assistance for the family, may use such assistance to
rent such eligible dwelling unit.
‘‘(2) ADMINISTRATION.—The public housing
agency having authority with respect to the dwelling
unit to which a family moves under this subsection
shall have the responsibility of carrying out the pro-
visions of this section with respect to the family. If
no public housing agency has authority with respect
to the dwelling unit to which a family moves under
this subsection, the public housing agency approving
the assistance shall have such responsibility.
‘‘(3) LOCAL OPTION TO ENSURE MINIMUM AREA
RESIDENCY.—
‘‘(A) AUTHORITY.—At the discretion of a
public housing agency and to the extent pro-
vided in subparagraph (B), the agency may pro-
vide that a family may use tenant-based rental
assistance under this section to rent an eligible
dwelling unit that is not located within the area
of jurisdiction of the agency approving the as-
sistance only if, before such use, the family has
rented and occupied an eligible dwelling unit
within such jurisdiction for not less than 12
consecutive months using assistance provided
by such agency.
‘‘(B) LIMITATION.—If a public housing
agency elects to restrict the use of tenant-based
rental assistance pursuant to subparagraph (A)
and provides such assistance on behalf of more
than 300 families, the agency may not restrict
the use of such assistance with respect to as-
sistance provided on behalf of 10 percent of the
number of families receiving such assistance
that exceeds 300.
‘‘(4) PROVISION OF RENTAL ASSISTANCE FOR
PORTABILITY PURPOSES.—
‘‘(A) AMOUNT.—To the extent budget au-
thority for use under this paragraph is made
available in appropriation Acts, the Secretary
shall provide rental assistance under this sec-
tion in accordance with this paragraph.
‘‘(B) USE.—Amounts provided for use
under this paragraph shall be used only to pro-
vide a public housing agency with additional
amounts (as determined under subparagraph
(D)) to provide assistance for families on behalf
of whom assistance is provided under this sec-
tion by another public housing agency and who
move into an eligible dwelling unit located with-
in the area of jurisdiction of the agency to re-
ceive assistance under this paragraph.
‘‘(C) REQUIREMENT.—Amounts provided
for use under this paragraph may be made
available to a public housing agency only if the
agency has provided assistance pursuant to the
first sentence of paragraph (2) on behalf of
families who have moved into eligible dwelling
units located within the area of jurisdiction of
the agency in an amount not less than the less-
er of (i) 5 percent of the total amount received
by the agency for assistance under this section
for the fiscal year, or (ii) the amount necessary
to assist 25 percent of average annual number
of families previously assisted by the agency
who relinquish such assistance in a year (based
on the preceding 3 calendar years).
‘‘(p) PROHIBITION OF DISCRIMINATION.—
‘‘(1) BASED ON RESIDENCY IN PUBLIC HOUS-
ING.—In selecting families for the provision of as-
sistance under this section, a public housing agency
may not exclude or penalize a family solely because
the family resides in a public housing project.
‘‘(2) BASED ON RECEIPT OF ASSISTANCE.—An
owner who has entered into an assistance contract
under this section on behalf of any tenant in a mul-
tifamily housing project shall not refuse to lease any
available dwelling unit in any multifamily housing
project of such owner that rents for an amount not
greater than the fair market rental for a comparable
unit (as determined by the Secretary under sub-
section (e)) to a family who has been approved by
a public housing agency for rental assistance under
this section and is in possession of evidence of such
approval, a proximate cause of which is the status
of such prospective tenant as such an assisted fam-
ily, and to enter into an assistance contract respect-
ing such unit.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘multifamily housing project’
means a residential building containing more than 4
dwelling units.
‘‘(q) SPECIAL USES OF RENTAL ASSISTANCE.—
‘‘(1) ASSISTANCE
FOR
RESIDENTS
OF
REHA-
BILITATED PROJECTS.—In the case of low-income
families living in rental projects rehabilitated under
section 17 of this Act or section 533 of the Housing
Act of 1949 before rehabilitation—
‘‘(A) tenant-based rental assistance under
this section shall be provided for families who
are required to move out of their dwelling units
because of the physical rehabilitation activities
or because of overcrowding;
‘‘(B) at the discretion of each public hous-
ing agency, tenant-based rental assistance
under this section may be provided for families
who would have to pay more than 30 percent of
their adjusted income for rent after rehabilita-
tion whether they choose to remain in, or to
move from, the project; and
‘‘(C) the Secretary shall allocate tenant-
based rental assistance provided under this sec-
tion to ensure that sufficient resources are
available to address the physical or economic
displacement, or potential economic displace-
ment, of existing tenants pursuant to subpara-
graphs (A) and (B).
‘‘(2) LOAN MANAGEMENT ASSISTANCE.—
‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section through a
loan management program to assist financially
troubled 
multifamily 
residential 
housing
projects (i) subject to mortgages that are in-
sured under the National Housing Act or mort-
gages that have been assigned to the Secretary,
(ii) that were held by the Secretary and have
been sold, and (iii) that were assisted under
section 202 of the Housing Act of 1959.
‘‘(B) ELIGIBILITY.—The eligibility of a
multifamily residential project for loan manage-
ment assistance under this paragraph shall be
determined without regard to whether the
project is subsidized or unsubsidized.
‘‘(C) EXTENSION
OF
CONTRACT.—The
Secretary shall extend any expiring contract en-
tered into under this section for loan manage-
ment assistance or execute a new contract for
project-based loan management assistance, if
the owner agrees to continue providing housing
for low-income families during the term of the
contract.
‘‘(3) ASSISTANCE FOR FAMILY UNIFICATION.—
‘‘(A) IN
GENERAL.—The Secretary may
provide assistance under this section to be used
only in connection with tenant-based assistance
under this section on behalf of any family (i)
who is otherwise eligible for such assistance,
and (ii) who the public child welfare agency for
the jurisdiction has certified is a family for
whom the lack of adequate housing is a primary
factor in the imminent placement of the fami-
ly’s child or children in out-of-home care or the
delayed discharge of a child or children to the
family from out-of-home care.
‘‘(B) ALLOCATION.—Any amounts made
available under this paragraph shall be allo-
cated by the Secretary through a national com-
petition among applicants based on dem-
onstrated need for assistance under this para-
graph. To be considered for assistance, an ap-
plicant shall submit to the Secretary a written
proposal containing a report from the public
child welfare agency serving the jurisdiction of
the applicant that describes how a lack of ade-
quate housing in the jurisdiction is resulting in
the initial or prolonged separation of children
from their families, and how the applicant will
coordinate with the public child welfare agency
to identify eligible families and provide the fam-
ilies with assistance under this paragraph.
‘‘(D) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) APPLICANT.—The term ‘appli-
cant’ means a public housing agency.
‘‘(ii) PUBLIC CHILD WELFARE AGEN-
CY.—The term ‘public child welfare agen-
cy’ means the public agency responsible
under applicable State law for determining
that a child is at imminent risk of place-
ment in out-of-home care or that a child in
out-of-home care under the supervision of
the public agency may be returned to his
or her family.
‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—Not later
than 30 days after the beginning of each fiscal year, the
Secretary shall publish in the Federal Register a plan for
reducing, to the extent feasible, year-to-year fluctuations
in the levels of budget authority that will be required over
the succeeding 5-year period to renew expiring assistance
contracts entered into under this section after the enact-
ment of the Housing and Community Development Act
of 1974. To the extent necessary to carry out such plan
and to the extent approved in appropriations Acts, the
Secretary is authorized to enter into annual contributions
contracts with terms of less than 60 months.
‘‘(s) GENERAL PROVISIONS.—
‘‘(1) PROHIBITION
OF
HIGH-RISE
PROJECTS
FOR
FAMILIES
WITH
CHILDREN.—Notwithstanding
any other provision of this section, after the date of
enactment of the Housing and Community Develop-
ment Act of 1977, the Secretary shall prohibit high-
rise elevator projects for families with children un-
less the Secretary determines that there is no prac-
tical alternative.
‘‘(2) PLEDGING ASSISTANCE CONTRACTS AS SE-
CURITY.—An owner may pledge, or offer as security
for any loan or obligation, an assistance contract en-
tered into pursuant to this section, but only if such
security is in connection with a project constructed
or rehabilitated pursuant to authority under this
section and the terms of the financing or any refi-
nancing have been approved by the Secretary.
‘‘(3) ASSISTANCE
IN
FINDING
UNITS.—Each
public housing agency that provides rental housing
assistance under this section on behalf of low-income
families shall make available, to such families, coun-
seling and assistance regarding housing opportuni-
ties in the area of jurisdiction of the agency, includ-
ing assistance in obtaining new rental residences.
