Gonzalez National Affordable Housing Act,
or other programs for homeownership that
have program requirements substantially
equivalent to the requirements established
under section 605 of the Housing and
Community Development Act of 1987;
‘‘(v) affordable housing homeowner-
ship units assisted under title II of the
Cranston-Gonzalez 
National 
Affordable
Housing Act and sold to public housing
residents;
‘‘(vi) rental units that are (I) assisted
under title II of the Cranston-Gonzalez
National Affordable Housing Act (notwith-
standing section 212(d)(2) of such Act), or
(II) assisted under a State or local rental
assistance program that provides for rental
assistance over a term of not less than 15
years that is comparable in terms of eligi-
bility and contribution to rent to assistance
under section 8, except that this subclause
shall only apply in cases provided under
subparagraph (C);
‘‘(vii) housing assisted by a tax credit
under section 42 of the Internal Revenue
Code;
‘‘(viii) housing acquired from the Res-
olution Trust Corporation or the Federal
Deposit Insurance Corporation;
‘‘(ix) housing acquired under section
203 of the Housing and Community Devel-
opment Amendments of 1978;
‘‘(x) other manners approved by the
Secretary; or
‘‘(xi) any combination of such meth-
ods;
‘‘(B) in the case of an application propos-
ing demolition or disposition of 200 or more
units, shall provide that—
‘‘(i) not less than 50 percent of such
additional dwelling units shall be provided
through the acquisition or development of
additional 
dwelling 
units 
or 
through
project-based assistance; and
‘‘(ii) not more than 50 percent of such
additional dwelling units shall be provided
through tenant-based assistance under sec-
tion 8 having a term of not less than 5
years;
‘‘(C) if it provides for the use of tenant-
based assistance provided under section 8 or
otherwise, may be approved—
‘‘(i) only after a finding by the Sec-
retary that replacement with project-based
assistance is not feasible, and the supply of
decent, safe, and sanitary rental housing
available at a rental charge not greater
than the applicable fair market rent under
section 8 is sufficient to meet the needs of
those who would receive such assistance
under the plan; and
‘‘(ii) only if such finding is based on
objective information, which shall include
rates of participation by landlords and ten-
ants in the section 8 program in the com-
munity, and the number of eligible families
in the community waiting for public hous-
ing or housing assistance under section 8
and the length of their wait;
‘‘(D) may provide that all or part of such
additional dwelling units may be located outside
the jurisdiction of the public housing agency (in
this subparagraph referred to as the ‘original
agency’) if—
‘‘(i) the location is in the same hous-
ing market area as the original agency, as
determined by the Secretary; and
‘‘(ii) the plan contains an agreement
between the original agency and the public
housing agency in the alternate location or
other public or private entity that will be
responsible for providing the additional
units in the alternate location that such al-
ternate agency or entity will, with respect
to the dwelling units involved—
‘‘(I) provide the dwelling units in
accordance with subparagraph (A);
‘‘(II) complete the plan on sched-
ule in accordance with subparagraph
(F);
‘‘(III) meet the requirements of
subparagraph (G) of this paragraph
and the maximum rent provisions of
subparagraph (H);
‘‘(IV) not impose a local resi-
dency preference on any resident of
the jurisdiction of the original agency
for purposes of admission to any such
units; and
‘‘(V) allow that preference for ad-
mission to any such additional units
may be provided to residents of the
severely distressed public housing
dwelling units replaced under this
subparagraph pursuant to section 24;
‘‘(E) includes a schedule for completing
the plan within a period consistent with the size
of the proposed demolition or disposition and
replacement plan, which—
‘‘(i) shall not exceed 6 years, except
that the Secretary may extend the schedule
to not more than 10 years if the Secretary
determines, 12 months prior to the expira-
tion of the scheduled completion date, that
good cause exists to extend the implemen-
tation of the replacement plan under this
subsection; and
‘‘(ii) can occur in phases necessary to
provide for relocation of tenants under
paragraph (2);
‘‘(F) includes a method of ensuring that
the same number of individuals and families
will be provided housing;
‘‘(G) provides for the payment of the relo-
cation expenses of each tenant to be displaced
and ensures that the rent paid by the tenant
following relocation will not exceed the amount
permitted under this Act;
‘‘(H) prevents the taking of any action to
demolish or dispose of any unit until the tenant
of the unit is relocated to decent, safe, sanitary,
and affordable housing; and
‘‘(I) permits the Secretary to intervene and
take any actions necessary to complete the plan
if the public housing agency fails, without good
cause, to carry out its obligations under the
plan.
‘‘(c) LIMITATION
ON DEMOLITION
AND EXEMP-
TION.—
‘‘(1) MAXIMUM
PERCENTAGE.—Notwithstand-
ing any other provision of this section, in any 5-year
period a public housing agency may demolish not
more than the lesser of 5 dwelling units or 5 percent
of the total dwelling units owned and operated by
the public housing agency, without providing an ad-
ditional dwelling unit for each such public housing
dwelling unit to be demolished, but only if the space
occupied by the demolished unit is used for meeting
the service or other needs of public housing resi-
dents.
‘‘(2) SITE
AND
NEIGHBORHOOD
STANDARDS
EXEMPTION.—Notwithstanding any other provision
of law, a replacement plan under subsection (b)(3)
may provide for demolition of public housing units
and replacement of such units on site or in the same
neighborhood if the number of replacement units
provided in the same neighborhood is fewer than the
number of units demolished and the balance of re-
placement units are provided elsewhere in the juris-
diction or pursuant to subsection (b)(3)(D).
‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With
respect to any dwelling units developed, acquired, or leased
by a public housing agency pursuant to a replacement plan
under subsection (b)(3)—
‘‘(1) assistance may be provided under section
9 for such units; and
‘‘(2) such units shall be available for occupancy,
operated and managed in the manner required for
public housing, and shall be subject to the other re-
quirements applicable to public housing dwelling
units.
‘‘(e) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall notify
a public housing agency submitting an application
under this section for demolition or disposition and
replacement of a public housing project or portion of
a project of the approval or disapproval of the appli-
cation not later than 60 days after receiving the ap-
plication. If the Secretary does not notify the public
housing agency as required under this paragraph or
paragraph (2), the application shall be considered to
have been approved.
‘‘(2) DISAPPROVAL AND RESUBMISSION.—If the
Secretary disapproves an application, the Secretary
shall specify in the notice of disapproval the reasons
for the disapproval and the agency may resubmit the
application as amended or modified.
‘‘(3) HUD RESOURCES.—The Secretary shall,
upon approving a plan under subsection (b)(3) for
replacement housing units and units assisted under
section 8, agree to commit (subject to the availabil-
ity of future appropriations) the funds necessary to
carry out the plan over the approved schedule of the
plan. As part of each annual budget request for the
Department of Housing and Urban Development,
the Secretary shall submit to the Congress a re-
port—
‘‘(A) outlining the commitments the Sec-
retary entered into during the preceding year to
fund plans approved under subsection (b)(3);
‘‘(B) specifying, by fiscal year, the budget
authority required to carry out the commit-
ments specified in subparagraph (A);
‘‘(C) describing, for the preceding fiscal
year, by locality, project name, and number of
units—
‘‘(i) the applications approved;
‘‘(ii) the applications not approved;
‘‘(iii) waiver applications approved;
‘‘(iv) waiver applications default ap-
proved; and
‘‘(v) waiver applications denied; and
‘‘(D) describing by locality, project name,
and program, the number of replacement units
approved and funded.
‘‘(f) ACTION BEFORE APPROVAL OF APPLICATION.—
‘‘(1) PROHIBITED ACTION.—A public housing
agency shall not take any action to demolish or dis-
pose of a public housing project or a portion of a
public housing project without obtaining the ap-
proval of the Secretary and satisfying the conditions
specified in subsections (a) and (b).
‘‘(2) 
ALLOWABLE
RELOCATION.—A 
public
housing agency may relocate tenants of public hous-
ing into other dwelling units after the submission of
an application under this section for demolition or
disposition or prior to implementing an approved
plan for modernization under section 14 or 24, if
units to be demolished or disposed of are not decent,
safe, and sanitary, or if the units to be rehabilitated
can not be maintained cost-effectively in a decent,
safe, and sanitary condition.
‘‘(g) RESERVATION OF SECTION 8 ASSISTANCE.—In
each of fiscal years 1995 and 1996, the Secretary may
reserve from any budget authority appropriated for such
year for assistance under section 8 that is available for
families not currently receiving such assistance not more
than 10 percent of such budget authority for providing
replacement housing under subsection (b)(3)(A) for units
demolished or disposed of pursuant to this section.
‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME-
OWNERSHIP PROGRAM.—The provisions of this section
shall not apply to the disposition of a public housing
project in accordance with an approved homeownership
program under title III of this Act.
‘‘(i) EXCEPTION TO REPLACEMENT RULE.—
‘‘(1) REQUIREMENTS FOR WAIVER.—The Sec-
retary shall waive in whole or in part the applicabil-
ity of the provisions of subsection (b)(3) with respect
to any application under this section by a public
housing agency for the demolition or disposition of
public housing dwelling units if—
‘‘(A) the Secretary determines, based on
information provided by the public housing
agency in the application and the request under
paragraph (2) and taking into consideration the
assessment submitted by the agency under
paragraph (2)(C), that—
‘‘(i) the public housing agency has
made a good faith effort to implement the
replacement plan as approved;
‘‘(ii) sufficient financial assistance is
not, and will not be, available to the public
housing agency or the community to reha-
bilitate or replace all or some of the units;
or
‘‘(iii) 
changed 
circumstances 
and
other affordable housing in the community
have satisfied the replacement housing re-
quired under the plan; and
‘‘(B) the public housing agency requests a
waiver under this subsection in accordance with
the requirements under paragraph (2).
‘‘(2) REQUEST FOR WAIVER.—To be eligible for
a waiver under this subsection, a public housing
agency shall submit to the Secretary a request for
a waiver under this subsection that includes—
‘‘(A) a revised replacement housing plan
that describes additional decent, safe, sanitary,
and affordable dwelling units to be made avail-
able as replacement housing;
‘‘(B) an identification of the replacement
dwelling units for which the waiver is requested
and a justification for why they cannot be pro-
duced; and
‘‘(C) an assessment of the availability of
dwelling units affordable to low-income families
within the housing market area in which the
dwelling units are located, during the imple-
mentation of the replacement plan.
‘‘(3) SUBMISSION TO SECRETARY.—A request
for a waiver under this subsection may be submitted
no earlier than 12 months before the expiration of
the replacement plan completion schedule. The re-
quest shall be submitted to the Secretary by certified
mail or any other equivalent means that provides no-
tification to the public housing agency making the
request of the date of receipt by the Secretary.
‘‘(4) NOTICE OF DISPOSITION OF REQUEST.—
Except as provided in paragraph (5), the Secretary
shall notify a public housing agency requesting a
waiver under this section of the approval or dis-
approval of the request not later than 60 days after
receiving the request. If the Secretary does not no-
tify the public housing agency as required under this
paragraph or paragraph (5), the request for a waiver
shall be considered to have been approved.
‘‘(5) REQUEST
FOR
ADDITIONAL
INFORMA-
TION.—If the Secretary determines that more infor-
mation is needed to make the determinations under
paragraph (1) than has been provided by the public
housing agency, the Secretary shall notify the agen-
cy in writing not later than 30 days after receiving
the request for the waiver that additional informa-
tion is necessary. Such notice shall describe specifi-
cally the additional information required for the de-
terminations and establish a deadline for the sub-
mission of the information by the agency, which
shall be determined based on the difficulty of obtain-
ing the information requested. If the agency submits
such additional information requested before the
deadline established in the notice under this para-
graph, the Secretary shall notify the agency request-
ing the waiver that the request is approved or dis-
approved not later than 30 days after the submis-
sion of such additional information.
‘‘(6) STATEMENT OF REASONS FOR DENYING
OR APPROVING REQUEST.—The Secretary shall in-
clude, in each notice under paragraph (4) or (5) of
the denial or approval of a request for a waiver
under this subsection, the specific reasons for deny-
ing or approving the request. The denial of any re-
quest for a waiver for public housing dwelling units
shall not prejudice the consideration of any other
subsequent request for such a waiver for any of such
dwelling units.’’.
SEC. 112. REVITALIZATION OF SEVERELY DISTRESSED PUB-
LIC HOUSING.
(a) PLANNING GRANTS.—Subsection (c) of section 24
of the United States Housing Act of 1937 (42 U.S.C.
1437v(c)) is amended—
(1) in paragraph (2) by striking ‘‘$200,000’’
and inserting ‘‘$300,000’’;
(2) in paragraph (3)—
(A) in subparagraph (G), by striking ‘‘de-
signing a suitable replacement housing plan’’
and inserting ‘‘designing suitable relocation and
replacement housing plans’’;
(B) by redesignating subparagraphs (E)
through (I) as subparagraphs (F) through (J),
respectively; and
(C) by inserting after subparagraph (D)
the following new subparagraph:
‘‘(E) planning for community service ac-
tivities to be carried out by residents, other
members of the community, and other persons
willing to contribute to the social, economic, or
physical improvement of the community;’’;
(3) in paragraph (4)—
(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) to the extent the applicant is request-
ing amounts for community service planning ac-
tivities, a description of such activities to be
carried out by residents, other members of the
community, and other persons willing to con-
tribute to the social, economic, or physical im-
provement of the community;’’; and
(5) in paragraph (5)—
(A) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
taking into consideration the condition of the
public housing of the public housing agency as
a whole’’;
(B) by striking subparagraph (E); and
(C) by redesignating subparagraphs (F)
and (G) as subparagraphs (E) and (F), respec-
tively.
(b) IMPLEMENTATION GRANTS.—Subsection (d) of
section 24 of the United States Housing Act of 1937 is
amended—
(1) in paragraph (2)—
(A) in subparagraph (I), by striking ‘‘ex-
cept that’’ and all that follows and inserting the
following: ‘‘except that—
‘‘(i) not more than 20 percent of any
grant under this subsection may be used
for such purpose; and
‘‘(ii) an amount equal to 15 percent of
the amount of any grant under this sub-
section used for such purposes shall be
contributed from non-Federal sources, and
may be in the form of cash, administrative
costs, and the reasonable value of in-kind
contributions, and may include funding
under title I of the Housing and Commu-
nity Development Act of 1974.’’;
(B) by redesignating subparagraphs (E)
through (I) (as so amended) as subparagraphs
(G) through (K), respectively; and
(C) by inserting after subparagraph (D)
the following new subparagraphs:
‘‘(E) community service activities to be
carried out by residents, other members of the
community, and other persons willing to con-
tribute to the social, economic, or physical im-
provement of the community;
‘‘(F) replacement of public housing units;’’;
(2) in paragraph (3)—
(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) to the extent the applicant is request-
ing amounts for community service activities, a
description of the community service activities
to be carried out by residents, other members
of the community, and other persons willing to
contribute to the social, economic, or physical
improvement of the community;’’; and
(3) in paragraph (4)—
(A) by striking subparagraph (D) and in-
serting the following new subparagraph:
‘‘(D) the quality of the proposed revitaliza-
tion program and the suitability of the project
for such a program;’’;
(B) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
taking into consideration the condition of the
public housing of the applicant as a whole’’;
and
(C) by striking subparagraph (E); and
(D) by redesignating subparagraphs (F)
and (G) as subparagraphs (E) and (F), respec-
tively.
