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loans, shall be as defined in section 502 of the Congres-
sional Budget Act of 1974, as amended: Provided further,
That these funds are available to subsidize total loan prin-
cipal, any part of which is to be guaranteed, not to exceed
$36,900,000.
HOMELESS ASSISTANCE
HOMELESS ASSISTANCE GRANTS
For the emergency shelter grants program (as au-
thorized under subtitle B of title IV of the Stewart B.
McKinney Homeless Assistance Act (Public Law 100–77),
as amended); the supportive housing program (as author-
ized under subtitle C of title IV of such Act); the section
8 moderate rehabilitation single room occupancy program
(as authorized under the United States Housing Act of
1937, as amended) to assist homeless individuals pursuant
to section 441 of the Stewart B. McKinney Homeless As-
sistance Act; and the shelter plus care program (as au-
thorized under subtitle F of title IV of such Act),
$823,000,000, to remain available until expended.
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT GRANTS
(INCLUDING TRANSFER OF FUNDS)
For grants to States and units of general local gov-
ernment and for related expenses, not otherwise provided
for, necessary for carrying out a community development
grants program as authorized by title I of the Housing
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and Community Development Act of 1974, as amended
(42 U.S.C. 5301), $4,600,000,000, to remain available
until September 30, 1998: Provided, That $50,000,000
shall be available for grants to Indian tribes pursuant to
section 106(a)(1) of the Housing and Community Devel-
opment Act of 1974, as amended (42 U.S.C. 5301),
$2,000,000 shall be available as a grant to the Housing
Assistance Council, $1,000,000 shall be available as a
grant to the National American Indian Housing Council,
and $27,000,000 shall be available for ‘‘special purpose
grants’’ pursuant to section 107 of such Act: Provided fur-
ther, That not to exceed 20 per centum of any grant made
with funds appropriated herein (other than a grant made
available under the preceding proviso to the Housing As-
sistance Council or the National American Indian Housing
Council, or a grant using funds under section 107(b)(3)
of the Housing and Community Development Act of 1974)
shall be expended for ‘‘Planning and Management Devel-
opment’’ and ‘‘Administration’’ as defined in regulations
promulgated by the Department of Housing and Urban
Development: Provided further, That section 105(a)(25) of
such Act, as added by section 907(b)(1) of the Cranston-
Gonzalez National Affordable Housing Act, shall continue
to be effective after September 30, 1995, notwithstanding
section 907(b)(2) of such Act: Provided further, That sec-
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tion 916 of the Cranston-Gonzalez National Affordable
Housing Act shall apply with respect to fiscal year 1996,
notwithstanding section 916(f) of that Act.
Of the amount provided under this heading, the Sec-
retary of Housing and Urban Development may use up
to $53,000,000 for grants to public housing agencies (in-
cluding Indian housing authorities), nonprofit corpora-
tions, and other appropriate entities for a supportive serv-
ices program to assist residents of public and assisted
housing, former residents of such housing receiving ten-
ant-based assistance under section 8 of such Act (42
U.S.C. 1437f), and other low-income families and individ-
uals to become self-sufficient: Provided, That the program
shall provide supportive services, principally for the benefit
of public housing residents, to the elderly and the disabled,
and to families with children where the head of the house-
hold would benefit from the receipt of supportive services
and is working, seeking work, or is preparing for work
by participating in job training or educational programs:
Provided further, That the supportive services shall include
congregate services for the elderly and disabled, service co-
ordinators, and coordinated educational, training, and
other supportive services, including academic skills train-
ing, job search assistance, assistance related to retaining
employment, vocational and entrepreneurship development
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and support programs, transportation, and child care:
Provided further, That the Secretary shall require appli-
cants to demonstrate firm commitments of funding or
services from other sources: Provided further, That the
Secretary shall select public and Indian housing agencies
to receive assistance under this head on a competitive
basis, taking into account the quality of the proposed pro-
gram (including any innovative approaches), the extent of
the proposed coordination of supportive services, the ex-
tent of commitments of funding or services from other
sources, the extent to which the proposed program in-
cludes reasonably achievable, quantifiable goals for meas-
uring performance under the program over a three-year
period, the extent of success an agency has had in carrying
out other comparable initiatives, and other appropriate
criteria established by the Secretary.
Of the amount made available under this heading,
notwithstanding any other provision of law, $12,000,000
shall be available for contracts, grants, and other assist-
ance, other than loans, not otherwise provided for, for pro-
viding counseling and advice to tenants and homeowners
both current and prospective, with respect to property
maintenance, financial management, and such other mat-
ters as may be appropriate to assist them in improving
their housing conditions and meeting the responsibilities
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of tenancy or homeownership, including provisions for
training and for support of voluntary agencies and services
as authorized by section 106 of the Housing and Urban
Development Act of 1968, as amended, notwithstanding
section 106(c)(9) and section 106(d)(13) of such Act.
Of the amount made available under this heading,
notwithstanding any other provision of law, $15,000,000
shall be available for the tenant opportunity program.
Of the amount made available under this heading,
notwithstanding any other provision of law, $20,000,000
shall be available for youthbuild program activities author-
ized by subtitle D of title IV of the Cranston-Gonzalez
National Affordable Housing Act, as amended, and such
activities shall be an eligible activity with respect to any
funds made available under this heading.
For the cost of guaranteed loans, $31,750,000, as au-
thorized by section 108 of the Housing and Community
Development Act of 1974: Provided, That such costs, in-
cluding the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That these funds are
available to subsidize total loan principal, any part of
which is to be guaranteed, not to exceed $1,500,000,000:
Provided further, That the Secretary of Housing and
Urban Development may make guarantees not to exceed
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the immediately foregoing amount notwithstanding the ag-
gregate limitation on guarantees set forth in section
108(k) of the Housing and Community Development Act
of 1974. In addition, for administrative expenses to carry
out the guaranteed loan program, $675,000 which shall
be transferred to and merged with the appropriation for
departmental salaries and expenses.
The amount made available for fiscal year 1995 for
a special purpose grant for the renovation of the central
terminal in Buffalo, New York, shall be made available
for the central terminal and for other public facilities in
Buffalo, New York.
