IB
104TH CONGRESS
1ST SESSION
H. R. 2099
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 28, 1995
Ordered to be printed with the amendments of the Senate numbered
AN ACT
Making appropriations for the Departments of Veterans Af-
fairs and Housing and Urban Development, and for sun-
dry independent agencies, boards, commissions, corpora-
tions, and offices for the fiscal year ending September
30, 1996, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
Departments of Veterans Affairs and Housing and Urban
Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fis-
cal year ending September 30, 1996, and for other pur-
poses, namely:
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TITLE I
DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFER OF FUNDS)
For the payment of compensation benefits to or on
behalf of veterans as authorized by law (38 U.S.C. 107,
chapters 11, 13, 51, 53, 55, and 61); pension benefits to
or on behalf of veterans as authorized by law (38 U.S.C.
chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and bur-
ial benefits, emergency and other officers’ retirement pay,
adjusted-service credits and certificates, payment of pre-
miums due on commercial life insurance policies guaran-
teed under the provisions of Article IV of the Soldiers’
and Sailors’ Civil Relief Act of 1940, as amended, and
for other benefits as authorized by law (38 U.S.C. 107,
1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61;
50 U.S.C. App. 540–548; 43 Stat. 122, 123; 45 Stat. 735;
76 Stat. 1198); $17,649,972,000, to remain available
until 
expended: 
Provided, 
That 
not 
to 
exceed
Ω1æ$25,180,000 $27,431,000 of the amount appropriated
shall be reimbursed to ‘‘General operating expenses’’ and
‘‘Medical care’’ for necessary expenses in implementing
those provisions authorized in the Omnibus Budget Rec-
onciliation Act of 1990, and in the Veterans’ Benefits Act
of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding
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source for which is specifically provided as the ‘‘Com-
pensation and pensions’’ appropriation: Provided further,
That such sums as may be earned on an actual qualifying
patient basis, shall be reimbursed to ‘‘Medical facilities re-
volving fund’’ to augment the funding of individual medi-
cal facilities for nursing home care provided to pensioners
as authorized by the Veterans’ Benefits Act of 1992 (38
U.S.C. chapter 55): Provided further, That $12,000,000
previously transferred from ‘‘Compensation and pensions’’
to ‘‘Medical facilities revolving fund’’ shall be transferred
to this heading.
READJUSTMENT BENEFITS
For the payment of readjustment and rehabilitation
benefits to or on behalf of veterans as authorized by law
(38 U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53,
55, and 61), Ω2æ$1,345,300,000 $1,352,180,000, to re-
main available until expended: Provided, That funds shall
be available to pay any court order, court award or any
compromise settlement arising from litigation involving
the vocational training program authorized by section 18
of Public Law 98–77, Ω3æas amended as amended: Pro-
vided further, That of the amounts appropriated for read-
justment benefits, $6,880,000 shall be available for funding
the Service Members Occupational Conversion and Train-
ing program as authorized by sections 4481–4497 of Public
Law 102–484, as amended.
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VETERANS INSURANCE AND INDEMNITIES
For military and naval insurance, national service life
insurance, servicemen’s indemnities, service-disabled vet-
erans insurance, and veterans mortgage life insurance as
authorized by law (38 U.S.C. chapter 19; 70 Stat. 887;
72 Stat. 487) $24,890,000, to remain available until ex-
pended.
GUARANTY AND INDEMNITY PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such
sums as may be necessary to carry out the purpose of the
program, as authorized by 38 U.S.C. chapter 37, as
amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $65,226,000,
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
LOAN GUARANTY PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such
sums as may be necessary to carry out the purpose of the
program, as authorized by 38 U.S.C. chapter 37, as
amended: Provided, That such costs, including the cost of
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modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $52,138,000,
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
DIRECT LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, such sums as may be
necessary to carry out the purpose of the program, as au-
thorized by 38 U.S.C. chapter 37, as amended: Provided,
That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congres-
sional Budget Act of 1974, as amended: Provided further,
That during 1996, within the resources available, not to
exceed $300,000 in gross obligations for direct loans are
authorized for specially adapted housing loans (38 U.S.C.
chapter 37).
In addition, for administrative expenses to carry out
the direct loan program, $459,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
EDUCATION LOAN FUND PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $1,000, as authorized
by 38 U.S.C. 3698, as amended: Provided, That such
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costs, including the cost 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
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $4,000.
In addition, for administrative expenses necessary to
carry out the direct loan program, $195,000, which may
be transferred to and merged with the appropriation for
‘‘General operating expenses’’.
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $54,000, as authorized
by 38 U.S.C. chapter 31, as amended: Provided, That such
costs, including the cost 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
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $1,964,000.
In addition, for administrative expenses necessary to
carry out the direct loan program, $377,000, which may
be transferred to and merged with the appropriation for
‘‘General operating expenses’’.
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NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM
ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For administrative expenses to carry out the direct
loan program authorized by 38 U.S.C. chapter 37, sub-
chapter V, as amended, $205,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
For necessary expenses for the maintenance and op-
eration of hospitals, nursing homes, and domiciliary facili-
ties; for furnishing, as authorized by law, inpatient and
outpatient care and treatment to beneficiaries of the De-
partment of Veterans Affairs, including care and treat-
ment in facilities not under the jurisdiction of the Depart-
ment of Veterans Affairs, and furnishing recreational fa-
cilities, supplies, and equipment; funeral, burial, and other
expenses incidental thereto for beneficiaries receiving care
in Department of Veterans Affairs facilities; administra-
tive expenses in support of planning, design, project man-
agement, real property acquisition and disposition, con-
struction and renovation of any facility under the jurisdic-
tion or for the use of the Department of Veterans Affairs;
oversight, engineering and architectural activities not
charged to project cost; repairing, altering, improving or
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providing facilities in the several hospitals and homes
under the jurisdiction of the Department of Veterans Af-
fairs, not otherwise provided for, either by contract or by
the hire of temporary employees and purchase of mate-
rials; uniforms or allowances therefor, as authorized by
law (5 U.S.C. 5901–5902); aid to State homes as author-
ized by law (38 U.S.C. 1741); and not to exceed
$8,000,000 to fund cost comparison studies as referred
to in 38 U.S.C. 8110(a)(5); Ω4æ$16,777,474,000
$16,450,000,000, plus reimbursements: Provided, That of
the 
funds 
made 
available 
under 
this 
heading,
$789,000,000 is for the equipment and land and struc-
tures object classifications only, which amount shall not
become available for obligation until August 1, 1996, and
shall remain available for obligation until September 30,
1997Ω5æ: Provided further, That notwithstanding any
other provision of law, any veteran eligible for hospital care
or medical services under section 1710 of title 38 may be
treated in the most efficient manner.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of
medical and prosthetic research and development as au-
thorized by law (38 U.S.C. chapter 73), to remain avail-
able until September 30, 1997, Ω6æ$251,743,000
$257,000,000, plus reimbursements.
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Ω7æHEALTH PROFESSIONAL SCHOLARSHIP PROGRAM
For payment of health professional scholarship pro-
gram grants, as authorized by law, to students who agree
to a service obligation with the Department of Veterans
Affairs at one of its medical facilities, $10,386,000.
MEDICAL ADMINISTRATION AND MISCELLANEOUS
OPERATING EXPENSES
For necessary expenses in the administration of the
medical, hospital, nursing home, domiciliary, construction,
supply, and research activities, as authorized by law; ad-
ministrative expenses in support of planning, design,
project management, architectural, engineering, real prop-
erty acquisition and disposition, construction and renova-
tion of any facility under the jurisdiction or for the use
of the Department of Veterans Affairs, including site ac-
quisition; engineering and architectural activities not
charged to project cost; and research and development in
building construction technology; $63,602,000, plus reim-
bursements.
TRANSITIONAL HOUSING LOAN PROGRAM
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $7,000, as authorized
by Public Law 102–54, section 8, which shall be trans-
ferred from the ‘‘General post fund’’: Provided, That such
costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act
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of 1974, as amended: Provided further, That these funds
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $70,000. In ad-
dition, for administrative expenses to carry out the direct
loan program, $54,000, which shall be transferred from
the ‘‘General post fund’’, as authorized by Public Law
102–54, section 8.
DEPARTMENTAL ADMINISTRATION
GENERAL OPERATING EXPENSES
For necessary operating expenses of the Department
of Veterans Affairs, not otherwise provided for, including
uniforms or allowances therefor, as authorized by law; not
to exceed $25,000 for official reception and representation
expenses; hire of passenger motor vehicles; and reimburse-
ment of the General Services Administration for security
guard services, and the Department of Defense for the
cost of overseas employee mail; Ω8æ$821,487,000
$872,000,000: Provided, That funds under this heading
shall be available to administer the Service Members Occu-
pational Conversion and Training Act: Provided further,
That the $25,500,000 earmarked in Public Law 103–327
for the acquisition of automated data processing equip-
ment and services to support the modernization program
of the Veterans Benefits Administration is available for
any expense authorized to be funded under this heading:
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cordance with the procedures established by section 1015
of the Impoundment Control Act of 1974 (title X of Public
Law 93–344): Provided further, That no funds from any
other account except the ‘‘Parking revolving fund’’, may
be obligated for constructing, altering, extending, or im-
proving a project which was approved in the budget proc-
ess and funded in this account until one year after sub-
stantial completion and beneficial occupancy by the De-
partment of Veterans Affairs of the project or any part
thereof with respect to that part only: Provided further,
That of the funds made available under this heading in
Public Law 103–327, $7,000,000 shall be transferred to
the ‘‘Parking revolving fund’’.
CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving
any of the facilities under the jurisdiction or for the use
of the Department of Veterans Affairs, including plan-
ning, architectural and engineering services, maintenance
or guarantee period services costs associated with equip-
ment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system
construction costs, and site acquisition, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102,
8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit-
ed States Code, where the estimated cost of a project is
less than $3,000,000, Ω10æ$152,934,000 $190,000,000, to
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any surplus earnings for that fiscal year that are available
for dividends on such insurance after claims have been
paid and actuarially determined reserves have been set
aside. However, if the amount of such administrative costs
exceeds the amount of such surplus earnings, such reim-
bursement shall be made only to the extent of such surplus
earnings.
‘‘(2) The Secretary shall determine the administra-
tive costs to the Department for a fiscal year for which
this subsection is in effect which, in the judgment of the
Secretary, are properly allocable to the provision of Veter-
ans’ Special Life Insurance (and to the provision of any
total disability income insurance added to the provision
of such insurance).
‘‘(3) This subsection shall be in effect only with re-
spect to fiscal year 1996.’’.
(3) Section 1955 is amended—
(A) in subsection (a), by inserting ‘‘, and
for the reimbursement of administrative costs
under subsection (c)’’ before the period at the
end of the first sentence; and
(B) by adding at the end the following new
subsection:
‘‘(c)(1) For each fiscal year for which this subsection
is in effect, the Secretary shall, from the United States
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Government Life Insurance Fund, reimburse the ‘General
operating expenses’ account of the Department for the
amount of administrative costs determined under para-
graph (2) for that fiscal year. Such reimbursement shall
be made from any surplus earnings for that fiscal year
that are available for dividends on such insurance after
claims have been paid and actuarially determined reserves
have been set aside. However, if the amount of such ad-
ministrative costs exceeds the amount of such surplus
earnings, such reimbursement shall be made only to the
extent of such surplus earnings.
‘‘(2) The Secretary shall determine the administra-
tive costs to the Department for a fiscal year for which
this subsection is in effect which, in the judgment of the
Secretary, are properly allocable to the provision of United
States Government Life Insurance (and to the provision
of any total disability income insurance added to the provi-
sion of such insurance).
‘‘(3) This subsection shall be in effect only with re-
spect to fiscal year 1996.’’.
(4) Section 1982 is amended by striking out
‘‘The United States’’ and inserting in lieu thereof
‘‘Except as provided in sections 1920(c), 1923(d),
and 1955(c) of this title, the United States’’.
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Ω11æSEC. 109. Notwithstanding any other provision
of law, the Secretary of Veterans Affairs is authorized to
transfer, without compensation or reimbursement, the juris-
diction and control of a parcel of land consisting of ap-
proximately 6.3 acres, located on the south edge of the De-
partment of Veterans Affairs Medical and Regional Office
Center, Wichita, Kansas, including buildings Nos. 8 and
30 and other improvements thereon, to the Secretary of
Transportation for the purpose of expanding and moderniz-
ing United States Highway 54: Provided, That if nec-
essary, the exact acreage and legal description of the real
property transferred shall be determined by a survey satis-
factory to the Secretary of Veterans Affairs and the Sec-
retary of Transportation shall bear the cost of such sur-
vey: Provided further, That the Secretary of Transpor-
tation shall be responsible for all costs associated with the
transferred land and improvements thereon, and compli-
ance with all existing statutes and regulations: Provided
further, That the Secretary of Veterans Affairs and the
Secretary of Transportation may require such additional
terms and conditions as each Secretary considers appro-
priate to effectuate this transfer of land.
Ω12æSEC. 110. Funds available to the Department of
Veterans Affairs Revolving Supply Fund shall be available
until September 30, 1997, for expenses necessary to establish
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a Department wide program to develop and implement a
Federal acquisition computer network required by section
9001 of the Federal Acquisition Streamlining Act of 1994
(Public Law 103–355).
Ω13æSEC. 111. The Department of Veterans Affairs
shall provide hospital care and medical services to eligible
veterans in the State of Hawaii at levels commensurate
with levels of care provided in the forty-eight contiguous
States. The Secretary shall utilize the contract authority
prescribed in section 1703 of title 38, United States Code,
to treat eligible veterans residing in the State of Hawaii
wherever appropriate.
