I
103D CONGRESS
2D SESSION
H. R. 7
To provide necessary emergency community development and housing assist-
ance to stimulate economic growth in the United States, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. GONZALEZ (for himself, Mr. SCHUMER, Mr. FRANK of Massachusetts, Mr.
KENNEDY, Mr. FLAKE, Mr. MFUME, Ms. WATERS, Ms. MALONEY, Mr.
RUSH, Ms. FURSE, Mr. HINCHEY, and Mr. SANDERS) introduced the fol-
lowing bill; which was referred to the Committee on Banking, Finance
and Urban Affairs
MARCH 10, 1994
Additional sponsors: Mr. GUTIERREZ, Ms. NORTON, Mr. DE LUGO, Mr. LA-
FALCE, Mr. OBERSTAR, Mr. RANGEL, Mr. BLACKWELL, Mr. HILLIARD,
Ms. ROYBAL-ALLARD, Mr. WATT, Ms. MCKINNEY, Ms. VELA´ZQUEZ, and
Mr. ENGEL
Deleted sponsor: Mrs. MALONEY (added January 5, 1993; deleted November
22, 1993)
A BILL
To provide necessary emergency community development and
housing assistance to stimulate economic growth in the
United States, 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
‘‘Emergency Community Development Act of 1993’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.
TITLE I—TEMPORARY ASSISTANCE FOR COMMUNITY
DEVELOPMENT ACTIVITIES
Sec. 101. Purpose.
Sec. 102. Definitions and designation of public agencies.
Sec. 103. Authorization of appropriations.
Sec. 104. Statement of projected activities and compliance.
Sec. 105. Eligible activities.
Sec. 106. Allocation and distribution of funds.
Sec. 107. Nondiscrimination.
Sec. 108. Labor standards.
Sec. 109. Remedies for noncompliance.
Sec. 110. Consultation.
Sec. 111. Interstate agreements.
Sec. 112. Regulations.
TITLE II—HOMEOWNERSHIP ASSISTANCE
Sec. 201. National Homeownership Trust demonstration.
TITLE III—RURAL HOUSING ASSISTANCE
Sec. 301. Section 502 rural housing loans.
Sec. 302. Section 504 housing improvement loans and grants.
Sec. 303. Section 515 rental housing loans.
Sec. 304. Housing for rural homeless and migrant farmworkers.
Sec. 305. Rental assistance payment contracts.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the United States is currently in a period
of economic distress;
(2) the recession has resulted in a significant
loss of jobs and economic hardship in the United
States;
TITLE 
I—TEMPORARY 
ASSIST-
ANCE FOR COMMUNITY DE-
VELOPMENT ACTIVITIES
SEC. 101. PURPOSE.
The purpose of this title is to provide temporary as-
sistance to State and local governments to allow such enti-
ties to address vital unmet needs and to promote the cre-
ation of jobs and economic development.
SEC. 102. DEFINITIONS AND DESIGNATION OF PUBLIC
AGENCIES.
(a) REFERENCE TO HOUSING AND COMMUNITY DE-
VELOPMENT ACT OF 1974.—Except as provided in sub-
section (b), for purposes of this title the terms defined in
section 102(a) of the Housing and Community Develop-
ment Act of 1974 shall have the meaning given such terms
under such section 102.
(b) EXCEPTIONS.—
(1) METROPOLITAN
CITY.—For purposes of
this title, the term ‘‘metropolitan city’’ means any
city or unit of general local government that is clas-
sified as a metropolitan city for purposes of title I
of the Housing and Community Development Act of
1974 for fiscal year 1993.
(2) URBAN
COUNTY.—For purposes of this
title, the term ‘‘urban county’’ means any county
that is classified as an urban county for purposes of
title I of the Housing and Community Development
Act of 1974 for fiscal year 1993, and includes any
units of general local government whose populations
are included in the urban county for such purposes
for such fiscal year.
(3) AGE OF HOUSING.—For purposes of this
title, the term ‘‘age of housing’’ means the number
of existing housing units constructed in 1950 or ear-
lier based on data compiled by the United States
Bureau of the Census and referable to the same
point or period in time.
