169
costs (as such term is defined in section 502 of the
Congressional Budget Act of 1974) of loan obliga-
tions entered into pursuant to this paragraph.
‘‘(3) UP-FRONT GRANTS AND LOANS.—
‘‘(A) IN
GENERAL.—The Secretary may
utilize the budget authority provided for con-
tracts issued under this section for project-
based assistance under section 8 of the United
States Housing Act of 1937 to (in addition to
providing project-based section 8 rental assist-
ance)—
‘‘(i) provide up-front grants and loans
to nonprofit organizations or public agen-
cies (including public housing agencies) for
the necessary cost of rehabilitation and
other related development costs; or
‘‘(ii) pay any cost to the Government,
as defined in section 502 of the Congres-
sional Budget Act of 1974, for loans made
pursuant to paragraph (3) of this sub-
section.
‘‘(B) APPLICABILITY
OF
USE
RESTRIC-
TIONS.—The requirements under subsection (g)
regarding units not receiving project-based as-
sistance under subsection (e) shall apply with
170
respect to any units in a project assisted under
this paragraph that otherwise would have re-
ceived project-based assistance under section 8
of the United States Housing Act of 1937.
‘‘(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
for grants and loans under this paragraph
$250,000,000 for each of fiscal years 1995 and
1996, of which such sums as may be necessary
shall be available in each such fiscal year for
the costs (as such term is defined in section
502 of the Congressional Budget Act of 1974)
of such loans.
‘‘(4) ALTERNATIVE USES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, after providing notice to
and an opportunity to comment by preexisting
tenants, the Secretary may allow not more than
5 percent of the total number of units in multi-
family housing projects that are disposed of by
the Secretary during any single fiscal year to be
made available for—
‘‘(i) uses (other than rental or cooper-
ative uses) that benefit the tenants of the
project, including low-income homeowner-
171
ship opportunities, or in any particular
project, community space, office space for
tenant or housing-related service providers
or security programs, or small business
uses; or
‘‘(ii) any other uses, if the Secretary
and the unit of general local government or
area-wide governing body determine that
such use will further fair housing, commu-
nity development, or neighborhood revital-
ization goals.
‘‘(B) DISPLACEMENT
PROTECTION.—The
Secretary may take actions under subparagraph
(A) only if—
‘‘(i) tenant-based rental assistance
under section 8 of the United States Hous-
ing Act of 1937 is made available to each
eligible family residing in the project that
is displaced as a result of such actions; and
‘‘(ii) the Secretary determines that
sufficient habitable, affordable rental hous-
ing is available in the market area in which
the project is located to allow use of such
assistance.
172
‘‘(5) TRANSFER FOR USE UNDER OTHER PRO-
GRAMS OF SECRETARY.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this section, the Secretary
may transfer a multifamily housing project—
‘‘(i) to a public housing agency for use
of the project as public housing; or
‘‘(ii) to an entity eligible to own or op-
erate housing assisted under section 202 of
the Housing Act of 1959 or under section
811 of the Cranston-Gonzalez National Af-
fordable Housing Act for use as supportive
housing under either of such sections.
‘‘(B) REQUIREMENTS FOR AGREEMENT.—
An agreement providing for the transfer of a
project described in subparagraph (A) shall—
‘‘(i) contain such terms, conditions,
and limitations as the Secretary deter-
mines appropriate, including requirements
to ensure use of the project as public hous-
ing, supportive housing under section 202
of the Housing Act of 1959, or supportive
housing under section 811 of the Cran-
ston-Gonzalez National Affordable Housing
Act, as applicable; and
173
‘‘(ii) ensure that no tenant of the
project will be displaced as a result of ac-
tions taken under this paragraph.
‘‘(i) CONTRACT
REQUIREMENTS.—Contracts for
project-based rental assistance under section 8 of the
United States Housing Act of 1937 provided pursuant to
this section shall be subject to the following requirements:
‘‘(1) CONTRACT
TERM.—The contract shall
have a term of 15 years, except that—
‘‘(A) the term may be less than 15 years
to the extent that the Secretary finds that,
based on the rental charges and financing for
the multifamily housing project to which the
contract relates, the financial viability of the
project can be maintained under a contract hav-
ing such a term;
‘‘(B) to the extent that units receive
project-based assistance for a contract term of
less than 15 years, the Secretary shall require
that the amount of rent payable by tenants of
the project for such units shall not exceed the
amount payable for rent under section 3(a) of
the United States Housing Act of 1937 for a
period of at least 15 years; and
174
‘‘(C) the term may be less than 15 years
if such assistance is provided—
‘‘(i) under a contract authorized
under section 6 of the HUD Demonstra-
tion Act of 1993; and
‘‘(ii) pursuant to a disposition plan
under this section for a project that is de-
termined by the Secretary to be otherwise
in compliance with this section.
‘‘(2) CONTRACT RENT.—The Secretary shall es-
tablish contract rents for section 8 project-based
rental contracts issued under this section at levels
that provide sufficient amounts for the necessary
costs of acquiring (if any), rehabilitating, and oper-
ating the multifamily housing project and do not ex-
ceed 144 percent of the existing housing fair market
rentals for the market area in which the project as-
sisted under the contract is located.
‘‘(j) DISPOSITION PLAN.—
‘‘(1) IN GENERAL.—Prior to the sale of a mul-
tifamily housing project that is owned by the Sec-
retary, the Secretary shall develop an initial disposi-
tion plan for the project that specifies the minimum
terms and conditions of the Secretary for disposition
of the project, the initial sales price that is accept-
175
able to the Secretary, and the assistance that the
Secretary plans to make available to a prospective
purchaser in accordance with this section.
‘‘(2) MARKET-WIDE PLANS.—In developing ini-
tial disposition plans under this subsection, the Sec-
retary shall coordinate the disposition of multifamily
housing projects located within the same market
area to the extent and in such manner as the Sec-
retary determines appropriate to carry out the goals
under subsection (a).
‘‘(3) SALES PRICE.—The initial sales price shall
be reasonably related to the intended use of the
property after sale, any rehabilitation requirements
for the project, the rents for units in the project that
can be supported by the market, the amount of rent-
al assistance available for the project under section
8 of the United States Housing Act of 1937, and
the occupancy profile of the project.
‘‘(4) COMMUNITY AND TENANT INPUT.—In car-
rying out this section, the Secretary shall develop
procedures—
‘‘(A) to obtain appropriate and timely
input into disposition plans from officials of the
unit of general local government and any State
government affected, the community in which
176
the project is situated, and the tenants of the
project; and
‘‘(B) to facilitate, where feasible and ap-
propriate, the sale of multifamily housing
projects to existing tenant organizations with
demonstrated capacity, to public or nonprofit
entities that represent or are affiliated with ex-
isting tenant organizations, or to other public
or nonprofit entities.
‘‘(5) TECHNICAL
ASSISTANCE.—To carry out
the procedures developed under paragraph (4), the
Secretary may provide technical assistance, directly
or indirectly, and may use amounts available for
technical assistance under the Emergency Low In-
come Housing Preservation Act of 1987, subtitle C
of the Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990, subtitle B of title
IV of the Cranston-Gonzalez National Affordable
Housing Act, or this section, for the provision of
technical assistance under this paragraph. Recipients
of technical assistance funding under the provisions
referred to in this paragraph shall be permitted to
provide technical assistance to the extent of such
funding under any of such provisions or under this
177
paragraph, notwithstanding the source of the fund-
ing.
‘‘(k) RIGHT OF FIRST REFUSAL FOR LOCAL AND
STATE GOVERNMENT AGENCIES.—
‘‘(1) 
NOTIFICATION
OF
ACQUISITION
OF
TITLE.—Not later than 30 days after acquiring title
to a multifamily housing project, the Secretary shall
notify the unit of general local government (which,
for purposes of this subsection, shall include any
public housing agency) for the area in which the
project is located and the State agency or agencies
designated by the Governor of the State in which the
project is located of such acquisition.
‘‘(2) RIGHT OF FIRST REFUSAL.—During the
period beginning upon acquisition of title to a multi-
family housing project and ending 45 days after
completion of notification under paragraph (1), the
Secretary may offer to sell and may sell the project
only to the unit of general local government or the
designated State agency.
‘‘(3) EXPRESSION OF INTEREST.—The unit of
general local government or designated State agency
may submit to the Secretary a preliminary expres-
sion of interest in a project not later than 45 days
after receiving notification from the Secretary under
178
paragraph (1) regarding the project. The Secretary
may take such actions as may be necessary to re-
quire the unit of general local government or des-
ignated State agency to substantiate such interest.
‘‘(4) TIMELY
EXPRESSION
OF
INTEREST.—If
the unit of general local government or designated
State agency has submitted an expression of interest
in a project before the expiration of the 45-day pe-
riod referred to in paragraph (3) and has substan-
tiated such interest if requested, the Secretary, upon
approval of a disposition plan for the project, shall—
‘‘(A) notify the unit of general local gov-
ernment and designated State agency of the
terms and conditions of the disposition plan;
and
‘‘(B) provide that, for 90 days after the
date of such notification, only the unit of gen-
eral local government or designated State agen-
cy may make an offer to purchase the project.