POLICY DEVELOPMENT AND RESEARCH
RESEARCH AND TECHNOLOGY
For contracts, grants, and necessary expenses of pro-
grams of research and studies relating to housing and
urban problems, not otherwise provided for, as authorized
by title V of the Housing and Urban Development Act
of 1970, as amended (12 U.S.C. 1701z–1 et seq.), includ-
ing carrying out the functions of the Secretary under sec-
tion 1(a)(1)(i) of Reorganization Plan No. 2 of 1968,
$34,000,000, to remain available until September 30,
1997.
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FAIR HOUSING AND EQUAL OPPORTUNITY
FAIR HOUSING ACTIVITIES
For contracts, grants, and other assistance, not oth-
erwise provided for, as authorized by title VIII of the Civil
Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988, and for contracts with qualified
fair housing enforcement organizations, as authorized by
section 561 of the Housing and Community Development
Act of 1987, as amended by the Housing and Community
Development Act of 1992, $30,000,000, to remain avail-
able until September 30, 1997.
MANAGEMENT AND ADMINISTRATION
SALARIES AND EXPENSES
(INCLUDING TRANSFERS OF FUNDS)
For necessary administrative and nonadministrative
expenses of the Department of Housing and Urban Devel-
opment, not otherwise provided for, including not to ex-
ceed $7,000 for official reception and representation ex-
penses, $962,558,000, of which $532,782,000 shall be
provided from the various funds of the Federal Housing
Administration, and $9,101,000 shall be provided from
funds of the Government National Mortgage Association,
and $675,000 shall be provided from the Community De-
velopment Grants Program account.
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OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $47,850,000, of which
$11,283,000 shall be transferred from the various funds
of the Federal Housing Administration.
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For carrying out the Federal Housing Enterprise Fi-
nancial Safety and Soundness Act of 1992, $14,895,000,
to remain available until expended, from the Federal
Housing Enterprise Oversight Fund: Provided, That such
amounts shall be collected by the Director as authorized
by section 1316 (a) and (b) of such Act, and deposited
in the Fund under section 1316(f) of such Act.
FEDERAL HOUSING ADMINISTRATION
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM
ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
During fiscal year 1996, commitments to guarantee
loans to carry out the purposes of section 203(b) of the
National Housing Act, as amended, shall not exceed a loan
principal of $110,000,000,000: Provided, That during fis-
cal year 1996, the Secretary shall sell assigned mortgage
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notes having an unpaid principal balance of up to
$4,000,000,000, which notes were originally insured under
section 203(b) of the National Housing Act: Provided fur-
ther, That the Secretary may use any negative subsidy
amounts from the sale of such assigned mortgage notes
during fiscal year 1996 for the disposition of properties
or notes under this heading.
During fiscal year 1996, obligations to make direct
loans to carry out the purposes of section 204(g) of the
National Housing Act, as amended, shall not exceed
$200,000,000: Provided, That the foregoing amount shall
be for loans to nonprofit and governmental entities in con-
nection with sales of single family real properties owned
by the Secretary and formerly insured under section 203
of such Act.
For administrative expenses necessary to carry out
the guaranteed and direct loan program, $341,595,000,
to be derived from the FHA-mutual mortgage insurance
guaranteed loans receipt account, of which not to exceed
$334,483,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed $7,112,000 shall be transferred to the appropria-
tion for the Office of Inspector General.
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FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the cost of guaranteed loans, as authorized by
sections 238 and 519 of the National Housing Act (12
U.S.C. 1715z–3 and 1735c), including the cost of modify-
ing such loans, $85,000,000, to remain available until ex-
pended: Provided, That such costs shall be as defined in
section 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available
to subsidize total loan principal any part of which is to
be guaranteed of not to exceed $17,400,000,000: Provided
further, That during fiscal year 1996, the Secretary shall
sell assigned notes having an unpaid principal balance of
up to $4,000,000,000, which notes were originally obliga-
tions of the funds established under sections 238 and 519
of the National Housing Act: Provided further, That the
Secretary may use any negative subsidy amounts from the
sale of such assigned mortgage notes during fiscal year
1996, in addition to amounts otherwise provided, for the
disposition of properties or notes under this heading (in-
cluding the credit subsidy for the guarantee of loans or
the reduction of positive credit subsidy amounts that
would otherwise be required for the sale of such properties
or notes), and for any other purpose under this heading:
Provided further, That any amounts made available in any
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prior appropriation Act for the cost (as such term is de-
fined in section 502 of the Congressional Budget Act of
1974) of guaranteed loans that are obligations of the
funds established under section 238 or 519 of the National
Housing Act that have not been obligated or that are
deobligated shall be available to the Secretary of Housing
and Urban Development in connection with the making
of such guarantees and shall remain available until ex-
pended, notwithstanding the expiration of any period of
availability otherwise applicable to such amounts.
Gross obligations for the principal amount of direct
loans, as authorized by sections 204(g), 207(l), 238(a),
and 519(a) of the National Housing Act, shall not exceed
$120,000,000; of which not to exceed $100,000,000 shall
be for bridge financing in connection with the sale of mul-
tifamily real properties owned by the Secretary and for-
merly insured under such Act; and of which not to exceed
$20,000,000 shall be for loans to nonprofit and govern-
mental entities in connection with the sale of single-family
real properties owned by the Secretary and formerly in-
sured under such Act.
In addition, for administrative expenses necessary to
carry out the guaranteed and direct loan programs,
$202,470,000, of which $198,299,000 shall be transferred
to the appropriation for departmental salaries and ex-
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penses; and of which $4,171,000 shall be transferred to
the appropriation for the Office of Inspector General.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN
GUARANTEE PROGRAM ACCOUNT
(INCLUDES TRANSFER OF FUNDS)
During fiscal year 1996, new commitments to issue
guarantees to carry out the purposes of section 306 of the
National Housing Act, as amended (12 U.S.C. 1721(g)),
shall not exceed $110,000,000,000.
