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a mortgagor under a mortgage insured under this
subsection, except that such limitation shall provide
that the origination fee may be fully financed with
the mortgage and shall include any fees paid to cor-
respondent mortgagees approved by the Secretary.
The Secretary shall prohibit the charging of any
broker fees in connection with mortgages insured
under this subsection.’’.
(2) REGULATIONS.—The Secretary shall issue
any final regulations necessary to implement the
amendments made by paragraph (1) of this sub-
section, which shall take effect not later than the ex-
piration of the 180-day period beginning on the date
of the enactment of this Act. The regulations shall
be issued after notice and opportunity 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).
(b) HOUSING COOPERATIVES.—Section 255(b) of the
National Housing Act (12 U.S.C. 1715z–20(b)) is
amended—
(1) in paragraph (2), by striking ‘‘ ‘mortgage’,’’;
and
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(2) by adding at the end the following new
paragraphs:
‘‘(4) MORTGAGE.—The term ‘mortgage’ means
a first mortgage or first lien on real estate, in fee
simple, on all stock allocated to a dwelling in a resi-
dential cooperative housing corporation, or on a
leasehold—
‘‘(A) under a lease for not less than 99
years that is renewable; or
‘‘(B) under a lease having a period of not
less than 10 years to run beyond the maturity
date of the mortgage.
‘‘(5) FIRST MORTGAGE.—The term ‘first mort-
gage’ means such classes of first liens as are com-
monly given to secure advances on, or the unpaid
purchase price of, real estate or all stock allocated
to a dwelling unit in a residential cooperative hous-
ing corporation, under the laws of the State in which
the real estate or dwelling unit is located, together
with the credit instruments, if any, secured there-
by.’’.
(c) WAIVER OF UP-FRONT PREMIUMS FOR MORT-
GAGES USED FOR COSTS OF LONG-TERM CARE INSUR-
ANCE OR HEALTH CARE.—Section 255 of the National
Housing Act (12 U.S.C. 1715z–20) is amended by insert-
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ing after subsection (k) (as added by subsection (a) of this
section) the following new subsection:
‘‘(l) WAIVER OF UP-FRONT PREMIUMS.—
‘‘(1) MORTGAGES TO FUND LONG-TERM CARE
INSURANCE.—In the case of any mortgage insured
under this section under which the total amount (ex-
cept as provided in paragraph (3)) of all future pay-
ments described in subsection (b)(3) will be used
only for costs of a qualified long-term care insurance
contract (as such term is defined in section 7702B
of the Internal Revenue Code of 1986 (26 U.S.C.
7702B)) that covers the mortgagor or members of
the household residing in the property that is subject
to the mortgage, notwithstanding section 203(c)(2),
the Secretary shall not charge or collect the single
premium payment otherwise required under subpara-
graph (A) of such section to be paid at the time of
insurance.
‘‘(2) MORTGAGES
TO
FUND
HEALTH
CARE
COSTS.—In the case of any mortgage insured under
this section under which the future payments de-
scribed in subsection (b)(3) will be used only for
costs for health care services (as such term is de-
fined by the Secretary) for the mortgagor or mem-
bers of the household residing in the property that
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is subject to the mortgage and comply with limita-
tions on such payments, as shall be established by
the Secretary and based upon the purposes of this
subsection and the accumulated equity of the mort-
gagor in the property, notwithstanding section
203(c)(2), the Secretary shall not charge or collect
the single premium payment otherwise required
under subparagraph (A) of such section to be paid
at the time of insurance.
‘‘(3) AUTHORITY
TO
REFINANCE
EXISTING
MORTGAGE AND FINANCE CLOSING COSTS.—A mort-
gage described in paragraph (1) or (2) may provide
financing of amounts that are used to satisfy out-
standing mortgage obligations (in accordance with
such limitations as the Secretary shall prescribe) any
amounts used for initial service charges, appraisal,
inspection, and other fees (as approved by the Sec-
retary) in connection with such mortgage, and the
amount of future payments described in subsection
(b)(3) under the mortgage shall be reduced accord-
ingly.’’.
(d) STUDY
OF
SINGLE
NATIONAL
MORTGAGE
LIMIT.—The Secretary of Housing and Urban Develop-
ment shall conduct an actuarially based study of the ef-
fects of establishing, for mortgages insured under section
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255 of the National Housing Act (12 U.S.C. 1715z–20),
a single maximum mortgage amount limitation in lieu of
applicability of section 203(b)(2) of such Act (12 U.S.C.