Ω14æSEC. 112. PLAN FOR ALLOCATION OF HEALTH
CARE RESOURCES BY DEPARTMENT OF VETERANS AF-
FAIRS.
(a) PLAN.—(1) The Secretary of Veterans Affairs shall
develop a plan for the allocation of health care resources
(including personnel and funds) of the Department of Veter-
ans Affairs among the health care facilities of the Depart-
ment so as to ensure that veterans having similar economic
status, eligibility priority and, or, similar medical condi-
tions who are eligible for medical care in such facilities have
similar access to such care in such facilities regardless of
the region of the United States in which such veterans re-
side.
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(2) The Plan shall reflect, to the maximum extent pos-
sible, the Veterans Integrated Service Network, as well as
the Resource Planning and Management System developed
by the Department of Veterans Affairs to account for fore-
casts in expected workload and to ensure fairness to facili-
ties that provide cost-efficient health care, and shall include
procedures to identify reasons for variations in operating
costs among similar facilities and ways to improve the allo-
cation of resources so as to promote efficient use of resources
and provision of quality health care.
(3) The Secretary shall prepare the plan in consulta-
tion with the Under Secretary of Health of the Department
of Veterans Affairs.
(b) PLAN ELEMENTS.—The plan under subsection (a)
shall set forth—
(1) milestones for achieving the goal referred to
in that subsection; and
(2) a means of evaluating the success of the Sec-
retary in meeting the goals through the plan.
(c) SUBMITTAL TO CONGRESS.—The Secretary shall
submit to Congress the plan developed under subsection (a)
not later than 180 days after the date of the enactment of
this Act.
(d) PLAN IMPLEMENTATION.—The Secretary shall im-
plement the plan developed under subsection (a) within 60
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days of submitting such plan to Congress under subsection
(b), unless within such period the Secretary notifies the ap-
propriate committees of Congress that such plan will not
be implemented along with an explanation of why such
plan will not be implemented.
Ω15æSEC. 113. During fiscal year 1996, not to exceed
$5,700,000 may be transferred from ‘‘Medical care’’ to
‘‘Medical administration and miscellaneous operating ex-
penses’’. No transfer may occur until 20 days after the Sec-
retary of Veterans Affairs provides written notice to the
House and Senate Committees on Appropriations.
TITLE II
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
HOUSING PROGRAMS
ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING
Ω16æFor assistance under the United States Housing
Act of 1937, as amended (‘‘the Act’’ herein) (42 U.S.C.
1437), not otherwise provided for, $10,182,359,000, to re-
main available until expended: Provided, That none of the
funds made available under the head ‘‘Annual contribu-
tions for assisted housing’’ in this Act or any prior Act
shall be expended if such expenditure would cause total
fiscal year 1996 expenditures to exceed $19,939,311,000:
Provided further, That the Secretary shall report to the
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Committees on Appropriations every 90 days on the imple-
mentation of the spending limitation in the preceding pro-
viso: Provided further, That of the total amount provided
under this head, $100,000,000 shall be for the develop-
ment or acquisition cost of public housing for Indian fami-
lies, including amounts for housing under the mutual help
homeownership opportunity program under section 202 of
the Act (42 U.S.C. 1437bb): Provided further, That of the
total amount provided under this head, $2,500,000,000
shall be for modernization of existing public housing
projects pursuant to section 14 of the Act (42 U.S.C.
1437l): Provided further, That during fiscal year 1996, the
Secretary may direct any public housing agency that re-
ceives any part of the foregoing amount, to use such
amount, or any other amount that has been made avail-
able in this or any other prior Act for public housing under
this head or for the HOPE VI/Urban Revitalization Dem-
onstration Program, and that has not been obligated by
the agency, to demolish, reconfigure, or reduce the density
of any public housing project owned by the agency: Pro-
vided further, That of the amounts earmarked under this
head for modernization of existing public housing projects,
$15,000,000 shall be used for the Tenant Opportunity
Program: Provided further, That of the total amount pro-
vided under this head, $862,125,000 shall be available for
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non-incremental rental assistance under the section 8
housing voucher program under section 8(o) of the Act
(42 U.S.C. 1437f(o)): Provided further, That notwith-
standing any other provision of law, voucher assistance
provided under the preceding proviso may be used in con-
nection with legislation enacted after the effective date of
this Act that authorizes assistance for such purpose, as
determined by the Secretary: Provided further, That of the
total amount provided under this head, $1,440,770,000
shall be for special needs housing: Provided further, That
the amount earmarked under the preceding proviso shall
be for capital advances, including amendments to capital
advance contracts, for housing for the elderly, as author-
ized by section 202 of the Housing Act of 1959, as amend-
ed, 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, as amended; capital advances, in-
cluding amendments to capital advance contracts, and
project rental assistance, including amendments to con-
tracts for project rental assistance, for supportive housing
for persons with disabilities, as authorized by section 811
of the Cranston-Gonzalez National Affordable Housing
Act; and housing opportunities for persons with AIDS
under title VIII, subtitle D of the Cranston-Gonzalez Na-
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tional Affordable Housing Act: Provided further, That of
the funds earmarked in this appropriations Act for special
needs housing, 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 objectives of these programs, or
that otherwise impedes the ability to develop, operate or
administer projects assisted under these programs, and
may make provision for alternative conditions or terms
where appropriate: Provided further, That the Secretary
may use up to $200,000,000 from unobligated carryover
balances under this heading as of September 30, 1995,
for assistance for State or local units of government, ten-
ant and nonprofit organizations to purchase projects
where owners have indicated an intention to prepay mort-
gages and for assistance to be used as an incentive to pre-
vent prepayment or for vouchers to aid eligible tenants ad-
versely affected by mortgage prepayment, as authorized
under preservation legislation enacted subsequent to this
Act: Provided further, That of the total amount provided
under this head, $10,000,000 shall be for the lead-based
paint hazard reduction program as authorized under sec-
tion 1053 of the Residential Lead-Based Paint Hazard
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Reduction Act of 1992: Provided further, That of the total
amount provided under this head, $17,300,000 shall be
available for fees for coordinators under section 23(h)(1)
for the Family Self-sufficiency Program (42 U.S.C.
1437u): Provided further, That of the total amount pro-
vided under this head, $4,641,589,000 shall be for assist-
ance under the United States Housing Act of 1937 (42
U.S.C. 1437) for use in connection with expiring or termi-
nating section 8 subsidy contracts: Provided further, That
such amounts shall be merged with funds referenced in
section 204 of this title: Provided further, That the Sec-
retary of Housing and Urban Development may reserve
amounts available for the renewal of assistance under sec-
tion 8 of the United States Housing Act of 1937 and may
use such amounts, upon the termination or expiration of
a contract for assistance under section 8 of the United
States Housing Act of 1937 (other than a contract for
tenant-based assistance and notwithstanding section 8(v)
of such Act for loan management assistance), to provide
voucher assistance under section 8(o) of such Act in the
market area for a number of eligible families equal to the
number of units covered by the terminated or expired con-
tract, which assistance shall be in accordance with terms
and conditions prescribed by the Secretary: Provided fur-
ther, That notwithstanding any other provision of law, as-
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sistance reserved under the preceding proviso may be used
in connection with any provision of Federal law enacted
after the enactment of this Act that authorizes the use
of rental assistance amounts in connection with such ter-
minated or expired contracts: Provided further, That of the
total amount provided under this head, $610,575,000
shall be for amendments to section 8 contracts other than
contracts for projects developed under section 202 of the
Housing Act of 1959, as amended.
For assistance under the United States Housing Act
of 1937, as amended (‘‘the Act’’ herein) (42 U.S.C. 1437),
not otherwise provided for, $5,594,358,000, to remain avail-
able until expended: Provided, That of the total amount
provided under this head, $200,000,000 shall be for the de-
velopment or acquisition cost of public housing for Indian
families, including amounts for housing under the mutual
help homeownership opportunity program under section
202 of the Act (42 U.S.C. 1437bb): Provided further, That
of 
the 
total 
amount 
provided 
under 
this 
head,
$2,510,000,000 shall be for modernization of existing public
housing projects pursuant to section 14 of the Act (42
U.S.C. 1437l), including up to $30,000,000 for the inspec-
tion of public housing units, contract expertise, and train-
ing and technical assistance, directly or indirectly, under
grants, contracts, or cooperative agreements, to assist in the
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oversight and management of public and Indian housing
(whether or not the housing is being modernized with assist-
ance under this proviso) or tenant-based assistance, includ-
ing, but not limited to, an annual resident survey, data
collection and analysis, training and technical assistance
by or to officials and employees of the Department and of
public housing agencies and to residents in connection with
the public and Indian housing program, support of a public
housing institution to provide such training, technical as-
sistance, and education, and training and technical assist-
ance to assist public housing agencies in avoiding designa-
tion as troubled agencies and in qualifying for removal of
such designation: Provided further, That of the total
amount provided under this head, $240,000,000 shall be for
new incremental rental subsidy contracts under the section
8 existing housing certificate program and the housing
voucher program under section 8 of the Act, except that such
amounts shall be used only for units necessary to provide
housing assistance for residents to be relocated from existing
federally subsidized or assisted housing, for replacement
housing for units demolished or disposed of (including units
to be disposed of pursuant to a homeownership program
under section 5(h) or title III of the United States Housing
Act of 1937) from the public housing inventory, for funds
related to litigation settlements, for the conversion of section
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23 projects to assistance under section 8, for public housing
agencies to implement allocation plans approved by the Sec-
retary for designated housing, and for funds to carry out
the family unification program: Provided further, That of
the total amount provided under this head, $500,000,000
shall be for amendments to section 8 contracts other than
contracts for projects developed under section 202 of the
Housing Act of 1959, as amended; $261,000,000 shall be
for section 8 assistance and rehabilitation grants for prop-
erty disposition; and $624,000,000 shall be for assistance
for State or local units of government (including public
housing authorities), tenant and nonprofit organizations to
purchase projects where owners have indicated an intention
to prepay mortgages and for assistance to be used as an
incentive to prevent prepayment or for vouchers (not to ex-
ceed $74,000,000) to aid eligible tenants adversely affected
by mortgage prepayment, as authorized in the Emergency
Low-Income Housing Preservation Act of 1987, as amend-
ed: Provided further, That of the foregoing $624,000,000,
up to $20,000,000 shall be available for preservation tech-
nical assistance grants pursuant to section 253 of the Hous-
ing and Community Development Act of 1987, as amended,
and that the Secretary may designate funding to carry out
plans of action approved prior to October 1, 1995, to permit
purchases of projects by non-profit organizations or tenant
HR 2099 PP
organizations, which are awaiting funding, and which, to
the Secretary’s satisfaction, will be unable to close without
immediate obligation of funding heretofore applied for and
approved: Provided further, That with respect to the fore-
going $624,000,000, if the Secretary determines that the de-
mand for funding may exceed amounts available for such
funding, the Secretary (1) may determine priorities for dis-
tributing available funds, including giving priority funding
to tenants displaced due to mortgage prepayment and to
projects that have not yet been funded but to which funding
has been committed; and (2) may impose a temporary mor-
atorium on applications by potential recipients of such
funding: Provided further, That during fiscal year 1996,
the Secretary of Housing and Urban Development may
manage and dispose of multifamily properties owned by the
Secretary and multifamily mortgages held by the Secretary
as of October 1, 1995 without regard to any other provision
of law: Provided further, That 50 per centum of the
amounts of budget authority, or in lieu thereof 50 per cen-
tum of the cash amounts associated with such budget au-
thority, that are recaptured from projects described in sec-
tion 1012(a) of the Stewart B. McKinney Homeless Assist-
ance Amendments Act of 1988 (Public Law 100–628, 102
Stat. 3224, 3268) shall be rescinded, or in the case of cash,
shall be remitted to the Treasury, and such amounts of
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budget authority or cash recaptured and not rescinded or
remitted to the Treasury shall be used by State housing fi-
nance agencies or local governments or local housing agen-
cies with projects approved by the Secretary of Housing and
Urban Development for which settlement occurred after
January 1, 1992, in accordance with such section: Provided
further, That of the total amount provided under this head,
$171,000,000 shall be for housing opportunities for persons
with AIDS under title VIII, subtitle D of the Cranston-Gon-
zalez National Affordable Housing Act; and $75,000,000
shall be for the lead-based paint hazard reduction program
as authorized under sections 1011 and 1053 of the Residen-
tial Lead-Based Hazard Reduction Act of 1992.
Of the total amount provided under this head,
$780,190,000 shall be for capital advances, including
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-
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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 waive any provision of section 202 of the Hous-
ing 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 Sec-
retary determines is not necessary to achieve the objectives
of these programs, or that otherwise impedes the ability to
develop, operate or administer projects assisted under these
programs, and may make provision for alternative condi-
tions 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, $500,000,000, to remain
available until expended: Provided, That the Secretary shall
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award such funds to public housing agencies by a competi-
tion which includes among other relevant criteria the local
and national impact of the proposed demolition and revi-
talization activities and the extent to which the public hous-
ing agency could undertake such activities without the addi-
tional assistance to be provided hereunder: Provided fur-
ther, That eligible expenditures hereunder shall be those ex-
penditures 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 impose such
conditions and requirements as the Secretary deems appro-
priate to effectuate the purposes of this paragraph: 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 purpose of this paragraph:
Provided further, That in the event an agency selected to
receive funding does not proceed expeditiously as deter-
mined by the Secretary, the Secretary shall withdraw any
funding made available pursuant to this paragraph and
that has not been obligated by the agency and distribute
such funds to one or more other eligible agencies: Provided
further, That of the foregoing $500,000,000, the Secretary
may use up to .67 per centum for technical assistance, to
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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
States Housing Act of 1937, as amended by section
201(b)(2) of this Act.