For administrative expenses necessary to carry out
the guaranteed mortgage-backed securities program,
$9,101,000, to be derived from the GNMA—guarantees
of mortgage-backed securities guaranteed loan receipt ac-
count, of which not to exceed $9,101,000 shall be trans-
ferred to the appropriation for departmental salaries and
expenses.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
EXTEND ADMINISTRATIVE PROVISIONS FROM THE
RESCISSION ACT
SEC. 201. (a) PUBLIC AND INDIAN HOUSING MOD-
ERNIZATION.—
(1) EXPANSION
OF
USE
OF
MODERNIZATION
FUNDING.—Subsection 14(q) of the United States
Housing Act of 1937 is amended to read as follows:
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‘‘(q)(1) In addition to the purposes enumerated in
subsections (a) and (b), a public housing agency may use
modernization assistance provided under section 14, and
development assistance provided under section 5(a) that
was not allocated, as determined by the Secretary, for pri-
ority replacement housing, for any eligible activity author-
ized by this section, by section 5, or by applicable Appro-
priations Acts for a public housing agency, including the
demolition, rehabilitation, revitalization, and replacement
of existing units and projects and, for up to 10 percent
of its allocation of such funds in any fiscal year, for any
operating subsidy purpose authorized in section 9. Except
for assistance used for operating subsidy purposes under
the preceding sentence, assistance provided to a public
housing agency under this section shall principally be used
for the physical improvement or replacement of public
housing and for associated management improvements,
except as otherwise approved by the Secretary. Public
housing units assisted under this paragraph shall be eligi-
ble for operating subsidies, unless the Secretary deter-
mines that such units or projects have not received suffi-
cient assistance under this Act or do not meet other re-
quirements of this Act.
‘‘(2) A public housing agency may provide assistance
to developments that include units for other than very low-
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income families (‘mixed income developments’), in the
form of a grant, loan, operating assistance, or other form
of investment which may be made to—
‘‘(A) a partnership, a limited liability company,
or other legal entity in which the public housing
agency or its affiliate is a general partner, managing
member, or otherwise participates in the activities of
such entity; or
‘‘(B) any entity which grants to the public
housing agency the option to purchase the develop-
ment within 20 years after initial occupancy in ac-
cordance with section 42(i)(7) of the Internal Reve-
nue Code of 1986, as amended. Units shall be made
available in such developments for periods of not less
than 20 years, by master contract or by individual
lease, for occupancy by low-income families referred
from time to time by the public housing agency. The
number of such units shall be:
‘‘(i) in the same proportion to the total
number of units in such development that the
total financial commitment provided by the pub-
lic housing agency bears to the value of the
total financial commitment in the development,
or
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‘‘(ii) not be less than the number of units
that could have been developed under the con-
ventional public housing program with the as-
sistance involved, or
‘‘(iii) as may otherwise be approved by the
Secretary.
‘‘(3) A mixed income development may elect to have
all units subject only to the applicable local real estate
taxes, notwithstanding that the low-income units assisted
by public housing funds would otherwise be subject to sec-
tion 6(d) of the Housing Act of 1937.
‘‘(4) If an entity that owns or operates a mixed-in-
come project under this subsection enters into a contract
with a public housing agency, the terms of which obligate
the entity to operate and maintain a specified number of
units in the project as public housing units in accordance
with the requirements of this Act for the period required
by law, such contractual terms may provide that, if, as
a result of a reduction in appropriations under section 9,
or any other change in applicable law, the public housing
agency is unable to fulfill its contractual obligations with
respect to those public housing units, that entity may devi-
ate, under procedures and requirements developed through
regulations by the Secretary, from otherwise applicable re-
strictions under this Act regarding rents, income eligi-
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bility, and other areas of public housing management with
respect to a portion or all of those public housing units,
to the extent necessary to preserve the viability of those
units while maintaining the low-income character of the
units, to the maximum extent practicable.’’.
(2) APPLICABILITY.—Section 14(q) of the
United States Housing Act of 1937, as amended by
subsection (a) of this section, shall be effective only
with respect to assistance provided from funds made
available for fiscal year 1996 or any preceding fiscal
year.
(3) APPLICABILITY
TO
IHAS.—In accordance
with section 201(b)(2) of the United States Housing
Act of 1937, the amendment made by this sub-
section shall apply to public housing developed or
operated pursuant to a contract between the Sec-
retary of Housing and Urban Development and an
Indian housing authority.
(b) ONE-FOR-ONE REPLACEMENT OF PUBLIC AND
INDIAN HOUSING.—
(1) EXTENDED AUTHORITY.—Section 1002(d)
of Public Law 104–19 is amended to read as follows:
‘‘(d) Subsections (a), (b), and (c) shall be effective
for applications for the demolition, disposition, or conver-
sion to homeownership of public housing approved by the
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Secretary, and other consolidation and relocation activities
of public housing agencies undertaken, on, before, or after
September 30, 1995 and before September 30, 1996.’’.
(2) Section 18(f) of the United States Housing
Act of 1937 is amended by adding at the end the
following new sentence:
‘‘No one may rely on the preceding sentence as the basis
for reconsidering a final order of a court issued, or a set-
tlement approved by, a court.’’.
(3) APPLICABILITY.—In accordance with sec-
tion 201(b)(2) of the United States Housing Act of
1937, the amendments made by this subsection and
by sections 1002 (a), (b), and (c) of Public Law
104–19 shall apply to public housing developed or
operated pursuant to a contract between the Sec-
retary of Housing and Urban Development and an
Indian housing authority.
CONVERSION OF CERTAIN PUBLIC HOUSING TO
VOUCHERS
SEC. 202. (a) IDENTIFICATION
OF UNITS.—Each
public housing agency shall identify any public housing de-
velopments—
(1) that are on the same or contiguous sites;
(2) that total more than—
(A) 300 dwelling units; or
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(B) in the case of high-rise family build-
ings or substantially vacant buildings; 300
dwelling units;
(3) that have a vacancy rate of at least 10 per-
cent for dwelling units not in funded, on schedule
modernization programs;
(4) identified as distressed housing that the
public housing agency cannot assure the long-term
viability as public housing through reasonable revi-
talization, density reduction, or achievement of a
broader range of household income; and
(5) for which the estimated cost of continued
operation and modernization of the developments as
public housing exceeds the cost of providing tenant-
based assistance under section 8 of the United
States Housing Act of 1937 for all families in occu-
pancy, based on appropriate indicators of cost (such
as the percentage of total development cost required
for modernization).