1709(b)(2)). The study shall—
(1) examine the effects of establishing such lim-
itation at different dollar amounts; and
(2) examine the effects of such various limita-
tions on—
(A) the risks to the General Insurance
Fund established under section 519 of such
Act;
(B) the mortgage insurance premiums that
would be required to be charged to mortgagors
to ensure actuarial soundness of such Fund;
and
(C) take into consideration the various ap-
proaches to providing credit to borrowers who
refinance home equity conversion mortgages in-
sured under section 255 of such Act.
Not later than 180 days after the date of the enactment
of this Act, the Secretary shall complete the study under
this subsection and submit a report describing the study
and the results of the study to the Committee on Banking
and Financial Services of the House of Representatives
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and to the Committee on Banking, Housing, and Urban
Affairs of the Senate.
SEC. 209. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP
PILOT PROGRAM.
(a) ASSISTANCE
FOR LAW ENFORCEMENT OFFI-
CERS.—The Secretary of Housing and Urban Develop-
ment shall carry out a pilot program in accordance with
this section to assist Federal, State, and local law enforce-
ment officers purchasing homes in locally-designated high-
crime areas.
(b) ELIGIBILITY.—To be eligible for assistance under
this section, a law enforcement officer shall—
(1) have completed not less than 6 months of
service as a law enforcement officer as of the date
that the law enforcement officer applies for such as-
sistance; and
(2) agree, in writing, to use the residence pur-
chased with such assistance as the primary residence
of the law enforcement officer for not less than 3
years after the date of purchase.
(c) MORTGAGE ASSISTANCE.—If a law enforcement
officer purchases a home in locally-designated high-crime
area and finances such purchase through a mortgage in-
sured under title II of the National Housing Act (12
U.S.C. 1707 et seq.), notwithstanding any provision of
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section 203 or any other provision of the National Hous-
ing Act, the following shall apply:
(1) DOWNPAYMENT.—
(A) IN
GENERAL.—There shall be no
downpayment required if the purchase price of
the property is not more than the reasonable
value of the property, as determined by the Sec-
retary.
(B) PURCHASE PRICE EXCEEDS VALUE.—
If the purchase price of the property exceeds
the reasonable value of the property, as deter-
mined by the Secretary, the required downpay-
ment shall be the difference between such rea-
sonable value and the purchase price.
(2) CLOSING
COSTS.—The closing costs and
origination fee for such mortgage may be included in
the loan amount.
(3) INSURANCE
PREMIUM
PAYMENT.—There
shall be one insurance premium payment due on the
mortgage. Such insurance premium payment—
(A) shall be equal to 1 percent of the loan
amount;
(B) shall be due and considered earned by
the Secretary at the time of the loan closing;
and
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(C) may be included in the loan amount
and paid from the loan proceeds.
(d) LOCALLY-DESIGNATED HIGH-CRIME AREA.—
(1) IN GENERAL.—Any unit of local govern-
ment may request that the Secretary designate any
area within the jurisdiction of that unit of local gov-
ernment as a locally-designated high-crime area for
purposes of this section if the proposed area—
(A) has a crime rate that is significantly
higher than the crime rate of the non-des-
ignated area that is within the jurisdiction of
the unit of local government; and
(B) has a population that is not more than
25 percent of the total population of area with-
in the jurisdiction of the unit of local govern-
ment.
(2) DEADLINE
FOR
CONSIDERATION
OF
RE-
QUEST.—Not later than 60 days after receiving a re-
quest under paragraph (1), the Secretary shall ap-
prove or disapprove the request.
(e) LAW ENFORCEMENT OFFICER.—For purposes of
this section, the term ‘‘law enforcement officer’’ has such
meaning as the Secretary shall provide, except that such
term shall include any individual who is employed as an
officer in a correctional institution.
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(f) SUNSET.—The Secretary shall not approve any
application for assistance under this section that is re-
ceived by the Secretary after the expiration of the 3-year
period beginning on the date that the Secretary first
makes available assistance under the pilot program under
this section.
SEC. 210. STUDY OF MANDATORY INSPECTION REQUIRE-
MENT 
UNDER 
SINGLE 
FAMILY 
HOUSING
MORTGAGE INSURANCE PROGRAM.
(a) STUDY.—The Comptroller General of the United
States shall conduct a study regarding the inspection of
properties purchased with loans insured under section 203
of the National Housing Act. The study shall evaluate the
following issues:
(1) The feasibility of requiring inspections of all
properties purchased with loans insured under such
section.
