1173
ants displaced due to mortgage prepayment and to projects
that have not yet been funded but which have approved
plans of action; and (2) may impose a temporary morato-
rium on applications by potential recipients of such fund-
ing: Provided further, That an owner of eligible low-income
housing may prepay the mortgage or request voluntary ter-
mination of a mortgage insurance contract, so long as said
owner agrees not to raise rents for sixty days after such
prepayment: Provided further, That an owner of eligible
low-income housing who has not timely filed a second notice
under section 216(d) prior to the effective date of this Act
may file such notice by April 15, 1996: Provided further,
That such developments have been determined to have pres-
ervation equity at least equal to the lesser of $5,000 per
unit or $500,000 per project or the equivalent of eight times
the most recently published fair market rent for the area
in which the project is located as the appropriate unit size
for all of the units in the eligible project: Provided further,
That the Secretary may modify the regulatory agreement
to permit owners and priority purchasers to retain rental
income in excess of the basic rental charge in projects as-
sisted under section 236 of the National Housing Act, for
the purpose of preserving the low and moderate income
character of the housing: Provided further, That the Sec-
retary may give priority to funding and processing the fol-
1174
lowing projects provided that the funding is obligated not
later than September 15, 1996: (1) projects with approved
plans of action to retain the housing that file a modified
plan of action no later than August 15, 1996 to transfer
the housing; (2) projects with approved plans of action that
are subject to a repayment or settlement agreement that was
executed between the owner and the Secretary prior to Sep-
tember 1, 1995; (3) projects for which submissions were de-
layed as a result of their location in areas that were des-
ignated as a Federal disaster area in a Presidential Disas-
ter Declaration; and (4) projects whose processing was, in
fact or in practical effect, suspended, deferred, or inter-
rupted for a period of twelve months or more because of
differing interpretations, by the Secretary and an owner
or by the Secretary and a State or local rent regulatory
agency, concerning the timing of filing eligibility or the ef-
fect of a presumptively applicable State or local rent control
law or regulation on the determination of preservation
value under section 213 of LIHPRHA, as amended, if the
owner of such project filed notice of intent to extend the
low-income affordability restrictions of the housing, or
transfer to a qualified purchaser who would extend such
restrictions, on or before November 1, 1993: Provided fur-
ther, That eligible low-income housing shall include prop-
erties meeting the requirements of this paragraph with
1175
mortgages that are held by a State agency as a result of
a sale by the Secretary without insurance, which imme-
diately before the sale would have been eligible low-income
housing under LIHPRHA: Provided further, That notwith-
standing any other provision of law, subject to the avail-
ability of appropriated funds, each unassisted low-income
family residing in the housing on the date of prepayment
or voluntary termination, and whose rent, as a result of
a rent increase occurring no later than one year after the
date of the prepayment, exceeds 30 percent of adjusted in-
come, shall be offered tenant-based assistance in accordance
with section 8 or any successor program, under which the
family shall pay no less for rent than it paid on such date:
Provided further, That any family receiving tenant-based
assistance under the preceding proviso may elect (1) to re-
main in the unit of the housing and if the rent exceeds the
fair market rent or payment standard, as applicable, the
rent shall be deemed to be the applicable standard, so long
as the administering public housing agency finds that the
rent is reasonable in comparison with rents charged for
comparable unassisted housing units in the market or (2)
to move from the housing and the rent will be subject to
the fair market rent of the payment standard, as applicable,
under existing program rules and procedures: Provided fur-
ther, That rents and rent increases for tenants of projects
1176
for which plans of action are funded under section
220(d)(3)(B) of LIHPRHA shall be governed in accordance
with the requirements of the program under which the first
mortgage is insured or made (sections 236 or 221(d)(3)
BMIR, as appropriate): Provided further, That the imme-
diately foregoing proviso shall apply hereafter to projects
for which plans of action are to be funded under such sec-
tion 220(d)(3)(B), and shall apply to any project that has
been funded under such section starting one year after the
date that such project was funded: Provided further, That
up to $10,000,000 of the amount made available by this
paragraph may be used at the discretion of the Secretary
to reimburse owners of eligible properties for which plans
of action were submitted prior to the effective date of this
Act, but were not executed for lack of available funds, with
such reimbursement available only for documented costs di-
rectly applicable to the preparation of the plan of action
as determined by the Secretary, and shall be made available
on terms and conditions to be established by the Secretary:
Provided further, That, notwithstanding any other provi-
sion of law, effective October 1, 1996, the Secretary shall
suspend further processing of preservation applications
which do not have approved plans of action.
Of the total amount provided under this head,
$780,190,000 shall be for capital advances, including
1177
amendments to capital advance contracts, for housing for
the elderly, as authorized by section 202 of the Housing Act
of 1959, as amended, and for project rental assistance, and
amendments to contracts for project rental assistance, for
supportive housing for the elderly under section 202(c)(2)
of the Housing Act of 1959; and $233,168,000 shall be for
capital advances, including amendments to capital advance
contracts, for supportive housing for persons with disabil-
ities, as authorized by section 811 of the Cranston-Gonzalez
National Affordable Housing Act; and for project rental as-
sistance, and amendments to contracts for project rental as-
sistance, for supportive housing for persons with disabilities
as authorized by section 811 of the Cranston-Gonzalez Na-
tional Affordable Housing Act: Provided, That the Sec-
retary may designate up to 25 percent of the amounts ear-
marked under this paragraph for section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act for tenant-
based assistance, as authorized under that section, which
assistance is five-years in duration: Provided further, That
the Secretary may waive any provision of section 202 of
the Housing Act of 1959 and section 811 of the National
Affordable Housing Act (including the provisions governing
the terms and conditions of project rental assistance) that
the Secretary determines is not necessary to achieve the ob-
jectives of these programs, or that otherwise impedes the
1178
ability to develop, operate or administer projects assisted
under these programs, and may make provision for alter-
native conditions or terms where appropriate.