(b) IMPLEMENTATION AND ENFORCEMENT.—
(1) STANDARDS FOR IMPLEMENTATION.—The
Secretary shall establish standards to permit imple-
mentation of this section in fiscal year 1996.
(2) 
CONSULTATION.—Each 
public 
housing
agency shall consult with the applicable public hous-
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ing tenants and the unit of general local government
in identifying any public housing developments
under subsection (a).
(3) FAILURE OF PHAS TO COMPLY WITH SUB-
SECTION
(a).—Where the Secretary determines
that—
(A) a public housing agency has failed
under subsection (a) to identify public housing
developments for removal from the inventory of
the agency in a timely manner;
(B) a public housing agency has failed to
identify one or more public housing develop-
ments which the Secretary determines should
have been identified under subsection (a); or
(C) one or more of the developments iden-
tified by the public housing agency pursuant to
subsection (a) should not, in the determination
of the Secretary, have been identified under
that subsection;
the Secretary may designate the developments to be
removed from the inventory of the public housing
agency pursuant to this section.
(c) REMOVAL OF UNITS FROM THE INVENTORIES OF
PUBLIC HOUSING AGENCIES.—
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(1) Each public housing agency shall develop
and carry out a plan in conjunction with the Sec-
retary for the removal of public housing units identi-
fied under subsection (a) or subsection (b)(3), over
a period of up to five years, from the inventory of
the public housing agency and the annual contribu-
tions contract. The plan shall be approved by the
relevant local official as not inconsistent with the
Comprehensive 
Housing 
Affordability 
Strategy
under title I of the Housing and Community Devel-
opment Act of 1992, including a description of any
disposition and demolition plan for the public hous-
ing units.
(2) The Secretary may extend the deadline in
paragraph (1) for up to an additional five years
where the Secretary makes a determination that the
deadline is impracticable.
(3) The Secretary shall take appropriate actions
to ensure removal of developments identified under
subsection (a) or subsection (b)(3) from the inven-
tory of a public housing agency, if the public hous-
ing agency fails to adequately develop a plan under
paragraph (1), or fails to adequately implement such
plan in accordance with the terms of the plan.
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(C) in the case of an agency receiving as-
sistance for the major reconstruction of obsolete
projects, any amounts obligated by the Sec-
retary for the major reconstruction of the devel-
opment pursuant to section 5 of such Act,
to the tenant-based assistance program or appro-
priate site revitalization of such agency.
(6) CESSATION OF UNNECESSARY SPENDING.—
Notwithstanding any other provision of law, if, in
the determination of the Secretary, a development
meets or is likely to meet the criteria set forth in
subsection (a), the Secretary may direct the public
housing agency to cease additional spending in con-
nection with the development, except to the extent
that additional spending is necessary to ensure de-
cent, safe, and sanitary housing until the Secretary
determines or approves an appropriate course of ac-
tion with respect to such development under this
section.
(d) CONVERSION TO TENANT-BASED ASSISTANCE.—
(1) The Secretary shall make authority avail-
able to a public housing agency to provide tenant-
based assistance pursuant to section 8 to families re-
siding in any development that is removed from the
inventory of the public housing agency and the an-
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nual contributions contract pursuant to subsection
(b).
(2) Each conversion plan under subsection (c)
shall—
(A) require the agency to notify families
residing in the development, consistent with any
guidelines issued by the Secretary governing
such notifications, that the development shall be
removed from the inventory of the public hous-
ing agency and the families shall receive tenant-
based or project-based assistance, and to pro-
vide any necessary counseling for families; and
(B) ensure that all tenants affected by a
determination under this section that a develop-
ment shall be removed from the inventory of a
public housing agency shall be offered tenant-
based or project-based assistance and shall be
relocated, as necessary, to other decent, safe,
sanitary, and affordable housing which is, to
the maximum extent practicable, housing of
their choice.
(e) IN GENERAL.—
(1) The Secretary may require a public housing
agency to provide such information as the Secretary
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considers necessary for the administration of this
section.
(2) As used in this section, the term ‘‘develop-
ment’’ shall refer to a project or projects, or to por-
tions of a project or projects, as appropriate.
(3) Section 18 of the United States Housing
Act of 1937 shall not apply to the demolition of de-
velopments removed from the inventory of the public
housing agency under this section.
STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE
SEC. 203. (a) ‘‘TAKE-ONE, TAKE-ALL’’.—Section
8(t) of the United States Housing Act of 1937 is hereby
repealed.
(b) EXEMPTION FROM NOTICE REQUIREMENTS FOR
THE CERTIFICATE AND VOUCHER PROGRAMS.—Section
8(c) of such Act is amended—
(1) in paragraph (8), by inserting after ‘‘sec-
tion’’ the following: ‘‘(other than a contract for as-
sistance under the certificate or voucher program)’’;
and
(2) in the first sentence of paragraph (9), by
striking ‘‘(but not less than 90 days in the case of
housing certificates or vouchers under subsection (b)
or (o))’’ and inserting ‘‘, other than a contract under
the certificate or voucher program’’.
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(c) ENDLESS LEASE.—Section 8(d)(1)(B) of such
Act is amended—
(1) in clause (ii), by inserting ‘‘during the term
of the lease,’’ after ‘‘(ii)’’; and
(2) in clause (iii), by striking ‘‘provide that’’
and inserting ‘‘during the term of the lease,’’.
(d) APPLICABILITY.—The provisions of this section
shall be effective for fiscal year 1996 only.
PUBLIC HOUSING/SECTION 8 MOVING TO WORK
DEMONSTRATION
SEC. 204. (a) PURPOSE.—The purpose of this dem-
onstration is to give public housing agencies and the Sec-
retary of Housing and Urban Development the flexibility
to design and test various approaches for providing and
administering housing assistance that: reduce cost and
achieve greater cost effectiveness in Federal expenditures;
give incentives to families with children where the head
of household is working, seeking work, or is preparing for
work by participating in job training, educational pro-
grams, or programs that assist people to obtain employ-
ment and become economically self-sufficient; and increase
housing choices for low-income families.
