103D CONGRESS
1ST SESSION
H. R. 3400
AN ACT
To provide a more effective, efficient, and
responsive government.
103D CONGRESS
1ST SESSION
H. R. 3400
AN ACT
To provide a more effective, efficient, and responsive
government.
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
‘‘Government Reform and Savings Act of 1993’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
TITLE I—DEPARTMENT OF AGRICULTURE
Subtitle A—Department of Agriculture Reorganization
Sec. 1001. Department of Agriculture reorganization.
Subtitle B—Eliminating Federal Support for Honey
Sec. 1101. Amendments to section 207 of the Agricultural Act of 1949.
Sec. 1102. Amendment to section 405 of the Agricultural Act of 1949.
Sec. 1103. Amendments to section 405A of the Agricultural Act of 1949.
Sec. 1104. Savings provision.
TITLE II—DEPARTMENT OF COMMERCE
Sec. 2001. Polar satellite convergence.
TITLE III—DEPARTMENT OF DEFENSE
Sec. 3001. Use of proceeds from the sale of recyclable materials at military in-
stallations.
Sec. 3002. Closure of the Uniformed Services University of the Health
Sciences.
Sec. 3003. Streamlining and reorganization of the Corps of Engineers.
TITLE IV—DEPARTMENT OF ENERGY
Subtitle A—Alaska Power Administration Sale Authorization
Sec. 4001. Short title.
Sec. 4002. Sale of Snettisham and Eklutna hydroelectric projects.
Sec. 4003. Assessment of alternative options.
Subtitle B—Federal-Private Cogeneration of Electricity
Sec. 4101. Federal-private cogeneration of electricity.
Subtitle C—Power Marketing Administrations
Sec. 4201. Power Marketing Administrations refinancing study.
Sec. 4202. Bonneville Power Administration refinancing study.
Subtitle D—Termination of Advanced Liquid Metal Reactor Program
Sec. 4301. Termination of advanced liquid metal reactor program.
TITLE V—DEPARTMENT OF HEALTH AND HUMAN SERVICES
Sec. 5001. Study of methods to increase flexibility in contracting for Medicare
claims processing.
Sec. 5002. Workers’ compensation data exchange pilot projects.
Sec. 5003. Federal clearinghouse on death information.
Sec. 5004. Continuing disability reviews.
TITLE VI—DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
Sec. 6001. Multifamily property disposition.
Sec. 6002. Section 235 mortgage refinancing.
Sec. 6003. Use of emergency assistance funds for residency in multifamily
housing disposition projects.
Sec. 6004. Additional employees to facilitate disposition of FHA inventory
properties.
Sec. 6005. HUD streamlining.
TITLE VII—DEPARTMENT OF THE INTERIOR
Sec. 7001. Improvement of Minerals Management Service royalty collection.
Sec. 7002. Phase out of Mineral Institute program.
Sec. 7003. Reorganization study of Bureau of Indian Affairs.
Sec. 7004. Termination of annual direct grant assistance.
TITLE VIII—MISCELLANEOUS PROVISIONS
Sec. 8001. Limitation on certain annual pay adjustments.
Sec. 8002. Reduction of Federal full-time equivalent positions.
TITLE IX—DEPARTMENT OF LABOR
Sec. 9001. Deterrence of fraud and abuse in FECA program.
Sec. 9002. Enhancement of reemployment programs for Federal employees dis-
abled in the performance of duty.
Sec. 9003. Wage determinations.
Sec. 9004. Elimination of filing requirements.
TITLE X—DEPARTMENT OF STATE AND UNITED STATES
INFORMATION AGENCY
Sec. 10001. Improvement of efficiency of State Department activities.
Sec. 10002. Improvement of efficiency of USIA public diplomacy activities.
TITLE XI—DEPARTMENT OF TRANSPORTATION
Sec. 11001. Reemployment rights for certain merchant seamen.
Sec. 11002. Reform of essential air service program.
Sec. 11003. Airway science program.
Sec. 11004. Collegiate training initiative.
TITLE XII—DEPARTMENT OF VETERANS AFFAIRS
Subtitle A—Administrative Improvements
Sec. 12001. Elimination of hospital and nursing home bed capacity require-
ments.
Sec. 12002. Elimination of requirement for minimum number of personnel in
the Office of Inspector General.
Sec. 12003. Modification of administrative reorganization authority.
Sec. 12004. Elimination of requirement for certain services in the Veterans
Health Administration.
Sec. 12005. Modification of physician requirement for certain senior Veterans
Health Administration officials.
Sec. 12006. Use of funds recovered from third parties.
Subtitle B—Closure of Certain Facilities
Sec. 12101. Closure of supply depots.
Sec. 12102. Waiver of other provisions.
Subtitle C—Provision of Information From the Medicare and Medicaid
Coverage Data Bank to the Department of Veterans Affairs
Sec. 12201. Provision of data bank information to Department of Veterans Af-
fairs.
Subtitle D—Veterans’ Appeals Improvements
Sec. 12301. Board of Veterans’ Appeals.
Sec. 12302. Decisions by the Board.
Sec. 12303. Technical correction.
Sec. 12304. Hearings.
Sec. 12305. Elimination of requirement for annual income questionnaires.
TITLE XIII—HUMAN RESOURCE MANAGEMENT
Sec. 13001. Federal workforce training.
Sec. 13002. SES annual leave accumulation.
TITLE XIV—REINVENTING SUPPORT SERVICES
Sec. 14001. Short title.
Sec. 14002. Transfer of functions.
Sec. 14003. Government publications to be available throughout the Govern-
ment.
Sec. 14004. Inventory and furnishing of Government publications.
Sec. 14005. Additional responsibilities of the Public Printer.
Sec. 14006. Additional responsibilities of the Superintendent of Documents.
Sec. 14007. Depository libraries.
Sec. 14008. Definitions.
TITLE XV—STREAMLINING MANAGEMENT CONTROL
Sec. 15001. Authority to increase efficiency in reporting to Congress.
TITLE XVI—FINANCIAL MANAGEMENT
Sec. 16001. Short title.
Sec. 16002. Electronic payments.
Sec. 16003. Franchise funds and innovation funds.
Sec. 16004. Simplification of management reporting process.
Sec. 16005. Annual financial reports.
Sec. 16006. Authorization of appropriations for enhancing debt collection.
Sec. 16007. Contracts for collection services.
Sec. 16008. Notification to agencies of debtors’ mailing addresses.
Sec. 16009. Contracts for collection services.
Sec. 16010. Adjusting civil monetary penalties for inflation.
TITLE XVII—RESCISSIONS OF BUDGET AUTHORITY
Sec. 17001. Short title.
Subtitle A—Department of Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies
Subtitle B—Departments of Commerce, Justice, and State, the Judiciary, and
Related Agencies
Subtitle C—Energy and Water Development
Subtitle D—Foreign Operations, Export Financing, and Related Agencies
Subtitle E—Department of the Interior and Related Agencies
Subtitle F—Departments of Labor, Health and Human Services, Education,
and Related Agencies
Subtitle G—Legislative Branch
Subtitle H—Department of Defense-Military
Subtitle I—Department of Transportation and Related Agencies
Subtitle J—Treasury, Postal Service, and General Government
Subtitle K—Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies
TITLE I—DEPARTMENT OF
AGRICULTURE
Subtitle A—Department of
Agriculture Reorganization
SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZA-
TION.
(a) IN GENERAL.—The Secretary of Agriculture shall
(1) consolidate field, regional, and national offices within
the Department of Agriculture and (2) reduce personnel
by not less than 7,500 staff years, so as to achieve a re-
duction in expenditures by the Department of not less
than $1,640,000,000 during the period fiscal years 1995
through 1999.
(b) AUTHORITIES.—In consolidating offices and re-
ducing personnel as required by subsection (a), the Sec-
retary shall take such action on the basis of the powers
vested in the Secretary under other laws.
Subtitle B—Eliminating Federal
Support for Honey
SEC. 1101. AMENDMENTS TO SECTION 207 OF THE AGRICUL-
TURAL ACT OF 1949.
(a) Section 207(a) of the Agricultural Act of 1949
is amended to read as follows:
‘‘(a) IN GENERAL.—For each of the 1991 through
1995 crops of honey, the price of honey shall be supported
through loans, purchases, or other operations, except that
for the 1994 and 1995 crops, the price of honey shall be
supported through recourse loans.
‘‘(1) For the 1991 through 1993 crop years,
the rate of support shall be not less than 53.8 cents
per pound.
