I
103D CONGRESS
2D SESSION
H. R. 5279
To promote a new urban agenda, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 7, 1994
Mr. SHAYS (for himself, Mr. BORSKI, Ms. MOLINARI, Mr. RIDGE, and Mr.
SANTORUM) introduced the following bill; which was referred jointly to
the Committees on Government Operations, Foreign Affairs, Public
Works and Transportation, Armed Services, Ways and Means, Rules,
Banking, Finance and Urban Affairs, and Energy and Commerce
A BILL
To promote a new urban agenda, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘New Urban Agenda Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—FEDERAL COMMITMENT TO URBAN ECONOMIC
DEVELOPMENT
Sec. 101. Federal purchases from businesses in empowerment zones, enterprise
communities, and enterprise zones.
Sec. 102. Minimum allocation of foreign assistance for purchase of certain
United States goods.
Sec. 103. Preference for location of manufacturing technology outreach centers
in urban areas.
Sec. 104. Preference for construction and improvement of Federal facilities in
distressed urban areas.
Sec. 105. Definitions.
TITLE II—TAX INCENTIVES TO STIMULATE URBAN ECONOMIC
DEVELOPMENT.
Sec. 201. Treatment of rehabilitation credit under passive activity limitations.
Sec. 202. Rehabilitation credit allowed to offset portion of alternative minimum
tax.
Sec. 203. Commercial industrial development bonds.
Sec. 204. Increase in amount of qualified small issue bonds permitted for facili-
ties to be used by related principal users.
Sec. 205. Simplification of arbitrage interest rebate waiver.
TITLE III—COMMUNITY REGULATORY RELIEF
Sec. 301. Findings and purpose.
Sec. 302. Federal funding requirement.
Sec. 303. Duties of the director.
Sec. 304. Effect of subsequent enactments.
Sec. 305. Definitions.
TITLE IV—COMMUNITY-BASED HOUSING DEVELOPMENT
Sec. 401. Section 8 rent subsidies.
Sec. 402. Block grant study.
Sec. 403. Demolition and disposition of public housing.
TITLE V—RESPONSE TO URBAN ENVIRONMENTAL CHALLENGES
Subtitle A—Environmental Cleanup
Sec. 501. Exemption from liability for local governments that are owners or op-
erators of facilities in distressed urban areas.
Sec. 502. Standards for remediation in distressed urban areas.
Subtitle B—Environmental-Economic Recovery
Sec. 511. Findings.
Sec. 512. Definitions.
Sec. 513. Loan authority.
Sec. 514. Facility.
Sec. 515. Reinvestment of savings.
Sec. 516. Report to Congress.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) cities in the United States have been facing
an economic downhill trend in the past several years;
and
(2) a new approach to help such cities prosper
is necessary.
(b) PURPOSES.—It is the purpose of this Act to—
(1) provide various incentives for the economic
growth of cities in the United States;
(2) provide an economic agenda designed to re-
verse current urban economic trends; and
(3) revitalize the jobs and tax base of such
cities without significant new Federal outlays.
TITLE 
I—FEDERAL 
COMMIT-
MENT TO URBAN ECONOMIC
DEVELOPMENT
SEC. 101. FEDERAL PURCHASES FROM BUSINESSES IN
EMPOWERMENT ZONES, ENTERPRISE COM-
MUNITIES, AND ENTERPRISE ZONES.
(a) REQUIREMENTS.—The Office of Federal Procure-
ment Policy Act (41 U.S.C. 401 et seq.) is amended by
adding at the end the following new section:
‘‘PURCHASES
FROM
BUSINESSES
IN
EMPOWERMENT
ZONES, ENTERPRISE
COMMUNITIES, AND
ENTER-
PRISE ZONES
‘‘SEC. 29. (a) MINIMUM
PURCHASE
REQUIRE-
MENT.—Not less than 15 percent of the total amount ex-
pended by executive agencies for the purchase of goods
in a fiscal year shall be expended for the purchase of goods
from businesses located in empowerment zones, enterprise
communities, or enterprise zones.
‘‘(b) RECYCLED PRODUCTS.—To the maximum ex-
tent practicable consistent with applicable law, the head
of an executive agency shall purchase recycled products
that meet the needs of the executive agency from busi-
nesses located in empowerment zones, enterprise commu-
nities, or enterprise zones.
‘‘(c) REGULATIONS.—The Federal Acquisition Regu-
lations shall include provisions that ensure the attainment
of the minimum purchase requirement set out in sub-
section (a).
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘empowerment zone’ means a
zone designated as an empowerment zone pursuant
to subchapter U of chapter 1 of the Internal Reve-
nue Code of 1986 (26 U.S.C. 1391 et seq.).