(2) The level of financial losses or savings to
the Mutual Mortgage Insurance Fund that are likely
to occur if inspections are required on properties
purchased with loans insured under such section.
(3) The potential impact on the process of buy-
ing a home if inspections of properties purchased
with loans insured under such section are required,
including the process of buying a home in under-
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served areas where losses to the Mutual Mortgage
Insurance Fund are greatest.
(4) The difference, if any, in the quality of
homes purchased with loans insured under such sec-
tion that are inspected before purchase and such
homes that are not inspected before purchase.
(5) The cost to homebuyers of requiring inspec-
tions before purchase of properties with loans in-
sured under such section.
(6) The extent, if any, to which requiring in-
spections of properties purchased with loans insured
under such section will result in adverse selection of
loans insured under such section.
(7) The extent of homebuyer knowledge regard-
ing property inspections and the extent to which
such knowledge affects the decision of homebuyers
to opt for or against having a property inspection
before purchasing a home.
(8) The impact of the Homebuyer Protection
Plan implemented by the Department of Housing
and Urban Development on the number of apprais-
ers authorized to appraise homes with mortgages in-
sured under section 203 of the National Housing
Act.
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(9) The cost to homebuyers incurred as a result
of the Homebuyer Protection plan, taking into con-
sideration, among other factors, an increase in ap-
praisal fees.
(10) The benefit or adverse impact of the
Homebuyer Protection Plan on minority home-
buyers.
(11) The extent to which the appraisal require-
ments of the Homebuyer Protection Plan conflict
with State laws regarding appraisals and home in-
spections.
(b) REPORT.—Not later than the expiration of the
1-year period beginning on the date of the enactment of
this Act, the Comptroller General shall submit to the Con-
gress a report containing the results of the study and any
recommendations with respect to the issues specified
under this section.
SEC. 211. REPORT ON TITLE I HOME IMPROVEMENT LOAN
PROGRAM.
(a) IN GENERAL.—Not later than 3 months after the
date of the enactment of this Act, the Secretary of Hous-
ing and Urban Development shall submit a report to the
Congress containing recommendations for improvements
to the property improvement loan insurance program
under title I of the National Housing Act, including im-
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provements designed to address problems relating to home
improvement contractors obtaining loans on behalf of
homeowners.
(b) CONSULTATION.—In developing and determining
recommendations for inclusion in the report under this
section and in preparing the report, the Secretary shall
consult with interested persons, organizations, and enti-
ties, including representatives of the lending industry, the
home improvement industry, and consumer organizations.
SEC. 212. SENSE OF THE CONGRESS REGARDING MAKING
PROPERTIES AVAILABLE FOR HOMEOWNER-
SHIP PROGRAMS.
It is the sense of the Congress that the Secretary of
Housing and Urban Development should consult with the
heads of other agencies of the Federal Government that
own or hold properties appropriate for use as housing to
determine the possibility and effectiveness of including
such properties in programs that make housing available
for law enforcement officers, teachers, or fire fighters.
SEC. 213. PROPERTY IMPROVEMENT LOAN LIMIT FOR SIN-
GLE-FAMILY HOMES.
Section 2(b)(1)(A)(i) of the National Housing Act
(12 U.S.C. 1703(b)(1)(A)(i)) is amended by striking
‘‘$25,000’’ and inserting ‘‘$32,500’’.
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TITLE III—SECTION 8
HOMEOWNERSHIP OPTION
SEC. 301. DOWNPAYMENT ASSISTANCE.
(a) AMENDMENTS.—Section 8(y) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(y)) is
amended—
(1) by redesignating paragraph (7) as para-
graph (8); and
(2) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) DOWNPAYMENT ASSISTANCE.—
‘‘(A) AUTHORITY.—A public housing agen-
cy may, in lieu of providing monthly assistance
payments under this subsection on behalf of a
family eligible for such assistance and at the
discretion of the public housing agency, provide
assistance for the family in the form of a single
grant to be used only as a contribution toward
the downpayment required in connection with
the purchase of a dwelling for fiscal year 2000
and each fiscal year thereafter to the extent
provided in advance in appropriations Acts.
‘‘(B) AMOUNT.—The amount of a down-
payment grant on behalf of an assisted family
may not exceed the amount that is equal to the
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sum of the assistance payments that would be
made during the first year of assistance on be-
half of the family, based upon the income of the
family at the time the grant is to be made.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect immediately after the
amendments made by section 555(c) of the Quality Hous-
ing and Work Responsibility Act of 1998 take effect pur-
suant to such section.