(c) EXCEPTIONS TO GENERAL PROGRAM REQUIRE-
MENTS.—Section 24(e) of the United States Housing Act
of 1937 is amended—
(1) by striking the first sentence of paragraph
(2) and inserting the following new sentence: ‘‘For
projects revitalized under this section, a public hous-
ing agency may—
‘‘(A) in lieu of selecting tenants pursuant
to the preferences specified under section
6(c)(4)(A)(i), select tenants pursuant to a local
system of preferences;
‘‘(B) in making dwelling units in such
projects available for occupancy, disregard the
order in which applications were made for resi-
dency in public housing dwelling units or any
waiting lists established for such residency to
provide for substantial variation in the incomes
of families residing in the project, subject to the
provisions of this Act relating to income eligi-
bility in public housing projects (as modified
under subparagraph (C));
‘‘(C) notwithstanding section 16 of this
Act, provide for low-income families to occupy
not more than 50 percent of the dwelling units
in a project, and
‘‘(D) establish ceiling rents under section
3(a)(2).’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) DEMOLITION AND REPLACEMENT.—
‘‘(A) IN GENERAL.—Notwithstanding any
other applicable law or regulation, a revitaliza-
tion plan under this section may include demoli-
tion of public housing units and replacement of
such units on site or in the same neighborhood
if the number of replacement units provided in
the same neighborhood is fewer than the num-
ber of units demolished as a result of the revi-
talization effort.
‘‘(B) TENANT-BASED
ASSISTANCE.—Not-
withstanding the limitation in subparagraph (C)
of section 18(b)(3), a public housing agency
may replace not more than one-third of the
units demolished or disposed of through a revi-
talization project under this section with ten-
ant-based assistance under section 8, but only
if the public housing agency demonstrates to
the satisfaction of the Secretary that the local
housing market in which the assistance is to be
used has had a vacancy rate, among units
whose rent does not exceed the fair market
rental for the area established under section
8(e), of more than 3 percent for at least 6 con-
secutive months.
‘‘(C) ADDITIONAL METHODS OF REPLACE-
MENT.—A revitalization plan under this section
may provide for replacement of public housing
units in the manners under subparagraph (D)
of this paragraph in addition to the require-
ments of subparagraph (B) of section 18(b)(3))
if the agency or corporation enters into such
agreements as the Secretary considers nec-
essary to ensure that the replacement units will
remain affordable to families eligible for resi-
dency in public housing for the remaining use-
ful life of the units, as determined by the Sec-
retary.
‘‘(D) CERTIFICATE AND NEW UNIT MIX.—
Each such dwelling unit demolished, disposed
of, or otherwise eliminated pursuant to para-
graph (c) shall be replaced with an additional
dwelling unit through any combination of—
‘‘(i) additional public housing dwelling
units;
‘‘(ii) units or housing described in
clause (iv), (v), (vii), (viii), or (ix) of sec-
tion 18(b)(3)(A);
‘‘(iii) rental units that are (I) assisted
under title II of the Cranston-Gonzalez
National Affordable Housing Act (notwith-
standing section 212(d)(2) of such Act), or
(II) assisted under a State or local rental
assistance program that provides for rental
assistance over a term of not less than 5
years that is comparable in terms of eligi-
bility and contribution to rent to assistance
under section 8; but this clause shall apply
to a revitalization program only if the
agency demonstrates to the satisfaction of
the Secretary that the local housing mar-
ket in which the assistance is to be used
has had a vacancy rate, among units whose
rent does not exceed the fair market rental
for the area established under section 8(e),
of more than 3 percent for at least 6 con-
secutive months; or
‘‘(iv) other manners approved by the
Secretary.’’.
(d) DEFINITIONS.—Subsection (h) of section 24 of
the United States Housing Act of 1937 is amended—
(1) by striking paragraph (5) and inserting the
following new paragraphs:
‘‘(6) SEVERELY
DISTRESSED
PUBLIC
HOUS-
ING.—The term ‘severely distressed public housing’
means a public housing project or building in a
project that—
‘‘(A) requires major redesign, reconstruc-
tion, or redevelopment, or partial or total demo-
lition, to correct serious deficiencies in the
original design (including inappropriately high
population 
density), 
deferred 
maintenance,
physical deterioration or obsolescence of major
systems, and other deficiencies in the physical
plant of the project;
‘‘(B) is—
‘‘(i)(I) occupied predominantly by
families with children which have extremely
low incomes, high rates of unemployment,
and extensive dependency on various forms
of public assistance; and
‘‘(II) has high rates of vandalism and
criminal activity (including drug-related
criminal activity) in comparison to other
housing in the area; or
‘‘(ii) has a vacancy rate, as deter-
mined by the Secretary, of 50 percent or
more;
‘‘(C) can not be revitalized through assist-
ance under other programs, such as the pro-
grams under sections 9 and 14, or through
other administrative means because of the inad-
equacy of available amounts; and
‘‘(D) in the case of an individual building,
the building is (in the determination of the Sec-
retary) sufficiently separable from the remain-
der of the project of which the building is part
to make use of the building feasible for pur-
poses of this section.
‘‘(7) SUPPORT SERVICES.—The term ‘support
services’ includes all activities which will promote
upward mobility, self-sufficiency, and improved qual-
ity of life for the residents of the public housing
project involved, and shall include literacy training,
job training, day care, and economic development ac-
tivities. Support services may be provided to resi-
dents of the neighborhood in which the public hous-
ing project involved is located.’’;
(2) by redesignating paragraphs (2) through
(4) as paragraphs (3) through (5), respectively; and
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) COMMUNITY SERVICE.—The term ‘commu-
nity service’ means services provided on a volunteer
or limited stipend basis for the social, economic, or
physical improvement of the community to be
served, including opportunity for the upward mobil-
ity of participants providing the community service,
through completion of education requirements, job
training, or alternative methods of developing skills
and job readiness.’’.
(e) REPEAL.—Subsections (b) and (i) of section 24
of the United States Housing Act of 1937 are repealed.
(f) APPLICABILITY.—Section 24 of the United States
Housing Act of 1937 is amended by adding at the end
the following new subsection:
‘‘(j) APPLICABILITY.—Notwithstanding any provision
of this Act, with respect to a public housing project that
(1) has been selected for funding under this section 24
or through the urban revitalization demonstration pro-
gram under the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agen-
cies Appropriations Act, 1993 (Public Law 102–389, 106
Stat. 1579; 42 U.S.C. 1437l note) or the Departments of
Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1994
(Public Law 103–124, 107 Stat. 1285; 42 U.S.C. 1437l
note), and (2) has an approved comprehensive plan under
section 14 of this Act, the Secretary may apply any provi-
sion of this section and the regulations hereunder to all
activities undertaken at such projects only during revital-
ization. Such activities may include demolition, moderniza-
tion, reconstruction, site improvement, replacement hous-
ing and operation and management, including funding
under sections 5, 9, and 14.’’.
(g) CONFORMING AMENDMENT.—The first sentence
of section 25(m)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437w(m)(1)) is amended to read as fol-
lows: ‘‘The term ‘eligible housing’ means a public housing
project, or one or more buildings within a project, that
is owned or operated by a troubled public housing agency
that has been troubled for not less than 3 years and that,
as determined by the Secretary, has failed to make sub-
stantial progress toward effective management.’’.
(h) APPLICABILITY
TO CERTAIN PROJECT.—The
amendments made by this section shall apply with respect
to assistance provided before the date of the enactment
of this Act under section 24 of the United States Housing
Act of 1937 for the Desire Housing Development, located
in New Orleans, Louisiana, but only to the extent that
the Housing Authority of New Orleans submits to the Sec-
retary of Housing and Urban Development a description
of the revitalization program for such project describing
the use of such assistance under the provisions of such
section 24, as amended, which is approved by the Sec-
retary.
SEC. 113. APPLICABILITY OF PUBLIC HOUSING AMEND-
MENTS TO INDIAN HOUSING.
(a) AMENDMENT.—Section 201(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437aa(b)) is
amended to read as follows:
‘‘(b) APPLICABILITY OF TITLE I.—Except as other-
wise provided by law, the provisions of title I shall apply
to low-income housing developed or operated pursuant to
a contract between the Secretary and an Indian housing
authority.’’.
(b) APPLICABILITY OF AMENDMENT.—The amend-
ment made by subsection (a) shall not affect provisions
of the United States Housing Act of 1937 that were made
applicable to public housing developed or operated pursu-
ant to a contract between the Secretary and an Indian
housing authority in accordance with section 201(b)(2) of
such Act, as such section existed before the effective date
of this section.
(c) APPLICABILITY OF HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1992.—The provisions of, and the
amendments made by, sections 103(a)(1), 112, 114, 116,
118, 903, and 927 of the Housing and Community Devel-
opment Act of 1992 and sections 301, 302, 303 and 304
of the Multifamily Housing Property Disposition Reform
Act of 1994 shall apply to public housing developed or op-
erated pursuant to a contract between the Secretary and
an Indian housing authority.
SEC. 114. SALE OF CERTAIN SCATTERED-SITE PUBLIC
HOUSING.
Section 131 of the Housing and Community Develop-
ment Act of 1992 (Public Law 102–550; 106 Stat. 3712)
is amended by adding at the end the following new sen-
tence: ‘‘During the term of the annual contributions con-
tract relating to the scattered-site public housing origi-
nally sold under this section, any proceeds from the dis-
position of replacement scattered-site dwellings purchased
with (1) the proceeds from such original disposition, or
(2) the proceeds from the disposition of any replacement
scattered-site dwellings, shall be used to purchase addi-
tional replacement scattered-site dwellings, which shall be
considered public housing for the purposes of such Act and
for which the Secretary shall provide annual contributions
for operation, using amounts made available under section
9(c) of such Act.’’.
SEC. 115. COMMUNITY PARTNERSHIPS AGAINST CRIME.
(a) SHORT TITLE, PURPOSES, AND AUTHORITY TO
MAKE GRANTS.—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 by striking the chapter heading and all that
follows through section 5123 and inserting the following:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS
AGAINST CRIME
‘‘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) improve the quality of life for the vast ma-
jority of law-abiding public housing residents by re-
ducing the levels of fear, violence, and crime in their
communities;
‘‘(2) substantially expand and enhance the Fed-
eral Government’s commitment to eliminating crime
in and around public housing and other federally as-
sisted low-income housing;
‘‘(3) 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;
‘‘(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.
‘‘The Secretary of Housing and Urban Development
may make grants in accordance with the provisions of this
chapter for use in eliminating crime in and around public
housing and other federally assisted low-income housing
projects to (1) public housing agencies, and (2) private,
for-profit and nonprofit owners of federally assisted low-
income housing. In designing the program for grants
under this chapter, the Secretary shall consult with the
Attorney General.’’.
(b) ELIGIBLE ACTIVITIES.—
(1) IN GENERAL.—Section 5124(a) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(a)) is
amended—
(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: ‘‘, including fenc-
ing, lighting, locking, and surveillance systems’’;
(C) in paragraph (4), by striking subpara-
graph (A) and inserting the following new sub-
paragraph:
‘‘(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 one or
more individuals, including law enforcement officers,
made available by contract or other cooperative ar-
rangement with State or local law enforcement agen-
cies, to engage in community- and problem-oriented
policing involving interaction with members of the
community in proactive crime control and prevention
activities;
‘‘(9) programs and activities for or involving
youth, including training, education, recreation and
sports, career planning, and entrepreneurship and
employment activities and after school and cultural
programs; and
‘‘(10) service programs for residents that ad-
dress the contributing factors of crime, including
programs for job training, education, drug and alco-
hol treatment, and other appropriate social serv-
ices.’’.
(2) OTHER
PHA-OWNED
HOUSING.—Section
5124(b) of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11903(b)) is amended—
(A) in the matter preceding paragraph
(1)—
(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)’’; and
(B) in paragraph (2), by striking ‘‘drug-re-
lated’’ and inserting ‘‘criminal’’.
(c) GRANT PROCEDURES.—Section 5125 of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11904) is amended
to read as follows:
‘‘SEC. 5125. GRANT PROCEDURES.
‘‘(a) PHA’S WITH 250 OR MORE UNITS.—
‘‘(1) GRANTS.—In each fiscal year, the Sec-
retary shall make a grant under this chapter from
any amounts available under section 5131(b)(1) for
the fiscal year to each of the following public hous-
ing agencies:
‘‘(A) 
NEW
APPLICANTS.—Each 
public
housing agency that owns or operates 250 or
more public housing dwelling units and has—
‘‘(i) submitted an application to the
Secretary for a grant for such fiscal year,
which includes a 5-year crime deterrence
and reduction plan under paragraph (2);
and
‘‘(ii) had such application and plan
approved by the Secretary.
‘‘(B) RENEWALS.—Each public housing
agency that owns or operates 250 or more pub-
lic housing dwelling units and for which—
‘‘(i) a grant was made under this
chapter for the preceding Federal fiscal
year;
‘‘(ii) the term of the 5-year crime de-
terrence and reduction plan applicable to
such grant includes the fiscal year for
which the grant under this subsection is to
be made; and
‘‘(iii) the Secretary has determined,
pursuant to a performance review under
paragraph (4), that during the preceding
fiscal year the agency has substantially ful-
filled the requirements under subpara-
graphs (A) and (B) of paragraph (4).
‘‘(2) 5-YEAR CRIME DETERRENCE AND REDUC-
TION
PLAN.—Each application for a grant under
this subsection shall contain a 5-year crime deter-
rence and reduction plan. The plan shall describe,
for the public housing agency submitting the plan—
‘‘(A) the nature of the crime problem in
public housing owned or operated by the public
housing agency;
‘‘(B) the building or buildings of the public
housing agency affected by the crime problem;
‘‘(C) the impact of the crime problem on
residents of such building or buildings; and
‘‘(D) the actions to be taken during the
term of the plan to reduce and deter such
crime, which shall include actions involving resi-
dents, law enforcement, and service providers.