(b) PROGRAM AUTHORITY.—The Secretary of Hous-
ing and Urban Development shall conduct a demonstra-
tion program under this section beginning in fiscal year
1996 under which up to 30 public housing agencies (in-
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cluding Indian housing authorities) administering the pub-
lic or Indian housing program and the section 8 housing
assistance payments program, administering a total num-
ber of public housing units not in excess of 25,000, may
be selected by the Secretary to participate. The Secretary
shall provide training and technical assistance during the
demonstration and conduct detailed evaluations of up to
15 such agencies in an effort to identify replicable pro-
gram models promoting the purpose of the demonstration.
Under the demonstration, notwithstanding any provision
of the United States Housing Act of 1937 except as pro-
vided in subsection (e), an agency may combine operating
assistance provided under section 9 of the United States
Housing Act of 1937, modernization assistance provided
under section 14 of such Act, and assistance provided
under section 8 of such Act for the certificate and voucher
programs, to provide housing assistance for low-income
families, as defined in section 3(b)(2) of the United States
Housing Act of 1937, and services to facilitate the transi-
tion to work on such terms and conditions as the agency
may propose and the Secretary may approve.
(c) APPLICATION.—An application to participate in
the demonstration—
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(1) shall request authority to combine assist-
ance under sections 8, 9, and 14 of the United
States Housing Act of 1937;
(2) shall be submitted only after the public
housing agency provides for citizen participation
through a public hearing and, if appropriate, other
means;
(3) shall include a plan developed by the agency
that takes into account comments from the public
hearing and any other public comments on the pro-
posed program, and comments from current and
prospective residents who would be affected, and
that includes criteria for—
(A) families to be assisted, which shall re-
quire that at least 75 percent of the families as-
sisted by participating demonstration public
housing authorities shall be very low-income
families, as defined in section 3(b)(2) of the
United States Housing Act of 1937, and at
least 50 percent of the families selected shall
have incomes that do not exceed 30 percent of
the median family income for the area, as de-
termined by the Secretary with adjustments for
smaller and larger families, except that the Sec-
retary may establish income ceilings higher or
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lower than 30 percent of the median for the
area on the basis of the Secretary’s findings
that such variations are necessary because of
unusually high or low family income;
(B) establishing a reasonable rent policy,
which shall be designed to encourage employ-
ment and self-sufficiency by participating fami-
lies, consistent with the purpose of this dem-
onstration, such as by excluding some or all of
a family’s earned income for purposes of deter-
mining rent;
(C) continuing to assist substantially the
same total number of eligible low-income fami-
lies as would have been served had the amounts
not been combined;
(D) maintaining a comparable mix of fami-
lies (by family size) as would have been pro-
vided had the amounts not been used under the
demonstration; and
(E) assuring that housing assisted under
the demonstration program meets housing qual-
ity standards established or approved by the
Secretary; and
(4) may request assistance for training and
technical assistance to assist with design of the dem-
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onstration and to participate in a detailed evalua-
tion.
(d) SELECTION.—In selecting among applications,
the Secretary shall take into account the potential of each
agency to plan and carry out a program under the dem-
onstration, the relative performance by an agency under
the public housing management assessment program
under section 6(j) of the United States Housing Act of
1937, and other appropriate factors as determined by the
Secretary.
(e) APPLICABILITY OF 1937 ACT PROVISIONS.—
(1) Section 18 of the United States Housing
Act of 1937 shall continue to apply to public hous-
ing notwithstanding any use of the housing under
this demonstration.
(2) Section 12 of such Act shall apply to hous-
ing assisted under the demonstration, other than
housing assisted solely due to occupancy by families
receiving tenant-based assistance.
(f) EFFECT ON SECTION 8, OPERATING SUBSIDIES,
AND COMPREHENSIVE GRANT PROGRAM ALLOCATIONS.—
The amount of assistance received under section 8, section
9, or pursuant to section 14 by a public housing agency
participating in the demonstration under this part shall
not be diminished by its participation.
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(g) RECORDS, REPORTS, AND AUDITS.—
(1) KEEPING OF RECORDS.—Each agency shall
keep such records as the Secretary may prescribe as
reasonably necessary to disclose the amounts and
the disposition of amounts under this demonstration,
to ensure compliance with the requirements of this
section, and to measure performance.
(2) REPORTS.—Each agency shall submit to the
Secretary a report, or series of reports, in a form
and at a time specified by the Secretary. Each re-
port shall—
(A) document the use of funds made avail-
able under this section;
(B) provide such data as the Secretary
may request to assist the Secretary in assessing
the demonstration; and
(C) describe and analyze the effect of as-
sisted activities in addressing the objectives of
this part.
(3) ACCESS
TO
DOCUMENTS
BY
THE
SEC-
RETARY.—The Secretary shall have access for the
purpose of audit and examination to any books, doc-
uments, papers, and records that are pertinent to
assistance in connection with, and the requirements
of, this section.
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(4) ACCESS
TO
DOCUMENTS
BY
THE
COMP-
TROLLER
GENERAL.—The Comptroller General of
the United States, or any of the duly authorized rep-
resentatives of the Comptroller General, shall have
access for the purpose of audit and examination to
any books, documents, papers, and records that are
pertinent to assistance in connection with, and the
requirements of, this section.
(h) EVALUATION AND REPORT.—
(1) CONSULTATION
WITH
PHA
AND
FAMILY
REPRESENTATIVES.—In 
making 
assessments
throughout the demonstration, the Secretary shall
consult with representatives of public housing agen-
cies and residents.
(2) REPORT
TO
CONGRESS.—Not later than
180 days after the end of the third year of the dem-
onstration, the Secretary shall submit to the Con-
gress a report evaluating the programs carried out
under the demonstration. The report shall also in-
clude findings and recommendations for any appro-
priate legislative action.