PUBLIC HOUSING DEMOLITION, SITE REVITALIZATION, AND
REPLACEMENT HOUSING GRANTS
For grants to public housing agencies for the purposes
of enabling the demolition of obsolete public housing projects
or portions thereof, the revitalization (where appropriate)
of sites (including remaining public housing units) on
which such projects are located, replacement housing which
will avoid or lessen concentrations of very low-income fami-
lies, and tenant-based assistance in accordance with section
8 of the United States Housing Act of 1937 for the purpose
of providing replacement housing and assisting tenants to
be displaced by the demolition, $380,000,000, to remain
available until expended: Provided, That the Secretary of
Housing and Urban Development shall award such funds
to public housing agencies based upon, among other relevant
criteria, the local and national impact of the proposed dem-
olition and revitalization activities and the extent to which
the public housing agency could undertake such activities
without the additional assistance to be provided hereunder:
Provided further, That eligible expenditures hereunder shall
be those expenditures eligible under section 8 and section
14 of the United States Housing Act of 1937 (42 U.S.C.
1437f and l): Provided further, That the Secretary may im-
1179
pose such conditions and requirements as the Secretary
deems appropriate to effectuate the purposes of this para-
graph: Provided further, That the Secretary may require
an agency selected to receive funding to make arrangements
satisfactory to the Secretary for use of an entity other than
the agency to carry out this program where the Secretary
determines that such action will help to effectuate the pur-
pose of this paragraph: Provided further, That in the event
an agency selected to receive funding does not proceed expe-
ditiously as determined by the Secretary, the Secretary
shall withdraw any funding made available pursuant to
this paragraph that has not been obligated by the agency
and distribute such funds to one or more other eligible agen-
cies, or to other entities capable of proceeding expeditiously
in the same locality with the original program: Provided
further, That of the foregoing $380,000,000, the Secretary
may use up to .67 per centum for technical assistance, to
be provided directly or indirectly by grants, contracts or
cooperative agreements, including training and cost of nec-
essary travel for participants in such training, by or to
officials and employees of the Department and of public
housing agencies and to residents: Provided further, That
any replacement housing provided with assistance under
this head shall be subject to section 18(f) of the United
1180
States Housing Act of 1937, as amended by section
201(b)(2) of this Act.
FLEXIBLE SUBSIDY FUND
(INCLUDING TRANSFER OF FUNDS)
From the fund established by section 236(g) of the Na-
tional Housing Act, as amended, all uncommitted balances
of excess rental charges as of September 30, 1995, and any
collections during fiscal year 1996 shall be transferred, as
authorized under such section, to the fund authorized under
section 201(j) of the Housing and Community Development
Amendments of 1978, as amended.
RENTAL HOUSING ASSISTANCE
(RESCISSION)
The limitation otherwise applicable to the maximum
payments that may be required in any fiscal year by all
contracts entered into under section 236 of the National
Housing Act (12 U.S.C. 1715z–1) is reduced in fiscal year
1996 by not more than $2,000,000 in uncommitted balances
of authorizations provided for this purpose in appropria-
tions Acts: Provided, That up to $163,000,000 of recaptured
section 236 budget authority resulting from the prepayment
of mortgages subsidized under section 236 of the National
Housing Act (12 U.S.C. 1715z–1) shall be rescinded in fis-
cal year 1996.
1181
PAYMENTS FOR OPERATION OF LOW-INCOME HOUSING
PROJECTS
For payments to public housing agencies and Indian
housing authorities for operating subsidies for low-income
housing projects as authorized by section 9 of the United
States Housing Act of 1937, as amended (42 U.S.C. 1437g),
$2,800,000,000.
DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING
For grants to public and Indian housing agencies for
use in eliminating crime in public housing projects author-
ized by 42 U.S.C. 11901–11908, for grants for federally as-
sisted low-income housing authorized by 42 U.S.C. 11909,
and for drug information clearinghouse services authorized
by 42 U.S.C. 11921–11925, $290,000,000, to remain avail-
able until expended, of which $10,000,000 shall be for
grants, technical assistance, contracts and other assistance
training, program assessment, and execution for or on be-
half of public housing agencies and resident organizations
(including the cost of necessary travel for participants in
such training) and of which $2,500,000 shall be used in
connection with efforts to combat violent crime in public
and assisted housing under the Operation Safe Home pro-
gram administered by the Inspector General of the Depart-
ment of Housing and Urban Development: Provided, That
the term ‘‘drug-related crime’’, as defined in 42 U.S.C.