‘‘(2) The term ‘enterprise community’ means a
community designated as an enterprise community
pursuant to subchapter U of chapter 1 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 1391 et seq.).
‘‘(3) The term ‘enterprise zone’ has the mean-
ing given such term in section 701(a)(1) of the
Housing and Community Development Act of 1987
(42 U.S.C. 11501(a)(1)).’’.
(b) EFFECTIVE DATE.—Section 29 of the Office of
Federal Procurement Policy Act, as added by subsection
(a), shall take effect on the date of the enactment of this
Act and shall apply with respect to fiscal years beginning
after September 30, 1994.
SEC. 102. MINIMUM ALLOCATION OF FOREIGN ASSISTANCE
FOR PURCHASE OF CERTAIN UNITED STATES
GOODS.
(a) ALLOCATION OF ASSISTANCE.—Notwithstanding
any other provision of law, effective beginning with fiscal
year 1995, not less than 15 percent of United States as-
sistance provided in a fiscal year shall be provided in the
form of credits which may only be used for the purchase
of United States goods produced, manufactured, or assem-
bled in empowerment zones, enterprise communities, or
enterprise zones within the United States.
(b) UNITED STATES ASSISTANCE.—As used in this
section, the term ‘‘United States assistance’’ means—
(1) any assistance under the Foreign Assistance
Act of 1961;
(2) sales, or financing of sales under the Arms
Export Control Act; and
(3) assistance and other activities under the
Support for East European Democracy (SEED) Act
of 1989 (Public Law 101–179, as amended).
SEC. 103. PREFERENCE FOR LOCATION OF MANUFACTUR-
ING TECHNOLOGY OUTREACH CENTERS IN
URBAN AREAS.
(a) DESIGNATION.—In designating an organization
as a Manufacturing Technology Outreach Center under
paragraph (1) of section 304(c) of the Stevenson-Wydler
Technology Innovation Act of 1980, the Secretary of Com-
merce shall, to the maximum extent practicable, designate
organizations that are located in empowerment zones, en-
terprise communities, or enterprise zones.
(b) FINANCIAL ASSISTANCE.—In utilizing a competi-
tive, merit-based review process to determine the Manu-
facturing Technology Outreach Centers to which to pro-
vide financial assistance under paragraph (3) of such sec-
tion, the Secretary shall give such additional preference
to centers located in empowerment zones, enterprise com-
munities, and enterprise zones as the Secretary deter-
mines appropriate in order to ensure the continuing exist-
ence of such centers in such zones.
SEC. 104. PREFERENCE FOR CONSTRUCTION AND IM-
PROVEMENT OF FEDERAL FACILITIES IN DIS-
TRESSED URBAN AREAS.
(a) PREFERENCE.—Notwithstanding any other provi-
sion of law, in determining the location for the construc-
tion of a new facility of a department or agency of the
Federal Government, in determining to improve an exist-
ing facility (including an improvement in lieu of such con-
struction), or in determining the location to which to relo-
cate functions of a department or agency, the head of the
department or agency making the determination shall take
affirmative action to construct or improve the facility, or
to relocate the functions, in a distressed urban area.
(b) URBAN IMPACT STATEMENT.—A determination
to construct a new facility of a department or agency of
the Federal Government, to improve an existing facility,
or to relocate the functions of a department or agency may
not be made until the head of the department or agency
making the determination prepares and submits to the
President a report that—
(1) in the case of a facility to be constructed—
(A) identifies at least one distressed urban
area that is an appropriate location for the fa-
cility;
(B) describes the costs and benefits arising
from the construction and utilization of the fa-
cility in the area, including the effects of such
construction and utilization on the rate of un-
employment in the area; and
(C) describes the effect on the economy of
the area of the closure or consolidation, if any,
of Federal facilities located in the area during
the 10-year period ending on the date of the re-
port, including the total number of Federal and
non-Federal employment positions terminated
in the area as a result of such closure or con-
solidation;
(2) in the case of a facility to be improved that
is not located in a distressed urban area—
(A) identifies at least one facility located in
a distressed urban area that would serve as an
appropriate alternative location for the facility;
(B) describes the costs and benefits arising
from the improvement and utilization of the fa-
cility located in such area as an alternative lo-
cation for the facility to be improved, including
the effect of the improvement and utilization of
the facility so located on the rate of unemploy-
ment in such area; and
(C) describes the effect on the economy of
such area of the closure or consolidation, if any,
of Federal facilities located in such area during
the 10-year period ending on the date of the re-
port, including the total number of Federal and
non-Federal employment positions terminated
in such area as a result of such closure or con-
solidation;
(3) in the case of a facility to be improved that
is located in a distressed urban area—
(A) describes the costs and benefits arising
from the improvement and continuing utiliza-
tion of the facility in the area, including the ef-
fect of such improvement and continuing utili-
zation on the rate of unemployment in the area;
and
(B) describes the effect on the economy of
the area of the closure or consolidation, if any,
of Federal facilities located in the area during
the 10-year period ending on the date of the re-
port, including the total number of Federal and
non-Federal employment positions terminated
in the area as a result of such closure or con-
solidation; or
(4) in the case of a relocation of functions—
(A) identifies at least one distressed urban
area that would serve as an appropriate loca-
tion for the carrying out of the functions;
(B) describes the costs and benefits arising
from carrying out the functions in the area, in-
cluding the effect of carrying out the functions
on the rate of unemployment in the area; and
(C) describes the effect on the economy of
the area of the closure or consolidation, if any,
of Federal facilities located in the area during
the 10-year period ending on the date of the re-
port, including the total number of Federal and
non-Federal employment positions terminated
in the area as a result of such closure or con-
solidation.
