HR 5384 RS 
WATERSHED SURVEYS AND PLANNING 
For necessary expenses to conduct research, inves-
tigation, and surveys of watersheds of rivers and other wa-
terways, and for small watershed investigations and plan-
ning, in accordance with the Watershed Protection and 
Flood
Prevention
Act
(16
U.S.C.
1001–1009), 
$6,022,000. 
WATERSHED AND FLOOD PREVENTION OPERATIONS 
For necessary expenses to carry out preventive meas-
ures, including but not limited to research, engineering op-
erations, methods of cultivation, the growing of vegetation, 
rehabilitation of existing works and changes in use of land, 
in accordance with the Watershed Protection and Flood 
Prevention Act (16 U.S.C. 1001–1005 and 1007–1009), 
the provisions of the Act of April 27, 1935 (16 U.S.C. 
590a–f), and in accordance with the provisions of laws re-
lating to the activities of the Department, $40,000,000, 
to remain available until expended; of which up to 
$10,000,000 may be available for the watersheds author-
ized under the Flood Control Act (33 U.S.C. 701 and 16 
U.S.C. 1006a): Provided, That not to exceed $20,000,000 
of this appropriation shall be available for technical assist-
ance: Provided further, That not to exceed $1,000,000 of 
this appropriation is available to carry out the purposes 
of the Endangered Species Act of 1973 (Public Law 93– 
205), including cooperative efforts as contemplated by
HR 5384 RS 
that Act to relocate endangered or threatened species to 
other suitable habitats as may be necessary to expedite 
project construction. 
WATERSHED REHABILITATION PROGRAM 
For necessary expenses to carry out rehabilitation of 
structural measures, in accordance with section 14 of the 
Watershed Protection and Flood Prevention Act (16 
U.S.C. 1012), and in accordance with the provisions of 
laws
relating
to
the
activities
of
the
Department, 
$31,245,000, to remain available until expended. 
RESOURCE CONSERVATION AND DEVELOPMENT 
For necessary expenses in planning and carrying out 
projects for resource conservation and development and 
for sound land use pursuant to the provisions of sections 
31 and 32 of the Bankhead-Jones Farm Tenant Act (7 
U.S.C. 1010–1011; 76 Stat. 607); the Act of April 27, 
1935 (16 U.S.C. 590a–f); and subtitle H of title XV of 
the Agriculture and Food Act of 1981 (16 U.S.C. 3451– 
3461), $50,787,000, to remain available until expended: 
Provided, That the Secretary shall enter into a cooperative 
or contribution agreement, within 45 days of enactment 
of this Act, with a national association regarding a Re-
source Conservation and Development program and such 
agreement shall contain the same matching, contribution 
requirements, and funding level, set forth in a similar co-
operative or contribution agreement with a national asso-
HR 5384 RS 
ciation in fiscal year 2002: Provided further, That not to 
exceed $3,411,000 shall be available for national head-
quarters activities. 
TITLE III 
RURAL DEVELOPMENT PROGRAMS 
OFFICE OF THE UNDER SECRETARY FOR RURAL 
DEVELOPMENT 
For necessary salaries and expenses of the Office of 
the Under Secretary for Rural Development to administer 
programs under the laws enacted by the Congress for the 
Rural Housing Service, the Rural Business-Cooperative 
Service, and the Rural Utilities Service, $692,000. 
