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on behalf of families eligible under
subparagraph (B); and
‘‘(II) to provide for the termi-
nation of the tenancy of any family
assisted under this paragraph from
the dwelling unit in which the family
is residing so that such assistance
may be utilized.
‘‘(E) PHA ACTIONS.—Each public housing
agency approved by the Secretary under sub-
paragraph (C) shall—
‘‘(i) periodically notify Federal, State,
and local law enforcement agencies in the
area of jurisdiction of the public housing
agency of the availability of assistance
under this paragraph;
‘‘(ii) take such actions as may be ap-
propriate to inform residents of public
housing projects administered by the agen-
cy and dwelling units assisted under this
section by the agency of the availability of
such assistance; and
‘‘(iii) coordinate with such law en-
forcement agencies to promptly inform the
public housing agency and the Secretary of
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any determination that assistance under
this paragraph is appropriate for a family,
except that such coordination shall be sub-
ject to the procedures established under
subparagraph (F)(iii) to ensure confiden-
tiality.
‘‘(F) NOTICE
AND
CONFIDENTIALITY.—
The Secretary shall—
‘‘(i) periodically notify public housing
agencies of the availability of assistance
under this paragraph;
‘‘(ii) encourage public housing agen-
cies to cooperate and coordinate with law
enforcement agencies to encourage resi-
dents of public housing projects and dwell-
ing units assisted under this section to
provide information to law enforcement
agencies regarding criminal activity; and
‘‘(iii) develop and implement proce-
dures to ensure the confidentiality of the
identity and new location of any family as-
sisted under this paragraph.
‘‘(G) OTHER ASSISTANCE.—A public hous-
ing agency that provides assistance under sub-
paragraph (A) for a family and the law enforce-
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ment agency involved shall ensure that the fam-
ily is provided access to other assistance and
services appropriate to ensure that the reloca-
tion of the family to the dwelling unit assisted
under subparagraph (A) and the neighborhood
of such dwelling unit occurs with the minimum
possible amount of disruption to the life of the
family.
‘‘(H) LIABILITY.—The United States, and
its officers and employees, shall not be subject
to any civil liability on account of any decision
to provide or not to provide protection under
this paragraph.
‘‘(r) RENEWAL OF EXPIRING CONTRACTS.—
‘‘(1) 5-YEAR PLAN.—Not later than 30 days
after the beginning of each fiscal year, the Secretary
shall publish in the Federal Register a plan for re-
ducing, to the extent feasible, year-to-year fluctua-
tions 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 enactment 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 au-
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thorized to enter into annual contributions contracts
with terms of less than 60 months.
‘‘(2) NEW
CONSTRUCTION
AND
SUBSTANTIAL
REHABILITATION
PROJECTS.—Subject only to the
availability of budget authority to carry out this
paragraph and to the absence of owners agreeing to
enter into new contracts, the Secretary shall enter
into new contracts under subtitle D of title I of the
Housing and Community Development Act of 1994
to provide project-based assistance for qualified
housing (as such term is defined in section 163 of
such subtitle) to owners of such housing.
‘‘(s) GENERAL PROVISIONS.—
‘‘(1) 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.
‘‘(2) HOUSING
COUNSELING
FOR
RENTAL
CHOICE.—Each public housing agency that provides
rental housing assistance under this section on be-
half of low-income families shall notify such assisted
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families of the availability of any entity in the juris-
diction of the agency providing rental housing coun-
seling under section 106(a)(4) of the Housing and
Urban Development Act of 1968.
‘‘(t) HOMEOWNERSHIP OPTION.—A public housing
agency providing assistance under this section may, at the
option of the agency, provide assistance for homeowner-
ship under this subsection as follows:
‘‘(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 fair market rent-
al for the area established under subsection
(e)(1) (or such other amount as may be estab-
lished by the Secretary);
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‘‘(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
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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-
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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)(5) of this section.
‘‘(B) Any other provisions of this section
governing maximum amounts payable to owners
and amounts payable by assisted families.
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‘‘(C) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
‘‘(D) 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
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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
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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,
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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
itself.