The term of a plan shall be the period consisting of
5 consecutive fiscal years, which begins with the first
fiscal year for which funding under this chapter is
provided to carry out the plan.
‘‘(3) AMOUNT.—In any fiscal year, the amount
of the grant for a public housing agency receiving a
grant pursuant to paragraph (1) shall be the
amount that bears the same ratio to the total
amount made available under section 5131(b)(1) as
the total number of public dwelling units owned or
operated by such agency bears to the total number
of dwelling units owned or operated by all public
housing agencies that own or operate 250 or more
public housing dwelling units that are approved for
such fiscal year.
‘‘(4) PERFORMANCE REVIEW.—For each fiscal
year, the Secretary shall conduct a performance re-
view of the activities carried out by each public
housing agency receiving a grant pursuant to this
subsection to determine whether the agency—
‘‘(A) has carried out such activities in a
timely manner and in accordance with its 5-
year crime deterrence and reduction plan; and
‘‘(B) has a continuing capacity to carry
out such plan in a timely manner.
‘‘(5) SUBMISSION OF APPLICATIONS.—The Sec-
retary shall establish such deadlines and require-
ments for submission of applications under this sub-
section as the Secretary determines appropriate for
timely and orderly allocation and disbursement of
amounts made available for grants under this sub-
section.
‘‘(6) REVIEW AND DETERMINATION.—The Sec-
retary shall review each application submitted under
this subsection upon submission and shall approve
the application unless the application and the 5-year
crime deterrence and reduction plan are inconsistent
with the purposes of this chapter or any require-
ments established by the Secretary or the informa-
tion in the application or plan is not substantially
complete. Upon approving or determining not to ap-
prove an application and plan submitted under this
subsection, the Secretary shall notify the public
housing agency submitting the application and plan
of such approval or disapproval.
‘‘(7) DISAPPROVAL OF APPLICATIONS.—If the
Secretary notifies an agency that the application and
plan of the agency is not approved, not later than
the expiration of the 15-day period beginning upon
such notice of disapproval, the Secretary shall also
notify the agency, in writing, of the reasons for the
disapproval, the actions that the agency could take
to comply with the criteria for approval, and the
deadlines for such actions.
‘‘(8) FAILURE TO APPROVE OR DISAPPROVE.—
If the Secretary fails to notify an agency of approval
or disapproval of an application and plan submitted
under this subsection before the expiration of the
60-day period beginning upon the submission of the
plan or fails to provide notice under paragraph (7)
within the 15-day period under such paragraph to
an agency whose application has been disapproved,
the application and plan shall be considered to have
been approved for purposes of this section.
‘‘(b) PHA’S WITH FEWER THAN 250 UNITS AND
OWNERS OF FEDERALLY ASSISTED LOW-INCOME HOUS-
ING.—
‘‘(1) APPLICATIONS AND PLANS.—To be eligible
to receive a grant under this chapter, a public hous-
ing agency that owns or operates fewer than 250
public housing dwelling units or an owner of feder-
ally assisted low-income housing shall submit an ap-
plication to the Secretary at such time, in such man-
ner, and accompanied by such additional information
as the Secretary may require. The application shall
include a plan for addressing the problem of crime
in and around the housing for which the application
is submitted, describing in detail activities to be con-
ducted during the fiscal year for which the grant is
requested.
‘‘(2) GRANTS FOR PHA’S WITH FEWER THAN
250 UNITS.—In each fiscal year the Secretary may,
to the extent amounts are available under section
5131(b)(2), make grants under this chapter to pub-
lic housing agencies that own or operate fewer than
250 public housing dwelling units and have submit-
ted applications under paragraph (1) that the Sec-
retary has approved pursuant to the criteria under
paragraph (4).
‘‘(3) GRANTS FOR FEDERALLY ASSISTED LOW-
INCOME HOUSING.—In each fiscal year the Secretary
may, to the extent amounts are available under sec-
tion 5131(b)(3), make grants under this chapter to
owners of federally assisted low-income housing that
have submitted applications under paragraph (1)
that the Secretary has approved pursuant to the cri-
teria under paragraphs (4) and (5).
‘‘(4) CRITERIA
FOR
APPROVAL
OF
APPLICA-
TIONS.—The Secretary shall determine whether to
approve each application under this subsection on
the basis of—
‘‘(A) the extent of the crime problem in
and around the housing for which the applica-
tion is made;
‘‘(B) the quality of the plan to address the
crime problem in the housing for which the ap-
plication is made;
‘‘(C) the capability of the applicant to
carry out the plan; and
‘‘(D) the extent to which the tenants of the
housing, the local government, local community-
based nonprofit organizations, local tenant or-
ganizations representing residents of neighbor-
ing projects that are owned or assisted by the
Secretary, and the local community support and
participate in the design and implementation of
the activities proposed to be funded under the
application.
In each fiscal year, the Secretary may give pref-
erence to applications under this subsection for
housing made by applicants who received a grant for
such housing for the preceding fiscal year under this
subsection or under the provisions of this chapter as
in effect immediately before the date of the enact-
ment of the Housing and Community Development
Act of 1994.
‘‘(5) ADDITIONAL
CRITERIA
FOR
FEDERALLY
ASSISTED
LOW-INCOME
HOUSING.—In addition to
the selection criteria under paragraph (4), the Sec-
retary may establish other criteria for evaluating ap-
plications submitted by owners of federally assisted
low-income housing, except that such additional cri-
teria shall be designed only to reflect—
‘‘(A) relevant differences between the fi-
nancial resources and other characteristics of
public housing authorities and owners of feder-
ally assisted low-income housing; or
‘‘(B) relevant differences between the prob-
lem of crime in public housing administered by
such public housing agencies and the problem
of crime in federally assisted low-income hous-
ing.’’.
(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);
(2) in paragraph (4), by striking ‘‘section’’ be-
fore ‘‘221(d)(4)’’;
(3) by redesignating paragraphs (3) and (4) (as
so amended) as paragraphs (1) and (2), respectively;
and
(4) by adding at the end the following new
paragraph:
‘‘(3) PUBLIC
HOUSING
AGENCY.—The term
‘public housing agency’ has the meaning given the
term in section 3(b) of the United States Housing
Act of 1937.’’.
(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—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(a) REPORTS BY GRANTEES.—The Secretary’’;
(2) by striking ‘‘drug-related crime in’’ and in-
serting ‘‘crime in and around’’;
(3) by striking ‘‘described in section 5125(a)’’
and inserting ‘‘for the grantee submitted under sub-
section (a) or (b) of section 5125, as applicable’’;
and
(4) by adding at the end the following new sub-
section:
‘‘(b) REPORTS BY SECRETARY.—For each fiscal year
in which the Secretary makes grants under this chapter,
the Secretary shall submit a report to the Congress de-
scribing the progress achieved in crime deterrence and re-
duction in the public housing and federally assisted low-
income housing for which such grant assistance has been
provided. The report shall include any recommendations
of the Secretary for changes in the program of assistance
under this chapter.’’.
(g) TECHNICAL ASSISTANCE AND FUNDING.—Chap-
ter 2 of subtitle C of title V of the Anti-Drug Abuse Act
of 1988 is amended by striking section 5130 (42 U.S.C.
11909) and inserting the following new sections:
‘‘SEC. 5130. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—To the extent amounts are made
available under section 5131(c), the Secretary may provide
training, information services, and other technical assist-
ance to public housing agencies and other entities with re-
spect to their participation in the program under this
chapter, which shall include activities under subsection (b)
of this section. Such technical assistance may be provided
directly by the Secretary or indirectly pursuant to grants,
contracts, or cooperative agreements.
‘‘(b) USE.—The Secretary may use amounts available
for use under this section—
‘‘(1) to establish and operate the clearinghouse
on drug abuse in public housing and the regional
training program on drug abuse in public housing
under sections 5143 and 5144 of this Act;
‘‘(2) to obtain assistance in establishing and
managing assessment and evaluation criteria and
specifications and to obtain the opinions of experts
in relevant fields; and
‘‘(3) upon the request of a public housing agen-
cy, to assist the agency in evaluating the extent of
the crime problem in any public housing adminis-
tered by the agency and preparing a 5-year crime
deterrence and reduction plan under section 5125(a)
or an application and plan under section 5125(b)(1),
which assistance may include providing personnel
and funding to identify and secure local resources to
assist in deterring and reducing crime.
‘‘(c) PRIORITY.—In selecting entities to receive tech-
nical assistance under this section, the Secretary shall give
priority to public housing agencies that have submitted ap-
plications and plans under section 5125 that the Secretary
has determined do not meet the requirements for approval
for assistance under this chapter.
‘‘SEC. 5131. ALLOCATION OF FUNDING.
‘‘(a) ALLOCATION.—Of any amounts available, or
that the Secretary is authorized to use, to carry out this
chapter in any fiscal year that remain after reserving
amounts for use under subsection (c)—
‘‘(1) 85 percent shall be available only for as-
sistance pursuant to section 5125(a) to public hous-
ing agencies that own or operate 250 or more public
housing dwelling units;
‘‘(2) 10 percent shall be available only for as-
sistance pursuant to section 5125(b)(2) to public
housing agencies that own or operate fewer than 250
public housing dwelling units; and
‘‘(3) 5 percent shall be available only for assist-
ance to federally assisted low-income housing pursu-
ant to section 5125(b)(3).
Any other provision of law enacted before or after the date
of the enactment of the Housing and Community Develop-
ment Act of 1994 that limits the authority of the Sec-
retary to use amounts to carry out this chapter upon the
apportionment of such amounts in a manner not provided
for in this subsection shall not be effective.
‘‘(b) SET-ASIDE FOR TECHNICAL ASSISTANCE.—Of
any amount made available in fiscal years 1994 and 1995
to carry out this chapter, the Secretary shall use not more
than $10,000,000 in each such fiscal year to provide tech-
nical assistance under section 5130.’’.
(h) CONFORMING AMENDMENTS.—The table of con-
tents in section 5001 of the Anti-Drug Abuse Act of 1988
(Public Law 100–690; 102 Stat. 4295) is amended—
(1) by striking the item relating to the heading
for chapter 2 of subtitle C and inserting the follow-
ing:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;
(2) by striking the item relating to section 5122
and inserting the following new item:
‘‘Sec. 5122. Purposes.’’;
(3) by striking the item relating to section 5125
and inserting the following new item:
‘‘Sec. 5125. Grant procedures.’’;
and
(4) by striking the item relating to section 5130
and inserting the following new items:
‘‘Sec. 5130. Technical Assistance.
‘‘Sec. 5131. Funding.’’.
SEC. 116. PUBLIC HOUSING RESIDENT OPPORTUNITY.
Section 20 of the United States Housing Act of 1937
(42 U.S.C. 1437r) is amended—
(1) by striking the section heading and insert-
ing the following new section heading:
‘‘RESIDENT OPPORTUNITY PROGRAM’’;
(2) in the first 2 sentences of subsection (b), by
striking ‘‘resident management program’’ each place
it appears and inserting ‘‘resident opportunity pro-
gram’’; and
(3) in subsection (f)—
(A) by striking ‘‘RESIDENT MANAGEMENT
TECHNICAL ASSISTANCE AND TRAINING’’ and
inserting ‘‘RESIDENT
OPPORTUNITY
ASSIST-
ANCE’’;
(B) in paragraph (1), by adding at the end
the following new sentences: ‘‘In addition, the
Secretary may provide financial assistance to
resident management corporations or resident
councils for activities sponsored by resident or-
ganizations for job training, economic develop-
ment, security, and other self-sufficiency activi-
ties beyond those related to the management of
public housing. Any resident management cor-
poration or resident council may use such as-
sistance to enter into agreements with any local
community action agency receiving assistance
under the Community Services Block Grant Act
for such agency to carry out such activities.’’;
(C) 
in 
paragraph 
(2), 
by 
striking
‘‘$100,000’’ and inserting ‘‘$250,000’’;
(D) by striking paragraph (3) and insert-
ing the following new paragraph:
‘‘(3) FUNDING.—Of any amounts made avail-
able for financial assistance under section 14, the
Secretary may use to carry out this subsection
$25,000,000 for fiscal year 1995 and $25,000,000
for fiscal year 1996.’’;
(E) 
by 
redesignating 
paragraphs 
(2)
through (4) as paragraphs (3) through (5), re-
spectively; and
(F) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) OTHER USES OF ASSISTANCE.—The Sec-
retary may use amounts available to carry out this
subsection to enter into contracts with—
‘‘(A) various entities for monitoring, eval-
uation, technical assistance, and information
dissemination in connection with activities
under this subsection; and
‘‘(B) resident organizations and public or
private entities (including local community ac-
tion agencies receiving assistance under the
Community Services Block Grant Act) for ac-
tivities that support the economic development
and increased self-sufficiency of public housing
residents.
Eligible activities related to economic development
and self-sufficiency may include programs for coun-
seling, treatment for substance abuse, child care, re-
medial education, job training, and development of
resident businesses.’’.
Subtitle B—Section 8 Rental Assistance
SEC. 121. MERGER OF SECTION 8 RENTAL ASSISTANCE
PROGRAMS.
(a) IN GENERAL.—Section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) is amended to
read as follows:
‘‘RENTAL HOUSING ASSISTANCE FOR LOW-INCOME
FAMILIES
‘‘SEC. 8. (a) AUTHORITY AND PURPOSE.—
‘‘(1) IN GENERAL.—For the purposes of aiding
low-income families in obtaining a decent place to
live and promoting economically mixed housing, the
Secretary may provide assistance payments with re-
spect to existing housing in accordance with the pro-
visions of this section.
‘‘(2) ELDERLY HOUSING.—Notwithstanding any
other provision of this Act, assistance payments
under this section may be provided, in accordance
with regulations prescribed by the Secretary, with
respect to some or all of the units in any project ap-
proved pursuant to section 202 of the Housing Act
of 1959 (as in effect before October 1, 1991).
‘‘(b) ANNUAL
CONTRIBUTIONS
CONTRACTS
FOR
RENTAL ASSISTANCE.—
‘‘(1) IN GENERAL.—The Secretary may enter
into annual contributions contracts under this sub-
section with public housing agencies to provide rent-
al housing assistance under this section for low-in-
come families. Such annual contributions contracts
shall bind the Secretary to make such authority, and
any amendments increasing such authority, available
to the public housing agency for a specified period.