11905(2), shall also include other types of crime as deter-
1182
mined by the Secretary: Provided further, That notwith-
standing section 5130(c) of the Anti-Drug Abuse Act of 1988
(42 U.S.C. 11909(c)), the Secretary may determine not to
use any such funds to provide public housing youth sports
grants: Provided further, That an additional $30,000,000,
to be derived by transfer from unobligated balances from
the Homeownership and Opportunity for People Every-
where Grants (HOPE Grants) account, shall be available
for use for grants for federally-assisted low-income housing,
in addition to any other amount made available for this
purpose under this heading, without regard to any percent-
age limitation otherwise applicable.
HOME INVESTMENT PARTNERSHIPS PROGRAM
For the HOME investment partnerships program, as
authorized under title II of the Cranston-Gonzalez National
Affordable Housing Act (Public Law 101–625), as amended,
$1,400,000,000, to remain available until expended.
INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM
ACCOUNT
For the cost of guaranteed loans, $3,000,000, as au-
thorized by section 184 of the Housing and Community De-
velopment Act of 1992 (106 Stat. 3739): Provided, That
such costs, including the costs of modifying such loans, shall
be as defined in section 502 of the Congressional Budget
Act of 1974, as amended: Provided further, That these funds
1183
are available to subsidize total loan principal, any part of
which is to be guaranteed, not to exceed $36,900,000.
HOMELESS ASSISTANCE
HOMELESS ASSISTANCE GRANTS
For the emergency shelter grants program (as author-
ized under subtitle B of title IV of the Stewart B. McKinney
Homeless Assistance Act (Public Law 100–77), as amend-
ed); the supportive housing program (as authorized under
subtitle C of title IV of such Act); the section 8 moderate
rehabilitation single room occupancy program (as author-
ized under the United States Housing Act of 1937, as
amended) to assist homeless individuals pursuant to section
441 of the Stewart B. McKinney Homeless Assistance Act;
and the shelter plus care program (as authorized under sub-
title F of title IV of such Act), $823,000,000, to remain
available until expended.
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT GRANTS
(INCLUDING TRANSFER OF FUNDS)
For grants to States and units of general local govern-
ment and for related expenses, not otherwise provided for,
necessary for carrying out a community development grants
program as authorized by title I of the Housing and Com-
munity Development Act of 1974, as amended (42 U.S.C.
5301), $4,600,000,000, to remain available until September
30, 1998: Provided, That $50,000,000 shall be available for
1184
grants to Indian tribes pursuant to section 106(a)(1) of the
Housing and Community Development Act of 1974, as
amended (42 U.S.C. 5301), $2,000,000 shall be available
as a grant to the Housing Assistance Council, $1,000,000
shall be available as a grant to the National American In-
dian Housing Council, and $27,000,000 shall be available
for ‘‘special purpose grants’’ pursuant to section 107 of such
Act: Provided further, That not to exceed 20 per centum
of any grant made with funds appropriated herein (other
than a grant made available under the preceding proviso
to the Housing Assistance Council or the National Amer-
ican Indian Housing Council, or a grant using funds under
section 107(b)(3) of the Housing and Community Develop-
ment Act of 1974) shall be expended for ‘‘Planning and
Management Development’’ and ‘‘Administration’’ as de-
fined in regulations promulgated by the Department of
Housing and Urban Development: Provided further, That
section 105(a)(25) of such Act, as added by section
907(b)(1) of the Cranston-Gonzalez National Affordable
Housing Act, shall continue to be effective after September
30, 1995, notwithstanding section 907(b)(2) of such Act:
Provided further, That section 916 of the Cranston-Gonzalez
National Affordable Housing Act shall apply with respect
to fiscal year 1996, notwithstanding section 916(f) of that
Act.
1185
Of the amount provided under this heading, the Sec-
retary of Housing and Urban Development may use up to
$53,000,000 for grants to public housing agencies (includ-
ing Indian housing authorities), nonprofit corporations,
and other appropriate entities for a supportive services pro-
gram to assist residents of public and assisted housing,
former residents of such housing receiving tenant-based as-
sistance under section 8 of such Act (42 U.S.C. 1437f), and
other low-income families and individuals to become self-
sufficient: Provided, That the program shall provide sup-
portive services, principally for the benefit of public housing
residents, to the elderly and the disabled, and to families
with children where the head of the household would benefit
from the receipt of supportive services and is working, seek-
ing work, or is preparing for work by participating in job
training or educational programs: Provided further, That
the supportive services shall include congregate services for
the elderly and disabled, service coordinators, and coordi-
nated educational, training, and other supportive services,
including academic skills training, job search assistance,
assistance related to retaining employment, vocational and
entrepreneurship development and support programs,
transportation, and child care: Provided further, That the
Secretary shall require applicants to demonstrate firm com-
mitments of funding or services from other sources: Pro-
1186
vided further, That the Secretary shall select public and In-
dian housing agencies to receive assistance under this head
on a competitive basis, taking into account the quality of
the proposed program (including any innovative ap-
proaches), the extent of the proposed coordination of sup-
portive services, the extent of commitments of funding or
services from other sources, the extent to which the proposed
program includes reasonably achievable, quantifiable goals
for measuring performance under the program over a three-
year period, the extent of success an agency has had in car-
rying out other comparable initiatives, and other appro-
priate criteria established by the Secretary.