‘‘(5) FAILURE
TO
TIMELY
EXPRESS
INTER-
EST.—If the unit of general local government or des-
ignated State agency does not timely express and, if
requested, substantiate interest in a project as pro-
vided in paragraph (4), the Secretary may offer the
179
project for sale to any interested person or entity
upon approval of the disposition plan for the project.
‘‘(6) ACCEPTANCE OF OFFERS.—If the unit of
general local government or designated State agency
timely expresses and, if requested, substantiates in-
terest in a project as provided in paragraph (4), the
Secretary shall accept an offer made by the unit of
general local government or designated State agency
during the 90-day period for the project under para-
graph (4)(B) that complies with the terms and con-
ditions of the disposition plan for the project. The
Secretary may accept an offer that does not comply
with the terms and conditions of the disposition plan
if the Secretary determines that the offer will fur-
ther the goals specified in subsection (a) by actions
that include extension of the duration of low-income
affordability restrictions or otherwise restructuring
the transaction in a manner that enhances the long-
term affordability for low-income persons. The Sec-
retary may reduce the initial sales price in exchange
for the extension of low-income affordability restric-
tions beyond the period of assistance contemplated
by the attachment of assistance pursuant to sub-
section (i)(1) and in order to facilitate affordable
rents.
180
‘‘(7) FAILURE TO SELL TO LOCAL OR STATE
GOVERNMENT
AGENCY.—If the Secretary and the
unit of general local government or designated State
agency cannot reach agreement on an offer for pur-
chase of a project within the 90-day period for the
project under paragraph (4)(B), the Secretary may
offer the project for sale to the general public.
‘‘(8) PURCHASE BY UNIT OF GENERAL LOCAL
GOVERNMENT
OR
DESIGNATED
STATE
AGENCY.—
Notwithstanding any other provision of law, a unit
of general local government (including a public hous-
ing agency) or designated State agency may pur-
chase a project in accordance with this subsection.
‘‘(9) APPLICABILITY.—This subsection shall
apply to projects that are acquired on or after the
effective date of this subsection. With respect to
projects acquired before such effective date, the Sec-
retary may apply—
‘‘(A) the requirements of paragraphs (2)
and (3) of section 203(e) (as in effect imme-
diately before the effective date of this sub-
section); or
‘‘(B) the requirements of paragraphs (1)
through (7) of this subsection, if—
181
‘‘(i) the Secretary gives the unit of
general local government or designated
State agency 45 days to express interest in
the project; and
‘‘(ii) the unit of general local govern-
ment or designated State agency expresses
interest in the project before the expiration
of the 45-day period, and substantiates
such interest if requested, within 90 days
from the date of notification of the terms
and conditions of the disposition plan to
make an offer to purchase the project.
‘‘(10) TRANSFER BY LOCAL OR STATE GOVERN-
MENT AGENCY PURCHASERS.—The Secretary shall
permit units of general local government and des-
ignated State agencies to transfer multifamily hous-
ing projects acquired under the right of first refusal
under this subsection to a private entity, but only if
the local government or State agency identifies—
‘‘(A) in the offer to purchase the project
accepted by the Secretary under this subsection,
whether it may transfer the project after acqui-
sition; and
‘‘(B) before the project is transferred, the
date of the transfer and the transferee.
182
‘‘(l) DISPLACEMENT OF TENANTS AND RELOCATION
ASSISTANCE.—
‘‘(1) IN GENERAL.—Whenever tenants will be
displaced as a result of the disposition of, or repairs
to, a multifamily housing project that is owned by
the Secretary (or for which the Secretary is mortga-
gee in possession), the Secretary shall identify ten-
ants who will be displaced and shall notify all such
tenants of their pending displacement and of any re-
location assistance that may be available. In the case
of the displacement of tenants of a multifamily hous-
ing project that is not owned by the Secretary (and
for which the Secretary is not mortgagee in posses-
sion), the Secretary shall require the owner of the
project to carry out the requirements of this para-
graph.
‘‘(2) RIGHTS
OF
DISPLACED
TENANTS.—The
Secretary shall ensure for any such tenant (who con-
tinues to meet applicable qualification standards)
the right—
‘‘(A) to return, whenever possible, to a re-
paired unit;
‘‘(B) to occupy a unit in another multifam-
ily housing project owned by the Secretary;
183
‘‘(C) to obtain housing assistance under
the United States Housing Act of 1937; or
‘‘(D) to receive any other available reloca-
tion assistance as the Secretary determines to
be appropriate.
‘‘(m) MORTGAGE AND PROJECT SALES.—
‘‘(1) IN GENERAL.—The Secretary may not ap-
prove the sale of any loan or mortgage held by the
Secretary (including any loan or mortgage owned by
the Government National Mortgage Association) on
any subsidized project or formerly subsidized
project, unless such sale is made as part of a trans-
action that will ensure that such project will con-
tinue to operate at least until the maturity date of
such loan or mortgage, in a manner that will provide
rental housing on terms at least as advantageous to
existing and future tenants as the terms required by
the program under which the loan or mortgage was
made or insured prior to the assignment of the loan
or mortgage on such project to the Secretary.
‘‘(2) SALE OF CERTAIN PROJECTS.—The Sec-
retary may not approve the sale of any subsidized
project—
‘‘(A) that is subject to a mortgage held by
the Secretary; or
184
‘‘(B) if the sale transaction involves the
provision of any additional subsidy funds by the
Secretary or a recasting of the mortgage, unless
such sale is made as part of a transaction that
will ensure that such project will continue to
operate at least until the maturity date of the
loan or mortgage, in a manner that will provide
rental housing on terms at least as advan-
tageous to existing and future tenants as the
terms required by the program under which the
loan or mortgage was made or insured prior to
the proposed sale of the project.
‘‘(3) MORTGAGE SALES TO STATE AND LOCAL
GOVERNMENTS.—Notwithstanding any provision of
law that may require competitive sales or bidding,
the Secretary may carry out negotiated sales of sub-
sidized or formerly subsidized mortgages held by the
Secretary, without the competitive selection of pur-
chasers or intermediaries, to units of general local
government or State agencies, or groups of investors
that include at least one such unit of general local
government or State agency, if the negotiations are
conducted with such agencies, except that—
‘‘(A) the terms of any such sale shall in-
clude the agreement of the purchasing agency
185
or unit of local government or State agency to
act as mortgagee or owner of a beneficial inter-
est in such mortgages, in a manner consistent
with maintaining the projects that are subject
to such mortgages for occupancy by the general
tenant group intended to be served by the appli-
cable mortgage insurance program, including,
to the extent the Secretary determines appro-
priate, authorizing such unit of local govern-
ment or State agency to enforce the provisions
of any regulatory agreement or other program
requirements applicable to the related projects;
and
‘‘(B) the sales prices for such mortgages
shall be, in the determination of the Secretary,
the best prices that may be obtained for such
mortgages from a unit of general local govern-
ment or State agency, consistent with the ex-
pectation and intention that the projects fi-
nanced will be retained for use under the appli-
cable mortgage insurance program for the life
of the initial mortgage insurance contract.
‘‘(4) 
SALE
OF
MORTGAGES
COVERING
UNSUBSIDIZED
PROJECTS.—Notwithstanding 
any
other provision of law, the Secretary may sell mort-
186
gages held on unsubsidized projects on such terms
and conditions as the Secretary may prescribe.
‘‘(5) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) SUBSIDIZED
PROJECT.—The term
‘subsidized project’ means a multifamily hous-
ing project that, immediately prior to the as-
signment of the mortgage on such project to, or
the acquisition of such mortgage by, the Sec-
retary, was receiving any of the following types
of assistance:
‘‘(i) Below market interest rate mort-
gage insurance under the proviso of section
221(d)(5) of the National Housing Act.
‘‘(ii) 
Interest 
reduction 
payments
made in connection with mortgages insured
under section 236 of the National Housing
Act.
‘‘(iii) Direct loans made under section
202 of the Housing Act of 1959.
‘‘(iv) Assistance in the form of—
‘‘(I) rent supplement payments
under section 101 of the Housing and
Urban Development Act of 1965;
187
‘‘(II) housing assistance pay-
ments made under section 23 of the
United States Housing Act of 1937
(as in effect before January 1, 1975);
or
‘‘(III) housing assistance pay-
ments made under section 8 of the
United States Housing Act of 1937
(excluding payments made for tenant-
based assistance under section 8),
if (except for purposes of section 183(c) of
the Housing and Community Development
Act of 1987) such assistance payments are
made to more than 50 percent of the units
in the project.
‘‘(B) FORMERLY SUBSIDIZED PROJECT.—
The term ‘formerly subsidized project’ means a
multifamily housing project owned by the Sec-
retary that was a subsidized project imme-
diately prior to its acquisition by the Secretary.
‘‘(C) UNSUBSIDIZED PROJECT.—The term
‘unsubsidized project’ means a multifamily
housing project owned by the Secretary that is
not a subsidized project or a formerly sub-
sidized project.
188
‘‘(n) HUD DISPOSITION TEAM.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish and maintain within the Department of Housing
and Urban Development a multifamily housing dis-
position team under this subsection consisting of
employees of the Department. The Secretary may
disband the multifamily housing disposition team
only after determining that the inventory of multi-
family housing projects that are owned by the Sec-
retary or subject to a mortgage held by the Sec-
retary existing upon the date of the enactment of
this subsection has been eliminated or substantially
reduced.
