IB
Union Calendar No. 404
107TH CONGRESS
2D SESSION
H. R. 3995
[Report No. 107–640, Parts I and II]
To amend and extend certain laws relating to housing and community
opportunity, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 19, 2002
Mrs. ROUKEMA (for herself, Mr. GREEN of Wisconsin, Mr. OXLEY, Mr. AN-
DREWS, Mr. LUCAS of Kentucky, Mr. BEREUTER, Mr. BACHUS, Mr.
KING, Mr. NEY, Mr. BARR of Georgia, Mrs. KELLY, Mr. RILEY, Mr.
GARY G. MILLER of California, Mr. CANTOR, Mr. GRUCCI, Mr. ROGERS
of Michigan, Mr. TIBERI, Mr. LEACH, Mr. SHAYS, Mr. LATOURETTE,
Mr. JONES of North Carolina, Ms. HART, Mr. FERGUSON, and Mr. PICK-
ERING) introduced the following bill; which was referred to the Committee
on Financial Services, and in addition to the Committee on the Judiciary,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
SEPTEMBER 4, 2002
Reported from the Committee on the Judiciary
SEPTEMBER 17, 2002
Additional sponsors: Mr. PETERSON of Minnesota, Mr. SIMMONS, Mr. SHOWS,
Mr. GREEN of Texas, Mr. BOEHLERT, Mr. KENNEDY of Minnesota, Mr.
WHITFIELD, Mrs. JOHNSON of Connecticut, Mr. UPTON, Ms. PRYCE of
Ohio, Mr. YOUNG of Alaska, Mr. PALLONE, Mr. SAXTON, Mr. SUNUNU,
Mr. BURR of North Carolina, Mr. HOEFFEL, Mr. OSE, Mrs. MYRICK, Mr.
GILLMOR, Mr. HOLDEN, Mr. RAMSTAD, Mr. GRAHAM, Mr. JOHNSON of
Illinois, Mr. TERRY, Mr. GANSKE, Mrs. BIGGERT, Mr. SMITH of Texas,
Mr. WAMP, Mr. LAHOOD, Mr. ROTHMAN, Mr. GORDON, Mr. OWENS, Mr.
DOOLEY of California, Mr. BALDACCI, Mr. PAYNE, Mr. SPRATT, Mrs.
CAPITO, Mr. GREENWOOD, Mr. CASTLE, Mr. SCHAFFER, Mr. BASS, Mr.
LOBIONDO, Mr. PETRI, Mrs. MORELLA, Mr. ENGLISH, Mr. WOLF, Mr.
NUSSLE, Mr. LARSEN of Washington, Mr. DOYLE, Mr. OSBORNE, Mr.
GOODLATTE, Mr. BERRY, Mr. HONDA, Mr. PLATTS, and Mr. MCINTYRE
SEPTEMBER 17, 2002
Reported from the Committee on Financial Services with an amendment; com-
mitted to the Committee of the Whole House on the State of the Union
and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 19, 2002]
A BILL
To amend and extend certain laws relating to housing and
community opportunity, 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 AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Housing Affordability for America Act of 2002’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I—HOME INVESTMENT PARTNERSHIPS PROGRAM
Sec. 101. Matching grants for State and local affordable housing trust funds.
Sec. 102. 3-year on-site inspection cycle for tax credit projects.
Sec. 103. Repeal of limitations on program assistance as percentage of operating
budget.
Sec. 104. Eligibility of room additions for use for grandparents and grand-
children.
Sec. 105. Program year for matching contributions.
Sec. 106. Membership of boards of eligible community housing development orga-
nizations.
Sec. 107. Monitoring of compliance.
Sec. 108. Downpayment assistance initiative.
Sec. 109. Homeownership for municipal employees.
TITLE II—FHA MORTGAGE INSURANCE
Subtitle A—Multifamily Housing and Health Care Facilities
Sec. 201. Indexing of multifamily mortgage limits.
Sec. 202. High-cost areas.
Sec. 203. Standards and need for health care facility mortgage insurance.
Sec. 204. Hospital mortgage insurance loss mitigation demonstration program.
Subtitle B—Single Family Housing
Sec. 221. Downpayment simplification.
Sec. 222. Reduced downpayment requirements for loans for teachers and public
safety officers.
Sec. 223. Community partners next door program.
Sec. 224. Public safety officer home ownership in at-risk areas.
Sec. 225. Hybrid adjustable rate mortgages.
Sec. 226. Uniform national loan limit for home equity conversion mortgages.
Sec. 227. Prohibition of investor and nonprofit owners under rehabilitation loan
program.
Sec. 228. Rehabilitation loan advances.
Sec. 229. Nonprofit purchasers under property disposition.
Sec. 230. Extension of holding period.
Sec. 231. Pilot program for mandatory first-time homebuyer counseling for prop-
erties in high foreclosure neighborhoods.
Sec. 232. Disposition of assets in revitalization areas.
TITLE III—SUPPORTIVE HOUSING FOR ELDERLY AND DISABLED
FAMILIES
Sec. 301. Authorization of appropriations for grants for repairs to federally as-
sisted housing for the elderly.
Sec. 302. Service coordinators for supportive housing for persons with disabilities.
Sec. 303. Demonstration program for elderly housing for intergenerational fami-
lies.
Sec. 304. Treatment of projects subject to foreclosure.
TITLE IV—SECTION 8 RENTAL HOUSING ASSISTANCE PROGRAM
Sec. 401. Housing voucher demonstration.
Sec. 402. Flexibility to assist hard-to-house families.
Sec. 403. Clarification on prohibition of re-screening of tenants.
Sec. 404. PHA administrative fees.
Sec. 405. Ensuring ability to use enhanced vouchers.
Sec. 406. Treatment of overhoused assisted families.
Sec. 407. Extension of manufactured housing demonstration program.
Sec. 408. Extension of project-based section 8 contract renewals.
Sec. 409. Inspection of units.
Sec. 410. Escrow of tenant rent in cases of owner failure to maintain unit.
Sec. 411. Project-based vouchers modifications.
Sec. 412. Expanded use of enhanced vouchers.
Sec. 413. Demonstration program for rental assistance for grandparent-headed or
relative-headed families.
Sec. 414. Eligibility of grandparent-headed and relative-headed families for fam-
ily unification assistance.
Sec. 415. Increased payment standard.
Sec. 416. Protection of innocent tenants.
TITLE V—PUBLIC HOUSING
Subtitle A—General Provisions
Sec. 501. PHA joint ventures.
Sec. 502. Third-party public housing assessment system.
Sec. 503. Public housing agency plans for certain small public housing agencies.
Sec. 504. Affordable assisted living facilities demonstration program.
Sec. 505. Protection of innocent tenants.
Subtitle B—HOPE VI Revitalization Program
Sec. 521. Selection criteria.
Sec. 522. Authorization of appropriations.
Sec. 523. Extension of program.
Sec. 524. HOPE VI grants for assisting affordable housing through Main Street
projects.
TITLE VI—HOMELESS HOUSING PROGRAMS
Sec. 601. United States Interagency Council on Homelessness.
Sec. 602. Federal Emergency Management Agency food and shelter program.
Sec. 603. Emergency shelter grants program.
Sec. 604. Supportive housing program.
Sec. 605. Section 8 assistance for single room occupancy dwellings.
Sec. 606. Shelter plus care.
Sec. 607. Housing for domestic violence and sexual assault victims.
Sec. 608. National goal of ending homelessness.
Sec. 609. Clerical amendments.
TITLE VII—NATIVE AMERICAN HOUSING
Sec. 701. Reauthorization of Native American Housing and Self-Determination
Act of 1996.
Sec. 702. Comprehensive planning under Native American housing block grant
program.
Sec. 703. Lands Title Report Commission.
TITLE VIII—HOUSING IMPACT ANALYSIS
Sec. 801. Applicability.
Sec. 802. Exception for certain banking rules.
Sec. 803. Statement of proposed rulemaking.
Sec. 804. Initial housing impact analysis.
Sec. 805. Final housing impact analysis.
Sec. 806. Avoidance of duplicative or unnecessary analyses.
Sec. 807. Preparation of analyses.
Sec. 808. Effect on other law.
Sec. 809. Procedure for waiver or delay of completion.
Sec. 810. Definitions.
Sec. 811. Development.
Sec. 812. Judicial review.
TITLE IX—OTHER HOUSING PROGRAMS
Sec. 901. GNMA guarantee fee.
Sec. 902. Housing counseling programs.
Sec. 903. Assistance for self-help housing providers.
Sec. 904. Housing opportunities for persons with AIDS.
Sec. 905. Use of CDBG amounts for construction of tornado-safe shelter for man-
ufactured housing parks.
Sec. 906. Use of CDBG amounts to administer renewal communities.
Sec. 907. Subsidy layering review.
Sec. 908. Study of community renewal program.
Sec. 909. Correction of inequities in the second round of empowerment zones.
Sec. 910. Employment opportunities in public and Indian housing agencies.
Sec. 911. Assistance for nonprofit purchasers preserving affordable housing.
Sec. 912. Homeownership for municipal employees.
Sec. 913. Sense of Congress regarding HUD Office of Disability Policy.
Sec. 914. Transfer of rural multifamily rental housing projects to nonprofits and
local housing authorities.
Sec. 915. Sense of Congress regarding consumer protection and home warranties.
Sec. 916. Demonstration program for affordable housing database.
Sec. 917. HUD study regarding Main Street partnership.
Sec. 918. Contractual commitments for rural multifamily rental housing.
TITLE I—HOME INVESTMENT
PARTNERSHIPS PROGRAM
SEC. 101. MATCHING GRANTS FOR STATE AND LOCAL AF-
FORDABLE HOUSING TRUST FUNDS.
(a) IN GENERAL.—Title II of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12721 et seq.)
is amended by adding at the end the following new subtitle:
‘‘Subtitle G—Matching Grants for State and Local
Affordable Housing Trust Funds
‘‘SEC. 292. MATCHING GRANT PROGRAM.
‘‘(a) FINDINGS.—The Congress finds the following:
‘‘(1) There are more than 280 housing trust
funds in the United States. 36 States have created
housing trust funds and the remainder were created
by cities and counties.
‘‘(2) More than $500,000,000 is spent for afford-
able housing through these trust funds every year and
this amount is increasing. On average, for every dol-
lar committed to a housing project by a housing trust
fund, another $5 to $10 is leveraged in other public
and private resources.
‘‘(3) Hundreds of thousands of housing units
have been supported through housing trust funds.
‘‘(4) Housing trust funds support a variety of
housing activities for low- and very low-income house-
holds, including new construction, preservation of ex-
isting housing, emergency repairs, homeless shelters,
housing-related services, and capacity building for
nonprofit organizations.
‘‘(5) At any given time, as many as 50 addi-
tional jurisdictions are considering the creation of a
housing trust fund.
‘‘(6) These unique funds are a fundamental as-
pect of emerging housing policy in the United States.
‘‘(7) Housing trust funds have demonstrated that
when government makes a commitment to address
critical housing needs, the on-going dedicated source
of revenue allows for more intelligent planning to ad-
dress housing needs and for improved proposals sub-
mitted by the housing industry in an effort to effec-
tively use existing resources.
‘‘(8) Housing trust funds enable jurisdictions to
elevate funding for their critical housing needs by
committing resources to a process that treats afford-
able housing as an essential component of maintain-
ing healthy communities.
‘‘(9) Jurisdictions have documented increased
jobs, growing sales taxes, higher property tax reve-
nues, and many other economic benefits from the op-
eration of their housing trust funds.
‘‘(10) Providing federal incentives to encourage
the establishment of more State and local housing
trust funds, and providing Federal funds for the more
than 280 existing housing trust funds, would be a
positive action in addressing the affordable housing
crisis.
‘‘(b) IN GENERAL.—The Secretary of Housing and
Urban Development may make grants under this section
to affordable housing trust funds that are distinct funds,
established by States and units of general local government,
that use public revenue to support the production, preserva-
tion, and rehabilitation of affordable housing, as deter-
mined by the Secretary.
‘‘(c) ALLOCATIONS FOR STATES AND UNITS OF GEN-
ERAL LOCAL GOVERNMENT.—The Secretary shall use the
total amount made available for grants under this section
for each fiscal year to provide such grants to affordable
housing trust funds of States and units of general local gov-
ernment. Of such total amount, the Secretary shall allocate
40 percent for grants for affordable housing trust funds of
States and 60 percent for grants for affordable housing trust
funds of units of general local government. Each State af-
fordable housing trust fund shall receive at least 1 percent
of the amount allocated for the States.
‘‘(d) MATCHING REQUIREMENT.—The Secretary may
not make a grant under this section for any fiscal year to
any affordable housing trust fund in an amount in excess
of the amount that the State or local government admin-
istering the trust fund certifies, as the Secretary shall re-
quire, that will be contributed from non-Federal sources
during such fiscal year to the trust fund for use only for
production, preservation, and rehabilitation of affordable
housing.
‘‘(e) USE REQUIREMENTS.—Amounts provided from a
grant under this section shall be subject to the following re-
quirements:
‘‘(1) DISTRIBUTION
TO
ELIGIBLE
ENTITIES.—
Grant amounts under this section (excluding any
amounts used under paragraph (2)) shall be distrib-
uted to eligible entities for use by such entities only
for eligible activities in the jurisdiction served by the
affordable housing trust fund, as follows:
‘‘(A) USE FOR RENTAL HOUSING FOR EX-
TREMELY LOW-INCOME FAMILIES.—75 percent of
such amounts shall be distributed for use only for
eligible activities relating to qualified affordable
housing that is available for rental by extremely
low-income families in the jurisdiction served by
the affordable housing trust fund. Such rental
housing shall include limited equity cooperative
housing, as such term is defined in section
143(k) of the Internal Revenue Code of 1986 (26
U.S.C 143(k)).
‘‘(B) USE FOR RENTAL HOUSING OR HOME-
OWNERSHIP
FOR
LOW-INCOME
FAMILIES.—25
percent of such amounts shall be distributed for
use only for eligible activities relating to quali-
fied affordable housing that is available for rent-
al by low-income families in the jurisdiction
served by the affordable housing trust fund, or
for homeownership assistance for low-income
families in such jurisdiction. Such rental hous-
ing and homes for homeownership shall include
housing of a cooperative housing corporation, as
such term as defined in section 216(b) of the In-
ternal Revenue Code of 1986 (26 U.S.C. 216(b)).
‘‘(2) OPERATING
ASSISTANCE
FOR
NONPROFIT
HOUSING DEVELOPMENT ORGANIZATIONS.—An afford-
able housing trust fund that receives a grant under
this section may use not more than 5 percent of such
grant amounts to provide assistance to nonprofit or-
ganizations involved in the development, rehabilita-
tion, or preservation of affordable rental housing for
payment of operating costs of such organizations.
Such nonprofit organizations shall include commu-
nity housing development organizations (as such term
is defined in section 104 of this Act, community de-
velopment financial institutions (as such term is de-
fined in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12
U.S.C. 4702)), community development corporations
(as such term is defined in section 31131 of the Na-
tional Community Economic Partnership Act of 1994
(42 U.S.C. 13851)), and community-based develop-
ment organizations.
‘‘(3) COST LIMITS.—The Secretary shall establish
limitations on the amount of grant amounts that may
be used, on a per unit basis, for eligible activities.
Such limitations shall be the same as the per unit
cost limits established pursuant to section 212(e), as
adjusted annually, and established by number of bed-
rooms, market area, and eligible activity.
‘‘(f) ALLOCATION PLAN.—
‘‘(1) REQUIREMENT.—With respect to a fiscal
year, an affordable housing trust fund shall be eligible
to receive a grant under this section for such fiscal
year only if the trust fund has established an alloca-
tion plan that has been submitted to the Secretary
and reviewed and approved by the Secretary as in ac-
cordance with this subsection. The Secretary may dis-
approve an allocation plan only if the plan fails to
comply with requirements set forth in this section.
‘‘(2) ESTABLISHMENT.—An allocation plan in
accordance with this subsection is a plan, established
by an affordable housing trust fund for a fiscal year,
for the distribution of grant amounts provided under
this section to the trust fund for such fiscal year.
‘‘(3) NOTICE.—In establishing an allocation
plan, the affordable housing trust fund shall notify
the public of the establishment of the plan, provide an
opportunity for public comments regarding the plan,
consider any public comments received, and make the
completed plan available to the public.
‘‘(4) CONTENTS.—An allocation plan of an af-
fordable housing trust fund shall include the following
information:
‘‘(A) APPLICATION REQUIREMENTS FOR ELI-
GIBLE ENTITIES AND SUBRECIPIENTS.—The allo-
cation plan shall set forth the requirements for
eligible entities and eligible subrecipients to
apply to receive assistance from grant amounts
under this section, including a requirement that
each such application include—
‘‘(i) a description of the eligible activi-
ties to be conducted using such assistance;
and
‘‘(ii) a certification by the applicant
that any housing units assisted with such
assistance will comply with the require-
ments under—
‘‘(I) subsection (k)(9)(A) (relating
to rents charged);
‘‘(II) subsection (k)(9)(B) (relat-
ing to tenant rent contribution);
‘‘(III) subsection (k)(9)(C) (relat-
ing to availability of units for voucher
holders); and
‘‘(IV) subsection (k)(9)(E) (relat-
ing to use as qualified affordable hous-
ing for 40 years).
‘‘(B) SELECTION
AND
PREFERENCE
CRI-
TERIA FOR ELIGIBLE ENTITIES AND SUBRECIPI-
ENTS.—The allocation plan shall set forth the
factors for consideration in selecting among ap-
plicants that meet the application requirements
set forth pursuant to subparagraph (A), which
shall give preference to applicants based on—
‘‘(i) the amount of assistance leveraged
by the applicant from private and other
non-Federal sources for carrying out the eli-
gible activities to be funded with assistance
from grant amounts under this section, in-
cluding assistance made available under
section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f) that is devoted to
the project that contains the qualified af-
fordable housing to be assisted with such as-
sistance;
‘‘(ii) the extent of local assistance that
will be provided in carrying out the eligible
activities, including—
‘‘(I) financial assistance;
‘‘(II) the extent to which the ap-
plicant has worked to address issues of
siting and exclusionary zoning or other
policies that are barriers to affordable
housing with the unit of general local
government in which the housing to be
assisted with such assistance will be lo-
cated; and
‘‘(III) the extent to which the ap-
plicant has worked with the unit of
general local government to reduce the
barriers to affordable housing;
‘‘(iii) the degree to which the project in
which the qualified affordable housing will
be located will have residents of various in-
comes;
‘‘(iv) the extent of employment and
other economic opportunities for low-income
families in the area in which the housing
will be located;
‘‘(v) the extent to which the applicant
demonstrates the ability to maintain dwell-
ing units as qualified affordable housing
through the use of assistance made available
under this section, assistance leveraged from
non-Federal sources, assistance made avail-
able under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f),
State or local assistance, programs to in-
crease tenant income, cross-subsidization,
and any other resources;
‘‘(vi) the extent to which the applicant
demonstrates that the county in which the
housing is to be located is experiencing an
extremely low vacancy rate;
‘‘(vii) the extent to which the percent-
age of the housing located in such county
that is extremely old housing exceeds 35
percent;
‘‘(viii) whether the applicant has pro-
vided that—
‘‘(I) 75 percent of the grant
amounts will be used for eligible activi-
ties relating to housing located in cen-
sus tracts in which the number of fam-
ilies having incomes less than the pov-
erty line is less than 20 percent or in
communities undergoing revitalization;
and
‘‘(II) 25 percent of the grant
amounts will be used for eligible activi-
ties relating to housing that is located
in census tracts in which the number
of families having incomes less than
the poverty line is greater than 20 per-
cent and is not located in a commu-
nity undergoing revitalization; and
‘‘(ix) whether the applicant has pro-
vided that—
‘‘(I) not less than 45 percent of
the grant amounts will be used for eli-
gible activities relating to housing that
is affordable to families having in-
comes less than 30 percent of the great-
er of (aa) the median income for the
area in which the housing is located, or
(bb) the median income for the State
in which the housing is located;
‘‘(II) not less than 30 percent of
the grant amounts will be used for eli-
gible activities relating to housing that
is affordable to families having in-
comes not exceeding the amount earned
by a family having one individual (or
1.5 individuals in the case of a family
consisting of 3 or more individuals),
who is employed on a full-time basis in
a position paying the higher of (aa)
the Federal minimum wage under sec-
tion 6(a)(1) of the Fair Labor Stand-
ards 
Act 
of 
1938 
(29 
U.S.C.
206(a)(1)), or (bb) the minimum wage
under State law of the State in which
the housing is located; and
‘‘(III) not more than 25 percent of
the grant amounts will be used for eli-
gible activities relating to housing for
families having incomes that (aa) are
greater than the incomes referred to in
subclauses (I) and (II) of this clause,
but (bb) do not exceed the higher of the
median income for the State in which
the housing is located or 80 percent of
the median income for the area in
which the housing is located.
‘‘(5) CONSOLIDATED PLAN.—The Secretary shall
provide that a State or unit of general local govern-
ment administering an affordable housing trust fund
may comply with the requirements under this sub-
section for submission of an allocation plan through
the inclusion of any appropriate information in a
single consolidated submission used for purposes of
applying for other community planning and develop-
ment and housing assistance programs administered
by the Secretary.
‘‘(g) FORMS OF ASSISTANCE.—
‘‘(1) 
IN
GENERAL.—Assistance 
from 
grant
amounts under this section may be distributed in the
form of capital grants, noninterest bearing or low-in-
terest loans or advances, deferred payment loans,
guarantees, and any other forms of assistance ap-
proved by the Secretary.
‘‘(2) REPAYMENTS.—If an affordable housing
trust fund awards assistance from grant amounts
under this section in the form of a loan or other
mechanism by which funds are later repaid to the
trust fund, any repayments received by the trust fund
shall be distributed by the trust fund in accordance
with the allocation plan under subsection (f) for the
trust fund for the fiscal year in which such repay-
ments are made.
‘‘(h) COORDINATION WITH OTHER ASSISTANCE.—In
distributing assistance from grant amounts under this sec-
tion, each affordable housing trust fund shall, to the max-
imum extent practicable, coordinate such distribution with
the provision of other affordable housing assistance by the
trust fund, including—
‘‘(1) in the case of any State, housing credit dol-
lar amounts allocated by the State under section
42(h) of the Internal Revenue Code of 1986;
‘‘(2) assistance otherwise made available under
this title or the community development block grant
program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.);
and
‘‘(3) private activity bonds.
‘‘(i) 
ADMINISTRATION
OF
PROGRAM
BY
SUB-
RECIPIENT.—At the discretion of the affordable housing
trust fund, the trust fund may select an eligible subrecipient
to carry out all or a portion of the trust fund’s responsibil-
ities under this section, in accordance with this section.