Of the amount made available under this heading, not-
withstanding any other provision of law, $12,000,000 shall
be available for contracts, grants, and other assistance,
other than loans, not otherwise provided for, for providing
counseling and advice to tenants and homeowners both cur-
rent and prospective, with respect to property maintenance,
financial management, and such other matters as may be
appropriate to assist them in improving their housing con-
ditions and meeting the responsibilities of tenancy or home-
ownership, including provisions for training and for sup-
port of voluntary agencies and services as authorized by sec-
tion 106 of the Housing and Urban Development Act of
1187
1968, as amended, notwithstanding section 106(c)(9) and
section 106(d)(13) of such Act.
Of the amount made available under this heading, not-
withstanding any other provision of law, $15,000,000 shall
be available for the tenant opportunity program.
Of the amount made available under this heading, not-
withstanding any other provision of law, $20,000,000 shall
be available for youthbuild program activities authorized
by subtitle D of title IV of the Cranston-Gonzalez National
Affordable Housing Act, as amended, and such activities
shall be an eligible activity with respect to any funds made
available under this heading.
Of the amount otherwise made available under this
heading in this Act, notwithstanding any other provision
of law, $80,000,000 shall be available for Economic Devel-
opment Initiative grants as authorized by section 232 of
the Multifamily Housing Property Disposition Reform Act
of 1994, Public Law 103–233, on a competitive basis as
required by section 102 of the HUD Reform Act.
Of the amount made available under this heading, not-
withstanding any other provision of law, $13,000,000 shall
be for a grant to Watertown, South Dakota for the construc-
tion of wastewater treatment facilities.
For the cost of guaranteed loans, $31,750,000, as au-
thorized by section 108 of the Housing and Community De-
1188
velopment Act of 1974: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in sec-
tion 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available
to subsidize total loan principal, any part of which is to
be guaranteed, not to exceed $1,500,000,000: Provided fur-
ther, That the Secretary of Housing and Urban Develop-
ment may make guarantees not to exceed the immediately
foregoing amount notwithstanding the aggregate limitation
on guarantees set forth in section 108(k) of the Housing
and Community Development Act of 1974. In addition, for
administrative expenses to carry out the guaranteed loan
program, $675,000 which shall be transferred to and merged
with the appropriation for departmental salaries and ex-
penses.
The amount made available for fiscal year 1995 for
a special purpose grant for the renovation of the central
terminal in Buffalo, New York, shall be made available for
the central terminal and for other public facilities in Buf-
falo, New York.
POLICY DEVELOPMENT AND RESEARCH
RESEARCH AND TECHNOLOGY
For contracts, grants, and necessary expenses of pro-
grams of research and studies relating to housing and
urban problems, not otherwise provided for, as authorized
1189
by title V of the Housing and Urban Development Act of
1970, as amended (12 U.S.C. 1701z–1 et seq.), including
carrying out the functions of the Secretary under section
1(a)(1)(i) of Reorganization Plan No. 2 of 1968,
$34,000,000, to remain available until September 30, 1997.
FAIR HOUSING AND EQUAL OPPORTUNITY
FAIR HOUSING ACTIVITIES
For contracts, grants, and other assistance, not other-
wise provided for, as authorized by title VIII of the Civil
Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988, and for contracts with qualified
fair housing enforcement organizations, as authorized by
section 561 of the Housing and Community Development
Act of 1987, as amended by the Housing and Community
Development Act of 1992, $30,000,000, to remain available
until September 30, 1997.
MANAGEMENT AND ADMINISTRATION
SALARIES AND EXPENSES
(INCLUDING TRANSFERS OF FUNDS)
For necessary administrative and nonadministrative
expenses of the Department of Housing and Urban Develop-
ment, not otherwise provided for, including not to exceed
$7,000 for official reception and representation expenses,
$962,558,000, of which $532,782,000 shall be provided from
the various funds of the Federal Housing Administration,
and $9,101,000 shall be provided from funds of the Govern-
1190
ment National Mortgage Association, and $675,000 shall be
provided from the Community Development Grants Pro-
gram account.
OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses of the Office of Inspector Gen-
eral in carrying out the provisions of the Inspector General
Act of 1978, as amended, $47,850,000, of which $11,283,000
shall be transferred from the various funds of the Federal
Housing Administration.
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For carrying out the Federal Housing Enterprise Fi-
nancial Safety and Soundness Act of 1992, $14,895,000, to
remain available until expended, from the Federal Housing
Enterprise Oversight Fund: Provided, That such amounts
shall be collected by the Director as authorized by section
1316 (a) and (b) of such Act, and deposited in the Fund
under section 1316(f) of such Act.
FEDERAL HOUSING ADMINISTRATION
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
During fiscal year 1996, commitments to guarantee
loans to carry out the purposes of section 203(b) of the Na-
tional Housing Act, as amended, shall not exceed a loan
1191
principal of $110,000,000,000: Provided, That during fiscal
year 1996, the Secretary shall sell assigned mortgage notes
having 
an 
unpaid 
principal 
balance 
of 
up 
to
$4,000,000,000, which notes were originally insured under
section 203(b) of the National Housing Act: Provided fur-
ther, That the Secretary may use any negative subsidy
amounts from the sale of such assigned mortgage notes dur-
ing fiscal year 1996 for the disposition of properties or notes
under this heading.
During fiscal year 1996, obligations to make direct
loans to carry out the purposes of section 204(g) of the Na-
tional Housing Act, as amended, shall not exceed
$200,000,000: Provided, That the foregoing amount shall be
for loans to nonprofit and governmental entities in connec-
tion with sales of single family real properties owned by
the Secretary and formerly insured under section 203 of
such Act.