ASSISTANCE FOR THE RENEWAL OF EXPIRING SECTION 8
SUBSIDY CONTRACTS
(INCLUDING TRANSFER OF FUNDS)
For assistance under the United States Housing Act
of 1937 (42 U.S.C. 1437) not otherwise provided for, for
use in connection with expiring section 8 subsidy contracts,
$4,350,862,000, to remain available until expended: Pro-
vided, That to the extent the amount in this appropriation
is insufficient to fund all expiring section 8 contracts, the
Secretary may transfer to and merge with this appropria-
tion such amounts from the ‘‘Annual contributions for as-
sisted housing’’ appropriation as the Secretary shall deter-
mine, and amounts earmarked in the foregoing account
may be reduced accordingly, at the Secretary’s discretion:
Provided further, That the Secretary may maintain consoli-
dated accounting data for funds disbursed at the public
housing agency or Indian housing authority or project level
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for subsidy assistance regardless of the source of the dis-
bursement so as to minimize the administrative burden of
multiple accounts: Provided further, That the Secretary
may determine not to apply section 8(o)(6)(B) of the Act
to renewals of housing vouchers during fiscal year 1996.
FLEXIBLE SUBSIDY FUND
(INCLUDING TRANSFER OF FUNDS)
From the fund established by section 236(g) of the
National Housing Act, as amended, all uncommitted bal-
ances of excess rental charges as of September 30, 1995,
and any collections during fiscal year 1996 shall be trans-
ferred, as authorized under such section, to the fund au-
thorized under section 201 (j) of the Housing and Com-
munity 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 bal-
ances of authorizations provided for this purpose in appro-
priations Acts: Provided, That up to $163,000,000 of re-
captured section 236 budget authority resulting from the
prepayment of mortgages subsidized under section 236 of
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the National Housing Act (12 U.S.C. 1715z–1) shall be
rescinded in fiscal year 1996.
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), Ω17æ$2,500,000,000 $2,800,000,000.
∆18«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, and for drug information
clearinghouse services authorized by 42 U.S.C. 11921–
11925, $290,000,000, to remain available until expended,
of which $10,000,000 shall be for grants, technical assist-
ance, contracts and other assistance training, program as-
sessment, and execution for or on behalf of public housing
agencies and resident organizations (including the cost of
necessary travel for participants in such training): Pro-
vided, That after setting aside amounts in 42 U.S.C.
11909(b) for grants for federally assisted low-income hous-
ing, the Secretary, notwithstanding 42 U.S.C. 11904, may
provide grants through a formula taking into account the
needs of public housing agencies for anti-crime funding,
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and the amount of funding public housing agencies have
received under this heading during fiscal years 1993, 1994,
and 1995, but which does not exclude an eligible agency
that has not received funding during that period: Provided
further, That the term ‘‘drug-related crime’’, as defined in
42 U.S.C. 11905(2), shall also include other types of crime
as determined by the Secretary.
HOME INVESTMENT PARTNERSHIPS PROGRAM
For the HOME investment partnerships program, as
authorized under title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (Public Law 101–625), as
amended, $1,400,000,000, to remain available until ex-
pended.
Ω19æHOUSING COUNSELING ASSISTANCE
For contracts, grants, and other assistance, other
than loans, not otherwise provided for, for providing coun-
seling and advice to tenants and homeowners—both cur-
rent and prospective—with respect to property mainte-
nance, financial management, and such other matters as
may be appropriate to assist them in improving their hous-
ing conditions and meeting the responsibilities of tenancy
or homeownership, including provisions for training and
for support of voluntary agencies and services as author-
ized by section 106 of the Housing and Urban Develop-
ment Act of 1968, as amended, $12,000,000, notwith-
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standing section 106(c)(9) and section 106(d)(13), of such
Act.
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
Development 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 Congres-
sional Budget Act of 1974, as amended: Provided further,
That these funds are available to subsidize total loan prin-
cipal, any part of which is to be guaranteed, not to exceed
$36,900,000.
HOMELESS ASSISTANCE
HOMELESS ASSISTANCE GRANTS
For Ω20ægrants awarded or allocated by the Secretary
of Housing and Urban Development, through a competition
or by formula, for the purpose of providing housing and
services for homeless individuals and families to be deliv-
ered by entities eligible to receive assistance under, and to
fund eligible activities described in, the emergency shelter
grants program (as authorized under subtitle B of title
IV of the Stewart B. McKinney Homeless Assistance Act
(Public Law 100–77), as amended); the supportive hous-
ing program (as authorized under subtitle C of title IV
of such Act); the section 8 moderate rehabilitation single
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room occupancy program (as authorized under the United
States Housing Act of 1937, as amended) to assist home-
less individuals pursuant to section 441 of the Stewart B.
McKinney Homeless Assistance Act; Ω21æand the shelter
plus care program (as authorized under subtitle F of title
IV of such Act)Ω22æ; and the innovative homeless initia-
tives demonstration program (as described in sections
2(a)–2(f) of the HUD Demonstration Act of 1993 (Public
Law 103–120)), Ω23æ$676,000,000 $760,000,000, to re-
main available until expended. Ω24æTo the extent the Sec-
retary determines to use a formula under this heading, the
Secretary shall use the existing formula as provided under
the Emergency Shelter Grants program under section 413
of the Stewart B. McKinney Homeless Assistance Act and
promulgate any rules under the rulemaking procedures
under section 553 of title 5, United States Code. The Sec-
retary shall report, within one year of the date of enact-
ment, on ways to merge the homeless assistance programs
under the Stewart B. McKinney Homeless Assistance Act
with the HOME program under title II of the Cranston-
Gonzalez National Affordable Housing Act.
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT GRANTS
(INCLUDING TRANSFER OF FUNDS)
For grants to States and units of general local gov-
ernment and for related expenses, not otherwise provided
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for, necessary for carrying out a community development
grants program as authorized by title I of the Housing
and Community Development Act of 1974, as amended
(42 U.S.C. 5301), $4,600,000,000, to remain available
until 
September 
30, 
1998: 
Provided, 
That
Ω25æ$46,000,000 $60,000,000 shall be available for 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), Ω26æ$2,000,000 shall be avail-
able as a grant to the Housing Assistance Council,
$1,000,000 shall be available as a grant to the National
American Indian Housing Council, and Ω27æ$19,500,000
$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 Ω28æa grant using
funds under section 107(b)(3) of such Act a grant made
available under the preceding proviso to the Housing Assist-
ance Council or the National American Indian Housing
Council, or a grant using funds under section 107(b)(3) of
the Housing and Community Development Act of 1974)
shall be expended for ‘‘Planning and Management Devel-
opment’’ and ‘‘Administration’’ as defined in regulations
promulgated by the Department of Housing and Urban
DevelopmentΩ29æ: 
Provided 
further, 
That 
section
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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, not-
withstanding section 907(b)(2) of such ActΩ30æ: 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 the Act.
Ω31æOf the amount provided under this heading, the
Secretary of Housing and Urban Development may use up
to $80,000,000 for grants to public housing agencies (in-
cluding Indian housing authorities), nonprofit corpora-
tions, and other appropriate entities for a supportive serv-
ices program to assist residents of public and assisted hous-
ing, former residents of such housing receiving tenant-based
assistance under section 8 of such Act (42 U.S.C. 1437f),
and other low-income families and individuals become self-
sufficient: Provided, That the program shall provide sup-
portive services to the elderly and the disabled and to fami-
lies with children where the head of 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,
HR 2099 PP
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-
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 program, the extent of success an agency has had in
carrying out other comparable initiatives, and other appro-
priate criteria established by the Secretary: Provided fur-
ther, That of the amount made available under this para-
graph, $12,000,000 shall be available for contracts, grants,
and other assistance, other than loans, not otherwise pro-
vided for, for providing counseling and advice to tenants
and homeowners both current and prospective, with respect
to property maintenance, financial management, and such
other matters as may be appropriate to assist them in im-
HR 2099 PP
proving their housing conditions and meeting the respon-
sibilities of tenancy or homeownership, including provisions
for training and for support of voluntary agencies and serv-
ices as authorized by section 106 of the Housing and Urban
Development Act of 1968, as amended, notwithstanding sec-
tion 106(c)(9) and section 106(d)(13) of such Act. Of the
amount provided under this heading, notwithstanding any
other provision of law, $40,000,000 shall be available for
youthbuild program activities authorized by subtitle D of
title IV of the Cranston-Gonzalez National Affordable Hous-
ing Act, as amended, and shall be an eligible activity with
respect to any funds made available under this heading.
Of the amount provided under this heading, notwithstand-
ing any other provision of law, $80,000,000 shall be avail-
able for Economic Development Initiative grants as author-
ized 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.
For the cost of guaranteed loans, Ω32æ$10,500,000
$15,750,000, as authorized by section 108 of the Housing
and Community Development Act of 1974: Provided, That
such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That
HR 2099 PP
these funds are available to subsidize total loan principal,
any part of which is to be guaranteed, not to exceed
Ω33æ$1,000,000,000 $1,500,000,000. In addition, for ad-
ministrative expenses to carry out the guaranteed loan
program, Ω34æ$225,000 $675,000 which shall be trans-
ferred to and merged with the appropriation for depart-
mental salaries and expenses.
Ω35æ 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
Bullalo, 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
by title V of the Housing and Urban Development Act
of 1970, as amended (12 U.S.C. 1701z–1 et seq.), includ-
ing carrying out the functions of the Secretary under sec-
tion 1(a)(1)(i) of Reorganization Plan No. 2 of 1968,
$34,000,000, to remain available until September 30,
1997.
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Ω36æFAIR HOUSING AND EQUAL OPPORTUNITY
FAIR HOUSING ACTIVITIES
For contracts, grants, and other assistance, not oth-
erwise provided for, as authorized by title VIII of the Civil
Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988, $30,000,000, to remain avail-
able 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 Devel-
opment, not otherwise provided for, including not to ex-
ceed $7,000 for official reception and representation ex-
penses, 
Ω37æ$951,988,000
$980,777,000, 
of 
which
Ω38æ$505,745,000 $532,782,000 shall be provided from
the various funds of the Federal Housing Administration,
and Ω39æ$8,824,000 $9,101,000 shall be provided from
funds of the Government National Mortgage Association,
and Ω40æ$225,000 $675,000 shall be provided from the
Community Development Grants Program account.
OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, Ω41æ$47,388,000
HR 2099 PP
$48,251,000, of which Ω42æ$10,961,000 $11,283,000 shall
be transferred from the various funds of the Federal
Housing Administration.
Ω43æOFFICE 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
National Housing Act, as amended, shall not exceed a loan
principal of $110,000,000,000Ω44æ: Provided, That dur-
ing fiscal year 1996, the Secretary shall sell assigned mort-
gage notes having an unpaid principal balance of up to
$4,000,000,000, which notes were orginally insured under
section 203(b) of the National Housing Act: Provided fur-
HR 2099 PP
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
National 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 con-
nection 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,
Ω45æ$308,846,000 $341,595,000, to be derived from the
FHA-mutual mortgage insurance guaranteed loans receipt
account, of which not to exceed Ω46æ$308,290,000
$334,483,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed Ω47æ$6,790,000 $7,112,000 shall be transferred to
the appropriation for the Office of Inspector General.
FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
Ω48æTotal For the cost of guaranteed loans, as author-
ized by sections 238 and 519 of the National Housing Act
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(12 U.S.C. 1715z–3 and 1735c), including the cost of modi-
fying such loans, $100,000,000, to remain available until
expended: Provided, That such costs shall be as defined in
section 502 of the Congressional Budget Act of 1974: Pro-
vided further, That these funds are available to subsidize
total loan principal any part of which is to be guaranteed
Ω49æshall not of not to exceed Ω50æ$15,000,000,000
$17,400,000,000: Ω51æProvided, 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
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
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section 238 or 519 of the National Housing Act that have
not been Ω52æmade available for obligation obligated or
that are deobligated shall be available to the Secretary of
Housing and Urban Development in connection with the
making of such guarantees and shall remain available
until expended, notwithstanding the expiration of any pe-
riod 
of 
availability 
otherwise 
applicable 
to 
such
amountsΩ53æ:–Provided further, That any amounts of
negative subsidy resulting in fiscal year 1996 from the
sales of assigned mortgage notes or insurance actions that
exceed the amounts of negative subsidy determined to be
generated during such fiscal year, based on the assump-
tions specified in the President’s Budget for such fiscal
year, shall be available to the Secretary for the costs of
any note sales or insurance actions, without regard to
whether the source of the negative subsidy amount is a
note sale or insurance action, and the last proviso of this
paragraph shall not apply to such amounts so used in con-
nection with insurance actions: Provided further, That dur-
ing fiscal year 1996, the Secretary shall sell assigned
mortgage notes having an unpaid principal balance of up
to $2,600,000,000, which notes were originally obligations
of the funds established under sections 238 and 519 of
the National Housing Act: Provided further, That of the
amount appropriated herein, an amount equal to the lesser
HR 2099 PP
of $52,000,000 or the excess of net proceeds above the
value of holding the loans to maturity, such value estab-
lished using assumptions specified in the President’s fiscal
year 1996 Budget adjusted for interest rates at the time
of the sale, shall become available only after such sale has
been completed.