‘‘(j) LABOR STANDARDS.—Each affordable housing
trust fund receiving grant amounts under this section shall
ensure that contracts for eligible activities assisted with
such amounts comply with the same requirements under
section 286 that are applicable to contracts for construction
of affordable housing assisted under such Act.
‘‘(k) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
cial institution, a State or local housing trust fund,
and any other intermediary selected by an affordable
housing trust fund to administer all or a portion of
the trust fund’s responsibilities under this section.
The term does not include any public agency or non-
profit organization that receives money from an af-
fordable housing trust fund solely as a developer or
owner of housing.
‘‘(4) EXTREMELY LOW-INCOME FAMILIES.—The
term ‘extremely low-income families’ means families
(as such term is defined in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)))
whose incomes do not exceed 30 percent of the median
family income for the area, as determined by the Sec-
retary with adjustments for smaller and larger fami-
lies, 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 unusu-
ally high or low family incomes.
‘‘(5) EXTREMELY
LOW
VACANCY
RATE.—The
term ‘extremely low vacancy rate’ means a housing or
rental vacancy rate of 2 percent or less.
‘‘(6) EXTREMELY OLD HOUSING.—The term ‘ex-
tremely old housing’ means housing that is 45 years
old or older.
‘‘(7) LOW-INCOME FAMILIES.—The term ‘low-in-
come families’ has the meaning given such term in
section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)).
‘‘(8) POVERTY
LINE.—The term ‘poverty line’
has the meaning given such term in section 673(2) of
the Omnibus Budget Reconciliation Act of 1981, in-
cluding any revision required by such section.
‘‘(9) QUALIFIED
AFFORDABLE
HOUSING.—The
term ‘qualified affordable housing’ means a rental
dwelling unit that is subject to legally binding com-
mitments that ensure that the dwelling unit meets all
of the following requirements:
‘‘(A) RENTS.—The dwelling unit bears a
rent not greater than the lesser of—
‘‘(i) the existing fair market rental es-
tablished by the Secretary under section
8(c) of the United States Housing Act of
1937 (42 U.S.C. 1437f(c)) for a dwelling
unit of the same size in the same market
area; and
‘‘(ii) a rent that does not exceed 30
percent of the adjusted income of a family
whose income equals 65 percent of the me-
dian income for the area, as determined by
the Secretary, with adjustment for number
of bedrooms in the unit, except that the Sec-
retary may establish income ceilings higher
or lower than 65 percent of the median for
the area on the basis of the findings of the
Secretary that such variations are necessary
because of prevailing levels of construction
costs or fair market rents, or unusually high
or low family incomes.
‘‘(B) TENANT
RENT
CONTRIBUTION.—The
contribution toward rent by the family residing
in the dwelling unit will not exceed 30 percent
of the adjusted income of such family.
‘‘(C) AVAILABILITY OF UNITS FOR VOUCHER
HOLDERS.—The dwelling unit—
‘‘(i) is located in a project within
which a percentage of units are made avail-
able only for occupancy by families assisted
under the voucher program under section
8(o) of the United States Housing Act of
1937 
(42 
U.S.C. 
1437f(o)) 
(including
project-based 
assistance 
under 
section
8(o)(13)) on the same basis as other families
eligible for occupancy of the project (except
that only the voucher holder’s expected share
of rent shall be considered), which percent-
age shall not be less than the percentage of
the total cost of developing, rehabilitating,
or preserving the project that is funded with
assistance under this section; and
‘‘(ii) is one of the units that is subject
to such occupancy requirements.
‘‘(D) NON-DISCRIMINATION AGAINST VOUCH-
ER HOLDERS.—The dwelling unit is located in a
project in which all dwelling units are subject to
enforceable restrictions that provide that a unit
may not be refused for leasing to a holder of a
voucher of eligibility under section 8 of the
United States Housing Act of 1937 (42 U.S.C.
1437f) because of the status of the prospective
tenant as a holder of such voucher.
‘‘(E) DURATION
OF
USE.—The dwelling
unit will continue to be subject to the require-
ments under this paragraph for not less than 40
years.
‘‘(10) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(l) AUTHORIZATIONS
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be nec-
essary for fiscal year 2003 and each fiscal year thereafter
for grants under this section. Amounts made available for
the HOME Investment Partnerships Act shall not be avail-
able for assistance under this subtitle.
‘‘(m) INAPPLICABILITY OF HOME PROVISIONS.—Ex-
cept as specifically provided in this subtitle, no requirement
under, or provision of, title I or subtitles A through F of
this title shall apply to assistance provided under this sub-
title.’’.
(b) CONFORMING AMENDMENT.—Section 201 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12701 note) is amended by striking ‘‘This title’’ and
inserting ‘‘Subtitles A through F of this title’’.
SEC. 102. 3-YEAR ON-SITE INSPECTION CYCLE FOR TAX
CREDIT PROJECTS.
Subsection (b) of section 226 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12756) is
amended to read as follows:
‘‘(b) PERIODIC MONITORING.—
‘‘(1) REQUIREMENT.—Each participating juris-
diction shall review the activities of owners of afford-
able housing for rental that is assisted under this title
to assess compliance with the requirements of this
title. Such review shall be conducted in compliance
with the provisions of paragraph (2) (relating to fre-
quency) and shall include on-site inspection to deter-
mine compliance with housing codes and other appli-
cable regulations.
‘‘(2) FREQUENCY.—The review required by para-
graph (1) shall be conducted not less frequently than
annually, except that, in the case of affordable hous-
ing for rental that has been allocated a low-income
housing tax credit by a housing credit agency pursu-
ant to section 42 of the Internal Revenue Code of
1986 and is not considered (under such regulations as
the Secretary shall prescribe) to be high-risk housing,
the on-site inspection referred to in paragraph (1)
shall be conducted once every 3 years, or more often
as may be required under the regulations issued pur-
suant to such section 42.
‘‘(3) INCLUSION IN PERFORMANCE REPORT.—The
results of each review of a participating jurisdiction
shall be included in the performance report of the ju-
risdiction that is submitted under section 108(a) for
the year in which the review is conducted and shall
be made available to the public.’’.
elderly person who is a relative of the family and to avoid
placement of such relative in an institutionalized setting,
foster care, or other out-of-home setting.’’.
SEC. 105. PROGRAM YEAR FOR MATCHING CONTRIBUTIONS.
Section 220 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12750) is amended—
(1) in subsection (a)—
(A) by striking ‘‘a fiscal year’’ and insert-
ing ‘‘a program year of the jurisdiction’’; and
(B) by striking ‘‘such fiscal year’’ and in-
serting ‘‘such program year’’; and
(2) in subsection (d)—
(A) in paragraph (1), by striking ‘‘fiscal
year’’ and inserting ‘‘program year of the juris-
diction’’;
(B) in paragraph (3), by striking ‘‘fiscal
year’’ each place such term appears and insert-
ing ‘‘program year’’; and
(C) in paragraph (5), by striking ‘‘fiscal
year’’ and inserting ‘‘program year of the juris-
diction’’.
SEC. 106. MEMBERSHIP OF BOARDS OF ELIGIBLE COMMU-
NITY HOUSING DEVELOPMENT ORGANIZA-
TIONS.
Section 104(6) of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12704(6)) is amended by
adding at the end the following: ‘‘In establishing require-
ments for an organization to be considered a community
housing development organization for purposes of this Act,
the Secretary may not prohibit, limit, or restrict member-
ship on the board by public employees who are not elected
or appointed or who do not exercise policy-making or pol-
icy-determining functions.’’.
SEC. 107. MONITORING OF COMPLIANCE.
(a) AUTHORITY AND AGREEMENTS.—Section 226 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12756) is amended—
(1) in the second sentence of subsection (a)—
(A) by striking ‘‘and’’; and
(B) by inserting before the period at the end
the following: ‘‘, and (3) such fees as may be es-
tablished by the participating jurisdiction pur-
suant to subsection (c)’’;
(2) by redesignating subsection (c) as subsection
(d); and
(3) by inserting after subsection (b) the following
new subsection:
‘‘(c) MONITORING FEES.—A participating jurisdiction
may establish and charge reasonable fees to affordable hous-
ing projects assisted under this title for costs of monitoring
compliance with the provisions of this title.’’.
(b) USE OF INVESTMENT.—Section 212 of the Cran-
ston-Gonzalez National Affordable Housing Act (42 U.S.C.
12742), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new
subsection:
‘‘(h) MONITORING FEES.—Monitoring fees under sec-
tion 226(c) for an affordable housing project may be paid
for from amounts made available under this subtitle to the
project, in accordance with an agreement pursuant to sec-
tion 226(a).’’.
SEC. 108. DOWNPAYMENT ASSISTANCE INITIATIVE.
(a) DOWNPAYMENT ASSISTANCE INITIATIVE.—Subtitle
E of title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12821) is amended to read as fol-
lows:
‘‘Subtitle E—Other Assistance
‘‘SEC. 271. DOWNPAYMENT ASSISTANCE INITIATIVE.
‘‘(a) GRANT AUTHORITY.—The Secretary may make
grants to participating jurisdictions to assist low-income
families to achieve homeownership, in accordance with this
section.
‘‘(b) ELIGIBLE ACTIVITIES.—Amounts made available
under this section may be used only for downpayment as-
sistance toward the purchase of single family housing by
low-income families who are first-time homebuyers. For
purposes of this title, the term ‘downpayment assistance’
means assistance to help a family acquire a principal resi-
dence.
‘‘(c) HOUSING STRATEGY.—To be eligible to receive a
grant under this section for a fiscal year, a participating
jurisdiction shall include in its comprehensive housing af-
fordability strategy under section 105 for such year a de-
scription of the use of the grant amounts.
‘‘(d) FORMULA ALLOCATION.—For each fiscal year, the
Secretary shall allocate any amounts made available for as-
sistance under this section for the fiscal year in accordance
with a formula, which shall be established by the Secretary,
that considers a participating jurisdiction’s need for and
prior commitment to assistance to homebuyers. The formula
may include minimum and maximum allocation amounts.
‘‘(e) REALLOCATION.—If any amounts allocated to a
participating jurisdiction under this section become avail-
able for reallocation, the amounts shall be reallocated to
other participating jurisdictions in accordance with the for-
mula established pursuant to subsection (c), except that if
a local participating jurisdiction failed to receive amounts
allocated under this section and is located in a State that
is a participating jurisdiction, the funds shall be reallocated
to the State.
‘‘(f) APPLICABILITY OF OTHER PROVISIONS.—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this section, grants under this section shall not be
subject to the provisions of this title.
‘‘(2) APPLICABLE PROVISIONS.—In addition to
the requirements of this section, grants under this sec-
tion shall be subject to the provisions of title I, sec-
tions 215(b), 218, 219, 221, 223, 224, and 226(a) of
subtitle A of this title, and subtitle F of this title.
‘‘(3) REFERENCES.— In applying the require-
ments of subtitle A referred to in paragraph (2)—
‘‘(A) any references to funds under subtitle
A shall be considered to refer to amounts made
available for assistance under this section; and
‘‘(B) any references to funds allocated or re-
allocated under section 217 or 217(d) shall be
considered to refer to amounts allocated or re-
allocated under subsection (d) or (e) of this sec-
tion, respectively.
‘‘(g) ADMINISTRATIVE COSTS.—Notwithstanding sec-
tion 212(c), a participating jurisdiction may use funds
under subtitle A for administrative and planning costs of
the jurisdiction in carrying out this section, and the limita-
tion in section 212(c) shall be based on the total amount
of funds available under subtitle A and this section.
‘‘(h) FUNDING.—There are authorized to be appro-
priated such sums as may be necessary to carry out this
section for each of fiscal years 2003 and 2004.’’.
(b) RELOCATION ASSISTANCE AND DOWNPAYMENT AS-
SISTANCE.—Subtitle F of title II of the Cranston-Gonzalez
National Affordable Housing Act is amended by inserting
after section 290 (42 U.S.C. 12840) the following new sec-
tion:
‘‘SEC. 291. RELOCATION ASSISTANCE AND DOWNPAYMENT
ASSISTANCE.
‘‘The Uniform Relocation Assistance and Real Prop-
erty Acquisition Policies Act of 1970 shall not apply to
downpayment assistance under this title.’’.
SEC. 109. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) ELIGIBLE ACTIVITIES.—Paragraph (2) of section
215(b) of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12745(b)(2)) is amended to read as fol-
lows:
‘‘(2) is the principal residence of an owner
who—
‘‘(A) is a member of a family that qualifies
as a low-income family—
‘‘(i) in the case of a contract to pur-
chase existing housing, at the time of pur-
chase;
‘‘(ii) in the case of a lease-purchase
agreement for existing housing or for hous-
ing to be constructed, at the time the agree-
ment is signed; or
‘‘(iii) in the case of a contract to pur-
chase housing to be constructed, at the time
the contract is signed; or
‘‘(B)(i) is a uniformed employee (which
shall include policemen, firemen, and sanitation
and other maintenance workers) or a teacher
who is an employee, of the participating juris-
diction (or an agency or school district serving
such jurisdiction) that is investing funds made
available under this subtitle to support home-
ownership of the residence; and
‘‘(ii) is a member of a family whose income,
at the time referred to in clause (i), (ii), or (iii)
of subparagraph (A), as appropriate, and as de-
termined by the Secretary with adjustments for
smaller and larger families, does not exceed 115
percent of the median income of the area, except
that, with respect only to such areas that the
Secretary determines have high housing costs,
taking into consideration median house prices
and median family incomes for the area, such
income limitation shall be 150 percent of the me-
dian income of the area, as determined by the
Secretary with adjustments for smaller and larg-
er families;’’.
(b) INCOME TARGETING.—Section 214(2) of the Cran-
ston-Gonzalez National Affordable Housing Act (42 U.S.C.
12744(2)) is amended by inserting before the semicolon the
following: ‘‘or families described in section 215(b)(2)(B)’’.
(c) ELIGIBLE INVESTMENTS.—Section 212(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12742(b)) is amended by adding at the end the fol-
lowing new sentence: ‘‘Notwithstanding the preceding sen-
tence, in the case of homeownership assistance for residences
of owners described in section 215(b)(2)(B), funds made
available under this subtitle may only be invested (1) to
provide amounts for downpayments on mortgages, (2) to
pay reasonable closing costs normally associated with the
purchase of a residence, (3) to obtain pre- or post-purchase
counseling relating to the financial and other obligations
of homeownership, or (4) to subsidize mortgage interest
rates.’’.
TITLE II—FHA MORTGAGE
INSURANCE
Subtitle A—Multifamily Housing
and Health Care Facilities
SEC. 201. INDEXING OF MULTIFAMILY MORTGAGE LIMITS.
(a) SECTION 207 LIMITS.—Section 207(c)(3) of the
National Housing Act (12 U.S.C. 1713(c)(3)) is amended—
(1) 
by 
striking 
‘‘$11,250’’ 
and 
inserting
‘‘$17,460’’;
(2) by inserting before ‘‘; and except that’’ the
following: ‘‘; except that the Secretary shall adjust
each such dollar amount limitation set forth in this
paragraph (as such limitation may have been pre-
viously adjusted pursuant to this provision) effective
January 1 of each year (beginning in 2003) in ac-
cordance with the percentage increase, if any, during
the 12-month period ending with the preceding Octo-
ber, in the Annual Construction Cost Index of the Bu-
reau of the Census of the Department of Commerce’’;
and
(3) by inserting after ‘‘foregoing dollar amount
limitations contained in this paragraph’’ the fol-
lowing: ‘‘(as such limitations may have been pre-
viously adjusted pursuant to this paragraph)’’.
(b) SECTION 213 LIMITS.—Section 213(b)(2) of the
National Housing Act (12 U.S.C. 1715e(b)(2)) is
amended—
(1) by striking ‘‘$38,025’’, ‘‘$42,120’’, ‘‘$50,310’’,
‘‘$62,010’’, and ‘‘$70,200’’, and inserting ‘‘$41,207’’,
‘‘$47,511’’, ‘‘$57,300’’, ‘‘$73,343’’, and ‘‘$81,708’’, re-
spectively;
(2) by striking ‘‘$49,140’’, ‘‘$60,255’’, ‘‘$75,465’’,
and ‘‘$85,328’’, and inserting ‘‘$49,710’’, ‘‘$60,446’’,
‘‘$78,197’’, and ‘‘$85,836’’, respectively;
(3) by inserting after the colon at the end of the
first proviso the following: ‘‘Provided further, That
the Secretary shall adjust each such dollar amount
limitation set forth in this paragraph (as such limi-
tation may have been previously adjusted pursuant to
this provision) effective January 1 of each year (be-
ginning in 2003) in accordance with the percentage
increase, if any, during the 12-month period ending
with the preceding October, in the Annual Construc-
tion Cost Index of the Bureau of the Census of the De-
partment of Commerce:’’; and
(4) by inserting after ‘‘foregoing dollar amount
limitations contained in this paragraph’’ the fol-
lowing: ‘‘(as such limitations may have been pre-
viously adjusted pursuant to this paragraph)’’.
(c) SECTION 220 LIMITS.—Section 220(d)(3)(B)(iii) of
the National Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii))
is amended—
(1) by inserting after ‘‘foregoing dollar amount
limitations contained in this clause’’, the first place
such phrase appears, the following: ‘‘(as such limita-
tions may have been previously adjusted pursuant to
this clause)’’.
(2) by inserting after ‘‘Provided,’’ the following:
‘‘That the Secretary shall adjust each such dollar
amount limitation set forth in this clause (as such
limitation may have been previously adjusted pursu-
ant to this provision) effective January 1 of each year
(beginning in 2003) in accordance with the percent-
age increase, if any, during the 12-month period end-
ing with the preceding October, in the Annual Con-
struction Cost Index of the Bureau of the Census of
the Department of Commerce: Provided further,’’; and
(3) by striking ‘‘(as determined after the appli-
cation of the preceding proviso)’’ and inserting ‘‘(as
such limitations may have been previously adjusted
pursuant to the preceding proviso and as determined
after application of any percentage increase author-
ized in this clause relating to units with two, three,
or four or more bedrooms)’’.
(d) SECTION 221(d)(3) LIMITS.—Section 221(d)(3)(ii)
of the National Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is
amended—
(1) by inserting before ‘‘; and except that’’ the
following: ‘‘; except that the Secretary shall adjust
each such dollar amount limitation set forth in this
clause (as such limitation may have been previously
adjusted pursuant to this provision) effective January
1 of each year (beginning in 2003) in accordance
with the percentage increase, if any, during the 12-
month period ending with the preceding October, in
the Annual Construction Cost Index of the Bureau of
the Census of the Department of Commerce’’; and
(2) by inserting after ‘‘foregoing dollar amount
limitations contained in this clause’’ the following:
‘‘(as such limitations may have been previously ad-
justed pursuant to this clause)’’.
(e) SECTION 221(d)(4) LIMITS.—Section 221(d)(4)(ii)
of the National Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is
amended—
(1) by inserting before ‘‘; and except that’’ the
following: ‘‘; except that the Secretary shall adjust
each such dollar amount limitation set forth in this
clause (as such limitation may have been previously
adjusted pursuant to this provision) effective January
lowing: ‘‘(as such limitations may have been pre-
viously adjusted pursuant to this paragraph)’’.
(g) SECTION 234 LIMITS.—Section 234(e)(3) of the
National Housing Act (12 U.S.C. 1715y(e)(3)) is
amended—
(1) by inserting before ‘‘; except that’’ the second
place such phrase appears the following: ‘‘; except that
the Secretary shall adjust each such dollar amount
limitation set forth in this paragraph (as such limi-
tation may have been previously adjusted pursuant to
this provision) effective January 1 of each year (be-
ginning in 2003) in accordance with the percentage
increase, if any, during the 12-month period ending
with the preceding October, in the Annual Construc-
tion Cost Index of the Bureau of the Census of the De-
partment of Commerce’’;
(2) by inserting after ‘‘each of the foregoing dol-
lar amounts’’ the following: ‘‘(as such amounts may
have been previously adjusted pursuant to this para-
graph)’’; and
(3) by inserting after ‘‘foregoing dollar amount
limitations contained in this paragraph’’ the fol-
lowing: ‘‘(as such limitations may have been pre-
viously adjusted pursuant to this paragraph and in-
creased pursuant to the preceding clause)’’.
SEC. 202. HIGH-COST AREAS.
In the National Housing Act, sections 207(c)(3),
213(b)(2), 220(d)(3)(B)(iii), 221(d)(3)(ii), 221(d)(4)(ii),
231(c)(2), and 234(e)(3) (12 U.S.C. 1713(c)(3), 1715e(b)(2),
1715k(d)(3)(B)(iii), 
1715l(d)(3)(ii), 
1715l(d)(4)(ii),
1715v(c)(2)), and 1715y(e)(3)) are each amended—
(1) by striking ‘‘140 percent’’ and inserting ‘‘170
percent’’; and
(2) by striking ‘‘110 percent’’ and inserting ‘‘140
percent’’.
SEC. 203. STANDARDS AND NEED FOR HEALTH CARE FACIL-
ITY MORTGAGE INSURANCE.
(a) HOSPITALS.—Paragraph (4) of section 242(d) of
the National Housing Act (12 U.S.C. 1715z–7) is amended
to read as follows:
‘‘(4)(A) The Secretary shall require satisfactory
evidence that the hospital will be located in a State
or political subdivision of a State with reasonable
minimum standards of licensure and methods of oper-
ation for hospitals and satisfactory assurance that
such standards will be applied and enforced with re-
spect to the hospital.
‘‘(B) The Secretary shall establish the means for
determining need and feasibility for the hospital. If
the State has an official procedure for determining
need for hospitals, the Secretary shall also require
that such procedure be followed before the application
for insurance is submitted, and the application shall
document that need has also been established under
that procedure.’’.
(b) NURSING HOMES, INTERMEDIATE CARE FACILI-
TIES, AND COMBINED FACILITIES.—Section 232(d)(4) of
the National Housing Act (12 U.S.C. 1715w(d)(4)) is
amended by striking the paragraph designation and all that
follows through the end of subparagraph (A) and inserting
the following:
‘‘(4)(A)(i) The Secretary shall require satisfac-
tory evidence that a nursing home, intermediate care
facility, or combined nursing home and intermediate
care facility will be located in a State or political
subdivision of a State with reasonable minimum
standards of licensure and methods of operation for
such homes, facilities, or combined homes and facili-
ties. The Secretary shall also require satisfactory as-
surance that such standards will be applied and en-
forced with respect to the home, facility, or combined
home or facility.