SEC. 302. PILOT PROGRAM FOR HOMEOWNERSHIP ASSIST-
ANCE FOR DISABLED FAMILIES.
(a) IN GENERAL.—A public housing agency providing
tenant-based assistance on behalf of an eligible family
under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) may provide assistance for a disabled
family that purchases a dwelling unit (including a dwelling
unit under a lease-purchase agreement) that will be owned
by one or more members of the disabled family and will
be occupied by the disabled family, if the disabled family—
(1) purchases the dwelling unit before the expi-
ration of the 3-year period beginning on the date
that the Secretary first implements the pilot pro-
gram under this section;
(2) demonstrates that the disabled family has
income from employment or other sources (including
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public assistance), as determined in accordance with
requirements of the Secretary, that is not less than
twice the payment standard established by the public
housing agency (or such other amount as may be es-
tablished by the Secretary);
(3) except as provided by the Secretary, dem-
onstrates at the time the disabled family initially re-
ceives tenant-based assistance under this section
that one or more adult members of the disabled fam-
ily have achieved employment for the period as the
Secretary shall require;
(4) participates in a homeownership and hous-
ing counseling program provided by the agency; and
(5) meets any other initial or continuing re-
quirements established by the public housing agency
in accordance with requirements established by the
Secretary.
(b) DETERMINATION OF AMOUNT OF ASSISTANCE.—
(1) IN GENERAL.—
(A) MONTHLY EXPENSES NOT EXCEEDING
PAYMENT
STANDARD.—If the monthly home-
ownership expenses, as determined in accord-
ance with requirements established by the Sec-
retary, do not exceed the payment standard, the
monthly assistance payment shall be the
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amount by which the homeownership expenses
exceed the highest of the following amounts,
rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted
income of the disabled family.
(ii) 10 percent of the monthly income
of the disabled family.
(iii) If the disabled family is receiving
payments for welfare assistance from a
public agency, and a portion of those pay-
ments, adjusted in accordance with the ac-
tual housing costs of the disabled family, is
specifically designated by that agency to
meet the housing costs of the disabled fam-
ily, the portion of those payments that is
so designated.
(B) MONTHLY
EXPENSES
EXCEED
PAY-
MENT STANDARD.—If the monthly homeowner-
ship expenses, as determined in accordance with
requirements established by the Secretary, ex-
ceed the payment standard, the monthly assist-
ance payment shall be the amount by which the
applicable payment standard exceeds the high-
est of the amounts under clauses (i), (ii), and
(iii) of subparagraph (A).
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(2) CALCULATION OF AMOUNT.—
(A) LOW-INCOME
FAMILIES.—A disabled
family that is a low-income family shall be eligi-
ble to receive 100 percent of the amount cal-
culated under paragraph (1).
(B) INCOME BETWEEN 81 AND 89 PERCENT
OF MEDIAN.—A disabled family whose income
is between 81 and 89 percent of the median for
the area shall be eligible to receive 66 percent
of the amount calculated under paragraph (1).
(C) INCOME BETWEEN 90 AND 99 PERCENT
OF MEDIAN.—A disabled family whose income
is between 90 and 99 percent of the median for
the area shall be eligible to receive 33 percent
of the amount calculated under paragraph (1).
(D) INCOME MORE THAN 99 PERCENT OF
MEDIAN.—A disabled family whose income is
more than 99 percent of the median for the
area shall not be eligible to receive assistance
under this section.
(c) INSPECTIONS AND CONTRACT CONDITIONS.—
(1) IN GENERAL.—Each contract for the pur-
chase of a dwelling unit to be assisted under this
section shall—
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(A) provide for pre-purchase inspection of
the dwelling unit by an independent profes-
sional; and
(B) require that any cost of necessary re-
pairs be paid by the seller.
(2) ANNUAL
INSPECTIONS
NOT
REQUIRED.—
The requirement under subsection (o)(8)(A)(ii) of
section 8 of the United States Housing Act of 1937
for annual inspections shall not apply to dwelling
units assisted under this section.
(d) OTHER AUTHORITY OF THE SECRETARY.—The
Secretary may—
(1) limit the term of assistance for a disabled
family assisted under this section;
(2) provide assistance for a disabled family for
the entire term of a mortgage for a dwelling unit if
the disabled family remains eligible for such assist-
ance for such term; and
(3) modify the requirements of this section as
the Secretary determines to be necessary to make
appropriate adaptations for lease-purchase agree-
ments.