‘‘(2) For the 1994 and 1995 crop years, the
Secretary shall provide recourse loans to producers
at such a rate that minimizes costs and forfeitures,
except that such rate shall not be less than 44 cents
a pound. Section 407 shall not be applicable to
honey forfeited to the Commodity Credit Corpora-
tion under loans made under this paragraph.
‘‘(3) A producer who fails to repay a loan made
under paragraph (2) by the end of the crop year fol-
lowing the crop year for which such loan was made
shall be ineligible for a loan under this section for
subsequent crop years, except that the Secretary
may waive this provision in any case where in which
the Secretary determines that the failure to repay
the loan was due to hardship conditions or cir-
cumstances beyond the control of the producer.’’.
(b) Section 207(b) of the Agricultural Act of 1949
is amended by striking ‘‘for a crop’’ and inserting ‘‘for
the 1991 through 1993 crops’’.
(c) Section 207(c) of the Agricultural Act of 1949
is amended by striking ‘‘1998’’ and inserting ‘‘1993’’.
(d) Section 207(e) of the Agricultural Act of 1949
is amended by—
(1) striking subparagraphs (D) through (G);
(2) inserting ‘‘and’’ after the semicolon follow-
ing subparagraph (B); and
(3) changing the semicolon following subpara-
graph (C) to a period.
(e) Section 207(j) of the Agricultural Act of 1949 is
amended by striking ‘‘1998’’ and inserting ‘‘1995’’.
SEC. 1102. AMENDMENT TO SECTION 405 OF THE AGRICUL-
TURAL ACT OF 1949.
Section 405(a) of the Agricultural Act of 1949 is
amended by striking in the first sentence ‘‘section 405A’’
and inserting ‘‘sections 207 and 405A’’.
SEC. 1103. AMENDMENTS TO SECTION 405A OF THE AGRI-
CULTURAL ACT OF 1949.
Section 405A(a) of the Agricultural Act of 1949 is
amended by striking all that follows ‘‘1992 crop year,’’
and inserting ‘‘and $150,000 in the 1993 crop year.’’.
SEC. 1104. SAVINGS PROVISION.
A provision of this subtitle may not affect the liability
of any person under any provision of law as in effect be-
fore the effective date of the provision.
TITLE II—DEPARTMENT OF
COMMERCE
SEC. 2001. POLAR SATELLITE CONVERGENCE.
The Departments of Commerce and Defense and the
National Aeronautics and Space Administration shall pro-
pose a single operational polar environmental and weather
satellite system, which meets national needs. It is the
sense of Congress that such a proposed system, contingent
on the provision of adequate resources to fully meet the
national security interests of the United States, shall be
operated as a civil system by the Department of Com-
merce. A detailed implementation plan shall be submitted
to Congress by the Director of the Office of Science and
Technology Policy, in consultation with the Departments
of Commerce and Defense and the National Aeronautics
and Space Administration, by April 30, 1994. The plan
shall be designed to result in savings of up to $300 million
in budget authority and up to $251 million in outlays be-
tween fiscal years 1994 and 1999. The National Aero-
nautics and Space Administration and the National Oce-
anic and Atmospheric Administration shall jointly develop
a plan to implement a program modelled after the Oper-
ational Satellite Improvement Program for the purpose of
making incremental enhancements in operational weather
satellite systems. The goal of the plan shall be to achieve
these enhancements in a cost effective manner by imple-
menting procedures aimed at avoiding duplication of
effort, cost overruns, and schedule delays. The Adminis-
trators of the National Aeronautics and Space Adminis-
tration and the National Oceanic and Atmospheric Admin-
istration shall submit to Congress no later than April 30,
1994, a report detailing the elements of the plan and out-
lining savings in budget authority and budget outlays pro-
jected through fiscal year 1999.
TITLE III—DEPARTMENT OF
DEFENSE
SEC. 3001. USE OF PROCEEDS FROM THE SALE OF RECY-
CLABLE MATERIALS AT MILITARY INSTALLA-
TIONS.
Section 2577 of title 10, United States Code, is
amended by striking out subsections (b) and (c) and in-
serting in lieu thereof the following:
‘‘(b) Proceeds from the sale of recyclable materials
at an installation shall be credited—
‘‘(1) to funds available for operations and main-
tenance at that installation; and
‘‘(2) at the discretion of the commander of the
installation and if a balance remains available after
such funds are credited, to the nonappropriated mo-
rale and welfare account of the installation to be
used for any morale or welfare activity.’’.
SEC. 3002. CLOSURE OF THE UNIFORMED SERVICES UNI-
VERSITY OF THE HEALTH SCIENCES.
(a) CLOSURE REQUIRED.—Section 2112 of title 10,
United States Code, is amended—
(1) in subsection (c)—
(A) by inserting ‘‘and the closure’’ after
‘‘The development’’; and
(B) by striking out ‘‘subsection (a)’’ and
inserting in lieu thereof ‘‘subsections (a) and
(b)’’; and
(2) by striking out subsection (b) and inserting
in lieu thereof the following new subsection:
‘‘(b)(1) Not later than September 30, 1998, the Sec-
retary of Defense shall close the University. To achieve
the closure of the University by that date, the Secretary
shall begin to terminate the operations of the University
beginning in fiscal year 1995. On account of the required
closure of the University under this subsection, no stu-
dents may be admitted to begin studies in the University
after September 30, 1994.
‘‘(2) Section 2687 of this title and any other provi-
sion of law establishing preconditions to the closure of any
activity of the Department of Defense shall not apply with
regard to the termination of the operations of the Univer-
sity or to the closure of the University pursuant to this
subsection.’’.
(b) FINAL GRADUATION
OF STUDENTS.—Section
2112(a) of such title is amended—
(1) in the second sentence, by striking out ‘‘,
with the first class graduating not later than Sep-
tember 21, 1982.’’ and inserting in lieu thereof ‘‘,
except that no students may be awarded degrees by
the University after September 30, 1998.’’; and
(2) by adding at the end the following new sen-
tence: ‘‘On a case-by-case basis, the Secretary of De-
fense may provide for the continued education of a
person who, immediately before the closure of the
University under subsection (b), was a student in
the University and completed substantially all re-
quirements necessary to graduate from the Univer-
sity.’’.
(c) TERMINATION OF UNIVERSITY BOARD OF RE-
GENTS.—Section 2113 of such title is amended by adding
at the end the following new subsection:
‘‘(k) The Board shall terminate on September 30,
1998, except that the Secretary of Defense may terminate
the Board before that date as part of the termination of
the operations of the University under section 2112(b) of
this title.’’.
(d) PROHIBITION ON RECIPROCAL AGREEMENTS.—
Section 2114(e)(1) of such title is amended by adding at
the end the following new sentence: ‘‘No agreement may
be entered into under this subsection after September 30,
1994, and all such agreements shall terminate not later
than September 30, 1998.’’.
(e) CONFORMING AMENDMENTS.—(1) Section 178 of
such title, relating to the Henry M. Jackson Foundation
for the Advancement of Military Medicine, is amended—
(A) in subsection (b), by inserting after ‘‘Uni-
formed Services University of the Health Sciences,’’
the following: ‘‘or after the closure of the University,
with the Department of Defense,’’;
(B) in subsection (c)(1)(B), by striking out
‘‘the Dean of the Uniformed Services University of
the Health Sciences’’ and inserting in lieu thereof ‘‘a
person designated by the Secretary of Defense’’; and
(C) in subsection (g)(1), by inserting after
‘‘Uniformed Services University of the Health
Sciences,’’ the following: ‘‘or after the closure of the
University, the Secretary of Defense’’.
(2) Section 466(a)(1)(B) of the Public Health Service
Act (42 U.S.C. 286a(a)(1)(B)), relating to the Board of
Regents of the National Library of Medicine, is amended
by striking out ‘‘the Dean of the Uniformed Services Uni-
versity of the Health Sciences,’’.
(f) CLERICAL AMENDMENTS.—(1) The heading of
section 2112 of title 10, United States Code, is amended
to read to read as follows:
‘‘§ 2112. Establishment and closure of University’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 104 of such title is
amended to read as follows:
‘‘2112. Establishment and closure of University.’’.
SEC. 3003. STREAMLINING AND REORGANIZATION OF
CORPS OF ENGINEERS.
(a) DEVELOPMENT OF PLAN.—The Secretary of the
Army shall develop a plan to reorganize the United States
Army Corps of Engineers by reorganizing the head-
quarters offices, reducing the number of division offices,
and restructuring the district functions so as to increase
the efficiency of the United States Army Corps of Engi-
neers and reduce staff and costs, with the goal of achiev-
ing approximately $50 million in net annual savings by
fiscal year 1998.