‘‘(ii) The Secretary shall establish the means for
determining need and feasibility for the home, facil-
ity, or combined home and facility. If the State has
an official procedure for determining need for such
homes, facilities, or combined homes and facilities, the
Secretary shall also require that such procedure be
followed before the application for insurance is sub-
mitted, and the application shall document that need
has also been established under that procedure.’’.
SEC. 204. HOSPITAL MORTGAGE INSURANCE LOSS MITIGA-
TION DEMONSTRATION PROGRAM.
(a) IN GENERAL.—Section 242 of the National Hous-
ing Act (12 U.S.C. 1715z–7) is amended by adding at the
end the following new subsection:
‘‘(i) LOSS MITIGATION DEMONSTRATION PROGRAM.—
‘‘(1) IN GENERAL.—Only to the extent or in such
amounts as are provided in advance in appropriation
Acts to carry out this subsection, the Secretary may
carry out a program to demonstrate the effectiveness
of taking loss mitigation actions for hospitals with
mortgages that are insured under this section to re-
duce the risk of, prevent, or cure defaults of finan-
cially troubled hospitals, to reduce claim or holding
costs of loans that are assigned to the Secretary, or
to maximize the recovery on loan assets. The dem-
onstration program may be carried out only with re-
spect to not more than 3 such hospitals.
‘‘(2) LOSS MITIGATION ACTIONS.—Loss mitiga-
tion actions taken under the demonstration program
under this subsection may include the following ac-
tions:
‘‘(A) Partial payment of a claim under the
contract for mortgage insurance under this sec-
tion.
‘‘(B) Temporary provision of operating as-
sistance funds, including debt service.
‘‘(C) Provision of financial assistance for
maintenance, repair, alterations, or the cost of
other capital improvements, including for con-
version of excess capacity of hospitals to facilities
providing health care and supportive housing for
elderly persons and families, including assisted
living facilities, nursing homes, and supportive
housing for the elderly.
‘‘(3) REQUIREMENTS FOR ASSISTANCE.—A hos-
pital may be provided financial assistance under the
demonstration program only if—
‘‘(A) the hospital has secured binding com-
mitments for matching funds of not less than 10
percent of the cost of such assistance; and
‘‘(B) the hospital has met the requirements
of any applicable State certificate of need or
other licensing requirement.
‘‘(4) LIMITATIONS ON ASSISTANCE.—Any pay-
ments or financial assistance or relief under this sub-
section shall be made at the sole discretion of the Sec-
retary and on terms acceptable to the Secretary except
that—
‘‘(A) the total amount of payments and fi-
nancial assistance and relief shall not exceed 30
percent of the outstanding project indebtedness
insured by the Secretary; and
‘‘(B) the mortgagor shall agree to repay
such total amount to the Secretary upon terms
and conditions acceptable to the Secretary.
‘‘(5) FINAL DECISION.—A decision by the Sec-
retary to exercise or forgo exercising any authority
under this subsection shall not be subject to judicial
review.
‘‘(6) APPLICATIONS.—The Secretary shall pro-
vide for hospitals to submit applications for partici-
pation in the demonstration program under this sub-
section, which shall include information sufficient to
determine compliance with the requirements under
paragraph (3).
‘‘(7) TERMINATION.—The demonstration pro-
gram under this subsection shall terminate on Decem-
ber 31, 2004.’’.
(b) REPORT.—Not later than September 30, 2005, the
Secretary shall submit a report to the Congress analyzing
the demonstration program under the amendment made by
subsection (a) and the extent to which, if any, the assistance
provided under such program reduced the net cost to the
General Insurance Fund as calculated on a net present
value basis.
Subtitle B—Single Family Housing
SEC. 221. DOWNPAYMENT SIMPLIFICATION.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by realigning the
matter that precedes clause (ii) an additional 2
ems from the left margin;
(B) in the matter that follows subparagraph
(B)(iii)—
(i) by striking the seventh sentence of
such matter (relating to the maximum
amount of a principal obligation of a mort-
gage) and all that follows through the end
of the penultimate undesignated paragraph;
and
(ii) by striking the second, third, and
fifth sentences of such matter; and
(C) by striking subparagraph (B);
(2) by transferring and inserting subparagraph
(A) of paragraph (10) after subparagraph (A) of
paragraph (2) and amending such transferred
subparagraph—
(A) by striking all of the matter that pre-
cedes clause (i) and inserting the following:
‘‘(B) not to exceed an amount equal to the
sum of—’’; and
(B) in clause (ii)(IV), by striking ‘‘an area
of the’’ and inserting ‘‘a’’;
(3) by transferring and inserting the last undes-
ignated paragraph of paragraph (2) (relating to dis-
closure notice) after subsection (e), realigning such
transferred paragraph so as to be flush with the left
margin, and amending such transferred paragraph by
inserting ‘‘(f) DISCLOSURE
OF OTHER MORTGAGE
PRODUCTS.—’’ before ‘‘In conjunction’’;
(4) by transferring and inserting the sentence
that constitutes the text of paragraph (10)(B) after
the period at the end of the first sentence that follows
subparagraph (B) (relating to the definition of
‘‘area’’) and amending such transferred sentence by
inserting ‘‘(2)’’ after ‘‘this paragraph’’; and
(5) by striking paragraph (10) (as amended by
the preceding provisions of this section).
(b) CONFORMING AMENDMENTS.—Section 245 of the
National Housing Act (12 U.S.C. 1715z–10) is amended—
(1) in subsection (a), by striking ‘‘, or if the
mortgagor’’ and all that follows through ‘‘case of vet-
erans’’; and
(2) in subsection (b)(3), by striking ‘‘, or, if the’’
and all that follows through ‘‘for veterans,’’.
SEC. 222. REDUCED DOWNPAYMENT REQUIREMENTS FOR
LOANS FOR TEACHERS AND PUBLIC SAFETY
OFFICERS.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)), as amended by the pre-
ceding provisions of this Act, is further amended by adding
at the end the following new paragraph:
‘‘(10) REDUCED DOWNPAYMENT REQUIREMENTS
FOR TEACHERS AND PUBLIC SAFETY OFFICERS.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a mortgage described in
subparagraph (B)—
‘‘(i) the mortgage shall involve a prin-
cipal obligation in an amount that does not
exceed the sum of 99 percent of the ap-
praised value of the property and the total
amount of initial service charges, appraisal,
inspection, and other fees (as the Secretary
shall approve) paid in connection with the
mortgage;
‘‘(ii) no other provision of this sub-
section limiting the principal obligation of
the mortgage based upon a percentage of the
appraised value of the property subject to
the mortgage shall apply; and
‘‘(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply
and the mortgage shall be executed by a
mortgagor who shall have paid on account
of the property at least 1 percent of the cost
of acquisition (as determined by the Sec-
retary) in cash or its equivalent.
‘‘(B) MORTGAGES
COVERED.—A mortgage
described in this subparagraph is a mortgage—
‘‘(i) under which the mortgagor is an
individual who—
‘‘(I) is (aa) a teacher, or (bb) a
public safety officer; and
‘‘(II) has not, during the 12-
month period ending upon the insur-
ance of the mortgage, had any present
ownership interest in a principal resi-
dence located in the jurisdiction de-
scribed in clause (ii); and
‘‘(ii) made for a property that is lo-
cated within the jurisdiction of—
‘‘(I) in the case of a mortgage of
a 
mortgagor 
described 
in 
clause
(i)(I)(aa), the local educational agency
for the school in which the mortgagor
is employed (or, in the case of a mort-
gagor employed in a private school, the
local educational agency having juris-
diction for the area in which the pri-
vate school is located); or
‘‘(II) in the case of a mortgage of
a 
mortgagor 
described 
in 
clause
(i)(I)(bb), the jurisdiction served by the
public law enforcement agency, fire-
fighting agency, or rescue or ambu-
lance agency that employs the mort-
gagor.
‘‘(C) 
PROGRAM
INTEGRITY.—Notwith-
standing any other provision of this paragraph
and section 203(c)(3), the Secretary may sus-
pend the applicability of this paragraph and
such section for such period as the Secretary con-
siders appropriate if the Secretary determines
such suspension is necessary because of fraud or
other issues regarding program integrity.’’.
(b) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—Section 203(c) of the National Housing Act (12
U.S.C. 1709(c)) is amended—
(1) in paragraph (2), in the matter preceding
subparagraph (A), by striking ‘‘Notwithstanding’’
and inserting ‘‘Except as provided in paragraph (3)
and notwithstanding’’; and
(2) by adding at the end the following new para-
graph:
‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—In the case of any mortgage described in subsection
(b)(10)(B):
‘‘(A) Paragraph (2)(A) of this subsection (relat-
ing to collection of up-front premium payments) shall
not apply.
‘‘(B) If, at any time during the 5-year period be-
ginning on the date of the insurance of the mortgage,
the mortgagor ceases to be a teacher or public safety
officer (as such terms are defined in section 201) or
pays the principal obligation of the mortgage in full,
the Secretary shall at such time collect a single pre-
mium payment in an amount equal to the amount of
the single premium payment that, but for this para-
graph, would have been required under paragraph
(2)(A) of this subsection with respect to the mortgage,
as reduced by 20 percent of such amount for each suc-
cessive 12-month period completed during such 5-year
period before such cessation or prepayment occurs.’’.
(c) DEFINITIONS.—Section 201 of the National Hous-
ing Act (12 U.S.C. 1707) is amended—
(1) in subsection (a), by redesignating clauses
(1) and (2) as clauses (A) and (B), respectively;
(2) by redesignating subsections (a) through (f)
as paragraphs (1) through (6), respectively;
(3) by realigning each paragraph 2 ems from the
left margin; and
(4) by adding at the end the following new para-
graphs:
‘‘(7) The term ‘public safety officer’ has the
meaning given such term in section 1204 of the Om-
nibus Crime Control and Safe Streets Act of 1968 (42
U.S.C. 3796b).
‘‘(8) The term ‘teacher’ means an individual who
is employed on a part- or full-time basis as a teacher,
teacher assistant, or administrator in a public or pri-
vate school that provides elementary or secondary
education, as determined under State law, except that
elementary education shall include pre-Kindergarten
education, and except that secondary education shall
not include any education beyond grade 12.
‘‘(9) The term ‘local educational agency’ has the
meaning given such term in section 14101 of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 8801).’’.
(d) REGULATIONS.—Not later than 60 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement the amendments made by this sec-
tion.
SEC. 223. COMMUNITY PARTNERS NEXT DOOR PROGRAM.
(a) DISCOUNT AND DOWNPAYMENT ASSISTANCE FOR
TEACHERS
AND
PUBLIC
SAFETY
OFFICERS.—Section
204(h) of the National Housing Act (12 U.S.C. 1710(h))
is amended—
(1) by redesignating paragraphs (7) through (10)
as paragraphs (8) through (11), respectively; and
(2) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7) 50 PERCENT DISCOUNT FOR TEACHERS AND
PUBLIC SAFETY OFFICERS PURCHASING PROPERTIES
THAT ARE ELIGIBLE ASSETS.—
‘‘(A) DISCOUNT.—A property that is an eli-
gible asset and is sold, during fiscal years 2002
through 2006, to a teacher or public safety officer
for use in accordance with subparagraph (B)
shall be sold at a price that is equal to 50 per-
cent of the appraised value of the eligible prop-
erty (as determined in accordance with para-
graph (6)(B)). In the case of a property eligible
for both a discount under this paragraph and a
discount under paragraph (6), the discount
under paragraph (6) shall not apply.
‘‘(B) PRIMARY
RESIDENCE.—An eligible
property sold pursuant to a discount under this
paragraph shall be used, for not less than the 3-
year period beginning upon such sale, as the pri-
mary residence of a teacher or public safety offi-
cer.
‘‘(C) SALE METHODS.—The Secretary may
sell an eligible property pursuant to a discount
under this paragraph—
‘‘(i) to a unit of general local govern-
ment or nonprofit organization (pursuant
to paragraph (4) or otherwise), for resale or
transfer to a teacher or public safety officer;
or
‘‘(ii) directly to a purchaser who is a
teacher or public safety officer.
‘‘(D) RESALE.—In the case of any purchase
by a unit of general local government or non-
profit organization of an eligible property sold
at a discounted price under this paragraph, the
sale agreement under paragraph (8) shall—
‘‘(i) require the purchasing unit of gen-
eral local government or nonprofit organi-
zation to provide the full benefit of the dis-
count to the teacher or public safety officer
obtaining the property; and
‘‘(ii) in the case of a purchase involv-
ing multiple eligible assets, any of which is
such an eligible property, designate the spe-
cific eligible property or properties to be
subject to the requirements of subparagraph
(B).
‘‘(E) MORTGAGE
DOWNPAYMENT
ASSIST-
ANCE.—If a teacher or public safety officer pur-
chases an eligible property pursuant to a dis-
counted sale price under this paragraph and fi-
nances such purchase through a mortgage in-
sured under this title, notwithstanding any pro-
vision of section 203 the downpayment on such
mortgage shall be $100.
‘‘(F) PREVENTION OF UNDUE PROFIT.—The
Secretary shall issue regulations to prevent
undue profit from the resale of eligible properties
in violation of the requirement under subpara-
graph (B).
‘‘(G) DEFINITIONS.—For the purposes of
this paragraph, the following definitions shall
apply:
‘‘(i) The term ‘eligible property’ means
an eligible asset described in paragraph
(2)(A) of this subsection.
‘‘(ii) The terms ‘teacher’ and ‘public
safety officer’ have the meanings given such
terms in section 201.
‘‘(H) 
PROGRAM
INTEGRITY.—Notwith-
standing any other provision of this paragraph,
the Secretary may suspend the applicability of
this paragraph for such period as the Secretary
considers appropriate if the Secretary determines
such suspension is necessary because of fraud or
other issues regarding program integrity.’’.
(b) CONFORMING AMENDMENTS.—Section 204(h) of
the National Housing Act (12 U.S.C. 1710(h)) is
amended—
(1) in paragraph (4)(B)(ii), by striking ‘‘para-
graph (7)’’ and inserting ‘‘paragraph (8)’’;
(2) in paragraph (5)(B)(i), by striking ‘‘para-
graph (7)’’ and inserting ‘‘paragraph (8)’’; and
(3) in paragraph (6)(A), by striking ‘‘paragraph
(8)’’ and inserting ‘‘paragraph (9)’’.
(c) REGULATIONS.—Not later than 60 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement the amendments made by this sec-
tion.
SEC. 224. PUBLIC SAFETY OFFICER HOME OWNERSHIP IN
AT-RISK AREAS.
(a) PROGRAM AUTHORITY.—The Secretary of Housing
and Urban Development shall carry out a pilot program
in accordance with this section to assist Federal, State, and
local public safety officers purchasing homes in locally-des-
ignated at-risk areas.
(b) ELIGIBILITY.—To be eligible for assistance under
this section, a public safety officer shall agree, in writing,
to use the residence purchased with such assistance as the
primary residence of the public safety officer for not less
than 3 years after the date of purchase.
(c) MORTGAGE ASSISTANCE.—If a public safety officer
purchases a home in locally-designated at-risk area and fi-
nances such purchase through a mortgage insured under
title II of the National Housing Act (12 U.S.C. 1707 et
seq.), notwithstanding any provision of section 203 or any
other provision of the National Housing Act, the following
shall apply:
(1) DOWNPAYMENT.—
(A) IN GENERAL.—There shall be no down-
payment required if the purchase price of the
property is not more than the reasonable value
of the property, as determined by the Secretary.
(B) PURCHASE PRICE EXCEEDS VALUE.—If
the purchase price of the property exceeds the
reasonable value of the property, as determined
by the Secretary, the required downpayment
shall be the difference between such reasonable
value and the purchase price.
(2) CLOSING
COSTS.—The closing costs and
origination fee for such mortgage may be included in
the loan amount.
(3) INSURANCE PREMIUM PAYMENT.—There shall
be one insurance premium payment due on the mort-
gage. Such insurance premium payment—
(A) shall be equal to 1 percent of the loan
amount;
(B) shall be due and considered earned by
the Secretary at the time of the loan closing; and
(C) may be included in the loan amount
and paid from the loan proceeds.
(d) LOCAL DESIGNATION OF AT-RISK AREAS.—
(1) CRITERIA.—Any unit of local government
may request that the Secretary designate any area
within the jurisdiction of that unit of local govern-
ment as a locally-designated at-risk area for purposes
of this section if the proposed area—
(A) has a crime rate that is significantly
higher than the crime rate of the non-designated
area that is within the jurisdiction of the unit
of local government; and
(B) has a population that is not more than
25 percent of the total population of area within
the jurisdiction of the unit of local government.
(2) DEADLINE
FOR
CONSIDERATION
OF
RE-
QUEST.—Not later than 60 days after receiving a re-
quest under paragraph (1), the Secretary shall ap-
prove or disapprove the request.
(e) PUBLIC SAFETY OFFICER.—For purposes of this
section, the term ‘‘public safety officer’’ has the meaning
given such term in section 201 of the National Housing Act
(12 U.S.C. 1707) (as amended by section 222(c) of this Act).
(f) PROGRAM INTEGRITY.—Notwithstanding any other
provision of this section, the Secretary may suspend the ap-
plicability of this section for such period as the Secretary
considers appropriate if the Secretary determines such sus-
pension is necessary because of fraud or other issues regard-
ing program integrity.
(g) REGULATIONS.—Not later than 60 days after the
date of the enactment of this Act, the Secretary shall issue
regulations to implement the provisions of this section.
(h) SUNSET.—The Secretary shall not approve any
application for assistance under this section that is received
by the Secretary after the expiration of the 3-year period
beginning on the date that the Secretary first makes avail-
able assistance under the pilot program under this section.
SEC. 225. HYBRID ADJUSTABLE RATE MORTGAGES.
Section 251(d)(1)(C) of the National Housing Act (12
U.S.C. 1715z–16(d)(1)(C)) is amended by striking ‘‘five or
fewer years’’ and inserting ‘‘three or fewer years’’.
SEC. 226. UNIFORM NATIONAL LOAN LIMIT FOR HOME EQ-
UITY CONVERSION MORTGAGES.
Section 255(g) of the National Housing Act (12 U.S.C.
1715z–20(g)) is amended by striking ‘‘1-family residences
in the area in which the dwelling subject to the mortgage
under this section is located’’ and inserting ‘‘a 1-family res-
idence’’.
SEC. 227. PROHIBITION OF INVESTOR AND NONPROFIT
OWNERS UNDER REHABILITATION LOAN PRO-
GRAM.
Section 203(g)(2) of the National Housing Act (12
U.S.C. 1709(g)(2)) is amended—
(1) by striking subparagraph (E);
(2) in subparagraph (D), by inserting ‘‘or’’ after
the semicolon; and
(3) by redesignating subparagraph (F) as sub-
paragraph (E).
SEC. 228. REHABILITATION LOAN ADVANCES.
Section 203(k)(3) of the National Housing Act (12
U.S.C. 1709(k)(3)) is amended—
(1) by redesignating subparagraphs (C) and (D)
as subparagraphs (D) and (E), respectively; and
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C) involve a loan agreement containing such
terms and conditions as the Secretary shall provide,
including terms and conditions that provide that the
mortgagee shall be responsible for—
‘‘(i) choosing an inspector or consultant
who shall—
‘‘(I) meet the standards as the Sec-
retary shall establish; and
‘‘(II) be an agent of the mortgagee; and
‘‘(ii) approving advances under the loan;’’.
SEC. 229. NONPROFIT PURCHASERS UNDER PROPERTY DIS-
POSITION.
(a) IN GENERAL.—Section 204(g) of the National
Housing Act (12 U.S.C. 1710(g)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The Secretary shall require, as a condition of eli-
gibility of any nonprofit organization for participation in
any program of the Secretary for disposition of 1- to 4-
family properties acquired by the Secretary pursuant to
this 
Act, 
the 
Secretary 
shall 
require 
that 
such
organization—
‘‘(A) has nonprofit status as demonstrated by
approval under section 501(c)(3) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 501(c)(3)) or dem-
onstrates that an application for such status is cur-
rently pending approval; and
‘‘(B) provide the Secretary with a copy of the
application for such status;
‘‘(C) certify, on an annual basis, that the organi-
zation has been apprised of the applicable rules and
guidelines of the Department of Housing and Urban
Development and understands such rules and guide-
lines; and
‘‘(D) comply with such other requirements as the
Secretary may establish.’’.
(b) ASSETS IN REVITALIZATION AREAS.—Paragraph
(9)(D) of section 204(h) of the National Housing Act (12
U.S.C. 1710(h)(9)(D)), as so redesignated by the preceding
provisions of this Act, is amended—
(1) by striking clause (ii) and inserting the fol-
lowing new clause:
‘‘(ii)(I) has nonprofit status as dem-
onstrated 
by 
approval 
under 
section
501(c)(3) of the Internal Revenue Code of
1986 (26 U.S.C. 501(c)(3)) or demonstrates
that an application for such status is cur-
rently pending approval; and
‘‘(II) provides the Secretary with a
copy of the application for such status;’’;
(2) in clause (iii), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
clause:
‘‘(iv) certifies, on an annual basis, that
the organization has been apprised of the
applicable rules and guidelines of the De-
partment of Housing and Urban Develop-
ment and understands such rules and
guidelines.’’.
SEC. 230. EXTENSION OF HOLDING PERIOD.
(a) IN GENERAL.—Section 912(1) of the Housing and
Urban Development Act of 1970 (12 U.S.C. 1709–2(1)) is
amended by striking ‘‘one year’’ and inserting ‘‘18
months’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply only to defaults described in section
912(1) of the Housing and Urban Development Act of 1970
that occur after the date of the enactment of this Act.
SEC. 231. PILOT PROGRAM FOR MANDATORY FIRST-TIME
HOMEBUYER COUNSELING FOR PROPERTIES
IN HIGH FORECLOSURE NEIGHBORHOODS.
(a) IN GENERAL.—The Secretary shall carry out a
pilot program under this section to determine whether, and
the extent to which, requiring completion of a program
(that is approved by the Secretary) of counseling with re-
spect to the responsibilities and financial management in-
volved in homeownership by any first-time homebuyers pur-
chasing properties located in high foreclosure neighborhoods
with mortgages insured under section 203 of the National
Housing Act (12 U.S.C. 1709) will help to prevent defaults
and foreclosures on such mortgages.
(b) REQUIREMENT.—Notwithstanding any provision
of paragraph (2) of section 203(b) of the National Housing
Act (12 U.S.C. 1709(b)(2)), under the pilot program, dur-
ing the 1-year period beginning not later than 6 months
after the date of the enactment of this Act, as selected by
the Secretary, the Secretary may not insure, or enter into
a commitment to insure, a mortgage under such section 203
that is executed by a first-time homebuyer for a property
that is located in the pilot program area unless the mort-
gagor has completed a program of counseling with respect
to the responsibilities and financial management involved
in homeownership that is approved by the Secretary.