‘‘(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.
‘‘(7) PROJECT-BASED ASSISTANCE.—The term
‘project-based assistance’ means rental assistance
under this section that is attached to a structure
pursuant to subsection (i).
‘‘(8) RENT.—The terms ‘rent’ and ‘rental’ in-
clude, with respect to members of a cooperative, the
charges under the occupancy agreements between
such members and the cooperative.
‘‘(9) RENTAL ASSISTANCE.—The term ‘rental
assistance’ means assistance provided under this sec-
tion on behalf of low-income families for the rental
of a dwelling unit.
‘‘(10) TENANT-BASED ASSISTANCE.—The term
‘tenant-based assistance’ means rental assistance
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under this section that is not project-based assist-
ance.’’.
(b) 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) or paying rent under section 8(f)(2))’’;
(B) in section 5 (42 U.S.C. 1437c)—
(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’’;
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(D) 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’’;
(E) 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’’; and
(II) in paragraph (4), by striking
‘‘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’’;
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(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) 
ALLOCATION
OF
ASSISTED
HOUSING
FUNDS.—Section 213 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 1439) is
amended—
(A) in subsection (d)—
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(i) in paragraph (1)(A)(ii), by striking
‘‘section 8(b)(1)’’ each place it appears and
inserting ‘‘section 8’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 8(d)’’ and inserting ‘‘section 8(i)’’;
(B) in subsection (e), by striking ‘‘section
8(b)(1)’’ and inserting ‘‘section 8’’.
(3) SUPPORTIVE HOUSING FOR ELDERLY FAMI-
LIES.—Section 801(d)(1)(B) of the Cranston-Gon-
zalez National Affordable Housing Act (12 U.S.C.
1701q note) is amended by striking ‘‘section
8(c)(1)’’ and inserting ‘‘section 8(e)’’.
(4) 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 1,500 incremental vouch-
ers and certificates under sections 8(b) and
8(o) of the United States Housing Act of
1937’’ and inserting ‘‘incremental assist-
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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’’.
(5) REVISED
CONGREGATE
HOUSING
SERV-
ICES.—Section 802(k)(6)(B) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
8011(k)(6)(B)) is amended by striking ‘‘subsection
(d)(2)’’ and inserting ‘‘subsection (i)’’.
(6) HOUSING FOR PERSONS WITH AIDS.—Sub-
title D of title VIII of the Cranston-Gonzalez Na-
tional Affordable Housing Act is amended—
(A) in section 859(a)(2) (42 U.S.C.
12908(a)(2)) by striking ‘‘section 8(p)’’ each
place 
it 
appears 
and 
inserting 
‘‘section
8(m)(1)’’; and
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(B) 
in 
section 
860(a) 
(42 
U.S.C.
12909(a)), by striking ‘‘section 8(n)’’ and in-
serting ‘‘section 8(l)’’.
(7) 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 (pursuant to section
289(b)(2) of the Cranston-Gonzalez National
Affordable Housing Act) immediately before the
enactment of the Housing and Community De-
velopment Act of 1994.’’.
(8) FLEXIBLE
SUBSIDY
PROGRAM.—Section
201 of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z–1a) is
amended—
(A) in subsection (m)(2)(A), by striking
‘‘section 8(b)(1)’’ and inserting ‘‘section 8’’;
and
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(B) in subsection (o), by striking ‘‘section
8(v)’’ and inserting ‘‘section 8(q)(2)’’.
(9) HUD-OWNED
PROJECTS.—Section 203 of
the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1701z–11) is amended—
(A) in subsection (e)(1)(D)—
(i) in clause (i)(IV), by inserting be-
fore the semicolon the following: ‘‘, as such
section was in effect (pursuant to section
289(b)(2) of the Cranston-Gonzalez Na-
tional Affordable Housing Act) imme-
diately before the enactment of the Hous-
ing and Community Development Act of
1994’’; and
(ii) in clause (ii), by striking ‘‘section
8(b)’’ and inserting ‘‘section 8’’;
(B) in subsection (g)(2), by striking ‘‘,
8(d)(1)(A)(i), and 8(o)(3)(B)’’ and inserting ‘‘
and 8(h)(2)(iii)’’; and
(C) in subsection (h)(2), by striking ‘‘sec-
tion 8(c)’’ and inserting ‘‘section 8(e)’’.