(b) TRANSMITTAL AND APPROVAL OF PLAN.—The
Secretary of the Army shall transmit to Congress the plan
developed under subsection (a) for approval. The Sec-
retary shall not implement such plan until it is approved
by Congress.
TITLE IV—DEPARTMENT OF
ENERGY
Subtitle A—Alaska Power
Administration Sale Authorization
SEC. 4001. SHORT TITLE.
This subtitle may be cited as the ‘‘Alaska Power Ad-
ministration Sale Authorization Act’’.
SEC. 4002. SALE OF SNETTISHAM AND EKLUTNA HYDRO-
ELECTRIC PROJECTS.
(a) The Secretary of Energy may sell the Snettisham
Hydroelectric Project (referred to in this subtitle as
‘‘Snettisham’’) to the State of Alaska Power Authority
(now known as the Alaska Industrial Development and
Export Authority, and referred to in this subtitle as the
‘‘Authority’’), or its successor, in accordance with the Feb-
ruary 10, 1989, Snettisham Purchase Agreement between
the Alaska Power Administration of the United States De-
partment of Energy and the Authority.
(b) The Secretary of Energy may sell the Eklutna
Hydroelectric Project (referred to in this subtitle as
‘‘Eklutna’’) to the Municipality of Anchorage doing busi-
ness as Municipal Light and Power, the Chugach Electric
Association, Inc., and the Matanuska Electric Association,
Inc. (referred to in this subtitle as ‘‘Eklutna Purchasers’’)
in accordance with the August 2, 1989, Eklutna Purchase
Agreement between the United States Department of En-
ergy and the Eklutna Purchasers.
(c) The heads of other affected Federal departments
and agencies, including the Secretary of the Interior, shall
assist the Secretary of Energy in implementing the sales
authorized by this Act.
(d) The Secretary of Energy shall deposit sale pro-
ceeds in the Treasury of the United States to the credit
of miscellaneous receipts.
(e) There are authorized to be appropriated such
sums as are necessary to prepare or acquire Eklutna and
Snettisham assets for sale and conveyance, such prepara-
tions to provide sufficient title to ensure the beneficial use,
enjoyment, and occupancy to the purchasers of the assets
to be sold.
(f) No later than one year after both of the sales au-
thorized in section 4002 have occurred, as measured by
the Transaction Dates stipulated in the Purchase Agree-
ments, the Secretary of Energy shall—
(1) complete the business of, and close out, the
Alaska Power Administration; and
(2) prepare and submit to Congress a report
documenting the sales.
SEC. 4003. ASSESSMENT OF ALTERNATIVE OPTIONS.
Before taking any action authorized in section 4002,
the Secretary shall assess the feasibility of alternative op-
tions for maximizing the return to the Treasury from the
sale of the Alaska Power Marketing Administration.
Subtitle B—Federal-Private
Cogeneration of Electricity
SEC. 4101. FEDERAL-PRIVATE COGENERATION OF ELEC-
TRICITY.
Section 804(2)(B) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287c(2)(B)) is amended by
striking ‘‘, excluding any cogeneration process for other
than a federally owned building or buildings or other fed-
erally owned facilities.’’.
Subtitle C—Power Marketing
Administrations
SEC. 4201. POWER MARKETING ADMINISTRATIONS REFI-
NANCING STUDY.
The Administrators of the Southeastern, Southwest-
ern and Western Area Power Administrations, in consulta-
tion with their respective firm power contractors and other
interested parties (including, where applicable, the Bureau
of Reclamation), shall study refinancing options, including
modifications to existing financial and accounting prac-
tices that may be required to effectively and efficiently
issue and manage revenue bonds. Such refinancing options
shall, for each of the power systems they administer, sat-
isfy their respective repayment obligations to the United
States Treasury without causing any increase in their re-
spective firm power rates beyond the rates that would oth-
erwise result under rate-setting policies and practices in
effect on October 1, 1993. The results of such studies shall
be submitted no later than May 1, 1994, to the Speaker
of the House of Representatives and the President of the
Senate. Such studies shall be made within the limits of
existing funding, or, if necessary, with funds contributed
by firm power contractors.
SEC. 4202. BONNEVILLE POWER ADMINISTRATION REFI-
NANCING STUDY.
The Administrator of the Bonneville Power Adminis-
tration, in consultation with his customers and constitu-
ents, shall study options, including an open market
buyout, a Treasury buyout, or any other reasonable alter-
native that would lead to a permanent resolution of the
repayment reform initiative directed at Bonneville’s appro-
priation investment repayment obligation. Such refinanc-
ing options shall satisfy the outstanding appropriated in-
vestment repayment obligation, without increasing rates
beyond the rates that would otherwise result under rate-
setting policies and practices in effect on October 1, 1993.
The result of this study shall be submitted to the Speaker
of the House of Representatives and the President of the
Senate no later than March 1, 1994.
Subtitle 
D—Termination 
of 
Ad-
vanced Liquid Metal Reactor
Program
SEC. 4301. TERMINATION OF ADVANCED LIQUID METAL RE-
ACTOR PROGRAM.
(a) IN GENERAL.—No amount of funds provided for
any fiscal year may be obligated by the Secretary of En-
ergy after the date of the enactment of this Act for the
civilian portion of the advanced liquid metal reactor pro-
gram, including—
(1) the program’s promotion of the use of such
reactors for the disposal of high-level radioactive
waste; and
(2) Department of Energy support for regu-
latory applications to the Nuclear Regulatory Com-
mission for design certification for advanced liquid
metal reactors or related licensed facilities.
(b) PROHIBITION OF OTHER USES.—The amount of
funds available on the date of the enactment of this Act
for obligation for the program described in subsection (a)
shall not be available for obligation by the Secretary of
Energy after such date for any other purpose.
(c) EXCEPTION.—Subsections (a) and (b) shall not
apply to obligations required to be incurred in terminating
the program described in subsection (a).
TITLE V—DEPARTMENT OF
HEALTH AND HUMAN SERVICES
SEC. 5001. STUDY OF METHODS TO INCREASE FLEXIBILITY
IN CONTRACTING FOR MEDICARE CLAIMS
PROCESSING.
(a) STUDY.—The Secretary of Health and Human
Services shall conduct a study of methods to increase flexi-
bility in contracting for claims processing under the medi-
care program and to otherwise simplify the administration
of the program, and shall include in the study an analysis
of the feasibility and desirability of carrying out the follow-
ing changes to the program:
(1) Permitting entities other than insurance
companies to serve as carriers under part B of the
program.
(2) Eliminating the requirement that fiscal
intermediaries under part A of the program be nom-
inated by a group or association of providers of serv-
ices under such part.
(3) Increasing the Secretary’s flexibility in as-
signing particular functions to fiscal intermediaries
and carriers.
(4) Expanding the circumstances and standards
under which the Secretary may terminate a contract
with a fiscal intermediary or a carrier.
(5) Permitting the Secretary to require that a
fiscal intermediary or a carrier meet data matching
requirements for purposes of identifying situations
in which medicare is a secondary payer.
(6) Eliminating the requirements that the Sec-
retary make an additional payment to fiscal
intermediaries and carriers for administrative costs.
(7) Eliminating the requirement that the Sec-
retary enter into an agreement with a separate car-
rier for purposes of administering part B with re-
spect to individuals entitled to benefits as qualified
railroad retirement beneficiaries.
(b) REPORT.—Not later than April 30, 1994, the
Secretary shall submit a report to the Committees on En-
ergy and Commerce and Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate on the study conducted under subsection (a), to-
gether with any recommendations of the Secretary for
statutory revisions to increase flexibility and reduce costs
in the administration of the medicare program.
SEC. 5002. WORKERS’ COMPENSATION DATA EXCHANGE
PILOT PROJECTS.
(a) IN GENERAL.—The Secretary is authorized to
conduct pilot projects with not more than three States for
the purpose of studying various means of obtaining on a
timely and accurate basis such information relating to
benefits paid on account of total or partial disability under
the States’ workers’ compensation plan as the Secretary
may require for the purpose of carrying out section 224
of the Social Security Act.
(b) REIMBURSEMENT OF STATE COSTS.—A State
that participates in a project conducted pursuant to sub-
section (a) may be paid by the Secretary, from amounts
available pursuant to subsection (e), the reasonable costs
of such participation.