‘‘(2) SECRETARY
ACTING
AS
PHA.—In areas
where no public housing agency has been organized
or where the Secretary determines that a public
housing agency is unable to implement the provi-
sions of this section, the Secretary may enter into
such contracts and perform the other functions as-
signed to a public housing agency by this section.
‘‘(3) TREATMENT
OF
ASSISTANCE
FOR
SUP-
PORTIVE HOUSING FOR THE DISABLED.—The Sec-
retary may not consider the receipt by a public hous-
ing agency of assistance under section 811(b)(1) of
the Cranston-Gonzalez National Affordable Housing
Act, or the amount received, in approving assistance
under this section for the agency or in determining
the amount of such assistance to be provided to the
agency.
‘‘(c) ASSISTANCE CONTRACTS.—
‘‘(1) IN GENERAL.—Each public housing agen-
cy that receives amounts under an annual contribu-
tions contract may enter into assistance contracts to
make rental assistance payments to owners of exist-
ing dwelling units in accordance with the provisions
of this section.
‘‘(2) PHA ACTING AS OWNER.—A public hous-
ing agency may contract to make rental assistance
payments under this section to itself (or any agency
or instrumentality thereof) as the owner of dwelling
units, and the agency shall be subject to the same
program requirements as are applied to other own-
ers. In such cases, the Secretary may establish ini-
tial rents within applicable limits.
‘‘(3) INAPPLICABLE PROVISIONS.—Sections 5(e)
and 6 and any other provisions of this Act that are
inconsistent with the provisions of this section shall
not apply to assistance contracts entered into pursu-
ant to this section.
‘‘(d) MAXIMUM MONTHLY RENT.—
‘‘(1) IN
GENERAL.—Each assistance contract
entered into pursuant to this section shall establish
the maximum monthly rent (including utilities and
all maintenance and management charges) that the
owner is entitled to receive for each dwelling unit for
which rental assistance payments are to be made
under the contract. Except as provided in paragraph
(2), the maximum monthly rent shall not exceed by
more than 10 percent the fair market rental under
subsection (e) for the market area in which the
dwelling unit is located. If units assisted under this
section are exempt from local rent control while they
are so assisted or otherwise, the maximum monthly
rent for such units shall be reasonable in comparison
with other units in the market area that are exempt
from local rent control.
‘‘(2) EXCEPTION.—The maximum monthly rent
may exceed the fair market rental—
‘‘(A) by more than 10 but not more than
20 percent, but only if the Secretary determines
that special circumstances warrant such higher
maximum rent or that such higher rent is nec-
essary to the implementation of a comprehen-
sive housing affordability strategy under section
105 of the Cranston-Gonzalez National Afford-
able Housing Act; or
‘‘(B) by such higher amount, only if re-
quested by the low-income family assisted and
approved by the public housing agency in ac-
cordance with subsection (f)(2).
‘‘(3) ANNUAL ADJUSTMENTS.—Each assistance
contract shall provide for adjustment in the maxi-
mum monthly rents for units covered by the contract
not less than annually to reflect changes in the fair
market rentals established under subsection (e) for
the housing area for similar types and sizes of dwell-
ing units or, if the Secretary determines, on the
basis of a reasonable formula.
‘‘(4) ADJUSTMENTS DUE TO EXPENSES.—Each
assistance contract shall further provide for the Sec-
retary to make additional adjustments in the maxi-
mum monthly rent for units assisted under the con-
tract to the extent the Secretary determines such ad-
justments are necessary to reflect changes in the ac-
tual and necessary expenses of owning and main-
taining the units that have resulted from substantial
general changes in real property taxes, utility rates,
or similar costs that are not adequately compensated
for by the adjustment in the maximum monthly rent
authorized by paragraph (3). The Secretary shall
make additional adjustments in the maximum
monthly rent for units under contract (subject to the
availability of appropriations for contract amend-
ments) to the extent the Secretary determines such
adjustments are necessary to reflect changes in the
actual and necessary expenses of owning and main-
taining the units that have resulted from the expira-
tion of a real property tax exemption.
‘‘(5) ADJUSTMENTS DUE TO CRIMINAL ACTIV-
ITY.—If the Secretary determines that a project as-
sisted under this section is located in a community
where criminal activity is generally prevalent and the
operating, maintenance, and capital repair expenses
for the project have been substantially increased pri-
marily as a result of the prevalence of such activity,
the Secretary may (at the discretion of the Secretary
and subject to the availability of appropriations for
contract amendments for this purpose), on a project-
by-project basis, provide adjustments to the maxi-
mum monthly rents, to a level not exceeding 120
percent of the project rents, to cover the costs of
maintenance, security, capital repairs, and reserves
required for the owner to carry out a strategy ac-
ceptable to the Secretary for addressing the problem
of criminal activity. The Secretary may waive the
applicability of any rent comparability standard re-
quired under this subsection to implement this para-
graph.
‘‘(6) ADJUSTMENTS
DUE
TO
LEAD-BASED
PAINT
REDUCTION
FOR
HOUSING
RECEIVING
PROJECT-BASED
ASSISTANCE.—The Secretary may
(at the discretion of the Secretary and subject to the
availability of appropriations for contract amend-
ments), on a project-by-project basis for projects re-
ceiving project-based assistance, provide adjustments
to the maximum monthly rents to cover the costs of
evaluating and reducing lead-based paint hazards, as
defined in section 1004 of the Residential Lead-
Based Paint Hazard Reduction Act of 1992.
‘‘(7) LIMITATIONS ON ADJUSTMENTS.—
‘‘(A) GENERAL
COMPARABILITY
RULE.—
Adjustments in the maximum rents under para-
graphs (3) through (6) shall not result in mate-
rial differences between the rents charged for
assisted units and unassisted units of similar
quality, type, and age in the same market area,
as determined by the Secretary.
‘‘(B) COMPARABILITY STUDIES.—
‘‘(i) To carry out subparagraph (A),
the Secretary shall issue regulations to
provide for conducting comparability stud-
ies for projects where the Secretary has
reason to believe that the application of the
formula adjustments under paragraph (3)
would result in such material differences.
The Secretary shall conduct such studies
upon the request of any owner of any
project, or as the Secretary determines to
be appropriate by establishing, to the ex-
tent practicable, a modified annual adjust-
ment factor for such market area, as the
Secretary shall designate, that is geo-
graphically smaller than the applicable
housing area used for the establishment of
the annual adjustment factor under para-
graph (3). The Secretary shall establish
such modified annual adjustment factor on
the basis of the results of a study con-
ducted by the Secretary of the rents
charged, and any change in such rents
over the previous year, for assisted units
and unassisted units of similar quality,
type, and age in the smaller market area.
Where the Secretary determines that such
modified annual adjustment factor cannot
be established or that such factor when ap-
plied to a particular project would result in
material differences between the rents
charged for assisted units and unassisted
units of similar quality, type, and age in
the same market area, the Secretary may
apply an alternative methodology for con-
ducting comparability studies in order to
establish rents that are not materially dif-
ferent from rents charged for comparable
unassisted units.
‘‘(ii) If the Secretary or appropriate
State agency does not complete and submit
to the project owner a comparability study
not later than 60 days before the anniver-
sary date of the assistance contract under
this section, the automatic annual adjust-
ment factor shall be applied. The Secretary
may not reduce the contract rents in effect
on or after April 15, 1987, for newly con-
structed, substantially rehabilitated, or
moderately rehabilitated projects assisted
under this section (including projects as-
sisted under this section as in effect prior
to November 30, 1983), unless the project
has been refinanced in a manner that re-
duces the periodic payments of the owner.
Any maximum monthly rent that has been
reduced by the Secretary after April 14,
1987, and prior to November 7, 1988,
shall be restored to the maximum monthly
rent in effect on April 15, 1987.
‘‘(iii) For any project which has had
its maximum monthly rents reduced after
April 14, 1987, the Secretary shall make
assistance payments (from amounts re-
served for the original contract) to the
owner of such project in an amount equal
to the difference between the maximum
monthly rents in effect on April 15, 1987,
and the reduced maximum monthly rents,
multiplied by the number of months that
the reduced maximum monthly rents were
in effect.
‘‘(e) FAIR MARKET RENTALS.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish fair market rentals under this subsection peri-
odically, but not less than annually, for existing
rental dwelling units suitable for occupancy by low-
income families assisted under this section. The Sec-
retary shall establish the fair market rental by hous-
ing market area for various sizes and types of dwell-
ing units. For a market area, the fair market rental
for any size and type of dwelling unit shall be a dol-
lar amount not less than the amount that results in
the rents charged for 45 percent of the standard
quality rental units of such size and type in the mar-
ket area being less than such dollar amount. For
purposes of determining the dollar amount under the
preceding sentence, the Secretary shall consider only
rental units occupied by recent movers and shall not
consider public housing units, units for which mar-
ket rents cannot be determined, and newly con-
structed units.
‘‘(2) EFFECTIVENESS AND ADJUSTMENT.—The
Secretary shall publish proposed fair market rentals
for each area in the Federal Register with reason-
able time for public comment, and such fair market
rentals shall become effective upon the date of publi-
cation in final form in the Federal Register. Each
fair market rental in effect under this subsection
shall be adjusted to be effective on October 1 of each
year to reflect changes, based on the most recent
available data trended so the rentals will be current
for the year to which they apply, of rents for exist-
ing rental dwelling units, as the case may be, of var-
ious sizes and types in the market area suitable for
occupancy by families assisted under this section.
‘‘(3) CERTAIN AREAS.—The Secretary shall es-
tablish separate fair market rentals under this sub-
section for Westchester County in the State of New
York. The Secretary shall also establish separate fair
market rentals under this paragraph for Monroe
County in the Commonwealth of Pennsylvania. In
establishing fair market rentals for the remaining
portion of the market areas in which Monroe County
is located, the Secretary shall establish the fair mar-
ket rentals as if such portion included Monroe
County.
‘‘(4) REQUIRED REVIEW.—If at any time, for
any public housing agency, more than 50 percent of
the families on behalf of whom assistance is provided
under this section by the agency are paying as rent
more than the amount specified under section 3(a)
(as authorized in subsection (f)(2)), the agency shall
review the fair market rentals established under this
subsection for the market areas in the jurisdiction of
the public housing agency.
‘‘(f) AMOUNT OF MONTHLY ASSISTANCE PAYMENT
AND DUE PROCESS RIGHTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amount of the monthly assistance
payment under this section with respect to any
dwelling unit shall be the difference between the
maximum monthly rent that the contract provides
that the owner is to receive for the unit and the rent
the family is required to pay under section 3(a).
‘‘(2) INCREASED FAMILY PAYMENT.—A family
on behalf of whom tenant-based assistance payments
are made under this section may pay as rent for a
dwelling unit assisted under this section more than
the amount specified under section 3(a), but only
if—
‘‘(A) the family notifies the public housing
agency of its interest in a unit renting for an
amount that exceeds the permissible maximum
monthly rent established for the market area
under subsection (d);
‘‘(B) such agency determines that the rent
for the unit and the rental payments of the
family are reasonable, after taking into account
other family expenses (including child care, un-
reimbursed medical expenses, transportation,
and other appropriate family expenses;
‘‘(C) such amount does not exceed 40 per-
cent of the family’s monthly adjusted income;
and
‘‘(D) the public housing agency has first
exercised any authority under paragraphs (1)
and (2)(A) of subsection (d) to increase the
maximum monthly rent for the dwelling unit.
The amount of the monthly assistance payment
under this section with respect to a dwelling unit for
a family paying rent as provided in this paragraph
shall be the difference between an amount based on
the fair market rent and the rent the family is re-
quired to pay under section 3(a).
‘‘(3) INCREASES IN ASSISTANCE PAYMENTS.—
The Secretary shall take any action necessary, in-
cluding making contracts for assistance payments in
amounts exceeding the amounts required upon the
initial renting of dwelling units, reserving annual
contributions authority for the purpose of amending
assistance contracts, or allocating a portion of new
authorizations for the purpose of amending assist-
ance contracts, to ensure that assistance payments
are increased on a timely basis to cover increases in
maximum monthly rents or decreases in family in-
comes.
‘‘(4) REVIEWS OF FAMILY INCOMES.—
‘‘(A) IN GENERAL.—Reviews of family in-
comes for purposes of this section shall be made
annually and shall be subject to the provisions
of section 904(e) of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988.
For families for whom an increased rental pay-
ment has been approved under paragraph (2),
such review shall include determining whether
the rent for the unit and the rental payments
of the family continue to be reasonable, in ac-
cordance with subparagraphs (B) and (C) of
paragraph (2).
‘‘(B) PROCEDURES.—The Secretary shall
establish procedures that are appropriate and
necessary to ensure that income data provided
to public housing agencies and owners by fami-
lies applying for or receiving assistance under
this section is complete and accurate.
‘‘(C) CONFIDENTIALITY.—Any income in-
formation received pursuant to this paragraph
shall remain confidential and shall be used only
for the purpose of verifying incomes in order to
determine eligibility of families for benefits (and
the amount of such benefits, if any) under this
section.
‘‘(5) DUE PROCESS RIGHTS IN CASES OF AD-
VERSE ACTION.—In the case of any action proposed
to be taken by a public housing agency, any family
receiving assistance under this section adversely af-
fected by such action shall have the right to at least
the basic elements of due process with regard to
such action, as follows:
‘‘(A) Written notice of the intended ad-
verse action and the reason for such action
shall be provided to the family not less than 30
days before the action is to be taken, or, in a
case where the health or safety of other families
is threatened, a reasonable period of time con-
sidering the seriousness of the situation (but
not to exceed 30 days).
‘‘(B) The family shall have the right to re-
quest a hearing within 30 days after receipt of
the notice.
‘‘(C) The family shall have the right to a
hearing before an impartial hearing officer.
‘‘(D) The family shall have the right to be
represented at the hearing by an attorney or
other advocate.
‘‘(E) The family shall have the right to ex-
amine the evidence supporting the action and
all evidence that the public housing agency in-
tends to use.
‘‘(F) The family shall have the right to
present testimonial and documentary evidence
and to cross-examine adverse witnesses.
‘‘(G) The hearing officer shall issue a writ-
ten decision, which shall be based solely upon
the evidence introduced at the hearing and
which shall state the basis of the decision.
‘‘(g) ELIGIBILITY OF UNITS FOR ASSISTANCE.—
‘‘(1) OCCUPANCY
STATUS.—Each assistance
contract shall provide that assistance payments may
be made only with respect to the following dwelling
units:
‘‘(A) OCCUPIED UNITS.—A dwelling unit
under lease for occupancy by a family deter-
mined to be a low-income family at the time it
initially occupies the dwelling unit or by a fam-
ily that qualifies to receive assistance under this
section pursuant to section 223 or 226 of the
Low-Income Housing Preservation and Resi-
dent Homeownership Act of 1990.