In addition, for the cost of guarantees for loans, as
authorized by sections 238 and 519 of the National Hous-
ing Act (12 U.S.C. 1715z–3 and 1735c), $69,620,000,
Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Con-
gressional Budget Act of 1974.
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 mul-
tifamily real properties owned by the Secretary and for-
merly 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,
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Ω54æ$197,470,000
$202,470,000, 
of 
which
Ω55æ$197,455,000 $198,299,000 shall be transferred to
the appropriation for departmental salaries and expenses;
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,
Ω56æ$8,824,000 $9,101,000, to be derived from the
GNMA—guarantees of mortgage-backed securities guar-
anteed loan receipt account, of which not to exceed
Ω57æ$8,824,000 $9,101,000 shall be transferred to the ap-
propriation for departmental salaries and expenses.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRENSFER OF FUNDS)
Ω58æSEC.
201.
PUBLIC
HOUSING.
(a)
CEILING
RENTS.—Notwithstanding section 3(a) of the United
States Housing Act of 1937, as amended, public housing
agencies shall provide that the amount of rent paid by a
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family occupying a dwelling unit in public housing during
fiscal year 1996 does not exceed the maximum monthly
rental amount, which shall be established for the dwelling
unit by the public housing agency that owns or admin-
isters the unit and may not exceed an amount determined
by the agency based upon—
(1) the average, for dwelling units of similar
size in public housing developments owned and oper-
ated by such agency, of any monthly amount of debt
service and operating expenses attributable to such
units;
(2) the reasonable rental value of the unit; or
(3) the local market rent for comparable units
of similar size.
(b) DEMOLITION AND DISPOSITION.—
(1)
INAPPLICABILITY
OF
REPLACEMENT
RULE.—With respect to any application under sec-
tion 18 of the United States Housing Act of 1937,
as amended, for the demolition or disposition of pub-
lic housing, including an application submitted under
paragraph (3), that is approved during fiscal year
1996, the provisions of subsection (b)(3) of such sec-
tion shall not apply with respect to—
(A) the approval of such application; or
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(B) the demolition or disposition of any
public housing pursuant to such application.
(2) CONFORMING PROVISION.—The requirement
under section 18(d) of such Act that a public hous-
ing agency satisfy the conditions specified in section
18(b)(3) of such Act as a condition of taking action
to demolish or dispose of public housing shall not
apply with respect to any application under such sec-
tion 18 approved during such fiscal year.
(3) AUTHORITY TO RESUBMIT APPLICATIONS.—
Any public housing agency that, before fiscal year
1996, submitted to the Secretary an application
under section 18 of such Act for demolition or dis-
position of public housing may (regardless of wheth-
er such application has been approved) at any time
during fiscal year 1996 submit an application sub-
ject to the provisions of this subsection that covers
some or all of the property covered by such previous
application and, to the extent the same property is
covered by both applications, the Secretary shall
treat the latter application as replacing the previous
application.
(c)
APPLICABILITY.—In
accordance
with
section
201(b)(2) of the United States Housing Act of 1937, as
amended, the provisions of this section shall apply to pub-
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lic housing developed or oterated pursuant to a contract
between the Secretary of Housing and Urban Develop-
ment and an Indian housing authority.
SEC. 202. RENTAL ASSISTANCE UNDER SECTION 8
OF UNITED STATES HOUSING ACT OF 1937. (a) IN-
CREASE OF FAMILY RENTAL PAYMENT.—Notwithstand-
ing sections 3(a) and 8(o)(2) of the United States Housing
Act of 1937, as amended, effective for fiscal year 1996—
(1) public housing agencies shall increase to 32
percent the percentage of the family’s monthly ad-
justed income used in determining—
(A) the amount of monthly rent required
to be paid by each family who is assisted under
the certificate or moderate rehabilitation pro-
gram under section 8 of such Act; and
(B) the amount of the monthly assistance
payment for each family who is assisted under
the voucher program under section 8 of such
Act; and
(2) owners of housing assisted under other pro-
grams for rental assistance under section 8 of such
Act shall increase to 32 percent the percentage of a
family’s adjusted monthly income used in determin-
ing the rent required to be paid by each family as-
sisted under any such program.
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(b) MINIMUM RENTS.—Notwithstanding subsection
(a) of this section or sections 3(a) and 8(o)(2) of the Unit-
ed States Housing Act of 1937, as amended, effective for
fiscal year 1996 and no later than October 30, 1995—
(1) public housing agencies shall require each
family who is assisted under the certificate or mod-
erate rehabilitation program under section 8 of such
Act to pay for monthly rent an amount that is not
less than the sum of $50 for the unit;
(2) public housing agencies shall reduce the
monthly assistance payment on behalf of each family
who is assisted under the voucher program under
section 8 of such Act so that the family pays for
monthly rent an amount that is not less than the
sum of $50 for the unit; and
(3) owners of housing assisted under other pro-
grams for rental assistance under section 8 of such
Act shall require each family who is assisted under
such program to pay for monthly rent an amount
that is not less than the sum of $50 for the unit.
(c) FAIR MARKET RENTALS.—The Secretary shall
establish fair market rentals for purposes of section
8(c)(1) of the United States Housing Act of 1937, as
amended, that shall be effective for fiscal year 1996 and
shall be based on the 40th percentile rent of rental dis-
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tributions of standard quality rental housing units. In es-
tablishing such fair market rentals, the Secretary shall
consider only the rents for dwelling units occupied by re-
cent movers and may not consider the rents for public
housing dwelling units or newly constructed rental dwell-
ing units.
(d) ANNUAL ADJUSTMENTS.—Section 8(c)(2)(A) of
the United States Housing Act of 1937, as amended (42
U.S.C. q437f(c)(2)(A))!is further amended—
(1) in the third sentence by inserting ‘‘and fis-
cal year 1996’’ after ‘‘1995’’; and
(2) in the last sentence by inserting ‘‘and fiscal
year 1996’’ after ‘‘1995’’.
(e) ADMINISTRATIVE FEES.—Notwithstanding the
second sentence of section 8(q)(1) of the United States
Housing Act of 1937, as amended, for fiscal year 1996,
the portions of the fees for costs incurred by public hous-
ing agencies in administering the certificate, voucher, and
moderate rehabilitation programs under section 8 shall not
exceed 7.0 percent of the fair market rental estaflished
for a 2-bedroom existing rental dwelling unit in the market
area of the public housing agency.
(f) DELAY
OF ISSUANCE
AND REISSUANCE
OF
VOUCHERS
AND CERTIFICATES.—Notwithstanding any
other provision of law, a public housing agency administer-
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ing certificate or voucher assistance provided under sub-
section (b) or (o) of section 8 of the United States Hous-
ing Act of 1937, as amended, shall delay—
(1) until October 1, 1996, the initial issuance
of any such tenant-based assistance representing in-
cremental assistance allocated in fiscal year 1996;
and
(2) for 6 months, the use of any amounts of
such assistance (or the certificate or voucher rep-
resenting assistance amounts) made available by the
termination during fiscal year 1996 of such assist-
ance on behalf of any family for any reason, but not
later than October 1, 1996.
SEC. 203. PREFERENCES
FOR HOUSING ASSIST-
ANCE. (a) PUBLIC HOUSING.—
(1) IN
GENERAL.—During fiscal year 1996,
dwelling units in public housing that are available
for occupancy shall be made available—
(A) without regard to the requirements re-
garding
preferences
set
forth
in
section
6(c)(4)(A) of the United States Housing Act of
1937, as amended; and
(B) subject to a system of preferences that
the public housing agency for the public hous-
ing may establish, which shall be based upon
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local housing needs and priorities, as deter-
mined by the agency.
(2) APPLICABILITY.—Paragraph (1)(B) shall
not apply to projects or portions of projects des-
ignated for occupancy pursuant to section 7(a) of
the United States Housing Act of 1937, as amend-
ed, for which the Secretary has determined that ap-
plication of such paragraph would result in excessive
delays in meeting the housing need of such families.
In accordance with section 201(b)(2) of the United
States Housing Act of 1937, as amended, the provi-
sions of this subsection shall apply to public housing
developed or operated pursuant to a contract be-
tween the Secretary of Housing and Urban Develop-
ment and an Indian housing authority.
(b) SECTION 8 ASSISTANCE.—During fiscal year
1996, the selection of families for assistance under section
8 of the United States Housing Act of 1937, as amend-
ed—
(1) shall not be subject to the requirements re-
garding preferences set forth in sections 8(d)(1)(A)
and 8(o)(3)(B) of the United States Housing Act of
1937, as amended; and
(2) shall be subject to a system of preferences
that may be established by the public housing agen-
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cy administering such assistance, which shall be
based upon local housing needs and priorities, as de-
termined by the agency.
(c) CONFORMING PROVISIONS.—Each reference in
sections 6(o), 7(a)(2), 7(a)(3), 8(d)(2)(A), 8(d)(2)(H),
16(c), and 24(e)(2) of the United States Housing Act of
1937, as amended, sections 212(a)(3), 217(c)(2)(B),
225(d)(3),
455(a)(2)(D)(iii),
522(f)(6)(B),
and
522(j)(2)(A) of the Cranston-Gonzalez National Afford-
able Housing Act, section 226(b)(6)(B) of the Low-In-
come Housing Preservation and Resident Homeownership
Act of 1990, section r03(g)(2) of the Housing and Com-
munity Development Amendments of 1978, and section
655 of the Housing and Community Development Act of
1992,
to
the
preferences
under
section
6(c)(4)(A),
8(d)(1)(A), or 8(o)(3)(B) of the United States Housing
Act of 1937, as amended, shall be considered, during fiscal
year 1996, to refer to the applicable preferences estab-
lished (if any) under the subsections (a)(1)(B) and (b)(2).
(d) NEW CONSTRUCTION/SUBSTANTIAL REHABILITA-
TION HOUSING.—During fiscal year 1996, dwelling units
in housing constructed or substantially rehabilitated pur-
suant to assistance provided under section 8(b)(2) of the
United States Housing Act of 1937, as amended (as such
section existed before October 1, 1983) and projects fi-
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nanced under section 202 of the Housing Act of 1959 (as
such section existed before the enactment of the Cranston-
Gonzalez National Affordable Housing Act) shall be made
available for occupancy without regard to section 545(c)
of the Cranston-Gonzalez National Affordable Housing
Act and no other provision of law relating to Federal ten-
ant selection preferences shall apply to such housing.
(e) RENT SUPPLEMENTS.—During fiscal year 1996,
section 101(k) of the Housing and Urban Development
Act of 1965 shall not be effective.
SEC. 204. MERGER LANGUAGE FOR ASSISTANCE FOR
THE RENEWAL OF EXPIRING SECTION 8 OF SUBSIDY
CONTRACTS AND ANNUAL CONTRIBUTIONS FOR ASSISTED
HOUSING.—All remaining obligated and unobligated bal-
ances in the Renewal of Expiring Section 8 Subsidy Con-
tracts account on September 30, 1995, shall immediately
thereafter be transferred to and merged with the obligated
and unobligated balances, respectively, of the Annual Con-
tributions for Assisted Housing account.
SEC. 205. EXTENSION OF HOME EQUITY CONVER-
SION MORTGAGE PROGRAM.—Section 255(g) of the Na-
tional Housing Act (12 U.S.C. 1715z–20(g)) is amend-
ed—
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(1) in the first sentence, by striking ‘‘Septem-
ber 30, 1995’’ and inserting ‘‘September 30, 1996’’;
and
(2)
in
the
second
sentence,
by
striking
‘‘25,000’’ and inserting ‘‘30,000’’.
SEC. 206. DEBT FORGIVENESS.—(a) The Secretary
of Housing and Urban Development shall cancel the in-
debtedness of the Hubbard Hospital Authority of Hub-
bard, Texas, relating to the public facilities loan for
Project Number PFL–TEX–215, issued under title II of
the Housing Amendments of 1955. Such hospital author-
ity is relieved of all liability to the Government for the
outstanding principal balance on such loan, for the
amount of accrued interest on such loan, and for any fees
and charges payable in connection with such loan.
(b) The Secretary of Housing and Urban Develop-
ment shall cancel the indebtedness of the Groveton Texas
Hospital Authority relating to the public facilities loan for
Project Number TEX–41–PFL0162, issued under title II
of the Housing Amendments of 1955. Such hospital au-
thority is relieved of all liability to the Government for
the outstanding principal balance on such loan, for the
amount of accrued interest on such loan, and for any fees
and charges payable in connection with such loan.
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SEC. 207. DELAYING OUTLAYS FOR PUBLIC HOUS-
ING DEVELOPMENT.—During fiscal year 1996, a public
housing agency or Indian housing authority may slow the
rate at which it develops a project that the Secretary has
approved under 24 C.F.R. Part 941 in order to slow the
rate at which such agency or authority takes actions re-
sulting in outlays of amounts appropriated under the head
‘‘Annual contributions for assisted housing’’ in this title
or any prior appropriation Act, and the Secretary may
allow such agency or authority to develop a project at such
a slow rate, notwithstanding 24 C.F.R. Sec. 941.405(d).
SEC. 208. ASSESSMENT COLLECTION DATES FOR
OFFICE
OF FEDERAL HOUSING ENTERPRISE OVER-
SIGHT.—Section 1316(b) of the Housing and Community
Development Act of 1992 (12 U.S.C. 4516(b)) is amended
by striking paragraph (2) and inserting the following new
paragraph:
‘‘(2) TIMING OF PAYMENT.—The annual assess-
ment shall be payable semiannually for each fiscal
year, on October 1st and April 1st.’’.