(c) EVALUATION.—The Secretary shall evaluate each
project conducted pursuant to subsection (a) and shall
apply the findings, as appropriate, to agreements nego-
tiated pursuant to subsection (h)(2) of such section 224.
(d) 
DEADLINE
FOR
COMMENCEMENT
OF
PROJECTS.—No pilot project authorized by subsection (a)
may be commenced after the expiration of the 5-year pe-
riod beginning on the date of enactment of this section.
(e) FUNDING.—Expenditures for pilot projects con-
ducted pursuant to subsection (a) may be made from the
Federal Disability Insurance Trust Fund and the Old-Age
and Survivors Insurance Trust Fund, as determined ap-
propriate by the Secretary.
(f) EFFECTIVE DATE.—This section shall be effective
upon enactment.
SEC. 5003. FEDERAL CLEARINGHOUSE ON DEATH INFOR-
MATION.
(a) CLEARINGHOUSE DESIGNATION.—The heading
for section 205(r) of the Social Security Act is amended
to read as follows: ‘‘Clearinghouse on Death Information’’.
(b) ACQUISITION OF DISCLOSABLE DEATH INFORMA-
TION FROM STATES.—
(1) Section 205(r)(1)(A) of the Social Security
Act is amended by striking ‘‘to furnish the Secretary
periodically with’’ and inserting ‘‘to furnish periodi-
cally to the Secretary, for use in carrying out sub-
paragraph (B) and paragraphs (3) and (4),’’.
(2)(A) Notwithstanding clause (ii) of section
6103(d)(4)(B) of the Internal Revenue Code of 1986
(as added by section 13444(a) of the Omnibus
Budget Reconciliation Act of 1993 (Public Law
continuing disability reviews and related workloads: for
fiscal year 1994, $46 million; for fiscal year 1995,
$47,200,000; for fiscal year 1996, $48,500,000; for fiscal
year 
1997, 
$49,800,000; 
for 
fiscal 
year 
1998,
$51,100,000; and for fiscal year 1999, $52,500,000.’’.
TITLE 
VI—DEPARTMENT 
OF
HOUSING AND URBAN DEVEL-
OPMENT
SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION.
(a) FINDINGS.—The Congress finds that—
(1) the portfolio of multifamily housing project
mortgages insured by the FHA is severely troubled
and at risk of default, requiring the Secretary to in-
crease loss reserves from $5,500,000,000 in 1991 to
$11,900,000,000 in 1992 to cover estimated future
losses;
(2) the inventory of multifamily housing
projects owned by the Secretary has more than tri-
pled since 1989, and, by the end of 1993, may ex-
ceed 75,000 units;
(3) the cost to the Federal Government of own-
ing and maintaining multifamily housing projects es-
calated to approximately $250,000,000 in fiscal year
1992;
(4) the inventory of multifamily housing
projects subject to mortgages held by the Secretary
has increased dramatically, to more than 2,400
mortgages, and approximately half of these mort-
gages, with over 230,000 units, are delinquent;
(5) the inventory of insured and formerly in-
sured multifamily housing projects is rapidly deterio-
rating, endangering tenants and neighborhoods;
(6) over 5 million families today have a critical
need for housing that is affordable and habitable;
and
(7) the current statutory framework governing
the disposition of multifamily housing projects effec-
tively impedes the Government’s ability to dispose of
properties, protect tenants, and ensure that projects
are maintained over time.
(b) MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.—Section 203 of the Housing
and Community Development Amendments of 1978 (12
U.S.C. 1701z–11) is amended to read as follows:
‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.
‘‘(a) GOALS.—The Secretary of Housing and Urban
Development shall manage or dispose of multifamily hous-
ing projects that are owned by the Secretary or that are
subject to a mortgage held by the Secretary in a manner
that—
‘‘(1) is consistent with the National Housing
Act and this section;
‘‘(2) will protect the financial interests of the
Federal Government; and
‘‘(3) will, in the least costly fashion among rea-
sonable available alternatives, further the goals of—
‘‘(A) preserving housing so that it can re-
main available to and affordable by low-income
persons;
‘‘(B) preserving and revitalizing residential
neighborhoods;
‘‘(C) maintaining existing housing stock in
a decent, safe, and sanitary condition;
‘‘(D) minimizing the involuntary displace-
ment of tenants;
‘‘(E) maintaining housing for the purpose
of providing rental housing, cooperative hous-
ing, and homeownership opportunities for low-
income persons; and
‘‘(F) minimizing the need to demolish mul-
tifamily housing projects.
The Secretary, in determining the manner in which a
project is to be managed or disposed of, may balance com-
peting goals relating to individual projects in a manner
that will further the purposes of this section.
‘‘(b) DEFINITIONS.—For purposes of this section:
‘‘(1) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘multifamily housing project’ means any multi-
family rental housing project which is, or prior to
acquisition by the Secretary was, assisted or insured
under the National Housing Act, or was subject to
a loan under section 202 of the Housing Act of
1959.
‘‘(2) SUBSIDIZED
PROJECT.—The term ‘sub-
sidized project’ means a multifamily housing project
that, immediately prior to the assignment of the
mortgage on such project to, or the acquisition of
such mortgage by, the Secretary, was receiving any
of the following types of assistance:
‘‘(A) Below market interest rate mortgage
insurance 
under 
the 
proviso 
of 
section
221(d)(5) of the National Housing Act.
‘‘(B) Interest reduction payments made in
connection with mortgages insured under sec-
tion 236 of the National Housing Act.
‘‘(C) Direct loans made under section 202
of the Housing Act of 1959.
‘‘(D) Assistance in the form of—
‘‘(i) rent supplement payments under
section 101 of the Housing and Urban De-
velopment Act of 1965,
‘‘(ii) additional assistance payments
under section 236(f)(2) of the National
Housing Act,
‘‘(iii) housing assistance payments
made under section 23 of the United
States Housing Act of 1937 (as in effect
before January 1, 1975), or
‘‘(iv) housing assistance payments
made under section 8 of the United States
Housing Act of 1937 (excluding payments
made for tenant-based assistance under
section 8),
if (except for purposes of section 183(c) of the
Housing and Community Development Act of
1987) such assistance payments are made to
more than 50 percent of the units in the
project.
‘‘(3) FORMERLY
SUBSIDIZED
PROJECT.—The
term ‘formerly subsidized project’ means a multi-
family housing project owned by the Secretary that
was a subsidized project immediately prior to its ac-
quisition by the Secretary.
‘‘(4) 
UNSUBSIDIZED
PROJECT.—The 
term
‘unsubsidized project’ means a multifamily housing
project owned by the Secretary that is not a sub-
sidized project or a formerly subsidized project.
‘‘(5) AFFORDABLE.—A unit shall be considered
affordable if—
‘‘(A) for units occupied—
‘‘(i) by very low-income families, the
rent does not exceed 30 percent of 50 per-
cent of the area median income, as deter-
mined by the Secretary, with adjustments
for smaller and larger families, except that
the Secretary may establish the rent based
on an amount higher or lower than 50 per-
cent of the median for the area on the
basis of the Secretary’s findings that such
variation is necessary because of prevailing
levels of construction costs or fair market
rents, or unusually high or low family in-
comes; and
‘‘(ii) by low-income families other
than very low-income families, the rent
does not exceed 30 percent of 80 percent
of the area median income, as determined
by the Secretary, except that the Secretary
may establish the rent based on an amount
higher or lower than 80 percent of the me-
dian for the area on the basis of the Sec-
retary’s findings that such variation is nec-
essary because of prevailing levels of con-
struction costs or fair market rents, or un-
usually high or low family incomes; or
‘‘(B) the unit, or the family residing in the
unit, is receiving assistance under section 8 of
the United States Housing Act of 1937.
‘‘(6) LOW-INCOME FAMILIES AND VERY LOW-IN-
COME FAMILIES.—The terms ‘low-income families’
and ‘very low-income families’ shall have the mean-
ings given the terms in section 3(b) of the United
States Housing Act of 1937.
‘‘(7) PREEXISTING
TENANT.—The term ‘pre-
existing tenant’ means, with respect to a multifamily
housing project, a family that—
‘‘(A) resides in a unit in the project; and
‘‘(B) immediately before foreclosure or ac-
quisition of the project by the Secretary, was
residing in a unit in the project.
‘‘(8) MARKET AREA.—The term ‘market area’
means a market area determined by the Secretary
for purposes of establishing fair market rentals
under section 8(c) of the United States Housing Act
of 1937.