(c) APPLICABILITY TO DEPARTMENT OF DEFENSE
FACILITIES.—The requirements set forth in subsections
(a) and (b) shall apply to a determination to construct
or improve any facility of the Department of Defense, or
to relocate any functions of the Department, unless the
President determines that the waiver of the application of
such requirements to the facility, or to such relocation,
is in the national interest.
(d) DEFINITION.—In this section, the term ‘‘dis-
tressed urban area’’ means any city having a population
of more than 100,000 that meets (as determined by the
Secretary of Housing and Urban Development) the quali-
fications for a distressed community that are otherwise es-
tablished for large cities and urban counties under section
570.452(c) of title 24, Code of Federal Regulations.
SEC. 105. DEFINITIONS.
As used in this title:
(1) The term ‘‘empowerment zone’’ means a
zone designated as an empowerment zone pursuant
to subchapter U of chapter 1 of the Internal Reve-
nue Code of 1986 (26 U.S.C. 1391 et seq.).
(2) The term ‘‘enterprise community’’ means a
community designated as an enterprise community
pursuant to subchapter U of chapter 1 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 1391 et seq.).
(3) The term ‘‘enterprise zone’’ has the mean-
ing given such term in section 701(a)(1) of the
Housing and Community Development Act of 1987
(42 U.S.C. 11501(a)(1)).
TITLE II—TAX INCENTIVES TO
STIMULATE 
URBAN 
ECO-
NOMIC DEVELOPMENT
SEC. 201. TREATMENT OF REHABILITATION CREDIT UNDER
PASSIVE ACTIVITY LIMITATIONS.
(a) GENERAL RULE.—Paragraphs (2) and (3) of sec-
tion 469(i) of the Internal Revenue Code of 1986 (relating
to $25,000 offset for rental real estate activities) are
amended to read as follows:
‘‘(2) DOLLAR LIMITATIONS.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the aggregate
amount to which paragraph (1) applies for any
taxable year shall not exceed $25,000 reduced
(but not below zero) by 50 percent of the
amount (if any) by which the adjusted gross in-
come of the taxpayer for the taxable year ex-
ceeds $100,000.
‘‘(B) PHASEOUT
NOT
APPLICABLE
TO
LOW-INCOME HOUSING CREDIT.—In the case of
the portion of the passive activity credit for any
taxable year which is attributable to any credit
determined under section 42—
‘‘(i) subparagraph (A) shall not apply,
and
to achieve their responsibilities under State and local
law.
(b) PURPOSE.—The purpose of this title is to require
that the Federal Government pays the total amount of di-
rect costs incurred by State and local governments in com-
plying with certain Federal mandates which take effect on
or after the date of the enactment of this title under a
Federal statute or regulation.
SEC. 302. FEDERAL FUNDING REQUIREMENT.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, any requirement under a Federal statute or
regulation that creates a Federal mandate shall apply to
the State or local government only if all funds necessary
to pay the direct costs incurred by the State or local gov-
ernment in conducting the activity are provided by the
Federal Government for the fiscal year in which the direct
cost is incurred.
(b) APPLICATION.—This section shall apply only to
requirements which take effect on or after the date of the
enactment of this title.
SEC. 303. DUTIES OF THE DIRECTOR.
(a) FISCAL NOTE.—The Director shall prepare, to
accompany each bill, resolution or conference report re-
ported by any committee of the House of Representatives
or the Senate or considered on the floor of either House,