(10) HOUSING
ACCESS.—Section 204 of the
Housing and Community Development Amendments
of 1978 (12 U.S.C. 1701z–12) is amended by strik-
ing ‘‘to a holder of a certificate of eligibility under
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that section solely because of such prospective ten-
ant’s status as a certificate holder’’ and inserting
‘‘to a family that is approved for assistance under
such section solely because of such the family’s sta-
tus as assisted under such section’’.
(11) ELIHPA OF 1987.—The references in sec-
tions 225(b)(3)(D), 226(a)(3), and 228(a)(4) of the
Emergency Low Income Housing Preservation Act
of 1987 (as in effect immediately before the enact-
ment of the Cranston-Gonzalez National Affordable
Housing Act) to section 8(b) of the United States
Housing Act of 1937 shall be considered to refer to
section 8(e) of the United States Housing Act of
1937 (as amended by the Housing and Community
Development Act of 1994).
(12) LIHPRHA OF 1990.—Title II of the Hous-
ing and Community Development Act of 1987 (42
U.S.C. 4101 et seq.) is amended—
(A) in section 215(a)—
(i) in paragraph (1), by striking ‘‘sec-
tion 8(c)’’ and inserting ‘‘section 8(e)’’;
and
(ii) in paragraph (2), by striking ‘‘sec-
tion 
8(c)(1)’’ 
and 
inserting 
‘‘section
8(e)(1)’’;
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(B) in section 220(d)(3)(B), by striking
‘‘section 8(c)’’ and inserting ‘‘section 8(e)’’;
(C) in section 222—
(i) in subsection (a)(2)(D), by striking
‘‘section 8(c)’’ and inserting ‘‘section
8(e)’’; and
(ii) in subsection (d)(2)(C)(i), by
striking ‘‘sections 8(b) and 8(o) of the
United States Housing Act of 1937 (other
than project-based assistance attached to
the housing)’’ and inserting ‘‘tenant-based
assistance under section 8 of the United
States Housing Act of 1937’’;
(D) in section 223(a), by striking ‘‘the cer-
tificate and voucher programs under sections
8(b) and 8(o)’’ and inserting ‘‘section 8’’; and
(E) in section 226(b)(6)(B), by striking
‘‘sections 8(d)(1)(A) and 8(o)(3)’’ and inserting
‘‘section 8(h)(2)’’.
(13) DISASTER RELIEF.—
(A) TENANT-BASED ASSISTANCE.—Section
931 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 1437c note) is
amended—
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(i) in the section heading, by striking
‘‘CERTIFICATES AND VOUCHERS’’ and
inserting 
‘‘TENANT-BASED
ASSIST-
ANCE’’; and
(ii) by striking ‘‘assistance under the
certificate and voucher programs under
sections 8 (b) and (o)’’ and inserting ‘‘ten-
ant-based assistance under section 8’’.
(B) MODERATE REHABILITATION ASSIST-
ANCE.—Section 932 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C.
1437c note) is amended by inserting after
‘‘such Act’’ the following: ‘‘, as such section was
in effect (pursuant to section 289(b)(2) of the
Cranston-Gonzalez National Affordable Hous-
ing Act) immediately before the enactment of
the Housing and Community Development Act
of 1994,’’.
(14) PUBLIC
HOUSING
MINCS
DEMONSTRA-
TION.—Section 522(f)(6)(B) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
1437f note) is amended—
(A) by striking ‘‘assistance under section
8(b)’’ and inserting ‘‘tenant-based assistance
under section 8’’; and
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(B) by striking ‘‘section 8(d)(1)(A)(i)’’ and
inserting ‘‘section 8(h)(2)’’.
(15) PUBLIC HOUSING NEW CONSTRUCTION IN-
COME ELIGIBILITY.—Section 545(c)(2) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437f note) is amended by striking ‘‘section
8(d)(1)(A)(ii)’’ and inserting ‘‘section 8(h)(3)’’.