‘‘(2) DUTIES.—The sole responsibilities of the
multifamily housing disposition team shall be to fa-
cilitate the disposition under this section of multi-
family housing projects that are owned by the Sec-
retary or are subject to a mortgage held by the Sec-
retary for the purpose of eliminating the inventory
of such projects of the Department of Housing and
Urban Development.
‘‘(3) ACTIVITIES.—In carrying out its respon-
sibilities under paragraph (2), the multifamily hous-
ing disposition team shall—
189
‘‘(A) review the inventory of multifamily
housing projects of the Department of Housing
and Urban Development;
‘‘(B) determine the locations having the
most such projects;
‘‘(C) make on-site visits to area, field, and
other local offices of the Department to conduct
its responsibilities with respect to multifamily
housing projects located within the jurisdiction
of such offices, giving priority to offices in loca-
tions having the most such projects; and
‘‘(D) assist the employees and staff of such
offices to establish schedules and disposition
plans for the disposition of multifamily housing
projects located within the jurisdiction of such
offices and to implement such schedules, plans,
and disposition.
‘‘(4) USE OF EXISTING EMPLOYEES.—This sub-
section may not be construed to require or authorize
the Secretary to establish any employment position
in addition to the number of employment positions
of the Department of Housing and Urban Develop-
ment otherwise authorized in law.
‘‘(o) REPORT TO CONGRESS.—Not later than June
1 of each year, the Secretary shall submit to the Congress
190
a report describing the status of multifamily housing
projects owned by or subject to mortgages held by the Sec-
retary. The report shall include—
‘‘(1) the name, address, and size of each
project;
‘‘(2) the nature and date of assignment of each
project;
‘‘(3) the status of the mortgage for each
project;
‘‘(4) the physical condition of each project;
‘‘(5) for each project, an occupancy profile of
the project, stating the income, family size, race, and
ethnic origin of current residents and the rents paid
by such residents, to the extent such information is
available;
‘‘(6) the proportion of units in each project that
are vacant;
‘‘(7) the date on which the Secretary became
mortgagee in possession of each project, if applica-
ble;
‘‘(8) the date and conditions of any foreclosure
sale for a project;
‘‘(9) the date of acquisition of each project by
the Secretary, if applicable;
191
‘‘(10) the date and conditions of any property
disposition sale for a project;
‘‘(11) a description of actions undertaken pur-
suant to this section, including a description of the
effectiveness of such actions and any impediments to
the disposition or management of multifamily hous-
ing projects;
‘‘(12) a description of any of the functions per-
formed in connection with this section that are con-
tracted out to public or private entities or to States;
and
‘‘(13) a description of the activities carried out
under subsection (k) during the preceding year.’’.
SEC. 433. CLARIFICATION OF PUBLIC HOUSING PREF-
ERENCES.
Section 6(c)(4)(A)(i) of the United States Housing
Act of 1937 (42 U.S.C. 1437d(c)(4)(A)(i)) is amended by
inserting after ‘‘displaced’’ the following: ‘‘(including dis-
placement because of disposition of a multifamily housing
project under section 203 of the Housing and Community
Development Amendments of 1978)’’.
SEC. 434. AMENDMENT TO NATIONAL HOUSING ACT.
Title V of the National Housing Act (12 U.S.C.
1731a et seq.) is amended by adding at the end the follow-
ing new section:
192
‘‘PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY
HOUSING PROJECTS
‘‘SEC. 541. (a) AUTHORITY.—Notwithstanding any
other provision of law, if the Secretary is requested to ac-
cept assignment of a mortgage insured by the Secretary
that covers a multifamily housing project (as such term
is defined in section 203(b) of the Housing and Commu-
nity Development Amendments of 1978) and the Sec-
retary determines that partial payment would be less cost-
ly to the Federal Government than other reasonable alter-
natives for maintaining the low-income character of the
project, the Secretary may request the mortgagee, in lieu
of assignment, to—
‘‘(1) accept partial payment of the claim under
the mortgage insurance contract; and
‘‘(2) recast the mortgage, under such terms and
conditions as the Secretary may determine.
‘‘(b) REPAYMENT.—As a condition to a partial claim
payment under this section, the mortgagor shall agree to
repay to the Secretary the amount of such payment and
such obligation shall be secured by a second mortgage on
the property on such terms and conditions as the Sec-
retary may determine.’’.
193
SEC. 435. EFFECTIVE DATE.
The Secretary shall issue interim regulations nec-
essary to implement the amendments made by sections
432 and 433 not later than 90 days after the date of the
enactment of this Act. Such interim regulations shall take
effect upon issuance and invite public comment on the in-
terim regulations. The Secretary shall issue final regula-
tions to implement such amendments after opportunity for
such public comment, but not later than 12 months after
the date of issuance of such interim regulations.
Subtitle C—Secondary Mortgage
Market Programs
SEC. 451. LIMITATION ON GNMA GUARANTEES OF MORT-
GAGE-BACKED SECURITIES.
Section 306(g)(2) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1721(g)(2)) is amend-
ed to read as follows:
‘‘(2) Notwithstanding any other provision of law and
subject only to the absence of qualified requests for guar-
antees, to the authority provided in this subsection, and
to the extent of or in such amounts as any funding limita-
tion approved in appropriation Acts, the Association shall
enter into commitments to issue guarantees under this
subsection in an aggregate amount of $130,000,000,000
during fiscal year 1995 and $130,000,000,000 during fis-
cal year 1996. There are authorized to be appropriated
194
to cover the costs (as such term is defined in section 502
of the Congressional Budget Act of 1974) of guarantees
issued under this Act by the Association such sums as may
be necessary for each of fiscal years 1995 and 1996.’’.
Subtitle D—Emergency Mortgage
Relief
SEC. 471. AMENDMENTS TO EMERGENCY HOMEOWNERS’
RELIEF ACT.
(a) FINDINGS.—Section 102(a) of the Emergency
Homeowners’ Relief Act (12 U.S.C. 2701(a)) is amend-
ed—
(1) by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) certain homeowners in the United States
are encountering severe economic hardships as a re-
sult of unemployment or a reduction in income;’’;
(2) in paragraph (2), by striking ‘‘adverse eco-
nomic conditions’’ and inserting ‘‘economic hard-
ships’’; and
(3) in paragraph (3), by striking ‘‘economic
conditions’’ and inserting ‘‘their economic condi-
tions’’.
(b) MORTGAGES ELIGIBLE FOR ASSISTANCE.—Sec-
tion 103 of the Emergency Homeowners’ Relief Act (12
U.S.C. 2702) is amended—
195
(1) in paragraph (5), by striking ‘‘and’’ at the
end;
(2) in paragraph (6)—
(A) by inserting ‘‘a 1- to 4-family resi-
dence that is’’ after ‘‘is’’; and
(B) by striking the period at the end and
inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(7) the delinquency for which the holder of the
mortgage intends to foreclose commenced after the
date of the enactment of the Housing and Commu-
nity Development Act of 1994.’’.
(c) AUTHORIZATION OF APPROPRIATIONS.—Section
109(a) of the Emergency Homeowners’ Relief Act (12
U.S.C. 2708(a)) is amended by striking ‘‘, except that’’
and all that follows through ‘‘$500,000,000’’ and inserting
‘‘for fiscal years 1995 and 1996’’.
(d) EXPIRATION
DATE.—Section 109(b) of the
Emergency Homeowners’ Relief Act (12 U.S.C. 2708(b))
is amended by striking ‘‘September 30, 1977’’ and insert-
ing ‘‘September 30, 1996’’.
(e) NOTIFICATION.—Section 110 of the Emergency
Homeowners’ Relief Act (12 U.S.C. 2709) is amended—
(1) in clause (1) of the 1st sentence—
196
(A) by striking ‘‘October 1, 1977’’ and in-
serting ‘‘September 30, 1996’’; and
(B) by inserting ‘‘single family’’ before
‘‘residential’’;
(2) in clause (2) of the 1st sentence, by striking
‘‘until one year from the date of the enactment of
this title’’ and inserting ‘‘during fiscal years 1995
and 1996’’; and
(3) in the 2d sentence, by striking ‘‘Federal
Home Loan Bank Board, the Federal Savings and
Loan Insurance Corporation’’ and inserting ‘‘Office
of Thrift Supervision’’.
(f) REPORTS.—Section 111 of the Emergency Home-
owners’ Relief Act (12 U.S.C. 2710) is amended—
(1) by striking ‘‘Within’’ and all that follows
through ‘‘Congress on’’ and inserting the following:
‘‘For fiscal year 1995 and each fiscal year thereafter
that begins before the date in section 109(b), the
Secretary shall submit a report under this section to
the Congress. The report for a fiscal year shall be
submitted not later than 60 days after the end of
the fiscal year and shall describe’’;
(2) by striking ‘‘purposes’’ and inserting ‘‘pur-
pose’’;
(3) by inserting ‘‘and’’ before ‘‘(4)’’; and
197
(4) by striking ‘‘; and (5)’’ and all that follows
and inserting a period.