(i) FUNDING
FOR TECHNICAL ASSISTANCE
AND
EVALUATION.—From amounts appropriated for assist-
ance under section 14 of the United States Housing Act
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of 1937 for fiscal years 1996, 1997, and 1998, the Sec-
retary may use up to a total of $5,000,000—
(1) to provide, directly or by contract, training
and technical assistance—
(A) to public housing agencies that express
an interest to apply for training and technical
assistance pursuant to subsection (c)(4), to as-
sist them in designing programs to be proposed
for the demonstration; and
(B) to up to 10 agencies selected to receive
training and technical assistance pursuant to
subsection (c)(4), to assist them in implement-
ing the approved program; and
(2) to conduct detailed evaluations of the activi-
ties of the public housing agencies under paragraph
(1)(B), directly or by contract.
EXTENSION OF MULTIFAMILY HOUSING FINANCE
PROGRAM
SEC. 205. (a) The first sentence of section 542(b)(5)
of the Housing and Community Development Act of 1992
(12 U.S.C. 1707 note) is amended by striking ‘‘on not
more than 15,000 units over fiscal years 1993 and 1994’’
and inserting ‘‘on not more than 7,500 units during fiscal
year 1996’’.
(b) The first sentence of section 542(c)(4) of the
Housing and Community Development Act of 1992 (12
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U.S.C. 1707 note) is amended by striking ‘‘on not to ex-
ceed 30,000 units over fiscal years 1993, 1994, and 1995’’
and inserting ‘‘on not more than 10,000 units during fis-
cal year 1996’’.
FORECLOSURE OF HUD-HELD MORTGAGES THROUGH
THIRD PARTIES
SEC. 206. During fiscal year 1996, the Secretary of
Housing and Urban Development may delegate to one or
more entities the authority to carry out some or all of the
functions and responsibilities of the Secretary in connec-
tion with the foreclosure of mortgages held by the Sec-
retary under the National Housing Act.
RESTRUCTURING OF THE HUD MULTIFAMILY MORTGAGE
PORTFOLIO
THROUGH
STATE
HOUSING
FINANCE
AGENCIES.
SEC. 207. During fiscal year 1996, the Secretary of
Housing and Urban Development may sell or otherwise
transfer multifamily mortgages held by the Secretary
under the National Housing Act to a State housing fi-
nance agency in connection with a program authorized
under section 542 (b) or (c) of the Housing and Commu-
nity Development Act of 1992 without regard to the unit
limitations in section 542(b)(5) or 542(c)(4) of such Act.
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TRANSFER OF SECTION 8 AUTHORITY
SEC. 208. Section 8 of the United States Housing
Act of 1937 is amended by adding the following new sub-
section at the end:
‘‘(bb) TRANSFER OF BUDGET AUTHORITY.—If an as-
sistance contract under this section, other than a contract
for tenant-based assistance, is terminated or is not re-
newed, or if the contract expires, the Secretary shall, in
order to provide continued assistance to eligible families,
including eligible families receiving the benefit of the
project-based assistance at the time of the termination,
transfer any budget authority remaining in the contract
to another contract. The transfer shall be under such
terms as the Secretary may prescribe.’’.
DOCUMENTATION OF MULTIFAMILY REFINANCINGS
SEC. 209. Notwithstanding the 16th paragraph under
the item relating to ‘‘administrative provisions’’ in title II
of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appro-
priations Act, 1995 (Public Law 103–327; 108 Stat.
2316), the amendments to section 223(a)(7) of the Na-
tional Housing Act made by the 15th paragraph of such
Act shall be effective during fiscal year 1996 and there-
after.
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FHA MULTIFAMILY DEMONSTRATION AUTHORITY
SEC. 210. (a) On and after October 1, 1995, and be-
fore October 1, 1997, the Secretary of Housing and Urban
Development shall initiate a demonstration program with
respect to multifamily projects whose owners agree to par-
ticipate and whose mortgages are insured under the Na-
tional Housing Act and that are assisted under section
8 of the United States Housing Act of 1937 and whose
present section 8 rents are, in the aggregate, in excess
of the fair market rent of the locality in which the project
is located. These programs shall be designed to test the
feasibility and desirability of the goal of ensuring, to the
maximum extent practicable, that the debt service and op-
erating expenses, including adequate reserves, attributable
to such multifamily projects can be supported with or
without mortgage insurance under the National Housing
Act and with or without above-market rents and utilizing
project-based assistance or, with the consent of the prop-
erty owner, tenant-based assistance, while taking into ac-
count the need for assistance of low- and very low-income
families in such projects. In carrying out this demonstra-
tion, the Secretary may use arrangements with third par-
ties, under which the Secretary may provide for the as-
sumption by the third parties (by delegation, contract, or
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otherwise) of some or all of the functions, obligations, and
benefits of the Secretary.
(1) GOALS.—The Secretary of Housing and
Urban Development shall carry out the demonstra-
tion programs under this section in a manner that—
(A) will protect the financial interests of
the Federal Government;
(B) will result in significant discretionary
cost savings through debt restructuring and
subsidy reduction; and
(C) will, in the least costly fashion, address
the goals of—
(i) maintaining existing housing stock
in a decent, safe, and sanitary condition;
(ii) minimizing the involuntary dis-
placement of tenants;
(iii) restructuring the mortgages of
such projects in a manner that is consist-
ent with local housing market conditions;
(iv) supporting fair housing strategies;
(v) minimizing any adverse income tax
impact on property owners; and
(vi) minimizing any adverse impact on
residential neighborhoods.
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In determining the manner in which a mortgage is
to be restructured or the subsidy reduced, the Sec-
retary may balance competing goals relating to indi-
vidual projects in a manner that will further the
purposes of this section.
(2) DEMONSTRATION APPROACHES.—In carry-
ing out the demonstration programs, subject to the
appropriation in subsection (f), the Secretary may
use one or more of the following approaches:
(A) Joint venture arrangements with third
parties, under which the Secretary may provide
for the assumption by the third parties (by del-
egation, contract, or otherwise) of some or all
of the functions, obligations, and benefits of the
Secretary.
(B) Subsidization of the debt service of the
project to a level that can be paid by an owner
receiving an unsubsidized market rent.