SEC. 209. SPENDING LIMITATIONS.—(a) None of the
funds provided in this Act may be used during fiscal year
1996 to sign, promulgate, implement, or enforce any re-
quirement or regulation relating to the application of the
Fair Housing Act (42 U.S.C. 3601, et seq.) to the busi-
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ness of property insurance, or for any activity pertaining
to property insurance.
(b) None of the funds appropriated by this Act may
be expended by the Department for the purpose of finaliz-
ing the Department’s proposed rule dated July 21, 1994
regarding amendments to Regulation X, the Real Estate
Settlement Procedures Regulation, or for the purpose of
developing or issuing any interpretive rule with respect to
any of the four issues denominated in the preamble to the
proposed rule.
(c) None of the funds provided in this Act may be
used in fiscal year 1996 for the remuneration of more than
seven Assistant Secretaries at the Department of Housing
and Urban Development, notwithstanding section 4(a) of
the Department of Housing and Urban Development Act.
(d) None of the funds provided in this Act may be
used in fiscal year 1996 for the remuneration of more than
94 schedule C and non-career senior executive service em-
ployees at the Department of Housing and Urban Devel-
opment.
(e) None of the funds made available in this Act may
be used by the Secretary to take, impose, or enforce, or
to investigate taking, imposing, or enforcing any action,
sanction, or penalty against any State or unit of general
local government (or any entity or agency thereof) because
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of the enactment, enforcement, or effectiveness of any
State or local law or regulation requiring the spoken or
written use of the English language or declaring English
as the official language.
(f) No part of any appropriation contained in this Act
shall be used for publicity or propaganda purposes not au-
thorized by the Congress.
SEC. 210. CLARIFICATIONS.—For purposes of Fed-
eral law, the Paul Mirabile Center in San Diego, Califor-
nia, including areas within such Center that are devoted
to the delivery of supportive services, has been determined
to satisfy the ‘‘continuum of care’’ requirements of the De-
partment of Housing and Urban Development, and shall
be treated as:
(a) consisting solely of residential units that (i)
contain sleeping accommodations and kitchen and
bathroom facilities, (ii) are located in a building that
is used exclusively to facilitate the transition of
homeless individuals (within the meaning of section
103 of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.W.C. 11302)) to independent living
within 24 months, (iii) are suitable for occutancy,
with each cubicle constituting a separate bedroom
and residential unit, (iv) are used on other than a
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transient basis, and (v) shall be originally placed in
service on August 1, 1995; and
(b) property that is entirely residential rental
property, namely, a project for residential rental
property.
SEC. 211. EXTENSION OF MULTIFAMILY HOUSING
FINANCE PROGRAMS.—(a) Section 542(b)(5) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1707 note) is amended by striking ‘‘on not more than
15,000 units over fiscal years 1993 and 1994’’ and insert-
ing ‘‘on not more than 7,500 units during fiscal year
1996’’.
(b) Section 542(c)(4) of the Housing and Community
Development Act of 1992 (12 U.S.C. 1707 note) is
amended by striking ‘‘on not to exceed 30,000 units over
fiscal years 1993, 1994, and 1995’’ and inserting ‘‘on not
more than 10,000 units during fiscal year 1996’’.
SEC.
212.
DOCUMENTATION
OF
MULTIFAMILY
REFINANCINGS.—Notwithstanding the 16th paragraph
under the item relating to ‘‘ADMINISTRATIVE PROVI-
SIONS’’ in title II of the Departments of Veterans Affairs
and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1995 (Public Law 103–327;
108 Stat. 2316), the amendments to section 223(a)(7) of
the National Housing Act made by the 15th paragraph
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of such Act shall be effective during fiscal years 1996 and
thereafter.
SEC. 201. EXTEND ADMINISTRATIVE PROVISIONS FROM
THE RESCISSION ACT.
(a) PUBLIC AND INDIAN HOUSING MODERNIZATION.—
(1) EXPANSION
OF
USE
OF
MODERNIZATION
FUNDING.—Subsection 14(q) of the United States
Housing Act of 1937 is amended to read as follows:
‘‘(q)(1) In addition to the purposes enumerated in sec-
tions 14(a), 14(b), and 5(a), a public housing agency may
use modernization assistance provided under section 14,
and development assistance provided under section 5(a), for
any eligible activity authorized by either of those sections
or by applicable Appropriations Acts, including the demoli-
tion, rehabilitation, revitalization, and replacement of ex-
isting units and projects and, for up to 10 percent of its
allocation of such funds in any fiscal year, for any operat-
ing subsidy purpose authorized in section 9. Units and
projects assisted hereunder shall be for low-income families
and shall be eligible for operating subsidies subject to the
availability of appropriated funds.
‘‘(2) A public housing agency may provide assistance
to developments that include units for other than low-in-
come families, hereinafter called ‘‘mixed income develop-
ments’’, in the form of a grant, loan, or other form of invest-
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ment which may be made to: (A) the public housing agency
or an affiliate controlled by it; (B) a partnership, a limited
liability company, or other legal entity in which the public
housing agency or its affiliate is a general partner, manag-
ing member, or otherwise significantly directs the activities
of such entity; or (C) any entity which grants to the public
housing agency the option to purchase the development
within 20 years after initial occupancy in accordance with
section 42(l)(7) of the Internal Revenue Code of 1986, as
amended: Provided, That units shall be made available in
such developments for periods of not less than 20 years, by
master contract or by individual lease, for occupancy by
low-income families referred from time to time by the public
housing agency; the number of such units shall be either:
(i) in the same proportion to the total number of units in
such development that the financial assistance provided by
the public housing agency bears to the total equity invest-
ment in the development, or (ii) not be less than the number
of units that could have been developed under the conven-
tional public housing program with the assistance 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
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by public housing funds would otherwise be subject to sec-
tion 6(d) of the Housing Act of 1937.’’.
(2) EXTENSION OF AUTHORITY.—Section 1001(b)
of the Emergency Supplemental Appropriations for
Additional Disaster Assistance, for Antiterrorism Ini-
tiatives, for Assistance in the Recovery from the Trag-
edy that Occurred at Oklahoma City, and Rescissions
Act, 1995 (109 Stat. 235), is amended to read as fol-
lows:
‘‘(b) APPLICABILITY.—Section 14(q) of the United
States Housing Act of 1937, as added 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.—In accordance with section
201(b)(2) of the United States Housing Act of 1937,
the amendment made by subsection (a) shall apply to
public housing developed or operated pursuant to a
contract between the Secretary of Housing and Urban
Development and an Indian housing authority.’’.
(b) ONE-FOR-ONE REPLACEMENT OF PUBLIC AND IN-
DIAN HOUSING.—
(1) PERMANENT
AUTHORITY.—Section 1002(d)
of Public Law 104–19 is amended to read as follows:
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‘‘(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
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 preced-
ing sentence as the basis for reconsidering a final
order of a court issued, or a settlement 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 section and by sections
1002 (a), (b), and (c) of Public Law 104–19 shall
apply to public housing developed or operated pursu-
ant to a contract between the Secretary of Housing
and Urban Development and an Indian housing au-
thority.
SEC. 
202. 
PUBLIC 
HOUSING 
RENTS 
AND 
INCOME
TARGETING.
(a) MINIMUM RENTS.—Section 3(a)(1) of the United
States Housing Act of 1937 is amended by inserting at the
end the following new sentence: ‘‘Where the rent determined
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under the previous sentence is less than $25, the Secretary
shall permit a public housing agency to charge a family
residing in public housing up to $25 as rent.’’.
(b) ESTABLISHMENT
OF CEILING RENTS.—Section
3(a)(2) of the United States Housing Act of 1937 is amend-
ed to read as follows:
‘‘(2) Notwithstanding paragraph (1), a public
housing agency may—
‘‘(A) adopt ceiling rents that reflect the rea-
sonable market value of the housing, but that are
not less than the monthly costs—
‘‘(i) to operate the housing of the agen-
cy; and
‘‘(ii) to make a deposit to a replace-
ment reserve (in the sole discretion of the
public housing agency); and
‘‘(B) allow families to pay ceiling rents re-
ferred to in subparagraph (A), unless, with re-
spect to any family, the ceiling rent established
under this paragraph would exceed the amount
payable as rent by that family under paragraph
(1).’’.
(c) DEFINITION
OF
ADJUSTED
INCOME.—Section
3(b)(5) of the United States Housing Act of 1937 is amend-
ed—
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(1) at the end of subparagraph (F), by striking
‘‘and’’;
(2) at the end of subparagraph (G), by striking
the period and inserting ‘‘; and ’’; and
(3) by inserting after subparagraph (G) the fol-
lowing:
‘‘(H) for public housing, any other adjust-
ments to earned income established by the public
housing agency.
If a public housing agency adopts other adjustments
to income pursuant to subparagraph (H), the Sec-
retary (i) shall not take into account any reduction
of or increase in the public housing agency’s per unit
dwelling rental income resulting from those adjust-
ments when calculating the contributions under sec-
tion 9 for the public housing agency for the operation
of the public housing.’’.
(d) REPEAL OF FEDERAL PREFERENCES.—
(1) PUBLIC HOUSING.—
Section 6(c)(4)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A))
is amended to read as follows:
‘‘(A) the establishment, after public notice
and an opportunity for public comment, of writ-
ten system of preferences for admission to public
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housing, if any, that is not inconsistent with the
comprehensive housing affordability strategy
under title I of the Cranston-Gonzalez National
Affordable Housing Act;’’.
(2) SECTION 8 EXISTING AND MODERATE REHA-
BILITATION.—Section 8(d)(1)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)) is
amended to read as follows:
‘‘(A) the selection of tenants shall be the
function of the owner, subject to the provisions of
the annual contributions contract between the
Secretary and the agency, except that for the cer-
tificate and moderate rehabilitation programs
only, for the purpose of selecting families to be
assisted, the public housing agency may estab-
lish, after public notice and an opportunity for
public comment, a written system of preferences
for selection that is not inconsistent with the
comprehensive housing affordability strategy
under title I of the Cranston-Gonzalez National
Affordable Housing Act;’’.
(3) SECTION
VOUCHER
PROGRAM.—Section
8(o)(3)(B) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)(3)(B)) is amended to read as fol-
lows:
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‘‘(B) For the purpose of selecting families to
be assisted under this subsection, the public hous-
ing agency may establish, after public notice and
an opportunity for public comment, a written
system of preferences for selection that is not in-
consistent with the comprehensive housing af-
fordability strategy under title I of the Cranston-
Gonzalez National Affordable Housing Act.’’.
(4) SECTION 8 NEW CONSTRUCTION AND SUB-
STANTIAL REHABILITATION.—
(A) REPEAL.—Section 545(c) of the Cran-
ston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437f note) is amended to read as fol-
lows:
‘‘(c) [Reserved.]’’.
(B) PROHIBITION.—Notwithstanding any
other provision of law, no Federal tenant selec-
tion preferences shall apply with respect to—
(i) housing constructed or substantially
rehabilitated pursuant to assistance pro-
vided under section 8(b)(2) of the United
States Housing Act of 1937 (as such section
existed on the day before October 1, 1983);
or
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(ii) projects financed under section 202
of the Housing Act of 1959 (as such section
existed on the day before the date of enact-
ment of the Cranston-Gonzalez National Af-
fordable Housing Act).
(5) RENT SUPPLEMENTS.—Section 101(k) of the
Housing and Urban Development Act of 1965 (12
U.S.C. 1701s(k)) is amended to read as follows:
‘‘(k) [Reserved.]’’.
(6) CONFORMING AMENDMENTS.—
(A) UNITED
STATES
HOUSING
ACT
OF
1937.—The United States Housing Act of 1937
(42 U.S.C. 1437 et seq.) is amended—
(i) in section 6(o), by striking ‘‘pref-
erence rules specified in’’ and inserting
‘‘written system of prefenences for selection
established pursuant to’’;
(ii) in section 7(a)(2), by striking ‘‘ac-
cording to the preferences for occupancy
under’’ and inserting ‘‘in accordance with
the written system of preferences for selec-
tion established pursuant to’’;
(iii) in section 8(d)(2)(A), by striking
the last sentence;
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(iv) in section 8(d)(2)(H), by striking
‘‘notwithstanding subsection (d)(1)(A)(i),
an’’ and inserting ‘‘An’’;
(v) in section 16(c), in the second sen-
tence, by striking ‘‘the system of preferences
established by the agency pursuant to sec-
tion 6(c)(4)(A)(ii)’’ and inserting ‘‘the writ-
ten system of preferences for selection estab-
lished by the public housing agency pursu-
ant to section 6(c)(4)(A)’’; and
(vi) in section 24(e)—
(I) by striking ‘‘(e) EXCEPTIONS.’’
and all that follows through ‘‘The Sec-
retary may’’ and inserting the follow-
ing:
‘‘(e) EXCEPTION TO GENERAL PROGRAM REQUIRE-
MENTS.—The Secretary may’’; and
(II) by striking paragraph (2).
(B) CRANSTON-GONZALEZ
NATIONAL
AF-
FORDABLE HOUSING ACT.—Section 522(f)(b)(B)
of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704 et seq.) is amend-
ed by striking ‘‘any preferences for such assist-
ance under section 8(d)(1)(A)(i)’’ and inserting
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‘‘written system of preferences for selection estab-
lished pursuant to section 8(d)(1)(A)’’.
(C) HOUSING
AND
COMMUNITY
DEVELOP-
MENT ACT OF 1992.—Section 655 of the Housing
and Community Development Act of 1992 (42
U.S.C. 13615) is amended by striking ‘‘the pref-
erences’’ and all that follows through the period
at the end and inserting ‘‘any preferences’’.