‘‘(t) HOMEOWNERSHIP OPTION.—
‘‘(1) USE OF ASSISTANCE FOR HOMEOWNER-
SHIP.—A family receiving tenant-based assistance
under this section may receive assistance for occu-
pancy of a dwelling owned by one or more members
of the family if the family—
‘‘(A) is a first-time homeowner;
‘‘(B)(i) participates in the family self-suffi-
ciency program under section 23 of the public
housing agency providing the assistance; or
‘‘(ii) demonstrates that the family has in-
come from employment or other sources (other
than public assistance), as determined in ac-
cordance with requirements of the Secretary,
that is not less than twice the payment stand-
ard established by the public housing agency
(or such other amount as may be established by
the Secretary);
‘‘(C) except as provided by the Secretary,
demonstrates at the time the family initially re-
ceives tenant-based assistance under this sub-
section that one or more adult members of the
family have achieved employment for the period
as the Secretary shall require;
‘‘(D) participates in a homeownership and
housing counseling program provided by the
agency; and
‘‘(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements estab-
lished by the Secretary.
‘‘(2) MONTHLY ASSISTANCE PAYMENT.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provisions of this section governing deter-
mination of the amount of assistance payments
under this section on behalf of a family, the
monthly assistance payment for any family as-
sisted under this subsection shall be the amount
by which the fair market rental for the area es-
tablished under subsection (e)(1) exceeds 30
percent of the family’s monthly adjusted in-
come; except that the monthly assistance pay-
ment shall not exceed the amount by which the
monthly homeownership expenses, as deter-
mined in accordance with requirements estab-
lished by the Secretary, exceeds 10 percent of
the family’s monthly income.
‘‘(B) EXCLUSION
OF
EQUITY
FROM
IN-
COME.—For 
purposes 
of 
determining 
the
monthly assistance payment for a family, the
Secretary shall not include in family income an
amount imputed from the equity of the family
in a dwelling occupied by the family with assist-
ance under this subsection.
‘‘(3) RECAPTURE
OF
CERTAIN
AMOUNTS.—
Upon sale of the dwelling by the family, the Sec-
retary shall recapture from any net proceeds the
amount of additional assistance (as determined in
accordance with requirements established by the
Secretary) paid to or on behalf of the eligible family
as a result of paragraph (2)(B).
‘‘(4) 
DOWNPAYMENT
REQUIREMENT.—Each
public housing agency providing assistance under
this subsection shall ensure that each family assisted
shall provide from its own resources not less than 80
percent of any downpayment in connection with a
loan made for the purchase of a dwelling. Such re-
sources may include amounts from any escrow ac-
count for the family established under section 23(d).
Not more than 20 percent of the downpayment may
be provided from other sources, such as from non-
profit entities and programs of States and units of
general local government.
‘‘(5) 
INELIGIBILITY
UNDER
OTHER
PRO-
GRAMS.—A family may not receive assistance under
this subsection during any period when assistance is
being provided for the family under other Federal
homeownership assistance programs, as determined
by the Secretary, which shall include assistance
under the HOME Investment Partnerships Act, the
Homeownership and Opportunity Through HOPE
Act, title II of the Housing and Community Devel-
opment Act of 1987, and section 502 of the Housing
Act of 1949.
‘‘(6) INAPPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—Assistance under this subsection shall not
be subject to the requirements of the following provi-
sions:
‘‘(A) Subsection (h)(3) of this section.
‘‘(B) Any other provisions of this section
governing maximum amounts payable to owners
and amounts payable by assisted families.
‘‘(C) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
‘‘(E) Any other provisions of this Act
that are inconsistent with the provisions of this
subsection.
‘‘(7) REVERSION TO RENTAL STATUS.—
‘‘(A) FHA-INSURED
MORTGAGES.—If a
family receiving assistance under this sub-
section for occupancy of a dwelling defaults
under a mortgage for the dwelling insured by
the Secretary under the National Housing Act,
the family may not continue to receive rental
assistance under this section unless the family
(i) transfers to the Secretary marketable title to
the dwelling, (ii) moves from the dwelling with-
in the period established or approved by the
Secretary, and (iii) agrees that any amounts
the family is required to pay to reimburse the
escrow account under section 23(d)(3) may be
deducted by the public housing agency from the
assistance payment otherwise payable on behalf
of the family.
‘‘(B) OTHER MORTGAGES.—If a family re-
ceiving assistance under this subsection defaults
under a mortgage not insured under the Na-
tional Housing Act, the family may not con-
tinue to receive rental assistance under this sec-
tion unless it complies with requirements estab-
lished by the Secretary.
‘‘(C) ALL MORTGAGES.—A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
‘‘(8) 
DEFINITION
OF
FIRST-TIME
HOME-
OWNER.—For purposes of this subsection, the term
‘first-time homeowner’ means—
‘‘(A) a family, no member of which has
had a present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives assistance
for homeownership under this subsection; and
‘‘(B) any other family, as the Secretary
may prescribe.
‘‘(u) DEFINITIONS.—For purposes of this section:
‘‘(1) ANNUAL
CONTRIBUTIONS
CONTRACT.—
The term ‘annual contributions contract’ means a
contract under subsection (b) between the Secretary
and a public housing agency to provide amounts for
rental assistance payments under this section to the
public housing agency.
‘‘(2) ASSISTANCE
CONTRACT.—The term ‘as-
sistance contract’ means a contract under subsection
(c) between a public housing agency (or the Sec-
retary) and an owner to make rental assistance pay-
ments under this section to the owner.
‘‘(3) DEBT SERVICE.—The term ‘debt service’
means the required payments for principal and in-
terest made with respect to a mortgage secured by
housing assisted under this Act.
‘‘(4) DRUG-RELATED CRIMINAL ACTIVITY.—The
term ‘drug-related criminal activity’ means the ille-
gal manufacture, sale, distribution, use, or posses-
sion with intent to manufacture, sell, distribute, or
use, of a controlled substance (as such term is de-
fined in section 102 of the Controlled Substances
Act).
‘‘(5) OWNER.—The term ‘owner’ means any
private person or entity, including a cooperative, an
agency of the Federal Government, or a public hous-
ing agency, having the legal right to lease or sub-
lease dwelling units, and such term shall include any
principals, general partners, primary shareholders,
and other similar participants in any entity owning
a multifamily housing project (as such term is de-
fined in subsection (p)(3)), as well as the entity it-
self.
‘‘(6) PARTICIPATING JURISDICTION.—The term
‘participating jurisdiction’ means a State or unit of
general local government designated by the Sec-
retary to be a participating jurisdiction under title
II of the Cranston-Gonzalez National Affordable
Housing Act.
the provisions of such section 8 as in effect imme-
diately before the enactment of this Act or otherwise
applicable to such assistance.
(2) CONTINUATION OF ASSISTANCE.—The Sec-
retary of Housing and Urban Development shall
take any action necessary to ensure that the provi-
sion of assistance under section 8 of the United
States Housing Act of 1937 to families receiving as-
sistance under such section on the date of the enact-
ment of this Act is not interrupted because of the
amendment made by subsection (a).
(c) CONFORMING AMENDMENTS.—
(1) UNITED STATES HOUSING ACT OF 1937.—
The United States Housing Act of 1937 is amend-
ed—
(A) 
in 
section 
3(a)(1) 
(42 
U.S.C.
1437a(a)(1)), by striking ‘‘(other than a family
assisted under section 8(o) or (y) or paying rent
under 
section 
8(c)(3)(B))’’ 
and 
inserting
‘‘(other than a family assisted under section
8(t))’’;
(B) in section 5 (42 U.S.C. 1737c)—
(i) in subsection (c)(7)(C), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’;
(ii) in subsection (j)(1)(B)(i), by strik-
ing ‘‘section 8(o)(6)’’ and inserting ‘‘sec-
tion 8’’; and
(iii) in subsection (j)(1)(D), by strik-
ing ‘‘subsection (b) or (o) of’’;
(C) in section 6(p)(1)(B) (42 U.S.C.
1437d(p)(1)(B)), by striking ‘‘holding certifi-
cates and vouchers’’ and inserting ‘‘eligible and
approved for assistance’’;
(D) 
in 
section 
18(b)(3) 
(42 
U.S.C.