(16) SECTION
EXCESSIVE
RENT
BURDEN
DATA.—Section 550(b) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 1437f
note) is amended—
(A) in paragraph (1), by striking ‘‘under
the certificate and voucher programs estab-
lished’’ and inserting ‘‘with tenant-based assist-
ance’’;
(B) in the first sentence of paragraph (2),
by striking ‘‘, for each’’ and all that follows
through ‘‘participating in the program’’ and in-
serting ‘‘the percentage of families receiving
tenant-based assistance’’; and
(C) in paragraph (3), by striking ‘‘assist-
ance under the certicate or voucher program’’
and inserting ‘‘tenant-based assistance under
section 8 of the United States Housing Act of
1937’’.
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(17) 
RURAL
HOUSING
PRESERVATION
GRANTS.—Section 533(a) of the Housing Act of
1949 (42 U.S.C. 1490m) is amended by striking
‘‘assistance payments as provided by section 8(o)’’
and inserting ‘‘tenant-based assistance payments
under section 8 (including assistance in accordance
with section 8(f)(2)’’.
(18) FEDERALLY
ASSISTED
HOUSING
OCCU-
PANCY STANDARDS.—Section 643(b)(2) of the Hous-
ing and Community Development Act of 1992 (42
U.S.C. 13603(b)(2)) is amended by striking ‘‘section
8(d)(1)’’ and inserting ‘‘section 8(h)’’.
(19) RESERVATION OF SECTION 8 UNITS FOR
DISABLED FAMILIES.—Section 655 of the Housing
and Community Development Act of 1992 (42
U.S.C. 13615) is amended by striking ‘‘section
8(d)(1)(A)(i) of the United States Housing Act of
1937 and the first sentence of section 8(o)(3)(B) of
such Act’’ and inserting ‘‘section 8(h)(2) of the
United States Housing Act of 1937’’.
(20) GAO REPORT ON LEAD EXPOSURE.—Sec-
tion 1056(a) of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 4855) is amended
by striking ‘‘subsections (b) and (o) of’’.
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(21) NATIONAL HOUSING ACT.—The National
Housing Act is amended—
(A) in section 203(v) (12 U.S.C. 1709(v)),
as added by section 185(c)(1)(B) of the Hous-
ing and Community Development Act of 1992,
by striking ‘‘section 8(y)’’ and inserting ‘‘sec-
tion 8(t)’’; and
(B) in section 236(f)(5)(A)(i) (12 U.S.C.
1715z–1(f)(5)(A)(i)), by striking ‘‘section 8(c)’’
and inserting ‘‘section 8(e)’’.
(c) APPLICABILITY.—The amendments under this
section are made on the date of the enactment of this Act,
but shall apply on and after October 1, 1995, only to as-
sistance under section 8 of the United States Housing Act
of 1937 provided pursuant to an assistance contract en-
tered into or renewed on or after such date. Any such as-
sistance provided pursuant to an assistance contract en-
tered into before such date shall be subject to the provi-
sions of such section 8 as in effect immediately before the
enactment of this Act or otherwise applicable to such as-
sistance.
(d) TRANSITION.—
(1) CONVERSION.—The Secretary may provide
for the conversion of assistance under the certificate
and voucher programs, as such programs existed be-
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fore the date of the enactment of this Act, to the
certificate program established under the amend-
ments under this section.
(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
amendments under this section.
(e) REGULATIONS.—The Secretary shall implement
the amendments under this section by regulation issued
after notice and opportunity for public comment.
SEC. 143. INCENTIVES TO REFINANCE HIGH INTEREST
MORTGAGES FOR SECTION 8 PROJECTS.
