ice coordinator’’; and
(2) in subsection (h)—
(A) in paragraph (2), by striking ‘‘(includ-
ing the costs of employing a full-time service co-
ordinator)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) CONTRACT
ADJUSTMENTS
FOR
SERVICE
COORDINATORS.—If, in providing rental assistance
under section 8 of the United States Housing Act of
1937 for a public housing agency carrying out a
local program under this section in any fiscal year,
the Secretary increases the amount provided for the
agency so that the number of families assisted by
the agency in the year is greater than the number
of families assisted in the preceding year, the Sec-
retary may increase the amount annually provided
for the agency to provide for the costs of employing
or otherwise retaining the services of one or more
service coordinators referred to in subsection (b)(1)
of this section. The Secretary may also, under any
existing contract for assistance under section 8, in-
clude the cost of employing such service coordinators
to the extent that amounts for amendments to such
contracts are available.’’.
(d) REPEAL OF INCENTIVE AWARD ALLOCATION.—
Section 23 of the United States Housing Act of 1937 (42
U.S.C. 1437u) is amended—
(1) by striking subsection (i); and
(2) by redesignating subsections (j) through (o)
as subsections (i) through (n), respectively.
(e) TECHNICAL AMENDMENT.—Section 23(h)(2) of
the United States Housing Act of 1937 (42 U.S.C.
1437u(h)(2)) is amended by striking the last sentence.
(f) USE OF COMMUNITY ACTION AGENCIES.—Section
23(b) of the United States Housing Act of 1937 (42
U.S.C. 1437u(b)) is amended by adding at the end the
following new paragraph:
‘‘(5) USE OF COMMUNITY ACTION AGENCIES.—
A pubilc housing agency may enter into agreements
with any local community action agency receiving as-
sistance under the Community Services Block Grant
Act providing for such agency to carry out the local
program of the public housing agency or to provide
any supportive services under the local program.’’.
SEC. 103. PUBLIC HOUSING RENT REFORM.
(a) CEILING RENTS.—Section 3(a)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is
amended—
(1) in subparagraph (A)—
(A) in clause (i), by striking ‘‘and ap-
proved by the Secretary’’; and
(B) by striking clause (iii) and inserting
the following new clause:
‘‘(iii) at the election of such agency, is—
‘‘(I) not less than the average monthly
amount of debt service and operating expenses
attributable to dwelling units of similar size in
public housing projects owned and operated by
such agency;
‘‘(II) not less than the reasonable rental
value of the unit, as determined by the agency;
or
‘‘(III) not less than the local market rent
determined by the agency for comparable units
of similar size pursuant to the procedures pre-
scribed by the Secretary for determining rent
reasonableness under the program for rental
certificate assistance under section 8(b).’’;
(2) by redesignating subparagraph (B) as sub-
paragraph (D); and
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraphs:
‘‘(B) Any ceiling rents established by a public housing
agency pursuant to this paragraph may be adjusted by
the agency.
‘‘(C)(i) Any ceiling rents established pursuant to
subclause (I) or (III) of subparagraph (A)(iii) shall take
effect at the discretion of the public housing agency.
‘‘(ii) Any ceiling rents established pursuant to
subclause (II) of subparagraph (A)(iii) may not take effect
before the issuance of regulations to carry out such
subclause, which shall be issued by the Secretary not later
than 180 days after the date of the enactment of the
Housing and Community Development Act of 1994.
‘‘(iii) Before the effectiveness of regulations under
clause (ii), an agency may implement ceiling rents which
shall be equal to the 95th percentile of the rent paid for
a unit of comparable size by tenants in the same project
or a group of comparable projects totaling 50 units or
more.’’.
(b) EXCLUSIONS FROM ADJUSTED INCOME.—Sec-
tion 3(b)(5) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)(5)) is amended—
(1) in subparagraph (C)—
(A) by striking ‘‘and’’ before ‘‘(ii)’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘; and (iii) to the extent
documented by the family, the amount paid by
the family for health insurance coverage and
any other nonreimbursed out-of-pocket medical
expenses for any members of the family resid-
ing in the household who, at the time, are not
receiving or approved to receive any assistance
for health care from the Federal Government or
any State government, except that this clause
shall apply only to families residing in public
housing’’;
(2) in subparagraph (E), by inserting before the
semicolon at the end the following: ‘‘, except that in
the case of a family residing in public housing the
amount excluded under this subparagraph shall be
20 percent of the earned income of the family re-
maining after excluding any amounts pursuant to
subparagraph (H)’’;
(3) in subparagraph (F), by striking ‘‘and’’ at
the end;
(4) in subparagraph (G), by striking the period
at the end and inserting ‘‘; and’’; and
(5) by adding at the end the following new sub-
paragraphs:
‘‘(H) in the case of a family residing in public
housing, any earned income of any formerly depend-
ent child who is a member of the family residing in
the family’s dwelling unit during the period begin-
ning on the date of the first redetermination of the
rent for and family composition of the family that
occurs after the child reaches 18 years of age and
ending upon the date of the first such redetermina-
tion occurring after he or she reaches 21 years of
age.’’.