(c) DESIGNATION OF PUBLIC AGENCIES.—One or
more public agencies, including existing local public agen-
cies, may be designated by the chief executive officer of
a State or unit of general local government to undertake
activities assisted under this title.
(d) DATA.—Where appropriate, the definitions estab-
lished and referred to under this section shall be based
on the data used pursuant to section 102(b) of the Hous-
ing and Community Development Act of 1974 with respect
to fiscal year 1993. The Secretary of Housing and Urban
Development may by regulation change or otherwise mod-
ify the meaning of the terms defined or referred to under
this section in order to reflect any technical change or
modification thereof made after the date referred to in the
first sentence of such section 102(b) (with respect to fiscal
year 1993) by the United States Bureau of the Census
or the Office of Management and Budget.
SEC. 103. AUTHORIZATION OF APPROPRIATIONS.
The Secretary of Housing and Urban Development
is authorized to make grants to States, units of general
local government, and Indian tribes to carry out activities
in accordance with the provisions of this title. For pur-
poses of assistance under section 106, there is authorized
to be appropriated $25,000,000,000 for fiscal year 1993.
Notwithstanding section 106, of any amounts appro-
priated under this section for fiscal year 1993, the Sec-
retary shall, to the extent approved in appropriations Acts,
make available $15,000,000 for grants in Guam, the Vir-
gin Islands, American Samoa, the Commonwealth of the
Northern Mariana Islands, and the Trust Territory of the
Pacific Islands.
SEC. 104. STATEMENT OF PROJECTED ACTIVITIES AND
COMPLIANCE.
(a) STATEMENT OF PROJECTED USES OF GRANTS.—
Prior to the receipt of a grant under section 106(b) by
any metropolitan city or urban county, under section
106(d) by any State, or under section 106(d)(2)(B) by any
unit of general local government, the grantee shall submit
to the Secretary a statement of community development
objectives and projected use of funds, which shall include
the certifications required under subsection (b) of this sec-
tion. In the case of metropolitan cities and urban counties
receiving grants pursuant to section 106(b) and in the
case of units of general local government receiving grants
pursuant to section 106(d)(2)(B), the statement of pro-
jected use of funds shall consist of proposed community
development activities. In the case of States receiving
grants pursuant to section 106(d), the statement of pro-
jected use of funds shall consist of the method by which
the States will distribute funds to units of general local
government. Each such statement shall contain a certifi-
cation indicating that the statement has been reviewed and
approved by the chief executive officer or other officer of
the grantee qualified to make such certification under reg-
ulations issued by the Secretary.
(b) REQUIRED CERTIFICATIONS.—Any grant under
section 106 shall be made only if the grantee certifies
that—
(1) the grant will be conducted and adminis-
tered in conformity with the Civil Rights Act of
1964 and the Civil Rights Act of 1968 and the
grantee will affirmatively further fair housing;
(2) the projected use of funds has been devel-
oped in a manner that gives maximum feasible prior-
ity to activities which are designed to meet commu-
nity development needs that have been delayed be-
cause of the lack of fiscal resources of the grantee
or which are designed to address conditions that
pose a serious and immediate threat to the health or
welfare of the community;
(3) any projected use of funds for public serv-
ices will benefit primarily low- and moderate-income
families;
(4) the grantee will not attempt to recover any
capital costs of public improvements assisted in
whole or part under section 106 by assessing any
amount against properties owned and occupied by
persons of low- and moderate-income, including any
fee charged or assessment made as a condition of
obtaining access to such public improvements, un-
less—
(A) funds received under section 106 are
used to pay the proportion of such fee or as-
sessment that relates to the capital costs of
such public improvements that are financed
from revenue sources other than under this
title; or
(B) for purposes of assessing any amount
against properties owned and occupied by per-
sons of moderate income, the grantee certifies
to the Secretary that it lacks sufficient funds
received under section 106 to comply with the
requirements of subparagraph (A); and
(5) the grantee will comply with the other pro-
visions of this title and with other applicable laws.