(e) ASSISTANCE PAYMENTS SENT TO LENDER.—The
Secretary shall remit assistance payments under this sec-
tion directly to the mortgagee of the dwelling unit pur-
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chased by the disabled family receiving such assistance
payments.
(f) INAPPLICABILITY OF CERTAIN PROVISIONS.—As-
sistance under this section shall not be subject to the re-
quirements of the following provisions:
(1) Subsection (c)(3)(B) of section 8 of the
United States Housing Act of 1937.
(2) Subsection (d)(1)(B)(i) of section 8 of the
United States Housing Act of 1937.
(3) Any other provisions of section 8 of the
United States Housing Act of 1937 governing max-
imum amounts payable to owners and amounts pay-
able by assisted families.
(4) Any other provisions of section 8 of the
United States Housing Act of 1937 concerning con-
tracts between public housing agencies and owners.
(5) Any other provisions of the United States
Housing Act of 1937 that are inconsistent with the
provisions of this section.
(g) REVERSION TO RENTAL STATUS.—
(1) NON-FHA MORTGAGES.—If a disabled fam-
ily receiving assistance under this section defaults
under a mortgage not insured under the National
Housing Act, the disabled family may not continue
to receive rental assistance under section 8 of the
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United States Housing Act of 1937 unless it com-
plies with requirements established by the Secretary.
(2) ALL MORTGAGES.—A disabled family receiv-
ing assistance under this section that defaults under
a mortgage may not receive assistance under this
section for occupancy of another dwelling unit owned
by 1 or more members of the disabled family.
(3) EXCEPTION.—This subsection shall not
apply if the Secretary determines that the disabled
family receiving assistance under this section de-
faulted under a mortgage due to catastrophic med-
ical reasons or due to the impact of a federally de-
clared major disaster or emergency.
(h) REGULATIONS.—Not later than 90 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement this section. Such regulations
may not prohibit any public housing agency providing ten-
ant-based assistance on behalf of an eligible family under
section 8 of the United States Housing Act of 1937 from
participating in the pilot program under this section.
(i) DEFINITION
OF DISABLED FAMILY.—For the
purposes of this section, the term ‘‘disabled family’’ has
the meaning given the term ‘‘person with disabilities’’ in
section 811(k)(2) of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 8013(k)(2)).
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SEC. 303. FUNDING FOR PILOT PROGRAMS.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated $2,000,000 for fiscal year
2001 for assistance in connection with the existing home-
ownership pilot programs carried out under the dem-
onstration program authorized under to section 555(b) of
the Quality Housing and Work Responsibility Act of 1998
(Public Law 105–276; 112 Stat. 2613).
(b) USE.—Subject to subsection (c), amounts made
available pursuant to this section shall be used only
through such homeownership pilot programs to provide,
on behalf of families participating in such programs,
amounts for downpayments in connection with dwellings
purchased by such families using assistance made avail-
able under section 8(y) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(y)). No such downpayment
grant may exceed 20 percent of the appraised value of the
dwelling purchased with assistance under such section
8(y).
(c) MATCHING REQUIREMENT.—The amount of as-
sistance made available under this section for any existing
homeownership pilot program may not exceed twice the
amount donated from sources other than this section for
use under the program for assistance described in sub-
section (b). Amounts donated from other sources may in-
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clude amounts from State housing finance agencies and
Neighborhood Housing Services of America.
TITLE IV—COMMUNITY
DEVELOPMENT BLOCK GRANTS
SEC. 401. REAUTHORIZATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—The last
sentence of section 103 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5303) is amended
to read as follows: ‘‘For purposes of assistance under sec-
tion 106, there is authorized to be appropriated
$4,900,000,000 for fiscal year 2001 and such sums as
may be necessary for each of fiscal years 2002, 2003,
2004, and 2005.’’.
(b) ENTITLEMENT GRANTS.—
(1) IN GENERAL.—Section 102(a)(5)(B) of the
Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)(5)(B)) is amended—
(A) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and
(B) by inserting before the period at the
end the following: ‘‘, or (II) has a population in
its unincorporated areas of not less than
450,000, except that a town or township which
is designated as a city pursuant to this sub-
clause shall have only its unincorporated areas
considered as a city for purposes of this title’’.
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(2) TREATMENT
AS
SEPARATE
FROM
URBAN
COUNTIES.—Section 102(d) of the Housing and
Community Development Act of 1974 (42 U.S.C.