RURAL COMMUNITY ADVANCEMENT PROGRAM 
(INCLUDING TRANSFERS OF FUNDS) 
For the cost of direct loans, loan guarantees, and 
grants, as authorized by 7 U.S.C. 1926, 1926a, 1926c, 
1926d, and 1932, except for sections 381E–H and 381N 
of the Consolidated Farm and Rural Development Act, 
$699,893,000 (increased by $5,000,000) (increased by 
$1,500,000) (reduced by $1,500,000), to remain available 
until expended, of which $49,477,000 (increased by 
$5,000,000) shall be for rural community programs de-
scribed in section 381E(d)(1) of such Act; of which 
$561,252,000 shall be for the rural utilities programs de-
scribed in sections 381E(d)(2), 306C(a)(2), and 306D of 
such Act, of which not to exceed $500,000 shall be avail-
HR 5384 RS 
able for the rural utilities program described in section 
306(a)(2)(B) of such Act, and of which not to exceed 
$1,000,000 shall be available for the rural utilities pro-
gram described in section 306E of such Act; and of which 
$89,164,000 shall be for the rural business and coopera-
tive
development
programs
described
in
sections 
381E(d)(3) and 310B(f) of such Act: Provided, That of 
the
total
amount
appropriated
in
this
account, 
$24,000,000 shall be for loans and grants to benefit Fed-
erally Recognized Native American Tribes, including 
grants for drinking water and waste disposal systems pur-
suant to section 306C of such Act, of which $4,000,000 
shall be available for community facilities grants to tribal 
colleges, as authorized by section 306(a)(19) of the Con-
solidated Farm and Rural Development Act, and of which 
$250,000 shall be available for a grant to a qualified na-
tional organization to provide technical assistance for 
rural transportation in order to promote economic develop-
ment: Provided further, That of the amount appropriated 
for the rural business and cooperative development pro-
grams, not to exceed $500,000 shall be made available for 
a grant to a qualified national organization to provide 
technical assistance for rural transportation in order to 
promote economic development; $3,000,000 shall be for 
grants to the Delta Regional Authority (7 U.S.C. 1921
HR 5384 RS 
et seq.) for any purpose under this heading: Provided fur-
ther, That of the amount appropriated for rural utilities 
programs, not to exceed $25,000,000 shall be for water 
and waste disposal systems to benefit the Colonias along 
the United States/Mexico border, including grants pursu-
ant to section 306C of such Act; $16,215,000 shall be for 
technical assistance grants for rural water and waste sys-
tems pursuant to section 306(a)(14) of such Act, of which 
$5,600,000 shall be for Rural Community Assistance Pro-
grams; and not to exceed $14,000,000 shall be for con-
tracting with qualified national organizations for a circuit 
rider program to provide technical assistance for rural 
water systems: Provided further, That of the total amount 
appropriated, not to exceed $22,800,000 shall be available 
through June 30, 2007, for authorized empowerment 
zones and enterprise communities and communities des-
ignated by the Secretary of Agriculture as Rural Economic 
Area Partnership Zones; of which $1,100,000 shall be for 
the
rural
community
programs
described
in
section 
381E(d)(1) of such Act, of which $13,400,000 shall be 
for the rural utilities programs described in section 
381E(d)(2) of such Act, and of which $8,300,000 shall 
be for the rural business and cooperative development pro-
grams described in section 381E(d)(3) of such Act: Pro-
vided further, That any prior year balances for high cost
HR 5384 RS 
energy grants authorized by section 19 of the Rural Elec-
trification Act of 1936 (7 U.S.C. 901(19)) shall be trans-
ferred to and merged with the ‘‘Rural Utilities Service, 
High Energy Costs Grants Account’’. 
RURAL DEVELOPMENT SALARIES AND EXPENSES 
(INCLUDING TRANSFERS OF FUNDS) 
For necessary expenses for carrying out the adminis-
tration and implementation of programs in the Rural De-
velopment mission area, including activities with institu-
tions concerning the development and operation of agricul-
tural
cooperatives;
and
for
cooperative
agreements; 
$182,860,000: Provided, That notwithstanding any other 
provision of law, funds appropriated under this section 
may be used for advertising and promotional activities 
that support the Rural Development mission area: Pro-
vided further, That not more than $10,000 may be ex-
pended to provide modest nonmonetary awards to non- 
USDA employees: Provided further, That any balances 
available from prior years for the Rural Utilities Service, 
Rural Housing Service, and the Rural Business-Coopera-
tive Service salaries and expenses accounts shall be trans-
ferred to and merged with this appropriation.