‘‘(B) UNOCCUPIED UNITS.—An unoccupied
dwelling unit, but only if—
‘‘(i)(I) a family vacates the dwelling
unit before the expiration date of the lease
for occupancy, or (II) a good faith effort is
being made to fill the unoccupied unit; and
‘‘(ii) the costs of such vacancy are not
charged to or paid by the family vacating
the dwelling unit.
Payments for units referred to in this subpara-
graph may be made only for a period not ex-
ceeding 60 days, except that such payments
may be made, in the case of a newly con-
structed or substantially rehabilitated project,
after the expiration of such 60-day period in an
amount equal to the debt service attributable to
such an unoccupied dwelling unit for a period
not to exceed one year, if a good faith effort is
being made to fill the unit and the unit provides
decent, safe, and sanitary housing. No such
payment may be made after the expiration of
such 60-day period if the Secretary determines
that the dwelling unit is in a project which pro-
vides the owner with revenues exceeding the
costs incurred by such owner with respect to
such project.
‘‘(2) OWNER’S
STATUS.—A public housing
agency shall not approve the rental of a dwelling
unit if the owner—
‘‘(A) is debarred, suspended, or subject to
limited denial of participation under part 24 of
title 24, Code of Federal Regulations; or
‘‘(B) has been convicted of drug traffick-
ing.’’
‘‘(h) OTHER
PROVISIONS
OF
ASSISTANCE
CON-
TRACTS.—Contracts to make assistance payments entered
into by any public housing agency (or by the Secretary)
with an owner of existing housing units shall meet the fol-
lowing requirements:
‘‘(1) CONTRACT TERM.—Each assistance con-
tract shall have a term of not less than one month
nor more than 180 months. The Secretary shall per-
mit public housing agencies to enter into assistance
contracts having terms of less than 12 months to the
extent necessary to avoid disruption in assistance to
eligible families if the annual contributions contract
for the agency under subsection (b) will expire with-
in 1 year.
‘‘(2) PREFERENCES.—Each assistance contract
shall provide that, in making assistance available
pursuant to the contract—
‘‘(A) for not less than 70 percent of the
families who initially receive project-based as-
sistance, and
‘‘(B) for not less than 90 percent of the
families who initially receive tenant-based as-
sistance in any 1-year period,
preference shall be given to families that (i) occupy
substandard housing (including families that are
homeless or living in a shelter for homeless families),
(ii) are paying more than 50 percent of family in-
come for rent, or (iii) are involuntarily displaced (in-
cluding displacement because of disposition of a mul-
tifamily housing project under section 203 of the
Housing and Community Development Amendments
of 1978) at the time they are seeking assistance
under this section.
‘‘(3) SECONDARY PREFERENCES.—Each assist-
ance contract shall provide that, for any assistance
remaining in any 1-year period after assistance is
made available pursuant to paragraph (2), pref-
erence for such assistance shall be given to families
who qualify under a system of local preferences es-
tablished by the public housing agency in writing
and after public hearing to respond to local housing
needs and priorities, which may include—
‘‘(A) assisting very low-income families
who either reside in transitional housing as-
sisted under title IV of the Stewart B. McKin-
ney Homeless Assistance Act or participate in
a program designed to provide public assistance
recipients with greater access to employment
and educational opportunities;
‘‘(B) assisting families in accordance with
subsection (q)(1)(B);
‘‘(C) assisting families identified by local
public agencies involved in providing for the
100
welfare of children as having a lack of adequate
housing that is a primary factor in the immi-
nent placement of a child in foster care, or in
preventing the discharge of a child from foster
care and reunification with his or her family;
‘‘(D) assisting youth, upon discharge from
foster care, in cases in which return to the fam-
ily or extended family or adoption is not avail-
able;
‘‘(E) assisting veterans who are eligible
and have applied for assistance, will use the as-
sistance for a dwelling unit designed for the
handicapped, and, upon discharge or eligibility
for discharge from a hospital or nursing home,
have physical disability which, because of the
configuration of their homes, prevents them
from access to or use of their homes; and
‘‘(F) achieving other objectives of national
housing policy as established by law.
‘‘(4) TENANT
SELECTION.—Each assistance
contract shall provide that the selection of tenants
for such dwelling units shall be the function of the
owner, subject to any provisions of the annual con-
tributions contract between the Secretary and the
101
agency. The owner shall use tenant selection criteria,
which shall provide as follows:
‘‘(A) PROHIBITION OF PERSONS ENGAGED
IN DRUG ACTIVITY.—The criteria shall prohibit
any individual or family evicted from housing
assisted under this Act by reason of drug-relat-
ed criminal activity from having a preference
under any provision of this paragraph for 3
years unless the evicted tenant successfully
completes a rehabilitation program approved by
the agency or owner. The agency or the owner
may waive the application of the preceding sen-
tence under standards established by the Sec-
retary, which shall provide for such waiver for
any member of a family of an individual prohib-
ited from tenancy under this subparagraph who
the agency or owner determines clearly did not
participate in and had no knowledge of such
criminal activity or when circumstances leading
to eviction no longer exist.
‘‘(B) 
OTHER
REQUIREMENTS
FOR
PROJECT-BASED
ASSISTANCE.—With 
respect
only to project-based assistance, the criteria
shall—
102
‘‘(i) be consistent with the purpose of
improving housing opportunities for very
low-income families;
‘‘(ii) be reasonably related to program
eligibility and an applicant’s ability to per-
form the obligations of the assisted lease;
‘‘(iii) be established in writing; and
‘‘(iv) provide for the owner to prompt-
ly provide to any rejected applicant (I)
written notice of the grounds for the rejec-
tion, and (II) an opportunity to meet with
the decision maker to evaluate the validity
of the reasons for rejection and rectify any
erroneous decisions.
‘‘(5) LEASE PROVISIONS.—Each assistance con-
tract shall provide that the lease between the tenant
of any unit and the owner—
‘‘(A) shall be for at least one year or the
term of such assistance contract, whichever is
shorter;
‘‘(B) shall contain other terms and condi-
tions specified by the Secretary, including provi-
sions meeting the requirements of paragraphs
(6), (7), and (8); and
103
‘‘(C) shall be in a standard form which is
used in the local housing market area by the
owner and which applies generally to tenants in
the property who are not assisted under this
section, together with any addendum necessary
to include in the lease the provisions required
under subparagraph (B).
‘‘(6) GENERAL GROUNDS FOR TERMINATION OF
TENANCY.—Each assistance contract shall provide
that the owner shall not terminate the tenancy of
the tenant of any unit except for serious or repeated
violation of the terms and conditions of the lease, for
violation of applicable Federal, State, or local law, or
for other good cause. The withholding of assistance
payments for a dwelling unit pursuant to paragraph
(10) shall not constitute good cause for termination
of the tenancy of the tenant of the unit.
‘‘(7) TERMINATION FOR ACTIVITY.—Each as-
sistance contract shall provide that any criminal ac-
tivity that threatens the health, safety, or right to
peaceful enjoyment of the premises by other tenants,
any activity that threatens the health, safety, or
right to peaceful enjoyment of their residences by
persons residing in the immediate vicinity of the
premises, or any drug-related criminal activity on or
104
near such premises, engaged in by a tenant of any
unit, any member of the tenant’s household, or any
guest or other person under the tenant’s control,
shall be cause for termination of tenancy.
‘‘(8) NOTICE OF TERMINATION OF TENANCY.—
Each assistance contract shall provide that before
terminating the tenancy of any tenant, the owner
shall provide written notice to the tenant specifying
the legal and factual grounds for such action, which
shall be provided in accordance with any require-
ments under State or local law.
‘‘(9) MAINTENANCE
AND
REPLACEMENT.—
Each assistance contract shall provide that mainte-
nance and replacement (including redecoration) shall
be performed in accordance with the standard prac-
tice for the building concerned as established by the
owner and agreed to by the agency (or the Sec-
retary). With the approval of the Secretary, the pub-
lic housing agency administering a contract under
this section with respect to existing housing units
may exercise all management and maintenance re-
sponsibilities with respect to the units pursuant to a
contract between such agency and the owner of such
units.
‘‘(10) HOUSING QUALITY STANDARDS.—
105
‘‘(A) INSPECTION.—The Secretary shall
require (with respect to any unit) that (A) the
public housing agency inspect the unit before
any assistance payment may be made to deter-
mine that it meets housing quality standards
for decent, safe, and sanitary housing estab-
lished by the Secretary for the purpose of this
section, and (B) the public housing agency
make annual or more frequent inspections dur-
ing the contract term. No assistance payment
may be made for a dwelling unit which fails to
meet such quality standards, unless any such
failure is promptly corrected by the owner and
the correction verified by the public housing
agency.
‘‘(B) FAILURE TO CORRECT SERIOUS NON-
COMPLIANCE.—If any serious noncompliance
with such standards is not corrected within a
reasonable period of time after such notifica-
tion, the agency (or the Secretary) may with-
hold some or all of the assistance amounts
under this section with respect to the unit and
promptly—
106
‘‘(i) use such amounts to make nec-
essary repairs or contract to have such re-
pairs made;
‘‘(ii) release any withheld amounts to
the owner after repairs are made by the
owner, in an amount not exceeding the
cost of the repairs; or
‘‘(iii) release any withheld amounts to
the applicable State or local housing agen-
cy after repairs are made by such agency,
in an amount not exceeding the cost of the
repairs.
‘‘(11) STANDARDS AND OBLIGATIONS OF RESI-
DENCY IN HOUSING RECEIVING PROJECT-BASED AS-
SISTANCE.—Each assistance contract for project-
based assistance under subsection (i) shall provide
that the owner shall ensure and maintain compliance
with subtitle C of title VI of the Housing and Com-
munity Development Act of 1992 and any regula-
tions issued under such subtitle.
‘‘(12) SERVICE COORDINATORS.—In determin-
ing the amount of assistance provided under an as-
sistance contract for tenant-based assistance under
this paragraph, the Secretary may increase the
amount annually provided with respect to such
107
project to provide for the costs of employing or oth-
erwise retaining the services of one or more service
coordinators under section 671 of the Housing and
Community Development Act of 1992 to coordinate
the provision of any services within the project for
residents of the project who are elderly or disabled
families.
‘‘(13) OTHER.—Each assistance contract shall
provide that the agency and the owner shall carry
out such other appropriate terms and conditions as
may be mutually agreed to by the agency and owner.
‘‘(i) PROJECT-BASED ASSISTANCE.—
‘‘(1) AUTHORITY.—Pursuant to an annual con-
tributions contract entered into under subsection
(b), a public housing agency may enter into a assist-
ance contract providing for assistance payments
under this section that are attached to a structure.
‘‘(2) REQUIREMENTS.—Any public housing
agency may approve project-based assistance under
this subsection with respect to any or all of the as-
sistance provided by the public housing agency if—
‘‘(A) the owner agrees to rehabilitate the
structure other than with assistance under this
Act and the owner otherwise complies with the
requirements of this section; and
108
‘‘(B) in the case of any newly constructed
structure, the owner or prospective owner
agrees to construct the structure other than
with assistance under this Act and otherwise
complies with the requirements of this section.
‘‘(3) LONG-TERM AFFORDABILITY.—
‘‘(A) IN GENERAL.—In the case of an as-
sistance contract for project-based assistance
under this subsection, a public housing agency
shall enter into a contract with an owner, con-
tingent upon the future availability of appro-
priations for the purpose of renewing expiring
contracts for assistance payments as provided
in appropriations Acts, to extend the term of
the underlying assistance contract for such pe-
riod or periods as the Secretary determines to
be appropriate to achieve long-term afford-
ability of the housing. The contract shall obli-
gate the owner to have the extensions of the as-
sistance contract accepted by the owner and the
owner’s successors in interest.
‘‘(B) TERM OF ASSISTANCE FOR LOW-IN-
COME HOUSING PRESERVATION.—The contract
for assistance may, at the option of the public
housing agency, have an initial term not exceed-
110
ance contract for project-based assistance under this
subsection or a contract for assistance for housing
constructed or substantially rehabilitated pursuant
to assistance provided under section 8(b)(2) of this
Act (as such section existed before October 1, 1983),
the Secretary may increase the amount annually
provided with respect to such project to provide for
the costs of employing or otherwise retaining the
services of one or more service coordinators under
section 671 of the Housing and Community Devel-
opment Act of 1992 to coordinate the provision of
any services within the project for residents of the
project who are elderly or disabled families.
‘‘(j) TERMINATION OF ASSISTANCE CONTRACTS.—
‘‘(1) TERMINATION OF TENANT-BASED ASSIST-
ANCE.—
‘‘(A) NOTICE BY OWNER.—Any owner ter-
minating any assistance contract under this sec-
tion for tenant-based assistance shall provide
written notice to the public housing agency and
the tenants involved of the proposed termi-
nation not less than 30 days before the termi-
nation of the contract. The notice shall specify
the date of the termination and the reasons for
the termination, with detail sufficient to enable
111
the agency to evaluate whether the termination
is lawful.
‘‘(B) REVIEW OF NOTICE BY PHA.—The
public housing agency shall review the notice
and issue a written finding of the legality of the
termination and the reasons for the termi-
nation. Within 5 days after issuance of the
findings, the owner shall provide written notice
to each tenant of the decision, together with the
written findings of the agency regarding the
termination.
‘‘(2) TERMINATION OF PROJECT-BASED ASSIST-
ANCE CONTRACTS.—
‘‘(A) NOTICE BY OWNER.—Any owner ter-
minating any assistance contract under sub-
section (i) for project-based assistance shall
provide written notice to the Secretary and the
tenants involved of the proposed termination
not less than one year before the termination of
the contract. The notice shall specify the date
of the termination and the reasons for the ter-
mination, with detail sufficient to enable the
Secretary to evaluate whether the termination
is lawful and whether additional actions can be
taken by the Secretary to avoid the termination.
112
The notice shall include a statement that the
owner and the Secretary may agree to a re-
newal of the contract, thus avoiding the termi-
nation.
‘‘(B) 
REVIEW
OF
NOTICE
BY
SEC-
RETARY.—The Secretary shall review the no-
tice, shall consider whether additional actions
can be taken by the Secretary to avoid the ter-
mination, and shall ensure a proper adjustment
of the contract rents for the project in compli-
ance with the requirements of subsection (d)
and subparagraph (C) of this subsection. The
Secretary shall issue a written finding of the le-
gality of the termination and the reasons for
the termination, including the actions consid-
ered or taken to avoid the termination. Within
30 days after issuance of the findings, the
owner shall provide written notice to each ten-
ant of the decision, together with the written
findings of the Secretary regarding the termi-
nation. The Secretary and the owner shall com-
plete the actions under this paragraph not later
than the expiration of the 9-month period be-
ginning upon the date that the owner provides
113
written notice of termination under subpara-
graph (A).