TITLE V—RURAL HOUSING
SEC. 501. PROGRAM AUTHORIZATIONS.
(a) INSURANCE AND GUARANTEE AUTHORITY.—Sec-
tion 513(a) of the Housing Act of 1949 (42 U.S.C.
1483(a)) is amended to read as follows:
‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—
‘‘(1) IN GENERAL.—The Secretary may, to the
extent approved in appropriation Acts, insure and
guarantee loans under this title during fiscal years
1995 and 1996, in aggregate amounts not to exceed
$3,424,779,720 and $3,527,523,112, respectively, as
follows:
‘‘(A) For insured or guaranteed loans
under section 502 on behalf of low-income bor-
rowers 
receiving 
assistance 
under 
section
521(a)(1), $1,802,500,000 for fiscal year 1995
and $1,856,575,000 for fiscal year 1996.
‘‘(B) For guaranteed loans under section
502(h) on behalf of low- and moderate-income
borrowers, $772,500,000 for fiscal year 1995
and $795,675,000 for fiscal year 1996.
198
‘‘(C) 
For 
loans 
under 
section 
504,
$36,050,000 
for 
fiscal 
year 
1995 
and
$37,131,500 for fiscal year 1996.
‘‘(D) For insured loans under section 514,
$18,053,950 
for 
fiscal 
year 
1995 
and
$18,595,569 for fiscal year 1996.
‘‘(E) For insured loans under section 515,
$793,675,770 
for 
fiscal 
year 
1995 
and
$817,486,043 for fiscal year 1996.
‘‘(F) 
For 
loans 
under 
section
523(b)(1)(B), $1,000,000 for fiscal year 1995
and $1,030,000 for fiscal year 1996.
‘‘(G) For site loans under section 524,
$1,000,000 for fiscal year 1995 and $1,030,000
for fiscal year 1996.
‘‘(2) LIMITATION
ON
USE.—Notwithstanding
any other provision of law, insured or guaranteed
loan authority in this title for any fiscal year shall
not be transferred or used for any purpose not speci-
fied in this title.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b))
is amended to read as follows:
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for fiscal years 1995
199
and 1996, and to remain available until expended, the fol-
lowing amounts:
‘‘(1) For grants under section 502(c)(5)(C)(i),
$10,000,000 for fiscal year 1995, and $10,000,000
for fiscal year 1996.
‘‘(2) 
For 
grants 
under 
section 
504,
$31,000,000 for fiscal year 1995 and $31,930,000
for fiscal year 1996.
‘‘(3) 
For 
purposes 
of 
section 
509(c),
$1,000,000 for fiscal year 1995 and $1,030,000 for
fiscal year 1996.
‘‘(4) For project preparation grants under sec-
tion 509(f)(6), $5,688,278 for fiscal year 1995 and
$5,858,926 for fiscal year 1996.
‘‘(5) In fiscal years 1995 and 1996, such sums
as may be necessary to meet payments on notes or
other obligations issued by the Secretary under sec-
tion 511 equal to—
‘‘(A) the aggregate of the contributions
made by the Secretary in the form of credits on
principal due on loans made pursuant to section
503; and
‘‘(B) the interest due on a similar sum
represented by notes or other obligations issued
by the Secretary.
200
‘‘(6) For grants for service coordinators under
section 515(y), $1,073,260 for fiscal year 1995 and
$1,105,458 for fiscal year 1996.
‘‘(7) For financial assistance under section
516—
‘‘(A) for low-rent housing and related fa-
cilities for domestic farm labor under sub-
sections (a) through (j) of such section,
$23,289,742 
for 
fiscal 
year 
1995 
and
$23,988,434 for fiscal year 1996; and
‘‘(B) for housing for rural homeless and
migrant farmworkers under subsection (k) of
such section, $11,269,230 for fiscal year 1995
and $11,607,307 for fiscal year 1996.
‘‘(8) 
For 
grants 
under 
section 
523(f),
$14,918,314 for fiscal year 1995 and $15,365,863
for fiscal year 1996.
‘‘(9) 
For 
grants 
under 
section 
533,
$33,056,408 for fiscal year 1993 and $34,048,100
for fiscal year 1994.
‘‘(10) 
For 
grants 
under 
section 
538,
$10,000,000 for fiscal year 1995, which shall remain
available until the end of fiscal year 1997.
201
‘‘(11) For assistance under section 539,
$20,000,000 for fiscal year 1995 and $20,600,000
for fiscal year 1996.’’.
(c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—
Section 513(c) of the Housing Act of 1949 (42 U.S.C.
1483(c)(1)) is amended by striking ‘‘(c)’’ and all that fol-
lows through the end of paragraph (1) and inserting the
following:
‘‘(c) RENTAL
AND OPERATING ASSISTANCE.—(1)
The Secretary, to the extent approved in appropriations
Acts for fiscal years 1995 and 1996, may enter into rental
assistance payment contracts under section 521(a)(2)(A)
and contracts for operating assistance under section
521(a)(5), aggregating $454,079,620 for fiscal year 1995
and $467,702,009 for fiscal year 1996.’’.
(d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT
CONTRACTS.—Section 513(d) of the Housing Act of 1949
(42 U.S.C. 1483(d)) is amended to read as follows:
‘‘(d) SUPPLEMENTAL RENTAL ASSISTANCE CON-
TRACTS.—The Secretary, to the extent approved in appro-
priations Acts for fiscal years 1995 and 1996, may enter
into 5-year supplemental rental assistance contracts under
section 502(c)(5)(D) aggregating $13,070,160 for fiscal
year 1995 and $13,462,265 for fiscal year 1996.’’.
202
(e) RURAL HOUSING VOUCHER AUTHORITY.—Sec-
tion 513(e) of the Housing Act of 1949 (42 U.S.C.
1483(e)) is amended to read as follows:
‘‘(e) RURAL HOUSING VOUCHERS.—There are au-
thorized to be appropriated for rural housing vouchers
under section 542, $144,200,000 for fiscal year 1995 and
$148,526,000 for fiscal year 1996.’’.
(f) RENTAL HOUSING LOAN AUTHORITY.—Section
515(b) of the Housing Act of 1949 (42 U.S.C. 1485(b))
is amended—
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
SEC. 502. SECTION 502 HOMEOWNERSHIP LOANS.
(a) REMOTE RURAL AREAS.—Section 502(f) of the
Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—
(1) by striking paragraph (1):
(2) by redesignating paragraph (2) as para-
graph (1); and
(3) by adding at the end the following new
paragraph:
‘‘(2) SECURITY.—In making a loan under this
section for housing located in a rural area that is a
remote rural area (which shall include tribal allotted
or Indian trust land) where the borrower resides or
203
is employed, the Secretary shall consider the actual
cost of the property and structure for which the loan
is made as adequate security for the loan required
under subsection (b).’’.
(b) PERMANENT
DEFERRED
MORTGAGE
PRO-
GRAM.—Section 502(g) of the Housing Act of 1949 (42
U.S.C. 1472(g)) is amended—
(1) in the subsection heading, by striking
‘‘DEMONSTRATION’’ and inserting ‘‘PROGRAM’’; and
(2) by striking paragraph (3).
(c) REAMORTIZATION AND REFINANCING.—Section
505 of the Housing Act of 1949 (42 U.S.C. 1475) is
amended—
(1) in the section heading, by inserting ‘‘,
REAMORTIZATION, AND’’ after ‘‘MORATORIUM’’;
(2) in subsection (a), by inserting before the
last sentence the following: ‘‘The Secretary may not
foreclose such a mortgage securing such a loan upon
which a moratorium has been granted solely because
the borrower does not have the ability to repay the
loan. Upon the expiration of a moratorium, the Sec-
retary shall enter into an agreement with the bor-
rower providing to the borrower such assistance as
the Secretary is authorized to provide under this sec-
tion and may foreclose with respect to the loan only
204
if the borrower fails to make 3 monthly payments
required under such agreement.’’;
(3) by redesignating subsection (b) as sub-
section (c); and
(4) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) REAMORTIZATION AND REFINANCING.—
‘‘(1) AUTHORITY.—With respect to a loan made
under section 502, after a moratorium under sub-
section (a) of this section for the loan or at any
other time the Secretary considers appropriate and
necessary to enable the borrower under the loan to
retain possession of the home securing the loan, the
Secretary may—
‘‘(A) reamortize the outstanding indebted-
ness, including principal and interest, under the
loan for a period not to exceed 38 years from
the date of the making of the loan, subject to
the provisions of paragraph (2); or
‘‘(B) make a new loan under section 502
to the borrower, the proceeds of which shall be
used to liquidate such indebtedness.
‘‘(2) GRADUATED REPAYMENT AGREEMENT.—
In reamortizing a loan pursuant to paragraph
(1)(A), the Secretary may establish a schedule of
205
payments under the loan that provides for payments
in an amount less than the amount of the payments
originally provided for under the loan agreement for
a period not exceeding 3 years.’’.
SEC. 503. PREPAYMENT OF RURAL RENTAL HOUSING
LOANS.