‘‘(9) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(c) MANAGEMENT
OR
DISPOSITION
OF
PROP-
ERTY.—
‘‘(1) DISPOSITION TO PURCHASERS.—The Sec-
retary may, in carrying out this section, dispose of
a multifamily housing project owned by the Sec-
retary on a negotiated, competitive bid, or other
basis, on such terms as the Secretary deems appro-
priate considering the low-income character of the
project and the market area in which the project is
located and the requirements of subsection (a), to a
purchaser determined by the Secretary to be capable
of—
‘‘(A) satisfying the conditions of the dis-
position;
‘‘(B) implementing a sound financial and
physical management program that is designed
to enable the project to meet anticipated oper-
ating and repair expenses to ensure that the
project will remain in decent, safe, and sanitary
condition;
‘‘(C) responding to the needs of the ten-
ants and working cooperatively with tenant or-
ganizations;
‘‘(D) providing adequate organizational,
staff, and financial resources to the project; and
‘‘(E) meeting such other requirements as
the Secretary may determine.
‘‘(2) CONTRACTING
FOR
MANAGEMENT
SERV-
ICES.—The Secretary may, in carrying out this sec-
tion—
‘‘(A) contract for management services for
a multifamily housing project that is owned by
the Secretary (or for which the Secretary is
mortgagee in possession), on a negotiated, com-
petitive bid, or other basis at a price deter-
mined by the Secretary to be reasonable, with
a manager the Secretary has determined is ca-
pable of—
‘‘(i) implementing a sound financial
and physical management program that is
designed to enable the project to meet an-
ticipated operating and maintenance ex-
penses to ensure that the project will re-
main in decent, safe, and sanitary condi-
tion;
‘‘(ii) responding to the needs of the
tenants and working cooperatively with
tenant organizations;
‘‘(iii) providing adequate organiza-
tional, staff, and other resources to imple-
ment a management program determined
by the Secretary; and
‘‘(iv) meeting such other requirements
as the Secretary may determine;
‘‘(B) require the owner of a multifamily
housing project that is subject to a mortgage
held by the Secretary to contract for manage-
ment services for the project in the manner de-
scribed in subparagraph (A); and
‘‘(C) contract for management of such
properties with nonprofit organizations and
public agencies, including public housing au-
thorities.
‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—
‘‘(1) HOUSING PROJECTS OWNED BY THE SEC-
RETARY.—In the case of multifamily housing
projects that are owned by the Secretary (or for
which the Secretary is mortgagee in possession), the
Secretary shall—
‘‘(A) to the greatest extent possible, main-
tain all such occupied projects in a decent, safe,
and sanitary condition;
‘‘(B) to the greatest extent possible, main-
tain full occupancy in all such projects; and
‘‘(C) maintain all such projects for pur-
poses of providing rental or cooperative hous-
ing.
‘‘(2) HOUSING PROJECTS SUBJECT TO A MORT-
GAGE HELD BY SECRETARY.—In the case of any
multifamily housing project that is subject to a
mortgage held by the Secretary, the Secretary shall
require the owner of the project to carry out the re-
quirements of paragraph (1).
‘‘(3) HOUSING
STANDARDS.—In disposing of
any multifamily housing project under this section,
the Secretary shall enter into an agreement with the
purchaser under which the purchaser agrees that the
project will be rehabilitated so that it is in compli-
ance with, and will be maintained in compliance
with, any standards under applicable State or local
laws, rules, ordinances, or regulations relating to the
physical condition of the housing and any such
standards established by the Secretary.
‘‘(e) REQUIRED ASSISTANCE.—In disposing of any
multifamily housing property under this section, the Sec-
retary shall take, separately or in combination, one or
more of the following actions:
‘‘(1) CONTRACT WITH OWNER FOR PROJECT-
BASED
ASSISTANCE.—In the case of multifamily
housing projects that are acquired by a purchaser
other than the Secretary at foreclosure or after sale
by the Secretary, the Secretary may enter into con-
tracts under section 8 of the United States Housing
Act of 1937 (to the extent budget authority is avail-
able) with owners of the projects, subject to the fol-
lowing requirements:
‘‘(A) SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED
PROJECTS
RECEIVING
MORTGAGE-RE-
LATED
ASSISTANCE.—In the case of a sub-
sidized or formerly subsidized project referred
to in subparagraphs (A) through (C) of sub-
section (b)(2)—
‘‘(i) the contract shall be sufficient to
assist at least all units covered by an as-
sistance contract under any of the authori-
ties referred to in subsection (b)(2)(D) be-
fore acquisition, unless the Secretary acts
pursuant to the provisions of subparagraph
(C);
‘‘(ii) the contract shall provide that,
when a vacancy occurs in any unit in the
project requiring project-based rental as-
sistance pursuant to this subparagraph
that is occupied by a family who is not eli-
gible for assistance under such section 8,
the owner shall lease the available unit to
a family eligible for assistance under such
section 8; and
‘‘(iii) the Secretary shall take actions
to ensure that any unit in any such project
that does not otherwise receive project-
based assistance under this subparagraph
remains available and affordable for the re-
maining useful life of the project, as de-
fined by the Secretary; to carry out this
clause, the Secretary may require pur-
chasers to establish use or rent restrictions
maintaining the affordability of such units.
‘‘(B) SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED PROJECTS RECEIVING RENTAL ASSIST-
ANCE.—In the case of a subsidized or formerly
subsidized project referred to in subsection
(b)(2)(D) that is not subject to subparagraph
(A)—
‘‘(i) the contract shall be sufficient to
assist at least all units in the project that
are covered, or were covered immediately
before foreclosure on or acquisition of the
project by the Secretary, by an assistance
contract under any of the provisions re-
ferred to in such subsection, unless the
Secretary acts pursuant to provisions of
subparagraph (C); and
‘‘(ii) the contract shall provide that,
when a vacancy occurs in any unit in the
project requiring project-based rental as-
sistance pursuant to this subparagraph
that is occupied by a family who is not eli-
gible for assistance under such section 8,
the owner shall lease the available unit to
a family eligible for assistance under such
section 8.
‘‘(C) EXCEPTIONS.—In lieu of providing
project-based assistance under subparagraph
(A)(i) or (B)(i) for a project, the Secretary may
require certain units in unsubsidized projects to
contain use restrictions providing that such
units will be available to and affordable by very
low-income families for the remaining useful life
of the project, as defined by the Secretary, if—
‘‘(i) the Secretary provides an in-
crease in project-based assistance for very
low-income 
persons 
for 
units 
within
unsubsidized projects located within the
same market area as the project otherwise
required to be assisted with project-based
assistance under subparagraph (A) or (B)
that is at least equivalent to the units oth-
erwise required to be so assisted; and
‘‘(ii) upon disposition of the project,
low-income families residing in units other-
wise required to be assisted with project-
based assistance under subparagraph (A)
or (B) receive tenant-based assistance
under such section 8.
‘‘(D) UNSUBSIDIZED PROJECTS.—Notwith-
standing actions taken pursuant to subpara-
graph (C), in the case of unsubsidized projects,
the contract shall be sufficient to provide—
‘‘(i) project-based rental assistance for
all units that are covered, or were covered
immediately before foreclosure or acquisi-
tion, by an assistance contract under—
‘‘(I) the new construction and
substantial 
rehabilitation 
program
under section 8(b)(2) of the United
States Housing Act of 1937 (as in ef-
fect before October 1, 1983);
‘‘(II) the property disposition
program under section 8(b) of such
Act;
‘‘(III) the project-based certifi-
cate program under section 8 of such
Act;
‘‘(IV) the moderate rehabilitation
program under section 8(e)(2) of such
Act;
‘‘(V) section 23 of such Act (as
in effect before January 1, 1975);
‘‘(VI) the rent supplement pro-
gram under section 101 of the Hous-
ing and Urban Development Act of
1965; or
‘‘(VII) section 8 of the United
States Housing Act of 1937, following
conversion from assistance under sec-
tion 101 of the Housing and Urban
Development Act of 1965; and
‘‘(ii) tenant-based assistance under
section 8 of the United States Housing Act
of 1937 for families that are preexisting
tenants of the project in units that, imme-
diately before foreclosure or acquisition of
the project by the Secretary, were covered
by an assistance contract under the loan
management set-aside program under sec-
tion 8(b) of the United States Housing Act
of 1937 at such time.