5302(d)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) Notwithstanding paragraph (1), a town or town-
ship that is classified as a city by reason of subclause (II)
of section 102(a)(5)(B)(iii) shall be treated, for purposes
of eligibility for a grant under section 106(b)(1) from
amounts made available for a fiscal year beginning after
the date of the enactment of the American Homeowner-
ship and Economic Opportunity Act of 2000, as an entity
separate from the urban county in which it is located.’’.
(3) ELIGIBILITY
OF
CERTAIN
URBAN
COUN-
TIES.—Section 102(a)(6) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C.
5302(a)(6)) is amended—
(1) in subparagraph (D)—
(A) in clause (v), by striking ‘‘or’’ at the
end;
(B) in clause (vi), by striking the period at
the end and inserting ‘‘; or’’; and
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(C) by adding at the end the following new
clause:
‘‘(vii)(I) has consolidated its government
with one or more municipal governments, such
that within the county boundaries there are no
unincorporated areas, (II) has a population of
not less than 650,000, over which the consoli-
dated government has the authority to under-
take essential community development and
housing assistance activities, (III) for more
than 10 years, has been classified as an entitle-
ment area for purposes of allocating and dis-
tributing funds under section 106, and (IV) as
of the date of the enactment of this clause, has
over 90 percent of the county’s population with-
in the jurisdiction of the consolidated govern-
ment.’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(F) Notwithstanding any other provision of
this paragraph, any county that was classified as an
urban county pursuant to subparagraph (A) for fis-
cal year 1999, includes 10 cities each having a popu-
lation of less than 50,000, and has a population in
its unincorporated areas of 190,000 or more but less
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than 200,000, shall thereafter remain classified as
an urban county.’’.
SEC. 402. PROHIBITION OF SET-ASIDES.
Section 103 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5303), as amended by sec-
tion 401 of this Act, is further amended—
(1) by inserting after ‘‘SEC. 103.’’ the fol-
lowing: ‘‘(a) IN GENERAL.—’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro-
vided in paragraphs (1) and (2) of section 106(a) and sec-
tion 107, amounts appropriated pursuant to subsection (a)
of this section or otherwise to carry out this title (other
than section 108) shall be used only for formula-based
grants allocated pursuant to section 106 and may not be
otherwise used unless the provision of law providing for
such other use specifically refers to this subsection and
specifically states that such provision modifies or super-
sedes the provisions of this subsection.’’.
SEC. 403. PUBLIC SERVICES CAP.
Section 105(a)(8) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is
amended by striking ‘‘fiscal years 1993’’ and all that fol-
lows through ‘‘unit of general local government’’ and in-
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serting the following: ‘‘fiscal years 1993 through 2006 to
the City of Los Angeles, the County of Los Angeles, or
any other unit of general local government located in the
County of Los Angeles, such city, such county, or each
such unit of general local government, respectively,’’.
SEC. 404. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) ELIGIBLE ACTIVITIES.—Section 105(a) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)) is amended—
(1) in paragraph (22)(C), by striking ‘‘and’’ at
the end;
(2) in paragraph (23), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (23) the fol-
lowing new paragraph:
‘‘(24) provision of direct assistance to facilitate
and expand homeownership among uniformed em-
ployees (including policemen, firemen, and sanitation
and other maintenance workers) of, and teachers
who are employees of, the metropolitan city or urban
county (or an agency or school district serving such
city or county) receiving grant amounts under this
title pursuant to section 106(b) or the unit of gen-
eral local government (or an agency or school dis-
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trict serving such unit) receiving such grant
amounts pursuant to section 106(d), except that—
‘‘(A) such assistance may only be provided
on behalf of such employees who are first-time
homebuyers under the meaning given such term
in section 104(14) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
12704(14)), except that, for purposes of this
paragraph, such section shall be applied by sub-
stituting ‘section 105(a)(24) of the Housing
and Community Development Act of 1974’ for
‘title II’;
‘‘(B) 
notwithstanding 
section
102(a)(20)(B) or any other provision of this
title, such assistance may be provided on behalf
of such employees whose family incomes do not
exceed—
‘‘(i) 115 percent of the median income
of the area involved, as determined by the
Secretary with adjustments for smaller and
larger families; or
‘‘(ii) with respect only to areas that
the Secretary determines have high hous-
ing costs, taking into consideration median
house prices and median family incomes
HR 1776 RFS
for the area, 150 percent of the median in-
come of the area involved, as determined
by the Secretary with adjustments for
smaller and larger families;
‘‘(C) such assistance shall be used only for
acquiring principal residences for such employ-
ees, in a manner that involves obligating
amounts with respect to any particular mort-
gage over a period of 1 year or less, by—
‘‘(i) 
providing 
amounts 
for
downpayments on mortgages;
‘‘(ii) paying reasonable closing costs
normally associated with the purchase of a
residence;
‘‘(iii) obtaining pre- or post-purchase
counseling relating to the financial and
other obligations of homeownership; or
‘‘(iv) subsidizing mortgage interest
rates; and
‘‘(D) any residence purchased using assist-
ance provided under this paragraph shall be
subject to restrictions on resale that are—
‘‘(i) established by the metropolitan
city, urban county, or unit of general local
government providing such assistance; and
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‘‘(ii) determined by the Secretary to
be appropriate to comply with subpara-
graphs (A) and (B) of section 215(b)(3) of
the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12745(b)(3)), ex-
cept that, for purposes of this paragraph,
such subparagraphs shall be applied by
substituting ‘section 105(a)(24) of the
Housing and Community Development Act
of 1974’ for ‘this title’;’’.