(a) TECHNICAL ASSISTANCE GRANTS
FOR NON-
PROFIT AND PUBLIC AGENCY PURCHASERS OF PREPAY-
MENT
PROPERTIES.—Section 502(c)(5)(C)(i) of the
Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is
amended to read as follows:
‘‘(i) to the extent provided in appro-
priation Acts, make a grant in an amount
not exceeding $50,000 to the nonprofit or-
ganization or public agency whose offer to
purchase is accepted under this paragraph
to cover reasonable costs, as determined by
the Secretary and not including the pur-
chase price, incurred by the organization
or agency in purchasing and assuming re-
sponsibilities for the housing and related
facilities involved, which may include costs
for pursuing acquisition, appraisals, fi-
nancing fees, accounting, administration,
consultants, legal assistance, architectural
206
assistance, engineering assistance, applica-
tion fees, overhead, and other expenses;’’.
(b) EQUITY TAKEOUT LOANS.—
(1) AUTHORITY FOR SECTION 514 HOUSING.—
Section 502(c)(4)(B)(iv) of the Housing Act of 1949
(42 U.S.C. 1472(c)(4)(B)(iv)) is amended by insert-
ing before the semicolon at the end the following:
‘‘or under paragraphs (1) and (2) of section 514(i)’’.
(2) LOAN TERMS.—Section 514 of the Housing
Act of 1949 (42 U.S.C. 1484) is amended by adding
at the end the following new subsection:
‘‘(i) EQUITY TAKEOUT LOANS FOR PRESERVATION
OF LOW-INCOME HOUSING.—With respect to a loan in-
sured under subsection (a), the Secretary may—
‘‘(1) make or insure an equity loan in the form
of a supplemental loan for the purpose of equity
takeout to the owner of housing financed with a loan
insured under this section pursuant to a contract en-
tered into before December 15, 1989, for the pur-
pose of extending the affordability of the housing for
low-income families or persons and very low-income
families or persons for not less than 20 years, except
that such loan may not exceed 90 percent of the
value of the equity in the project as determined by
the Secretary;
207
‘‘(2) transfer and reamortize an existing loan in
connection with assistance provided under paragraph
(1); and
‘‘(3) make or insure a loan to enable a non-
profit organization or public agency to make a pur-
chase described in section 502(c)(5).’’.
(3) TECHNICAL
CORRECTION
RELATING
TO
SECTION
515
HOUSING.—Section 515(c)(1) of the
Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is
amended by striking ‘‘December 21, 1979’’ and in-
serting ‘‘December 15, 1989’’.
(c) 
PHASE-IN
OF
RENT
INCREASES.—Section
502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.
1472(c)(4)(B)(vi)) is amended by inserting before the pe-
riod at the end the following: ‘‘, except that any such in-
crease in rents for current tenants (except for increases
made necessary by increases in operating costs) shall (I)
be phased in equally over a period of not less than 3 years,
if such increase is 30 percent or more, and (II) be limited
to not more than 10 percent per year if such increase is
more than 10 percent but less than 30 percent’’.
(d) TREATMENT
OF
ACCELERATION
UPON
DE-
FAULT.—Section 502 of the Housing Act of 1949 (42
U.S.C. 1472) is amended—
208
(1) in subsection (b)(2), by inserting ‘‘or any
payment in the case of acceleration of the amount
due under such a loan pursuant to any default,’’
after ‘‘515’’; and
(2) in subsection (c)—
(A) in paragraph (1)(A), by inserting be-
fore the 1st comma the following: ‘‘, accept any
payment tendered in the case of acceleration of
the amount due pursuant to any default on’’;
(B) in paragraph (1)(B), by inserting be-
fore the 1st comma the following: ‘‘, accept any
payment tendered in the case of acceleration of
the amount due pursuant to any default on’’;
(C) in paragraph (2)—
(i) by inserting after ‘‘prepaid’’ the
following: ‘‘, paid in full pursuant to accel-
eration of the amount due resulting from
default,’’; and
(ii) by inserting ‘‘, payment,’’ after
‘‘prepayment’’;
(D) in paragraph (4)(A), by inserting after
‘‘prepay,’’ the following: ‘‘accepting any pay-
ment tendered in the case of acceleration of the
amount due pursuant to any default on,’’; and
(E) in paragraph (5)—
209
(i) in subparagraph (A)(ii), by insert-
ing after ‘‘prepay,’’ the following: ‘‘accept
the payment tendered in the case of accel-
eration of the amount due pursuant to de-
fault on,’’;
(ii) in the 1st sentence of subpara-
graph (F), by inserting after ‘‘prepay,’’ the
following: ‘‘accept payment tendered in the
case of acceleration of the amount due pur-
suant to default on,’’;
(iii) in the 2d sentence of subpara-
graph (F), by inserting after ‘‘prepay,’’ the
following: ‘‘payment tendered in the case
of acceleration of the amount due pursuant
to default,’’;
(iv) in the last sentence of subpara-
graph (F), by striking ‘‘offers to prepay,’’
and inserting the following: ‘‘such offers to
prepay, payments in the case of accelera-
tion of the amount due pursuant to de-
fault,’’; and
(v) in the matter in subparagraph (G)
that precedes clause (i), by inserting after
‘‘prepay,’’ the following: ‘‘any payment ten-
210
dered in the case of acceleration of the
amount due pursuant to default on,’’.
(e) TEST FOR ALLOWABLE PREPAYMENT.—Section
502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C.
1472(c)(5)(G)(ii)) is amended to read as follows:
‘‘(ii) the Secretary makes a written
finding that—
‘‘(I) prepayment, payment in the
case of acceleration, or refinancing
will not materially increase economic
hardship for current tenants;
‘‘(II) involuntarily displace cur-
rent tenants (except for good cause),
where 
comparable 
and 
affordable
housing is not readily available, deter-
mined without regard to the availabil-
ity of Federal housing assistance that
would address any such hardship or
involuntary displacement; and
‘‘(III) the supply of vacant, com-
parable housing is sufficient to ensure
that such prepayment will not materi-
ally affect (a) the availability of de-
cent, safe, and sanitary housing af-
fordable to low-income and very low-
211
income families or persons in the area
that the housing could reasonably be
expected to serve, (b) the ability of
low-income and very low-income fami-
lies or persons to find affordable, de-
cent, safe, and sanitary housing near
employment opportunities, or (c) the
housing opportunities of minorities in
the community within which the hous-
ing is located.’’.
SEC. 504. DESIGNATION OF UNDERSERVED AREAS AND
RESERVATION OF ASSISTANCE.
(a) REAUTHORIZATION.—Section 509(f)(4) of the
Housing Act of 1949 (42 U.S.C. 1479(f)(4)) is amended
by striking ‘‘fiscal years 1993 and 1994’’ and inserting
‘‘each of fiscal years 1995 and 1996’’.
(b) 2-YEAR AND 3-YEAR DESIGNATIONS.—Section
509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f))
is amended—
(1) in paragraph (1)—
(A) in the 1st sentence, by striking ‘‘in
each fiscal year’’; and
(B) in the 2d sentence, by striking ‘‘year
in’’ and inserting ‘‘first year for’’;
(2) in paragraph (2)—
212
(A) in the first sentence, by striking
‘‘paragraph (4)’’ and inserting ‘‘paragraph
(5)’’; and
(B) by striking the last sentence;
(3) in paragraph (3)(B), by striking ‘‘para-
graph (2)’’ and inserting ‘‘paragraph (3)’’;
(4) in paragraph (4)(A), by striking ‘‘paragraph
(7)’’ and inserting ‘‘paragraph (8)’’;
(5) by redesignating paragraphs (2) through
(8) as paragraphs (3) through (9), respectively; and
(6) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) TIMING
AND
DURATION
OF
DESIGNA-
TIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Secretary shall redesig-
nate the targeted underserved areas under this
subsection once every 2 fiscal years and such
designations shall remain in effect for a period
of 2 fiscal years. The first such 2-year designa-
tion shall be made for fiscal years 1995 and
1996.
‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—
The Secretary shall ensure that, at all times,
not less than 5 counties or communities that
213
contain tribal allotted or Indian trust land are
included among the 100 counties and commu-
nities designated as targeted underserved areas.
The Secretary shall redesignate the counties or
communities designated as a targeted under-
served area in compliance with this subpara-
graph once every 3 fiscal years and such des-
ignations shall remain in effect for 3 fiscal
years. The first such 3-year designation shall be
made for fiscal years 1995 through 1997. Upon
designation, the Secretary shall specify any tar-
geted underserved area designated in compli-
ance with this subparagraph.’’.
SEC. 505. ADMINISTRATIVE APPEALS.
Section 510(g) of the Housing Act of 1949 (42
U.S.C. 1480(g)) is amended by inserting after ‘‘adverse
decision’’ the following: ‘‘(including an eviction), on the
record after opportunity for an agency hearing,’’.
SEC. 506. SECTION 515 RURAL RENTAL HOUSING.
(a) SET-ASIDE
FOR NONPROFIT ENTITIES.—The
first sentence of section 515(w)(1) of the Housing Act of
1949 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fis-
cal years 1994 and 1995’’ and inserting ‘‘fiscal years 1995
and 1996.’’.