Section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f), as amended by the preceding provi-
sions of this Act, is further amended by adding at the end
the following new subsection:
‘‘(v) REFINANCING INCENTIVE.—For a project that
(1) was constructed, substantially rehabilitated, or mod-
erately rehabilitated under this section, (2) is subject to
an assistance contract under this section, and (3) was sub-
ject to a mortgage that has been refinanced under section
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223(a)(7) or section 223(f) of the National Housing Act
to lower the periodic debt service payments of the owner,
the Secretary may pay the owner the amount of the up
front costs to the owner of refinancing. The Secretary may
make such payments only from savings in the amount of
assistance payments, as determined by the Secretary on
a project-by-project basis and after application of amounts
in accordance with section 1012 of the Stewart B. McKin-
ney Homeless Assistance Amendments Act of 1988, that
result from the refinancing during the first year after the
refinancing.’’.
SEC. 144. DEMONSTRATION PROGRAM FOR USE OF EXCESS
RESIDUAL RECEIPTS.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall carry out a demonstration pro-
gram, in conjunction with State housing agencies, under
which the Secretary, at the request of owners of qualified
projects, makes amounts in the account for residual re-
ceipts or excess amounts for the qualified projects avail-
able for use under model programs to expand the supply
of affordable housing.
(b) LIMITATION.—The Secretary may not make any
amounts available for use under the demonstration pro-
gram under this section from the account of a qualified
project for residual receipts or excess amounts unless the
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amount remaining in the account, together with replace-
ment reserves for the project, is sufficient (in the deter-
mination of the Secretary) to maintain, manage, and pre-
serve the project as affordable housing.
(c) QUALIFIED PROJECTS.—For purposes of this sec-
tion, the term ‘‘qualified project’’ means a housing
project—
(1) assisted with project-based assistance under
section 8 of the United States Housing Act of 1937;
or
(2) constructed or substantially rehabilitated
pursuant to assistance provided under section
8(b)(2) of the United States Housing Act of 1937,
as such section existed before November 30, 1983.
SEC. 145. TREATMENT OF CERTAIN PROJECTS.
(a) CONVERSION OF SECTION 23 PROJECT.—From
amounts available for the conversion of the Tamaqua
Highrise project in the Borough of Tamaqua, Pennsylva-
nia, from a leased housing contract under section 23 of
the United States Housing Act of 1937 to tenant-based
assistance under section 8 of such Act, the Secretary of
Housing and Urban Development shall, to the extent such
amounts are made available in appropriation Acts, enter
into an obligation for the conversion of the project to a
project-based rental assistance contract under section 8 of
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such Act, notwithstanding the requirement for rehabilita-
tion or the percentage limitations under section 8(d)(2)
of such Act (as in effect before the date of the enactment
of this Act) and subparagraph (A) of section 8(i)(2) of
such Act (as amended by section 143 of this Act).
(b) COMPLIANCE WITH REHABILITATION REQUIRE-
MENT.—Rehabilitation activities undertaken by E.T.C.
Enterprises in connection with 16 scattered-site dwelling
units that were rehabilitated to provide housing for low-
income families and are located in Perth Amboy, New Jer-
sey, and rehabilitation activities undertaken by Pennrose
Properties in connection with 40 dwelling units for senior
citizens in the Providence Square development located in
New Brunswick, New Jersey, are hereby deemed to have
been conducted pursuant to the approval of and an agree-
ment with the Secretary of Housing and Urban Develop-
ment under clauses (i) and (ii) of the third sentence of
section 8(d)(2)(A) of the United States Housing Act of
1937 (as in effect before the date of the enactment of this
Act) and subparagraph (A) of section 8(i)(2) of such Act
(as amended by section 143 of this Act).
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SEC. 146. STUDY OF EXTENT OF NONPARTICIPATION OF
OWNERS AND LANDLORDS IN SECTION 8
RENTAL ASSISTANCE PROGRAM.
The Secretary of Housing and Urban Development
shall conduct a study—
(1) to determine the extent to which the re-
quirements of section 8(p)(2) of the United States
Housing Act of 1937 (as amended by this Act) and
section 8(t) of such Act (as in effect before the en-
actment of this Act) cause owners of multifamily
rental housing to abstain from entering into con-
tracts for housing assistance payments under such
section; and
(2) to identify other factors causing owners of
such housing to abstain from entering into such con-
tracts.