For administrative expenses necessary to carry out the
guaranteed and direct loan program, $341,595,000, to be
derived from the FHA-mutual mortgage insurance guaran-
teed loans receipt account, of which not to exceed
$334,483,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed $7,112,000 shall be transferred to the appropriation
for the Office of Inspector General.
1192
FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the cost of guaranteed loans, as authorized by sec-
tions 238 and 519 of the National Housing Act (12 U.S.C.
1715z–3 and 1735c), including the cost of modifying such
loans, $85,000,000, to remain available until expended:
Provided, That such costs shall be as defined in section 502
of the Congressional Budget Act of 1974, as amended: Pro-
vided further, That these funds are available to subsidize
total loan principal any part of which is to be guaranteed
of not to exceed $17,400,000,000: Provided further, That
during fiscal year 1996, the Secretary shall sell assigned
notes having an unpaid principal balance of up to
$4,000,000,000, which notes were originally obligations of
the funds established under sections 238 and 519 of the Na-
tional Housing Act: Provided further, That the Secretary
may use any negative subsidy amounts from the sale of such
assigned mortgage notes during fiscal year 1996, in addi-
tion to amounts otherwise provided, for the disposition of
properties or notes under this heading (including the credit
subsidy for the guarantee of loans or the reduction of posi-
tive credit subsidy amounts that would otherwise be re-
quired for the sale of such properties or notes), and for any
other purpose under this heading: Provided further, That
any amounts made available in any prior appropriation
1193
Act for the cost (as such term is defined in section 502 of
the Congressional Budget Act of 1974) of guaranteed loans
that are obligations of the funds established under section
238 or 519 of the National Housing Act that have not been
obligated or that are deobligated shall be available to the
Secretary of Housing and Urban Development in connec-
tion with the making of such guarantees and shall remain
available until expended, notwithstanding the expiration of
any period of availability otherwise applicable to such
amounts.
Gross obligations for the principal amount of direct
loans, as authorized by sections 204(g), 207(l), 238(a), and
519(a) of the National Housing Act, shall not exceed
$120,000,000; of which not to exceed $100,000,000 shall be
for bridge financing in connection with the sale of multi-
family real properties owned by the Secretary and formerly
insured under such Act; and of which not to exceed
$20,000,000 shall be for loans to nonprofit and govern-
mental entities in connection with the sale of single-family
real properties owned by the Secretary and formerly in-
sured under such Act.
In addition, for administrative expenses necessary to
carry out the guaranteed and direct loan programs,
$202,470,000, of which $198,299,000 shall be transferred to
the appropriation for departmental salaries and expenses;
1194
and of which $4,171,000 shall be transferred to the appro-
priation for the Office of Inspector General.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN
GUARANTEE PROGRAM ACCOUNT
(INCLUDES TRANSFER OF FUNDS)
During fiscal year 1996, new commitments to issue
guarantees to carry out the purposes of section 306 of the
National Housing Act, as amended (12 U.S.C. 1721(g)),
shall not exceed $110,000,000,000.
For administrative expenses necessary to carry out the
guaranteed 
mortgage-backed 
securities 
program,
$9,101,000, to be derived from the GNMA—guarantees of
mortgage-backed securities guaranteed loan receipt account,
of which not to exceed $9,101,000 shall be transferred to
the appropriation for departmental salaries and expenses.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
EXTEND ADMINISTRATIVE PROVISIONS FROM THE
RESCISSION ACT
SEC. 201. (a) PUBLIC AND INDIAN HOUSING MOD-
ERNIZATION.—
(1) EXPANSION
OF
USE
OF
MODERNIZATION
FUNDING.—Subsection 14(q) of the United States
Housing Act of 1937 is amended to read as follows:
1195
‘‘(q)(1) In addition to the purposes enumerated in sub-
sections (a) and (b), a public housing agency may use mod-
ernization assistance provided under section 14, and devel-
opment assistance provided under section 5(a) that was not
allocated, as determined by the Secretary, for priority re-
placement housing, for any eligible activity authorized by
this section, by section 5, or by applicable Appropriations
Acts for a public housing agency, including the demolition,
rehabilitation, revitalization, and replacement of existing
units and projects and, for up to 10 percent of its allocation
of such funds in any fiscal year, for any operating subsidy
purpose authorized in section 9. Except for assistance used
for operating subsidy purposes under the preceding sen-
tence, assistance provided to a public housing agency under
this section shall principally be used for the physical im-
provement, replacement of public housing, other capital
purposes, and for associated management improvements,
and such other extraordinary purposes as may be approved
by the Secretary. Low-income and very low-income units
assisted under this paragraph shall be eligible for operating
subsidies, unless the Secretary determines that such units
or projects do not meet other requirements of this Act.
‘‘(2) A public housing agency may provide assistance
to developments that include units for other than units as-
sisted under this Act (except for units assisted under section
1196
8 hereof) (‘mixed income developments’), in the form of a
grant, loan, operating assistance, or other form of invest-
ment which may be made to—
‘‘(A) a partnership, a limited liability company,
or other legal entity in which the public housing
agency or its affiliate is a general partner, managing
member, or otherwise participates in the activities of
such entity; or
‘‘(B) any entity which grants to the public hous-
ing agency the option to purchase the development
within 20 years after initial occupancy in accordance
with section 42(i)(7) of the Internal Revenue Code of
1986, as amended.
