310
the Housing Opportunity and Responsibility Act of
1997.
‘‘(5) ADDITIONAL CRITERIA FOR FEDERALLY AS-
SISTED LOW-INCOME HOUSING.—In addition to the
selection criteria under paragraph (4), the Secretary
may establish other criteria for evaluating applica-
tions submitted by owners of federally assisted low-in-
come housing, except that such additional criteria
shall be designed only to reflect—
‘‘(A) relevant differences between the finan-
cial resources and other characteristics of public
housing agencies and owners of federally assisted
low-income housing; or
‘‘(B) relevant differences between the prob-
lem of crime in public housing administered by
such authorities and the problem of crime in fed-
erally assisted low-income housing.’’.
(d) DEFINITIONS.—Section 5126 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11905) is amended—
(1) by striking paragraphs (1) and (2);
(2) in paragraph (4)(A), by striking ‘‘section’’
before ‘‘221(d)(4)’’;
(3) by redesignating paragraphs (3) and (4) (as
so amended) as paragraphs (1) and (2), respectively;
and
311
(4) by adding at the end the following new para-
graph:
‘‘(3) PUBLIC HOUSING AGENCY.—The term ‘pub-
lic housing agency’ has the meaning given the term
in section 103 of the Housing Opportunity and Re-
sponsibility Act of 1997.’’.
(e) IMPLEMENTATION.—Section 5127 of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11906) is amended by striking
‘‘Cranston-Gonzalez National Affordable Housing Act’’ and
inserting ‘‘Housing Opportunity and Responsibility Act of
1997’’.
(f) REPORTS.—Section 5128 of the Anti-Drug Abuse
Act of 1988 (42 U.S.C. 11907) is amended—
(1) by striking ‘‘drug-related crime in’’ and in-
serting ‘‘crime in and around’’; and
(2) by striking ‘‘described in section 5125(a)’’
and inserting ‘‘for the grantee submitted under sub-
section (a) or (b) of section 5125, as applicable’’.
(g) FUNDING AND PROGRAM SUNSET.—Chapter 2 of
subtitle C of title V of the Anti-Drug Abuse Act of 1988
is amended by striking section 5130 (42 U.S.C. 11909) and
inserting the following new section:
‘‘SEC. 5130. FUNDING.
‘‘(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this chapter
312
$290,000,000 for each of fiscal years 1998, 1999, 2000,
2001, and 2002.
‘‘(b) ALLOCATION.—Of any amounts available, or that
the Secretary is authorized to use, to carry out this chapter
in any fiscal year—
‘‘(1) 85 percent shall be available only for assist-
ance pursuant to section 5125(a) to public housing
agencies that own or operate 250 or more public hous-
ing dwelling units;
‘‘(2) 10 percent shall be available only for assist-
ance pursuant to section 5125(b)(2) to public housing
agencies that own or operate fewer than 250 public
housing dwelling units; and
‘‘(3) 5 percent shall be available only for assist-
ance to federally assisted low-income housing pursu-
ant to section 5125(b)(3).
‘‘(c) RETENTION OF PROCEEDS OF ASSET FORFEIT-
URES BY INSPECTOR GENERAL.—Notwithstanding section
3302 of title 31, United States Code, or any other provision
of law affecting the crediting of collections, the proceeds of
forfeiture proceedings and funds transferred to the Office
of Inspector General of the Department of Housing and
Urban Development, as a participating agency, from the
Department of Justice Assets Forfeiture Fund or the De-
partment of the Treasury Forfeiture Fund, as an equitable
313
share from the forfeiture of property in investigations in
which the Office of Inspector General participates, shall be
deposited to the credit of the Office of Inspector General for
Operation Safe Home activities authorized under the In-
spector General Act of 1978, as amended, to remain avail-
able until expended.’’.
(h) CONFORMING AMENDMENTS.—The table of contents
in section 5001 of the Anti-Drug Abuse Act of 1988 (Public
Law 100–690; 102 Stat. 4295) is amended—
(1) by striking the item relating to the heading
for chapter 2 of subtitle C of title V and inserting the
following:
‘‘CHAPTER 2—COMMUNITY PARTNERSHIPS AGAINST CRIME’’;
(2) by striking the item relating to section 5122
and inserting the following new item:
‘‘Sec. 5122. Purposes.’’;
(3) by striking the item relating to section 5125
and inserting the following new item:
‘‘Sec. 5125. Grant procedures.’’;
and
(4) by striking the item relating to section 5130
and inserting the following new item:
‘‘Sec. 5130. Funding.’’.
