fied State housing agencies. The report shall be sub-
mitted not later than the expiration of the 3-month
period beginning upon the end of the fiscal year for
which the report is made and shall describe the dem-
onstration program under this section, the amount
of assistance provided under the program and the
affordable housing incentive loan programs assisted,
and the housing assisted by such programs with
amounts under this section.
(f) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) The term ‘‘demonstration program’’ means
the demonstration program for assistance carried
out under this section by the Secretary.
(2) The term ‘‘elderly family’’ means a family
whose head (or their spouse), or whose sole member,
is a person who is at least 62 years of age. The term
includes 2 or more persons of such age living to-
gether, and 1 or more persons of such age living
with 1 or more persons determined to be essential to
their care or well-being.
(3) The term ‘‘farmer’’ means a person (and
the family of such person) who receives a substantial
portion of his or her income from primary produc-
tion of agricultural or aquacultural commodities or
the handling of such commodities in the unprocessed
stage, and includes any person (and the family of
such person) who is retired or disabled, but was a
farmworker at the time of retirement or becoming
disabled.
(4) The term ‘‘first mortgage’’ means such
classes of first liens or interests in property as are
commonly given to secure advances on, or the un-
paid purchase price of, real estate under the laws of
the State in which the real estate is located, together
with the credit instrument, if any, secured thereby.
(5) The terms ‘‘income’’ and ‘‘adjusted income’’
have the meanings given the terms in section 3(b)
of the United States Housing Act of 1937.
(6) The term ‘‘loan program’’ means an afford-
able housing incentive loan program carried out by
a qualified State housing agency.
(7) The terms ‘‘low-income families’’ and ‘‘very
low-income families’’ have the meanings given such
terms in section 3(b) of the United States Housing
Act of 1937.
(8) The term ‘‘mortgage’’ means a first or sub-
ordinate mortgage on real estate, in fee simple, or
on a leasehold (A) under a lease for not less than
99 years which is renewable, or (B) under a lease
having a period of not less than 10 years to run be-
yond the maturity date of the mortgage.
(9) The term ‘‘nonprofit organization’’ means a
private organization—
(A) no part of the net earnings of which
inures to the benefit of any member, share-
holder, founder, contributor, or individual; and
(B) that is approved by the qualified State
housing agency involved as to financial respon-
sibility.
(10) The term ‘‘qualified State housing agency’’
means any—
(A) public body or agency, publicly spon-
sored corporation, or instrumentality of one or
more States that is designated by the chief ex-
ecutive officer of the State or States for pur-
poses of section 802 of the Housing and Com-
munity Development Act of 1974; or
(B) any other agency of a State authorized
to carry out activities under this section that
the Secretary determines is capable of partici-
pating in the demonstration program.
(11) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
(12) The term ‘‘sponsor’’ includes nonprofit
and for-profit organizations and entities and public
agencies and entities.
(13) The term ‘‘State’’ means the States of the
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, Guam, the Virgin Is-
lands, American Samoa, and any other territory or
possession of the United States.
(14) The term ‘‘substantial rehabilitation’’
means repair or rehabilitation of a dwelling unit the
cost of which exceeds 40 percent of the value of the
dwelling unit before such rehabilitation.
(15) The term ‘‘unit of general local govern-
ment’’ means any city, town, township, county, par-
ish, village, or other general purpose political sub-
division of a State.
(g) REGULATIONS.—The Secretary shall issue any
regulations necessary to carry out the demonstration pro-
gram under this section.
(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$20,000,000 for fiscal year 1995 and $20,000,000 for fis-
cal year 1996.
(i) TERMINATION OF DEMONSTRATION.—The Sec-
retary may not provide assistance under the demonstra-
tion program under this section after the conclusion of the
5th fiscal year that begins after the date of the enactment
of this Act.
SEC. 4. MERGER OF SECTION 8 CERTIFICATE AND VOUCH-
ER PROGRAMS.
(a) IN GENERAL.—Section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) is amended to
read as follows:
‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME
FAMILIES
‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—
‘‘(1) IN GENERAL.—For the purposes of aiding
low-income families in obtaining a decent place to
live and promoting economically mixed housing, the
Secretary may provide assistance payments with re-
spect to existing housing in accordance with the pro-
visions of this section.
‘‘(2) ELDERLY HOUSING.—Notwithstanding any
other provision of this Act, assistance payments
under this section may be provided, in accordance
with regulations prescribed by the Secretary, with
respect to some or all of the units in any project ap-
proved pursuant to section 202 of the Housing Act
of 1959 (as in effect before October 1, 1991).
‘‘(b) ANNUAL
CONTRIBUTIONS
CONTRACTS
FOR
RENTAL ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary may enter
into annual contributions contracts under this sub-
section with public housing agencies to provide rent-
al housing assistance under this section for low-in-
come families. The Secretary shall enter into a sepa-
rate annual contributions contract with each public
housing agency to obligate the authority approved
each year. Each such annual contributions contract
shall bind the Secretary to make such authority, and
any amendments increasing such authority, available
to the public housing agency for a specified period.
‘‘(2) SECRETARY
ACTING
AS
PHA.—In areas
where no public housing agency has been organized
or where the Secretary determines that a public
housing agency is unable to implement the provi-
sions of this section, the Secretary may enter into
such contracts and perform the other functions as-
signed to a public housing agency by this section.
‘‘(3) TREATMENT
OF
ASSISTANCE
FOR
SUP-
PORTIVE HOUSING FOR THE DISABLED.—The Sec-
retary may not consider the receipt by a public hous-
ing agency of assistance under section 811(b)(1) of
the Cranston-Gonzalez National Affordable Housing
Act, or the amount received, in approving assistance
under this section for the agency or in determining
the amount of such assistance to be provided to the
agency.
‘‘(c) ASSISTANCE CONTRACTS.—
‘‘(1) IN GENERAL.—Each public housing agen-
cy that receives amounts under an annual contribu-
tions contract may enter into assistance contracts to
make rental assistance payments to owners of exist-
ing dwelling units in accordance with the provisions
of this section.
‘‘(2) PHA ACTING AS OWNER.—A public hous-
ing agency may contract to make rental assistance
payments under this section to itself (or any agency
or instrumentality thereof) as the owner of dwelling
units, and the agency shall be subject to the same
program requirements as are applied to other own-
ers. In such cases, the Secretary may establish ini-
tial rents within applicable limits.
‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)
and 6 and any other provisions of this Act that are
inconsistent with the provisions of this section shall
not apply to assistance contracts entered into pursu-
ant to this section.
‘‘(d) MAXIMUM MONTHLY RENT.—