(C) Renewal of existing project-based as-
sistance contracts where the Secretary shall ap-
prove proposed initial rent levels that do not ex-
ceed the greater of 120 percent of fair market
rents or comparable market rents for the rel-
evant metropolitan market area or at rent levels
under a budget-based approach.
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(D) 
Nonrenewal 
of 
expiring 
existing
project-based assistance contracts and providing
tenant-based assistance to previously assisted
households.
(b) For purposes of carrying out demonstration pro-
grams under subsection (a)—
(1) the Secretary may manage and dispose of
multifamily properties owned by the Secretary as of
October 1, 1995 and multifamily mortgages held by
the Secretary as of October 1, 1995 for properties
assisted under section 8 with rents above 110 per-
cent of fair market rents without regard to any
other provision of law; and
(2) the Secretary may delegate to one or more
entities the authority to carry out some or all of the
functions and responsibilities of the Secretary in
connection with the foreclosure of mortgages held by
the Secretary under the National Housing Act.
(c) For purposes of carrying out demonstration pro-
grams under subsection (a), subject to such third party
consents (if any) as are necessary including but not lim-
ited to (i) consent by the Government National Mortgage
Association where it owns a mortgage insured by the Sec-
retary; (ii) consent by an issuer under the mortgage-
backed securities program of the Association, subject to
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the responsibilities of the issuer to its security holders and
the Association under such program; and (iii) parties to
any contractual agreement which the Secretary proposes
to modify or discontinue, and subject to the appropriation
in subsection (c), the Secretary or one or more third par-
ties designated by the Secretary may take the following
actions:
(1) Notwithstanding any other provision of law,
and subject to the agreement of the project owner,
the Secretary or third party may remove, relinquish,
extinguish, modify, or agree to the removal of any
mortgage, regulatory agreement, project-based as-
sistance contract, use agreement, or restriction that
had been imposed or required by the Secretary, in-
cluding restrictions on distributions of income which
the Secretary or third party determines would inter-
fere with the ability of the project to operate without
above market rents. The Secretary or third party
may require an owner of a property assisted under
the section 8 new construction/substantial rehabilita-
tion program to apply any accumulated residual re-
ceipts toward effecting the purposes of this section.
(2) Notwithstanding any other provision of law,
the Secretary of Housing and Urban Development
may enter into contracts to purchase reinsurance, or
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enter into participations or otherwise transfer eco-
nomic interest in contracts of insurance or in the
premiums paid, or due to be paid, on such insurance
to third parties, on such terms and conditions as the
Secretary may determine.
(3) The Secretary may offer project-based as-
sistance with rents at or below fair market rents for
the locality in which the project is located and may
negotiate such other terms as are acceptable to the
Secretary and the project owner.
(4) The Secretary may offer to pay all or a por-
tion of the project’s debt service, including payments
monthly from the appropriate Insurance Fund, for
the full remaining term of the insured mortgage.
(5) Notwithstanding any other provision of law,
the Secretary may forgive and cancel any FHA-in-
sured mortgage debt that a demonstration program
property cannot carry at market rents while bearing
full operating costs.
(6) For demonstration program properties that
cannot carry full operating costs (excluding debt
service) at market rents, the Secretary may approve
project-based rents sufficient to carry such full oper-
ating costs and may offer to pay the full debt service
in the manner provided in paragraph (4).
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(d) COMMUNITY AND TENANT INPUT.—In carrying
out this section, the Secretary shall develop procedures to
provide appropriate and timely notice to officials of the
unit of general local government affected, the community
in which the project is situated, and the tenants of the
project.
(e) LIMITATION ON DEMONSTRATION AUTHORITY.—
The Secretary may carry out demonstration programs
under this section with respect to mortgages not to exceed
15,000 units. The demonstration authorized under this
section shall not be expanded until the reports required
under subsection (g) are submitted to the Congress.
(f) APPROPRIATION.—For the cost of modifying loans
held or guaranteed by the Federal Housing Administra-
tion, as authorized by this subsection (a)(2) and sub-
section (c), $30,000,000, to remain available until Sep-
tember 30, 1997: Provided, That such costs shall be as
defined in section 502 of the Congressional Budget Act
of 1974, as amended.
(g) REPORT
TO CONGRESS.—The Secretary shall
submit to the Congress every six months after the date
of enactment of this Act a report describing and assessing
the programs carried out under the demonstrations. The
Secretary shall also submit a final report to the Congress
not later than six months after the end of the demonstra-
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tions. The reports shall include findings and recommenda-
tions for any legislative action appropriate. The reports
shall also include a description of the status of each multi-
family housing project selected for the demonstrations
under this section. The final report may include—
(1) the size of the projects;
(2) the geographic locations of the projects, by
State and region;
(3) the physical and financial condition of the
projects;
(4) the occupancy profile of the projects, includ-
ing the income, family size, race, and ethnic origin
of current tenants, and the rents paid by such ten-
ants;
(5) a description of actions undertaken pursu-
ant to this section, including a description of the ef-
fectiveness of such actions and any impediments to
the transfer or sale of multifamily housing projects;
(6) a description of the extent to which the
demonstrations under this section have displaced
tenants of multifamily housing projects;
(7) a description of any of the functions per-
formed in connection with this section that are
transferred or contracted out to public or private en-
tities or to States;
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(8) a description of the impact to which the
demonstrations under this section have affected the
localities and communities where the selected multi-
family housing projects are located; and
(9) a description of the extent to which the
demonstrations under this section have affected the
owners of multifamily housing projects.
ASSESSMENT COLLECTION DATES FOR OFFICE OF
FEDERAL HOUSING ENTERPRISE OVERSIGHT
SEC. 211. Section 1316(b) of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 4516(b)) is
amended by striking paragraph (2) and inserting the fol-
lowing new paragraph:
‘‘(2) TIMING OF PAYMENT.—The annual assessment
shall be payable semiannually for each fiscal year, on Oc-
tober 1 and April 1.’’.