(i) TREATMENT OF NOFA.—The cap limiting assist-
ance under the Notice of Funding Availability issued by
the Department of Housing and Urban Development in the
314
Federal Register of April 8, 1996, shall not apply to a pub-
lic housing agency within an area designated as a high in-
tensity drug trafficking area under section 1005(c) of the
Anti-Drug Abuse Act of 1988 (21 U.S.C. 1504(c)).
(j) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the date of
the enactment of this Act.
Subtitle C—Limitations Relating to
Occupancy in Federally Assisted
Housing
SEC. 641. SCREENING OF APPLICANTS.
(a) INELIGIBILITY
BECAUSE
OF
EVICTION.—Any
household or member of a household evicted from federally
assisted housing (as such term is defined in section 645)
shall not be eligible for federally assisted housing—
(1) in the case of eviction by reason of drug-re-
lated criminal activity, for a period of not less than
3 years that begins on the date of such eviction, unless
the evicted member of the household successfully com-
pletes a rehabilitation program; and
(2) in the case of an eviction for other serious
violations of the terms or conditions of the lease, for
a reasonable period of time, as determined by the
public housing agency or owner of the federally as-
sisted housing, as applicable.
315
The requirements of paragraphs (1) and (2) may be waived
if the circumstances leading to eviction no longer exist.
(b) INELIGIBILITY OF ILLEGAL DRUG USERS AND AL-
COHOL USERS.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law, a public housing agency or an
owner of federally assisted housing, or both, as deter-
mined by the Secretary, shall establish standards that
prohibit admission to the program or admission to
federally assisted housing for any household with a
member—
(A) who the public housing agency or owner
determines is engaging in the illegal use of a
controlled substance; or
(B) with respect to whom the public housing
agency or owner determines that it has reason-
able cause to believe that such household mem-
ber’s illegal use (or pattern of illegal use) of a
controlled substance, or abuse (or pattern of
abuse) of alcohol, would interfere with the health,
safety, or right to peaceful enjoyment of the
premises by other residents.
(2) CONSIDERATION
OF
REHABILITATION.—In
determining whether, pursuant to paragraph (1)(B),
to deny admission to the program or to federally as-
316
sisted housing to any household based on a pattern of
illegal use of a controlled substance or a pattern of
abuse of alcohol by a household member, a public
housing agency or an owner may consider whether
such household member—
(A) has successfully completed an accredited
drug or alcohol rehabilitation program (as ap-
plicable) and is no longer engaging in the illegal
use of a controlled substance or abuse of alcohol
(as applicable);
(B) has otherwise been rehabilitated success-
fully and is no longer engaging in the illegal use
of a controlled substance or abuse of alcohol (as
applicable); or
(C) is participating in an accredited drug
or alcohol rehabilitation program (as applicable)
and is no longer engaging in the illegal use of
a controlled substance or abuse of alcohol (as ap-
plicable).
(c) AUTHORITY TO DENY ADMISSION TO CRIMINAL
OFFENDERS.—Except as provided in subsections (a) and
(b) and in addition to any other authority to screen appli-
cants, in selecting among applicants for admission to the
program or to federally assisted housing, if the public hous-
ing agency or owner of such housing (as applicable) deter-
317
mines that an applicant or any member of the applicant’s
household is or was, during a reasonable time preceding the
date when the applicant household would otherwise be se-
lected for admission, engaged in any criminal activity (in-
cluding drug-related criminal activity), the public housing
agency or owner may—
(1) deny such applicant admission to the pro-
gram or to federally assisted housing;
(2) consider the applicant (for purposes of any
waiting list) as not having applied for the program
or such housing; and
(3) after the expiration of the reasonable period
beginning upon such activity, require the applicant,
as a condition of admission to the program or to fed-
erally assisted housing, to submit to the public hous-
ing agency or owner evidence sufficient (as the Sec-
retary shall by regulation provide) to ensure that the
individual or individuals in the applicant’s household
who engaged in criminal activity for which denial
was made under paragraph (1) have not engaged in
any criminal activity during such reasonable period.