HR 5384 RS 
RURAL HOUSING SERVICE 
RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT 
(INCLUDING TRANSFERS OF FUNDS) 
For gross obligations for the principal amount of di-
rect and guaranteed loans as authorized by title V of the 
Housing Act of 1949, to be available from funds in the 
rural housing insurance fund, as follows: $4,801,736,000 
for loans to section 502 borrowers, as determined by the 
Secretary, of which $1,237,498,000 shall be for direct 
loans, and of which $3,564,238,000 shall be for unsub-
sidized guaranteed loans; $36,382,000 for section 504 
housing repair loans; $100,000,000 for section 515 rental 
housing; $100,000,000 for section 538 guaranteed multi- 
family housing loans; $5,045,000 for section 524 site 
loans; $11,482,000 for credit sales of acquired property, 
of which up to $1,482,000 may be for multi-family credit 
sales; and $4,980,000 for section 523 self-help housing 
land development loans. 
For the cost of direct and guaranteed loans, including 
the cost of modifying loans, as defined in section 502 of 
the Congressional Budget Act of 1974, as follows: section 
502 loans, $131,893,000, of which $124,121,000 shall be 
for direct loans, and of which $7,772,000, to remain avail-
able until expended, shall be for unsubsidized guaranteed 
loans; section 504 housing repair loans, $10,751,000; re-
pair, rehabilitation, and new construction of section 515
HR 5384 RS 
rental housing, $45,670,000; section 538 multi-family 
housing guaranteed loans, $7,740,000; credit sales of ac-
quired property, $720,000; and section 523 self-help hous-
ing land development loans, $123,000: Provided, That of 
the
total
amount
appropriated
in
this
paragraph, 
$1,500,000 shall be available through June 30, 2007, for 
authorized empowerment zones and enterprise commu-
nities and communities designated by the Secretary of Ag-
riculture as Rural Economic Area Partnership Zones: Pro-
vided further, That any obligated balances for a dem-
onstration program for the preservation and revitalization 
of the section 515 multi-family rental housing properties 
as authorized in Public Law 109–97 shall be transferred 
to and merged with the ‘‘Rural Housing Service, Multi-
family Housing Revitalization Program Account’’. 
In addition, for administrative expenses necessary to 
carry out the direct and guaranteed loan programs, 
$430,080,000, which shall be transferred to and merged 
with the appropriation for ‘‘Rural Development, Salaries 
and Expenses’’. 
RENTAL ASSISTANCE PROGRAM 
For rental assistance agreements entered into or re-
newed pursuant to the authority under section 521(a)(2) 
or agreements entered into in lieu of debt forgiveness or 
payments for eligible households as authorized by section 
502(c)(5)(D) of the Housing Act of 1949, $335,400,000,
HR 5384 RS 
to remain available through September 30, 2008; and, in 
addition, such sums as may be necessary, as authorized 
by section 521(c) of the Act, to liquidate debt incurred 
prior to fiscal year 1992 to carry out the rental assistance 
program under section 521(a)(2) of the Act: Provided, 
That of this amount, up to $5,900,000 shall be available 
for debt forgiveness or payments for eligible households 
as authorized by section 502(c)(5)(D) of the Act, and not 
to exceed $50,000 per project for advances to nonprofit 
organizations or public agencies to cover direct costs 
(other
than
purchase
price)
incurred
in
purchasing 
projects pursuant to section 502(c)(5)(C) of the Act: Pro-
vided further, That agreements entered into or renewed 
during the current fiscal year shall be funded for a one- 
year period: Provided further, That any unexpended bal-
ances remaining at the end of such one-year agreements 
may be transferred and used for the purposes of any debt 
reduction; maintenance, repair, or rehabilitation of any ex-
isting projects; preservation; and rental assistance activi-
ties authorized under title V of the Act: Provided further, 
That rental assistance that is recovered from projects that 
are subject to prepayment shall be deobligated and reallo-
cated for vouchers and debt forgiveness or payments con-
sistent with the requirements of this Act for purposes au-
thorized under section 542 and section 502(c)(5)(D) of
HR 5384 RS 
the Housing Act of 1949, as amended: Provided further, 
That up to $4,190,000 may be used for the purpose of 
reimbursing funds used for rental assistance agreements 
entered into or renewed pursuant to the authority under 
section 521(a)(2) of the Act for emergency needs related 
to Hurricanes Katrina and Rita. 