1437p(b)(3))—
(i) in subparagraph (A)(iv), by strik-
ing ‘‘section 8(b)(1)’’ and inserting ‘‘sec-
tion 8’’;
(ii) in subparagraph (A)(v), by strik-
ing ‘‘(excluding vouchers under section
8(o))’’ each place it appears;
(iii) in subparagraph (B)—
(I) in the matter preceding clause
(i), by striking ‘‘(notwithstanding the
limitation under section 8(d)(2)(A) on
the amount of project-based assist-
ance provided by an agency)’’; and
(II) in clause (ii), by striking
‘‘(excluding vouchers under section
8(o))’’; and
(iv) in subparagraph (C), by striking
‘‘certificates and vouchers available’’ and
inserting ‘‘families receiving tenant-based
assistance’’;
(E) in section 21(b)(3)—
(i) by striking ‘‘a certificate under
section 8(b)(1) or a housing voucher under
section 8(o)’’ and inserting ‘‘tenant-based
assistance under section 8’’; and
(ii) by striking ‘‘such certificate’’ and
inserting ‘‘such assistance’’;
(F) in section 23—
(i) in subsection (a), by striking ‘‘as-
sistance under the certificate and voucher
programs’’ and inserting ‘‘tenant-based as-
sistance’’;
(ii) in subsection (b)—
(I) in paragraph (1), by striking
‘‘assistance under subsection (b) or
(o) of’’ and inserting ‘‘tenant-based
assistance under’’;
(II) in paragraph (3)(A), by
striking ‘‘Certificate and voucher as-
sistance under section 8(b) and (o)’’
and inserting ‘‘Tenant-based assist-
ance under section 8’’; and
(III) in paragraph (4), by strik-
ing ‘‘Assistance under the certificate
or voucher programs’’ and inserting
‘‘Tenant-based assistance’’;
(iii) in subsection (c)(1), by striking
‘‘assistance under the certificate and
voucher programs of’’ and inserting ‘‘ten-
ant-based assistance from’’;
(iv) in subsection (d)(3) (as added by
section 185(b) of the Housing and Com-
munity Development Act of 1992 (Public
Law 102–550; 106 Stat. 3747)), by strik-
ing ‘‘section 8(y)’’ and inserting ‘‘section
8(t)’’; and
(v) in subsection (h)(1)—
(I) by striking ‘‘section 8(q) for
the costs incurred in administering
the provision of certificate and vouch-
er’’ and inserting ‘‘section 8(n) for the
costs incurred in administering the
provision of tenant-based’’; and
(II) 
by 
striking 
‘‘section
8(q)(2)(A)(i)’’ and inserting ‘‘section
8(n)(2)(A)’’; and
(G) in section 304(g)(3) (42 U.S.C.
1437aaa–3(g)(3)), by striking ‘‘section 8(b)(2)
and section 8(o)(9)’’ and inserting ‘‘section 8’’.
(2) ELDERLY INDEPENDENCE.—Section 803 of
the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8012) is amended—
(A) in subsection (a), by striking ‘‘housing
certificates and vouchers’’ and inserting ‘‘assist-
ance under section 8 of the United States
Housing Act of 1937’’; and
(B) in subsection (b)—
(i) in the 1st sentence, by striking
‘‘not more than 1500 incremental vouchers
and certificates under sections 8(b) and
8(o) of the United States Housing Act of
1937’’ and inserting ‘‘incremental assist-
ance under section 8 of the United States
Housing Act of 1937 on behalf of not more
than 1,500 frail elderly persons’’;
(ii) in the 3rd sentence, by striking
‘‘the housing certificate or voucher pro-
gram of the agency’’ and inserting ‘‘the
agency’s program for assistance under
such section 8’’; and
(iii) in the last sentence, by striking
‘‘sections 8(b) and 8(o)’’ and inserting
‘‘section 8’’.
(3) MCKINNEY
ACT.—Section 441(b) of the
Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11401(b)) is amended—
(A) by striking ‘‘section 8(n)’’ and insert-
ing ‘‘section 8(l)’’; and
(B) by adding at the end the following new
sentence: ‘‘Moderate rehabilitation under this
section shall be carried out in the manner pro-
vided under the provisions of section 8(e) of the
United States Housing Act of 1937, as such
section was in effect immediately before the en-
actment of the Housing and Community Devel-
opment Act of 1994.’’.
(4) NATIONAL HOUSING ACT.—Section 203(v)
of the National Housing Act (12 U.S.C. 1709(v)), as
added by section 185(c)(1)(B) of the Housing and
Community Development Act of 1992, is amended
by striking ‘‘section 8(y)’’ and inserting ‘‘section
8(t)’’.
Subtitle D—Homeownership
Programs
SEC. 151. HOPE HOMEOWNERSHIP PROGRAMS.
(a) AUTHORIZATION
OF
APPROPRIATIONS
AND
TECHNICAL ASSISTANCE.—
(1) IN GENERAL.—Section 402 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12870) is amended by striking subsections
(a) and (b) and inserting the following new sub-
section:
‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au-
thorized to be appropriated for grants under this title
$100,000,000 for fiscal year 1995 and $100,000,000 for
fiscal year 1996, which shall be available for activities au-
thorized under subtitles B and C. Any amounts appro-
priated pursuant to this subsection shall remain available
until expended.’’.
(b) MATCHING REQUIREMENTS.—
(1) HOPE II.—Section 423(c) of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12873(c)) is amended by striking ‘‘33 per-
cent’’ and inserting ‘‘25 percent’’.
(2) HOPE III.—Section 443(c)(1) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12893(c)(1)) is amended by striking ‘‘33 per-
cent’’ and inserting ‘‘25 percent’’.
SEC. 152. NATIONAL HOMEOWNERSHIP TRUST.
(a) EXTENSION
OF TRUST.—Section 310 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12859) is amended by striking ‘‘The’’ and all that
follows and inserting the following: ‘‘The Trust shall ter-
minate at the end of September 30, 1996.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
308 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12857) is amended to read as follows:
‘‘SEC. 308. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for assist-
ance payments under this subtitle $558,809,562 for fiscal
year 1995 and $575,573,849 for fiscal year 1996, of
which such sums as may be necessary shall be available
in each such fiscal year for use under section 303(e). Any
amount appropriated under this section shall be deposited
in the Fund and shall remain available until expended,
subject to the provisions of section 309.’’.
SEC. 153. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act (12
U.S.C. 1715z(r)) is amended—
(1) in paragraph (2)(C), by inserting after ‘‘re-
financed’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate
as permitted by subparagraph (E) or paid by the
Secretary as authorized by paragraph (4)(B)’’;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by inserting after ‘‘otherwise)’’ the follow-
ing: ‘‘and the mortgagee (with respect to the
amount described in subparagraph (A))’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortga-
gee’’; and
(3) by amending paragraph (5) to read as fol-
lows:
‘‘(5) The Secretary shall use amounts of budget au-
thority recaptured from assistance payments contracts re-
lating to mortgages that are being refinanced for assist-
ance payments contracts with respect to mortgages in-
sured under this subsection. The Secretary may also make
such recaptured amounts available for incentives under
paragraph (4)(A) and the costs incurred in connection
with the refinancing under paragraph (4)(B). For pur-
poses of subsection (c)(3)(A), the amount of recaptured
budget authority that the Secretary commits for assist-
ance payments contracts relating to mortgages insured
under this subsection and for amounts paid under para-
graph (4) shall not be construed as unused.’’.
Subtitle E—Other Programs
SEC. 161. COMMUNITY PARTNERSHIPS AGAINST CRIME.
(a) SHORT TITLE, PURPOSES, AND AUTHORITY TO
MAKE GRANTS.—Sections 5121, 5122, and 5123 of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11901 note,
11901, 11902) are amended to read as follows:
‘‘SEC. 5121. SHORT TITLE.
‘‘This chapter may be cited as the ‘Community Part-
nerships Against Crime Act of 1994’.
‘‘SEC. 5122. PURPOSES.
‘‘The purposes of this chapter are to—
‘‘(1) substantially expand and enhance the Fed-
eral Government’s commitment to eliminating crime
in and around public housing and other federally as-
sisted housing projects;
‘‘(2) broaden the scope of the Public and As-
sisted Housing Drug Elimination Act of 1990 to
apply to all types of crime and not simply crime that
is drug-related;
‘‘(3) target opportunities for long-term commit-
ments of funding primarily to public housing agen-
cies with serious crime problems;
‘‘(4) encourage the involvement of a broad
range of community-based groups, and residents of
neighboring housing that is owned or assisted by the
Secretary, in the development and implementation of
anti-crime plans;
‘‘(5) reduce crime and disorder in and around
public housing through the expansion of community-
oriented policing activities and problem solving;
‘‘(6) provide training, information services, and
other technical assistance to program participants;
and
‘‘(7) establish a standardized assessment sys-
tem to evaluate need among public housing agencies,
and to measure progress in reaching crime reduction
goals.
‘‘SEC. 5123. AUTHORITY TO MAKE GRANTS.
‘‘(a) IN GENERAL.—The Secretary of Housing and
Urban Development, in accordance with the provisions of
this chapter, may make grants, for use in eliminating
crime in and around public and other federally assisted
low-income housing projects to public housing agencies
(including Indian housing authorities) and private, for-
profit and nonprofit owners of federally assisted low-in-
come housing, pursuant to applications submitted and ap-
proved under section 5125. In designing the program
under this chapter, the Secretary shall consult with the
Attorney General.