‘‘(2) ANNUAL CONTRIBUTION CONTRACTS FOR
TENANT-BASED ASSISTANCE.—In the case of multi-
family housing projects that are acquired by a pur-
chaser other than the Secretary at foreclosure or
after sale by the Secretary, the Secretary may enter
into annual contribution contracts with public hous-
ing agencies to provide tenant-based assistance
under section 8 of the United States Housing Act of
1937 on behalf of all low-income families who, on
the date that the project is acquired by the pur-
chaser, reside in the project and are eligible for such
assistance, subject to the following requirements:
‘‘(A) REQUIREMENT
OF
SUFFICIENT
AF-
FORDABLE HOUSING IN AREA.—The Secretary
may not take action under this paragraph un-
less the Secretary determines that there is
available in the area an adequate supply of hab-
itable, affordable housing for very low-income
families and other low-income families.
‘‘(B) LIMITATION
FOR
SUBSIDIZED
AND
FORMERLY
SUBSIDIZED
PROJECTS.—The Sec-
retary may not take actions under this para-
graph in connection with units in subsidized or
formerly subsidized projects for more than 10
percent of the aggregate number of units in
such projects disposed of by the Secretary an-
nually.
‘‘(C) PROVISION
OF
PROJECT-BASED
AS-
SISTANCE UNDER CHANGED CIRCUMSTANCES.—
The Secretary shall, to the extent such amounts
are available, provide project-based assistance
under section 8 of the United States Housing
Act of 1937 for any units in a project for which
the Secretary has provided tenant-based assist-
ance under this paragraph if, and only to the
extent that, the owner demonstrates to the sat-
isfaction of the Secretary within 24 months
after the date of acquisition by the owner
that—
‘‘(i) the provision of such project-
based assistance (I) is necessary to main-
tain the financial viability of the project
because of changes occurring after such
acquisition that are beyond the control of
the owner, and (II) may reasonably be ex-
pected to maintain such financial viability;
or
‘‘(ii) sufficient habitable, affordable
housing for very low-income families and
other low-income families is not available
in the market area in which the project is
located.
Assistance provided pursuant to this subpara-
graph shall have a term of not more than 5
years.
‘‘(3) OTHER ASSISTANCE.—
‘‘(A) IN
GENERAL.—In accordance with
the authority provided under the National
Housing Act, the Secretary may reduce the sell-
ing price, apply use or rent restrictions on cer-
tain units, or provide other financial assistance
to the owners of multifamily housing projects
that are acquired by a purchaser other than the
Secretary at foreclosure, or after sale by the
Secretary, on terms that ensure that—
‘‘(i) at least the units in the project
otherwise required to receive project-based
assistance pursuant to subparagraphs (A),
(B), or (D) of paragraph (1) are available
to and affordable by low-income persons;
and
‘‘(ii) for the remaining useful life of
the project, as defined by the Secretary,
there shall be in force such use or rent re-
strictions as the Secretary may prescribe.
‘‘(B) VERY LOW-INCOME TENANTS.—If, as
a result of actions taken pursuant to this para-
graph, the rents charged to any very low-income
families residing in the project who are other-
wise required (pursuant to subparagraph (A),
(B), or (D) of paragraph (1)) to receive project-
based assistance under section 8 of the United
States Housing Act of 1937 exceed the amount
payable as rent under section 3(a) of the Unit-
ed States Housing Act of 1937, the Secretary
shall provide assistance under section 8 of such
Act to such families.
‘‘(4) TRANSFER FOR USE UNDER OTHER PRO-
GRAMS OF SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary may
transfer a multifamily housing project—
‘‘(i) to a public housing agency for use
of the project as public housing; or
‘‘(ii) to an entity eligible to own or op-
erate housing under assisted section 202 of
the Housing Act of 1959 or under section
811 of the Cranston-Gonzalez National Af-
fordable Housing Act for use as supportive
housing under either of such sections.
‘‘(B) REQUIREMENTS FOR AGREEMENT.—
An agreement providing for the transfer of a
project described in subparagraph (A) shall—
‘‘(i) contain such terms, conditions,
and limitations as the Secretary deter-
mines appropriate, including requirements
to ensure use of the project as public hous-
ing, supportive housing under section 202
of the Housing Act of 1959, or supportive
housing under section 811 of the Cran-
ston-Gonzalez National Affordable Housing
Act, as applicable; and
‘‘(ii) ensure that no tenant of the
project will be displaced as a result of ac-
tions taken under this paragraph.
‘‘(f) DISCRETIONARY ASSISTANCE.—In addition to
the actions taken under subsection (e) for a multifamily
housing project, the Secretary may take any of the follow-
ing actions:
‘‘(1) SHORT-TERM LOANS.—The Secretary may
provide a short-term loan to facilitate the sale of a
multifamily housing project to a nonprofit organiza-
tion or a public agency if—
‘‘(A) authority for such loans is provided
in advance in an appropriation Act;
‘‘(B) such loan has a term of not more
than 5 years;
‘‘(C) the Secretary determines, based upon
documentation provided to the Secretary, that
the borrower has obtained a commitment of
permanent financing to replace the short-term
loan from a lender who meets standards estab-
lished by the Secretary; and
‘‘(D) the terms of such loan is consistent
with prevailing practices in the marketplace or
the provision of such loan results in no cost to
the Government, as defined in section 502 of
the Congressional Budget Act of 1974.
‘‘(2) TENANT-BASED
ASSISTANCE.—The Sec-
retary may make available tenant-based assistance
under section 8 of the United States Housing Act of
1937 to very low-income families residing in a multi-
family housing project that do not otherwise qualify
for project-based assistance.
‘‘(3) ALTERNATIVE USES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, after providing notice to
and an opportunity to comment by existing ten-
ants, the Secretary may allow not more than—
‘‘(i) 10 percent of the total number of
units in multifamily housing projects that
are disposed of by the Secretary during
any 1-year period to be made available for
uses other than rental or cooperative uses,
including low-income homeownership op-
portunities, or in any particular project,
community space, office space for tenant
or housing-related service providers or se-
curity programs, or small business uses, if
such uses benefit the tenants of the
project; and
‘‘(ii) 5 percent of the total number of
units in multifamily housing projects that
are disposed of by the Secretary during
any 1-year period to be used in any man-
ner, if the Secretary and the unit of gen-
eral local government or area-wide govern-
ing body determine that such use will fur-
ther fair housing, community development,
or neighborhood revitalization goals.
‘‘(B) DISPLACEMENT
PROTECTION.—The
Secretary may take actions under subparagraph
(A) only if—
‘‘(i) tenant-based rental assistance
under section 8 of the United States Hous-
ing Act of 1937 is made available to each
eligible family residing in the project that
is displaced as a result of such actions; and
‘‘(ii) the Secretary determines that
sufficient habitable, affordable rental hous-
ing is available in the market area in which
the project is located to allow use of such
assistance.
‘‘(g) 
REQUIRED
ASSISTANCE
FOR
CERTAIN
PROJECTS.—In disposing under this section of multifam-
‘‘(i) CONTRACT
REQUIREMENTS.—Contracts for
project-based rental assistance under section 8 of the
United States Housing Act of 1937 provided pursuant to
this section shall be subject to the following requirements:
‘‘(1) CONTRACT
TERM.—The contract shall
have a term of 15 years, except that—
‘‘(A) the term may be less than 15 years
to the extent that the Secretary finds that,
based on the rental charges and financing for
the multifamily housing project to which the
contract relates, the financial viability of the
project can be maintained under a contract hav-
ing such a term;
‘‘(B) to the extent that units receive
project-based assistance for a contract term of
less than 15 years, the Secretary shall require
that the amount of rent payable by tenants of
the project for such units shall not exceed the
amount payable for rent under section 3(a) of
the United States Housing Act of 1937 for a
period of at least 15 years; and
‘‘(C) the term may be less than 15 years
if such assistance is provided—
‘‘(i) under a contract authorized
under section 6 of the HUD Demonstra-
tion Act of 1993; and
‘‘(ii) pursuant to a disposition plan
under this section for a project that is de-
termined by the Secretary to be otherwise
in compliance with this section.
‘‘(2) CONTRACT RENT.—
‘‘(A) IN
GENERAL.—The Secretary shall
establish contract rents for section 8 project-
based rental contracts issued under this section
at levels that provide sufficient amounts for the
necessary costs of rehabilitating and operating
the multifamily housing project and do not ex-
ceed 144 percent of the existing housing fair
market rentals for the market area in which the
project assisted under the contract is located.