214
(b) AUTHORITY
FOR SEQUENTIAL TRANSFERS.—
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485)
is amended by inserting after subsection (g) the following
new subsection:
‘‘(h) AUTHORITY FOR SEQUENTIAL TRANSFERS.—
Notwithstanding any other provision of this title, in mak-
ing or insuring a loan under subsection (a) or (b), the
Secretary may approve the sequential transfer of the loan
involving more than one new transferee entity, but only
if the Secretary determines that such transfer would be
in the best interests of the tenants of the housing for
which the loan was made and of the Federal Govern-
ment.’’.
(c) AUTHORITY FOR STREAMLINED REFINANCING.—
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485)
is amended by adding at the end the following new sub-
section:
‘‘(z) REFINANCING.—
‘‘(1) PURPOSE AND AUTHORITY.—In order to
reduce the amount of debt service payments and op-
erating costs of borrowers under loans made or in-
sured under this section, reduce rents paid by resi-
dents of housing financed with such loans, and re-
duce the amount of rental assistance necessary for
such housing, the Secretary may refinance the out-
215
standing principal obligation of a loan made under
this subsection in accordance with the provisions ap-
plicable (at the time of such refinancing) to loans
made under this section that the Secretary deter-
mines are appropriate for purposes of this sub-
section and the terms and conditions of the original
loan.
‘‘(2) USE
OF
HOUSING.—Any terms of the
original loan relating to use of the housing and re-
lated facilities for the purposes specified in this sec-
tion shall continue to apply to the housing in the
same manner as if the loan were not refinanced
under this subsection.
‘‘(3) TREATMENT
OF
REFINANCING
UNDER
PREPAYMENT RESTRICTIONS.—Any loan refinanced
under this subsection shall be considered a loan
originally made under this section, for purposes of
the limitations under subsection (c) on prepayment
and refinancing under subsection (b)(3). For pur-
poses of determining the financial status of the loan
or the housing securing the loan, the Secretary may
consider the terms of the refinancing.
‘‘(4) TERMS.—The Secretary shall, by regula-
tion, establish any requirements and conditions the
Secretary considers appropriate to provide for refi-
216
nancing under this subsection, including any limita-
tions on term of the refinancing loan.
‘‘(5) EXPEDITED PROCEDURE.—The Secretary
shall establish an expedited procedure for providing
refinancing under this subsection, which—
‘‘(A) shall not require application under
the same procedures applicable to loans made
under subsection (a); and
‘‘(B) shall take into consideration any in-
formation obtained by the Secretary in making
and servicing the loan under subsection (a) for
which refinancing under this subsection is re-
quested.’’.
SEC. 507. RENTAL ASSISTANCE PAYMENTS.
(a) OPTIONAL CONVERSION TO OPERATING SUBSIDY
FOR MIGRANT FARMWORKER PROJECTS.—
‘‘(1) IN
GENERAL.—Section 521(a) of the
Housing Act of 1949 (42 U.S.C. 1490a(a)) is
amended by adding at the end the following new
paragraph:
‘‘(5) OPERATING ASSISTANCE FOR MIGRANT FARM-
WORKER PROJECTS.—
‘‘(1) AUTHORITY.—In the case of housing (and
related facilities) for migrant farmworkers provided
or assisted with a loan under section 514 or a grant
217
under section 516, the Secretary may, at the request
of the owner of the project, use amounts provided
for rental assistance payments under paragraph (2)
to provide assistance for the costs of operating the
project. Any project assisted under this paragraph
may not receive rental assistance under paragraph
(2).
‘‘(2) AMOUNT.—In any fiscal year, the assist-
ance provided under this paragraph for any project
shall not exceed an amount equal to 90 percent of
the operating costs for the project for the year, as
determined by the Secretary. The amount of assist-
ance to be provided for a project under this para-
graph shall be an amount that makes units in the
project available to migrant farmworkers in the area
of the project at rates generally not exceeding 30
percent of the monthly adjusted incomes of such
farmworkers, based on the prevailing incomes of
such farmworkers in the area.
‘‘(3) 
SUBMISSION
OF
INFORMATION.—The
owner of a project assisted under this paragraph
shall be required to provide to the Secretary, at least
annually, a budget of operating expenses and esti-
mated rental income, which the Secretary shall use
218
to determine the amount of assistance for the
project.
‘‘(4) DEFINITIONS.—For purposes of this para-
graph, the following definitions shall apply:
‘‘(A) The term ‘migrant farmworker’ shall
have the same meaning given the term in sec-
tion 516(k)(7).
‘‘(B) The term ‘operating cost’ means ex-
penses incurred in operating a project, includ-
ing expenses for—
‘‘(i) administration, maintenance, re-
pair, and security of the project;
‘‘(ii) utilities, fuel, furnishings, and
equipment for the project; and
‘‘(iii) maintaining adequate reserve
funds for the project.’’.
‘‘(2) CONFORMING AMENDMENTS.—Title V of
the Housing Act of 1949 (42 U.S.C. 1471 et seq.)
is amended—
(A) in section 502—
(i) in subsection (c)(1)(A)(i), by strik-
ing ‘‘or (a)(2)’’ and inserting ‘‘, (a)(2), or
(5)’’;
(ii) in subsection (c)(4)(B)(ii), by in-
serting before the period at the end the fol-
219
lowing: ‘‘, or additional assistance or an in-
crease in assistance provided under section
521(a)(5)’’;
(iii) in subsection (c)(4)(B)(iii), by in-
serting before the period at the end the fol-
lowing: ‘‘, or current tenants of projects
not assisted under section 521(a)(5)’’;
(iv) in subsection (c)(5)(C)(iii)—
(I) by striking the 2d comma;
and
(II) by inserting ‘‘, or any assist-
ance payments received under section
521(a)(5),’’ before ‘‘with respect’’;
(v) in subsection (c)(5)(D), by insert-
ing before the period at the end the follow-
ing: ‘‘or, in the case of housing assisted
under section 521(a)(5), does not exceed
the rents established for the project under
such section’’;
(B) in the second sentence of section
509(f)(5) (as redesignated by the preceding
provisions of this title), by striking ‘‘an amount
of section 521 rental assistance’’ and inserting
‘‘, from amounts available for assistance under
220
paragraphs (2) and (5) of section 521(a), an
amount’’;
(C) in section 513(c)(2)—
(i) in the matter preceding subpara-
graph (A), by inserting ‘‘or contracts for
operating 
assistance 
under 
section
521(a)(5)’’ after ‘‘521(a)(2)(A)’’;
(ii) in subparagraph (A), by inserting
‘‘or operating assistance contracts’’ after
‘‘contracts’’;
(iii) in subparagraph (B), by striking
‘‘rental’’ each place it appears; and
(iv) in subparagraph (C), by inserting
‘‘or operating assistance contracts’’ after
‘‘contracts’’;
(D) in section 521(a)(2)(B)—
(i) by inserting ‘‘or paragraph (5)’’
after ‘‘this paragraph’’; and
(ii) by striking ‘‘which shall’’ and all
that follows through the period at the end
and inserting the following: ‘‘. The budget
(and the income, in the case of a project
assisted under this paragraph) shall be
used to determine the amount of the as-
sistance for each project.’’;
221
(E) in section 521(c), by striking ‘‘sub-
section (a)(2)’’ and inserting ‘‘subsections
(a)(2) and (a)(5)’’;
(F) in section 521(e), by inserting after
‘‘recipient’’ the following: ‘‘or any tenant in a
project assisted under subsection (a)(5)’’; and
(G) in section 530, by striking ‘‘rental as-
sistance payments with respect to such project
under section 521(a)(2)(A)’’ an inserting ‘‘as-
sistance payments with respect to such project
under section 521(a)(2)(A) or 521(a)(5)’’.
(b) SET-ASIDE FOR NEW CONSTRUCTION.—Section
521 of the Housing Act of 1949 (42 U.S.C. 1490a) is
amended by adding at the end the following new sub-
section:
‘‘(f) SET-ASIDE OF RENTAL ASSISTANCE AMOUNTS
FOR NEW CONSTRUCTION.—
‘‘(1) REQUIREMENT.—In each fiscal year, of
any amounts appropriated for rental assistance pay-
ments under subsection (a)(2)(A), the Secretary
shall reserve for use only for rental housing projects
to be newly constructed or rehabilitated with a loan
under section 515 and a percentage of such amounts
appropriated that is not less than the average deter-
mined under paragraph (2).
222
‘‘(2) DETERMINATION OF AMOUNT.—The aver-
age determined under this paragraph shall be the
annual average, for the most recent 3 completed fis-
cal years, of the percentage of such amounts appro-
priated for rental assistance payments assistance
that was made available for use for newly con-
structed or rehabilitated rental housing projects pro-
vided with a loan under section 515.’’.
SEC. 508. RURAL HOUSING ASSISTANCE TARGETING RE-
PORT.
Section 532(a) of the Housing Act of 1949 (42
U.S.C. 1490l) is amended by adding at the end the follow-
ing new flush material:
‘‘The Secretary shall submit a report to the Congress for
each fiscal year describing the geographical distribution
of housing for which eligible loan applications for assist-
ance under this title are submitted in such year and for
which amounts are obligated in such year. The report shall
describe the areas in which the housing to be assisted
under the applications is located, the number of eligible
applications received for housing in such areas, the num-
ber of eligible applications for housing in such areas that
were approved and funded and the amounts of such fund-
ing, the extent of the rural character of such areas, and
any actions taken by the Secretary to comply with the re-
223
quirement under paragraph (3). The report for a fiscal
year shall be submitted not later than 180 days after the
conclusion of such fiscal year.’’.