In conducting the study, the Secretary shall consult a sig-
nificant number of owners in a wide range of areas. The
Secretary shall submit a report to the Congress describing
the results of the study not later than February 1, 1996.
SEC. 147. STUDY OF SECTION 8 HOUSING QUALITY STAND-
ARDS.
The Secretary of Housing and Urban Development
shall conduct a study of the existing standards for housing
quality for dwelling units assisted under the program for
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rental assistance under section 8 of the United States
Housing Act of 1937. The study shall determine—
(1) whether the standards are effective in en-
suring decent, safe, and sanitary housing;
(2) how, and the extent to which, the standards
are enforced; and
(3) how the standards or the enforcement of the
standards may be improved.
The Secretary shall submit a report to the Congress
not later than 2 years after the date of the enactment of
this Act describing the results of the study and containing
any recommendations of the Secretary to carry out para-
graph (3).
Subtitle D—Renewal of Expiring
Contracts for Section 8 New
Construction 
and 
Substantial
Rehabilitation Projects
SEC. 151. FINDINGS AND PURPOSE.
(a) CONGRESSIONAL FINDINGS.—The Congress finds
that—
(1) housing built or substantially rehabilitated
pursuant to section 8 of the United States Housing
Act of 1937 is an important national resource that
has provided decent, safe, and affordable housing to
hundreds of thousands of low-income families who
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otherwise would not have obtained affordable hous-
ing;
(2) the Federal Government is the steward of
this assisted housing stock and has an affirmative
obligation to preserve it as housing for low-income
families, consistent with considerations of fairness to
all interested parties, including owners, residents,
property managers, the community in which the
housing is located, and taxpayers;
(3) because section 8(e)(1) of the United States
Housing Act of 1937 (as in effect prior to November
30, 1983) provided, for the most part, that contracts
to make assistance payments to owners of newly
constructed or substantially rehabilitated housing fi-
nanced with assistance of a loan made by, or in-
sured, guaranteed or intended for purchase by the
Federal Government, other than pursuant to section
244 of the National Housing Act, could not exceed
20 years and because such housing was constructed
or substantially rehabilitated during the period from
1975 to 1985, a substantial number of contracts
that provide for such assistance will soon expire
(with other housing constructed or substantially re-
habilitated pursuant to such section of law sup-
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ported through housing assistance contracts of
longer duration, which will expire at a later time);
(4) failure to enter into new housing assistance
contracts under equitable and financially sound
terms and conditions will reduce the supply of de-
cent, safe, and affordable housing for low-income
Americans, while the demonstrated need for such
housing remains great;
(5) in order for the urban and rural population
centers of the United States to regain their viability,
the housing stock in such population centers must
be preserved, which includes preserving housing built
or substantially rehabilitated under section 8 of the
United States Housing Act of 1937;
(6) assisted housing projects located in areas of
relative affluence can promote racial, social, and eco-
nomic integration, and such projects should be main-
tained as part of the affordable housing inventory to
the maximum extent practicable;
(7) the number of units of housing currently re-
ceiving project-based section 8 assistance should not
be reduced as a result of the expiration of any cur-
rent contracts; and
(8) the number of households currently assisted
by reason of residence in housing projects receiving
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project-based section 8 assistance should not be re-
duced as a result of the expiration of any current
contracts to provide project-based assistance, though
some of the specific families currently living in such
housing may either receive such assistance in an-
other location or become recipients of tenant-based
assistance under appropriate circumstances (with
the preference, as a matter of public policy, to the
continued assistance of such households through
project-based assistance).
(b) PURPOSE.—It is the purpose of this subtitle to
provide for the preservation of affordable housing con-
structed or substantially rehabilitated pursuant to section
8 of the United States Housing Act of 1937, and to pro-
vide affordable housing opportunities for at least the same
number of families as are provided such housing by reason
of their residence in housing projects receiving project-
based assistance under such section, in a manner that is
administratively efficient, cost-effective, and fair to all in-
terested parties, including owners, residents, property
managers and the communities in which the housing is
located.