(D) REFERENCES IN OTHER LAW.—Any ref-
erence in any Federal law other than any provi-
sion of any law amended by paragraphs (1)
through (5) of this subsection to the preferences
for 
assistance 
under 
section 
6(c)(4)(A)(i),
8(d)(1)(A)(i), or 8(o)(3)(B) of the United States
Housing Act of 1937 (as such sections existed on
the day before the date of enactment of this Act)
shall be considered to refer to the written system
of preferences for selection established pursuant
to section 6(c)(4)(A), 8(d)(1)(A), or 8(o)(3)(B),
respectively, of the United States Housing Act of
1937, as amended by this section.
(e) APPLICABILITY.—In accordance with section
201(b)(2) of the United States Housing Act of 1937, the
amendments made by subsections (a), (b), (c), and (d) of
this section shall also apply to public housing developed or
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operated pursuant to a contract between the Secretary of
Housing and Urban Development and an Indian housing
authority.
SEC. 203. CONVERSION OF CERTAIN PUBLIC HOUSING TO
VOUCHERS.
(a) IDENTIFICATION OF UNITS.—
(1) Each public housing agency shall identify
any public housing developments—
(A) that are on the same or contiguous sites;
(B) that total more than—
(i) 600 dwelling units; or
(ii) in the case of high-rise family
buildings or substantially vacant buildings,
300 dwelling units;
(C) that have a vacancy rate of at least 10
percent for dwelling units not in funded on-
schedule modernization programs;
(D) identified as distressed housing that the
public housing agency cannot assure the long-
term viability as public housing through revital-
ization, density reduction, or achievement of a
broader range of household income; and
(E) for which the estimated cost of contin-
ued operation and modernization of the develop-
ments as public housing exceeds the cost of pro-
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viding tenant-based assistance under section 8 of
the United States Housing Act of 1937 for all
families in occupancy, based on appropriate in-
dicators of cost (such as the percentage of total
development cost required for modernization).
(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).
(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
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(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
public housing agency and the annual contributions
contract. The plan shall be approved by the relevant
local official as consistent with the Comprehensive
Housing Affordability Strategy under title I of the
Housing and Community Development Act of 1992,
including a description of any disposition and demo-
lition plan for the public housing units.
(2) The Secretary may extend the deadline in
paragraph (1) for up to an additional five years
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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) from the inventory of a public housing
agency, if the public housing agency fails to ade-
quately develop a plan under paragraph (1), or fails
to adequately implement such plan in accordance
with the terms of the plan.
(4) To the extent approved in appropriations,
the Secretary may establish requirements and provide
funding under the Urban Revitalization Demonstra-
tion program for demolition and disposition of public
housing under this section.
(5) Notwithstanding any other provision of law,
if a development is removed from the inventory of a
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;
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(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 of such
agency.
(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—
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(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
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.
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(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.
SEC. 204. STREAMLINING SECTION 8 TENANT-BASED AS-
SISTANCE.
(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,’’.
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SEC. 205. (a) FAIR MARKET RENTALS.—The Sec-
retary shall establish fair market rentals for purposes of sec-
tion 8(c)(1) of the United States Housing Act of 1937, as
amended, that shall be effective for fiscal year 1996 and
shall be based on the 40th percentile rent of rental distribu-
tions of standard quality rental housing units. In establish-
ing such fair market rentals, the Secretary shall consider
only the rents for dwelling units occupied by recent movers
and may not consider the rents for public housing dwelling
units or newly constructed rental dwelling units.
(b) ANNUAL ADJUSTMENTS.—Section 8(c)(2)(A) of the
United States Housing Act of 1937, as amended (42 U.S.C.
1437f(c)(2)(A)) is further amended—
(1) in the third sentence by inserting ‘‘and fiscal
year 1996’’ after ‘‘1995’’;
(2) in the fourth sentence, strike ‘‘For’’ and in-
sert: ‘‘Except for assistance under the certificate pro-
gram, for’’;
(3) after the fourth sentence, insert:
‘‘In the case of assistance under the certificate pro-
gram, 0.01 shall be subtracted from the amount of the
annual adjustment factor (except that the factor shall
not be reduced to less than 1.0), and the adjusted rent
shall not exceed the rent for a comparable unassisted
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unit of similar quality, type, and age in the same
market area.’’; and
(4) in the last sentence, by
(A) striking ‘‘sentence’’ and inserting ‘‘two
sentences’’ and
(B) inserting ‘‘and fiscal year 1996’’ after
‘‘1995’’.
(c) ADMINISTRATIVE FEES.—Notwithstanding the sec-
ond sentence of section 8(q)(1) of the United States Housing
Act of 1937, as amended, for fiscal year 1996, the portions
of the fees for costs incurred by public housing agencies in
administering the certificate, voucher, and moderate reha-
bilitation programs under section 8 shall not exceed 7.0 per-
cent of the fair market rental established for a 2-bedroom
existing rental dwelling unit in the market area of the pub-
lic housing agency.
(d) DELAY REISSUANCE OF VOUCHERS AND CERTIFI-
CATES.—Notwithstanding any other provision of law, a
public housing agency administering certificate or voucher
assistance provided under subsection (b) or (o) of section
8 of the United States Housing Act of 1937, as amended,
shall delay for 6 months, the use of any amounts of such
assistance (or the certificate or voucher representing assist-
ance amounts) made available by the termination during
fiscal year 1996 of such assistance on behalf of any family
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for any reason, but not later than October 1, 1996; with
the exception of any certificates assigned or committed to
project based assistance as permitted otherwise by the Act,
accomplished prior to the effective date of this Act.
SEC. 206. PUBLIC HOUSING/SECTION 8 MOVING TO WORK
DEMONSTRATION.
(a) PURPOSE.—The purpose of this demonstration is
to give public housing agencies and the Secretary of Hous-
ing 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 fam-
ilies 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 become economically self-
sufficient; and increase housing choices for lower-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-
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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
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;
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(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) selecting families to be assisted, which
shall require that at least 75 percent of the fami-
lies selected to participate in the demonstration
shall be very low-income families, as defined in
section 3(b)(2) of the United States Housing Act
of 1937, and at least 50 percent of the families
selected shall have incomes that do not exceed 30
percent of the median family income for the
area, as determined by the Secretary with ad-
justments for smaller and larger families, except
that the Secretary may establish income ceilings
higher or lower than 30 percent of the median
for the area on the basis of the Secretary’s find-
ings that such variations are necessary because
of unusually high or low family income;
(B) setting reasonable rents payable by fam-
ilies, which shall be designed to encourage em-
ployment and self-sufficiency by participating
families, consistent with the purpose of this dem-
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onstration, such as by excluding some or all of
a family’s earned income for purposes of deter-
mining 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;
(E) assuring that housing assisted under
the demonstration program meets housing qual-
ity standards established or approved by the Sec-
retary; and
(F) other program design features required
by the Secretary; and
(4) may request assistance for training and tech-
nical assistance to assist with design of the dem-
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-
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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
occupied by families receiving tenant-based assist-
ance.
(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 affected by its participation.
(g) RECORDS, REPORTS, AND AUDITS.—
(1) KEEPING OF RECORDS.—Each agency shall
keep such records as the Secretary may prescribe as
reasonably necessary to disclose the amounts and the
disposition of amounts under this demonstration, to
ensure compliance with the requirements of this sec-
tion, and to measure performance.
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(2) REPORTS.—Each agency shall submit to the
Secretary a report, or series of reports, in a form and
at a time specified by the Secretary. Each report
shall—
(A) document the use of funds made avail-
able under this section;
(B) provide such data as the Secretary may
request to assist the Secretary in assessing the
demonstration; and
(C) describe and analyze the effect of as-
sisted activities in addressing the objectives of
this part.
(3) ACCESS
TO
DOCUMENTS
BY
THE
SEC-
RETARY.—The Secretary shall have access for the pur-
pose of audit and examination to any books, docu-
ments, papers, and records that are pertinent to as-
sistance in connection with, and the requirements of,
this section.
(4) ACCESS TO DOCUMENTS BY THE COMPTROL-
LER GENERAL.—The Comptroller General of the Unit-
ed States, or any of the duly authorized representa-
tives of the Comptroller General, shall have access for
the purpose of audit and examination to any books,
documents, papers, and records that are pertinent to
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assistance in connection with, and the requirements
of, this section.
(h) EVALUATION AND REPORT.—
(1) CONSULTATION WITH PHA AND FAMILY REP-
RESENTATIVES.—In making assessments throughout
the demonstration, the Secretary shall consult with
representatives of public housing agencies and resi-
dents.
(2) REPORT TO CONGRESS.—Not later than 180
days after the end of the third year of the demonstra-
tion, the Secretary shall submit to the Congress a re-
port evaluating the programs carried out under the
demonstration. The report shall also include findings
and recommendations for any appropriate legislative
action.
(i) FUNDING FOR TECHNICAL ASSISTANCE AND EVAL-
UATION.—From amounts appropriated for assistance under
section 14 of the United States Housing Act of 1937 for
fiscal years 1996, 1997, and 1998, the Secretary may use
up to a total of $5,000,000—
(1) to provide, directly or by contract, training
and technical assistance—
(A) to public housing agencies that express
an interest to apply for training and technical
assistance pursuant to subsection (c)(4), to assist
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them in designing programs to be proposed for
the demonstration; and
(B) to up to 10 agencies selected to receive
training and technical assistance pursuant to
subsection (c)(4), to assist them in implementing
the approved program; and
(2) to conduct detailed evaluations of the activi-
ties of the public housing agencies under paragraph
(1)(B), directly or by contract.
SEC. 207. REPEAL OF PROVISIONS REGARDING INCOME DIS-
REGARDS.
(a) MAXIMUM ANNUAL LIMITATION
ON RENT IN-
CREASES RESULTING FROM EMPLOYMENT.—Section 957 of
the Cranston-Gonzalez National Affordable Housing Act is
hereby repealed, retroactive to November 28, 1990, and shall
be of no effect.
(b) ECONOMIC INDEPENDENCE.—Section 923 of the
Housing and Community Development Act of 1992 is here-
by repealed, retroactive to October 28, 1992, and shall be
of no effect.
SEC. 208. EXTENSION OF MULTIFAMILY HOUSING FINANCE
PROGRAMS.
(a) The first sentence of section 542(b)(5) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1707 note) is amended by striking ‘‘on not more than
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15,000 units over fiscal years 1993 and 1994’’ and inserting
‘‘on not more than 7,500 units during fiscal year 1996’’.
(b) The first sentence of section 542(c)(4) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1707 note) is amended by striking ‘‘on not to exceed 30,000
units over fiscal years 1993, 1994, and 1995’’ and inserting
‘‘on not more than 10,000 units during fiscal year 1996’’.
SEC. 
209. 
FORECLOSURE 
OF 
HUD-HELD 
MORTGAGES
THROUGH THIRD PARTIES.
During fiscal year 1996, the Secretary of Housing and
Urban Development may delegate to one or more entities
the authority to carry out some or all of the functions and
responsibilities of the Secretary in connection with the fore-
closure of mortgages held by the Secretary under the Na-
tional Housing Act.
SEC. 210. RESTRUCTURING OF THE HUD MULTIFAMILY
MORTGAGE 
PORTFOLIO 
THROUGH 
STATE
HOUSING FINANCE AGENCIES.
During fiscal year 1996, the Secretary of Housing and
Urban Development may sell or otherwise transfer multi-
family mortgages held by the Secretary under the National
Housing Act to a State housing finance agency in connec-
tion with a program authorized under section 542 (b) or
(c) of the Housing and Community Development Act of
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1992 without regard to the unit limitations in section
542(b)(5) or 542(c)(4) of such Act.
SEC. 211. TRANSFER OF SECTION 8 AUTHORITY.
(a) Section 8 of the United States Housing Act of 1937
is amended by adding the following new subsection at the
end:
‘‘(bb) TRANSFER OF BUDGET AUTHORITY.—If an as-
sistance contract under this section, other than a contract
for tenant-based assistance, is terminated or is not renewed,
or if the contract expires, the Secretary shall, in order to
provide continued assistance to eligible families, including
eligible families receiving the benefit of the project-based as-
sistance at the time of the termination, transfer any budget
authority remaining in the contract to another contract.
The transfer shall be under such terms as the Secretary may
prescribe.’’.
SEC. 
212. 
DOCUMENTATION 
OF 
MULTIFAMILY
REFINANCINGS.
Notwithstanding the 16th paragraph under the item
relating to ‘‘ADMINISTRATIVE PROVISIONS’’ in title II of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations
Act, 1995 (Public Law 103–327; 108 Stat. 2316), the
amendments to section 223(a)(7) of the National Housing
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Act made by the 15th paragraph of such Act shall be effec-
tive during fiscal year 1996 and thereafter.
SEC. 213. DEMONSTRATION AUTHORITY.
(a) On and after October 1, 1995, the Secretary of
Housing and Urban Development shall carry out a dem-
onstration program with respect to multifamily projects
whose mortgages are insured under the National Housing
Act and that are assisted under section 8 of the United
States Housing Act of 1937 and whose present section 8
rents are, in the aggregate, in excess of 110 percent of the
fair market rent of the locality in which the project is lo-
cated, including projects whose section 8 contracts expire
on or after October 1, 1996. These programs shall be de-
signed to test the feasibility and desirability of the goal of
ensuring, to the maximum extent practicable, that the debt
service and operating expenses, including adequate reserves,
attributable to such multifamily projects whose mortgages
are insured under the National Housing Act and that are
assisted under section 8 of the United States Housing Act
of 1937 and whose present section 8 contract rents are in
excess of the fair market rent of the locality in which the
project is located can be supported with and without mort-
gage insurance under the National Housing Act and with
and without above-market rents and utilizing project based
assistance or, with the consent of the property owner and
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the residents, tenant based assistance, while taking into ac-
count the need for assistance of low and very low income
families in such projects. In carrying out this demonstra-
tion, the Secretary may use arrangements with third par-
ties, under which the Secretary may provide for the as-
sumption by the third parties (by delegation, contract, or
otherwise) of some or all of the functions, obligations, and
benefits of the Secretary.