‘‘(B) UP-FRONT GRANTS AND LOANS.—If
the Secretary determines that action under this
subparagraph is more cost-effective, the Sec-
retary may utilize the budget authority provided
for contracts issued under this section for
project-based assistance under section 8 of the
United States Housing Act of 1937 to (in addi-
tion to providing project-based section 8 rental
assistance)—
‘‘(i) provide up-front grants to non-
profit organizations or public housing
agencies for the necessary cost of rehabili-
tation; or
‘‘(ii) pay any cost to the Government,
as defined in section 502 of the Congres-
sional Budget Act of 1974, for loans made
pursuant to subsection (f)(1).
‘‘(j) DISPOSITION PLAN.—
‘‘(1) IN GENERAL.—Prior to the sale of a mul-
tifamily housing project that is owned by the Sec-
retary, the Secretary shall develop an initial disposi-
tion plan for the project that specifies the minimum
terms and conditions of the Secretary for disposition
of the project, the initial sales price that is accept-
able to the Secretary, and the assistance that the
Secretary plans to make available to a prospective
purchaser in accordance with this section. The initial
sales price shall be reasonably related to the in-
tended use of the property after sale, any rehabilita-
tion requirements for the project, the rents for units
in the project that can be supported by the market,
the amount of rental assistance available for the
project under section 8 of the United States Hous-
ing Act of 1937, and the occupancy profile of the
project.
‘‘(2) COMMUNITY AND TENANT INPUT.—In car-
rying out this section, the Secretary shall develop
procedures—
‘‘(A) to obtain appropriate and timely
input into disposition plans from officials of the
unit of general local government affected, the
community in which the project is situated, and
the tenants of the project; and
‘‘(B) to facilitate, where feasible and ap-
propriate, the sale of multifamily housing
projects to existing tenant organizations with
demonstrated capacity, to public or nonprofit
entities that represent or are affiliated with ex-
isting tenant organizations, or to other public
or nonprofit entities.
‘‘(3) TECHNICAL
ASSISTANCE.—To carry out
the procedures developed under paragraph (2), the
Secretary may provide technical assistance, directly
or indirectly, and may use amounts available for
technical assistance under the Emergency Low In-
come Housing Preservation Act of 1987, subtitle C
of the Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990, subtitle B of title
IV of the Cranston-Gonzalez National Affordable
Housing Act, or this section, for the provision of
technical assistance under this paragraph. Recipients
of technical assistance funding under the provisions
referred to in this paragraph shall be permitted to
provide technical assistance to the extent of such
funding under any of such provisions or under this
paragraph, notwithstanding the source of the fund-
ing.
‘‘(k) RIGHT OF FIRST REFUSAL FOR LOCAL AND
STATE GOVERNMENT AGENCIES.—
‘‘(1) 
NOTIFICATION
OF
ACQUISITION
OF
TITLE.—Not later than 30 days after acquiring title
to a multifamily housing project, the Secretary shall
notify the unit of general local government (which,
for purposes of this subsection, shall include any
public housing agency) for the area in which the
project is located and the State agency or agencies
designated by the Governor of the State in which the
project is located of such acquisition.
‘‘(2) RIGHT OF FIRST REFUSAL.—During the
period beginning upon acquisition of title to a multi-
family housing project and ending 45 days after
completion of notification under paragraph (1), the
Secretary may offer to sell and may sell the project
only to the unit of general local government or the
designated State agency.
‘‘(3) EXPRESSION OF INTEREST.—The unit of
general local government or designated State agency
may submit to the Secretary a preliminary expres-
sion of interest in a project not later than 45 days
after receiving notification from the Secretary under
paragraph (1) regarding the project. The Secretary
may take such actions as may be necessary to re-
quire the unit of general local government or des-
ignated State agency to substantiate such interest.
‘‘(4) TIMELY
EXPRESSION
OF
INTEREST.—If
the unit of general local government or designated
State agency has submitted an expression of interest
in a project before the expiration of the 45-day pe-
riod referred to in paragraph (3) and has substan-
tiated such interest if requested, the Secretary, upon
approval of a disposition plan for the project, shall—
‘‘(A) notify the unit of general local gov-
ernment and designated State agency of the
terms and conditions of the disposition plan;
and
‘‘(B) provide that, for 90 days after the
date of such notification, only the unit of gen-
term affordability for low-income persons. The Sec-
retary may reduce the initial sales price in exchange
for the extension of low-income affordability restric-
tions beyond the period of assistance contemplated
by the attachment of assistance pursuant to sub-
section (i)(1) and in order to facilitate affordable
rents.
‘‘(7) FAILURE TO SELL TO LOCAL OR STATE
GOVERNMENT
AGENCY.—If the Secretary and the
unit of general local government or designated State
agency cannot reach agreement on an offer for pur-
chase of a project within the 90-day period for the
project under paragraph (4)(B), the Secretary may
offer the project for sale to the general public.
‘‘(8) PURCHASE BY UNIT OF GENERAL LOCAL
GOVERNMENT
OR
DESIGNATED
STATE
AGENCY.—
Notwithstanding any other provision of law, a unit
of general local government (including a public hous-
ing agency) or designated State agency may pur-
chase a subsidized or formerly subsidized project in
accordance with this subsection.
‘‘(9) APPLICABILITY.—This subsection shall
apply to projects that are acquired on or after the
effective date of this subsection. With respect to
projects acquired before such effective date, the Sec-
retary may apply—
‘‘(A) the requirements of paragraphs (2)
and (3) of section 203(e) (as in effect imme-
diately before the effective date of this sub-
section); or
‘‘(B) the requirements of paragraphs (1)
through (7) of this subsection, if—
‘‘(i) the Secretary gives the unit of
general local government or designated
State agency 45 days to express interest in
the project; and
‘‘(ii) the unit of general local govern-
ment or designated State agency expresses
interest in the project before the expiration
of the 45-day period, and substantiates
such interest if requested, within 90 days
from the date of notification of the terms
and conditions of the disposition plan to
make an offer to purchase the project.
‘‘(10) TRANSFER BY LOCAL OR STATE GOVERN-
MENT AGENCY PURCHASERS.—The Secretary shall
permit units of general local government and des-
ignated State agencies to transfer multifamily hous-
ing projects acquired under the right of first refusal
under this subsection to a private entity, but only if
the local government or State agency clearly identi-
fies its intention to transfer the project in the offer
to purchase the property accepted by the Secretary
under this subsection.
‘‘(l) DISPLACEMENT OF TENANTS AND RELOCATION
ASSISTANCE.—
‘‘(1) IN GENERAL.—Whenever tenants will be
displaced as a result of the disposition of, or repairs
to, a multifamily housing project that is owned by
the Secretary (or for which the Secretary is mortga-
gee in possession), the Secretary shall identify ten-
ants who will be displaced and shall notify all such
tenants of their pending displacement and of any re-
location assistance that may be available. In the case
of the disposition of tenants of a multifamily hous-
ing project that is not owned by the Secretary (and
for which the Secretary is not mortgagee in posses-
sion), the Secretary shall require the owner of the
project to carry out the requirements of this para-
graph.
‘‘(2) RIGHTS
OF
DISPLACED
TENANTS.—The
Secretary shall ensure for any such tenant (who con-
tinues to meet applicable qualification standards)
the right—
‘‘(A) to return, whenever possible, to a re-
paired unit;
‘‘(B) to occupy a unit in another multifam-
ily housing project owned by the Secretary;
‘‘(C) to obtain housing assistance under
the United States Housing Act of 1937; or
‘‘(D) to receive any other available reloca-
tion assistance as the Secretary determines to
be appropriate.
‘‘(m) MORTGAGE AND PROJECT SALES.—
‘‘(1) IN GENERAL.—The Secretary may not ap-
prove the sale of any loan or mortgage held by the
Secretary (including any loan or mortgage owned by
the Government National Mortgage Association) on
any subsidized project or formerly subsidized
project, unless such sale is made as part of a trans-
action that will ensure that such project will con-
tinue to operate at least until the maturity date of
such loan or mortgage, in a manner that will provide
rental housing on terms at least as advantageous to
existing and future tenants as the terms required by
the program under which the loan or mortgage was
made or insured prior to the assignment of the loan
or mortgage on such project to the Secretary.
‘‘(2) SALE OF CERTAIN PROJECTS.—The Sec-
retary may not approve the sale of any subsidized
project—
‘‘(A) that is subject to a mortgage held by
the Secretary, or
‘‘(B) if the sale transaction involves the
provision of any additional subsidy funds by the
Secretary or a recasting of the mortgage,
unless such sale is made as part of a transaction
that will ensure that the project will continue to op-
erate, at least until the maturity date of the loan or
mortgage, in a manner that will provide rental hous-
ing on terms at least as advantageous to existing
and future tenants as the terms required by the pro-
gram under which the loan or mortgage was made
or insured prior to the proposed sale of the project.