(b) PRIMARY OBJECTIVES.—Section 105(c) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(c)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) HOMEOWNERSHIP ASSISTANCE FOR MUNICIPAL
EMPLOYEES.—Notwithstanding any other provision of this
title, any assisted activity described in subsection (a)(24)
of this section shall be considered, for purposes of this
title, to benefit persons of low and moderate income and
to be directed toward the objective under section
101(c)(3).’’.
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SEC. 
405. 
TECHNICAL 
AMENDMENT 
RELATING 
TO
BROWNFIELDS.
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)), as amended
by section 404 of this Act, is further amended—
(1) in paragraph (25), by striking the period
and inserting ‘‘; and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(26) environmental cleanup and economic de-
velopment activities related to Brownfields projects
in conjunction with the appropriate environmental
regulatory agencies.’’.
SEC. 406. INCOME ELIGIBILITY.
(a) IN GENERAL.—In addition to the exceptions
granted pursuant to section 590 of the Quality Housing
and Work Responsibility Act of 1998 (42 U.S.C. 5301
note), the Secretary of Housing and Urban Development
shall, for not less than 10 other jurisdictions that are met-
ropolitan cities or urban counties for purposes of title I
of the Housing and Community Development Act of 1974,
grant exceptions not later than 90 days after the date of
the enactment of this Act for such jurisdictions that pro-
vide that—
(1) for purposes of the HOME investment part-
nerships program under title II of the Cranston-
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Gonzalez National Affordable Housing Act, the limi-
tation based on percentage of median income that is
applicable under section 104(10), 214(1)(A), or
215(a)(1)(A) for any area of the jurisdiction shall be
the numerical percentage that is specified in such
section; and
(2) for purposes of the community development
block grant program under title I of the Housing
and Community Development Act of 1974, the limi-
tation based on percentage of median income that is
applicable pursuant to section 102(a)(20) for any
area within the State or unit of general local govern-
ment shall be the numerical percentage that is speci-
fied in subparagraph (A) of such section.
(b) SELECTION.—In selecting the jurisdictions for
which to grant such exceptions, the Secretary shall con-
sider the relative median income of such jurisdictions and
shall give preference to jurisdictions with the highest hous-
ing costs.
SEC. 407. HOUSING OPPORTUNITIES FOR PERSONS WITH
AIDS.
Section 863 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12912) is amended to
read as follows:
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‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subtitle $275,000,000 for fiscal year 2001 and such
sums as may be necessary for each of fiscal years 2002,
2003, 2004, and 2005.’’.
SEC. 408. PROHIBITION ON USE OF AMOUNTS TO ACQUIRE
CHURCH PROPERTY.
Section 105 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5305) is amended by adding
at the end the following new subsection:
‘‘(i) PROHIBITION ON USE OF ASSISTANCE TO AC-
QUIRE CHURCH PROPERTY.—Notwithstanding any other
provision of this section, no amount from a grant under
section 106 may be used to carry out or assist any activity
if such activity, or the project for which such activity is
to be conducted, involves acquisition of real property
owned by a church that is exempt from tax under section
501(a) of the Internal Revenue Code of 1986 (26 U.S.C.
501(a)), unless the governing body of the church has pre-
viously consented to such acquisition.’’.