‘‘(b) GRANT PERIOD.—Except as provided in sub-
section (c), a grant under this chapter shall be made to
cover a period of up to 2 years, as determined by the Sec-
retary, taking into consideration the period for which the
grant is requested as stated in the application under sec-
tion 5125.
‘‘(c) GRANT PERIOD FOR PHA’S HAVING SEVERE
CRIME PROBLEMS.—In carrying out this chapter, the Sec-
retary may make grants to public housing agencies having
especially severe crime problems that cover a period of 1
year and that shall be renewed annually for each of the
succeeding 4 years, subject to—
‘‘(1) the availability of amounts provided in ap-
propriation Acts, and
‘‘(2) a finding by the Secretary, after an annual
or more frequent performance review, that the public
housing agency is performing under the terms of the
grant and applicable laws in a satisfactory manner,
a need for such assistance continues to exist, and
the agency meets such other requirements as the
Secretary may prescribe.
The Secretary shall, by regulations issued after notice and
opportunity for public comment, set forth criteria for de-
termining public housing agencies that have especially se-
vere crime problems.’’.
(b) ELIGIBLE ACTIVITIES.—Section 5124 of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11903) is
amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by inserting ‘‘and around’’ after ‘‘used in’’;
(B) in paragraph (3), by inserting before
the semicolon the following: ‘‘, such as fencing,
lighting, locking, and surveillance systems’’;
(C) by striking paragraph (4)(A) and in-
serting the following new subparagraph:
‘‘(A) to investigate crime; and’’;
(D) in paragraph (6)—
(i) by striking ‘‘in and around public
or other federally assisted low-income
housing projects’’; and
(ii) by striking ‘‘and’’ after the semi-
colon; and
(E) by striking paragraph (7) and insert-
ing the following new paragraphs:
‘‘(7) providing funding to nonprofit public hous-
ing resident management corporations and resident
councils to develop security and crime prevention
programs involving site residents;
‘‘(8) the employment or utilization of 1 or more
individuals, including law enforcement officers, made
available by contract or other cooperative arrange-
ment with State or local law enforcement agencies,
to engage in community- and problem-oriented polic-
ing involving interaction with members of the com-
munity on proactive crime control and prevention;
‘‘(9) programs and activities for or involving
youth, including activities involving training, edu-
cation, after school programs, cultural programs,
recreation and sports, career planning, and entrepre-
neurship and employment; and
‘‘(10) service programs for residents that ad-
dress the contributing factors of crime, including
programs for job training, education, and other ap-
propriate social services.’’.
(2) in subsection (b)—
(A) in the matter preceding paragraph
(1)—
100
(i) by striking ‘‘drug-related crime in’’
and inserting ‘‘crime in and around’’; and
(ii) 
by 
striking 
‘‘paragraphs 
(1)
through (7)’’ and inserting ‘‘paragraphs
(1) through (10)’’;
(B) by striking paragraph (1) and insert-
ing the following new paragraph:
‘‘(1) the housing is located in—
‘‘(A) an area that has a severe crime prob-
lem, as determined by the Secretary; or
‘‘(B) a high intensity drug trafficking area
designated pursuant to section 1005 of this
Act; and’’; and
(C) in paragraph (2), by striking ‘‘drug-re-
lated’’ and inserting ‘‘criminal’’.
(c) APPLICATIONS.—Section 5125 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11904) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘, a
public housing resident management corpora-
tion,’’;
(B) in the second sentence (i) by striking
‘‘drug-related crime on the premises of’’ and in-
serting the following: ‘‘crime in and around’’;
and
101
(C) by inserting before the period at the
end the following: ‘‘and the period during which
any grant amounts received pursuant to the ap-
plication are to be used’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘drug-re-
lated crime problem in’’ and inserting in lieu
thereof the following: ‘‘crime problem in and
around’’;
(B) in paragraph (2), by inserting ‘‘and
around’’ after ‘‘crime problem in’’; and
(C) in paragraph (4), by inserting after
‘‘local government’’ the following: ‘‘, local com-
munity-based non-profit organizations, local
resident organizations that represent the resi-
dents of neighboring projects that are owned or
assisted by the Secretary,’’;
(3) in subsection (c)(2), by striking ‘‘drug-relat-
ed’’ each place it appears;
(4) in subsection (d)—
(A) by striking ‘‘drug-related’’; and
(B) by redesignating such subsection as
subsection (e); and
(5) by inserting after subsection (c) the follow-
ing new subsection:
102
‘‘(d) PREFERENCES.—In selecting applicants to re-
ceive grants under this chapter (not including grants pur-
suant to section 5123(c)), the Secretary may give pref-
erence to an applicant for a grant that is to be used to
continue or expand activities assisted under a grant pre-
viously made under this chapter, but only if the Secretary
finds that the program carried out by the applicant under
the previous grant is being managed soundly and dem-
onstrates success, and a need for such assistance contin-
ues to exist.’’.
(d) DEFINITIONS.—Section 5126 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11905) is amended—
(1) by striking paragraphs (1) and (2); and
(2) by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
(e) IMPLEMENTATION.—Section 5127 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11906) is amended
by striking ‘‘Cranston-Gonzalez National Affordable
Housing Act’’ and inserting ‘‘Housing and Community
Development Act of 1994’’.
(f) REPORTS.—Section 5128 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11907) is amended by striking
‘‘drug-related crime in’’ and inserting ‘‘crime in and
around’’.
103
(g) AUTHORIZATION OF APPROPRIATIONS.—Section
5130 of the Anti-Drug Abuse Act of 1988 (42 U.S.C.
11909) is amended—
(1) in subsection (a), by striking the first sen-
tence and inserting the following new sentence:
‘‘There are authorized to be appropriated to carry
out this chapter $272,950,000 for fiscal year 1995
and $281,138,500 for fiscal year 1996.’’;
(2) by striking the second sentence of sub-
section (b); and
(3) by striking subsection (c).
(h) TECHNICAL ASSISTANCE.—Chapter 2 of subtitle
C of title V of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11901 et seq.) is amended—
(1) by redesignating section 5130 as section
5131; and
(2) by inserting after section 5129 the following
new section:
‘‘SEC. 5130. TECHNICAL ASSISTANCE.
‘‘(a) AUTHORITY.—Of the amounts appropriated an-
nually for each of fiscal years 1995 and 1996 to carry
out this chapter, the Secretary may use an amount not
exceeding $10,000,000, directly or indirectly, under
grants, contracts, cooperative agreements, or otherwise, to
provide training, information services, and other technical
104
assistance to public housing agencies and other entities
with respect to their participation in the program author-
ized by this chapter.
‘‘(b) USE.—Such technical assistance may include—
‘‘(1) the establishment and operation of the
clearinghouse on drug abuse in public housing and
the regional training program on drug abuse in pub-
lic housing under sections 5143 and 5144 of this
Act; and
‘‘(2) obtaining assistance in establishing and
managing assessment and evaluation criteria and
specifications under this chapter, and obtaining the
opinions of experts in relevant fields.’’.
(i) CONFORMING
AMENDMENTS.—The Anti-Drug
Abuse Act of 1988 is amended—
(1) by striking the heading for chapter 2 of
subtitle C of title V and inserting the following new
heading:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS
AGAINST CRIME’’;
and
(2) in the table of contents in section 5001
(Public Law 100–690; 102 Stat. 4295)—
105
(A) by striking the item relating to the
heading for chapter 2 of subtitle C and insert-
ing the following new item:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;
(B) by striking the item relating to section
5122 and inserting the following new item:
‘‘Sec. 5122. Purposes.’’; .....................................................................
and
(C) by striking the item relating to section
5130 and inserting the following new items:
‘‘Sec. 5130. Authorization of appropriations.
‘‘Sec. 5131. Technical assistance.’’.
SEC. 162. PUBLIC HOUSING YOUTH SPORTS PROGRAMS.
Section 520 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 11903a) is amended—
(1) in subsection (a), by striking ‘‘provided for
public and assisted housing drug elimination grants
under section 5130(a) of the Anti-Drug Abuse Act
of 1988’’ and inserting ‘‘made available under sub-
section (k)’’; and
(2) by striking subsection (k) and inserting the
following new subsection:
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for grants under this
section $13,647,000 for fiscal year 1995 and $14,056,925
for fiscal year 1996.’’.
106
SEC. 163. LOW-INCOME HOUSING PRESERVATION.
(a) ASSISTANCE AND INCENTIVES.—Section 234 of
the Housing and Community Development Act of 1987
(12 U.S.C. 4124) is amended to read as follows:
‘‘SEC. 234. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated for assistance and incentives authorized under
this subtitle $685,011,183 for fiscal year 1995 and
$705,561,518 for fiscal year 1996.