(c) ANTIDISPLACEMENT AND RELOCATION PLAN.—
(1) REQUIREMENT.—A grant under section 106
may be made only if the grantee certifies that it is
complying with a residential antidisplacement and
relocation assistance plan under this section. A
grantee receiving a grant under section 106(a) or
(b) shall so certify to the Secretary. A unit of gen-
eral local government receiving amounts from a
State under section 106(d) shall so certify to the
State, and a unit of general local government receiv-
ing amounts from the Secretary under section
106(d) shall so certify to the Secretary.
(2) CONTENTS.—The residential antidisplace-
ment and relocation assistance plan shall, in connec-
tion with a development project assisted under sec-
tion 106—
(A) provide that, in the event of such dis-
placement—
(i) governmental agencies or private
developers shall provide, within the same
community, comparable replacement dwell-
ings for the same number of occupants as
could have been housed in the occupied
and vacant occupiable low- and moderate-
income dwelling units demolished or con-
verted to a use other than for housing for
low- and moderate-income persons, and
provide that such replacement housing may
include existing housing assisted with
project-based assistance provided under
section 8 of the United States Housing Act
of 1937;
(ii) 
such 
comparable 
replacement
dwellings shall be designed to remain af-
fordable to persons of low- and moderate-
income for a period of 10 years beginning
upon initial occupancy;
(iii) relocation benefits shall be pro-
vided for all low- or moderate-income per-
sons who occupied housing demolished or
converted to a use other than for low- or
moderate-income housing, including reim-
bursement for actual and reasonable mov-
ing expenses, security deposits, credit
checks, and other moving-related expenses,
including any interim living costs; and in
the case of displaced persons of low- and
moderate-income, provide either—
(I) compensation sufficient to en-
sure that, for a 5-year period, the dis-
placed families shall not bear, after
relocation, a ratio of shelter costs to
income that exceeds 30 percent; or
(II) if elected by a family, a
lump-sum payment equal to the cap-
italized value of the benefits available
under subclause (I) to permit the
household to secure participation in a
housing cooperative or mutual housing
association; and
(iv) persons displaced shall be relo-
cated into comparable replacement housing
that is—
(I) decent, safe, and sanitary;
(II) adequate in size to accommo-
date the occupants;
(III) functionally equivalent; and
(IV) in an area not subject to un-
reasonably adverse environmental con-
ditions;
(B) provide that persons displaced shall
have the right to elect, as an alternative to the
benefits under this subsection, to receive bene-
fits under the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of
1970 if such persons determine that it is in
their best interest to do so; and
(C) provide that where a claim for assist-
ance under subparagraph (A)(iv) is denied by a
grantee, the claimant may appeal to the Sec-
retary in the case of a grant under section 106
or to the appropriate State official in the case
of a grant under section 106(d), and that the
decision of the Secretary or the State official
shall be final unless a court determines the de-
cision was arbitrary and capricious.
(3) EXCEPTION.—Paragraphs (2)(A)(i) and
(2)(A)(ii) shall not apply in any case in which the
Secretary finds, on the basis of objective data, that
there is available in the area an adequate supply of
habitable affordable housing for low- and moderate-
income persons. A determination under this para-
graph shall be final and nonreviewable.
(d) APPROVAL AND COMPLIANCE.—
(1) APPROVAL.—The Secretary shall review
statements of projected uses of funds submitted
under this section upon receipt. The Secretary shall
approve such statements unless the Secretary deter-
mines that (A) the statement is inconsistent with the
purpose of this title, or (B) the information or cer-
tifications required under this section have not been
provided in a substantially complete manner.
(2) 
COMPLIANCE
REPORTS.—Each 
grantee
under this title shall submit to the Secretary a re-
port, as the Secretary shall require, which shall be
sufficient to describe the actual use of amounts pro-
vided to the grantee under this title. The Secretary
shall require each report under this paragraph to
contain the written approval of the chief executive
officer or other officer of the grantee qualified to
make such approval under regulations issued by the
Secretary. The reports under this paragraph shall be
submitted to the Secretary before January 1, 1995.