(d) AUTHORITY TO REQUIRE ACCESS TO CRIMINAL
RECORDS.—A public housing agency and an owner of fed-
erally assisted housing may require, as a condition of pro-
viding admission to the program or admission to or occu-
318
pancy in federally assisted housing, that each adult member
of the household provide a signed, written authorization for
the public housing agency to obtain the records described
in section 644(a) regarding such member of the household
from the National Crime Information Center, police depart-
ments, other law enforcement agencies, and State registra-
tion agencies referred to in such section. In the case of an
owner of federally assisted housing that is not a public
housing agency, the owner shall request the public housing
agency having jurisdiction over the area within which the
housing is located to obtain the records pursuant to section
644.
(e) ADMISSION BASED ON DISABILITY.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law, for purposes of determining eligi-
bility for admission to federally assisted housing, a
person shall not be considered to have a disability or
a handicap solely because of the prior or current ille-
gal use of a controlled substance (as defined in section
102 of the Controlled Substances Act) or solely by rea-
son of the prior or current use of alcohol.
(2) CONTINUED
OCCUPANCY.—This subsection
may not be construed to prohibit the continued occu-
pancy of any person who is a resident in assisted
housing on the effective date of this Act.
319
SEC. 642. TERMINATION OF TENANCY AND ASSISTANCE FOR
ILLEGAL DRUG USERS AND ALCOHOL ABUS-
ERS.
Notwithstanding any other provision of law, a public
housing agency or an owner of federally assisted housing
(as applicable), shall establish standards or lease provisions
for continued assistance or occupancy in federally assisted
housing that allow the agency or owner (as applicable) to
terminate the tenancy or assistance for any household with
a member—
(1) who the public housing agency or owner de-
termines is engaging in the illegal use of a controlled
substance; or
(2) whose illegal use of a controlled substance, or
whose abuse of alcohol, is determined by the public
housing agency or owner to interfere with the health,
safety, or right to peaceful enjoyment of the premises
by other residents.
SEC. 643. LEASE REQUIREMENTS.
In addition to any other applicable lease requirements,
each lease for a dwelling unit in federally assisted housing
shall provide that—
(1) the owner may not terminate the tenancy ex-
cept for violation of the terms or conditions of the
lease, violation of applicable Federal, State, or local
law, or for other good cause; and
320
(2) grounds for termination of tenancy shall in-
clude any criminal or other activity, engaged in by
the tenant, any member of the tenant’s household, any
guest, or any other person under the control of the
household, that—
(A) threatens the health or safety of, or
right to peaceful enjoyment of the premises by,
other tenant or employees of the owner or other
manager of the housing;
(B) threatens the health or safety of, or
right to peaceful enjoyment of their premises by,
persons residing in the immediate vicinity of the
premises.
SEC. 644. AVAILABILITY OF CRIMINAL RECORDS FOR TEN-
ANT SCREENING AND EVICTION.
(a) IN GENERAL.—
(1) CRIMINAL CONVICTION INFORMATION.—Not-
withstanding any other provision of law other than
paragraphs (3) and (4), upon the request of a public
housing agency, the National Crime Information Cen-
ter, a police department, and any other law enforce-
ment agency shall provide to the public housing agen-
cy information regarding the criminal conviction
records of an adult applicant for, or tenants of, feder-
ally assisted housing for purposes of applicant screen-
321
ing, lease enforcement, and eviction, but only if the
public housing agency requests such information and
presents to such Center, department, or agency a
written authorization, signed by such applicant, for
the release of such information to the public housing
agency or other owner of the federally assisted hous-
ing.
(2) INFORMATION REGARDING CRIMES AGAINST
CHILDREN.—Notwithstanding any other provision of
law other than paragraphs (3) and (4), upon the re-
quest of a public housing agency, a State law enforce-
ment agency designated as a registration agency
under a State registration program under subtitle A
of title XVII of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 14071) and any
local law enforcement agency authorized by the State
agency shall provide to a public housing agency the
information collected under such State registration
program regarding an adult applicant for, or tenant
of, federally assisted housing for purposes of applicant
screening, lease enforcement, and eviction, but only if
the public housing agency requests such information
and presents to such State registration agency or
other local law enforcement agency a written author-
ization, signed by such applicant, for the release of
323
ative of the agency or owner and who has a job-related need
to have access to the information in connection with admis-
sion of applicants, eviction of tenants, or termination of
assistance. For judicial eviction proceedings, disclosures
may be made to the extent necessary. The Secretary shall,
by regulation, establish procedures necessary to ensure that
information provided under this section to a public housing
agency or owner is used, and confidentiality of such infor-
mation is maintained, as required under this section.