‘‘(3) ADJUSTMENT OF CONTRACT RENT.—If an
owner provides notice of proposed termination under
paragraph (1)(A) or (2)(A) and the contract rent is
less than the maximum monthly rent for units as-
sisted under this section, the Secretary shall adjust
the contract rent based on the maximum monthly
rent for units assisted under this section and the
value of the low-income housing.
‘‘(4) NOTICE OF RENT INCREASES.—Each as-
sistance contract for assistance under this section
shall require the owner to notify tenants at least 90
days before the expiration of the contract of any
rent increase which may occur as a result of the ex-
piration of such contract.
‘‘(5) DEFINITION OF TERMINATION.—For pur-
poses of this subsection, the term ‘termination’
means the expiration of the assistance contract or
the refusal of the owner to renew an assistance con-
tract, which shall include the termination of tenancy
by an owner for business reasons.
‘‘(k) RENTAL ASSISTANCE
FOR MANUFACTURED
HOUSING.—
114
‘‘(1) IN GENERAL.—The Secretary may enter
into contracts to make assistance payments under
this subsection to assist low-income families by mak-
ing rental assistance payments on behalf of any such
family that utilizes a manufactured home as its prin-
cipal place of residence. In carrying out this sub-
section, the Secretary may—
‘‘(A) enter into annual contributions con-
tracts with public housing agencies pursuant to
which such agencies may enter into assistance
contracts to make such assistance payments to
the owners of such real property, if such owners
agree to make good faith efforts to ensure that
such property complies with local health and
safety standards for water and sewage systems;
or
‘‘(B) enter into such contracts directly
with the owners of such real property, if such
owners agree to make good faith efforts to en-
sure that such property complies with local
health and safety standards for water and sew-
age systems.
‘‘(2) USE OF ASSISTANCE.—Rental assistance
payments under this subsection may be made with
respect to the rental of the real property on which
115
is located a manufactured home that is owned by a
low-income family or with respect to the rental by
such a family of a manufactured home and the real
property on which it is located.
‘‘(3) ASSISTANCE FOR RENTAL OF MANUFAC-
TURED HOME SITE.—
‘‘(A) MAXIMUM MONTHLY RENT.—A con-
tract entered into pursuant to this paragraph
shall establish the maximum monthly rent (in-
cluding maintenance and management charges)
that the owner is entitled to receive for the
space on which a manufactured home is located
and with respect to which assistance payments
are to be made. The maximum monthly rent
shall not exceed an amount approved or estab-
lished by the Secretary.
‘‘(B) AMOUNT OF MONTHLY ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents real property that is assisted under this
paragraph, and on which is located a manufac-
tured home that is owned by such family shall
be the difference between the rent the family is
required to pay under section 3(a) and the sum
of—
116
‘‘(i) the monthly payment made by
such family to amortize the cost of pur-
chasing the manufactured home;
‘‘(ii) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary;
and
‘‘(iii) the maximum monthly rent per-
mitted with respect to the real property
which is rented by such family for the pur-
pose of locating its manufactured home;
except that in no case may such assistance ex-
ceed the total amount of such maximum month-
ly rent.
‘‘(4) ASSISTANCE FOR RENTAL OF MANUFAC-
TURED HOME AND SITE.—
‘‘(A) MAXIMUM
MONTHLY
RENT.—Con-
tracts entered into pursuant to this paragraph
shall establish the maximum monthly rent per-
mitted with respect to the manufactured home
and the real property on which it is located and
with respect to which assistance payments are
to be made. The maximum monthly rent shall
not exceed an amount approved or established
by the Secretary.
117
‘‘(B) AMOUNT OF MONTHLY ASSISTANCE
PAYMENT.—The amount of any monthly assist-
ance payment with respect to any family that
rents a manufactured home and the real prop-
erty on which it is located and that is assisted
under this paragraph shall be the difference be-
tween the rent the family is required to pay
under section 3(a) and the sum of—
‘‘(i) the monthly utility payments
made by such family, subject to reasonable
limitations prescribed by the Secretary;
and
‘‘(ii) the maximum monthly rent per-
mitted with respect to the manufactured
home and real property on which it is lo-
cated.
‘‘(5) ADJUSTMENT
OF
MAXIMUM
MONTHLY
RENTS.—The provisions of paragraphs (3) through
(7) of subsection (d) shall apply to the adjustments
of maximum monthly rents under this subsection.
‘‘(6) CONTRACT TERM.—Each contract entered
into under the subsection shall be for a term of not
less than one month and not more than 180 months;
except that in any case in which the manufactured
home park is substantially rehabilitated or newly
118
constructed, such term may not be less than 240
months, nor more than the maximum term for a
manufactured home loan permitted under section
2(b) of the National Housing Act.
‘‘(7) APPLICABILITY.—The Secretary may carry
out this subsection without regard to whether the
manufactured home park is existing, substantially
rehabilitated, or newly constructed.
‘‘(8) LIMITATION
ON
SUBSTANTIALLY
REHA-
BILITATED
AND
NEWLY
CONSTRUCTED
MANUFAC-
TURED HOME PARKS.—In the case of any substan-
tially rehabilitated or newly constructed manufac-
tured home park containing spaces with respect to
which assistance is made under this subsection, the
principal amount of the mortgage attributable to the
rental spaces within the park may not exceed an
amount established by the Secretary which is equal
to or less than the limitation for manufactured home
parks described in section 207(c)(3) of the National
Housing Act, and the Secretary may increase such
limitation in high cost areas in the manner described
in such section.
‘‘(9) OTHER
REQUIREMENTS.—The Secretary
may prescribe other terms and conditions necessary
for the purpose of carrying out this subsection and
119
that are consistent with the purposes of this sub-
section.
‘‘(l) SINGLE ROOM OCCUPANCY FACILITIES.—
‘‘(1) AUTHORITY.—In making assistance avail-
able under this section and assistance under section
441 and part V of subtitle F of title IV of the Stew-
art B. McKinney Homeless Assistance Act, the Sec-
retary may provide assistance with respect to resi-
dential properties in which some or all of the dwell-
ing units do not contain bathroom or kitchen facili-
ties, if the unit of general local government in which
the property is located and the local public housing
agency certify to the Secretary that the property
complies with local health and safety standards.
‘‘(2) WAIVER OF LIMITATIONS ON ASSISTANCE
FOR SINGLE PERSONS.—The Secretary may waive,
in appropriate cases, the limitation and preference in
section 3(b)(3)(A) with respect to the assistance
made available under this subsection.
‘‘(m) HOUSING FOR ELDERLY AND DISABLED FAMI-
LIES.—
‘‘(1) SHARED HOUSING.—To assist elderly fam-
ilies and disabled families (as defined in section
3(b)) who elect to live in a shared housing arrange-
ment in which they benefit as a result of sharing the
120
facilities of a dwelling with others in a manner that
effectively and efficiently meets their housing needs
and thereby reduces their costs of housing, the Sec-
retary shall permit assistance provided under this
section to be used by such families in such arrange-
ments. In carrying out this subsection, the Secretary
shall issue minimum habitability standards for the
purpose of ensuring decent, safe, and sanitary hous-
ing for such families while taking into account the
special circumstances of shared housing.
‘‘(2) PRIORITY
FOR
NONELDERLY
DISABLED
FAMILIES.—In allocating assistance under this sec-
tion, a public housing agency that serves more than
one unit of general local government may, at the dis-
cretion of the agency, give priority to disabled fami-
lies that are not elderly families.
‘‘(3) AUTHORITY
TO
PROVIDE
PREFERENCES
FOR THE ELDERLY AND RESERVE UNITS FOR THE
DISABLED.—Notwithstanding subsection (h)(2) or
(3), an owner of a covered section 8 housing project
(as such term is defined in section 659 of the Hous-
ing and Community Development Act of 1992) may
give preference for occupancy of dwelling units in
the project, and reserve units for occupancy, in ac-
121
cordance with subtitle D of title VI of the Housing
and Community Development Act of 1992.
‘‘(n) ADMINISTRATIVE FEES.—
‘‘(1) BASIC FEE FOR TENANT-BASED RENTAL
PROGRAM.—The Secretary shall establish a fee for
the costs incurred by a public housing agency in ad-
ministering the program for rental assistance under
this section, which shall be, together with other fees
authorized under this subsection, included in any
amounts provided to the public housing agency
under the annual contributions contract for the
agency. The amount of the fee for each month for
which a dwelling unit is covered by an assistance
contract shall be 8.2 percent of the fair market rent-
al established under subsection (e) for a 2-bedroom
existing rental dwelling unit in the market area of
the public housing agency. The Secretary may in-
crease the fee if necessary to reflect the higher costs
of administering small programs and programs oper-
ating over large geographic areas.
‘‘(2) OTHER FEES.—The Secretary shall also
establish reasonable fees (as determined by the Sec-
retary) for—
‘‘(A) the costs of preliminary expenses that
a public housing agency documents it has in-
122
curred in connection with new allocations of as-
sistance under the program for rental assist-
ance under this section, which shall not exceed
$275 per unit assisted;
‘‘(B) the costs incurred in assisting fami-
lies who experience difficulty (as determined by
the Secretary) in obtaining appropriate housing
under the program; and
‘‘(C) extraordinary costs approved by the
Secretary.
‘‘(3) BUDGET
COMPLIANCE.—The Secretary
may establish or increase a fee in accordance with
this subsection only to such extent or in such
amounts as are provided in appropriation Acts.
‘‘(4) FEES FOR 1995 AND 1996.—Notwithstand-
ing any other provision of this subsection, the basic
fee for the costs incurred by a public housing agency
in administering the program for rental assistance
under this section during fiscal years 1995 and 1996
shall be equal to the fee determined for fiscal year
1993 under section 11(a) of the HUD Demonstra-
tion Act of 1993.
‘‘(o) PORTABILITY OF ASSISTANCE.—
‘‘(1) AUTHORITY.—Except as provided in para-
graphs (3) and (4), any family on behalf of whom
123
is provided tenant-based rental assistance under this
section and who moves to an eligible dwelling unit
located within the same State, or the same or a con-
tiguous metropolitan statistical area, as the metro-
politan statistical area within which is located the
area of jurisdiction of the public housing agency ap-
proving the 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.—At the discretion of a public housing
agency, the agency may provide that a family not
living within the jurisdiction of a public housing
agency at the time such family applies for or re-
ceives assistance from the agency may use tenant-
based rental assistance under this section to rent an
eligible dwelling unit that is not located within the
124
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 original jurisdiction for not less than 12 con-
secutive months using assistance provided by such
agency.
‘‘(4) PROHIBITION OF PORTABILITY IN CASES
OF LEASE VIOLATION.—A family may not use ten-
ant-based rental assistance as provided in paragraph
(1) if the family has moved from a dwelling unit in
violation of the lease for the dwelling unit.
‘‘(5) ALLOCATIONS DUE TO PORTABILITY.—In
determining the amount of rental assistance pro-
vided under an annual contributions contract for any
fiscal year, the Secretary shall consider any reduc-
tion in the number of resident families incurred by
a public housing agency in the preceding fiscal year
as a result of the provisions of this subsection.
‘‘(6) PROVISION OF RENTAL ASSISTANCE FOR
PORTABILITY PURPOSES.—
‘‘(A) AMOUNT.—To the extent amounts for
assistance under this section that are reserved
under section 213(d)(4) of the Housing and
Community Development Act of 1974 are avail-
able in a fiscal year, the Secretary shall provide
125
rental assistance under this section in accord-
ance 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
(C)) 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 in a fiscal
year only if, during such fiscal year, the agency
has provided assistance pursuant to the first
sentence of paragraph (2) on behalf of families
who have moved into eligible dwelling units lo-
cated within the area of jurisdiction of the
agency in an amount not less than the lesser 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 the average annual number
126
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.—In select-
ing families for the provision of assistance under this sec-
tion, a public housing agency may not exclude or penalize
a family solely because the family resides in a public hous-
ing project.
‘‘(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-
127
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.
128
‘‘(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-
129
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.
‘‘(C) 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.
130
‘‘(D) REPORT.—The Secretary shall in-
clude in each annual report of the Secretary
under section 8 of the Department of Housing
and Urban Development Act information speci-
fying the number of families assisted pursuant
to this paragraph during the preceding 2-year
period and the number of communities in which
such assistance was used, describing the extent
of cooperation between public housing agencies
and public child welfare agencies in timely iden-
tifying families for which such assistance is ap-
propriate and in providing such assistance, and
describing any impediments to providing such
assistance.
‘‘(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
131
approved in appropriations Acts, the Secretary is au-
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-
132
half of low-income families shall notify such assisted
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) 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
133
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
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
134
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
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’’;
135
(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 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
136
(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’’;
(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
137
(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)—
(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)’’.
138
(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-
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’’.
139
(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
(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
140
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
(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-
141
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
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 family’s status 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
142
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)’’;
(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
143
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—
(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
144
‘‘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
(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—
145
(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’’.
(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
146
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’’.
(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)’’.
147
(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, 1996, 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-
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-
148
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.
(f) HOUSING CONSELING FOR HOMEOWNERSHIP AND
RENTAL CHOICE.—
(1) RENTAL COUNSELING.—Section 106(a) of
the Housing and Urban Development Act of 1968
(12 U.S.C. 1701x(a)) is amended by adding at the
end the following new paragraph:
‘‘(4) RENTAL COUNSELING.—The Secretary of Hous-
ing and Urban Development may contract with national,
State, or community-based entities (including local com-
munity action agencies receiving assistance under the
Community Services Block Grant Act), and consortia of
such entities, and local public or private organizations (in-
cluding public housing agencies) to carry out counseling
activities for current and prospective residents of public
housing and housing assisted under section 8 of the
United States Housing Act of 1937. Contractors shall be
selected on a competitive basis, in accordance with selec-
tion criteria determined by the Secretary. The contractors
shall carry activities prescribed by the Secretary. Each en-
tity receiving assistance pursuant to this paragraph shall
149
make counseling and assistance under this paragraph
available to low-income families who are current or pro-
spective residents of public housing and housing assisted
under section 8 of the United States Housing Act of 1937,
including counseling and assistance regarding housing op-
portunities in the area of jurisdiction of the public housing
agency involved and assistance in obtaining new rental
residences in areas within such jurisdiction not having
high concentrations of persons living in poverty.’’.