‘‘Units shall be made available in such develop-
ments for periods of not less than 30 years, by master
contract or by individual lease, for occupancy by low-
income and very low-income families referred from
time to time by the public housing agency from its
central or site-based waiting list. The number of such
units shall be:
‘‘(i) in the same proportion to the total
number of units in such development that the
total financial commitment provided by the pub-
lic housing agency bears to the value of the total
financial commitment in the development, or
1197
‘‘(ii) not be less than the number of units
that could have been developed under the conven-
tional public housing program with the assist-
ance involved, or
‘‘(iii) as may otherwise be approved by the
Secretary.
‘‘(3) A mixed income development may elect to have
all units subject only to the applicable local real estate
taxes, notwithstanding that the low-income units assisted
by public housing funds would otherwise be subject to sec-
tion 6(d) of the Housing Act of 1937.
‘‘(4) If an entity that owns or operates a mixed-income
project under this subsection enters into a contract with a
public housing agency, the terms of which obligate the entity
to operate and maintain a specified number of units in the
project as public housing units in accordance with the re-
quirements of this Act for the period required by law, such
contractual terms may provide that, if, as a result of a re-
duction in appropriations under section 9, or any other
change in applicable law, the public housing agency is un-
able to fulfill its contractual obligations with respect to
those public housing units, that entity may deviate, under
procedures and requirements developed through regulations
by the Secretary, from otherwise applicable restrictions
under this Act regarding rents, income eligibility, and other
1198
areas of public housing management with respect to a por-
tion or all of those public housing units, to the extent nec-
essary to preserve the viability of those units while main-
taining the low-income character of the units, to the maxi-
mum extent practicable.’’.
(2) APPLICABILITY.—Section 14(q) of the United
States Housing Act of 1937, as amended by subsection
(a) of this section, shall be effective only with respect
to assistance provided from funds made available for
fiscal year 1996 or any preceding fiscal year.
(3) APPLICABILITY
TO IHAS.—In accordance
with section 201(b)(2) of the United States Housing
Act of 1937, the amendment made by this subsection
shall apply to public housing developed or operated
pursuant to a contract between the Secretary of Hous-
ing and Urban Development and an Indian housing
authority.
(b) ONE-FOR-ONE REPLACEMENT OF PUBLIC AND IN-
DIAN HOUSING.—
(1) EXTENDED AUTHORITY.—Section 1002(d) of
Public Law 104–19 is amended to read as follows:
‘‘(d) Subsections (a), (b), and (c) shall be effective for
applications for the demolition, disposition, or conversion
to homeownership of public housing approved by the Sec-
retary, and other consolidation and relocation activities of
1199
public housing agencies undertaken, on, before, or after Sep-
tember 30, 1995 and before September 30, 1996.’’.
(2) Section 18(f) of the United States Housing
Act of 1937 is amended by adding at the end the fol-
lowing new sentence:
‘‘No one may rely on the preceding sentence as the basis
for reconsidering a final order of a court issued, or a settle-
ment approved by, a court.’’.
(3) APPLICABILITY.—In accordance with section
201(b)(2) of the United States Housing Act of 1937,
the amendments made by this subsection and by sec-
tions 1002 (a), (b), and (c) of Public Law 104–19
shall apply to public housing developed or operated
pursuant to a contract between the Secretary of Hous-
ing and Urban Development and an Indian housing
authority.
CONVERSION OF CERTAIN PUBLIC HOUSING TO VOUCHERS
SEC. 203. (a) IDENTIFICATION OF UNITS.—Each pub-
lic housing agency shall identify any public housing devel-
opments—
(1) that are on the same or contiguous sites;
(2) that total more than—
(A) 300 dwelling units; or
(B) in the case of high-rise family buildings
or substantially vacant buildings; 300 dwelling
units;
1200
(3) that have a vacancy rate of at least 10 per-
cent for dwelling units not in funded, on schedule
modernization programs;
(4) identified as distressed housing that the pub-
lic housing agency cannot assure the long-term viabil-
ity as public housing through reasonable revitaliza-
tion, density reduction, or achievement of a broader
range of household income; and
(5) for which the estimated cost of continued op-
eration and modernization of the developments as
public housing exceeds the cost of providing tenant-
based assistance under section 8 of the United States
Housing Act of 1937 for all families in occupancy,
based on appropriate indicators of cost (such as the
percentage of total development cost required for mod-
ernization).
(b) IMPLEMENTATION AND ENFORCEMENT.—
(1) STANDARDS
FOR
IMPLEMENTATION.—The
Secretary shall establish standards to permit imple-
mentation of this section in fiscal year 1996.
(2) CONSULTATION.—Each public housing agen-
cy shall consult with the applicable public housing
tenants and the unit of general local government in
identifying any public housing developments under
subsection (a).
1201
(3) FAILURE OF PHAS TO COMPLY WITH SUB-
SECTION (a).—Where the Secretary determines that—
(A) a public housing agency has failed
under subsection (a) to identify public housing
developments for removal from the inventory of
the agency in a timely manner;
(B) a public housing agency has failed to
identify one or more public housing develop-
ments which the Secretary determines should
have been identified under subsection (a); or
(C) one or more of the developments identi-
fied by the public housing agency pursuant to
subsection (a) should not, in the determination of
the Secretary, have been identified under that
subsection;
the Secretary may designate the developments to be
removed from the inventory of the public housing
agency pursuant to this section.