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SEC. 152. NOTICES OF CONTRACT EXPIRATION AND INTEN-
TION TO RENEW.
(a) NOTICE TO OWNER.—Not later than 27 months
before the date of expiration of an expiring contract (or,
in the case of a qualified project subject to an expiring
contract for which the date of expiration occurs less than
27 months after the date of the enactment of this Act,
not later than 6 months after the date of enactment of
this Act), the Secretary shall notify the owner of the quali-
fied project, in writing, that the owner has an affirmative
obligation pursuant to subsection (b).
(b) NOTICE BY OWNER TO SECRETARY.—Not later
than 24 months before the date of expiration of an expir-
ing contract (or, in the case of a qualified project subject
to an expiring contract for which the date of expiration
occurs less than 27 months after the date of the enact-
ment of this Act, not later than 9 months after the date
of enactment of this Act), the owner of the qualified
project shall simultaneously—
(1) submit to the Secretary written notice stat-
ing whether or not the owner intends to enter into
a new contract pursuant to this subtitle for project-
based assistance for the qualified project; and
(2) submit a copy of the notice to the chief ex-
ecutive officer of the State or unit of general local
government for the jurisdiction within which the
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project is located, any mortgagee of the project, the
tenants of the project (including any resident council
for the project), and such other individuals or enti-
ties as the Secretary may require.
(c) SUBMISSION OF PROPOSAL TO ENTER INTO NEW
CONTRACT.—If in the notice required by subsection (b)
the owner indicates an intention to enter into a new con-
tract for assistance for the qualified project, not later than
3 months after submitting such notice to the Secretary,
the owner shall simultaneously—
(1) submit to the Secretary a proposal specify-
ing terms and conditions for the new contract, which
shall comply with the requirements for new contracts
under this subtitle; and
(2) submit a copy of the notice to the chief ex-
ecutive officer of the State or unit of general local
government for the jurisdiction within which the
project is located, any mortgagee of the project, the
tenants of the project (including any resident council
for the project), and such other individuals or enti-
ties as the Secretary may require.
(d) CAPITAL NEEDS ASSESSMENT.—
(1) REQUIREMENT.—Within a reasonable pe-
riod of time after receiving a proposal under sub-
section (c) to enter into a new contract for a quali-
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fied project, the Secretary shall conduct a com-
prehensive assessment of the needs of the project to
determine the rehabilitation needs and replacement
reserves necessary to preserve the project during the
ensuing 10-year period.
(2) CONTENT.—The assessment shall obtain
the same information regarding the qualified project
that is required to be contained in a comprehensive
needs assessment under section 403 of the Housing
and Community Development Act of 1992 for a cov-
ered multifamily housing property subject to title IV
of such Act, shall assess the management perform-
ance for the project, and shall obtain any other in-
formation as the Secretary considers appropriate for
purposes of this subtitle regarding the project, ten-
ants, and market area in which the project is lo-
cated.
(e) TENANT AND COMMUNITY PARTICIPATION.—
(1) ESTABLISHMENT
OF
PROCEDURES.—The
Secretary shall establish procedures that provide an
opportunity for tenants of a qualified project (in-
cluding any resident council) and other affected par-
ties to participate effectively in the process estab-
lished under this section and section 153 to deter-
mine whether and under what terms and conditions
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a new contract will be provided for the project or
other assistance will be made available.
(2) CONTENT
OF
PROCEDURES.—The proce-
dures established under this subsection shall include
providing timely and adequate written notice of the
proposed decisions of the owner and the Secretary
regarding the qualified project, timely access to all
relevant information (not including information de-
termined to be proprietary under standards estab-
lished by the Secretary), an adequate period to ana-
lyze such information and submit comments to the
Secretary (which the Secretary shall take into con-
sideration in carrying out this subtitle), and, if re-
quested, arranging meetings with representatives of
the Secretary and the owner.
(3) APPLICABILITY.—The procedures estab-
lished under this subsection shall provide for the
participation of tenants of a qualified project and
other affected parties in at least the following ac-
tions:
(A) Physical inspection of the qualified
property under section 155(b) and determina-
tion of capital needs of a property pursuant to
subsection (d).
