H. R. 2099—30
tion. Under the demonstration, notwithstanding any provision of
the United States Housing Act of 1937 except as provided in sub-
section (e), an agency may combine operating assistance provided
under section 9 of the United States Housing Act of 1937, mod-
ernization 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 transition 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 dem-
onstration—
(1) shall request authority to combine assistance 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 proposed program, and comments from
current and prospective residents who would be affected, and
that includes criteria for—
(A) families to be assisted, which shall require that
at least 75 percent of the families assisted 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
determined by the Secretary with adjustments for smaller
and larger families, except that the Secretary may establish
income ceilings higher or 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 employment and self-sufficiency
by participating families, consistent with the purpose of
this demonstration, such as by excluding some or all of
a family’s earned income for purposes of determining rent;
(C) continuing to assist substantially the same total
number of eligible low-income families as would have been
served had the amounts not been combined;
(D) maintaining a comparable mix of families (by fam-
ily size) as would have been provided had the amounts
not been used under the demonstration; and
(E) assuring that housing assisted under the dem-
onstration program meets housing quality standards estab-
lished or approved by the Secretary; and
(4) may request assistance for training and technical assist-
ance to assist with design of the demonstration and to partici-
pate in a detailed evaluation.
(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 demonstration, the relative perform-
H. R. 2099—31
ance by an agency under the public housing management assess-
ment 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 housing notwithstanding any
use of the housing under this demonstration.
(2) Section 12 of such Act shall apply to housing 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 COM-
PREHENSIVE GRANT PROGRAM ALLOCATIONS.—The amount of assist-
ance 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.
(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 report shall—
(A) document the use of funds made available 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 assisted activities
in addressing the objectives of this part.
(3) ACCESS TO DOCUMENTS BY THE SECRETARY.—The Sec-
retary shall have access for the purpose of audit and examina-
tion to any books, documents, papers, and records that are
pertinent to assistance in connection with, and the require-
ments of, this section.
(4) ACCESS
TO
DOCUMENTS
BY
THE
COMPTROLLER
GEN-
ERAL.—The Comptroller General of the United States, or any
of the duly authorized representatives of the Comptroller Gen-
eral, 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
REPRESENTA-
TIVES.—In making assessments throughout the demonstration,
the Secretary shall consult with representatives of public hous-
ing agencies and residents.
(2) REPORT TO CONGRESS.—Not later than 180 days after
the end of the third year of the demonstration, the Secretary
shall submit to the Congress a report evaluating the programs
carried out under the demonstration. The report shall also
include findings and recommendations for any appropriate
legislative action.
(i) FUNDING FOR TECHNICAL ASSISTANCE AND EVALUATION.—
From amounts appropriated for assistance under section 14 of the
H. R. 2099—32
United States Housing Act of 1937 for fiscal years 1996, 1997,
and 1998, the Secretary 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 assist 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 implementing the approved program; and
(2) to conduct detailed evaluations of the activities of the
public housing agencies under paragraph (1)(B), directly or
by contract.
REPEAL OF PROVISIONS REGARDING INCOME DISREGARDS
SEC. 207. (a) MAXIMUM
ANNUAL
LIMITATION
ON
RENT
INCREASES RESULTING FROM EMPLOYMENT.—Section 957 of the
Cranston-Gonzalez National Affordable Housing Act is hereby
repealed, retroactive to November 28, 1990, and shall be of no
effect.
(b) ECONOMIC INDEPENDENCE.—Section 923 of the Housing and
Community Development Act of 1992 is hereby repealed, retroactive
to October 28, 1992, and shall be of no effect.
EXTENSION OF MULTIFAMILY HOUSING FINANCE PROGRAM
SEC. 208. (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 U.S.C. 1707 note) is
amended by striking ‘‘on not to exceed 30,000 units over fiscal
years 1993, 1994, and 1995’’ and inserting ‘‘on not more than
10,000 units during fiscal year 1996’’.
FORECLOSURE OF HUD-HELD MORTGAGES THROUGH THIRD PARTIES
SEC. 209. 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 respon-
sibilities of the Secretary in connection with the foreclosure of
mortgages held by the Secretary under the National Housing Act.
RESTRUCTURING OF THE HUD MULTIFAMILY MORTGAGE PORTFOLIO
THROUGH STATE HOUSING FINANCE AGENCIES.
SEC. 210. 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 finance 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.
H. R. 2099—33
TRANSFER OF SECTION 8 AUTHORITY
SEC. 211. Section 8 of the United States Housing Act of 1937
is amended by adding the following new subsection at the end:
‘‘(bb) TRANSFER OF BUDGET AUTHORITY—If an assistance con-
tract under this section, other than a contract for tenant-based
assistance, is terminated or is not renewed, 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. 212. 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 Appropriations Act, 1995 (Public Law 103–
327; 108 Stat. 2316), the amendments to section 223(a)(7) of the
National Housing Act made by the 15th paragraph of such Act
shall be effective during fiscal year 1996 and thereafter.
FHA MULTIFAMILY DEMONSTRATION AUTHORITY
SEC. 213. (a) On and after October 1, 1995, and before October
1, 1997, the Secretary of Housing and Urban Development shall
initiate a demonstration program with respect to multifamily
projects whose owners agree to participate and whose mortgages
are insured under the National 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 operating 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
property owner, tenant-based assistance, while taking into account
the need for assistance of low- and very low-income families in
such projects. In carrying out this demonstration, the Secretary
may use arrangements with third parties, under which the Sec-
retary may provide for the assumption by the third parties (by
delegation, contract, or otherwise) of some or all of the functions,
obligations, and benefits of the Secretary.
(1) GOALS.—The Secretary of Housing and Urban Develop-
ment shall carry out the demonstration 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—