(c) REMOVAL OF UNITS FROM THE INVENTORIES OF
PUBLIC HOUSING AGENCIES.—
(1) Each public housing agency shall develop
and carry out a plan in conjunction with the Sec-
retary for the removal of public housing units identi-
fied under subsection (a) or subsection (b)(3), over a
period of up to five years, from the inventory of the
1202
public housing agency and the annual contributions
contract. The plan shall be approved by the relevant
local official as not inconsistent with the Comprehen-
sive Housing Affordability Strategy under title I of
the Housing and Community Development Act of
1992, including a description of any disposition and
demolition plan for the public housing units.
(2) The Secretary may extend the deadline in
paragraph (1) for up to an additional five years
where the Secretary makes a determination that the
deadline is impracticable.
(3) The Secretary shall take appropriate actions
to ensure removal of developments identified under
subsection (a) or subsection (b)(3) from the inventory
of a public housing agency, if the public housing
agency fails to adequately develop a plan under para-
graph (1), or fails to adequately implement such plan
in accordance with the terms of the plan.
(4) To the extent approved in appropriations
Acts, the Secretary may establish requirements and
provide funding under the Urban Revitalization
Demonstration program for demolition and disposi-
tion of public housing under this section.
(5) Notwithstanding any other provision of law,
if a development is removed from the inventory of a
1203
public housing agency and the annual contributions
contract pursuant to paragraph (1), the Secretary
may authorize or direct the transfer of—
(A) in the case of an agency receiving as-
sistance under the comprehensive improvement
assistance program, any amounts obligated by
the Secretary for the modernization of such de-
velopment pursuant to section 14 of the United
States Housing Act of 1937;
(B) in the case of an agency receiving pub-
lic and Indian housing modernization assistance
by formula pursuant to section 14 of the United
States Housing Act of 1937, any amounts pro-
vided to the agency which are attributable pur-
suant to the formula for allocating such assist-
ance to the development removed from the inven-
tory of that agency; and
(C) in the case of an agency receiving as-
sistance for the major reconstruction of obsolete
projects, any amounts obligated by the Secretary
for the major reconstruction of the development
pursuant to section 5 of such Act,
to the tenant-based assistance program or appropriate
site revitalization of such agency.
1204
(6) CESSATION OF UNNECESSARY SPENDING.—
Notwithstanding any other provision of law, if, in the
determination of the Secretary, a development meets
or is likely to meet the criteria set forth in subsection
(a), the Secretary may direct the public housing agen-
cy to cease additional spending in connection with
the development, except to the extent that additional
spending is necessary to ensure decent, safe, and sani-
tary housing until the Secretary determines or ap-
proves an appropriate course of action with respect to
such development under this section.
(d) CONVERSION TO TENANT-BASED ASSISTANCE.—
(1) The Secretary shall make authority available
to a public housing agency to provide tenant-based
assistance pursuant to section 8 to families residing
in any development that is removed from the inven-
tory of the public housing agency and the annual con-
tributions contract pursuant to subsection (b).
(2) Each conversion plan under subsection (c)
shall—
(A) require the agency to notify families re-
siding in the development, consistent with any
guidelines issued by the Secretary governing such
notifications, that the development shall be re-
moved from the inventory of the public housing
1205
agency and the families shall receive tenant-
based or project-based assistance, and to provide
any necessary counseling for families; and
(B) ensure that all tenants affected by a de-
termination under this section that a develop-
ment shall be removed from the inventory of a
public housing agency shall be offered tenant-
based or project-based assistance and shall be re-
located, as necessary, to other decent, safe, sani-
tary, and affordable housing which is, to the
maximum extent practicable, housing of their
choice.
(e) IN GENERAL.—
(1) The Secretary may require a public housing
agency to provide such information as the Secretary
considers necessary for the administration of this sec-
tion.
(2) As used in this section, the term ‘‘develop-
ment’’ shall refer to a project or projects, or to por-
tions of a project or projects, as appropriate.
(3) Section 18 of the United States Housing Act
of 1937 shall not apply to the demolition of develop-
ments removed from the inventory of the public hous-
ing agency under this section.
1206
STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE
SEC. 204. (a) ‘‘TAKE-ONE, TAKE-ALL’’.—Section 8(t)
of the United States Housing Act of 1937 is hereby repealed.
(b) EXEMPTION FROM NOTICE REQUIREMENTS FOR
THE CERTIFICATE
AND VOUCHER PROGRAMS.—Section
8(c) of such Act is amended—
(1) in paragraph (8), by inserting after ‘‘sec-
tion’’ the following: ‘‘(other than a contract for assist-
ance under the certificate or voucher program)’’; and
(2) in the first sentence of paragraph (9), by
striking ‘‘(but not less than 90 days in the case of
housing certificates or vouchers under subsection (b)
or (o))’’ and inserting ‘‘, other than a contract under
the certificate or voucher program’’.
(c) ENDLESS LEASE.—Section 8(d)(1)(B) of such Act
is amended—
(1) in clause (ii), by inserting ‘‘during the term
of the lease,’’ after ‘‘(ii)’’; and
(2) in clause (iii), by striking ‘‘provide that’’
and inserting ‘‘during the term of the lease,’’.
(d) APPLICABILITY.—The provisions of this section
shall be effective for fiscal year 1996 only.