‘‘(b) GRANTS.—Subject to approval in appropriation
Acts, not more than $50,000,000 of the amounts made
available under subsection (a) for fiscal year 1995, and
not more than $50,000,000 of the amounts made available
under subsection (a) for fiscal year 1996, shall be available
for grants under section 221(d)(2).’’.
(b) TECHNICAL ASSISTANCE AND CAPACITY BUILD-
ING.—The first sentence of section 257 of the Housing
and Community Development Act of 1987 (12 U.S.C.
4147) is amended to read as follows: ‘‘The Secretary shall
use not more than $25,000,000 of the amounts made
available under section 234(a) for fiscal year 1995, and
not more than $25,000,000 of the amounts made available
under section 234(a) for fiscal year 1996, to carry out
this subtitle.’’.
107
SEC. 164. FLEXIBLE SUBSIDY PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
201(j)(5) of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z–1a(j)(5)) is
amended to read as follows:
‘‘(5) There are authorized to be appropriated for as-
sistance under the flexible subsidy fund not to exceed
$56,024,172 for fiscal year 1995 and $57,704,897 for fis-
cal year 1996.’’.
(b) USE
OF SECTION 236 RENTAL ASSISTANCE
FUND AMOUNTS.—Section 236(f)(3) of the National
Housing Act (12 U.S.C. 1715z–1(f)(3)) is amended by
striking ‘‘September 30, 1994’’ and inserting ‘‘September
30, 1996’’.
SEC. 165. HOUSING COUNSELING.
(a) COUNSELING SERVICES.—The first sentence of
section 106(a)(3) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(a)(3)) is amended by strik-
ing ‘‘except that’’ and all that follows through the period
at the end and inserting the following: ‘‘except that for
such purposes there are authorized to be appropriated
$50,000,000 for fiscal year 1995 and $51,500,000 for fis-
cal year 1996.’’.
(b) EMERGENCY HOMEOWNERSHIP COUNSELING.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
The first sentence of section 106(c)(8) of the Hous-
108
ing and Urban Development Act of 1968 (12 U.S.C.
1701x(c)(8)) is amended to read as follows: ‘‘There
are authorized to be appropriated to carry out this
section $7,512,820 for fiscal year 1995 and
$7,738,205 for fiscal year 1995, of which amounts
$1,000,000 shall be available in each such fiscal year
to carry out paragraph (5)(D).’’.
(2) 
EXTENSION
OF
PROGRAM.—Section
106(c)(9) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(c)(9)) is amended by
striking ‘‘September 30, 1994’’ and inserting ‘‘Sep-
tember 30, 1996’’.
(c) PREPURCHASE AND FORECLOSURE-PREVENTION
COUNSELING DEMONSTRATION.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
Section 106(d)(12) of the Housing and Urban De-
velopment Act of 1968 (12 U.S.C. 1701x(d)(12)) is
amended to read as follows:
‘‘(12) AUTHORIZATION OF APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection $391,740 for fiscal year 1995 and
$403,492 for fiscal year 1996.’’.
(2) 
EXTENSION
OF
PROGRAM.—Section
106(d)(13) of the Housing and Urban Development
Act of 1968 (12 U.S.C. 1701x(d)(13)) is amended
109
by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal
year 1996’’.
(d) COUNSELOR TRAINING AND CERTIFICATION PRO-
GRAM.—Section 106(f)(7) of the Housing and Urban De-
velopment Act of 1968 (12 U.S.C. 1701x(f)(7)) is amend-
ed to read as follows:
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to carry out
this subsection $2,146,520 for fiscal year 1995 and
$2,210,916 for fiscal year 1996.’’.
SEC. 166. PREVENTING MORTGAGE DEFAULTS ON MULTI-
FAMILY HOUSING PROJECTS.
(a) MULTIFAMILY HOUSING PLANNING AND INVEST-
MENT STRATEGIES.—
(1) PREPARATION OF ASSESSMENTS FOR INDE-
PENDENT ENTITIES.—Section 402(a) of the Housing
and Community Development Act of 1992 (12
U.S.C. 1715–1a note) is amended by adding at the
end the following new sentence: ‘‘The assessment
shall be prepared by an entity that does not have an
identity of interest with the owner.’’.
(2) TIMING OF SUBMISSION OF NEEDS ASSESS-
MENTS.—Section 402(b) of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 17152–
1a note) is amended to read as follows:
110
‘‘(b) TIMING.—To ensure that assessments for all
covered multifamily housing properties will be submitted
on or before the conclusion of fiscal year 1997, the Sec-
retary shall require the owners of such properties, includ-
ing covered multifamily housing properties for the elderly,
to submit the assessments for the properties in accordance
with the following schedule:
‘‘(1) For fiscal year 1994, 10 percent of the ag-
gregate number of such properties.
‘‘(2) For each of fiscal years 1995, 1996, and
1997, an additional 30 percent of the aggregate
number of such properties.’’.
(3) REVIEW
OF
COMPREHENSIVE
NEEDS
AS-
SESSMENTS.—Section 404(d) of the Housing and
Community Development Act of 1992 (12 U.S.C.
1715–1a note) is amended to read as follows:
‘‘(d) REVIEW.—
‘‘(1) IN GENERAL.—The Secretary shall review
each comprehensive needs assessment for complete-
ness and adequacy before the expiration of the 90-
day period beginning on the receipt of the assess-
ment and shall notify the owner of the property for
which the assessment was submitted of the findings
of such review.
111
‘‘(2) INCOMPLETE
OR
INADEQUATE
ASSESS-
MENTS.—If the Secretary determines that the as-
sessment is substantially incomplete or inadequate,
the Secretary shall—
‘‘(A) notify the owner of the portion or
portions of the assessment requiring completion
or other revision; and
‘‘(B) require the owner to submit an
amended assessment to the Secretary not later
than 30 days after such notification.’’.
(4) REPEAL
OF
NOTICE
PROVISION.—Section
404 of the Housing and Community Development
Act of 1992 (12 U.S.C. 1715–1a note) is amend-
ed—
(A) by striking subsection (f); and
(B) by redesignating subsection (g) as sub-
section (f).
(5) FUNDING.—Title IV of the Housing and
Community Development Act of 1992 (12 U.S.C.
1715z–1a note) is amended by adding at the end the
following new section:
‘‘SEC. 409. FUNDING.
‘‘(a) ALLOCATION
OF ASSISTANCE.—Based upon
needs identified in comprehensive needs assessments, and
subject to otherwise applicable program requirements, in-
112
cluding selection criteria, the Secretary may allocate the
following assistance to owners of covered multifamily
housing projects and may provide such assistance on a
noncompetitive basis:
‘‘(1) Operating assistance and capital improve-
ment assistance for troubled multifamily housing
projects pursuant to section 201 of the Housing and
Community Development Amendments of 1978, ex-
cept for assistance set aside under section 201(n)(1).
‘‘(2) Loan management assistance available
pursuant to section 8 of the United States Housing
Act of 1937.
‘‘(b) OPERATING ASSISTANCE
AND CAPITAL IM-
PROVEMENT ASSISTANCE.—In providing assistance under
subsection (a) the Secretary shall use the selection criteria
set forth in section 201(n) of the Housing and Community
Development Amendments of 1978.
‘‘(c) AMOUNT OF ASSISTANCE.—The Secretary may
fund all or only a portion of the needs identified in the
capital needs assessment of an owner selected to receive
assistance under this section.’’.
(b) FLEXIBLE SUBSIDY PROGRAM.—
(1) DELETION
OF
UTILITY
COST
REQUIRE-
MENTS.—Section 201(i) of the Housing and Com-
113
munity Development Amendments of 1978 (12
U.S.C. 1715z–1a(i)) is hereby repealed.
(2) REPEAL
OF
MANDATORY
CONTRIBUTION
FROM OWNER.—Section 201(k)(2) of the Housing
and Community Development Amendments of 1978
(12 U.S.C. 1715z–1a(k)(2)) is amended by striking
‘‘, except that’’ and all that follows and inserting a
period.
(3) FUNDING.—Section 201(n) of the Housing
and Community Development Amendments of 1978
(42 U.S.C. 1715z–1a(n)) is amended to read as
follows:
‘‘(n) ALLOCATION OF ASSISTANCE.—
‘‘(1) SET-ASIDE.—In providing, and contracting
to provide, assistance for capital improvements
under this section, in each fiscal year the Secretary
shall set aside an amount, as determined by the Sec-
retary, for projects that are eligible for incentives
under section 224(b) of the Emergency Low Income
Housing Preservation Act of 1987, as such section
existed before the date of enactment of the Cran-
ston-Gonzalez National Affordable Housing Act. The
Secretary may make such assistance available on a
noncompetitive basis.