(1) GOALS.—The Secretary of Housing and
Urban Development shall carry out the demonstration
programs under this section in a manner that—
(A) will protect the financial interests of the
Federal Government;
(B) will result in significant discretionary
cost savings through debt restructuring and sub-
sidy reduction; and
(C) will, in the least costly fashion, address
the goals of—
(i) maintaining existing housing stock
in a decent, safe, and sanitary condition;
(ii) minimizing the involuntary dis-
placement of tenants;
(iii) restructuring the mortgages of
such projects in a manner that is consistent
with local housing market conditions;
100
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(iv) supporting fair housing strategies;
(v) minimizing any adverse income
tax impact on property owners; and
(vi) minimizing any adverse impact
on residential neighborhoods.
In determining the manner in which a mortgage is
to be restructured or the subsidy reduced, the Sec-
retary may balance competing goals relating to indi-
vidual projects in a manner that will further the pur-
poses of this section.
(2) DEMONSTRATION APPROACHES.—In carrying
out the demonstration programs, the Secretary may
use one or more of the following approaches:
(A) Joint venture arrangements with third
parties, under which the Secretary may provide
for the assumption by the third parties (by dele-
gation, contract, or otherwise) of some or all of
the functions, obligations, and benefits of the Sec-
retary.
(B) Subsidization of the debt service of the
project to a level that can be paid by an owner
receiving an unsubsidized market rent.
(C) Renewal of existing project-based assist-
ance contracts where the Secretary shall approve
proposed initial rent levels that do not exceed the
101
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greater of 120 percent of fair market rents or
comparable market rents for the relevant metro-
politan market area or at rent levels under a
budget-based approach.
(D) Nonrenewal of expiring existing project-
based assistance contracts and providing tenant-
based assistance to previously assisted house-
holds.
(b) For purposes of carrying out demonstration pro-
grams under subsection (a)—
(1) the Secretary may manage and dispose of
multifamily properties owned by the Secretary as of
October 1, 1995 and multifamily mortgages held by
the Secretary as of October 1, 1995 for properties as-
sisted under section 8 with rents above 110 percent of
fair market rents without regard to any other provi-
sion of law; and
(2) the Secretary may delegate to one or more
entities the authority to carry out some or all of the
functions and responsibilities of the Secretary in con-
nection with the foreclosure of mortgages held by the
Secretary under the National Housing Act.
(c) For purposes of carrying out demonstration pro-
grams under subsection (a), subject to such third party con-
sents (if any) as are necessary including but not limited
102
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to (i) consent by the Government National Mortgage Asso-
ciation where it owns a mortgage insured by the Secretary;
(ii) consent by an issuer under the mortgage-backed securi-
ties program of the Association, subject to the responsibil-
ities of the issuer to its security holders and the Association
under such program; and (iii) parties to any contractual
agreement which the Secretary proposes to modify or dis-
continue, the Secretary or one or more third parties des-
ignated by the Secretary may take the following actions:
(1) Notwithstanding any other provision of law,
the Secretary or third party may remove, relinquish,
extinguish, modify, or agree to the removal of any
mortgage, regulatory agreement, project-based assist-
ance contract, use agreement, or restriction that had
been imposed or required by the Secretary, including
restrictions on distributions of income which the Sec-
retary or third party determines would interfere with
the ability of the project to operate without above
market rents. The Secretary or third party may re-
quire an owner of a property assisted under the sec-
tion 8 new construction/substantial rehabilitation
program to apply any accumulated residual receipts
toward effecting the purposes of this section.
(2) Notwithstanding any other provision of law,
the Secretary of Housing and Urban Development
103
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may enter into contracts to purchase reinsurance, or
enter into participations or otherwise transfer eco-
nomic interest in contracts of insurance or in the pre-
miums paid, or due to be paid, on such insurance to
third parties, on such terms and conditions as the
Secretary may determine.
(3) The Secretary may offer project-based assist-
ance with rents at or below fair market rents for the
locality in which the project is located and may nego-
tiate such other terms as are acceptable to the Sec-
retary and the project owner.
(4) If, after reducing rents as provided in sub-
section (3) hereof, the project would be unable to pay
full operating costs (including normal operating ex-
penses, reasonable reserves, full debt service, and rea-
sonable allowances for vacancy losses and debt service
coverage/owner return), the Secretary may offer to
pay all or a portion of the project’s debt service, and
shall restrict the portion of debt service, if any, to be
paid by the project to the amount consistent with
payment of such full operating costs. The Secretary
may offer to make such payments monthly from the
appropriate Insurance Fund, for the full remaining
term of the insured mortgage.
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(5) Notwithstanding any other provision of law,
the Secretary may forgive and cancel any FHA-in-
sured mortgage debt that a demonstration program
property cannot carry at market rents while bearing
full operating costs.
(6) For demonstration program properties that
cannot carry full operating costs (excluding debt serv-
ice) at market rents, the Secretary shall approve
project-based rents sufficient to carry such full operat-
ing costs and shall offer to pay the full debt service
in the manner provided in paragraph (4).
(d) SELECTION.—The Secretary shall select multifam-
ily projects whose mortgages are insured that are from dif-
ferent geographic areas of the nation, from States and local-
ities of varying sizes, of different occupancy profiles by in-
come, race, and age, of different financial and physical con-
ditions, and other factors as determined by the Secretary.
(e) COMMUNITY AND TENANT INPUT.—In carrying out
this section, the Secretary shall develop procedures to obtain
appropriate and timely input from officials of the unit of
general local government affected, the community in which
the project is situated, and the tenant of the project.
(f) LIMITATION ON DEMONSTRATION AUTHORITY.—
The Secretary may carry out demonstration programs
under this section with respect to mortgages not to exceed
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30,000 units over fiscal years 1996 and 1997: Provided,
That not less than fifty percent of the units participating
in the demonstration shall be in projects that are assisted
under section 8 new construction/substantial rehabilitation
contracts which expire after September 30, 1997. The dem-
onstration authorized under this section shall not be ex-
panded until the reports required under subsection (g) are
submitted to the Congress.
(g) REPORT TO CONGRESS.—The Secretary shall sub-
mit to the Congress every three months after the date of
enactment of this Act a report describing and assessing the
programs carried out under the demonstrations. The Sec-
retary shall also submit a final report to the Congress not
later than six months after the end of the demonstrations.
The final report shall include findings and recommenda-
tions for any legislative action appropriate to establish a
permanent program based on the findings under the dem-
onstrations. The final report shall also include a description
of the status of each multifamily housing project selected
for the demonstrations under this section. The final report
shall include—
(1) the size of the projects;
(2) the geographic locations of the projects, by
State and region;
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(3) the physical and financial condition of the
projects;
(4) the occupancy profile of the projects, includ-
ing the income, family size, race, and ethnic origin
of current tenants, and the rents paid by such ten-
ants;
(5) a description of actions undertaken pursuant
to this section, including a description of the effective-
ness of such actions and any impediments to the
transfer or sale of multifamily housing projects;
(6) a description of the extent to which the dem-
onstrations under this section have displaced tenants
of multifamily housings projects;
(7) a description of any of the functions per-
formed in connection with this section that are trans-
ferred or contracted out to public or private entities
or to States;
(8) a description of the impact to which the dem-
onstrations under this section have affected the local-
ities and communities where the selected multifamily
housing projects are located; and
(9) a description of the extent to which the dem-
onstrations under this section have affected the owners
of multifamily housing projects.
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(g) EFFECTIVE DATE.—The provisions of this section
shall become effective on October 1, 1996.
SEC. 214. SECTION 8 CONTRACT RENEWAL.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary shall renew upon expiration each
contract for project-based assistance under section 8 of the
United States Housing Act of 1937 that expires during fis-
cal year 1996 in accordance with this subsection.
(b) CONTRACT TERM.—Each contract described in sub-
section (a) may be renewed for a term not to exceed 2 years.
‘‘(c) RENTS AND OTHER CONTRACT TERMS.—Except
as provided in subsections (d) and (e), the Secretary shall
offer to renew each contract described in subsection (a) (in-
cluding any contract relating to a multifamily project
whose mortgage is insured or assisted under the new con-
struction and substantial rehabilitation program under sec-
tion 8 of the United States Housing Act of 1937)—
(1) at a rent equal to the budget-based rent for
the project;
(2) at the current rent, where the current rent
does not exceed 120 percent of the fair market rent for
the jurisdiction in which the project is located; or
(3) at the current rent, pending the implementa-
tion of guidelines for budget-based rents.
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(d) LOAN MANAGEMENT SET-ASIDE CONTRACTS.—The
Secretary shall offer to renew each loan management set-
aside contract at a rent equal to the budget-based rent for
the unit, as determined by the Secretary, for a period not
to exceed 1 year.
(e) TENANT-BASED ASSISTANCE OPTION.—Notwith-
standing any other provision of law, the Secretary may,
with the consent of the owner of a project that is subject
to a contract described in subsection (a) and with notice
to and in consultation with the tenants, agree to provide
tenant-based rental assistance under section 8(b) or 8(o) in
lieu of renewing a contract to provide project-based rental
assistance under subsection (a). Subject to advance appro-
priations, the Secretary may offer an owner incentives to
convert to tenant-based rental assistance.
(f) DEMONSTRATION PROGRAM.—If a contract de-
scribed in subsection (a) is eligible for the demonstration
program under section 213, the Secretary may make the
contract subject to the requirements of section 213.
(g) DEFINITIONS.—
(1) BUDGET-BASED RENT.—For purposes of this
section, the term ‘‘budget-based rent’’, with respect to
a multifamily housing project, means the rent that is
established by the Secretary, based on the actual and
projected costs of operating the project, at a level that
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will provide income sufficient, with respect to the
project, to support—
(A) the debt service of the project;
(B) the operating expenses of the project, in-
cluding—
(i) contributions to actual reserves;
(ii) the costs of maintenance and nec-
essary rehabilitation, as determined by the
Secretary;
(iii) other costs permitted under sec-
tion 8 of the United States Housing Act of
1937, as determined by the Secretary;
(C) an adequate allowance for potential and
reasonable operating losses due to vacancies and
failure to collect rents, as determined by the Sec-
retary;
(D) an allowance for a rate of return on eq-
uity to the owner not to exceed 6 percent;
(E) other expenses, as determined to be nec-
essary by the Secretary.
(2) BASIC RENTAL CHARGE FOR SECTION 236.—
A basic rental charge determined or approved by the
Secretary for a project receiving interest reduction
payments under section 236 of the National Housing
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Act shall be deemed a budget-based rent within the
meaning of this section.
(3) SECRETARY.—The term ‘‘Secretary’’ refers to
the Secretary of Housing and Urban development.
PRESERVATION REFORM
SEC. 215. Subtitle B of the Low-Income Housing Pres-
ervation and Resident Homeownership Act of 1990, is
amended as follows:
(a) After section 201, insert the following new
section:
‘‘SEC. 202. APPLICABILITY.
‘‘This subtitle shall be applicable to all eligible low-
income housing which has not received funding for a plan
of action before October 1, 1995. Eligible projects which
have received funding before such effective date shall be gov-
erned by the Low Income Housing Preservation and Resi-
dent Homeownership Act of 1990 as was in effect before
such effective date.’’.
(b) Section 211 is amended to read as follows:
‘‘SEC. 211. PERMISSIBLE PREPAYMENT OR INCENTIVES NOT
TO PREPAY.
‘‘(a) PREPAYMENT AND TERMINATION.—An owner of
eligible low income housing may prepay, and a mortgagee
may accept prepayment, in accordance with the terms of
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the mortgage note, and regulations in effect when said note
was signed.
‘‘(b) PLAN OF ACTION.—An owner of eligible housing
who does not exercise the right to prepay the mortgage may
file a plan of action to receive incentives to extend low in-
come use pursuant to section 219(b) or incentives for trans-
fers to qualified purchasers pursuant to section 220.’’.
(c) Section 212(a) is amended by striking the
words ‘‘as in accordance with section 218’’.
(d) Striking out section 214.
(e) Section 215 is amended as follows:
(1) Subsection (a) is amended to read as
follows:
‘‘(a) DETERMINATION
OF RELATION
TO FEDERAL
COST
LIMITS.—For each eligible low-income housing
project appraised under section 213(a), the Secretary shall
make an initial determination as to whether the estimated
allowable equity loan pursuant to section 219(b)(8) or the
estimated allowable grant pursuant to section 220(d)(3)(A)
exceeds the amount equal to 60 times the most recently pub-
lished fair market rent for the area in which the project
is located and the appropriate unit size for all of the units
in the eligible housing. The initial determination shall be
used solely for the purpose of providing information to own-
ers pursuant to section 216. Actual incentives available to
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an owner (or a qualified purchaser) shall be determined
pursuant to an approved plan of action; provided however,
that the Secretary may not approve incentives in an
amount exceeding the federal cost limits as defined in this
section, unless the Secretary determines that preservation
for the eligible low income housing project is appropriate.’’.