(e) GAO AUDITS.—To the extent that they relate to
funds provided under this title, the financial transactions
of recipients of such funds may be audited by the General
Accounting Office under any rules and regulations pre-
scribed by the Comptroller General of the United States.
The representatives of the General Accounting Office shall
have access to all books, accounts, records, reports, files,
and other papers, things, or property belonging to or in
use by such recipients pertaining to such financial trans-
actions and necessary to facilitate the audit.
(f) ENVIRONMENTAL PROTECTION.—
(1) RELEASE OF FUNDS.—In order to ensure
that the policies of the National Environmental Pol-
icy Act of 1969 and other provisions of law that fur-
ther the purposes of such Act (as specified in regula-
tions issued by the Secretary) are most effectively
implemented in connection with the expenditure of
funds under this title, and to assure to the public
undiminished protection of the environment, the Sec-
retary, in lieu of the environmental protection proce-
dures otherwise applicable, may under regulations
provide for the release of funds for particular
projects to recipients of assistance under this title
who assume all of the responsibilities for environ-
mental review, decision making, and action pursuant
to such Act, and such other provisions of law as the
regulations of the Secretary specify, that would
apply to the Secretary were the Secretary to under-
take such projects as Federal projects. The Sec-
retary shall issue regulations to carry out this sub-
section only after consultation with the Council on
Environmental Quality.
(2) REQUEST
FOR
RELEASE.—The Secretary
shall approve the release of funds for projects sub-
ject to the procedures authorized by this subsection
only if, at least 15 days prior to such approval and
prior to any commitment of funds to such projects
other than for environmental studies, the recipient of
assistance under this title has submitted to the Sec-
retary a request for such release accompanied by a
certification which meets the requirements of para-
graph (3). The Secretary’s approval of any such cer-
tification shall be deemed to satisfy the responsibil-
ities of the Secretary under the National Environ-
mental Policy Act of 1969 and such other provisions
of law as the regulations of the Secretary specify in-
sofar as those responsibilities relate to the release of
funds for projects to be carried out pursuant thereto
which are covered by such certification.
(3) CERTIFICATION.—A certification under the
procedures authorized by this subsection shall—
(A) be made in a form acceptable to the
Secretary;
satisfy the Secretary’s responsibilities referred to in
the second sentence of such paragraph.
(g) RETENTION OF PROGRAM INCOME.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, any unit of general local govern-
ment may retain any program income that is real-
ized from any grant made by the Secretary, or any
amount distributed by a State, under section 106 if
(1) such income was realized after the initial dis-
bursement of the funds received by the unit of gen-
eral local government under such section, and (2)
the unit of general local government has agreed that
it will utilize the program income for eligible com-
munity development activities in accordance with the
provisions of this title, except that the Secretary
may exclude from consideration as program income
any amounts determined under regulations issued
pursuant to section 104(j) of the Housing and Com-
munity Development Act of 1974 to be so small that
compliance with this subsection creates an unreason-
able administrative burden on the unit of general
local government.
(2) STATE
DISTRIBUTION.—A State may re-
quire as a condition of any amount distributed by
such State under section 106(d) that a unit of gen-
eral local government shall pay to the State any
such income to be used by the State to fund addi-
tional eligible community development activities, ex-
cept that the State shall waive such condition to the
extent such income is applied to continue the activity
from which such income was derived.
(h) BENEFITS UPON DISPLACEMENT.—Each grantee
under this title shall provide for reasonable benefits to any
person involuntarily and permanently displaced as a result
of the use of assistance received under this title to acquire
or substantially rehabilitate property.
(i) PROTECTION
OF INDIVIDUALS ENGAGING
IN
NONVIOLENT
CIVIL
RIGHTS
DEMONSTRATIONS.—No
funds authorized to be appropriated under section 103 of
this Act may be obligated or expended to any unit of gen-
eral local government that—
(1) fails to adopt and enforce a policy prohibit-
ing the use of excessive force by law enforcement
agencies within its jurisdiction against any individ-
uals engaged in nonviolent civil rights demonstra-
tions; or
(2) fails to adopt and enforce a policy of enforc-
ing applicable State and local laws against physically
barring entrance to or exit from a facility or location
which is the subject of such nonviolent civil rights
demonstrations within its jurisdiction.