(c) PILOT PROGRAM AREA.—The Secretary shall select
a pilot program area for purposes of this section, which
shall be a single limited area, within the jurisdiction of a
single unit of general local government, for which the rate
of foreclosure on residences subject to mortgages insured
under such section 203 exceeds the lesser of—
(1) 150 percent of the national early default
claim rate for such residences; and
(2) the national early default claim rate for such
residences located within the area served by a field of-
fice of the Department of Housing and Urban Devel-
opment in whose area the pilot program area is lo-
cated.
(d) REPORT.—Not later than 30 months after the date
of the enactment of this Act, the Secretary of Housing and
Urban Development shall submit a report describing the ef-
fect of the requirement under subsection (b) on mortgage
defaults and foreclosures and any other effects of such re-
quirement, and making any recommendations regarding
implementation of the requirement on a nationwide basis.
SEC. 232. DISPOSITION OF ASSETS IN REVITALIZATION
AREAS.
The Secretary of Housing and Urban Development
shall continue to administer the Disposition of Assets in
Revitalization Areas program as provided in section 602
of Public Law 105–276 and the Secretary shall renew all
contracts and enter into new contracts with eligible partici-
pants in a manner consistent with the requirements of such
section.
TITLE III—SUPPORTIVE HOUS-
ING FOR ELDERLY AND DIS-
ABLED FAMILIES
SEC. 
301. 
AUTHORIZATION 
OF 
APPROPRIATIONS 
FOR
GRANTS FOR REPAIRS TO FEDERALLY AS-
SISTED HOUSING FOR THE ELDERLY.
Section 202b of the Housing Act of 1959 (12 U.S.C.
1701q–2) is amended by striking subsection (h) and insert-
ing the following new subsection:
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for grants for capital repair
activities under subsection (a)(1) and for grants for conver-
sion activities under subsection (a)(2) such sums as may
be necessary for each of fiscal years 2003 and 2004.’’.
SEC. 
302. 
SERVICE 
COORDINATORS 
FOR 
SUPPORTIVE
HOUSING FOR PERSONS WITH DISABILITIES.
Section 683(2) of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 13641(2)) is amended—
(1) in subparagraph (F), by striking ‘‘and’’ at
the end;
(2) in subparagraph (G), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(H) housing that is assisted under section
811 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 8013).’’.
SEC. 303. DEMONSTRATION PROGRAM FOR ELDERLY HOUS-
ING FOR INTERGENERATIONAL FAMILIES.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall carry out a demonstration pro-
gram 
to 
determine 
the 
feasibility 
of 
providing
intergenerational dwelling units for intergenerational fami-
lies in connection with the supportive housing program
under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q).
(b) INTERGENERATIONAL DWELLING UNITS.—Under
the demonstration program, the Secretary shall provide as-
sistance under this section to private nonprofit organiza-
tions (as such term is defined in section 202(k) of the Hous-
ing Act of 1959 (12 U.S.C. 1701q(k)) for use only for ex-
panding the supply of intergenerational dwelling units,
which units shall be provided—
(1) by designating and retrofitting, for use as
intergenerational dwelling units, existing dwelling
units that are located within a project assisted under
such section 202;
(2) through development of buildings or projects
comprised solely of intergenerational dwelling units;
or
(3) through the development of an annex or addi-
tion to such an existing project assisted under such
section 202, which contains intergenerational dwell-
ing units, including through the development of elder
cottage housing opportunity units that are small, free-
standing, 
barrier-free, 
energy-efficient, 
removable
dwelling units located adjacent to a larger project or
dwelling.
(c) PROGRAM TERMS.—Assistance provided pursuant
to this section shall be subject to the provisions of section
202 of the Housing Act of 1959 (12 U.S.C. 1701q), except
that—
(1) notwithstanding subsection (d)(1) of such sec-
tion or any provision of such section restricting occu-
pancy to elderly persons, any intergenerational dwell-
ing unit assisted under the demonstration program
may be occupied as provided in subsection (e)(2) of
this section;
(2) subsections (e) and (f) of such section 202
(relating to applications and selection criteria) shall
not apply;
(3) in addition to the requirements under sub-
section (g) of such section 202, the Secretary of Hous-
ing and Urban Development shall ensure that occu-
pants of dwelling units assisted under the demonstra-
tion program are provided a range of services tailored
to the needs of elderly persons, children, and
intergenerational families and shall coordinate with
the heads of other Federal agencies as may be appro-
priate to ensure the provision of such services; and
(4) the Secretary may waive or alter any other
provision of such section 202 necessary to provide for
assistance under the demonstration program under
this section.
(d) SELECTION.—The Secretary of Housing and
Urban Development shall provide for private nonprofit or-
ganizations to submit applications for assistance under this
section and, during the period consisting of fiscal years
2003 through 2006 shall, to the extent amounts are avail-
able pursuant to subsection (g), select not less than 2 and
not more than 4 projects assisted under section 202 of the
Housing Act of 1959 for such assistance based on the ability
of the applicant to develop and operate intergenerational
dwelling units and national geographical diversity among
projects funded.
(e) DEFINITIONS.—For purposes of this section:
(1) ELDERLY PERSON.—The term ‘‘elderly per-
son’’ has the meaning given such term in section
202(k) of the Housing Act of 1959 (12 U.S.C.
1701q(k)).
(2) INTERGENERATIONAL DWELLING UNIT.—The
term ‘‘intergenerational dwelling unit’’ means a
qualified dwelling unit (as such term is defined in
section 8(x)(4) of the United States Housing Act of
1937 (42 U.S.C. 1437f(x)(4))) that is reserved for oc-
cupancy only by an intergenerational family.
(3) INTERGENERATIONAL
FAMILY.—The term
‘‘intergenerational family’’ means a covered family
(as such term is defined in section 8(x)(4) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(x)(4))) that has a head of household who is an
elderly person.
(f) REPORT.—Not later than 36 months after the date
of the enactment of this Act, the Secretary of Housing and
Urban Development shall submit a report to the Congress
describing the demonstration program under this section
and analyzing the effectiveness of the program.
(g) FUNDING.—Of any amounts made available for as-
sistance under section 202 of the Housing Act of 1959 (12
U.S.C. 1701q) for each of fiscal years 2003 through 2006,
the Secretary of Housing and Urban Development shall re-
serve amounts in such fiscal years as may be necessary to
fund the demonstration projects selected under subsection
(d). Such amounts shall be available for use only for pro-
viding assistance under this section.
SEC. 304. TREATMENT OF PROJECTS SUBJECT TO FORE-
CLOSURE.
(a) IN GENERAL.—In the case of any project assisted
with a loan under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q), as in effect before the enactment of the
Cranston-Gonzalez National Affordable Housing Act, not-
withstanding any foreclosure on the loan, any use restric-
tions applicable to the project regarding occupancy by el-
derly or handicapped families or the maximum income of
families occupying dwelling units in the project shall con-
tinue to apply after such foreclosure until the expiration
of the original term of such loan.
(b) INCOME LIMITS.—Notwithstanding subsection (a),
in the case of a project assisted with a loan described in
such subsection, after foreclosure on such loan any max-
imum income limit for families occupying dwelling units
in the project may be increased to not more than 80 percent
of the median income for the area if such action is necessary
to ensure the financial soundness of the project.
(c) TRANSFER TO QUALIFIED NON-PROFIT ORGANIZA-
TIONS.—In the case of the sale or other disposition of a
project assisted with a loan described in subsection (a) pur-
suant to foreclosure on such loan, the Secretary of Housing
and Urban Development shall provide a reasonable period
during which only qualified nonprofit organizations (as
such term is defined by the Secretary) shall have a right
of first refusal to purchase the property.
(d) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue any regulations necessary
to carry out this section.
TITLE IV—SECTION 8 RENTAL
HOUSING ASSISTANCE PRO-
GRAM
SEC. 401. HOUSING VOUCHER DEMONSTRATION.
(a) IN GENERAL.—For fiscal years 2003 and 2004,
there is authorized to be appropriated to provide incre-
mental assistance for project-based vouchers under section
8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) the amount necessary to provide a total of 5,000 such
incremental vouchers. Vouchers provided pursuant to this
section shall be used exclusively for extremely low-income
families in connection with dwelling units in newly con-
structed or substantially rehabilitated housing.
(b) EXTREMELY LOW-INCOME FAMILIES.—For pur-
poses of this section, the term ‘‘extremely low-income fami-
lies’’ means families (as such term is defined in section 3(b)
of the United States Housing Act of 1937 (42 U.S.C.
1437a(b))) whose incomes do not exceed the higher of—
(1) 30 percent of the area median income, as de-
termined by the Secretary with adjustments for small-
er and larger families and for unusually high or low
family incomes; or
(2) 30 percent of the national non-metropolitan
median income.
SEC. 402. FLEXIBILITY TO ASSIST HARD-TO-HOUSE FAMI-
LIES.
(a) IN GENERAL.—Section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by
adding at the end the following new paragraph:
‘‘(19) FLEXIBILITY TO ASSIST HARD-TO-HOUSE
FAMILIES.—In any program year, a public housing
agency that is not designated as troubled pursuant to
the section 8 management assessment program, or
under such other program as may be used by the Sec-
retary to evaluate performance of public housing
agencies in administering rental assistance under this
section, may use up to 2 percent of any amounts allo-
cated to the agency for such year for purposes that di-
rectly support the agency’s housing choice voucher
program, including housing counseling, downpayment
assistance under subsection (y), rental security depos-
its for families receiving voucher assistance, and other
activities that directly assist eligible families in gain-
ing and maintaining occupancy in suitable dwelling
units.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply only with respect to amounts appro-
priated for fiscal year 2003 or any fiscal year thereafter.
SEC. 403. CLARIFICATION ON PROHIBITION OF RE-SCREEN-
ING OF TENANTS.
Section 8(t)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437f(t)(1)) is amended—
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) a family’s eligibility to receive such
assistance shall be determined pursuant to the
provisions of law authorizing or requiring the
provision of enhanced voucher assistance pursu-
ant to the eligibility event that affected such
family and a family may not be required, as a
condition of receiving such assistance, to qualify
under the selection standards of a public housing
agency for voucher assistance under this sec-
tion.’’.
SEC. 404. PHA ADMINISTRATIVE FEES.
Section 8(q) of the United States Housing Act of 1937
(42 U.S.C. 1437f(q)) is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and
(2) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) PERFORMANCE INCENTIVE.—For fiscal year
2003 and fiscal years thereafter, the Secretary may
pay an additional fee to any public housing agency
that succeeds in achieving high or substantially im-
proved performance on specified program require-
ments or program goals, as established under the
management assessment program for the rental assist-
ance program under this section, or any successor as-
sessment program for such assistance, or by regula-
tion issued by the Secretary after notice and oppor-
tunity for public comment pursuant to the provisions
of section 553 of title 5, United States Code (notwith-
standing subsections (a)(2), (b)(B), and (d)(3) of such
section). The Secretary shall establish limitations on
the total amount of any such additional fees paid to
agencies for a fiscal year and on the amount of any
such fee paid to any single agency for a fiscal year.’’.
SEC. 405. ENSURING ABILITY TO USE ENHANCED VOUCH-
ERS.
Section 8(t) of the United States Housing Act of 1937
(42 U.S.C. 1437f(t)) is amended—
(1) by redesignating paragraph (4) as para-
graph (6); and
(2) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(5) RIGHT TO USE.—The owner of a multi-
family housing project for which an eligibility event
(as such term is defined in paragraph (2)) has oc-
curred may not refuse—
‘‘(A) to accept enhanced voucher assistance
for lease of a dwelling unit in the same project
on behalf of a family who was residing in the
project upon the occurrence of such eligibility
event; or
‘‘(B) to enter into a housing assistance pay-
ments contract for such a unit.’’.
SEC. 406. TREATMENT OF OVERHOUSED ASSISTED FAMI-
LIES.
Paragraph (6) of section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(6)) is amended
by adding at the end the following new subparagraph:
‘‘(D) 
RESIDENCY
IN
INAPPROPRIATELY
SIZED UNITS.—
‘‘(i) IN GENERAL.—If a public housing
agency determines that a family assisted
under this subsection is residing in a dwell-
ing unit that, because of a reduction in
family size after such assistance was ini-
tially provided for such family, has more
bedrooms than is appropriate for a family
of such size, the agency may not terminate
the assistance for the family or require the
family to move to another dwelling unit
unless—
‘‘(I) the agency provides the fam-
ily with a dwelling unit that is located
in the same building or project as the
inappropriately sized dwelling unit
and is available for occupancy; or
‘‘(II) in the case of a family resid-
ing in a dwelling unit in a building or
project that does not contain any
available dwelling unit having a num-
ber of bedrooms that is appropriate for
size of such family, the agency provides
the family with a dwelling unit that
is located within the same neighbor-
hood as the building containing the in-
appropriately sized dwelling unit.
‘‘(ii) DETERMINATION
OF
NEIGHBOR-
HOOD.—For purposes of clause (i)(II), the
term ‘neighborhood’ means the immediate
geographic area in which a building is lo-
cated, which—
‘‘(I) is characterized by all loca-
tions within the area having a similar
proximity to major roadways, mass
transit facilities, and other means of
transportation, schools, child care fa-
cilities, workplace centers, and grocery
stores and other retail and commercial
facilities; and
‘‘(II) shall be determined by the
public housing agency involved, in con-
sultation with the appropriate resident
advisory board established pursuant to
section 5A(e).
‘‘(iii) TREATMENT OF STUDENTS.—For
purposes of clause (i), the absence of a child
or adult from a dwelling because of tem-
porary residence in another location for the
purpose of attending school on a full- or
part-time basis shall not be considered in
determining family size.’’.
SEC. 407. EXTENSION OF MANUFACTURED HOUSING DEM-
ONSTRATION PROGRAM.
Section 557 of the Quality Housing and Work Respon-
sibility Act of 1998 (Public Law 105–276; 112 Stat. 2613)
is amended—
(1) in subsection (a), by striking ‘‘1999, 2000,
and 2001’’ and inserting ‘‘2002, 2003, and 2004’’;
and
(2) in subsection (c)—
(A) by striking ‘‘REPORT’’ and inserting
‘‘REPORTS’’;
(B) by striking ‘‘a report’’ and inserting
‘‘an interim report’’;
(C) by striking ‘‘and evaluating’’ and in-
serting ‘‘the implementation and operation of’’;
and
(D) by adding at the end the following new
sentence: ‘‘Not later than March 31, 2005, the
Secretary shall submit a report to the Congress
describing and evaluating the demonstration
program under this section.’’.
SEC. 408. EXTENSION OF PROJECT-BASED SECTION 8 CON-
TRACT RENEWALS.
(a) RENEWAL OF EXPIRING PROJECT-BASED SECTION
8 CONTRACTS.—Section 524 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended—
(1) in subsection (a)(4)(A)(iv)—
(A) in subclause (I), by inserting ‘‘or’’ after
the semicolon;
(B) by striking subclause (II); and
(C) by redesignating subclause (III) as sub-
clause (II); and
(2) by striking paragraph (3) of subsection (b).
(b) ADJUSTMENTS FOR COVERED PROJECTS.—
(1) RENT DETERMINATION AT INITIAL RENEWAL
AFTER ENACTMENT.—Upon the first request for re-
newal of project-based assistance pursuant to section
524 after the date of enactment of this Act by an
owner of a covered housing project—
(A) the rent levels at which assistance will
be provided pursuant to such renewal will be de-
termined as if such renewal were the initial re-
newal of a contract for assistance under section
524, as amended by subsection (a) of this section;
and
(B) solely for purposes of determining the
rent levels at which assistance will be provided
pursuant to such first renewal after the date of
enactment of this Act, in the case of a project for
which contract rents were reduced on a prior re-
newal of an expiring contract pursuant to sub-
section (b)(3) of section 524, as in effect on the
day before the date of enactment of this Act, the
contract rent levels in effect immediately prior to
such first renewal after the date of enactment of
this Act shall be considered to be the deemed rent
levels described in paragraph (3)(C).
(2) RENT
ADJUSTMENTS
AFTER
INITIAL
RE-
NEWAL AFTER ENACTMENT.—After the first renewal of
a contract for assistance of a covered project after the
date of enactment of this Act in accordance with
paragraph (1) of this subsection, the Secretary shall
adjust rents in accordance with section 524(c).
(3) DEFINITIONS.—In this subsection—
(A) references to ‘‘section 524’’ or any sub-
division thereof are references to section 524 of
the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note);
(B) the term ‘‘covered housing project’’
means a project that receives project-based assist-
ance under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f) which was re-
newed prior to the date of enactment of this Act
pursuant to subsection (b)(3) of section 524, as
in effect on the day before the date of enactment
of this Act;
(C) the term ‘‘deemed rent levels’’ means the
contract rent levels in effect immediately prior to
the first renewal of assistance pursuant to sub-
section (b)(3) of section 524, as in effect on the
day before the date of enactment of this Act,
upon which contract rent levels were reduced, as
adjusted by the applicable operating cost adjust-
ment factor established by the Secretary at the
date of such renewal and at the date of any sub-
sequent renewal pursuant to subsection (b)(3) of
section 524 occurring before the date of enact-
ment of this Act; and
(D) the term ‘‘Secretary’’ means the Sec-
retary of Housing and Urban Development.
SEC. 409. INSPECTION OF UNITS.
Section 8(o)(8) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(8)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘(A) IN GENERAL.—Except
as provided in paragraph (11),’’ and inserting
the following:
‘‘(A) GENERAL RULE.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii) and paragraph (11),’’; and
(B) by inserting at the end the following:
‘‘(ii) EXCEPTION.—A public housing
agency may commence payments to an
owner, if the public housing agency—
‘‘(I) has conducted an inspection
of the building, which includes an in-
spection of a reasonable number of
units in the 6 months prior to the date
on which payment is made to the
owner, and that inspection and any
subsequent unit inspections have not
turned up major deficiencies;
‘‘(II) conducts an inspection of
the unit for which the payment is
being made not later than 30 days
after the date for which payment is
made to the owner; and
‘‘(III) has an agreement with the
owner to correct any deficiencies and
make any repairs in the unit not later
than 30 days after the date on which
the inspection was made under sub-
clause (II).’’; and
(2) in subparagraph (D)—
(A) by striking ‘‘(D) ANNUAL
INSPEC-
TIONS.—Each’’ and inserting the following:
‘‘(D) ANNUAL INSPECTIONS.—
‘‘(i) IN GENERAL.—Except as provided
in clause (ii), each’’; and
(B) by adding at the end the following:
‘‘(ii) EXCEPTION.—If a public housing
agency has a large jurisdiction and is con-
ducting inspections on a geographical basis,
the public housing agency may comply with
the annual inspection requirement by in-
specting the unit within 9 to 15 months of
the previous inspection.’’.
SEC. 410. ESCROW OF TENANT RENT IN CASES OF OWNER
FAILURE TO MAINTAIN UNIT.
Section 8(o)(8) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(8)) is amended by adding at the
end the following new subparagraph:
‘‘(F) ESCROW OF TENANT RENT IN CASES
OF OWNER FAILURE TO MAINTAIN UNIT.—Each
housing assistance payment contract under this
subsection shall provide as follows:
‘‘(i) REQUIREMENT.—In any case in
which a public housing agency suspends as-
sistance payments under this subsection
with respect to a dwelling unit because of a
failure on the part of the owner of the unit
to maintain the unit in compliance with
the housing quality standards established
pursuant to this paragraph, the agency
shall—
‘‘(I) require the tenant to suspend
payment to the owner of the tenant’s
monthly contribution toward rent and
require the tenant to pay such amount
into an escrow account established by
the agency; and
‘‘(II) notify the tenant and the
owner of the failure to maintain the
unit in compliance with such housing
quality standards and of the actions
required under this subparagraph.
‘‘(ii) CORRECTION
OF
NONCOMPLI-
ANCE.—If the owner corrects the noncompli-
ance within the period of time established
by the agency for such purpose, the public
housing agency shall release to the owner
any tenant payments toward rent deposited
in the escrow account.
‘‘(iii) FAILURE
TO
CORRECT
NON-
COMPLIANCE.—If the owner fails to correct
the noncompliance within the period of time
established by the agency and the tenant
moves from the dwelling unit because of
such noncompliance, the public housing
agency shall make any tenant payments to-
ward rent that are deposited in the escrow
account available on behalf of the tenant
upon such move for costs of the move and
for rental of a new dwelling unit.’’.
SEC. 411. PROJECT-BASED VOUCHERS MODIFICATIONS.
(a) IN GENERAL.—Section 8(o)(13) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is
amended—
(1) in subparagraph (C)(ii), by inserting before
the period at the end the following: ‘‘, revitalizing a
low-income community, or preventing the displace-
ment of extremely low-income families’’;
(2) in subparagraph (D)(ii), by striking ‘‘apply
in the case of’’ and all that follows through the period
and inserting the following: ‘‘apply—
‘‘(I) in the case of assistance
under a contract for housing consisting
of single family properties (buildings
with 1 to 4 units);
‘‘(II) for dwelling units that are
specifically made available for house-
holds comprised of elderly families or
disabled families; or
‘‘(III) outside of a qualified cen-
sus tract, for buildings with 5 to 25
units or with dwelling units that are
specifically made available for families
receiving supportive services.
For purposes of this clause, the term ‘quali-
fied census tract’ has the same meaning
given that term in section 42(d) of the In-
ternal Revenue Code of 1986 (26 U.S.C.
42(d)). The Secretary may waive the limi-
tations of this clause, consistent with the ob-
ligation to affirmatively further fair hous-
ing practices.’’;
(3) in subparagraph (F), by striking ‘‘10 years’’
and inserting ‘‘15 years’’;
(4) in subparagraph (J)—
(A) in the first sentence, by inserting before
the period the following: ‘‘, or from 1 or more
separate project-based waiting lists established
and maintained in accordance with subpara-
graph (K). A public housing agency may permit
an owner to select families from a waiting list
for units assisted under this paragraph main-
tained by the owner in accordance with subpara-
graph (L). Regardless of whether a waiting list
is maintained under this subparagraph or under
subparagraph (K) or (L), families shall initially
be selected from the public housing agency’s
waiting list for assistance under this subsection
for at least 1⁄2 of the vacant units in a building
made available with assistance under this para-
graph, unless the units are restricted, under the
tenant selection preferences adopted under the
annual plan submitted by the public housing
agency to the Secretary pursuant to section
5A(b), to occupancy by persons who are receiving
intensive publicly funded services and who have
a disability, as defined in section 3 of this Act
or section 422 of the McKinney-Vento Homeless
Assistance Act’’;
(B) in the fifth sentence, by inserting before
the period the following: ‘‘, unless the owner
maintains a waiting list under subparagraph
(L)’’; and
(C) in the last sentence, by striking ‘‘and
may maintain’’ and all that follows through ‘‘on
the separate list’’;
(5) by redesignating subparagraph (K) as sub-
paragraph (M); and
(6) by inserting after subparagraph (J) the fol-
lowing:
‘‘(K) PUBLIC
HOUSING
AGENCY
WAITING
LIST.—
‘‘(i) IN GENERAL.—A public housing
agency may select families for assistance—
‘‘(I) under subparagraph (J);
‘‘(II) under this subparagraph for
each property that receives assistance
under this paragraph; or
‘‘(III) under this subparagraph
for similar properties that receive as-
sistance under this paragraph.