114
‘‘(2) GENERAL RULES FOR ALLOCATION.—Ex-
cept as provided in paragraph (3), with respect to
assistance under this section not set aside for
projects under paragraph (1), the Secretary—
‘‘(A) may award assistance on a non-
competitive basis; and
‘‘(B) shall award assistance to eligible
projects on the basis of—
‘‘(i) the extent to which the project is
physically or financially troubled, as evi-
denced by the comprehensive needs assess-
ment submitted in accordance with title IV
of the Housing and Community Develop-
ment Act of 1992; and
‘‘(ii) the extent to which such assist-
ance is necessary and reasonable to pre-
vent the default of federally insured mort-
gages.
‘‘(3) EXCEPTIONS.—The Secretary may make
exceptions to selection criteria set forth in paragraph
(2) to permit the provision of assistance to eligible
projects based upon—
‘‘(A) the extent to which such assistance is
necessary to prevent the imminent foreclosure
or default of a project whose owner has not
115
submitted a comprehensive needs assessment
pursuant to title IV of the Housing and Com-
munity Development Act of 1992;
‘‘(B) the extent to which the project pre-
sents an imminent threat to the life, health,
and safety of project residents; or
‘‘(C) such other criteria as the Secretary
may specify by regulation or by notice printed
in the Federal Register.
‘‘(4) CONSIDERATIONS.—In providing assist-
ance under this section, the Secretary shall take into
consideration—
‘‘(A) the extent to which there is evidence
that there will be significant opportunities for
residents (including a resident council or resi-
dent management corporation, as appropriate)
to be involved in the management of the project
(except that this paragraph shall have no appli-
cation to projects that are owned as coopera-
tives); and
‘‘(B) the extent to which there is evidence
that the project owner has provided competent
management and complied with all regulatory
and administrative handbooks (including such
handbooks with respect to the comprehensive
116
servicing of multifamily projects as the Sec-
retary may issue).’’.
(4) REPEAL.—Section 201 of the Housing and
Community Development Amendments of 1978 (12
U.S.C. 1715z–1a) is amended—
(A) by striking subsection (o); and
(B) by redesignating subsection (p) as sub-
section (o).
(c) IMPLEMENTATION AND EFFECTIVE DATE FOR
SUBSECTIONS (a) AND (b).—The Secretary shall, by no-
tice published in the Federal Register, which shall take
effect upon publication, establish such requirements as
may be necessary to implement the amendments made by
subsections (a) and (b). The notice shall invite public com-
ments and, not later than 12 months after the date on
which the notice is published, the Secretary shall issue
final regulations based on the initial notice, taking into
account any public comments received.
(d) STREAMLINED REFINANCING.—As soon as prac-
ticable, the Secretary shall implement a streamlined refi-
nancing program under the authority provided in section
223 of the National Housing Act to prevent the default
of mortgages insured by the FHA which cover multifamily
housing projects, as defined in section 203(b) of the Hous-
ing and Community Development Amendments of 1978.
117
(e) GAO STUDY ON PREVENTION OF DEFAULT.—
(1) IN GENERAL.—Not later than September 1,
1995, the Comptroller General of the United States
shall submit to the Committee on Banking, Finance
and Urban Affairs of the House of Representatives
and the Committee on Banking, Housing, and
Urban Affairs of the Senate a report that evaluates
the adequacy of loan loss reserves in the General In-
surance and Special Risk Insurance Funds and pre-
sents recommendations for the Secretary to prevent
losses from occurring.
(2) CONTENTS.—The report submitted under
paragraph (1) shall—
(A) evaluate the factors considered in ar-
riving at loss estimates and determine whether
other factors should be considered;
(B) determine the relative benefit of creat-
ing a new, actuarially sound insurance fund for
all new multifamily housing insurance commit-
ments; and
(C) recommend alternatives to the Sec-
retary’s current procedures for preventing the
future default of multifamily housing project
mortgages insured under title II of the National
Housing Act.
118
SEC. 167. YOUTHBUILD PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
402 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12870), as amended by the preceding
provisions of this title, is amended by inserting after sub-
section (a) the following new subsection:
‘‘(b) YOUTHBUILD PROGRAM.—There are authorized
to be appropriated for activities under subtitle D
$50,000,000 for fiscal year 1995 and $51,500,000 for fis-
cal year 1996. Any amounts appropriated pursuant to this
subsection shall remain available until expended.’’.
(b) PROGRAM NAME.—The heading for subtitle D of
title IV of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12899 et seq.) is amended to read
as follows:
‘‘Subtitle D—Youthbuild’’.
TITLE II—HOME INVESTMENT
PARTNERSHIPS
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Section 205 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12724) is amended to
read as follows:
‘‘SEC. 205. AUTHORIZATION.
‘‘There are authorized to be appropriated to carry out
this title $2,238,820,360 for fiscal year 1995, and
$2,305,984,971 for fiscal year 1996, of which—
119
‘‘(1) not more than $25,000,000 for fiscal year
1995, and $25,000,000 for fiscal year 1996, shall be
for community housing partnership activities author-
ized under section 233; and
‘‘(2) not more than $22,000,000 for fiscal year
1995, and $22,000,000 for fiscal year 1996, shall be
for activities in support of State and local housing
strategies authorized under subtitle C.’’.
SEC. 202. PARTICIPATION BY STATE AGENCIES OR INSTRU-
MENTALITIES.
Section 104(2) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704(2)) is amended
by inserting before the period at the end the following:
‘‘, and any agency or instrumentality thereof that is estab-
lished pursuant to legislation and designated by the chief
executive to act on behalf of the State with regard to the
provisions of this Act’’.
SEC. 203. SIMPLIFICATION OF PROGRAM-WIDE INCOME
TARGETING FOR RENTAL HOUSING.
Section 214(1) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12744(1)) is amend-
ed—
(1) in subparagraph (A)—
(A) by striking ‘‘such funds are invested
with respect to dwelling units that are occupied
120
by’’ and inserting ‘‘(i) the families receiving
such rental assistance are’’; and
(B) by striking ‘‘, and’’ and inserting ‘‘or
(ii) the dwelling units assisted with such funds
are occupied by families having such incomes;
and’’; and
(2) in subparagraph (B)—
(A) by striking ‘‘such funds are invested
with respect to dwelling units that are occupied
by’’ and inserting ‘‘(i) the families receiving
such rental assistance are’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘, or (ii) the dwelling
units assisted with such funds are occupied by
such households’’.
SEC. 204. HOMEOWNERSHIP UNITS.
(a) REMOVAL
OF FIRST-TIME HOMEBUYER RE-
QUIREMENT.—Section 215(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12745(b)) is
amended—
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.
(b) SIMPLIFICATION OF RESALE PROVISIONS.—Sec-
tion 215(b)(4)(B) of the Cranston-Gonzalez National Af-
121
fordable Housing Act (42 U.S.C. 12745(b)(4)(B)), as re-
designated by subsection (a) of this section, is amended
by striking ‘‘subsection’’ and inserting ‘‘title’’.
SEC. 205. COMPREHENSIVE AFFORDABLE HOUSING STRAT-
EGY.
Section 218(d) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12748(d)) is amended
in the first sentence, by inserting ‘‘that it is complying
with a current housing affordability strategy that has been
approved by the Secretary in accordance with section 105,
and’’ after ‘‘certification’’.
SEC. 206. SIMPLIFICATION OF MATCHING REQUIREMENTS.
Section 220(a) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12750(a)) is amended
to read as follows:
‘‘(a) CONTRIBUTION.—Each participating jurisdic-
tion shall make contributions to housing that qualifies as
affordable housing under this title that total, throughout
a fiscal year, not less than 25 percent of the funds drawn
from the jurisdiction’s HOME Investment Trust Fund in
such fiscal year. Such contributions shall be in addition
to 
any 
amounts 
made 
available 
under 
section
216(3)(A)(ii).’’.
122
SEC. 207. REPEAL OF SEPARATE AUDIT REQUIREMENT.
Section 283 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12833) is amended—
(1) by striking the section designation and
heading and inserting the following:
‘‘SEC. 283. AUDITS BY COMPTROLLER GENERAL.’’;
(2) by striking subsection (a);
(3) in subsection (b)—
(A) by striking ‘‘(b) AUDITS
BY
THE
COMPTROLLER GENERAL.—’’;
(B) by redesignating paragraphs (1) and
(2) as subsections (a) and (b), respectively; and
(C) by moving subsections (a) and (b), as
redesignated by subparagraph (B), 2 ems to the
left so that such subsections are flush with the
left margin; and
(4) in subsection (a), as redesignated by para-
graph (3)(B), by striking the second sentence.
SEC. 208. ENVIRONMENTAL REVIEW REQUIREMENTS.