MULTIFAMILY HOUSING REVITALIZATION PROGRAM 
ACCOUNT 
For the rural housing voucher program as authorized 
under section 542 of the Housing Act of 1949, (without 
regard to section 542(b)), for the cost to conduct a hous-
ing demonstration program to provide revolving loans for 
the
preservation
of
low-income
multi-family
housing 
projects, and for additional costs to conduct a demonstra-
tion program for the preservation and revitalization of the 
section
515
multi-family
rental
housing
properties, 
$28,000,000, to remain available until expended: Pro-
vided, That of the funds made available under this head-
ing, $16,000,000 shall be available for rural housing 
vouchers to any low-income household (including those not 
receiving rental assistance) residing in a property financed 
with a section 515 loan which has been prepaid after Sep-
tember 30, 2005: Provided further, That the amount of 
such voucher shall be the difference between comparable 
market rent for the section 515 unit and the tenant paid
HR 5384 RS 
rent for such unit: Provided further, That funds made 
available for such vouchers, shall be subject to the avail-
ability of annual appropriations: Provided further, That 
the Secretary shall, to the maximum extent practicable, 
administer such vouchers with current regulations and ad-
ministrative guidance applicable to section 8 housing 
vouchers administered by the Secretary of the Department 
of Housing and Urban Development (including the ability 
to pay administrative costs related to delivery of the 
voucher funds): Provided further, That of the funds made 
available under this heading, $3,000,000 shall be available 
for loans to private non-profit organizations, or such non- 
profit organizations’ affiliate loan funds and State and 
local housing finance agencies, to carry out a housing 
demonstration program to provide revolving loans for the 
preservation of low-income multi-family housing projects: 
Provided further, That loans under such demonstration 
program shall have an interest rate of not more than 1 
percent direct loan to the recipient: Provided further, That 
the Secretary may defer the interest and principal pay-
ment to the Rural Housing Service for up to 3 years and 
the term of such loans shall not exceed 30 years: Provided 
further, That of the funds made available under this head-
ing, $9,000,000 shall be available for a demonstration pro-
gram for the preservation and revitalization of the section
HR 5384 RS 
515 multi-family rental housing properties to restructure 
existing section 515 loans, as the Secretary deems appro-
priate, expressly for the purposes of ensuring the project 
has sufficient resources to preserve the project for the pur-
pose of providing safe and affordable housing for low-in-
come residents including reducing or eliminating interest; 
deferring loan payments, subordinating, reducing or re-
amortizing loan debt; and other financial assistance in-
cluding advances and incentives required by the Secretary: 
Provide further, That if Congress enacts legislation to per-
manently authorize a section 515 multi-family rental hous-
ing loan restructuring program similar to the demonstra-
tion program described herein, the Secretary may use 
funds made available for the demonstration program 
under this heading to carry out such legislation with the 
prior approval of the Committees on Appropriations of 
both Houses of Congress. 
In addition, for administrative expenses necessary to 
carry out the direct loan program, $990,000, which shall 
be transferred to and merged with the appropriation for 
‘‘Rural Development, Salaries and Expenses’’, which shall 
be made available for the Secretary to contract with third 
parties to acquire the necessary automation and technical 
services needed to restructure section 515 mortgages.