‘‘(ii) REQUIREMENTS.—A public hous-
ing agency that maintains a separate wait-
ing list under this subparagraph—
‘‘(I) shall provide notice of the
opening of the waiting list in the same
manner required by the Secretary for
the provision of notice of the opening of
the waiting list for tenant-based assist-
ance under this subsection, except that
this subclause shall not apply to units
assisted under this paragraph that are
restricted, under tenant selection pref-
erences adopted under the annual plan
submitted by the public housing agency
to the Secretary pursuant to section
5A(b) to occupancy by persons who are
receiving intensive publicly funded
services and who have a disability, as
defined in section 3 of this Act or sec-
tion 422 of the McKinney-Vento Home-
less Assistance Act;
‘‘(II) shall give preference to fami-
lies on its tenant-based waiting list, if
families are applying at the equivalent
time and date with otherwise equiva-
lent preference under the annual plan
submitted by the public housing agency
to the Secretary pursuant to section
5A(b); and
‘‘(III) shall notify families that
are applying for tenant-based assist-
ance of the opportunity to be listed on
the waiting list maintained under this
subparagraph.
‘‘(L) OWNER WAITING LIST.—
‘‘(i) IN GENERAL.—A public housing
agency may allow an owner of a structure
with a contract for assistance under this
paragraph to maintain a waiting list for
units assisted under this paragraph.
‘‘(ii) AGENCY PLAN.—The policy for a
waiting list maintained under this sub-
paragraph and any applicable preferences
or selection criteria shall be included in the
annual plan submitted by the public hous-
ing agency to the Secretary in accordance
with section 5A(b).
‘‘(iii) AGENCY
RESPONSIBILITIES.—If
a waiting list is maintained under this sub-
paragraph, the public housing agency
shall—
‘‘(I) provide notice of the opening
of the waiting list in the same manner
and to the same extent as is required
of the agency under subparagraph
(K)(ii)(I);
‘‘(II) notify families that apply
for tenant-based assistance of the op-
portunity to be listed on that waiting
list;
‘‘(III) establish a mechanism to
transmit applications submitted at its
office to the owner for placement on
that waiting list; and
‘‘(IV) monitor, at reasonable in-
tervals, the compliance by the owner
with laws applicable to tenant selection
and waiting lists, including civil
rights laws, regulations, and certifi-
cations.
‘‘(iv) OWNER RESPONSIBILITIES.—If a
waiting list is maintained under this sub-
paragraph, the owner of the structure
shall—
‘‘(I) provide notice of the opening
of the waiting list (unless the public
housing agency agrees to provide such
notice for the owner, or notice is not
required pursuant to clause (iii)(I))
and provide preference to families on
the tenant-based waiting list of the
public housing agency in the same
manner as is required under subpara-
graph (K);
‘‘(II) place on its waiting list,
families that apply at an office of the
agency that accepts applications for
tenant-based assistance;
‘‘(III) cooperate with requests of
the public housing agency for informa-
tion concerning the waiting list and
the tenant selection decisions of the
owner; and
‘‘(IV) submit written tenant selec-
tion policies and criteria to the public
housing agency for approval, and make
those policies and criteria available to
the public.
‘‘(v) RIGHT TO INFORMAL REVIEW.—A
family that is denied a unit by an owner
that maintains a waiting list under this
subparagraph shall have the same rights to
informal review by a public housing agency
as a family that is denied tenant-based as-
sistance by a public housing agency, and
such review shall be performed expeditiously
so as not to impede the timely rental of
units. The public housing agency’s review at
the informal hearing shall be limited to de-
termining if the owner, if denying admis-
sion, followed applicable law and the proce-
dures and criteria adopted by the owner
and approved by the public housing agency
for determining the eligibility of applicants
for admission.
‘‘(vi) APPLICABILITY.—Except as pro-
vided in this subparagraph, a waiting list
maintained by an owner shall be considered
to be a waiting list maintained by a public
housing agency for assistance under this
subsection.
‘‘(vii) LIMITATION OF LIABILITY.—No
right of action shall exist against a public
housing agency with respect to an owner’s
violation of any applicable law, unless the
agency has actual knowledge that such vio-
lation has occurred or is occurring and—
‘‘(I) the agency has failed to take
action to cause the owner to cease such
violation; or
‘‘(II) the public housing agency
has failed to comply with its respon-
sibilities under clause (iii).’’; and
(7) by adding at the end the following:
‘‘(N) FAIR
HOUSING, SUBSIDY
LAYERING,
AND COMPETITIVE SELECTION REQUIREMENTS.—
A public housing agency may attach assistance
under this paragraph to units without specific
approval by the Secretary of compliance with
fair housing, subsidy layering, or competitive se-
lection requirements, if—
‘‘(i) for fair housing compliance, the
units proposed to receive assistance under
this paragraph receive a grant or a loan
under a Federal program pursuant to
which the Secretary, or a designee of the
Secretary, has determined in accordance
with regulations that the site location would
meet applicable civil rights and fair hous-
ing requirements;
‘‘(ii) for compliance with subsidy
layering requirements, consistent with the
written policy of the Secretary, the public
housing agency or another public agency
has determined that addition of subsidies
under this paragraph would not duplicate
other public funding; or
‘‘(iii) for compliance with competitive
selection requirements, an advertisement for
capital funds announced the potential for
availability of assistance under this para-
graph.
‘‘(O) USE OF ASSISTANCE IN CONJUNCTION
WITH PUBLIC HOUSING CAPITAL FUNDS.—
‘‘(i) CAPITAL FUND AND HOPE VI.—
Notwithstanding any provision to the con-
trary in this Act, a public housing agency
may attach assistance under this paragraph
to a structure or unit that receives assist-
ance allocated to the public housing agency
under the Capital Fund, established by sec-
tion 9(d), or under section 24.
‘‘(ii) OPERATING FUND.—A unit that
receives assistance under this paragraph
shall not be eligible for assistance under the
Operating Fund established by section
9(e).’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—This section and the amend-
ments made by this section shall take effect upon the
date of enactment of this Act (with such minor excep-
tions as the Secretary may specify).
(2) RULES.—The Secretary shall promulgate
rules, as may be necessary, to carry out section
8(o)(13) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)(13)), as amended by this Act, and
shall publish—
(A) proposed rules not later than 6 months
after the date of enactment of this Act; and
(B) final rules not later than 1 year after
the date of enactment of this Act.
100
SEC. 412. EXPANDED USE OF ENHANCED VOUCHERS.
(a) IN GENERAL.—Section 8(t) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(t)), as amended by
the preceding provisions of this title, is further amended—
(1) in paragraph (1), in the matter preceding
subparagraph (A), by striking ‘‘Enhanced’’ and in-
serting ‘‘Except as provided in paragraph (2), en-
hanced’’; and
(2) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(3) by inserting after paragraph (1) the fol-
lowing new paragraph:
‘‘(2) ENHANCED VOUCHERS FOR RESIDENTS OF
UNITS NOT AVAILABLE FOR CONTINUED RENTAL.—
‘‘(A) VOUCHER ASSISTANCE.—In the case of
a family who is eligible for enhanced voucher as-
sistance under this subsection and who, on the
date of the eligibility event resulting in such
family’s eligibility, is residing in a dwelling
unit that is unavailable for continued rental as
provided in subparagraph (B) as a result of such
event, enhanced voucher assistance under this
subsection for the family shall be voucher assist-
ance under subsection (o), except that under such
enhanced voucher assistance—
101
‘‘(i) subject only to clause (iv), the as-
sisted family shall pay as rent no less than
the amount the family was paying on the
date of the eligibility event for the project;
‘‘(ii) the assisted family may elect to
reside in any other dwelling unit that is lo-
cated within the zip code in which is lo-
cated the project in which the family was
residing on the date of the eligibility event
for the project or within a zip code contig-
uous to such zip code, and if, during any
period after such election that the family
continues to reside, the rent for the dwelling
unit of the family exceeds the applicable
payment standard established pursuant to
subsection (o) for the unit, the amount of
rental assistance provided on behalf of the
family shall be determined using a payment
standard that is equal to the rent for the
dwelling unit (as such rent may be in-
creased from time-to-time), except that—
‘‘(I) such rent shall be subject to
paragraph (10)(A) of subsection (o);
‘‘(II) such payment standard shall
not exceed the greater of 150 percent of
102
the applicable fair market rents or 150
percent of the applicable payment
standard for the market area; and
‘‘(III) subject only to the limit in
subclause (II), such payment standard
shall not adversely affect such assisted
families;
‘‘(iii) clause (ii) of this subparagraph
shall not apply and the payment standard
for the dwelling unit occupied by the family
shall be determined in accordance with sub-
section (o) if—
‘‘(I) the assisted family moves, at
any time, to a dwelling unit that is
not located within (aa) the zip code
within which is located the project in
which the family was residing on the
date of the eligibility event for the
project, or (bb) a zip code contiguous
to such zip code; or
‘‘(II) the voucher is made avail-
able for use by any family other than
the original family on behalf of whom
the voucher was provided; and
103
‘‘(iv) if the income of the assisted fam-
ily declines to a significant extent, the per-
centage of income paid by the family for
rent shall not exceed the greater of 30 per-
cent or the percentage of income paid at the
time of the eligibility event for the project.
‘‘(B) UNAVAILABILITY
DUE
TO
CONVER-
SION.—A dwelling unit shall be considered to be
unavailable for continued rental as provided in
this subparagraph if the eligibility event for the
project occurs in connection with a conversion of
the unit to condominium, cooperative, or com-
mercial use, after having obtained all necessary
land use approvals.’’.
(b) APPLICABILITY.—No funds for enhanced vouchers
under section 8(t)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437f(t)(2)), as added by the amendments
made by subsection (a) of this section, shall be provided
from amounts appropriated for fiscal years prior to fiscal
year 2003.
(c) REGULATIONS.—Not later than 180 days after the
date of the enactment of this Act, the Secretary shall issue
regulations necessary to carry out the amendment made by
subsection (a).
104
SEC. 413. DEMONSTRATION PROGRAM FOR RENTAL ASSIST-
ANCE FOR GRANDPARENT-HEADED OR REL-
ATIVE-HEADED FAMILIES.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall carry out a demonstration pro-
gram to determine the feasibility of providing rental assist-
ance under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f) for the rental of suitable dwelling
units by covered families.
(b) ELIGIBLE UNITS.—Under the demonstration pro-
gram, the Secretary shall make rental assistance amounts
reserved pursuant to subsection (f) of this section available
to public housing agencies selected to participate in the pro-
gram for use only for assistance on behalf of covered fami-
lies renting qualified dwelling units. Such a public housing
agency may not initially provide voucher assistance under
this section for any family after the end of fiscal year 2006.
(c) SERVICES.—The Secretary of Housing and Urban
Development shall require any public housing agency par-
ticipating in the demonstration program under this section
to ensure that families receiving rental assistance pursuant
to this section are provided with supportive services that
are tailored to the needs of children and covered families.
The Secretary shall coordinate with the heads of other Fed-
eral agencies as may be appropriate to assist in ensuring
the provision of such services.
105
(d) SELECTION.—The Secretary of Housing and
Urban Development shall provide for public housing agen-
cies to apply to participate in the demonstration program
under this section and, during the period consisting of fiscal
years 2003 through 2006 shall, to the extent amounts are
available pursuant to subsection (f), select not less than two
and not more than four agencies for such participation
based on the ability of the applicant to provide assistance
and services under the program and national geographical
diversity among agencies participating in the program.
(e) REPORT.—Not later than 18 months after the date
of the enactment of this Act, the Secretary of Housing and
Urban Development shall submit a report to the Congress
describing the demonstration program under this section
and analyzing the effectiveness of the program.
(f) FUNDING.—Of any amounts made available for
voucher assistance under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) for fiscal year
2003 and fiscal years thereafter, the Secretary of Housing
and Urban Development shall reserve such amounts in such
fiscal years as may be necessary to provide voucher assist-
ance for the agencies selected under subsection (d) for use
only for providing assistance under this section.
106
SEC. 414. ELIGIBILITY OF GRANDPARENT-HEADED AND
RELATIVE-HEADED 
FAMILIES 
FOR 
FAMILY
UNIFICATION ASSISTANCE.
Section 8(x) of the United States Housing Act of 1937
(42 U.S.C. 1437f(x)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘section 8’’ and inserting
‘‘this section’’;
(B) by striking ‘‘and’’ before ‘‘(B)’’ and in-
serting a comma; and
(C) by inserting before the period at the end
the following: ‘‘, or (C) a covered family, who is
otherwise eligible for such assistance, for rental
of a qualified dwelling unit’’;
(2) in the second sentence of paragraph (3)—
(A) by inserting ‘‘, as appropriate (A)’’
after ‘‘containing’’; and
(B) by inserting before the period at the end
the following: ‘‘, or (B) a description of the need
for assistance under this subsection for covered
families’’; and
(3) in paragraph (4), by adding at the end the
following new subparagraphs:
‘‘(C) CHILD.—The term ‘child’ means an
individual who—
107
‘‘(i) is not attending school and is not
more than 18 years of age; or
‘‘(ii) is attending school and is not
more than 19 years of age.
‘‘(D) COVERED FAMILY.—The term ‘covered
family’ means a family that—
‘‘(i) includes a child; and
‘‘(ii) has a head of household who is—
‘‘(I) a grandparent of the child
who is raising the child; or
‘‘(II) a relative of the child who is
raising the child.
‘‘(E) GRANDPARENT.—The term ‘grand-
parent’ means, with respect to a child, an indi-
vidual who is a grandparent or stepgrandparent
of the child by blood or marriage, regardless of
the age of such individual. In the case of a child
who was adopted, the term includes an indi-
vidual who, by blood or marriage, is a grand-
parent or stepgrandparent of the child as adopt-
ed.
‘‘(F) QUALIFIED
DWELLING
UNIT.—The
term ‘qualified dwelling unit’ means a dwelling
unit that—
‘‘(i) has at least 2 separate bedrooms;
108
‘‘(ii) is equipped with design features
appropriate to meet the special physical
needs of elderly persons, as needed; and
‘‘(iii) is equipped with design features
appropriate to meet the special physical
needs of young children.
‘‘(G) RAISING A CHILD.—The term ‘raising
a child’ means, with respect to an individual,
that the individual—
‘‘(i) resides with the child; and
‘‘(ii) is the primary caregiver for the
child—
‘‘(I) because the biological or
adoptive parents of the child do not re-
side with the child or are unable or un-
willing to serve as the primary care-
giver for the child; and
‘‘(II) regardless of whether the in-
dividual has a legal relationship to the
child (such as guardianship or legal
custody) or is caring for the child in-
formally and has no such legal rela-
tionship with the child.
109
‘‘(H) 
RELATIVE.—The 
term 
‘relative’
means, with respect to a child, an individual
who—
‘‘(i) is not a parent of the child by
blood or marriage; and
‘‘(ii) is a relative of the child by blood
or marriage, regardless of the age of the in-
dividual.
In the case of a child who was adopted, the term
includes an individual who, by blood or mar-
riage, is a relative of the family who adopted the
child.’’.
SEC. 415. INCREASED PAYMENT STANDARD.
Section 8(o)(1)(D) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(1)(D)) is amended—
(1) by striking ‘‘(D) APPROVAL.—The’’ and in-
serting the following:
‘‘(D) EXCEPTION PAYMENT STANDARDS.—
‘‘(i) APPROVAL.—The’’; and
(2) by adding at the end the following:
‘‘(ii) INCREASED
PAYMENT
STAND-
ARD.—A public housing agency may estab-
lish a payment standard for the same size
dwelling unit in a market area or portion
of a market area between 110 and 120 per-
110
cent of the fair market rent, if the payment
standard for the market area or portion of
a market area has been set at 110 percent
or above for the 6 months prior to the estab-
lishment of the new payment standard and
the public housing agency determines that it
has—
‘‘(I) a voucher success rate (the
proportion of families that are issued a
voucher that succeed in leasing a unit
within the timeframe provided by the
public housing agency to search for
housing) of not more than 80 percent
or has provided an extended search
time of not less than 90 days to a sig-
nificant number of voucher recipients;
or
‘‘(II) problems with concentration
of the voucher holders in high poverty
areas.
‘‘(iii) DISABILITY ACCOMMODATION.—
A public housing agency may establish a
payment standard of not more than 120
percent of the fair market rent where nec-
essary as a reasonable accommodation for a
111
person with a disability, without approval
of the Secretary. A public housing agency
may seek approval of the Secretary to use a
payment standard greater than 120 percent
of the fair market rent as a reasonable ac-
commodation for a person with a disability.
‘‘(iv) SECRETARY APPROVAL.—A pub-
lic housing agency may establish a payment
standard in accordance with clause (ii)
without approval of the Secretary, if the
public housing agency includes in its an-
nual plan that is submitted to the Secretary
pursuant to section 5A(b)—
‘‘(I) the reasons for the increase in
the payment standard;
‘‘(II) a description of how and
why the public housing agency has de-
termined that it meets the requirements
of clause (ii); and
‘‘(III) a description of other steps
the public housing agency is taking, in
addition to increasing the payment
standard, to address the problems of
voucher utilization, voucher success
rates (the proportion of families that
112
are issued a voucher that succeed in
leasing a unit within the timeframe
provided by the public housing agency
to search for housing), and concentra-
tion of voucher holders.
‘‘(v) 
APPLICABILITY.—Clauses 
(ii)
through (iv) shall apply with respect only to
amounts made available for rental assist-
ance under this subsection for fiscal year
2004 and fiscal years thereafter.’’.
SEC. 416. PROTECTION OF INNOCENT TENANTS.
Clause (iii) of section 8(d)(1)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(B)(iii)) is
amended by inserting before the semicolon at the end the
following: ‘‘; except that such criminal activity, engaged in
by a member of a tenant’s household or any guest or other
person under the tenant’s control, shall not be cause for ter-
mination of tenancy of the tenant if the tenant or imme-
diate member of the tenant’s family is a victim of domestic
violence or dating violence and, as a result, could not con-
trol or prevent the criminal activity relating to domestic
violence or dating violence; and except that nothing in this
clause may be construed to limit the authority of a public
housing agency to evict individuals who engage in criminal
acts of physical violence against family members or others,
113
and in all cases, a public housing agency shall consider the
safety, security, and continued maintenance of victims of
domestic violence to be of paramount importance’’.
TITLE V—PUBLIC HOUSING
Subtitle A—General Provisions
SEC. 501. PHA JOINT VENTURES.
Section 13(b) of the United States Housing Act of 1937
(42 U.S.C. 1437k(b)) is amended by adding at the end the
following new paragraph:
‘‘(4) NON-FEDERAL
FUNDS
AND
ACTIVITIES.—
This subsection shall not apply to any subsidiary,
joint venture, partnership, or business arrangement,
or any activity conducted by such an entity, that does
not involve holding or expending funds received from
the Federal Government or proceeds or income derived
from such funds.’’.
SEC. 502. THIRD-PARTY PUBLIC HOUSING ASSESSMENT
SYSTEM.
(a) ESTABLISHMENT.—The Secretary of Housing and
Urban Development shall provide for the development of a
third-party assessment system for evaluating the perform-
ance of public housing agencies, in accordance with this sec-
tion.
(b) PURPOSES.—The assessment system developed
under this section shall—
114
(1) provide an objective assessment of the overall
performance of public housing agencies in all major
areas of management operations and in discharging
their obligations under the United States Housing Act
of 1937;
(2) identify quantifiable areas of the manage-
ment and financial condition of public housing agen-
cies; and
(3) determine the physical condition of public
housing dwelling units to ensure that they are main-
tained in accordance with the requirements pursuant
to the United States Housing Act of 1937.
(c) TESTING AND PROTOTYPE.—
(1) IN GENERAL.—Not later than 120 days after
the date of the enactment of this Act, to the extent
amounts are made available to carry out this section,
the Secretary of Housing and Urban Development
shall enter into a contract with a public entity or a
private for-profit or nonprofit entity to develop a sys-
tem prototype for the third-party assessment system
required under this section and to test such prototype.
Such contract shall require such entity to submit the
prototype assessment system to the Congress not later
than the expiration of the 6-month period beginning
upon execution of the contract and to complete such
115
testing not later than the expiration of the 12-month
period beginning upon execution of the contract.
(2) CONSULTATION.—In carrying out the testing
and prototype development under this subsection, the
entity selected under this subsection shall consult with
individuals and organizations experienced in man-
aging public housing and their representatives, pri-
vate real estate managers, representatives from State
and local governments, residents of public housing,
and the Secretary.
(d) REPORT.—Not later than the expiration of the 12-
month period beginning upon execution of the contract re-
ferred to in subsection (c)(1), the Secretary of Housing and
Urban Development shall submit to the Congress a report
describing the results and recommendations regarding the
testing of the prototype assessment system conducted pursu-
ant to this subsection, which shall include any comments
and recommendations of the persons and entities consulted
with pursuant to subsection (c)(2) and any recommenda-
tions regarding the replacement of the public housing man-
agement assessment system established under section 6(j) of
the United States Housing Act of 1937 (42 U.S.C.
1437d(j)).
(e) RULE OF CONSTRUCTION.—This section may not
be construed to—
116
(1) provide for or require the implementation of
the third-party assessment system developed pursuant
to this section; or
(2) alter, affect, suspend, terminate, or delay the
effectiveness or applicability of the public housing as-
sessment system under section 6(j) of the United
States Housing Act of 1937 (42 U.S.C. 1437d(j)) or
any regulations issued, or to be issued, pursuant to
such section.
SEC. 503. PUBLIC HOUSING AGENCY PLANS FOR CERTAIN
SMALL PUBLIC HOUSING AGENCIES.
(a) IN GENERAL.—Section 5A(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437c–1(b)) is amended
by adding at the end the following new paragraph:
‘‘(3) SUSPENSION OF FILING REQUIREMENT FOR
CERTAIN SMALL PHAS.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1) or any other provision of this Act—
‘‘(i) the requirement under paragraph
(1) shall not apply to any qualified small
public housing agency for fiscal years 2003,
2004, or 2005; and
‘‘(ii) any reference in this section or
any other provision of law to a ‘public
housing agency’ shall not be considered to
117
refer to any qualified small public housing
agency for such fiscal years, to the extent
such reference applies to the requirement to
submit a public housing agency plan under
subsection (b).