SEC. 105. ELIGIBLE ACTIVITIES.
(a) IN GENERAL.—Activities assisted under this title
may include only the following activities:
(1) ACQUISITION OF REAL PROPERTY.—The ac-
quisition of real property (including air rights, water
rights, and other interests therein) which is—
(A) blighted, deteriorated, undeveloped, or
inappropriately developed from the standpoint
of sound community development and growth;
(B) appropriate for rehabilitation or con-
servation activities;
(C) appropriate for the preservation or res-
toration of historic sites, the beautification of
urban land, the conservation of open spaces,
natural resources, and scenic areas, the provi-
sion of recreational opportunities, or the guid-
ance of urban development;
(D) to be used for the provision of public
works, facilities, and improvements eligible for
assistance under this title;
(E) to be used as a facility for coordinat-
ing and providing activities and services for
high risk youth (as such term is defined in sec-
tion 509A of the Public Health Service Act); or
(F) to be used for other public purposes.
(2) CONSTRUCTION OF PUBLIC WORKS AND FA-
CILITIES.—The acquisition, construction, rehabilita-
tion, or installation of public works or public facili-
ties, including buildings for the general conduct of
government and facilities for coordinating and pro-
viding activities and services for high risk youth (as
such term is defined in section 509A of the Public
Health Service Act).
(3) CLEARANCE
AND
REHABILITATION
OF
BUILDINGS.—The clearance, removal, and rehabilita-
tion of buildings and improvements, including in-
terim assistance, assistance for facilities for coordi-
nating and providing activities and services for high
risk youth (as such term is defined in section 509A
of the Public Health Service Act), and assistance to
privately owned buildings and improvements.
(4) PROVISION
OF
PUBLIC
SERVICES
AND
HOUSING.—
(A) PUBLIC SERVICES.—The provision of
public services concerned with job training and
retraining, health care and education, crime
prevention, drug abuse treatment and rehabili-
tation, child care, education, and recreation,
which may include the provision of public health
and public safety vehicles.
(B) HOUSING
ACTIVITIES.—The acquisi-
tion and rehabilitation of housing for low- and
moderate-income families, except that any
grantee that uses amounts received under this
title for housing activities under this subpara-
graph shall make not less than 15 percent of
the amount used for such housing activities
available only for nonprofit organizations (as
such term is defined in section 104 of the Cran-
ston-Gonzalez National Affordable Housing
Act) for such activities;
(C) LIMITATION.—Not more than 10 per-
cent of the amount of any assistance provided
under this title (including program income) to
any unit of general local government or Indian
tribe (or in the case of nonentitlement commu-
nities not more than 10 percent statewide) may
be used for activities under this paragraph.
(5) RELOCATION ASSISTANCE.—Relocation pay-
ments and assistance for individuals, families, busi-
nesses, organizations, and farm operations that are
displaced as a result of activities assisted under this
title.
(6) ACCESSIBILITY PROJECTS.—Special projects
directed to the removal of material and architectural
barriers which restrict the mobility and accessibility
of elderly and handicapped persons.
(7) PROVISION OF SERVICES FOR HIGH RISK
YOUTH.—The provision of recreational, educational,
job training, and other services for high risk youth
(as such term is defined in section 509A of the Pub-
lic Health Service Act).
(8) 
PAYMENT
OF
ADMINISTRATIVE
EX-
PENSES.—Payment of reasonable administrative
costs associated with activities assisted under this
title and any expenses of developing the statement
required under section 104(a) and submitting com-
pliance reports required under section 104(d)(2).
(b) REIMBURSABLE ADMINISTRATIVE EXPENSES.—
Upon the request of the recipient of assistance under this
title, the Secretary may agree to perform administrative
services on a reimbursable basis on behalf of the recipient
in connection with loans or grants for the rehabilitation
of properties pursuant to subsection (a)(3).
(c) PAYMENT OF AMOUNTS.—Subject to the request
of a grantee under this title, the Secretary may provide