SEC. 509. PRIORITY FOR RURAL HOUSING VOUCHER AS-
SISTANCE.
Section 542 of the Housing Act of 1949 (42 U.S.C.
1490r) is amended by adding at the end the following new
subsection:
‘‘(c) PRIORITY.—
‘‘(1) REQUIREMENT.—In providing assistance
under this section, the Secretary shall give pref-
erence to providing assistance for rental housing
that—
‘‘(A) is financed or assisted with a loan,
guarantee, insurance, or other assistance pro-
vided under this title; and
‘‘(B)(i) has a significant number of units,
as determined by the Secretary, that have been
vacant for extended periods; or
‘‘(ii) is occupied by a significant number of
families, as determined by the Secretary, who
pay as rent for a unit in the housing an amount
exceeding 30 percent of the family’s monthly
adjusted income.
224
‘‘(2) PROJECT-BASED ASSISTANCE.—To provide
assistance according to the preference under para-
graph (1), the Secretary may enter into contracts
with owners of housing described in paragraph (1)
to provide voucher assistance payments that are at-
tached to such housing on behalf of very low-income
families who reside in such housing.’’.
SEC. 510. NATIVE AMERICAN RURAL HOUSING CAPACITY
DEMONSTRATION PROGRAM.
Title V of the Housing Act of 1949 is amended by
inserting after section 537 (42 U.S.C. 1490p–1) the fol-
lowing new section:
‘‘SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION
PROGRAM FOR NATIVE AMERICANS AND
ALASKAN NATIVES.
‘‘(a) AUTHORITY.—The Secretary shall carry out a
program under this section to demonstrate the effective-
ness of assisting Native Americans and Alaskan Natives
in underserved areas to apply for, obtain, and use housing
assistance under this title.
‘‘(b) GRANTS.—Under the demonstration under this
section, the Secretary shall make grants to technical as-
sistance providers selected under subsection (f) to carry
out activities under subsection (c) with respect to tribes
selected under subsection (e) (and members of the tribes)
225
in the selected areas. Of the amounts provided to a tech-
nical assistance provider under a grant under this section,
40 percent shall be disbursed to the technical assistance
provider in fiscal year 1995, 30 percent shall be so dis-
bursed in fiscal year 1996, and 30 percent shall be so dis-
bursed in fiscal year 1997.
‘‘(c) USE OF ASSISTANCE.—
‘‘(1) ELIGIBLE ACTIVITIES.—Any amounts pro-
vided to a technical assistance provider under a
grant under this section shall be used by the tech-
nical assistance provider only—
‘‘(A) to train individuals for employment
as local project coordinators under paragraph
(2), which shall include training regarding the
availability, application for, and use of housing
assistance under this title with respect to tribes
and members of tribes;
‘‘(B) to provide ongoing technical assist-
ance and training to local project coordinators;
‘‘(C) to provide assistance to the tribes se-
lected under subsection (e) in the selected
areas, or to Native American or Alaskan Native
housing organizations serving such tribes, to
employ local project coordinators trained pursu-
ant to subparagraph (A); and
226
‘‘(D) to establish a revolving fund to pro-
vide loans to tribes and members of tribes for
customary and reasonable costs incurred in pre-
paring and submitting applications for housing
assistance under this title to be used in the se-
lected areas (including costs of credit reports),
except that not more than $1,500 may be pro-
vided for the purpose under this subparagraph
to any single tribe or Native American or Alas-
kan Native housing organization.
‘‘(2) LOCAL PROJECT COORDINATOR.—For pur-
poses of this section, a local project coordinator shall
be an individual who—
‘‘(A) is employed by a tribe selected under
subsection (e) in, or Native American or Alas-
kan Native housing organization serving, the
selected area;
‘‘(B) provides advice and assistance to the
tribe or the tribes served by the organization
(and members of such tribes), regarding the
availability, application for, and use of housing
assistance under this title;
‘‘(C) otherwise facilitates the use of such
assistance by the tribes and their members; and
227
‘‘(D) assists the tribes and their members
in obtaining loans from the revolving fund es-
tablished under paragraph (1)(D).
‘‘(d) TRIBAL CONTRIBUTIONS TO DEMONSTRATION
PROGRAM.—Each tribe selected under subsection (e) for
participation in the demonstration program under this
section shall enter into an agreement with the technical
assistance provider to provide in-kind or financial assist-
ance, in addition to amounts provided under this section,
for activities under the demonstration program, in an
amount determined by the tribe and the technical assist-
ance provider. The assistance provided pursuant to such
agreement may include assistance in the form of office
space, equipment, transportation, salary enhancement,
and fringe benefits, and other forms of assistance.
‘‘(e) SELECTION OF TRIBES AND AREAS.—
‘‘(1) ELIGIBILITY.—The Secretary shall provide
for the technical assistance providers receiving
grants under this section to select for participation
in the demonstration under this section not more
than a total of 15 tribes—
‘‘(A) that are located in counties or com-
munities—
228
‘‘(i) that are eligible for designation
as targeted underserved areas under sec-
tion 509(f); or
‘‘(ii) that include tribal allotted or In-
dian trust land; and
‘‘(B) that—
‘‘(i) have agreed to participate in the
demonstration under this section by des-
ignating individuals for training as local
project coordinators under subsection (c);
or
‘‘(ii) are located in a county or com-
munity within which is located a Native
American or Alaskan Native housing orga-
nization that has so agreed to participate
in the demonstration under this section.
‘‘(2) CRITERIA
FOR
SELECTION.—Each tech-
nical assistance provider selecting tribes pursuant to
paragraph (1) shall make such selections according
to criteria that include—
‘‘(A) the extent of substandard housing on
the reservation of the tribe;
‘‘(B) the extent of the waiting list for
housing assistance under Federal housing pro-
229
grams in the community or community under
paragraph (1)(A);
‘‘(C) the extent of interest in and willing-
ness to participate in the demonstration pro-
gram under this section for a 3-year period;
and
‘‘(D) the extent of willingness to provide
in-kind or financial assistance in addition to
amounts provided under this section for activi-
ties under the demonstration program.
‘‘(3) TREATMENT AS TARGETED UNDERSERVED
AREAS.—Notwithstanding the designation of coun-
ties and communities as targeted underserved areas
under section 509(f)(1) and the provisions of section
520, any selected area under this section shall be
considered a targeted underserved area for fiscal
years 1995, 1996, and 1997, for purposes of eligi-
bility for assistance with amounts reserved under
section 509(f)(4)(A).
‘‘(f) SELECTION OF TECHNICAL ASSISTANCE PRO-
VIDERS.—
‘‘(1) ELIGIBILITY.—The Secretary may make a
grant under this section only to a nonprofit organi-
zation having experience in providing training and
technical assistance regarding the use of housing as-
230
sistance under this title and in administering revolv-
ing loan funds for costs relating to housing assist-
ance programs under this title.
‘‘(2) APPLICATION.—The Secretary shall pro-
vide for nonprofit organizations meeting the require-
ments under paragraph (1) to submit applications
for a grant under this section during a period of not
more than 45 days that begins upon publication of
the notice of funding availability under subsection
(i).
‘‘(3) SELECTION.—Not more than 30 days
after expiration of such period, the Secretary shall
select, to receive grants under this section, 1 or
more nonprofit organizations submitting applications
that are—
‘‘(A) capable of carrying out the duties of
technical assistance providers under this sec-
tion; and
‘‘(B) knowledgeable and experienced re-
garding housing needs and issues of Native
Americans and Alaskan Natives and housing
assistance programs under this title; and
‘‘(C) agree to comply with the provisions of
this section.
‘‘(g) REPORTS.—
231
‘‘(1) LOCAL
PROJECT
COORDINATORS.—Each
local project coordinator trained or assisted by a
technical assistance provider with amounts from a
grant under this section shall submit a report to the
technical assistance provider for each of fiscal years
1995 through 1997, regarding the activities of the
coordinator. The report shall be submitted not later
than 30 days after the conclusion of the fiscal year
for which the report is made.
‘‘(2) TECHNICAL
ASSISTANCE
PROVIDERS.—
Each technical assistance provider receiving a grant
under this section shall submit a report to the Sec-
retary for each of fiscal years 1995 through 1997,
summarizing the information submitted under para-
graph (1) for the fiscal year and describing the ac-
tivities of the technical assistance provider under the
demonstration under this section during the fiscal
year. The report shall be submitted not later than
60 days after the conclusion of the fiscal year for
which the report is made.
‘‘(3) SECRETARY.—The Secretary shall submit
a report to the Congress for each of fiscal years
1995 through 1997 describing the demonstration
under this section and the findings of the Secretary
as a result of the demonstration. The report shall be
232
submitted not later than 90 days after the conclu-
sion of the fiscal year for which the report is made.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) ALASKAN
NATIVE
VILLAGE.—The term
‘Alaskan Native Village’ has the same meaning given
the term ‘Native village’ in section 3 of the Alaska
Native Claims Settlement Act.