‘‘(B) DEFINITION.—For purposes of this
paragraph, the term ‘qualified small public hous-
ing agency’ means a public housing agency that
meets all of the following requirements:
‘‘(i) The sum of (I) the number of pub-
lic housing dwelling units administered by
the agency, and (II) the number of vouchers
under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o))
administered by the agency, is 100 or fewer.
‘‘(ii) The agency is not designated pur-
suant to section 6(j)(2) as a troubled public
housing agency.
‘‘(iii) The agency provides assurances
satisfactory to the Secretary that, during
fiscal years 2003, 2004, and 2005, notwith-
standing the inapplicability of the require-
ments under section 5A relating to resident
advisory boards and public hearings and
notice, residents of public housing adminis-
118
tered by the agency will have an adequate
and comparable opportunity for participa-
tion and notice regarding establishment of
the goals, objectives, and policies of the pub-
lic housing agency.’’.
(b) REPORT.—Not later than September 30, 2004, the
Comptroller General of the United States shall submit a re-
port to the Congress describing and analyzing the adminis-
trative, financial, and other burdens that would be imposed
on 
public 
housing 
agencies 
described 
in 
section
5A(b)(3)(B)(i) of the United States Housing Act of 1937
(42 U.S.C. 1437c–1(b)(3)(B)(i)), as amended by subsection
(a) of this section, if such agencies were required to comply
fully with the requirements under section 5A(b)(1) of such
Act.
SEC. 504. AFFORDABLE ASSISTED LIVING FACILITIES DEM-
ONSTRATION PROGRAM.
Title I of the United States Housing Act of 1937 (42
U.S.C. 1437 et seq.) is amended by adding at the end the
following new section:
‘‘SEC. 36. DEMONSTRATION PROGRAM FOR GRANTS FOR
CONVERSION OF PUBLIC HOUSING TO AS-
SISTED LIVING FACILITIES.
‘‘(a) GRANT AUTHORITY.—To the extent only that
amounts are appropriated in advance to carry out this sec-
119
tion, the Secretary shall carry out a program, in accordance
with this section, to demonstrate the effectiveness of making
grants to public housing agencies for use for activities de-
signed to convert dwelling units in eligible projects de-
scribed in subsection (b) to assisted living facilities or other
facilities that expand the availability of supportive services,
to enhance the ability of elderly persons to maintain inde-
pendent living.
‘‘(b) ELIGIBLE PROJECTS.—An eligible project de-
scribed in this subsection is a public housing project (or
a portion thereof) that is primarily occupied by elderly per-
sons.
‘‘(c) APPLICATIONS.—Applications for grants under
the demonstration program under this section shall be sub-
mitted to the Secretary in accordance with such procedures
as the Secretary shall establish. Such applications shall
contain—
‘‘(1) a description of the proposed conversion ac-
tivities for which a grant under the program is re-
quested;
‘‘(2) the amount of the grant requested;
‘‘(3) a description of the resources that are ex-
pected to be made available, if any, in conjunction
with the grant under the program; and
120
‘‘(4) such other information or certifications that
the Secretary determines to be necessary or appro-
priate.
‘‘(d) FUNDING FOR SERVICES.—The Secretary may
not make a grant under the demonstration program under
this section unless the application contains sufficient evi-
dence, in the determination of the Secretary, that there will
be adequate funding for supportive services for residents of
the facility converted with grant amounts.
‘‘(e) SERVICE COORDINATORS.—An application for a
grant under the demonstration program under this section
may include a request for, and the Secretary may provide
funds under the grant for, amounts to provide service coor-
dinators to assist in the provision of supportive services for
residents of the facilities converted with grant amounts.
‘‘(f) SCOPE.—Grants under the demonstration pro-
gram under this section may be made only with respect to
three eligible projects.
‘‘(g) SELECTION CRITERIA.—The Secretary shall select
applications for grants under the demonstration program
under this section based upon selection criteria, which shall
be established by the Secretary and shall include—
‘‘(1) the extent to which the conversion is likely
to provide assisted living facilities or supportive serv-
ices that are needed or are expected to be needed by
121
the categories of elderly persons that the assisted liv-
ing facility is intended to serve;
‘‘(2) the extent of financial need on the part of
the applicant for funding to carry out the conversion
activities proposed;
‘‘(3) the extent to which the agency has evidenced
community support for the conversion, by such indi-
cators as letters of support from the local community
for the conversion and financial contributions from
public and private sources;
‘‘(4) the extent to which the applicant dem-
onstrates a strong commitment to promoting the au-
tonomy and independence of the elderly persons that
the assisted living facility or other supportive services
facility is intended to serve;
‘‘(5) the quality, completeness, and managerial
capability of providing services to elderly residents,
especially in such areas as meals, 24-hour staffing,
and on-site health care; and
‘‘(6) such other criteria as the Secretary deter-
mines to be appropriate to ensure that funds made
available under the demonstration program under
this section are used effectively.
‘‘(h) DEFINITION.—For the purposes of this section, the
term ‘assisted living facility’ has the meaning given such
122
term in section 232(b) of the National Housing Act (12
U.S.C. 1715w(b)).
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated for providing grants under
the demonstration program under this section such sums
as may be necessary for each of fiscal years 2003 and
2004.’’.
SEC. 505. PROTECTION OF INNOCENT TENANTS.
Paragraph (6) of section 6(l) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(l)(6)) is amended
by inserting before the semicolon at the end the following:
‘‘; except that such criminal activity, engaged in by a mem-
ber of a tenant’s household or any guest or other person
under the tenant’s control, shall not be cause for termi-
nation of tenancy of the tenant if the tenant or immediate
member of the tenant’s family is a victim of domestic vio-
lence or dating violence and, as a result, could not control
or prevent the criminal activity relating to domestic vio-
lence or dating violence; and except that nothing in this
paragraph may be construed to limit the authority of a
public housing agency to evict individuals who engage in
criminal acts of physical violence against family members
or others, and in all cases, a public housing agency shall
consider the safety, security, and continued maintenance of
123
victims of domestic violence to be of paramount impor-
tance’’.
Subtitle B—HOPE VI Revitalization
Program
SEC. 521. SELECTION CRITERIA.
Section 24(e)(2) of the United States Housing Act of
1937 (42 U.S.C. 1437v(e)(2)) is amended—
(1) by striking the matter preceding subpara-
graph (A) and inserting the following:
‘‘(2) SELECTION CRITERIA.—The Secretary shall
establish criteria for the award of grants under this
section and shall include among the factors—’’;
(2) in subparagraph (B), by striking ‘‘large-
scale’’;
(3) in subparagraph (D), by inserting ‘‘and on-
going implementation’’ after ‘‘development’’;
(4) in subparagraph (H), by striking ‘‘and’’ at
the end;
(5) by redesignating subparagraph (I) as sub-
paragraph (M); and
(6) by inserting after subparagraph (H) the fol-
lowing new subparagraphs:
‘‘(I) the extent to which the applicant can
commence and complete the revitalization plan
expeditiously;
124
‘‘(J) the extent to which the plan minimizes
temporary or permanent displacement of current
residents of the public housing site who wish to
remain in or return to the revitalized commu-
nity;
‘‘(K) the extent to which the plan sustains
or creates more project-based housing units
available to persons eligible for public housing in
markets where there is demand for the mainte-
nance or creation of such units;
‘‘(L) the extent to which the plan gives to
existing residents priority for occupancy in
dwelling units in the revitalized community;
and’’.
SEC. 522. AUTHORIZATION OF APPROPRIATIONS.
Paragraph (1) of section 24(m) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(m)(1)) is amended
to read as follows:
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for grants
under this section such sums as may be necessary for
each of fiscal years 2003 and 2004.’’.
125
SEC. 523. EXTENSION OF PROGRAM.
Section 24(n) of the United States Housing Act of
1937 (42 U.S.C. 1437v(n)) is amended by striking ‘‘Sep-
tember 30, 2002’’ and inserting ‘‘September 30, 2004’’.
SEC. 524. HOPE VI GRANTS FOR ASSISTING AFFORDABLE
HOUSING 
THROUGH 
MAIN 
STREET
PROJECTS.
(a) PURPOSES.—Section 24(a) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(a)) is amended by
adding after and below paragraph (4) the following:
‘‘It is also the purpose of this section to provide assistance
to smaller communities for the purpose of facilitating the
development of affordable housing for low-income families
that is undertaken in connection with a main street revital-
ization or redevelopment project in such communities.’’.
(b) GRANTS FOR ASSISTING AFFORDABLE HOUSING
DEVELOPED
THROUGH
MAIN
STREET
PROJECTS
IN
SMALLER COMMUNITIES.—Section 24 of the United States
Housing Act of 1937 (42 U.S.C. 1437v) is amended—
(1) by redesignating subsection (n) as subsection
(o); and
(2) by inserting after subsection (m) the fol-
lowing new subsection:
‘‘(n) GRANTS FOR ASSISTING AFFORDABLE HOUSING
DEVELOPED
THROUGH
MAIN
STREET
PROJECTS
IN
SMALLER COMMUNITIES.—
126
‘‘(1) 
AUTHORITY
AND
USE
OF
GRANT
AMOUNTS.—The Secretary may make grants under
this subsection to smaller communities. Such grant
amounts shall be used by smaller communities only to
provide assistance to carry out eligible affordable
housing activities under paragraph (3) in connection
with an eligible project under paragraph (2).
‘‘(2) ELIGIBLE PROJECT.—For purposes of this
subsection, the term ‘eligible project’ means a project
that—
‘‘(A) the Secretary determines, under the
criteria established pursuant to paragraph (3), is
a main street project;
‘‘(B) is carried out within the jurisdiction
of smaller community receiving the grant; and
‘‘(C) involves the development of affordable
housing that is located in the commercial area
that is the subject of the project.
‘‘(3) MAIN
STREET
PROJECTS.—The Secretary
shall establish requirements for a project to be con-
sider a main street project for purposes of this section,
which shall require that the project—
‘‘(A) has as its purpose the revitalization or
redevelopment of a historic or traditional com-
mercial area;
127
‘‘(B) involves investment, or other partici-
pation, by the government for, and private enti-
ties in, the community in which the project is
carried out; and
‘‘(C) complies with such historic preserva-
tion guidelines or principles as the Secretary
shall identify to preserve significant historic or
traditional architectural and design features in
the structures or area involved in the project.
‘‘(4) ELIGIBLE
AFFORDABLE
HOUSING
ACTIVI-
TIES.—For purposes of this subsection, the activities
described in subsection (d)(1) shall be considered eli-
gible affordable housing activities, except that—
‘‘(A) such activities shall be conducted with
respect to affordable housing rather than with re-
spect to severely distressed public housing
projects; and
‘‘(B) eligible affordable housing activities
under this subsection shall not include the activi-
ties described in subparagraphs (B) through (F)
or (J) through (L) of subsection (d)(1).
‘‘(5) MAXIMUM GRANT AMOUNT.—A grant under
this subsection for a fiscal year for a single smaller
community may not exceed $1,000,000.
128
‘‘(6) CONTRIBUTION REQUIREMENT.—A smaller
community applying for a grant under this sub-
section shall be considered an applicant for purposes
of subsection (c) (relating to contributions by appli-
cants), except that—
‘‘(A) such supplemental amounts shall be
used only for carrying out eligible affordable
housing activities; and
‘‘(B) paragraphs (1)(B) and (3) shall not
apply to grants under this subsection.
‘‘(7) APPLICATIONS AND SELECTION.—
‘‘(A) APPLICATION.—Pursuant to subsection
(e)(1), the Secretary shall provide for smaller
communities to apply for grants under this sub-
section, except that the Secretary may establish
such separate or additional criteria for applica-
tions for such grants as may be appropriate to
carry out this subsection.
‘‘(B) SELECTION CRITERIA.—The Secretary
shall establish selection criteria for the award of
grants under this subsection, which shall be
based on the selection criteria established pursu-
ant to subsection (e)(2), with such changes as
may be appropriate to carry out the purposes of
this subsection.
129
‘‘(8) COST LIMITS.—The cost limits established
pursuant to subsection (f) shall apply to eligible af-
fordable housing activities assisted with grant
amounts under this subsection.
‘‘(9) INAPPLICABILITY OF OTHER PROVISIONS.—
The provisions of subsections (g) (relating to disposi-
tion and replacement of severely distressed public
housing), (h) (relating to administration of grants by
other entities), and (i) (relating to withdrawal of
funding) shall not apply to grants under this sub-
section.
‘‘(10) REPORTING.—The Secretary shall require
each smaller community receiving a grant under this
subsection to submit a report regarding the use of all
amounts provided under the grant.
‘‘(11) DEFINITIONS.—For purposes of this sub-
section, the following definitions shall apply:
‘‘(A) AFFORDABLE HOUSING.—The term ‘af-
fordable housing’ means rental or homeownership
dwelling units that—
‘‘(i) are made available for initial oc-
cupancy subject to the same rules regarding
level of income and income mix as dwelling
units in public housing projects assisted
with a grant under this section; and
130
‘‘(ii) are subject to the same rules re-
garding occupant contribution toward rent
or purchase and terms of rental or purchase
as dwelling units in public housing projects
assisted with a grant under this section.
‘‘(B) SMALLER
COMMUNITY.—The term
‘smaller community’ means a unit of general
local government (as such term is defined in sec-
tion 102 of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302)) that—
‘‘(i) has a population of 30,000 or
fewer; and
‘‘(ii)(I) may not be not served by a
public housing agency; or
‘‘(II) is served by a single public hous-
ing agency, which agency administers 100
or fewer public housing dwelling units.’’.
(c) ANNUAL REPORT.—Section 24(l) of the United
States Housing Act of 1937 (42 U.S.C. 1437v(l)) is
amended—
(1) in paragraph (3), by striking ‘‘; and’’ and
inserting ‘‘, including a specification of the amount
and type of assistance provided under subsection
(n);’’;
131
(2) by redesignating paragraph (4) as para-
graph (5); and
(3) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) the types of projects funded, and number of
affordable housing dwelling units developed with,
grants under subsection (n); and’’.
(d) FUNDING.—Section 24(m) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(m)) is amended by
adding at the end the following new paragraph:
‘‘(3) Of the amount appropriated pursuant to
paragraph (1) for any fiscal year, the Secretary shall
provide up to 5 percent for use only for grants under
subsection (n).’’.
TITLE VI—HOMELESS HOUSING
PROGRAMS
SEC. 601. UNITED STATES INTERAGENCY COUNCIL ON
HOMELESSNESS.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
208 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11318) is amended to read as follows:
‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title such sums as may be necessary for each of fiscal
years 2003 and 2004.’’.
132
(b) REDESIGNATION
OF COUNCIL.—Title II of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11311
et seq.) is amended—
(1) by striking the title designation and heading
and inserting the following:
‘‘TITLE 
II—UNITED 
STATES
INTERAGENCY COUNCIL ON
HOMELESSNESS’’;
(2) in section 201, by striking ‘‘Interagency
Council on the Homeless’’ and inserting ‘‘United
States Interagency Council on Homelessness’’; and
(3) in section 207(1), by striking ‘‘Interagency
Council on the Homeless’’ and inserting ‘‘United
States Interagency Council on Homelessness’’.
(c) CONFORMING
AMENDMENTS.—The McKinney-
Vento Homeless Assistance Act is amended—
(1) in section 102(b)(1) (42 U.S.C. 11301(b)(1)),
by striking ‘‘an Interagency Council on the Home-
less’’ and inserting ‘‘the United States Interagency
Council on Homelessness’’;
(2) in section 501 (42 U.S.C. 11411), in sub-
sections (c)(2)(A) and (d)(3), by striking ‘‘Inter-
agency Council on the Homeless’’ each place such
term appears and inserting ‘‘United States Inter-
agency Council on Homelessness’’; and
134
‘‘(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this subtitle
(not including activities funded pursuant to subsection (d)
of this section) such sums as may be necessary for each of
fiscal years 2003 and 2004.’’.
(b) FUNDING OF RENEWALS THROUGH HOUSING CER-
TIFICATE FUND.—Section 429 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11389) is amended by
adding at the end the following new subsection:
‘‘(d) FUNDING OF RENEWALS.—
‘‘(1) IN GENERAL.—For fiscal year 2003 and fis-
cal years thereafter, assistance under this subtitle
may be funded using amounts appropriated for sec-
tion 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f).
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In
addition to any amounts otherwise made available for
assistance under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f), there are author-
ized to be appropriated such sums as may be nec-
essary for each of fiscal years 2003 and 2004 for the
renewal of contracts for permanent housing activities
under this subtitle. Any such renewals shall be made
only for a term of one year.’’.
135
(c) SET-ASIDE.—Subtitle A of title IV of the McKin-
ney-Vento Homeless Assistance Act (42 U.S.C. 11361 et
seq.) is amended by adding at the end the following new
section:
‘‘SEC. 403. SET-ASIDE FOR PERMANENT HOUSING.
‘‘Notwithstanding any other provision of this title, of
the aggregate amount made available for assistance under
this title for any fiscal year, not less than 30 percent shall
be used only for permanent housing activities for homeless
persons. Amounts made available under section 429(d) or
463(c) for renewals of contracts for permanent housing shall
be disregarded for purposes of the preceding sentence. For
purposes of this section, the term ‘permanent housing ac-
tivities’ includes permanent housing designed primarily to
serve homeless families with children.’’.
(d) ELIMINATION OF CAP ON CAPITAL EXPENSES.—
Section 423(a) of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11383(a)) is amended—
(1) in the first sentence of paragraph (1)—
(A) by striking ‘‘, in an amount not to ex-
ceed $200,000,’’; and
(B) by striking ‘‘; except that’’ and all that
follows through ‘‘rehabilitation costs’’; and
(2) in paragraph (2), by striking ‘‘, in an
amount not to exceed $400,000,’’.
136
SEC. 605. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU-
PANCY DWELLINGS.
Subsection (a) of section 441 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11401(a)) is amended
to read as follows:
‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budget
authority available under section 5(c) of the United States
Housing Act of 1937 for assistance under section 8(e)(2)
of such Act (as in effect pursuant to section 289(b)(2) of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12839(b)(2)) is authorized to be increased by such
sums as may be necessary on or after each of October 1,
2002, and October 1, 2003.’’.
SEC. 606. SHELTER PLUS CARE.
(a) AUTHORIZATION OF APPROPRIATIONS.—The first
sentence of section 463(a) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11403h(a)) is amended to read
as follows: ‘‘For purposes of the housing programs under
this subtitle, there are authorized to be appropriated to
carry out this subtitle (not including activities funded pur-
suant to subsection (c) of this section) such sums as may
be necessary for each of fiscal years 2003 and 2004.’’.
(b) FUNDING OF RENEWALS THROUGH HOUSING CER-
TIFICATE FUND.—Section 463 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11403h) is amended by
adding at the end the following new subsection:
137
‘‘(c) FUNDING OF RENEWALS.—
‘‘(1) IN GENERAL.—For fiscal year 2003 and fis-
cal years thereafter, assistance under this subtitle
may be funded using amounts appropriated for sec-
tion 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f).
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—In
addition to any amounts otherwise made available for
assistance under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f), there are author-
ized to be appropriated such sums as may be nec-
essary for each of fiscal years 2003 and 2004 for the
renewal of contracts under this subtitle. Any such re-
newals shall be made only for a term of one year.’’.
(c) CONDITIONS OF RENEWAL.—Section 456 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C.
11403e) is amended—
(1) by inserting ‘‘(a) APPROVAL
OF ASSIST-
ANCE.—’’ before ‘‘The Secretary’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) CONDITIONS OF RENEWAL.—The Secretary may
not provide assistance under this subtitle for any housing
previously assisted under this subtitle unless the unit of gen-
eral local government in which such project is located cer-
138
tifies that the housing complies with such housing safety
and quality standards, as the Secretary shall establish and
the Secretary reviews and approves such certification.’’.
SEC. 607. HOUSING FOR DOMESTIC VIOLENCE AND SEXUAL
ASSAULT VICTIMS.
(a) FUNDING.—There are authorized to be appro-
priated such sums as may be necessary for each of fiscal
years 2003 through 2007 for assistance under this section.
(b) HOUSING ASSISTANCE.—Any amounts made avail-
able pursuant to subsection (a) of this section shall be avail-
able to the Secretary only to provide assistance to qualified
organizations for the purpose of providing, on behalf only
of eligible individuals or families—
(1) supportive housing (as such term is defined
in section 422 of the McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11382));
(2) tenant-based rental assistance;
(3) financial assistance for a security deposit,
first month’s rent, or ongoing rental assistance; or
(4) project-based transitional housing, except
that such assistance may be used only to cover ex-
penses of renovation, repair, conversion and operation
of such housing.
(c) ELIGIBLE INDIVIDUALS AND FAMILIES.—An eligi-
ble individual or family under this paragraph is an indi-
139
vidual or family that meets both of the following require-
ments:
(1) VICTIMS.—The individual has been victim-
ized by domestic violence, stalking, or adult or child
sexual assault or the family is a victimized family.
(2) RELOCATION.—The qualified organization
providing the housing assistance pursuant to sub-
section (b) for which the individual or family is ap-
plying has determined that the individual or member
of the family who was a victim of the domestic vio-
lence, stalking, or adult or child sexual assault rea-
sonably believes that relocation from such residence
will assist in avoiding future domestic violence, stalk-
ing, or adult or child sexual assault against such in-
dividual or another member of the family.
(d) MATCHING REQUIREMENT.—Each qualified orga-
nization receiving assistance under this section shall sup-
plement such assistance with a 25 percent match of funds
for supportive services (as such term is defined in section
422 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11382)) from sources other than this section. Each
such organization shall certify to the Secretary its compli-
ance with this section and shall include with the certifi-
cation a description of the sources and amounts of such sup-
plemental funds.
140
(e) ALLOCATION.—
(1) COMPETITION.—Amounts made available
pursuant to this section shall be allocated by the Sec-
retary, among qualified organizations that submit ap-
plications to the Secretary, under a national competi-
tion based on demonstrated need for such assistance,
including the extent of service provided to underserved
populations (as such term is defined in section 2003
of the Omnibus Crime Control and Safe Streets Act
of 1968 (42 U.S.C. 3796gg–2)) and the ability to un-
dertake and carry out a program under this section,
as the Secretary shall determine.