MERGER LANGUAGE FOR ASSISTANCE FOR THE RENEWAL
OF EXPIRING SECTION 8 SUBSIDY CONTRACTS AND
ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING
SEC. 212. All remaining obligated and unobligated
balances in the Renewal of Expiring Section 8 Subsidy
Contracts account on September 30, 1995, shall imme-
diately thereafter be transferred to and merged with the
obligated and unobligated balances, respectively, of the
Annual Contributions for Assisted Housing account.
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DEBT FORGIVENESS
SEC. 213. (a) The Secretary of Housing and Urban
Development shall cancel the indebtedness of the Hubbard
Hospital Authority of Hubbard, Texas, relating to the
public facilities loan for Project Number PFL–TEX–215,
issued under title II of the Housing Amendments of 1955.
Such hospital authority is relieved of all liability to the
Government for the outstanding principal balance on such
loan, for the amount of accrued interest on such loan, and
for any fees and charges payable in connection with such
loan.
(b) The Secretary of Housing and Urban Develop-
ment shall cancel the indebtedness of the Groveton Texas
Hospital Authority relating to the public facilities loan for
Project Number TEX–41–PFL0162, issued under title II
of the Housing Amendments of 1955. Such hospital au-
thority is relieved of all liability to the Government for
the outstanding principal balance on such loan, for the
amount of accrued interest on such loan, and for any fees
and charges payable in connection with such loan.
(c) The Secretary of Housing and Urban Develop-
ment shall cancel the indebtedness of the Hepzibah Public
Service District of Hepzibah, West Virginia, relating to
the public facilities loan for Project Number WV–46–
PFL0031, issued under title II of the Housing Amend-
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ments of 1955. Such public service district is relieved of
all liability to the Government for the outstanding prin-
cipal balance on such loan, for the amount of accrued in-
terest on such loan, and for any fees and charges payable
in connection with such loan.
(d) The Secretary of Housing and Urban Develop-
ment shall cancel indebtedness of Sheehan Memorial Hos-
pital of Buffalo, New York, relating to the Federal Hous-
ing Administration insurance for Project Number 014–
13002 issued under section 242 of the National Housing
Act. Such hospital is relieved of all liability to the Govern-
ment for the outstanding principal balance on such loan,
for the amount of accrued interest on such loan, and for
any fees and charges payable in connection with such loan.
CLARIFICATIONS
SEC. 214. For purposes of Federal law, the Paul Mi-
rabile Center in San Diego, California, including areas
within such Center that are devoted to the delivery of sup-
portive services, has been determined to satisfy the ‘‘con-
tinuum of care’’ requirements of the Department of Hous-
ing and Urban Development, and shall be treated as—
(a) consisting solely of residential units that (i)
contain sleeping accommodations and kitchen and
bathroom facilities, (ii) are located in a building that
is used exclusively to facilitate the transition of
homeless individuals (within the meaning of section
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HR 3019 IH
103 of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11302), as in effect on Decem-
ber 19, 1989) to independent living within 24
months, (iii) are suitable for occupancy, with each
cubicle constituting a separate bedroom and residen-
tial unit, (iv) are used on other than a transient
basis, and (v) shall be originally placed in service on
November 1, 1995; and
(b) property that is entirely residential rental
property, namely, a project for residential rental
property.
EMPLOYMENT LIMITATIONS
SEC. 215. (a) By the end of fiscal year 1996 the De-
partment of Housing and Urban Development shall em-
ploy no more than seven Assistant Secretaries, notwith-
standing section 4(a) of the Department of Housing and
Urban Development Act.
(b) By the end of fiscal year 1996 the Department
of Housing and Urban Development shall employ no more
than 77 schedule C and 20 non-career senior executive
service employees.
USE OF FUNDS
SEC. 216. (a) Of the $93,400,000 earmarked in Pub-
lic Law 101–144 (103 Stat. 850), as amended by Public
Law 101–302 (104 Stat. 237), for special projects and
purposes, any amounts remaining of the $500,000 made
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available to Bethlehem House in Highland, California, for
site planning and loan acquisition shall instead be made
available to the County of San Bernardino in California
to assist with the expansion of the Los Padrinos Gang
Intervention Program and the Unity Home Domestic Vio-
lence Shelter.
(b) The amount made available for fiscal year 1995
for the removal of asbestos from an abandoned public
school building in Toledo, Ohio shall be made available
for the renovation and rehabilitation of an industrial
building at the University of Toledo in Toledo, Ohio.
LEAD-BASED PAINT ABATEMENT
SEC. 217. (a) Section 1011 of Title X—Residential
Lead-Based Paint Hazard Reduction Act of 1992 is
amended as follows: Strike ‘‘priority housing’’ wherever it
appears in said section and insert ‘‘housing’’.
(b) Section 1011(a) shall be amended as follows: At
the end of the subsection after the period, insert: ‘‘Grants
shall only be made under this section to provide assistance
for housing which meets the following criteria—
‘‘(1) for grants made to assist rental housing,
at least 50 percent of the units must be occupied by
or made available to families with incomes at or
below 50 percent of the area median income level
and the remaining units shall be occupied or made
available to families with incomes at or below 80
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and insurance of official motor vehicles in foreign coun-
tries, 
when 
required 
by 
law 
of 
such 
countries;
$20,265,000, to remain available until expended: Pro-
vided, That where station allowance has been authorized
by the Department of the Army for officers of the Army
serving the Army at certain foreign stations, the same al-
lowance shall be authorized for officers of the Armed
Forces assigned to the Commission while serving at the
same foreign stations, and this appropriation is hereby
made available for the payment of such allowance: Pro-
vided further, That when traveling on business of the Com-
mission, officers of the Armed Forces serving as members
or as Secretary of the Commission may be reimbursed for
expenses as provided for civilian members of the Commis-
sion: Provided further, That the Commission shall reim-
burse other Government agencies, including the Armed
Forces, for salary, pay, and allowances of personnel as-
signed to it.
CONSUMER PRODUCT SAFETY COMMISSION
SALARIES AND EXPENSES
For necessary expenses of the Consumer Product
Safety Commission, including hire of passenger motor ve-
hicles, services as authorized by 5 U.S.C. 3109, but at
rates for individuals not to exceed the per diem rate equiv-
alent to the rate for GS–18, purchase of nominal awards