‘‘(2) NATIVE AMERICAN OR ALASKAN NATIVE
HOUSING ORGANIZATION.—The term ‘Native Amer-
ican or Alaskan Native housing organization’ means
a nonprofit organization that primarily serves a tribe
or tribes, and includes Indian housing authorities
and other housing entities of a tribe.
‘‘(3) NONPROFIT
ORGANIZATION.—The term
‘nonprofit organization’ means any private, nonprofit
organization that—
‘‘(A) is organized or chartered under State,
tribal, or local laws;
‘‘(B) has no part of its net earning inuring
to the benefit of any member, founder, contrib-
utor, or individual;
‘‘(C) complies with standards of financial
accountability acceptable to the Secretary; and
‘‘(D) through its articles of incorporation
or through resolution of the governing body of
233
a tribe, has among its purposes significant ac-
tivities related to the provision of decent hous-
ing that is affordable to low- and moderate-in-
come families.
‘‘(4) SELECTED
AREA.—The term ‘selected
area’ means, with respect to any tribe selected under
subsection (e), the county or community meeting the
requirements of subsection (e)(1) in which the tribe
selected is located.
‘‘(5) TECHNICAL ASSISTANCE PROVIDER.—The
term ‘technical assistance provider’ means a non-
profit organization that is selected under subsection
(f) to receive a grant under this section.
‘‘(6) TRIBE.—The term ‘tribe’ means any In-
dian tribe, band, group, or nation, including Alaska
Indians, Aleuts, and Eskimos, and any Alaskan Na-
tive Village, of the United States, that is considered
an eligible recipient under the Indian Self-Deter-
mination and Education Assistance Act or was con-
sidered an eligible recipient under chapter 67 of title
31, prior to the repeal of such chapter.
‘‘(i) NOTICE OF FUNDING AVAILABILITY.—
‘‘(1) PUBLICATION.—The Secretary shall cause
to be published in the Federal Register notice of the
availability of any amounts made available for
234
grants under this section. Such notice shall be pub-
lished not later than the expiration of the 90-day pe-
riod beginning on the date that amounts are appro-
priated to carry out this section.
‘‘(2) CONTENTS.—The notice referred to in
paragraph (1) shall—
‘‘(A) describe the requirements for eligi-
bility to receive a grant, the purposes of the
grant, and the permissible uses of grant
amounts;
‘‘(B) contain an address to which requests
for additional information regarding the dem-
onstration under this section may be made; and
‘‘(C) state the deadline established by the
Secretary pursuant to section (f)(2) for the sub-
mission of applications for a grant.’’.
SEC. 511. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
Title V of the Housing Act of 1949 (42 U.S.C. 1471
et seq.) is amended by inserting after section 538 (as
added by the preceding provisions of this title) the follow-
ing new section:
‘‘SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
‘‘(a) IN GENERAL.—The Secretary is authorized to
provide assistance to develop the capacity and ability of
community development corporations, community housing
236
carry out the provisions of this section. The notice shall
take effect upon issuance.’’.
SEC. 512. RURAL HOUSING LOAN DELEGATED PROCESSING
DEMONSTRATION.
(a) AUTHORITY.—Not later than the expiration of
the 180-day period beginning on the date of enactment
of this Act, the Secretary of Agriculture shall implement
a system for making, processing, and servicing loans
under section 502 of the Housing Act of 1949 that dele-
gates such functions to nonprofit organizations approved
by the Secretary of Agriculture. Under the system, the
Secretary shall retain the authority to approve loan
amounts and interest credit agreements and to execute
binding loan commitments and credit agreements.
(b) USE IN TARGETED UNDERSERVED AREAS.—The
Secretary of Agriculture shall carry out the delegated
processing system under subsection (a) only with respect
to loans for housing located in, and amounts reserved for
use in, areas for which a designation under section 509(f)
is in effect.
(c) REPORT.—The Secretary of Agriculture shall sub-
mit an interim report to the Congress not later than 12
months after the date of the initial implementation of the
delegated processing system under this section describing
237
the activities taken under the system and evaluating the
effectiveness of the system.
(d) TERMINATION OF AUTHORITY.—The Secretary of
Agriculture may not carry out the delegated processing
system under this section after September 30, 1996.
TITLE VI—COMMUNITY
DEVELOPMENT
Subtitle A—Community
Development Block Grant Program
SEC. 601. AUTHORIZATION OF APPROPRIATIONS AND
GUARANTEE AUTHORITY.
(a) COMMUNITY DEVELOPMENT BLOCK GRANTS.—
The second sentence of section 103 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5303)
is amended to read as follows: ‘‘For purposes of assistance
under section 106, there are authorized to be appropriated
$4,532,000,000 for fiscal year 1995 and $4,667,960,000
for fiscal year 1996.’’.
(b) LIMITATION ON LOAN GUARANTEES.—The fifth
sentence of section 108(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308(a)) is amended
to read as follows: ‘‘Notwithstanding any other provision
of law and subject only to the absence of qualified appli-
cants or proposed activities and to the authority provided
in this section, to the extent approved or provided in ap-
238
propriation Acts, the Secretary shall enter into commit-
ments to guarantee notes and obligations under this sec-
tion 
with 
an 
aggregate 
principal 
amount 
of
$2,115,620,000 for fiscal year 1995 and $2,179,088,600
for fiscal year 1996.’’.
(c) SPECIAL PURPOSE GRANTS.—Section 107 of the
Housing and Community Development Act of 1974 (42
U.S.C. 5307(a)) is amended—
(1) by striking ‘‘SEC. 107’’ and all that follows
through the end of paragraph (1) and inserting the
following:
‘‘SEC. 107. (a) AUTHORIZATION
OF APPROPRIA-
TIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated for each of fiscal years 1995 and 1996,
$60,000,000, for grants under subsection (b). Of
such amounts—
‘‘(A) $7,000,000 shall be available in each
such year for grants under subsection (b)(1);
‘‘(B) $6,500,000 shall be available in each
such year for grants under subsection (b)(3);
‘‘(C) $6,000,000 shall be available in each
such year for grants in each such year under
subsection (b)(5);
239
‘‘(D) $6,000,000 shall be available in each
such year for grants under subsection (b)(7);
‘‘(E) $3,000,000 shall be available in each
such year for grants under subsection (c);
‘‘(F) such sums as may be necessary shall
be available in each such year for grants under
paragraphs (2), (4), and (6) of subsection (b);
and
‘‘(G) $2,000,000 shall be available in fiscal
year 1995 for a grant to the City of Bridgeport,
Connecticut, subject to binding commitments
made by the City of Bridgeport and the State
of Connecticut that the city and State, respec-
tively, will supplement such amount with
$2,000,000 of additional funds.’’.
(d) ELIGIBLE ACTIVITIES.—Section 105(a)(8) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(a)(8)) is amended by striking ‘‘fiscal year
1994’’ and inserting ‘‘each of fiscal years 1994 and
1995’’.
SEC. 602. ECONOMIC DEVELOPMENT GRANTS.
(a) GRANT PROGRAM.—Section 108 of the Housing
and Community Development Act of 1974 (42 U.S.C.
5308) is amended by adding at the end the following new
subsection:
240
‘‘(q) ECONOMIC DEVELOPMENT GRANTS USING RE-
COVERED UDAG AMOUNTS.—
‘‘(1) AUTHORITY.—The Secretary may, to the
extent provided in appropriation Acts, use any
amounts made available for assistance under section
119 and subsequently deobligated to make grants
under this subsection to eligible public entities, in
connection with notes or other obligations guaran-
teed under this section for such entities, for carrying
out economic development activities.
‘‘(2) USE FOR ECONOMIC DEVELOPMENT AC-
TIVITIES.—The proceeds of the guaranteed loan
under this section and the grant under this sub-
section in connection with such loan shall be used
only to finance activities and projects eligible under
subsection (a)(3) and specified in an application sub-
mitted and approved under paragraph (3) by the
Secretary.
‘‘(3) APPLICATION.—The Secretary may make
grants under this subsection to an eligible public en-
tity only pursuant to the receipt of an application by
the Secretary from the entity and approval of the
application by the Secretary. The Secretary shall
prescribe the form and manner of such applications
and shall require such applications to be submitted
241
with or as part of an application for loan guarantee
assistance under this section.
‘‘(4) 
FIRST-COME-FIRST-SERVED.—The 
Sec-
retary shall use amounts available for grants under
this section to make such grants for approved appli-
cations in the order in which such approved applica-
tions were submitted to the Secretary.
‘‘(5) REGULATIONS.—The Secretary shall issue
any regulations necessary to carry out this sub-
section.’’.
(b) USE OF UDAG AMOUNTS.—Section 119(o) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5318(o) is amended by striking ‘‘shall be’’ and all
that follows through ‘‘section 103’’ and inserting the fol-
lowing: ‘‘shall, as determined by the Secretary, be added
to amounts appropriated under section 103 or be used for
grants under section 108(q)’’.
(c) CDBG OBJECTIVES AND PLAN.—Title I of the
Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended—
(A) in the second sentence of section 101(c), by
inserting after ‘‘section 108,’’ the following: ‘‘(and
any grant received under section 108(q))’’; and