PUBLIC HOUSING/SECTION 8 MOVING TO WORK
DEMONSTRATION
SEC. 206. (a) PURPOSE.—The purpose of this dem-
onstration is to give public housing agencies and the Sec-
1207
retary of Housing and Urban Development the flexibility
to design and test various approaches for providing and
administering housing assistance that: reduce cost and
achieve greater cost effectiveness in Federal expenditures;
give incentives to families with children where the head of
household is working, seeking work, or is preparing for work
by participating in job training, educational programs, or
programs that assist people to obtain employment and be-
come economically self-sufficient; and increase housing
choices for low-income families.
(b) PROGRAM AUTHORITY.—The Secretary of Housing
and Urban Development shall conduct a demonstration pro-
gram under this section beginning in fiscal year 1996 under
which up to 30 public housing agencies (including Indian
housing authorities) administering the public or Indian
housing program and the section 8 housing assistance pay-
ments program may be selected by the Secretary to partici-
pate. The Secretary shall provide training and technical as-
sistance during the demonstration and conduct detailed
evaluations of up to 15 such agencies in an effort to identify
replicable program models promoting the purpose of the
demonstration. Under the demonstration, notwithstanding
any provision of the United States Housing Act of 1937
except as provided in subsection (e), an agency may com-
bine operating assistance provided under section 9 of the
1208
United States Housing Act of 1937, modernization assist-
ance provided under section 14 of such Act, and assistance
provided under section 8 of such Act for the certificate and
voucher programs, to provide housing assistance for low-
income families, as defined in section 3(b)(2) of the United
States Housing Act of 1937, and services to facilitate the
transition to work on such terms and conditions as the
agency may propose and the Secretary may approve.
(c) APPLICATION.—An application to participate in
the demonstration—
(1) shall request authority to combine assistance
under sections 8, 9, and 14 of the United States
Housing Act of 1937;
(2) shall be submitted only after the public hous-
ing agency provides for citizen participation through
a public hearing and, if appropriate, other means;
(3) shall include a plan developed by the agency
that takes into account comments from the public
hearing and any other public comments on the pro-
posed program, and comments from current and pro-
spective residents who would be affected, and that in-
cludes criteria for—
(A) families to be assisted, which shall re-
quire that at least 75 percent of the families as-
sisted by participating demonstration public
1209
housing authorities shall be very low-income
families, as defined in section 3(b)(2) of the
United States Housing Act of 1937;
(B) establishing a reasonable rent policy,
which shall be designed to encourage employment
and self-sufficiency by participating families,
consistent with the purpose of this demonstra-
tion, such as by excluding some or all of a fami-
ly’s earned income for purposes of determining
rent;
(C) continuing to assist substantially the
same total number of eligible low-income families
as would have been served had the amounts not
been combined;
(D) maintaining a comparable mix of fami-
lies (by family size) as would have been provided
had the amounts not been used under the dem-
onstration; and
(E) assuring that housing assisted under
the demonstration program meets housing qual-
ity standards established or approved by the Sec-
retary; and
(4) may request assistance for training and tech-
nical assistance to assist with design of the dem-
1210
onstration and to participate in a detailed evalua-
tion.
(d) SELECTION.—In selecting among applications, the
Secretary shall take into account the potential of each agen-
cy to plan and carry out a program under the demonstra-
tion, the relative performance by an agency under the pub-
lic housing management assessment program under section
6(j) of the United States Housing Act of 1937, and other
appropriate factors as determined by the Secretary.
(e) APPLICABILITY OF 1937 ACT PROVISIONS.—
(1) Section 18 of the United States Housing Act
of 1937 shall continue to apply to public housing not-
withstanding any use of the housing under this dem-
onstration.
(2) Section 12 of such Act shall apply to housing
assisted under the demonstration, other than housing
assisted solely due to occupancy by families receiving
tenant-based assistance.
(f) EFFECT ON SECTION 8, OPERATING SUBSIDIES,
AND COMPREHENSIVE GRANT PROGRAM ALLOCATIONS.—
The amount of assistance received under section 8, section
9, or pursuant to section 14 by a public housing agency
participating in the demonstration under this part shall
not be diminished by its participation.
(g) RECORDS, REPORTS, AND AUDITS.—
1230
407(b) of the Balanced Budget Downpayment Act, I, is
amended to read as follows:
‘‘(d) SAVINGS PROVISION.—Any mortgage for which
the mortgagor has applied to the Secretary, before March
15, 1996, for assignment pursuant to subsection (b) of this
section as in effect before enactment of the Balanced Budget
Downpayment Act, I, shall continue to be governed by the
provisions of this section as in effect immediately before en-
actment of the Balanced Budget Downpayment Act, I.’’
(c) CORRECTION TO DATE FOR REGULATIONS.—Sec-
tion 407(d) of the Balanced Budget Downpayment Act, I,
is amended to read as follows:
‘‘(d) REGULATIONS.—Not later than April 15, 1996,
the Secretary of Housing and Urban Development shall
issue interim regulations to implement this section and the
amendments made by this section.’’
SPENDING LIMITATIONS
SEC. 223D. (a) None of the funds in this Act may be
used by the Secretary to impose any sanction, or penalty
because of the enactment of any State or local law or regula-
tion declaring English as the official language.
(b) No part of any appropriation contained in this
Act shall be used for lobbying activities as prohibited by
law.