(2) SET ASIDE FOR INDIAN TRIBES.—Of the total
funds made available pursuant to subsection (a) for
any fiscal year, at least 10 percent shall be used for
grants to Indian tribes or Indian tribal organizations
that provide emergency shelter, transitional housing,
or permanent housing or supportive services to indi-
viduals or families victimized by domestic violence,
stalking, or adult or child sexual assault. Indian
tribes or Indian tribal organizations that receive such
grants may apply for and receive other grants from
the total funds appropriated under this section. All
other grants awarded shall go to qualified organiza-
tions.
141
(f) APPLICATIONS.—The Secretary shall provide for
qualified organizations to apply for assistance under this
section and shall require that such an application shall—
(1) contain such certifications as the Secretary
shall require to ensure that—
(A) the applicant organization, to the extent
practicable, has entered into cooperative agree-
ments or memoranda of understanding with
homeless coalitions, public housing authorities,
and community-based agencies that represent
underserved populations to establish procedures
for facilitating referrals to transitional housing
and for implementing tenant-based housing as-
sistance programs; and
(B) any construction or physical improve-
ments carried out with assistance amounts under
this section will comply with any applicable
housing, safety, and licensing codes, laws, or reg-
ulations of the State or local government in
which the structure is located; and
(2) describe how the services to be provided with
assistance under this section will assist victims of do-
mestic violence in obtaining permanent housing.
142
(g) CONFIDENTIALITY.—A qualified organization may
not be provided assistance under this section unless the or-
ganization agrees to ensure the confidentiality of—
(1) the names of individuals and their depend-
ents assisted with services or in facilities funded, in
whole or in part, with such amounts; and
(2) any other information regarding such indi-
viduals and dependents,
except to the extent such information is otherwise required
by law to be disclosed.
(h) DEFINITIONS.—For purposes of this section:
(1) DOMESTIC VIOLENCE.—The term ‘‘domestic
violence’’ includes acts or threats of violence or ex-
treme cruelty (as such term is referred to in section
216 of the Immigration and Nationality Act (8
U.S.C. 1186a)), not including acts of self-defense,
committed by a current or former spouse of the vic-
tim, by a person with whom the victim has a child
in common, by a person who is cohabiting with or
has cohabited with the victim, by a person who is or
has been in a continuing social relationship of a ro-
mantic or intimate nature with the victim, by a per-
son similarly situated to a spouse of the victim under
the domestic or family violence laws of the jurisdic-
tion, or by any other person against a victim who
143
is protected from that person’s acts under the domes-
tic or family violence laws of the jurisdiction.
(2) VICTIMIZED FAMILY.—
(A) IN
GENERAL.—The term ‘‘victimized
family’’ means a family or household that in-
cludes an individual who has been determined
under subparagraph (B) to have been a victim
of domestic violence, stalking, or adult or child
sexual assault, but does not include any indi-
vidual who committed the domestic violence, sex-
ual assault, or adult or child sexual assault. The
term includes any such family or household in
which only a minor or minors are the individual
or individuals who was or were a victim of do-
mestic violence, stalking, or sexual assault only
if such family or household also includes a par-
ent, stepparent, legal guardian, or other respon-
sible caretaker for the child.
(B) DETERMINATION.—For purposes of sub-
paragraph (A), a determination under this sub-
paragraph is a determination that domestic vio-
lence, stalking, or adult or child sexual assault
has been committed, which is made by any agen-
cy or official of a State, Indian tribe, tribal or-
ganization, or unit of general local government
144
based upon any reliable evidence that domestic
violence, stalking, or adult or child sexual as-
sault has occurred. A victim’s statement that do-
mestic violence, stalking, or adult or child sexual
assault has occurred shall be sufficient unless the
agency has an independent, reasonable basis to
find the individual not credible.
(3) INDIAN TRIBE.—The term ‘‘Indian Tribe’’
shall have the same meaning given the term in section
2003 of the Omnibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796gg–2).
(4) 
QUALIFIED
ORGANIZATION.—The 
term
‘‘qualified organization’’ means a private, nongovern-
mental organization that—
(A) is organized, or has as its primary pur-
poses, to provide emergency shelter, transitional
housing, or permanent housing for victims of do-
mestic violence, stalking, or adult or child sexual
assault or is a medical, legal, counseling, social,
psychological, health, job training, educational,
life skills development, or other social services
program for victims of domestic violence, stalk-
ing, or adult or child sexual assault that under-
takes a collaborative project with a qualified,
nonprofit, nongovernmental organization that
145
primarily provides emergency shelter, transi-
tional housing, or permanent housing for low-in-
come people;
(B) is organized under State, tribal, or local
laws;
(C) has no part of its net earnings inuring
to the benefit of any member, shareholder, found-
er, contributor, or individual; and
(D) is approved by the Secretary as to fi-
nancial responsibility.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(6) SEXUAL
ASSAULT.—The term ‘‘sexual as-
sault’’ means any conduct proscribed by chapter 109A
of title 18, United States Code, whether or not the
conduct occurs in the special maritime and territorial
jurisdiction of the United States, on an Indian res-
ervation, or in a Federal prison and includes both as-
saults committed by offenders who are strangers to the
victims and assaults committed by offenders who are
known to the victims or related by blood or marriage
to the victim.
(7) STALKING.—The term ‘‘stalking’’ means en-
gaging in a course of conduct directed at a specific
person that would cause a reasonable person to fear
146
death, sexual assault, or bodily injury to himself or
herself or a member of his or her immediate family,
when the person engaging in such conduct has knowl-
edge or should have knowledge that the specific person
will be placed in reasonable fear of death, sexual as-
sault, or bodily injury to himself or herself or a mem-
ber of his or her immediate family and when the con-
duct induces fear in the specific person of death, sex-
ual assault, or bodily injury to himself or herself or
a member of his or her immediate family.
(8) STATE.—The term ‘‘State’’ means the States
of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, Guam, the Virgin Is-
lands, American Samoa, and any other territory or
possession of the United States.
(9) TRANSITIONAL HOUSING.—The term ‘‘transi-
tional housing’’ includes short-term housing and has
the meaning given such term in section 424(b) of the
McKinney-Vento Homeless Assistance Act (42 U.S.C.
11384(b)).
(10) TRIBAL ORGANIZATION.—The term ‘‘tribal
organization’’ means a private, nonprofit, nongovern-
mental, or tribally chartered organization—
147
(A) whose primary purpose is to provide
emergency shelter, transitional housing, or per-
manent housing or supportive services to indi-
viduals or families victimized by domestic vio-
lence, stalking, or adult or child sexual assault;
(B) that operates within the exterior bound-
aries of an Indian reservation; and
(C) whose board of directors reflects the pop-
ulation served.
(11) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’ has the
meaning given the term in section 102(a) of the
Housing and Community Development Act of 1974
(42 U.S.C. 5302(a)).
SEC. 608. NATIONAL GOAL OF ENDING HOMELESSNESS.
(a) IN GENERAL.—The McKinney-Vento Homeless As-
sistance Act (42 U.S.C. 11301 et seq.) is amended by insert-
ing before title I the following new section:
‘‘SECTION 1. NATIONAL GOAL OF ENDING HOMELESSNESS.
‘‘The Congress hereby declares that it is a national
goal to end homelessness within 10 years after the enact-
ment of the Housing Affordability for America Act of
2002.’’.
(b) AMENDMENT TO TABLE OF CONTENTS.—The table
of contents in section 101(b) of the McKinney-Vento Home-
148
less Assistance Act (42 U.S.C. 11301 note) is amended by
inserting before the item relating to title I the following new
item:
‘‘Sec. 1. National goal of ending homelessness.’’.
SEC. 609. CLERICAL AMENDMENTS.
(a) AMENDMENT TO SUBTITLE HEADING.—The head-
ing for subtitle A of title IV of the McKinney-Vento Home-
less Assistance Act (42 U.S.C. 11361 et seq.) is amended
to read as follows:
‘‘Subtitle A—General Provisions’’.
(b) TABLE OF CONTENTS.—The table of contents in
section 101(b) of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11301 note) is amended—
(1) by striking the item relating to subtitle A of
title IV and inserting the following new item:
‘‘Subtitle A—General Provisions’’;
(2) by inserting after the item relating to section
401 the following new items:
‘‘Sec. 402. Discharge coordination policy.
‘‘Sec. 403. Set-aside for permanent housing.’’;
and
(3) by striking the item relating to section 443
and inserting the following new item:
‘‘Sec. 443. Environmental review.’’.
149
TITLE VII—NATIVE AMERICAN
HOUSING
SEC. 701. REAUTHORIZATION OF NATIVE AMERICAN HOUS-
ING AND SELF-DETERMINATION ACT OF 1996.
(a) BLOCK GRANT ASSISTANCE.—Section 108 of the
Native American Housing and Self-Determination Act of
1996 (25 U.S.C. 4117) is amended to read as follows:
‘‘SEC. 108. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for grants
under this title such sums as may be necessary for each
of fiscal years 2003 and 2004.’’.
(b) GUARANTEES FOR TRIBAL HOUSING ACTIVITIES
LOANS.—
(1) AGGREGATE FISCAL YEAR LIMITATION.—Sec-
tion 605(a) of the Native American Housing and Self-
Determination Act of 1996 (25 U.S.C. 4195(a)) is
amended by striking ‘‘1997, 1998, 1999, 2000, and
2001’’ and inserting ‘‘2003 and 2004’’.
(2) AUTHORIZATION
OF
APPROPRIATIONS
FOR
CREDIT
SUBSIDY.—Section 605(b) of the Native
American Housing and Self-Determination Act of
1996 (25 U.S.C. 4195(b)) is amended by striking
‘‘1997, 1998, 1999, 2000, and 2001’’ and inserting
‘‘2003 and 2004’’.
150
(c) TRAINING AND TECHNICAL ASSISTANCE.—Section
703 of the Native American Housing and Self-Determina-
tion Act of 1996 (25 U.S.C. 4212) is amended by striking
‘‘1997, 1998, 1999, 2000, and 2001’’ and inserting ‘‘2003
and 2004’’.
SEC. 702. COMPREHENSIVE PLANNING UNDER NATIVE
AMERICAN HOUSING BLOCK GRANT PRO-
GRAM.
Section 101(h) of the Native American Housing Assist-
ance and Self-Determination Act of 1996 (25 U.S.C.
4111(h)) is amended—
(1) by inserting after ‘‘Act’’ the first place such
term appears the following: ‘‘for comprehensive hous-
ing and community development planning activities
and’’; and
(2) in the subsection heading, by inserting ‘‘AND
PLANNING’’ after ‘‘ADMINISTRATIVE’’.
SEC. 703. LANDS TITLE REPORT COMMISSION.
(a) ESTABLISHMENT.—Section 501(a) of the American
Homeownership and Economic Opportunity Act of 2000
(25 U.S.C. 4043 note) is amended by striking ‘‘Subject to
sums being provided in advance in appropriations Acts,
there’’ and inserting ‘‘There’’.
(b) APPOINTMENT OF MEMBERS.—Section 501(b)(1) of
the American Homeownership and Economic Opportunity
151
Act of 2000 (25 U.S.C. 4043 note) is amended by striking
‘‘this Act’’ and inserting ‘‘the American Indian Lands Title
Report Commission Corrections Act’’.
(c) INITIAL MEETING.—Section 501(c) of the Amer-
ican Homeownership and Economic Opportunity Act of
2000 (25 U.S.C. 4043 note) is amended by striking ‘‘the
Chairperson of the Commission determines that sums suffi-
cient for the Commission to carry out its duties under this
Act have been appropriated for such purpose’’ and inserting
‘‘the completion of the appointment of the initial members
pursuant to subsection (b)(1)’’.
TITLE VIII—HOUSING IMPACT
ANALYSIS
SEC. 801. APPLICABILITY.
Except as provided in section 802, the requirements
of this title shall apply with respect to—
(1) any proposed rule, unless the agency promul-
gating the rule—
(A) has certified that the proposed rule will
not, if given force or effect as a final rule, have
a significant deleterious impact on housing af-
fordability; and
(B) has caused such certification to be pub-
lished in the Federal Register at the time of pub-
lication of general notice of proposed rulemaking
152
for the rule, together with a statement providing
the factual basis for the certification; and
(2) any final rule, unless the agency promul-
gating the rule—
(A) has certified that the rule will not, if
given force or effect, have a significant delete-
rious impact on housing affordability; and
(B) has caused such certification to be pub-
lished in the Federal Register at the time of pub-
lication of the final rule, together with a state-
ment providing the factual basis for the certifi-
cation.
Any agency making a certification under this section shall
provide a copy of such certification and the statement pro-
viding the factual basis for the certification to the Secretary
of Housing and Urban Development.
SEC. 802. EXCEPTION FOR CERTAIN BANKING RULES.
The requirements of this title shall not apply to any
proposed or final rule relating to—
(1) the operations, safety, or soundness of—
(A) federally insured depository institutions
or any affiliate of such an institution (as such
term is defined in section 2(k) of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 1841(k)));
(B) credit unions;
153
(C) the Federal home loan banks;
(D) the enterprises (as such term is defined
in section 1303 of the Housing and Community
Development Act of 1992 (12 U.S.C. 4502));
(E) a Farm Credit System institution; or
(F) foreign banks or their branches, agen-
cies, commercial lending companies, or rep-
resentative offices that operate in the United
States, or any affiliate of a foreign bank (as such
terms are defined in section 1 of the Inter-
national Banking Act of 1978 (12 U.S.C. 3101));
or
(2) the payments system or the protection of de-
posit insurance funds or the Farm Credit Insurance
Fund.
SEC. 803. STATEMENT OF PROPOSED RULEMAKING.
Whenever an agency publishes general notice of pro-
posed rulemaking for any proposed rule, unless the agency
has made a certification under section 801, the agency
shall—
(1) in the notice of proposed rulemaking—
(A) state with particularity the text of the
proposed rule; and
(B) request any interested persons to submit
to the agency any written analyses, data, views,
154
and arguments, and any specific alternatives to
the proposed rule;
(2) provide an opportunity for interested persons
to take the actions specified under paragraph (1)(B)
before promulgation of the final rule; and
(3) prepare and make available for public com-
ment an initial housing impact analysis in accord-
ance with the requirements of section 804.
SEC. 804. INITIAL HOUSING IMPACT ANALYSIS.
(a) REQUIREMENTS.—Each initial housing impact
analysis shall describe the impact of the proposed rule on
housing affordability. The initial housing impact analysis
or a summary shall be published in the Federal Register
at the same time as, and together with, the publication of
general notice of proposed rulemaking for the rule. The
agency shall transmit a copy of the initial housing impact
analysis to the Secretary of Housing and Urban Develop-
ment.
(b) CONTENTS.—Each initial housing impact analysis
required under this section shall contain—
(1) a description of the reasons why action by
the agency is being considered;
(2) a succinct statement of the objectives of, and
legal basis for, the proposed rule;
155
(3) a description of and, where feasible, an esti-
mate of the extent to which the proposed rule would
increase the cost or reduce the supply of housing or
land for residential development; and
(4) an identification, to the extent practicable, of
all relevant Federal rules which may duplicate, over-
lap, or conflict with the proposed rule.
SEC. 805. FINAL HOUSING IMPACT ANALYSIS.
(a) REQUIREMENT.—Whenever an agency promulgates
a final rule after publication of a general notice of proposed
rulemaking, unless the agency has made the certification
under section 801, the agency shall prepare a final housing
impact analysis.
(b) CONTENTS.—Each final housing impact analysis
shall contain—
(1) a succinct statement of the need for, and ob-
jectives of, the rule;
(2) a summary of the significant issues, anal-
yses, and alternatives to the proposed rule raised dur-
ing the public comment period in response to the pro-
posed rule and initial housing impact analysis, a
summary of the assessment of the agency of such
issues, analyses, and alternatives, and a statement of
any changes made in the proposed rule as a result of
such comments; and
156
(3) a description of and an estimate of the extent
to which the rule will impact housing affordability or
an explanation of why no such estimate is available.
(c) AVAILABILITY.—The agency shall make copies of
the final housing impact analysis available to members of
the public and shall publish in the Federal Register such
analysis or a summary thereof.
SEC. 806. AVOIDANCE OF DUPLICATIVE OR UNNECESSARY
ANALYSES.
(a) DUPLICATION.—Any Federal agency may perform
the analyses required by sections 804 and 805 in conjunc-
tion with or as a part of any other agenda or analysis re-
quired by any other law, executive order, directive, or rule
if such other analysis satisfies the provisions of such sec-
tions.
(b) JOINDER.—In order to avoid duplicative action,
an agency may consider a series of closely related rules as
one rule for the purposes of sections 804 and 805.
SEC. 807. PREPARATION OF ANALYSES.
In complying with the provisions of sections 804 and
805, an agency may provide either a quantifiable or numer-
ical description of the effects of a proposed rule or alter-
natives to the proposed rule, or more general descriptive
statements if quantification is not practicable or reliable.
157
SEC. 808. EFFECT ON OTHER LAW.
The requirements of sections 804 and 805 do not alter
in any manner standards otherwise applicable by law to
agency action.
SEC. 809. PROCEDURE FOR WAIVER OR DELAY OF COMPLE-
TION.
(a) INITIAL HOUSING IMPACT ANALYSIS.—An agency
head may waive or delay the completion of some or all of
the requirements of section 804 by publishing in the Federal
Register, not later than the date of publication of the final
rule, a written finding, with reasons therefor, that the final
rule is being promulgated in response to an emergency that
makes compliance or timely compliance with the provisions
of section 801 impracticable.
(b) FINAL HOUSING IMPACT ANALYSIS.—An agency
head may not waive the requirements of section 805. An
agency head may delay the completion of the requirements
of section 805 for a period of not more than 180 days after
the date of publication in the Federal Register of a final
rule by publishing in the Federal Register, not later than
such date of publication, a written finding, with reasons
therefor, that the final rule is being promulgated in response
to an emergency that makes timely compliance with the
provisions of section 805 impracticable. If the agency has
not prepared a final housing impact analysis pursuant to
section 805 within 180 days from the date of publication
158
of the final rule, such rule shall lapse and have no force
or effect. Such rule shall not be repromulgated until a final
housing impact analysis has been completed by the agency.
SEC. 810. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) AGENCY.—The term ‘‘agency’’ means each
authority of the Government of the United States,
whether or not it is within or subject to review by an-
other agency, but does not include—
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or
possessions of the United States;
(D) the government of the District of Co-
lumbia;
(E) agencies composed of representatives of
the parties or of representatives of organizations
of the parties to the disputes determined by
them;
(F) courts-martial and military commis-
sions;
(G) military authority exercised in the field
in time of war or in occupied territory; or
(H) functions conferred by—
159
(i) sections 1738, 1739, 1743, and 1744
of title 12, United States Code;
(ii) chapter 2 of title 41, United States
Code;
(iii) subchapter II of chapter 471 of
title 49, United States Code; or
(iv) sections 1884, 1891–1902, and
former section 1641(b)(2), of title 50, ap-
pendix, United States Code.
(2) FAMILIES.—The term ‘‘families’’ has the
meaning given such term in section 3 of the United
States Housing Act of 1937.
(3) HOUSING AFFORDABILITY.—The term ‘‘hous-
ing affordability’’ means the quantity of housing that
is affordable to families having incomes that do not
exceed 150 percent of the median income of families
in the area in which the housing is located, with ad-
justments for smaller and larger families. For pur-
poses of this paragraph, area, median family income
for an area, and adjustments for family size shall be
determined in the same manner as such factors are
determined for purposes of section 3(b)(2) of the
United States Housing Act of 1937.
(4) RULE.—The term ‘‘rule’’ means any rule for
which the agency publishes a general notice of pro-
160
posed rulemaking pursuant to section 553(b) of title
5, United States Code, or any other law, including
any rule of general applicability governing grants by
an agency to State and local governments for which
the agency provides an opportunity for notice and
public comment; except that such term does not in-
clude a rule of particular applicability relating to
rates, wages, corporate or financial structures or reor-
ganizations thereof, prices, facilities, appliances, serv-
ices, or allowances therefor or to valuations, costs or
accounting, or practices relating to such rates, wages,
structures, prices, appliances, services, or allowances.
(5) SIGNIFICANT.—The term ‘‘significant’’ means
increasing consumers’ cost of housing by more than
$100,000,000 per year.
SEC. 811. DEVELOPMENT.
Not later than 1 year after the date of the enactment
of this Act, the Secretary of Housing and Urban Develop-
ment shall develop model initial and final housing impact
analyses under this title and shall cause such model anal-
yses to be published in the Federal Register. The model
analyses shall define the primary elements of a housing im-
pact analysis to instruct other agencies on how to carry
out and develop the analyses required under sections 804
and 805.
161
SEC. 812. JUDICIAL REVIEW.
(a) DETERMINATION BY AGENCY.—Except as otherwise
provided in subsection (b), any determination by an agency
concerning the applicability of any of the provisions of this
title to any action of the agency shall not be subject to judi-
cial review.
(b) OTHER ACTIONS BY AGENCY.—Any housing im-
pact analysis prepared under section 804 or 805 and the
compliance or noncompliance of the agency with the provi-
sions of this title shall not be subject to judicial review.
When an action for judicial review of a rule is instituted,
any housing impact analysis for such rule shall constitute
part of the whole record of agency action in connection with
the review.
(c) EXCEPTION.—Nothing in this section bars judicial
review of any other impact statement or similar analysis
required by any other law if judicial review of such state-
ment or analysis is otherwise provided by law.
TITLE IX—OTHER HOUSING
PROGRAMS
SEC. 901. GNMA GUARANTEE FEE.
Section 972 of the Higher Education Amendments of
1998 (Public Law 105–244; 112 Stat. 1837) is hereby re-
pealed.
162
SEC. 902. HOUSING COUNSELING PROGRAMS.
(a) DESIGNATION
OF
OFFICE
RESPONSIBLE
FOR
HOUSING COUNSELING FUNCTIONS.—Section 4 of the De-
partment of Housing and Urban Development Act (42
U.S.C. 3533) is amended by adding at the end the following
new subsection:
‘‘(g)(1) The Secretary shall designate a single office of
the Department in existence on the date of the enactment
of the Housing Affordability for America Act of 2002 to
establish, coordinate, and administrate all individual pro-
gram requirements, standards, and performance measures
under programs and laws administered by the Department
that relate to housing counseling, homeownership coun-
seling, mortgage-related counseling, and rental housing
counseling, including the requirements, standards, and per-
formance measures relating to housing counseling pursuant
to the provisions of law specified in paragraph (2). To the
extent that the Secretary is authorized by law to provide
housing counseling services, the Secretary, in such cir-
cumstances or under such programs as the Secretary con-
siders appropriate, may authorize such office to provide
such housing counseling services.
‘‘(2) The provisions specified in this paragraph are as
follows:
163
‘‘(A) Section 105(a)(20) of the Housing and
Community Development Act of 1974 (42 U.S.C. 42
5305(a)(20)).