‘‘(3) MORTGAGE SALES TO STATE AND LOCAL
GOVERNMENTS.—Notwithstanding any provision of
law that requires competitive sales or bidding, the
Secretary may carry out negotiated sales of sub-
sidized or formerly subsidized mortgages held by the
Secretary, without the competitive selection of pur-
chasers or intermediaries, to units of general local
government or State agencies, or groups of investors
that include at least one such unit of general local
government or State agency, if the negotiations are
conducted with such agencies, except that—
‘‘(A) the terms of any such sale shall in-
clude the agreement of the purchasing agency
or unit of local government or State agency to
act as mortgagee or owner of a beneficial inter-
est in such mortgages, in a manner consistent
with maintaining the projects that are subject
to such mortgages for occupancy by the general
tenant group intended to be served by the appli-
cable mortgage insurance program, including,
to the extent the Secretary determines appro-
priate, authorizing such unit of local govern-
ment or State agency to enforce the provisions
of any regulatory agreement or other program
requirements applicable to the related projects;
and
‘‘(B) the sales prices for such mortgages
shall be, in the determination of the Secretary,
the best prices that may be obtained for such
mortgages from a unit of general local govern-
ment or State agency, consistent with the ex-
pectation and intention that the projects fi-
nanced will be retained for use under the appli-
cable mortgage insurance program for the life
of the initial mortgage insurance contract.
‘‘(4) 
SALE
OF
MORTGAGES
COVERING
UNSUBSIDIZED
PROJECTS.—Notwithstanding 
any
other provision of law, the Secretary may sell mort-
gages held on unsubsidized projects on such terms
and conditions as the Secretary may prescribe.
‘‘(n) REPORT TO CONGRESS.—Not later than June
1 of each year, the Secretary shall submit to the Congress
a report describing the status of multifamily housing
projects owned by or subject to mortgages held by the Sec-
retary. The report shall include—
‘‘(1) the name, address, and size of each
project;
‘‘(2) the nature and date of assignment of each
project;
‘‘(3) the status of the mortgage for each
project;
‘‘(4) the physical condition of each project;
‘‘(5) for each subsidized or formerly subsidized
project, an occupancy profile of the project, stating
the income, family size, race, and ethnic origin of
current residents and the rents paid by such resi-
dents;
‘‘(6) the proportion of units in each project that
are vacant;
‘‘(7) the date on which the Secretary became
mortgagee in possession of each project, if applica-
ble;
‘‘(8) the date and conditions of any foreclosure
sale for a project;
‘‘(9) the date of acquisition of each project by
the Secretary, if applicable;
‘‘(10) the date and conditions of any property
disposition sale for a project;
‘‘(11) a description of actions undertaken pur-
suant to this section, including a description of the
effectiveness of such actions and any impediments to
the disposition or management of multifamily hous-
ing projects;
‘‘(12) a description of any of the functions per-
formed in connection with this section that are con-
tracted out to public or private entities or to States;
and
‘‘(13) a description of the activities carried out
under subsection (k) during the preceding year.’’.
(c) CLARIFICATION OF FEDERAL PREFERENCES.—
(1) 
PUBLIC
HOUSING
TENANCY.—Section
6(c)(4)(A)(i) of the United States Housing Act of
1937 (42 U.S.C. 1437d(c)(4)(A)(i)) is amended by
inserting after ‘‘displaced’’ the following: ‘‘(including
displacement because of disposition of a multifamily
housing project under section 203 of the Housing
and 
Community 
Development 
Amendments 
of
1978)’’.
(2) 
SECTION
ASSISTANCE.—Section
8(d)(1)(A)(i) of the United States Housing Act of
1937 (42 U.S.C. 1437f(d)(1)(A)(i)) is amended by
inserting after ‘‘displaced’’ the following: ‘‘(including
displacement because of disposition of a multifamily
housing project under section 203 of the Housing
and 
Community 
Development 
Amendments 
of
1978)’’.
(d) DEFINITION OF OWNER.—Section 8(f)(1) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(f)(1)) is amended by inserting ‘‘an agency of the
Federal Government,’’ after ‘‘cooperative,’’.
(e) AMENDMENT
TO NATIONAL HOUSING ACT.—
Title V of the National Housing Act (12 U.S.C. 1731a
et seq.) is amended by adding at the end the following
new section:
‘‘PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY
HOUSING PROJECTS
‘‘SEC. 541. (a) AUTHORITY.—Notwithstanding any
other provision of law, if the Secretary is requested to ac-
cept assignment of a mortgage insured by the Secretary
that covers a multifamily housing project (as such term
is defined in section 203(b) of the Housing and Commu-
nity Development Amendments of 1978) and the Sec-
retary determines that partial payment would be less cost-
ly to the Federal Government than other reasonable alter-
natives for maintaining the low-income character of the
project, the Secretary may request the mortgagee, in lieu
of assignment, to—
‘‘(1) accept partial payment of the claim under
the mortgage insurance contract; and
‘‘(2) recast the mortgage, under such terms and
conditions as the Secretary may determine.
‘‘(b) REPAYMENT.—As a condition to a partial claim
payment under this section, the mortgagor shall agree to
repay to the Secretary the amount of such payment and
such obligation shall be secured by a second mortgage on
the property on such terms and conditions as the Sec-
retary may determine.’’.
(f) EFFECTIVE DATE.—The Secretary shall issue in-
terim regulations necessary to implement the amendments
made by subsections (b) through (d) not later than 90
days after the date of the enactment of this Act. Such
interim regulations shall take effect upon issuance and in-
vite public comment on the interim regulations. The Sec-
retary shall issue final regulations to implement such
amendments after opportunity for such public comment,
but not later than 12 months after the date of issuance
of such interim regulations.
SEC. 6002. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act is
amended—
(1) in paragraph (2)(C), by inserting after ‘‘re-
financed’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate
as permitted by subparagraph (E) or paid by the
Secretary as authorized by paragraph (4)(B)’’;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by inserting after ‘‘otherwise)’’ the follow-
ing: ‘‘and the mortgagee (with respect to the
amount described in subparagraph (A))’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortga-
gee’’; and
(3) by amending paragraph (5) to read as fol-
lows:
‘‘(5) The Secretary shall use amounts of budget au-
thority recaptured from assistance payments contracts re-
lating to mortgages that are being refinanced for assist-
ance payments contracts with respect to mortgages in-
sured under this subsection. The Secretary may also make
such recaptured amounts available for incentives under
paragraph (4)(A) and the costs incurred in connection
with the refinancing under paragraph (4)(B). For pur-
poses of subsection (c)(3)(A), the amount of recaptured
budget authority that the Secretary commits for assist-
ance payments contracts relating to mortgages insured
under this subsection and for amounts paid under para-
graph (4) shall not be construed as unused.’’.
SEC. 6003. USE OF EMERGENCY ASSISTANCE FUNDS FOR
RESIDENCY IN MULTIFAMILY HOUSING DIS-
POSITION PROJECTS.
Section 203(f) of the Housing and Community Devel-
opment Amendments of 1978 (12 U.S.C. 1701z–11), as
amended by section 6001 of this Act, is further amended
by adding at the end the following new paragraph:
‘‘(4) EMERGENCY
ASSISTANCE
FUNDS.—The
Secretary may make arrangements with State agen-
cies and units of general local government of States
receiving emergency assistance under part A of title
IV of the Social Security Act for the provision of as-
sistance under such Act on behalf of eligible families
who would reside in any multifamily housing
projects.’’.
SEC. 6004. ADDITIONAL EMPLOYEES TO FACILITATE DIS-
POSITION OF FHA INVENTORY PROPERTIES.
Notwithstanding any other provision of law, during
fiscal years 1993, 1994, and 1995 amounts in the various
funds of the Federal Housing Administration otherwise
available to the Secretary of Housing and Urban Develop-
ment for non-overhead expenses associated with process-
ing, accounting, loan servicing, asset management, and
disposition services may be used by the Secretary for per-
sonnel compensation and benefits for temporary employees
of the Department of Housing and Urban Development
employed to manage, service, and dispose of single family
and multifamily properties insured by, assigned to, or
owned by the Secretary. The Secretary may employ not
more than 400 temporary employees at any one time using
amounts made available pursuant to this section, no such
employee may be employed in a temporary position pursu-
ant to this section for a period in excess of 2 years, and
such employees shall not be considered for purposes of any
personnel ceiling applicable to the Department of Housing
and Urban Development or any unit therein or any per-