Section 288 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12838) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘par-
ticipating jurisdictions’’ and inserting ‘‘jurisdic-
tions, Indian tribes, or insular areas’’; and
123
(B) by adding at the end the following new
sentences: ‘‘The regulations shall provide—
‘‘(1) for the monitoring of the performance of
environmental reviews under this section;
‘‘(2) in the discretion of the Secretary, for the
provision or facilitation of training for the perform-
ance of such reviews; and
‘‘(3) for the suspension or termination of the
assumption under this section.
The Secretary’s duty under the preceding sentence shall
not be construed to limit or reduce any responsibility as-
sumed by a State or unit of general local government with
respect to any particular release of funds.’’;
(2) in the first sentence of subsection (b), by
striking ‘‘participating jurisdiction’’ and inserting
‘‘jurisdiction, Indian tribe, or insular area’’;
(3) in subsection (c)(4)(B), by striking ‘‘partici-
pating jurisdiction’’ and inserting ‘‘jurisdiction, In-
dian tribe, or insular area’’; and
(4) in subsection (d), by striking ‘‘ASSISTANCE
TO A STATE.—In the case of assistance to States’’
and inserting the following: ‘‘ASSISTANCE TO UNITS
OF
GENERAL
LOCAL
GOVERNMENT
FROM
A
STATE.—In the case of assistance to units of gen-
eral local government from a State’’.
124
SEC. 209. USE OF CDBG FUNDS FOR HOME PROGRAM EX-
PENSES.
(a) 
ADMINISTRATIVE
EXPENSES.—Section
105(a)(13) of the Housing and Community Development
Act of 1974 (42 U.S.C. 5305(a)(13)) is amended by in-
serting after ‘‘charges related to’’ the following: ‘‘(A) ad-
ministering the HOME program under title II of the
Cranston-Gonzalez National Affordable Housing Act; and
(B)’’.
(b) PROJECT DELIVERY COSTS.—Section 105(a)(21)
of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)(21)) is amended—
(1) by inserting ‘‘in connection with tenant-
based rental assistance and affordable housing
projects assisted under title II of the Cranston-Gon-
zalez National Affordable Housing Act’’ after ‘‘hous-
ing counseling’’; and
(2) by striking ‘‘authorized’’ and all that follows
through ‘‘any law’’ and inserting ‘‘assisted under
title II of the Cranston-Gonzalez National Afford-
able Housing Act’’.
SEC. 210. GAO STUDY OF USE OF HOME PROGRAM FUNDS.
The Comptroller General of the United States shall
conduct a study of the use of amounts provided under title
II of the Cranston-Gonzalez National Affordable Housing
Act to participating jurisdictions for each of fiscal years
125
1992, 1993, and 1994, and the activities undertaken with
such amounts. The study shall determine, for the amounts
provided for each such fiscal year—
(1) the amount expended for single family hous-
ing and the types and number of units provided;
(2) the amount expended for multifamily rental
housing and the types and number of units provided;
(3) the amount expended for new construction
of housing and the types and number of units pro-
vided;
(4) the amount expended for rehabilitation of
housing and the types and number of units provided;
and
(5) the amount expended pursuant to sections
231 and 232 of the Cranston-Gonzalez National Af-
fordable Housing Act for activities of community
housing development organizations, including—
(A) the amount expended for providing
housing, the types of assistance provided, and
types and number of units provided; and
(B) the amount expended for technical and
other assistance and the types of assistance
provided.
126
Not later than March 31, 1995, the Comptroller General
shall submit to the Congress a report containing the re-
sults of the study conducted under this section.
SEC. 211. CAPACITY BUILDING FOR COMMUNITY DEVELOP-
MENT AND AFFORDABLE HOUSING.
Section 4(e) of the HUD Demonstration Act of 1993
(42 U.S.C. 9816 note) is amended to read as follows:
‘‘(e) FUNDING.—From any amounts appropriated to
carry out title II of the Cranston-Gonzalez National Af-
fordable Housing Act for fiscal years 1995 and 1996,
$25,000,000 shall be available in each such fiscal year to
carry out this section.’’.
SEC. 212. APPLICABILITY AND REGULATIONS.
The amendments made by this title shall apply with
respect to any amounts made available to carry out title
II of the Cranston-Gonzalez National Affordable Housing
Act after the date of the enactment of this Act and any
amounts made available to carry out such title before such
date of enactment that remain unobligated on such date.
The Secretary shall issue any regulations necessary to
carry out the amendments made by this title not later than
the expiration of the 45-day period beginning on the date
of the enactment of this Act.
127
TITLE III—SUPPORTIVE
HOUSING PROGRAMS
SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE
ELDERLY AND FOR PERSONS WITH DISABIL-
ITIES.
Section 601 of the Housing and Community Develop-
ment Act of 1992 (Public Law 102–550; 106 Stat. 3802)
is amended by striking subsection (a) and inserting the
following new subsection:
‘‘(a) AGGREGATE FUNDING.—There are authorized
to be appropriated for the purpose of providing assistance
in accordance with section 202 of the Housing Act of 1959
and section 811 of the Cranston-Gonzalez National Af-
fordable Housing Act, $1,591,350,000 for fiscal year 1995
and $1,639,090,500 for fiscal year 1996.’’.
SEC. 302. ELDER COTTAGE HOUSING DEMONSTRATION
PROGRAM.
(a) FUNDING.—The first sentence of section
806(b)(2) of the Cranston-Gonzalez National Affordable
Housing Act (12 U.S.C. 1701q note) is amended to read
as follows: ‘‘Notwithstanding any other law, the Secretary
shall reserve from any amounts available for capital ad-
vances and project rental assistance under section 202 of
the Housing Act of 1959, amounts sufficient in each of
fiscal years 1995 and 1996 to provide not less than 100
128
units under the demonstration under this subsection in
connection with each such section.’’.
(b) REPORT.—Section 806(b)(3) of the Cranston-
Gonzalez National Affordable Housing Act (12 U.S.C.
1701q note) is amended by striking ‘‘January 1, 1994,
the Secretary shall submit a’’ and inserting ‘‘January 1,
1995, the Secretary shall submit an interim’’.
SEC. 303. REVISED CONGREGATE SERVICES.
Section 802(n)(1) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8011(n)(1)) is amend-
ed by striking the matter preceding subparagraph (A) and
inserting the following:
‘‘(1) AUTHORIZATION AND USE.—There are au-
thorized to be appropriated to carry out this section
$25,750,000 for fiscal year 1995, and $26,522,500
for fiscal year 1996, of which not more than—’’.
SEC. 304. ELDERLY INDEPENDENCE DEMONSTRATION.
(a) SECTION 8 ASSISTANCE.—The first sentence of
section 803(j) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 8012(j)) is amended to read
as follows: ‘‘The budget authority available under section
5(c) of the United States Housing Act of 1937 for assist-
ance under section 8 of such Act is authorized to be in-
creased by $41,092,979 on or after October 1, 1994, and
by $42,325,768 on or after October 1, 1995.’’.
129
(b) SUPPORTIVE SERVICES AUTHORIZATION.—The
first sentence of section 803(k) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8012(k)) is
amended to read as follows: ‘‘There are authorized to be
appropriated for the Secretary to carry out the responsibil-
ities for supportive services under the demonstrations
under this section $10,732,600 to become available in fis-
cal year 1995, and $11,054,578 to become available in fis-
cal year 1996.’’.
(c) AMENDMENT TO HEADING.—Section 803(k) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C.8012) is amended by striking the section des-
ignation and heading and inserting the following:
‘‘SEC. 803. ELDERLY INDEPENDENCE DEMONSTRATION.’’.
SEC. 305. HOUSING OPPORTUNITIES FOR PERSONS WITH
AIDS.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
863 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12912) is amended to read as follows:
‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subtitle $250,000,000 for fiscal year 1995 and
$257,500,000 for fiscal year 1996.’’.
130
(b) TECHNICAL ASSISTANCE.—Section 854(c)(3) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12903(c)(3)) is amended—
(1) in subparagraph (A)—
(A) in clause (i), by striking ‘‘and’’ at the
end;
(B) in clause (ii), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
clause:
‘‘(iii) nonprofit organizations that pro-
vide technical assistance on a national, re-
gional, or State-wide basis to nonprofit or-
ganizations carrying out eligible activities
under section 855 for eligible persons, to
provide such technical assistance, except
that not more than 2 percent of the
amounts available in any fiscal year for al-
location under this paragraph shall be used
as provided in this clause.’’; and
(2) in subparagraph (B), by striking ‘‘this para-
graph’’ and inserting ‘‘clauses (i) and (ii) of sub-
paragraph (A)’’.