‘‘(B) In the United States Housing Act of
1937—
‘‘(i) section 9(e) (42 U.S.C. 1437g(e));
‘‘(ii) 
section 
8(y)(1)(D) 
(42 
U.S.C.
1437f(y)(1)(D));
‘‘(iii) 
section 
18(a)(4)(D) 
(42 
U.S.C.
1437p(a)(4)(D));
‘‘(iv) 
section 
23(c)(4) 
(42 
U.S.C.
1437u(c)(4));
‘‘(v) section 32(e)(4) (42 U.S.C. 1437z–
4(e)(4));
‘‘(vi) section 33(d)(2)(B) (42 U.S.C. 1437z–
5(d)(2)(B));
‘‘(vii) sections 302(b)(6) and 303(b)(7) (42
U.S.C. 1437aaa–1(b)(6), 1437aaa–2(b)(7)); and
‘‘(viii) 
section 
304(c)(4) 
(42 
U.S.C.
1437aaa–3(c)(4)).
‘‘(C) Section 302(a)(4) of the American Home-
ownership and Economic Opportunity Act of 2000
(42 U.S.C. 1437f note).
164
‘‘(D) Sections 233(b)(2) and 258(b) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12773(b)(2), 12808(b)).
‘‘(E) Sections 101(e) and 106 of the Housing
and Urban Development Act of 1968 (12 U.S.C.
1701w(e), 1701x).
‘‘(F) Section 220(d)(2)(G) of the Low-Income
Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4110(d)(2)(G)).
‘‘(G) Sections 422(b)(6), 423(b)(7), 424(c)(4),
442(b)(6), and 443(b)(6) of the Cranston-Gonzalez
National 
Affordable 
Housing 
Act 
(42 
U.S.C.
12872(b)(6), 12873(b)(7), 12874(c)(4), 12892(b)(6),
and 12893(b)(6)).
‘‘(H) Section 491(b)(1)(F)(iii) of the McKinney-
Vento 
Homeless 
Assistance 
Act 
(42 
U.S.C.
11408(b)(1)(F)(iii)).
‘‘(I) Sections 202(3) and 810(b)(2)(A) of the Na-
tive American Housing and Self-Determination Act of
1996 (25 U.S.C. 4132(3), 4229(b)(2)(A)).
‘‘(J) In the National Housing Act—
‘‘(i) in section 203 (12 U.S.C. 1709), the pe-
nultimate undesignated paragraph of paragraph
(2) of subsection (b), subsection (c)(2)(A), and
subsection (r)(4);
165
‘‘(ii) subsections (a) and (c)(3) of section
237 (12 U.S.C. 1715z–2); and
‘‘(iii) subsections (d)(2)(B) and (m)(1) of
section 255 (12 U.S.C. 1715z–20).
‘‘(K) Section 502(h)(4)(B) of the Housing Act of
1949 (42 U.S.C. 1472(h)(4)(B)).
‘‘(L) Section 508 of the Housing and Urban De-
velopment Act of 1970 (12 U.S.C. 1701z–7).’’.
(b) REPORT.—Not later than September 30, 2003, the
Secretary of Housing and Urban Development shall submit
a report to the Congress that—
(1) identifies the programs administered by the
Department of Housing and Urban Development
under which housing counseling is required, assisted,
or made available;
(2) describes the counseling offered or provided
under each such program, including the provider of
such counseling; and
(3) specifies any amounts made available under
law for technical assistance or similar functions
which are used to provide housing counseling.
SEC. 903. ASSISTANCE FOR SELF-HELP HOUSING PRO-
VIDERS.
(a) LIMITATION
ON ELIGIBLE EXPENSES.—Section
11(d) of the Housing Opportunity Program Extension Act
166
of 1996 (42 U.S.C. 12805 note) is amended by adding at
the end the following new paragraph:
‘‘(3) LIMITATION ON ELIGIBLE EXPENSES.—The
amount from grants under this section that is used
for eligible expenses (as such term is defined under
paragraph (2)) in connection with developing dwell-
ing units described in paragraph (1) may not exceed
an average of $15,000 per dwelling unit developed by
the grantee organization or consortium, except that
the Secretary may increase such $15,000 amount for
any particular geographic region that the Secretary
determines has elevated costs of land acquisition or
infrastructure improvement.’’.
(b) EXTENSION OF PERIOD FOR USE OF GRANTS.—
Section 11 of the Housing Opportunity Program Extension
Act of 1996 (42 U.S.C. 12805 note) is amended—
(1) in subsection (i)(5), by inserting before the
semicolon the following: ‘‘, and except that the Sec-
retary may extend such period for any organization
or consortia to not more than 48 months in any case
in which the Secretary determines, in the sole discre-
tion of the Secretary, that extraordinary cir-
cumstances (including a national emergency) warrant
such extension’’; and
167
(2) in subsection (j), by adding at the end the
following: ‘‘The Secretary may extend the period oth-
erwise applicable under this subsection for any orga-
nization or consortia to not more than 48 months in
any case in which the Secretary determines, in the
sole discretion of the Secretary, that extraordinary
circumstances (including a national emergency) war-
rant such extension.’’.
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section
11(p) of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended by striking ‘‘fis-
cal year 2001’’ and inserting ‘‘each of fiscal years 2003 and
2004’’.
SEC. 904. HOUSING OPPORTUNITIES FOR PERSONS WITH
AIDS.
Section 863 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12912) is amended to read
as follows:
‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for grants
under sections 860 and 861 such sums as may be necessary
for each of fiscal years 2003 and 2004.’’.
168
SEC. 905. USE OF CDBG AMOUNTS FOR CONSTRUCTION OF
TORNADO-SAFE 
SHELTER 
FOR 
MANUFAC-
TURED HOUSING PARKS.
(a) IN GENERAL.—Section 105(a) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5305(a))
is amended—
(1) in paragraph (22), by striking ‘‘and’’ at the
end;
(2) in paragraph (23), by striking the period at
the end and inserting a semicolon;
(3) in paragraph (25), by striking the period at
the end and inserting a semicolon; and
(4) by inserting at the end the following new
paragraph:
‘‘(26) the construction or improvement of
tornado- or storm-safe shelters for manufactured hous-
ing parks and residents of other manufactured hous-
ing, the acquisition of real property for sites for such
shelters, and the provision of assistance (including
loans and grants) to nonprofit or for-profit entities
(including owners of such parks) for such construc-
tion, improvement, or acquisition, except that a shel-
ter assisted with amounts made available pursuant to
this paragraph shall be located in a neighborhood
consisting predominantly of persons of low and mod-
erate income, except that a shelter assisted with
169
amounts made available pursuant to this paragraph
may not be made available exclusively for use of the
residents of a particular manufactured housing park
or of other manufactured housing, but shall generally
serve the residents of the area in which it is located;
and’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to any amounts otherwise made available for grants
under title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.), there are authorized
to be appropriated such sums as may be necessary for each
of fiscal years 2003 and 2004 for assistance only for activi-
ties pursuant to section 105(a)(24) of such Act.
SEC. 906. USE OF CDBG AMOUNTS TO ADMINISTER RE-
NEWAL COMMUNITIES.
Section 105(a)(13) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(13)) is amend-
ed by inserting ‘‘and renewal communities’’ after ‘‘enter-
prise zones’’.
SEC. 907. SUBSIDY LAYERING REVIEW.
Section 911 of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 3545 note) is amended
(1) in subsection (a)—
(A) by striking ‘‘may’’ and inserting
‘‘shall’’; and
170
(B) by striking ‘‘, submitted in accordance
with’’ and all that follows through the end of the
subsection and inserting the following: ‘‘that it
has made the determination required by sub-
section (m)(2)(A) of such section 42 upon the
first occasion that such determination was re-
quired and that it will make such determination
upon such additional occasions as are required
by law or regulation.’’;
(2) by striking subsections (b) and (c); and
(3) by redesignating subsection (d) as subsection
(b).
SEC. 908. STUDY OF COMMUNITY RENEWAL PROGRAM.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall conduct a study to analyze the
extent to which use of 1990 census data for purposes of de-
termining eligibility of areas for designation as renewal
communities for purposes of the community renewal pro-
gram under subchapter X of chapter 1 of Internal Revenue
Code of 1986 (26 U.S.C. 1400E et seq.), rather than data
from the 2000 census, impairs the ability of communities
to fully carry out the purposes of such program.
(b) REPORT.—The Secretary of Housing and Urban
Development shall submit a report to the Congress, not later
171
than September 30, 2004, setting forth the results of the
study conducted pursuant to subsection (a).
SEC. 909. CORRECTION OF INEQUITIES IN THE SECOND
ROUND OF EMPOWERMENT ZONES.
(a) GRANT AUTHORITY.—There are authorized to be
appropriated to the Secretary of Housing and Urban Devel-
opment such sums as may be necessary to make grant
awards to each of 15 urban empowerment zones designated
pursuant to section 1391(g) of the Internal Revenue Code
of 1986, taking into account any amount made available
pursuant to any prior appropriation made for such zones.
(b) AUTHORITY TO USE FUNDS TO IMPLEMENT STRA-
TEGIC PLAN.—Funds appropriated under Federal law for
an empowerment zone referred to in subsection (a) may be
used to implement the strategic plan for the zone,
including—
(1) economic development;
(2) infrastructure development;
(3) workforce development; and
(4) community development activities.
(c) AUTHORITY TO USE FUNDS TO PAY NON-FEDERAL
SHARE
OF
MATCHING
GRANTS.—Funds appropriated
under any Federal law for an empowerment zone referred
to in subsection (a) may be used to pay the non-Federal
share required in connection with another Federal grant-
172
in-aid program undertaken as part of activities assisted
under this section.
SEC. 910. EMPLOYMENT OPPORTUNITIES IN PUBLIC AND
INDIAN HOUSING AGENCIES.
Section 3 of the Housing and Urban Development Act
of 1968 (12 U.S.C. 1701u) is amended—
(1) by redesignating subsections (e), (f), and (g)
as subsections (f), (g) and (h), respectively;
(2) in subsection (f), as so redesignated, by in-
serting after paragraph (2) the following new para-
graph:
‘‘(3) ONE-STOP
DELIVERY
SYSTEM.—The term
‘one-stop delivery system’ has the meaning given that
term in section 134(c) of the Workforce Investment
Act of 1998 (29 U.S.C. 2864(c)).’’; and
(3) by inserting after subsection (d) the following
new subsection:
‘‘(e) REQUIREMENT FOR HIRING OF NEW EMPLOY-
EES.—
‘‘(1) THIRTY PERCENT REQUIREMENT.—It shall
be a condition of any contract awarded by a public
or Indian housing agency for work to be performed in
connection with development assistance provided from
the Capital Fund under section 9(d) of the United
States Housing Act of 1937, or from the Operating
173
Fund under section 9(e) of such Act, that, except as
provided in paragraph 2(B), a minimum of 30 per-
cent of all new employees hired by a contractor for
work in connection with such contract will be low- or
very low-income persons.
‘‘(2) COMPLIANCE.—As a condition of any con-
tract awarded for the work described in paragraph
(1), any contractor awarded such a contract shall—
‘‘(A)(i) immediately before beginning work
under such contract, submit evidence to the satis-
faction of the public or Indian housing agency
showing that a minimum of 30 percent of all
new employees hired for work in connection with
such contract are low- or very low-income per-
sons; and
‘‘(ii) submit evidence to the satisfaction of
the public or Indian housing agency showing
that a minimum of 30 percent of all subse-
quently hired new employees hired for work in
connection with such contract are low- or very
low-income persons; or
‘‘(B) if such contractor cannot meet the re-
quirement imposed by paragraph (1)—
‘‘(i) submit evidence to the satisfaction
of the public or Indian housing agency
174
showing that such contractor has given no-
tice of such contract to the one-stop delivery
system for the area which the housing sub-
ject to the contract is located, including the
particular skills and qualifications needed
by potential new employees for work under
such contract; and
‘‘(ii) provide to the public or Indian
housing agency evidence, as the Secretary
shall by regulation require, sufficient to
show that no newly hired employees who are
not low- or very low-income persons are
performing work in place of skilled low- or
very low-income persons who were provided
by either the public or Indian housing agen-
cy or by the one-stop delivery system.
‘‘(3) TRAINING.—Any contractor awarded a con-
tract for the work described in paragraph (1) may
not provide on-the-job training to any new employee
for work under such contract unless such new em-
ployee is a low- or very low-income person.’’.
SEC. 911. ASSISTANCE FOR NONPROFIT PURCHASERS PRE-
SERVING AFFORDABLE HOUSING.
(a) GRANTS.—The Secretary of Housing and Urban
Development may make grants, to the extent amounts are
175
made available for such grants, to eligible entities under
subsection (b) for use only for operational, working capital,
and organizational expenses of such entities and activities
by such entities to acquire eligible affordable housing for
the purpose of ensuring that the housing will remain afford-
able, as the Secretary considers appropriate, for low-income
or very low-income families (including elderly persons).
(b) ELIGIBLE ENTITIES.—The Secretary shall estab-
lish standards for entities to be considered eligible entities
for purposes of this section, which shall include require-
ments that an entity shall—
(1) be a nonprofit organization (as such term is
defined in section 104 of the Cranston-Gonzalez Na-
tional Affordable Housing Act) that has a regional or
national focus and has been in existence at least 3
years;
(2) have among its purposes maintaining the af-
fordability to low-income or very low-income families
of multifamily properties that are at risk of loss from
the inventory of housing that is affordable to low-in-
come or very low-income families;
(3) demonstrate need for assistance under this
section for the purposes under subsection (a), experi-
ence in carrying out activities referred to in such sub-
176
section, and capability to carry out such activities;
and
(4) demonstrate financial resources, financial ca-
pability, and organizational outreach to make best
use of scarce Federal resources by—
(A) levering effectively any funding under
this section with private-sector capital; and
(B) working in effective cooperation with
other similar organizations.
(c) DEFINITIONS.—For purposes of this section:
(1) ELIGIBLE AFFORDABLE HOUSING.—The term
‘‘eligible affordable housing’’ means housing that—
(A) consists of more than 4 dwelling units;
(B) serves exclusively or predominantly a
tenancy of low-income families or very low-in-
come families, or is insured or assisted under a
program of the Department of Housing and
Urban Development, the Department of Agri-
culture, or applicable State housing finance
agency programs under which the property is
subject to limitations on tenant rents, rent con-
tributions, or incomes; and
(C) is at risk, as determined by the Sec-
retary, of having loss of affordability because of
177
market rate conversion, deterioration, or demoli-
tion.
(2) LOW-INCOME
FAMILIES; VERY
LOW-INCOME
FAMILIES.—The terms ‘‘low-income families’’ and
‘‘very low-income families’’ have the meanings given
such terms in section 3(b) of the United States Hous-
ing Act of 1937.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary for grants under this section.
SEC. 912. HOMEOWNERSHIP FOR MUNICIPAL EMPLOYEES.
(a) ELIGIBLE ACTIVITIES.—Section 105(a) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)), as amended by the preceding provisions
of this Act, is further amended by adding at the end the
following new paragraph:
‘‘(27) provision of direct assistance to facilitate
and expand homeownership among uniformed em-
ployees (including policemen, firemen, and sanitation
and other maintenance workers) of, and teachers who
are employees of, the metropolitan city or urban
county (or an agency or school district serving such
city or county) receiving grant amounts under this
title pursuant to section 106(b) or the unit of general
local government (or an agency or school district serv-
178
ing such unit) receiving such grant amounts pursuant
to section 106(d), except that—
‘‘(A) such assistance may only be provided
on behalf of such employees who are first-time
homebuyers under the meaning given such term
in section 104(14) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C.
12704(14)), except that, for purposes of this
paragraph, such section shall be applied by sub-
stituting ‘section 105(a)(27) of the Housing and
Community Development Act of 1974’ for ‘title
II’;
‘‘(B) notwithstanding section 102(a)(20)(B)
or any other provision of this title, such assist-
ance may be provided on behalf of such employ-
ees whose family incomes do not exceed—
‘‘(i) 115 percent of the median income
of the area involved, as determined by the
Secretary with adjustments for smaller and
larger families; or
‘‘(ii) with respect only to areas that the
Secretary determines have high housing
costs, taking into consideration median
house prices and median family incomes for
the area, 150 percent of the median income
179
of the area involved, as determined by the
Secretary with adjustments for smaller and
larger families;
‘‘(C) such assistance shall be used only for
acquiring principal residences for such employ-
ees, in a manner that involves obligating
amounts with respect to any particular mortgage
over a period of 1 year or less, by—
‘‘(i) 
providing 
amounts 
for
downpayments on mortgages;
‘‘(ii) paying reasonable closing costs
normally associated with the purchase of a
residence;
‘‘(iii) obtaining pre- or post-purchase
counseling relating to the financial and
other obligations of homeownership; or
‘‘(iv) subsidizing mortgage interest
rates; and
‘‘(D) any residence purchased using assist-
ance provided under this paragraph shall be sub-
ject to restrictions on resale that are—
‘‘(i) established by the metropolitan
city, urban county, or unit of general local
government providing such assistance; and
180
‘‘(ii) determined by the Secretary to be
appropriate to comply with subparagraphs
(A) and (B) of section 215(b)(3) of the
Cranston-Gonzalez 
National 
Affordable
Housing Act (42 U.S.C. 12745(b)(3)), ex-
cept that, for purposes of this paragraph,
such subparagraphs shall be applied by sub-
stituting ‘section 105(a)(27) of the Housing
and Community Development Act of 1974’
for ‘this title’;’’.
(b) PRIMARY OBJECTIVES.—Section 105(c) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(c)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) HOMEOWNERSHIP ASSISTANCE FOR MUNICIPAL
EMPLOYEES.—Notwithstanding any other provision of this
title, any assisted activity described in subsection (a)(27)
of this section shall be considered, for purposes of this title,
to benefit persons of low and moderate income and to be
directed toward the objective under section 101(c)(3).’’.
SEC. 913. SENSE OF CONGRESS REGARDING HUD OFFICE
OF DISABILITY POLICY.
(a) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) 54,000,000 Americans have disabilities;
181
(2) 1,300,000 disabled Americans have worst-
case housing needs;
(3) people with disabilities and their families
face unique challenges in securing adequate housing;
(4) it is the policy of the United States, as en-
shrined in the Fair Housing Act, the Rehabilitation
Act of 1973 and the Americans With Disabilities Act
of 1990, and other Federal laws, that the disabled
have the same rights to housing as other Americans;
(5) people with disabilities represent an impor-
tant constituency of the Department of Housing and
Urban Development and rely heavily on many of the
Department’s programs for their housing needs;
(6) people with disabilities need a single, one-
stop source for help with their housing needs;
(7) people with disabilities need an advocate
within HUD;
(8) HUD has designated a Deputy Assistant Sec-
retary for Special Needs whose responsibilities in-
cludes many populations with housing challenges, but
people with disabilities are not specifically cited as
among those responsibilities;
(9) HUD has, in the past, established special re-
source offices, such as the Veteran Resource Center
(HUDVET), to provide information on HUD’s com-
182
munity-based programs and services to specific HUD
constituents and their families;
(10) people with disabilities are overlooked in
much of HUD’s administrative structure and ought to
receive as much attention from the Federal Govern-
ment’s housing agency as other groups with critical
housing needs; and
(11) HUD currently has an Office of Disability
Policy, but there has not been a Director of that Of-
fice since January 2001.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the Secretary of Housing and Urban Develop-
ment should—
(1) immediately appoint a permanent Director
of the Office of Disability Policy;
(2) examine the role of the Department’s Office
of Disability Policy, its relationship to the Office of
Special Needs, and whether and what changes might
be made to increase attention to people with disabil-
ities within the Department’s programs and policies;
and
(3) establish a resource center for people with
disabilities and their families within the Office of
Disability Policy to serve as a portal into the Depart-
ment’s community-based programs and services.
183
SEC. 914. TRANSFER OF RURAL MULTIFAMILY RENTAL
HOUSING PROJECTS TO NONPROFITS AND
LOCAL HOUSING AUTHORITIES.
Section 515(h) of the Housing Act of 1949 (42 U.S.C.
1485(h)) is amended—
(1) by striking ‘‘(h) PROJECT TRANSFERS.—
After’’ and inserting the following:
‘‘(h) PROJECT TRANSFERS.—
‘‘(1) LIMITATION.—After’’; and
(2) by inserting at the end the following new
paragraph:
‘‘(2) TRANSFER AND RENOVATION OF EXISTING
PROJECTS.—
‘‘(A) TRANSFER.—In carrying out this Act,
the Secretary should encourage the transfer of
ownership or control of projects for which a loan
is made or insured under this section to non-
profit organizations and local housing authori-
ties (including public housing agencies).
‘‘(B) RENOVATION.—In carrying out this
Act, the Secretary should encourage, and give
priority in funding, to the renovation of existing
projects for which a loan is made or insured
under this section, subsequent to transfer of such
projects to nonprofit organizations and housing
authorities.’’.
184
SEC. 915. SENSE OF CONGRESS REGARDING CONSUMER
PROTECTION AND HOME WARRANTIES.
(a) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) 30,000 newly constructed homes were insured
under the National Housing Act in 2000 and a ma-
jority of those homes were purchased by first-time
low- and moderate-income homebuyers;
(2) approximately 90 percent of those homes are
now protected by private sector insurance-backed war-
ranties against structural damage for ten years, and
an estimated 77 percent of structural damage takes
place when a home is four years or older, with an av-
erage cost of $30,000 per incident of major structural
damage;
(3) Mortgagee Letter 2001–27, issued by the De-
partment of Housing and Urban Development in Oc-
tober 2001 will have the effect of discouraging the use
of ten-year insurance-backed warranties, leaving
homeowners with a one-year builder warranty to pro-
tect the value of the home; and
(4) major structural damage to a home will lead
to homeowner defaults and, for homes with mortgages
insured under the National Housing Act, the Sec-
retary of Housing and Urban Development is liable
185
for 100 percent of the unpaid balance of a mortgage
when a homeowner defaults.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the Secretary of Housing and Urban Develop-
ment should implement a program to provide incentives to
homebuilders to offer ten-year insurance-backed private sec-
tor warranties for newly constructed homes purchased with
mortgages insured under the National Housing Act.
SEC. 916. DEMONSTRATION PROGRAM FOR AFFORDABLE
HOUSING DATABASE.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall carry out a demonstration pro-
gram to allow the development and creation of an electronic
or otherwise readily available database that provides agen-
cies, municipalities, and the general public access to infor-
mation about available affordable housing and programs
that pertain to the affordable housing continuum. The data-
base shall include regularly updated lists of rental units
that accept rental assistance vouchers under the program
under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) and shall contain information about the
location of the rental units, the number of units of each
bedroom size, and the accessibility of the units to public
transportation.