(2) NOTIFICATION.—Subparagraph (C) of sec-
tion 106(c)(5) of the Housing and Urban Develop-
ment Act of 1968 (12 U.S.C. 1701x(c)(5)(C)) is
amended to read as follows:
‘‘(C) NOTIFICATION.—Notification under
subparagraph (A) shall not be required with re-
spect to any loan for which the eligible home-
owner pays the amount overdue before the expi-
ration of the 45-day period under subparagraph
(B)(ii).’’.
SEC. 122. 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:
150
‘‘(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
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. 123. USE OF EXCESS RESIDUAL RECEIPTS.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development shall, in conjunction with State hous-
ing agencies, under which the Secretary, at the request
of owners of qualified projects, make amounts in the ac-
count for residual receipts or excess amounts for the quali-
fied projects available for use to expand the supply of af-
fordable housing.
151
(b) LIMITATION.—The Secretary may not make any
amounts available for use under this section from the ac-
count of a qualified project for residual receipts or excess
amounts unless the amount remaining in the account, to-
gether with replacement reserves for the project, is suffi-
cient (in the determination of the Secretary) to maintain,
manage, and preserve 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. 124. RENEWAL OF EXPIRING SECTION 8 CONTRACTS.
(a) REQUIREMENT.—Subject only to the availability
of budget authority to carry out this section, not later than
October 1, 1995, the Secretary of Housing and Urban De-
velopment shall make an offer to the owner of each hous-
ing project assisted under an expiring contract to extend
the term of the expiring contract for 24 months beyond
the date of the expiration of the contract.
152
(b) TERMS OF EXTENSION.—Except for terms or
conditions relating to the duration of the contract, the
terms and conditions under the extension provided pursu-
ant to this subsection of any expiring contract shall be
identical to the terms and conditions under the expiring
contract.
(c) DEFINITION OF EXPIRING CONTRACT.—For pur-
poses of this section, the term ‘‘expiring contract’’ means
a contract for assistance pursuant to section 8(b)(2) of
the United States Housing Act of 1937 (as such section
existed before October 1, 1983) having a term that expires
before October 1, 1996.
(d) DISPLACEMENT ASSISTANCE.—The Secretary of
Housing and Urban Development may make available to
tenants residing in units covered by an expiring contract
that is not extended pursuant to this section either—
(1) tenant-based assistance under section 8 of
the United States Housing Act of 1937; or
(2) a unit with respect to which project-based
assistance is provided under section 8 of the United
States Housing Act of 1937.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out this section.
153
SEC. 125. 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
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-
154
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).
Subtitle C—Homeownership Programs
SEC. 131. NATIONAL HOMEOWNERSHIP FUND.
Subtitle A of title III of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12701 note) is
amended to read as follows:
‘‘Subtitle A—National Homeownership Fund
‘‘SEC. 301. SHORT TITLE.
‘‘This subtitle may be cited as the ‘National Home-
ownership Fund Act’.
‘‘SEC. 302. AUTHORITY.
‘‘The Secretary of Housing and Urban Development
may make grants under this subtitle to States (including
State housing finance agencies), local housing finance
agencies, and nonprofit housing intermediaries to provide
assistance, in accordance with the provisions of this sub-
title, for the acquisition of principal residences for first-
time homebuyers (including homebuyers buying shares in
limited equity cooperatives).
155
‘‘SEC. 303. ELIGIBLE ASSISTANCE.
‘‘A grantee may use amounts received under this sub-
title only to provide assistance to first-time homebuyers
in the following manners:
‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance
payments to provide amounts for the downpayment
(including closing costs and other costs payable at
the time of closing) on a mortgage for the home-
buyer.
‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist-
ance payments to provide loans that have such terms
for payment of interest and principal as may be de-
termined by the grantee.
‘‘(3) CAPITALIZATION
OF
REVOLVING
LOAN
FUNDS.—To establish revolving loan funds (or to
make grants to public organizations or agencies to
establish such funds) to provide homeownership as-
sistance to eligible first-time homebuyers in accord-
ance with the provisions of this subtitle. Any grantee
under this subtitle (and any subgrantee of such a
grantee) shall provide an equal amount of local in-
vestment for such revolving loan fund and any pro-
ceeds or repayments from loans made under this
paragraph shall be returned to the revolving loan
fund established under this paragraph to be used for
purposes related to this section.
156
‘‘(4) INTEREST RATE BUYDOWNS.—Assistance
payments so that the rate of interest payable on a
mortgage by the homebuyer does not exceed 6 per-
cent.
‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.
‘‘(a) HOMEBUYER.—Assistance may be provided only
to homebuyers meeting the following requirements:
‘‘(1) FIRST-TIME
HOMEBUYER.—The home-
buyer is an individual who—
‘‘(A)(i) (and whose spouse) has had no
ownership in a principal residence during the 3-
year period ending on the date of purchase of
the property with respect to which assistance
payments are made under this subtitle;
‘‘(ii) is a displaced homemaker who, except
for owning a home with his or her spouse or re-
siding in a home owned by the spouse, meets
the requirements of clause (i); or
‘‘(iii) is a single parent who, except for
owning a home with his or her spouse or resid-
ing in a home owned by the spouse while mar-
ried, meets the requirements of clause (i); and
‘‘(B) meets the requirements of subpara-
graph (A) (i), (ii), or (iii), except for owning, as
a principal residence, a dwelling unit whose
157
structure is not permanently affixed to a per-
manent foundation in accordance with local or
other applicable regulations.
‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The
aggregate annual income of the homebuyer and the
members of the family of the homebuyer residing
with the homebuyer, for the 12-month period preced-
ing the date of the application of the homebuyer for
assistance under this subtitle, does not exceed 115
percent of the median income for a family of 4 per-
sons (adjusted by family size) in the applicable met-
ropolitan statistical area (or such other area that the
Secretary determines for areas outside of metropoli-
tan statistical areas). The Secretary shall provide for
certification of such income for purposes of initial
eligibility for assistance payments under this sub-
title.
‘‘(b) MORTGAGE.—Assistance may be provided only
for mortgages meeting the following requirements:
‘‘(1) PRINCIPAL
RESIDENCE.—The property
subject to the mortgage is a single-family residence
or unit in a cooperative (including any manufactured
home park owned by residents or owned by nonprofit
organizations for future ownership by residents) or
condominium, or a single family residence located on
158
leased land owned by a community land trust, and
is the principal residence of the homebuyer.
‘‘(2) 
MAXIMUM
MORTGAGE
AMOUNT.—The
principal obligation of the first mortgage and any
second mortgage assistance provided under this sub-
title does not exceed the principal amount that could
be insured under section 203(b) of the National
Housing Act with respect to a property having the
same number of dwelling units.
‘‘(c) 
MINIMUM
DOWNPAYMENT.—For 
first-time
homebuyers to receive downpayment assistance under sec-
tion 303(a)(1), the homebuyer shall have paid not less
than 1 percent of the cost of acquisition of the property
(excluding any mortgage insurance premiums paid at the
time the mortgage is insured), as such cost is estimated
by the Secretary.
‘‘SEC. 305. COUNSELING REQUIREMENTS.
‘‘Each grantee under this subtitle shall ensure that
each homebuyer receiving assistance under this subtitle
from the grantee (or any subgrantee of such grantee) shall
be provided prepurchase and postpurchase homeownership
counseling from individuals certified by the Secretary
under section 106(e) of the Housing and Urban Develop-
ment Act of 1968.
159
‘‘SEC. 306. ALLOCATION OF GRANT AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary may make a grant
under this subtitle only to a State (including a State hous-
ing finance agency), local housing finance agency, or non-
profit housing intermediary that submits to the Secretary
an application under this section that is approved by the
Secretary. Applications shall be made in such form and
in accordance with such procedures as the Secretary shall
establish.
‘‘(b) MINIMUM
REQUIREMENTS.—An application
under this section shall contain a plan that describes how
the applicant will achieve the objectives of this subtitle.
The application shall include—
‘‘(1) a description of the geographic area, in-
cluding the revitalization area included, to be cov-
ered by the program to provide assistance under this
subtitle;
‘‘(2) the characteristics of the households to be
served by the program;
‘‘(3) a description and evidence of the commit-
ment of other public and private resources to be
made available in the revitalization area and other
areas in which homebuyers receive assistance under
this subtitle;
‘‘(4) a description of any secondary market and
private mortgage insurance involvement and commit-
160
ment in connection with assistance under this sub-
title;
‘‘(5) a description of how prepurchase and
postpurchase counseling will be provided to home-
buyers assisted under this subtitle;
‘‘(6) a description of any restrictions on resale
and profits;
‘‘(7) a description of existing affordable housing
programs and resources available to undertake reha-
bilitation of properties when needed;
‘‘(8) a description of the process for award and
disbursement of assistance to homebuyers; and
‘‘(9) a description of the history of the appli-
cant in undertaking similar projects.
‘‘(c) SELECTION.—The Secretary shall allocate
amounts available in any fiscal year for assistance under
this subtitle to States (including State housing finance
agencies), local housing finance agencies, or nonprofit
housing intermediaries for homebuyers through a national
competition in accordance with criteria established by the
Secretary. The criteria shall include the extent to which
the applicant has experience in providing homeownership
opportunities for low- and moderate-income households.
‘‘(d) TARGETING
FOR REVITALIZATION AREAS.—
Each grantee under this subtitle shall use not more than
161
50 percent of any amounts received under this subtitle for
assistance under section 303(a) for homebuyers purchas-
ing residences in revitalization areas using mortgages in-
sured under section 203(b) of the National Housing Act.
‘‘SEC. 307. REPORT.
‘‘Not later than 18 months after the date of the issu-
ance of final regulations pursuant to section 310, the Sec-
retary shall submit to the Congress a report stating the
amount of loans made in revitalization areas and in other
areas, the amount of loans insured under the National
Housing Act made in connection with assistance under
this section and the amount of privately insured loans
made in connection with such assistance, and an analysis
of the effectiveness of such assistance in assisting first-
time homebuyers.
‘‘SEC. 308. DEFINITIONS.
‘‘For purposes of this subtitle:
‘‘(1) 
ASSISTANCE.—The 
term 
‘assistance’
means—
‘‘(A) any downpayment assistance provided
under section 303(1);
‘‘(B) any second mortgage loan provided
under section 303(2);
‘‘(C) any loan provided from a revolving
fund established under section 303(3); and
162
‘‘(D) any payment for buydown of an in-
terest rate provided under section 303(4).
‘‘(2) COMMUNITY
LAND
TRUST.—The term
‘community land trust’ has the meaning given the
term in section 233 of the Cranston-Gonzalez Na-
tional Affordable Housing Act.
‘‘(3) DISPLACED HOMEMAKER.—The term ‘dis-
placed homemaker’ means an individual who—
‘‘(A) is an adult;
‘‘(B) has not worked full-time, full-year in
the labor force for a number of years, but has
during such years, worked primarily without re-
muneration to care for the home and family;
and
‘‘(C) is unemployed or underemployed and
is experiencing difficulty in obtaining or up-
grading employment.
‘‘(4) REVITALIZATION AREA.—The term ‘revi-
talization area’ means—
‘‘(A) an empowerment zone or enterprise
community approved under Subchapter U of
Chapter 1 of the Internal Revenue Code of
1986, or an equivalent State-approved enter-
prise zone; and
163
‘‘(B) a neighborhood that, in the deter-
mination of the Secretary, is targeted by a unit
of general local government for revitalization
using coordinated affordable housing programs
and enhanced supportive services.
‘‘(5) NONPROFIT
HOUSING
INTERMEDIARY.—
The term ‘nonprofit housing intermediary’ means a
nonprofit organization that the Secretary determines
has among its principal purposes activities described
in clauses (1) and (2) of section 802(a) of the Hous-
ing and Community Development Act of 1974.
‘‘(6) SINGLE PARENT.—The term ‘single par-
ent’ means an individual who—
‘‘(A) is unmarried or legally separated
from a spouse; and
‘‘(B)(i) has 1 or more minor children for
whom the individual has custody or joint cus-
tody; or
‘‘(ii) is pregnant.
‘‘(7) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(8) STATE.—The term ‘State’ means the
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam,
164
the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
‘‘(9) STATE HOUSING FINANCE AGENCY.—The
term ‘State housing finance agency’ has the meaning
given the term in section 802(b) of the Housing and
Community Development Act of 1974.
‘‘(10) LOCAL HOUSING FINANCE AGENCY.—The
term ‘local housing finance agency’ means a housing
finance agency of any city, county, town, township,
parish, village, or other general purpose subdivision
of a State, or of any combination of such political
subdivisions recognized by the Secretary, or any
other agency or instrumentality of such an entity
that carries out activities described in section 303.
‘‘SEC. 310. REGULATIONS.
‘‘Not later than 10 days after the date of the enact-
ment of the Housing and Community Development Act
of 1994, the Secretary shall issue an interim rule to imple-
ment this subtitle. The Secretary shall issue final regula-
tions necessary to implement this subtitle not later than
90 days after issuance of such interim rule.’’.
SEC. 132. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act (12
U.S.C. 1715z(r)) is amended—
165
(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-
166
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.’’.
SEC. 133. RESIDENTIAL LEAD-BASED PAINT HAZARD RE-
DUCTION.
(a) ELIGIBLE HOUSING.—Section 1011 of the Hous-
ing and Community Development Act of 1992 (42 U.S.C.
4852) is amended—
(1) by striking subsection (a) and inserting the
following new subsection:
‘‘(a) AUTHORITY AND ELIGIBLE HOUSING.—
‘‘(1) AUTHORITY.—The Secretary may provide
grants to eligible applicants to evaluate and reduce
lead-based paint hazards in housing that meets the
requirements under paragraphs (2) and (3) and is
not federally assisted housing, federally owned hous-
ing, or public housing, in accordance with the provi-
sions of this section.
‘‘(2) ELIGIBLE HOUSING.—Housing that meets
the requirements under this paragraph is the follow-
ing housing:
‘‘(A) RENTAL HOUSING.—In the case of
rental housing, housing in which at least 50
167
percent of the dwelling units are occupied by or
available to households with incomes not ex-
ceeding 50 percent of the median income for
the area; as defined by the Secretary, and the
remainder of the dwelling units are occupied by
or available to households with incomes not ex-
ceeding 80 percent of the median income for
the area, as defined by the Secretary.
‘‘(B) OWNER-OCCUPIED HOUSING.—In the
case of owner-occupied housing, a dwelling that
is the principal residence of a household with an
income not exceeding 80 percent of the median
income for the area, as defined by the Sec-
retary.