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(B) Any determination under section 154
regarding the owner of the project.
(C) Review of notice and any proposal sub-
mitted by the owner under subsections (b) and
(c) of this section.
(D) Determination of the response of the
Secretary under section 153.
(E) Determination of the terms of any new
contract for the project.
(F) Establishing and carrying out any plan
for sale of the project under section 157(c)(1).
(G) Establishing and carrying out of any
plan to provide assistance under subsection (d)
or (e) of section 157.
(4) MINIMUM PERIOD FOR TENANT NOTIFICA-
TION.—The Secretary shall notify tenants of a quali-
fied project of any agreement to enter into a new
contract for the project or of the failure to enter into
a new contract for the project, as the case may be,
not less than 12 months before the expiration of ex-
piring contract. If, in the case of a failure to enter
into a new contract for a qualified project, the Sec-
retary fails to comply with the requirement under
the preceding sentence, the Secretary shall (subject
only to the availability of budget authority) provide
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such additional assistance as may be necessary to
extend the contract for such 12-month period.
SEC. 153. SECRETARY’S RESPONSE TO OWNER’S PROPOSAL.
(a) REQUIREMENT.—Except in the case of an owner
who submits a notice under section 152(b) stating an in-
tention not to enter into a new contract and in the case
of rejection of an owner’s proposal under subsection (c),
not later than 90 days after an owner submits a proposal
under section 152(c) for a qualified project (or not later
than 30 days after the expiration of the period under sec-
tion 152(b), in the case of an owner failing to provide no-
tice under such subsection), the Secretary shall take action
under subsection (b) to enter into a new contract.
(b) RESPONSE
TO OWNER’S PROPOSAL.—Subject
only to the availability of budget authority, the Secretary
shall take the following actions:
(1) STATUS QUO CONTRACTS.—In the case of a
qualified project for which the maximum monthly
rents for units in the project that are assisted under
the expiring contract do not (24 months before the
date of the expiration of the contract) exceed 110
percent of the fair market rentals for dwelling units
of the applicable sizes and types of dwelling units in
the relevant metropolitan market area and a quali-
fied project for which the owner agrees to reduce the
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maximum monthly rents so that the rents do not ex-
ceed 110 percent of such fair market rentals—
(A) if the owner’s proposal under section
152(c) provides for establishing maximum
monthly rents under the contract for dwelling
units in the project pursuant to the procedure
under section 156(a) and otherwise complies
with the requirements of this subtitle, the Sec-
retary shall agree to the owner’s proposal and
shall enter into a new contract for the project;
and
(B) if the owner’s proposal under section
152(c) does not provide for establishing maxi-
mum monthly rents under the contract for
dwelling units in the project pursuant to the
procedure under section 156(a) or otherwise
fails to comply with the requirements of this
title, or the owner has failed to submit a pro-
posal, the Secretary shall make an offer to
enter into a new contract for the project (by
modifying the owner’s proposal under section
152(c), if the owner has submitted a proposal)
and, if the owner accepts, the Secretary shall
enter into such a new contract for the project.
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The Secretary may not offer or agree to enter into
a new contract for a qualified project, or enter into
such a contract, that establishes maximum monthly
rents under the contract for dwelling units in the
project pursuant to the procedure under section
156(a) unless the maximum monthly rents under the
expiring contract for the project meet the require-
ments of the matter in this paragraph preceding
subparagraph (A).
(2) BUDGET-BASED CONTRACTS.—In the case
of a qualified project for which the maximum month-
ly rents for units in the project that are assisted
under the expiring contract (24 months before the
date of the expiration of the contract) exceed 110
percent of the fair market rentals for dwelling units
of the applicable sizes and types of dwelling units in
the relevant metropolitan market area—
(A) if the owner’s proposal under section
152(c) provides for establishing maximum
monthly rents under the contract for dwelling
units in the project pursuant to the procedure
under section 156(b) and otherwise complies
with the requirements of this subtitle, the Sec-
retary shall agree to the owner’s proposal under