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community shall be used for the provision of such
services.
SEC. 274. AUTHORIZATION OF APPROPRIATIONS.
(a) BLOCK GRANTS.—There is authorized to be ap-
propriated, 
for 
block 
grants 
under 
this 
title,
$5,500,000,000 for each of fiscal years 1996, 1997, 1998,
1999, and 2000.
(b) OPERATION SAFE HOME.—There is authorized to
be appropriated, for assistance for relocating residents of
public housing under the operation safe home program of
the Department of Housing and Urban Development (in-
cluding assistance for costs of relocation and housing as-
sistance under title III), $700,000 for each of fiscal years
1996, 1997, 1998, 1999, and 2000.
TITLE III—CHOICE-BASED RENT-
AL 
HOUSING 
AND 
HOME-
OWNERSHIP ASSISTANCE FOR
LOW-INCOME FAMILIES
Subtitle A—Grants and Allocation
SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE
GRANTS.
To the extent that amounts to carry out this title are
made available, the Secretary may make grants to local
housing and management authorities for each fiscal year
to provide housing assistance under this title.
104
SEC. 302. GRANT AGREEMENTS.
(a) AUTHORITY.—The Secretary may make a grant
under this title to a local housing and management au-
thority for a fiscal year only if the Secretary has entered
into a grant agreement under this section with the local
housing and management authority, under which the Sec-
retary shall provide such authority with grant amounts (in
the amount of the allocation for the authority determined
pursuant to section 303) for housing assistance under this
title for low-income families.
(b) USE FOR HOUSING ASSISTANCE.—A grant agree-
ment shall require a local housing and management au-
thority to use amounts from a grant under this title to
provide housing assistance in any manner authorized
under this title.
(c) ANNUAL OBLIGATION OF AUTHORITY.—A grant
under this title shall provide amounts for housing assist-
ance for 1 fiscal year covered by the grant agreement.
(d) ENFORCEMENT OF HOUSING QUALITY REQUIRE-
MENTS.—Each grant agreement shall require the local
housing and management authority administering assist-
ance provided under the agreement—
(1) to ensure compliance, under each housing
assistance payments contract entered into pursuant
to such grant, with the provisions of such contract
included pursuant to section 351(c)(4); and
105
(2) to establish procedures for assisted families
to notify the authority of any noncompliance with
such provisions.
SEC. 303. ALLOCATION OF AMOUNTS.
(a) FORMULA ALLOCATION.—
(1) IN GENERAL.—When amounts for grants
under this title are first made available for reserva-
tion, after reserving amounts in accordance with
subsection (c) and section 109, the Secretary shall
allocate such amounts on the basis of a formula es-
tablished in accordance with paragraph (2) and is
based on appropriate criteria to reflect the needs of
different States, areas, and communities, using the
most recent data available from the Bureau of the
Census of the Department of Commerce and the
comprehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National Af-
fordable Housing Act for the applicable jurisdiction.
(2) REGULATIONS.—The formula under this
subsection shall be established by regulation issued
by the Secretary. Notwithstanding sections 563(a)
and 565(a) of title 5, United States Code, any pro-
posed regulation containing such formula shall be is-
sued pursuant to a negotiated rulemaking procedure
under subchapter of chapter 5 of such title and the
106
Secretary shall establish a negotiated rulemaking
committee for development of any such proposed
regulations.
(b) ALLOCATION CONSIDERATIONS.—
(1) LIMITATION
ON
REALLOCATION
FOR
AN-
OTHER STATE.—Any amounts allocated for a State
or areas or communities within a State that are not
likely to be used within a the fiscal year for which
the grant is made shall not be reallocated for use in
another State, unless the Secretary determines that
other areas or communities within the same State
(that are eligible for grant amounts under this title)
cannot use the amounts within the same fiscal year.
(2) EFFECT OF RECEIPT OF TENANT-BASED AS-
SISTANCE FOR DISABLED FAMILIES.—The Secretary
may not consider the receipt by a local housing and
management authority of assistance under section
811(b)(1) of the Cranston-Gonzalez National Afford-
able Housing Act, or the amount received, in ap-
proving amounts under this title for the authority or
in determining the amount of such assistance to be
provided to the authority.
(3) EXEMPTION
FROM
FORMULA
ALLOCA-
TION.—The formula allocation requirements of sub-
section (a) shall not apply to any assistance under
107
this title that is approved in appropriation Acts for
uses that the Secretary determines are incapable of
geographic allocation, including amendments of ex-
isting housing assistance payments contracts, re-
newal of such contracts, assistance to families that
would otherwise lose assistance due to the decision
of the project owner to prepay the project mortgage
or not to renew the housing assistance payments
contract, assistance to prevent displacement or to
provide replacement housing in connection with the
demolition or disposition of public and Indian hous-
ing, assistance for relocation from public housing,
assistance in connection with protection of crime
witnesses, assistance for conversion from leased
housing contracts under section 23 of the United
States Housing Act of 1937 (as in effect before the
enactment of the Housing and Community Develop-
ment Act of 1974), and assistance in support of the
property disposition and loan management functions
of the Secretary.
(c) SET-ASIDE FOR INDIAN HOUSING ASSISTANCE.—
The Secretary shall allocate, in a manner determined by
the Secretary, a portion of the amounts made available
in each fiscal year for grants under this title for grants
for Indian housing authorities.
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(d) 
RECAPTURE
UPON
TURNOVER
FOR
REALLOCATION.—
(1) AUTHORITY.—In each fiscal year, from any
budget authority made available for assistance under
this title or section 8 of the United States Housing
Act of 1937 (as in effect before the enactment of
this Act) that is obligated to a local housing and
management authority but remains unobligated by
the authority upon the expiration of the 8-month pe-
riod beginning upon the initial availability of such
amounts for obligation by the authority, the Sec-
retary may deobligate an amount, as determined by
the Secretary, not exceeding 50 percent of such
budget authority.
(2) USE.—The Secretary may reallocate and
transfer any amounts deobligated under paragraph
(1) only to local housing and management authori-
ties in areas that the Secretary determines have re-
ceived less funding than other areas, based on the
relative needs of all areas.
SEC. 304. ADMINISTRATIVE FEES.
(a) ESTABLISHMENT OF FEE AND USE OF GRANT
AMOUNTS.—The Secretary shall establish a fee for the
costs incurred by a local housing and management author-
ity in administering the program for housing assistance