SEC. 409. CDBG SPECIAL PURPOSE GRANTS.
Section 107(a)(1) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5307(a)(1)) is
amended—
(1) in the matter preceding subparagraph (A)—
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(A) by striking ‘‘$60,000,000’’ and insert-
ing ‘‘$95,000,000’’; and
(B) by striking ‘‘subsection (b)’’ and in-
serting ‘‘this section’’; and
(2) by striking subparagraph (G) and inserting
the following new subparagraph:
‘‘(G) $35,000,000 shall be available in fis-
cal year 2001 for a grant to the City of
Youngstown, Ohio, for the site acquisition,
planning, architectural design, and construction
of a convocation and community center in such
city;’’.
TITLE V—HOME INVESTMENT
PARTNERSHIPS PROGRAM
SEC. 501. REAUTHORIZATION.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
205 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12724) is amended to read as follows:
‘‘SEC. 205. AUTHORIZATION.
‘‘(a) IN GENERAL.—There is authorized to be appro-
priated to carry out this title $1,650,000,000 for fiscal
year 2001 and such sums as may be necessary for each
of fiscal years 2002, 2003, 2004, and 2005, of which—
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‘‘(1) not more than $25,000,000 in each such
fiscal year shall be for community housing partner-
ship activities authorized under section 233; and
‘‘(2) not more than $15,000,000 in each such
fiscal year shall be for activities in support of State
and local housing strategies authorized under sub-
title C, of which, in each of fiscal years 2001 and
2002, $3,000,000 shall be for funding grants under
section 246.
‘‘(b) PROHIBITION OF SET-ASIDES.—Except as pro-
vided in subsection (a) of this section and section
217(a)(3), amounts appropriated pursuant to subsection
(a) of this section or otherwise to carry out this title shall
be used only for formula-based grants allocated pursuant
to section 217 and may not be otherwise used unless the
provision of law providing for such other use specifically
refers to this subsection and specifically states that such
provision modifies or supersedes the provisions of this sub-
section.’’.
(b) ALLOCATIONS OF AMOUNTS.—Section 104(19) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12704(19)) is amended by adding at the end
the following: ‘‘The term ‘city’ shall have the meaning
given such term in section 102(a)(5)(B) of such Act. A
town or township that is classified as a city by reason of
HR 1776 RFS
subclause (II) of section 102(a)(5)(A)(B)(iii) of such Act
shall be treated, notwithstanding section 102(d)(1) of such
Act, as an entity separate from the urban county in which
it is located for purposes of allocation of amounts under
section 217 of this Act to units of general local govern-
ment from amounts made available for any fiscal year be-
ginning after the date of the enactment of the American
Homeownership and Economic Opportunity Act of
2000.’’.
(c) PILOT PROGRAM FOR DEVELOPING REGIONAL
HOUSING STRATEGIES.—Subtitle C of title II of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12781 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 
246. 
PILOT 
PROGRAM 
FOR 
DEVELOPING 
COM-
PREHENSIVE REGIONAL HOUSING AFFORD-
ABILITY STRATEGIES.
‘‘(a) AUTHORITY.—The Secretary may, using any
amounts made available for grants under this section,
make not more than three grants for each of fiscal years
2001 and 2002 to consortia of units of general local gov-
ernment described in subsection (b) for costs of developing
and implementing comprehensive housing affordability
strategies on a regional basis.
102
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validity of any such guarantee so made shall be incontest-
able in the hands of a holder of the guaranteed obligations.
‘‘(h) TAX STATUS.—With respect to any obligation
guaranteed pursuant to this section, the guarantee and
the obligation shall be designed in a manner such that the
interest paid on such obligation shall be included in gross
income for purposes of the Internal Revenue Code of
1986.
‘‘(i) MONITORING.—The Secretary shall monitor the
use of guarantees under this section by eligible partici-
pating jurisdictions. If the Secretary finds that 50 percent
of the aggregate guarantee authority for any fiscal year
has been committed, the Secretary may impose limitations
on the amount of guarantees any one participating juris-
diction may receive during that fiscal year.
‘‘(j) GUARANTEE OF TRUST CERTIFICATES.—
‘‘(1) AUTHORITY.—The Secretary may, upon
such terms and conditions as the Secretary deems
appropriate, guarantee the timely payment of the
principal of and interest on such trust certificates or
other obligations as may—
‘‘(A) be offered by the Secretary or by any
other offeror approved for purposes of this sub-
section by the Secretary; and