(2) Subsection (b) is amended to read as
follows:
‘‘(b) HOUSING EXCEEDING FEDERAL COST LIMITS.—
If the estimated allowable equity loan or grant for an eligi-
ble low income housing project exceeds the federal cost limit,
the owner may:
‘‘(1) file a plan of action under section 217 to
receive incentives under section 219;
‘‘(2) file a second notice of intent under section
216(d) indicating an intention to transfer the housing
under section 220 and take actions pursuant to such
section;
‘‘(3) file a second notice under section 216(d) in-
dicating an intention to transfer the housing under
section 220 so long as a qualified purchaser provides
non-preservation resources sufficient to accommodate
the difference between the incentives approved under
the applicable plan of action and the actual purchase
price; or
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‘‘(4) file a second notice of intent under section
216(d) indicating an intention to prepay the mort-
gage or voluntarily terminate the insurance.’’.
(f) Section 216 is amended as follows:
(1) Strike subsection (a).
(2) Subsection (b)(2) is amended to read as
follows: ‘‘A statement of the required repairs and
initial reserve deposits required by the Secretary,
based on a capital needs assessment of the prop-
erty.’’.
(3) Subsection (b)(4) is amended by striking
the phrase, ‘‘aggregate preservation rents’’ and
inserting in lieu thereof, ‘‘estimated allowable eq-
uity loan or grant, as applicable.’’.
(4) Subsection (d)(1) is amended by delet-
ing the second and third sentences thereof.
(g) Section 217 is amended as follows:
(1) Subsection (a)(1) is amended by—
(A) striking out ‘‘terminate the low-in-
come affordability restrictions through pre-
payment of the mortgage or voluntary ter-
mination under section 218, or to’’;
(B) striking out ‘‘or 221’’; and
(C) striking the matter following ‘‘sec-
tion 220(b)’’.
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(2) Subsection (b) is amended by—
(A) striking out paragraph (1); and
(B) in paragraph (2) striking out ‘‘If
the plan of action proposes to extend the low
income affordability restrictions of the hous-
ing in accordance with section 219 or trans-
fer the housing to a qualified purchaser in
accordance with section 220, the plan’’ and
inserting in lieu thereof, ‘‘The plan of ac-
tion shall include—’’.
(f) Strike out section 218.
(g) Section 219 is amended as follows:
(1) Subsection (a) is amended by deleting
from ‘‘for each year’’ to the end of the subsection
and inserting in lieu thereof ‘‘the incentives pro-
vided in subsection (b) hereof.’’
(2) Subsection (b) is amended by—
(A) striking out subparagraphs 2 and
3, and renumbering the remaining sub-
sections;
(B) amending paragraph 3 by deleting
all that follows ‘‘improvements’’ and insert-
ing in lieu thereof, ‘‘as provided in para-
graph 8 hereof’’;
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(C) amending paragraph 5 to read as
follows: ‘‘Access by the owner to a portion
of preservation equity in the housing as
provided in paragraph (6) hereof.’’;
(D) by adding a new paragraph (8) as
follows:
‘‘(8) A non-interest-bearing direct loan by the
Secretary equal in amount to the cost of rehabilita-
tion approved in the plan of action plus 70 percent
of the preservation equity.
‘‘(i) Repayment of the loan provided under
this paragraph shall commence when the first
mortgage loan on the eligible low income housing
is paid in full. The Secretary shall require the
owner to make payments thereafter in an
amount not greater than the amount that the
owner had been paying on said first mortgage
taking into account any interest reduction pay-
ments made pursuant to section 236 of the Na-
tional Housing Act.
(ii) The Secretary shall permit an owner re-
turn equal to 8 percent of 30 percent of the pres-
ervation equity and shall permit the inclusion
thereof in the budget for the eligible housing in-
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stead of the return permitted on the original eq-
uity of the eligible housing.’’; and
(E) by adding a new subsection (b)(9)
as follows:
‘‘(9) retention of rental income in excess of the
basic rental charge in projects assisted under section
236 of the National Housing Act, to be used for the
purposes of preserving the low/moderate income char-
acter of the eligible low income housing.’’.
(3) In final unnumbered paragraph, strike
out the words ‘‘but the owner shall pay to the
Secretary all rental charges in excess of the basic
rental charges’’.
(h) Section 220 is amended as follows:
(1) Subsection (a) is amended by deleting
the final sentence thereof.
(2) Subsection (b)(1) is amended by deleting
the first sentence thereof and inserting in lieu
thereof the following:
‘‘(1) For the 6 month period beginning on the
date of receipt by the Secretary of a second notice of
intent under section 216(d) with respect to such hous-
ing, the owner may offer to sell and/or negotiate a
sale of the housing only with—
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‘‘(i) a resident council or mutual housing
association intending to purchase the project
under section 226, which has the support of ten-
ants representing at least 75 percent of the occu-
pied units in the project and at least 50 percent
of all of the units in the project.
‘‘(ii) a resident council intending to pur-
chase the project and retain it as rental housing,
which has the support of the majority of the ten-
ant households; or
‘‘(iii) a community based nonprofit housing
organization, which has the support of the ma-
jority of the tenant households.
‘‘(2) If no bona fide offer to purchase the project
is made and accepted during or at the end of the 6-
month period specified in subparagraph (b)(1) of this
section, the owner may offer to sell the project during
the succeeding 6 months to any priority purchaser.’’.
(2) Subsections (d)(2) and (d)(3) are
amended to read as follows:
‘‘(d)(2) AMOUNT.—Subject to the availability of
amounts approved in appropriations Acts, the Secretary
shall, for approvable plans of action, provide assistance suf-
ficient to enable qualified purchasers to—
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‘‘(A) acquire the eligible low-income housing
from the current owner for a purchase price not
greater than the preservation value of the housing.
Such purchase price does not include the residual re-
ceipts account which shall be released to the owner,
but shall include the replacement reserve account
which shall be transferred to the purchaser;
‘‘(B) rehabilitate the housing;
‘‘(C) meet project operating expenses and estab-
lish adequate reserves for the housing, and in the case
of a Priority Purchaser, meet project oversight costs;
‘‘(D) receive a distribution equal to 8 percent
annual return on any actual cash investment (from
sources other than assistance provided under this
title) made to acquire or rehabilitate the project;
‘‘(E) in the case of a priority purchaser, receive
a reimbursement of all reasonable transaction ex-
penses associated with the acquisition, loan closing,
and implementation of an approved plan of action;
and
‘‘(F) in the case of an approved resident home-
ownership program, cover the costs of training for the
resident council, homeownership counseling and
training, the fees for the nonprofit entity or public
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agency working with the resident council and costs re-
lated to relocation of tenants who elect to move.
‘‘(d)(3) INCENTIVES.—
‘‘(A) IN GENERAL.—For all qualified purchasers
of housing under this subjection, the Secretary may
provide assistance for an approved Plan of Action in
the form of 1 or more of the incentives authorized
under section 219(b), except in lieu of the incentives
under section 219(b)(7) and 219(b)(8), the Secretary
shall provide a grant equal in amount to 100 percent
of the transfer preservation equity determined for the
property plus the amount of rehabilitation costs re-
quired by the plan of action: Provided, That the grant
may include, if the qualified purchaser is a priority
purchaser, any expenses associated with the acquisi-
tion, loan closing and implementation of the plan of
action, subject to approval by the Secretary. Expenses
associated with implementation of the plan of action
may include capital reserves, operating reserves, and
escrows established to mitigate the burden of initial
rent increases on tenants. At the purchaser’s election,
the grant shall be provided in the form of a loan in
the same amount. If the purchaser makes such elec-
tion, the interest rate on the loan shall be no less than
the applicable Federal rate and repayment shall be
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deferred until sale of the housing or refinancing or re-
payment of the federally-assisted mortgage, whichever
is earlier, or such later date as may be required to
maintain low-income affordability restrictions for the
remaining useful life of the housing.’’.
(i) Strike out section 221.
(j) Section 222 is amended as follows:
(1) Strike out subsections (a)(2) (D), (E)
and (F) and renumbering the remaining sub-
paragraphs.
(2) Amend subsection (a)(2)(G) to read as
follows:
‘‘(G) future rent adjustments shall be gov-
erned by the provisions of the regulatory agree-
ment concerning rent adjustments now in effect
for the eligible low-income housing except that
priority purchasers shall receive project oversight
costs. The Secretary shall process requests for
rent adjustments during the pendency of the
processing under this title.’’.
(3) Subsection (d)(2)(A)(i) is amended to
read as follows:
‘‘(i) declining to authorize the release
of any escrowed loan proceeds and requiring
that such amounts be used for repairs.’’.
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(4) Subsection (d)(2)(C)(ii) is amended by
striking out ‘‘an equity take-out loan has been
made under section 241(f) of the National Hous-
ing Act’’ and inserting in lieu thereof, ‘‘a loan
has been insured under the National Housing
Act or made pursuant to section 219(b)(8) or
220(d)(3)’’.
(5) Strike out subsection (d)(2)(C)(iii).
(6) Insert a new subsection (e) as follows:
‘‘(e) MIXED INCOME COMMUNITIES.—To the extent
that federal assistance is provided for economic feasibility,
units available to new tenants will be available and afford-
able to the same proportions of very-low income families
or persons, low income families or persons, and moderate
income families or persons (including families or persons
whose incomes are 95 percent or more of area median in-
come) as of the date of approval of the plan of action.’’.
(k) Section 223 is amended as follows:
(1) Subsection (a) is amended by—
(A) striking out in the first sentence
‘‘low-income’’ and inserting in lieu thereof
‘‘very low-income’’; and
(B) striking out ‘‘eligible low income
housing’’ and inserting in lieu thereof
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‘‘housing financed under the programs set
forth in section 229(1)(A) of this Act’’.
(2) Strike out the last sentence of subsection
(b), and inserting in lieu thereof ‘‘The Secretary
shall pay the relocation expenses of each such
low-income family—
‘‘(i) that does not receive section 8 assist-
ance pursuant to subsection (a);
‘‘(ii) that is displaced within 180 days after
such prepayment; and
‘‘(iii) whose rent and utility cost imme-
diately prior to displacement exceeded 30 percent
of adjusted income. Provided, however, that such
relocation payment shall not exceed $1,500 per
family.’’.
(3) Strike out subsections (c), (d) and (e).
(l) Strike out section 224.
(m) Section 225(c) is amended by—
(1) striking out in the first sentence all that
follows ‘‘shall’’ and inserting in lieu thereof
‘‘provide the incentives, and, in addition, shall
pay the owner of the eligible housing a return
equal to 8 percent of the preservation equity
from the date that the Secretary should have
complied with such time limitation’’; and
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(2) striking out, in the last sentence thereof,
‘‘district’’.
(n) Section 226(b)(2) is amended by inserting
‘‘mutual housing association’’ between ‘‘limited equity
cooperative ownership)’’ and ‘‘and fee simple owner-
ship.’’
(o) Section 229 is amended as follows:
(1) Paragraph (1)(B) is amended to read as
follows:
‘‘(B) that, under regulation or contract in
effect before February 5, 1988, would have be-
come eligible for prepayment without prior ap-
proval of the Secretary:
‘‘(i) on or before December 31, 1996, and
the owner of such housing filed a notice of intent
on or before February 28, 1995 under title VI of
the Low Income Housing Preservation and Resi-
dent Homeownership Act of 1990 or under title
II of the Emergency Low Income Housing Pres-
ervation Act of 1987; or
‘‘(ii) after December 31, 1996, and the
owner of such housing files a notice of intent
under this title on or before March 1, 1996.’’.
(2) Paragraph (8) is amended—
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(A) by deleting in subparagraph (A)
the words ‘‘determining the authorized re-
turn under section 219(b)(6)(ii)’’
(B) by deleting in subparagraph (B)
‘‘and 221’’; and
(C) by deleting in subparagraph (B)
the words ‘‘acquisition loans under the pro-
visions of section 241(f)(3) of the National
Housing Act’’ and inserting in lieu thereof,
‘‘acquisition grant under the provisions of
section 220(d)(2)’’.
(3) Paragraph (11) is amended by inserting
after ‘‘association’’: ‘‘(including such an organi-
zation or its affiliate that is a general partner
in a limited partnership)’’.
(4) Insert a new definition (12) as follows:
‘‘(12) The term ‘Community Based Non-Profit
Organization’ is defined as set forth in 24 C.F.R.
248.101, except that a private nonprofit organization
shall be deemed to include an organization or its af-
filiate that is a general partner in a limited partner-
ship.’’.
(5) Insert a new definition (13) as follows:
‘‘(13) Mutual Housing Association. A private en-
tity organized under State law that has been deter-
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(1) IN GENERAL.—The Administrator of the En-
vironmental Protection Agency (referred to in this
subsection as the ‘‘Administrator’’) shall not require
adoption or implementation by a State of a test-only
or I/M240 enhanced vehicle inspection and mainte-
nance program as a means of compliance with section
182 of the Clean Air Act (42 U.S.C. 7511a), but the
Administrator may approve such a program if a
State chooses to adopt the program as a means of
compliance.
(2) REPEAL.—Paragraph (1) is repealed effective
as of the date that is 1 year after the date of enact-
ment of this Act.
(b) PLAN APPROVAL.—
(1) IN GENERAL.—The Administrator of the En-
vironmental Protection Agency (referred to in this
subsection as the ‘‘Administrator’’) shall not dis-
approve a State implementation plan revision under
section 182 of the Clean Air Act (42 U.S.C. 7511a)
on the basis of a regulation providing for a 50-per-
cent discount for alternative test-and-repair inspec-
tion and maintenance programs.
(2) CREDIT.—If a State provides data for a pro-
posed inspection and maintenance system for which
credits are appropriate under section 182 of the Clean