(c) COOPERATION.—
131
(1) IN GENERAL.—Section 856(c) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12905(c)) is amended by striking ‘‘The recip-
ient’’ and all that follows and inserting the following:
‘‘The recipient shall establish and implement a proc-
ess for ensuring coordination and community input
in planning for and providing services assisted with
amounts provided under this subtitle. The planning
process shall include consultation and coordination
with the agencies of the relevant State and local gov-
ernments responsible for services for eligible persons
in the area served by the applicant and with other
public and private organizations and agencies pro-
viding services for such eligible persons (including
individuals with human immunodeficiency virus dis-
ease), including community-based and AIDS service
organizations, providers of social services, providers
of mental health care, providers of substance abuse
treatment services, nonprofit providers of housing
for eligible persons, and affected communities.’’.
(2) APPLICATION.—Section 854(d) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12903(d)) is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the
end;
132
(2) by redesignating paragraph (6) as para-
graph (7); and
(3) by inserting after paragraph (5) the follow-
ing new paragraph:
‘‘(6) a description of the activities to be under-
taken in fulfilling the requirements under section
856(c); and’’.
(d) ADMINISTRATIVE EXPENSES.—Section 856(g)(2)
of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12905(g)(2)) is amended—
(1) by striking ‘‘title’’ and inserting ‘‘subtitle’’;
and
(2) by striking ‘‘, including the costs of staff
necessary to carry out eligible activities’’.
SEC. 306. SERVICE COORDINATORS.
(a) PUBLIC HOUSING.—Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amend-
ed—
(1) in subsection (a)(1)(B)(ii)—
(A) in the 1st sentence, by striking ‘‘An-
nual’’ and all that follows through ‘‘such
project,’’ and inserting ‘‘To the extent amounts
are made available pursuant to section 5(c) for
carrying out this clause, the Secretary may in-
crease the annual contributions provided under
133
this section to any public housing agency for
any project to provide’’; and
(B) by striking the last 2 sentences.
(b) OTHER FEDERALLY ASSISTED MULTIFAMILY
HOUSING.—Section 676(c) of the Housing and Commu-
nity Development Act of 1992 (42 U.S.C. 13632(c)) is
amended to read as follows:
‘‘(c) 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 1995 and 1996.’’.
TITLE 
IV—MORTGAGE 
INSUR-
ANCE 
AND 
SECONDARY
MORTGAGE MARKET
Subtitle A—Mortgage Insurance
and Loan Guarantee Programs
SEC. 401. LIMITATION ON INSURANCE AUTHORITY.
Section 531(b) of the National Housing Act (12
U.S.C. 1735f–9(b)) is amended to read as follows:
‘‘(b) Notwithstanding any other provision of law and
subject only to the absence of qualified requests for insur-
ance, to the authority provided in this Act, and to the limi-
tation in subsection (a), the Secretary shall enter into
commitments to insure mortgages under this Act with an
aggregate principal amount of $105,000,000,000 during
134
fiscal year 1995 and $105,000,000,000 during fiscal year
1996.’’.
SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY
BOARD.
Section 202(b)(11) of the National Housing Act (12
U.S.C. 1708(b)(11)) is amended by striking ‘‘January 1,
1995.’’ and inserting ‘‘January 1, 1997.’’.
SEC. 403. HOME EQUITY CONVERSION MORTGAGES FOR EL-
DERLY HOMEOWNERS.
The 1st sentence of section 255(g) of the National
Housing Act (12 U.S.C. 1715z–20(g)) is amended by
striking ‘‘September 30, 1995’’ and inserting ‘‘September
30, 1996’’.
SEC. 404. MULTIFAMILY HOUSING FINANCING PROGRAMS.
(a) FUNDING.—
(1) RISK-SHARING
PILOT
PROGRAM.—Section
542(b)(5) of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1707 note) is amended
by striking ‘‘fiscal years 1993 and 1994’’ and insert-
ing ‘‘fiscal years 1995 and 1996’’.
(2) HOUSING
FINANCE
AGENCY
PILOT
PRO-
GRAM.—Section 542(c)(4) of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 1707
note) is amended by striking ‘‘30,000 units over fis-
135
cal years 1993, 1994, and 1995’’ and inserting
‘‘10,000 units in fiscal year 1996’’.
(b) AMENDMENTS TO RISK-SHARING PILOT PRO-
GRAM.—Section 542(b) of the Housing and Community
Development Act of 1992 (12 U.S.C. 1707 note) is
amended—
(1) by striking paragraphs (1) and (2) and in-
serting the following new paragraphs:
‘‘(1) IN GENERAL.—The Secretary shall carry
out a pilot program in conjunction with qualified
participating entities to determine the effectiveness
of Federal credit enhancement for loans for afford-
able multifamily housing through a system of risk-
sharing agreements with such entitled.
‘‘(2) PROGRAM REQUIREMENTS.—
‘‘(A) IN GENERAL.—In carrying out the
pilot program under this subsection, the Sec-
retary shall enter into risk-sharing agreements
with qualified participating entities.
‘‘(B) MORTGAGE
INSURANCE
AND
REIN-
SURANCE.—Agreements under subparagraph
(A) may provide for (i) insurance through the
Federal Housing Administration of loans for af-
fordable multifamily housing originated by or
through, or purchased by, qualified participat-
136
ing entities, and (ii) reinsurance, including rein-
surance of pools of loans, on affordable multi-
family housing. In entering into risk-sharing
agreements under this subsection covering
mortgages, the Secretary may give preference to
mortgages that are not already in the portfolios
of qualified participating entities.
‘‘(C) RISK APPORTIONMENT.—Agreements
entered into under this subsection between the
Secretary and a qualified participating entity
shall specify the percentage of loss that each of
the parties to the agreement will assume in the
event of default of the insured or reinsured
multifamily mortgage. Such agreements shall
specify that the qualified participating entity
and the Secretary shall share any loss in ac-
cordance with the risk-sharing agreement.
‘‘(D) REIMBURSEMENT CAPACITY.—Agree-
ments entered into under this subsection be-
tween the Secretary and a qualified participat-
ing entity shall provide evidence acceptable to
the Secretary of the capacity of such entity to
fulfill any reimbursement obligations made pur-
suant to this subsection. Evidence of such ca-
137
pacity which may be considered by the Sec-
retary may include—
‘‘(i) a pledge of the full faith and
credit of a qualified participating entity to
fulfill any obligations entered into by the
entity;
‘‘(ii) reserves pledged or otherwise re-
stricted by the qualified participating en-
tity in an amount equal to an agreed upon
percentage of the loss assumed by the en-
tity under subparagraph (C);
‘‘(iii) funds pledged through a State
or local guarantee fund; or
‘‘(iv) any other form of evidence mu-
tually agreed upon by the Secretary and
the qualified participating entity.
‘‘(E) UNDERWRITING
STANDARDS.—The
Secretary shall allow any qualified participating
entity to use its own underwriting standards
and loan terms and conditions for purposes of
underwriting loans to be insured under this
subsection, except as provided in this section,
without further review by the Secretary, except
that the Secretary may impose additional un-
derwriting criteria and loan terms and condi-
138
tions for contractual agreements where the Sec-
retary retains more than 50 percent of the risk
of loss. Any financing permitted on property in-
sured under this subsection other than the first
mortgage shall be expressly subordinate to the
insured mortgage.
‘‘(F) AUTHORITY
OF
SECRETARY.—The
Secretary, upon request of a qualified partici-
pating entity, may insure or reinsure and make
commitments to insure or reinsure under this
section any mortgage, advance, loan, or pool of
mortgages otherwise eligible under this section,
pursuant to a risk-sharing agreement providing
that the qualified participating entity will carry
out (under a delegation or otherwise, and with
or without compensation, but subject to audit,
exception, or review requirements) such credit
approval, appraisal, inspection, issuance of com-
mitments, approval of insurance of advances,
cost certification, servicing, property disposi-
tion, or other functions as the Secretary shall
approve as consistent with the purpose of this
section. All appraisals of property for mortgage
insurance under this section shall be completed
by a Certified General Appraiser in accordance
139
with the Uniform Standards of Professional Ap-
praisal Practice.
‘‘(G) DISCLOSURE
OF
RECORDS.—Quali-
fied participating entities shall make available
to the Secretary or the Secretary’s designee, at
the Secretary’s request, such financial and
other records as the Secretary deems necessary
for purposes of review and monitoring for the
program under this section.
‘‘(H) INELIGIBILITY
OF
HOUSING
FOR
TRANSIENT
OR
HOTEL
PURPOSES.—Notwith-
standing any other provision of this section, no
new, existing, or rehabilitated multifamily hous-
ing with respect to which a mortgage is insured
or reinsured under this subsection shall be op-
erated for transient or hotel purposes. For pur-
poses of this paragraph, the term ‘rental for
transient or hotel purposes’ shall have such
meaning as prescribed by the Secretary, except
that rental for any period less than 30 days
shall constitute rental for such purposes.’’;
(2) in paragraph (4), by striking ‘‘financial in-
stitutions and entities to be eligible to enter into re-
insurance agreements’’ and inserting ‘‘eligibility