‘‘(3) LIMITATIONS ON USE OF AMOUNTS.—
‘‘(A) RENTAL HOUSING.—In the case of
rental housing for which lead hazard reduction
activities are conducted using grant amounts
under this section—
‘‘(i) 
notwithstanding 
paragraph
(2)(A), for housing with 5 or more dwell-
ing units, not more than 20 percent of
such remaining dwelling units may be oc-
cupied by households with incomes exceed-
168
ing 80 percent of the median income for
the area, as defined by the Secretary; and
‘‘(ii) all vacant dwelling units for
which such activities have been conducted
shall be made available only to households
with a child or children under 6 years of
age, and among such households priority
shall be given to households with incomes
not exceeding 50 percent of the median in-
come for the area, as defined by the Sec-
retary.
‘‘(B) OWNER-OCCUPIED HOUSING.—In the
case of owner-occupied housing for which lead
hazard reduction activities are conducted using
grant amounts under this section, 90 percent of
the dwelling units for which such activities are
conducted shall be dwelling units occupied by a
household with a child or children under 6
years of age or dwelling units in which a child
of such age regularly spends a substantial por-
tion of his or her time.
‘‘(4) EXCEPTION
TO
ELIGIBLE
HOUSING
RE-
QUIREMENTS.—Notwithstanding 
paragraph 
(2),
housing that qualifies as affordable housing under
section 215 of the Cranston-Gonzalez National Af-
169
fordable Housing Act (including housing that re-
ceives assistance under section 8 of the United
States Housing Act of 1937) and for which activities
assisted under this section are to be conducted using
amounts made available to carry out this section for
fiscal year 1993 shall be considered housing that
meets the requirements of paragraph (2) and shall
not be subject to the requirements of paragraph (3),
but only if the recipient of such assistance elects, be-
fore commencing such activities with such assist-
ance, to be subject to the provisions of this para-
graph and the Secretary approves such election. Any
such recipient making such an election may not use
such assistance to carry out activities under this sec-
tion with respect to housing that meets the require-
ments of paragraphs (2) and (3).’’; and
(2) by striking ‘‘priority housing’’ each place it
appears and inserting ‘‘housing that meets the re-
quirements under subsection (a)’’.
(b) HUD RESEARCH.—
(1) CONDUCTING OF RESEARCH.—Section 1052
of the Housing and Community Development Act of
1992 (42 U.S.C. 4854a) is amended by inserting
after ‘‘other Federal agencies,’’ the following: ‘‘either
directly, or indirectly under contract or otherwise,’’.
170
(2) FUNDING.—Section 1053 of the Housing
and Community Development Act of 1992 (42
U.S.C. 4854b) is amended to read as follows:
‘‘SEC. 1054. FUNDING.
‘‘Of the total amount approved in appropriation Acts
under section 1011(p), there shall be set aside to carry
out this part $5,000,000 for fiscal year 1995 and
$5,000,000 for fiscal year 1996.’’.
(3) OTHER ACTIVITIES.—Part 1 of subtitle D
of title X of the Housing and Community Develop-
ment Act of 1992 (42 U.S.C. 4854 et seq.) is
amended by inserting after section 1052 the follow-
ing new section:
‘‘SEC. 1053. OTHER RESEARCH AND ASSISTANCE ACTIVI-
TIES.
‘‘The Secretary may use amounts available to carry
out this part to undertake, either directly, or indirectly
under contract or otherwise, pursuant to title V of the
Housing and Urban Development of 1970, such studies,
tests (including pilot tests of new or revised programs),
evaluations, demonstrations, education of the public, and
preparation of training materials, as are consistent with
the purposes of this Act.’’.
171
(c) DEFINITIONS.—Section 1004 of the Housing and
Community Development Act of 1992 (42 U.S.C. 4851b)
is amended—
(1) by striking paragraph (20); and
(2) by redesignating paragraphs (21) through
(27) as paragraphs (20) through (26), respectively.
SEC. 134. FEDERAL DEPOSIT INSURANCE CORPORATION
AFFORDABLE HOUSING PROGRAM.
(a) REAUTHORIZATION.—Section 40(b) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831q(b)) is
amended—
(1) in paragraph (1), by striking ‘‘during’’ and
all that follows through ‘‘paragraph (2)(A)’’ and in-
serting ‘‘until the end of fiscal year 1997’’;
(2) in paragraph (2)(A), in the matter preced-
ing clause (i), by striking ‘‘3-year’’; and
(3) in paragraph (2)(C), by striking ‘‘3-year’’.
(b) FACILITATION OF PROGRAM.—Section 40 of the
Federal Deposit Insurance Act is amended by adding at
the end the following new subsection:
‘‘(r) FACILITATION OF PROGRAM.—Notwithstanding
any provision of this section or any other provision of law,
the Corporation shall be considered to be in compliance
with this section if (in the sole discretion of the Corpora-
tion) the Corporation at any time modifies, amends, or
172
waives any provisions of this section to maximize the effi-
cient use of amounts appropriated to carry out this sec-
tion. The Corporation shall not be subject to suit for any
failure to comply with the requirements of this section.’’.
SEC. 135. STATE AGENCIES AS SURETIES.
Section 9304 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(c) STATE AGENCIES.—A State agency, including
any financing authority established by any State, which
meets the requirements of paragraphs (2) and (3) of sub-
section (a) may be treated as a surety corporation for pur-
poses of this chapter. Notwithstanding any other provision
of law, user fees collected by the Financial Management
Services incident to sections 9304 through 9309 of this
title shall be credited to the appropriation of that agency
and may be retained without fiscal year limitation to carry
out the provisions of such sections.’’.
Subtitle D—Home Investment Partnerships
SEC. 141. ELIGIBLE USES OF INVESTMENT.
Section 212(a)(1) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(a)(1)) is
amended by striking ‘‘financing costs’’ and inserting
‘‘costs of financing (including credit enhancements, loan
guarantees, and debt service reserves)’’.
173
SEC. 142. QUALIFICATION AS AFFORDABLE RENTAL HOUS-
ING.
Section 215(a) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(a)) is amend-
ed—
(1) in paragraph (1)(A), by striking ‘‘bears
rents not greater than’’ and inserting ‘‘is occupied
by tenants who pay as rent’’;
(2) in paragraph (3), by inserting after the pe-
riod at the end of the first sentence the following
new sentence: ‘‘A tenant occuping a rental unit as-
sisted with amounts provided under this title shall
be considered to be a very low-income family until
the household’s income increases to more than 140
percent of the applicable income limitation under
paragraph (1)(B).’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) 
RENTAL
SUBSIDIES.—Notwithstanding
paragraph (1), housing shall not be considered to
fail to qualify as affordable housing under this title
because it includes units for which—
‘‘(A) payments are made under section 8
of the United States Housing Act of 1937 or
any comparable rental assistance program; and
174
‘‘(B) because of increases in the income of
tenants of the housing, the rent paid by the
tenants under the assistance program with re-
spect to such unit exceeds 30 percent of the ad-
justed income of a family whose income equals
65 percent of the median income for the area.’’.
SEC. 143. REPAYMENT OF INVESTMENT.
Section 219 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12749) is amended by
adding at the end the following new subsection:
‘‘(d) REPAYMENT
OF
MATCHING
AMOUNTS.—
Amounts provided by a participating jurisdiction pursuant
to section 220 for housing not assisted under this title
shall be recognized for purposes of section 220(a), not-
withstanding that such amounts are not repaid to the ju-
risdiction’s HOME Investment Trust Fund, if such
amounts are drawn from an affordable housing program
operated by the jurisdiction, repaid to the program, and
available for use only for the program or for providing
housing that qualifies as affordable housing.’’.
SEC. 144. MATCHING REQUIREMENTS.
Section 220 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12750) is amended—
175
(1) in the first sentence of subsection (a), by in-
serting ‘‘the participating jurisdiction certifies’’ be-
fore ‘‘qualifies’’; and
(2) in subsection (b)(1)—
(A) in subparagraph (A), by striking ‘‘or’’;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(C) is made with respect to housing that
is substantially equivalent to housing that quali-
fies as affordable housing under section 215.’’.
SEC. 145. LABOR REQUIREMENTS.
Section 286(b) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12836(b)) is amended
by adding at the end the following new sentence: ‘‘Sub-
section (a) shall not apply in the case of housing for which
a site is acquired or for which the homebuyer is assisted,
but which is not constructed, using funds made available
under this subtitle.’’.
Subtitle E—Supportive Housing Programs
SEC. 151. SUPPORTIVE HOUSING FOR THE ELDERLY.
(a) ELDER
COTTAGE
HOUSING
UNITS.—Section
202(b) of the Housing Act of 1959 (12 U.S.C. 1701q(b))
is amended by inserting after the second sentence the fol-
176
lowing new sentence: ‘‘Such assistance may also be used
to finance the acquisition and installation of elder cottage
housing units that are small, freestanding, barrier-free,
energy efficient, removable and designed to be installed
adjacent to existing 1- to 4-family dwellings and are used
as supportive housing for the elderly in accordance with
this section.’’.
(b) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
202(k)(3) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(3)) is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly’ means an elderly person whose level of functional
disability jeopardizes her or his ability to continue to live
independently. The Secretary shall, to the extent possible,
develop assessment measures of functional disability that
are appropriate for purposes of this section and will pro-
vide for effective use of the program under this section
with other programs providing supportive services.’’.
(c) REPEAL OF DEMONSTRATION.—Section 806 of
the Cranston-Gonzalez National Affordable Housing Act
(12 U.S.C. 1701q note) is hereby repealed.
177
SEC. 152. SUPPORTIVE HOUSING FOR PERSONS WITH DIS-
ABILITIES.
(a) PHA’S AS ELIGIBLE SPONSORS.—Section 811 of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 8013) is amended—
(1) in the first sentence of subsection (f), by in-
serting ‘‘and public housing agencies’’ after ‘‘private
nonprofit organizations’’; and
(2) in subsection (k)—
(A) in paragraph (5), by striking ‘‘private
nonprofit organization’’ and inserting ‘‘eligible
sponsor’’; and
(B) by adding at the end the following new
paragraph:
‘‘(10) The term ‘eligible sponsor’ means—
‘‘(A) in the case of capital advances under
subsection (b)(2) and project rental assistance
under subsections (b) (2) and (3)—
‘‘(i) a private nonprofit organization;
and
‘‘(ii) a public housing agency, but only
in the case of a jurisdiction for which the
Secretary determines that, during the 3-
year period ending upon the date of the
application of the agency for assistance
under subsection (b) (2) or (3)—
178
‘‘(I) no private nonprofit organi-
zation has submitted an application
under subsection (f) for assistance for
a project located in such area; and
‘‘(II) no private nonprofit organi-
zation has had such an application ap-
proved for a project located in such
area; and
‘‘(B) in the case of tenant-based rental as-
sistance under subsection (b)(1)—
‘‘(i) a private nonprofit organization;
and
‘‘(ii) a public housing agency, but only
to the extent that such assistance is used
for providing assistance in accordance with
an allocation plan for the agency under
section 7(f) of the United States Housing
Act of 1937.’’.
(b) RENTAL ASSISTANCE
FOR EXISTING BUILD-
INGS.—Section 811 of the Cranston-Gonzalez National
Affordable Housing Act is amended—
(1) in subsection (d)(2), by adding at the end
the following new sentence: ‘‘The Secretary may
enter into contracts with private, nonprofit organiza-
tions to provide project rental assistance for sup-
179
portive housing for persons with disabilities, regard-
less of whether the housing is developed with capital
advances under this section.’’;
(2) in subsection (e)(1), by inserting ‘‘with cap-
ital advances’’ after ‘‘assisted’’;
(3) by striking the first 2 sentences of sub-
section (e)(2) and inserting the following new sen-
tences: ‘‘The initial term of a contract entered into
under subsection (d)(2) shall be 240 months for
housing developed with a capital advance, and shall
be not more than 60 months for housing not devel-
oped with a capital advance. The Secretary shall, to
the extent approved in appropriation Acts, extend
any expiring contracts for a term of not less than 60
months.’’;
(4) in subsection (g)(1), by inserting ‘‘(if appli-
cable)’’ after ‘‘develop’’;
(5) in subsections (g)(3) and (g)(5), by insert-
ing ‘‘design or’’ before ‘‘proposed’’ each place it ap-
pears;
(6) in subsection (j), by striking paragraph (3)
and inserting the following new paragraph:
‘‘(3) SITE CONTROL.—
‘‘(A) CAPITAL ADVANCES.—In the case of
housing to be assisted with capital advances
180
under this section, an applicant may obtain
ownership or control of a suitable site different
from the site specified in the initial application.
If an applicant fails to obtain ownership or con-
trol of the site within 1 year after notification
of an award for assistance, the assistance shall
be recaptured and reallocated.
‘‘(B) PROJECT
RENTAL
ASSISTANCE.—In
the case of housing to be assisted only with
project rental assistance, the applicant shall
have ownership or control of a suitable site at
the time of application. The Secretary may ap-
prove a change in site at any time from the
date the application is submitted to the expira-
tion date of the rental assistance contract.’’;
(7) in subsection (j)(4), by striking ‘‘The’’ and
inserting the following: ‘‘In the case of housing as-
sisted with capital advances under this section, the’’;
(8) in the second sentence of subsection (k)(1),
by striking ‘‘the development of’’;
(9) in subsection (k)(5), by inserting before the
period at the end the following: ‘‘, or that receives
rental assistance under this section to operate a
project for supportive housing for persons with dis-
abilities’’; and
181
(10) in subsection (m)(3), by striking ‘‘(1)’’ and
inserting ‘‘(2)’’.
(c) AUTHORITY TO PROVIDE ASSISTANCE.—Section
811 of the Cranston-Gonzalez National Affordable Hous-
ing Act is amended—
(1) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) GENERAL AUTHORITY.—The Secretary may
provide assistance to eligible sponsors to expand the sup-
ply of supportive housing for persons with disabilities.
Such assistance shall be provided as—
‘‘(1) tenant-based rental assistance on behalf of
eligible persons with disabilities, in accordance with
subsection (d)(4);
‘‘(2) capital advances in accordance with sub-
section (d)(1), together with contracts for project
rental assistance in accordance with subsection
(d)(2); or
‘‘(3) contracts for project rental assistance in
accordance with subsection (d)(2).’’;
(2) in subsection (d)(1), by adding at the end
the following new sentences: ‘‘Capital advances may
be used to finance the acquisition, acquisition and
moderate rehabilitation, construction, reconstruction,
or moderate or substantial rehabilitation of housing,