(c) OPPORTUNITY TO DISPUTE.—Before an adverse ac-
tion is taken with regard to assistance under for federally
assisted housing on the basis of a criminal record, the public
housing agency or owner shall provide the tenant or appli-
cant with a copy of the criminal record and an opportunity
to dispute the accuracy and relevance of that record.
(d) FEE.—A public housing agency may be charged
a reasonable fee for information provided under subsection
(a). A public housing agency may require an owner of feder-
ally assisted housing (that is not a public housing agency)
to pay such fee for any information that the agency acquires
for the owner pursuant to section 641(d) and subsection (a)
of this section.
(e) RECORDS MANAGEMENT.—Each public housing
agency and owner of federally assisted housing that receives
criminal record information pursuant to this section shall
324
establish and implement a system of records management
that ensures that any criminal record received by the agen-
cy or owner is—
(1) maintained confidentially;
(2) not misused or improperly disseminated; and
(3) destroyed in a timely fashion, once the pur-
pose for which the record was requested has been ac-
complished.
(f) PENALTY.—Any person who knowingly and will-
fully requests or obtains any information concerning an ap-
plicant for, or tenant of, federally assisted housing pursuant
to the authority under this section under false pretenses,
or any person who knowingly and willfully discloses any
such information in any manner to any individual not en-
titled under any law to receive it, shall be guilty of a mis-
demeanor and fined not more than $5,000. The term ‘‘per-
son’’ as used in this subsection shall include an officer, em-
ployee, or authorized representative of any public housing
agency or owner.
(g) CIVIL ACTION.—Any applicant for, or tenant of,
federally assisted housing affected by (1) a negligent or
knowing disclosure of information referred to in this section
about such person by an officer, employee, or authorized
representative of any public housing agency or owner of fed-
erally assisted housing, which disclosure is not authorized
325
by this section, or (2) any other negligent or knowing action
that is inconsistent with this section, may bring a civil ac-
tion for damages and such other relief as may be appro-
priate against any public housing agency or owner respon-
sible for such unauthorized action. The district court of the
United States in the district in which the affected applicant
or tenant resides, in which such unauthorized action oc-
curred, or in which the officer, employee, or representative
alleged to be responsible for any such unauthorized action
resides, shall have jurisdiction in such matters. Appropriate
relief that may be ordered by such district courts shall in-
clude reasonable attorney’s fees and other litigation costs.
(h) DEFINITION.—For purposes of this section, the
term ‘‘adult’’ means a person who is 18 years of age or
older, or who has been convicted of a crime as an adult
under any Federal, State, or tribal law.
SEC. 645. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) FEDERALLY ASSISTED HOUSING.—The term
‘‘federally assisted housing’’ means a dwelling unit—
(A) in public housing (as such term is de-
fined in section 102);
(B) assisted with choice-based housing as-
sistance under title III;
326
(C) in housing that is provided project-
based assistance under section 8 of the United
States Housing Act of 1937 (as in effect before
the effective date of the repeal under section
601(b) of this Act) or pursuant to section 601(f)
of this Act, including new construction and sub-
stantial rehabilitation projects;
(D) in housing that is assisted under sec-
tion 202 of the Housing Act of 1959 (as amended
by section 801 of the Cranston-Gonzalez National
Affordable Housing Act);
(E) in housing that is assisted under section
202 of the Housing Act of 1959, as such section
existed before the enactment of the Cranston-Gon-
zalez National Affordable Housing Act;
(F) in housing that is assisted under section
811 of the Cranston-Gonzalez National Afford-
able Housing Act;
(G) in housing financed by a loan or mort-
gage insured under section 221(d)(3) of the Na-
tional Housing Act that bears interest at a rate
determined 
under 
the 
proviso 
of 
section
221(d)(5) of such Act;
327
(H) in housing insured, assisted, or held by
the Secretary or a State or State agency under
section 236 of the National Housing Act;
(I) for purposes only of subsections 641(c),
641(d), 643, and 644, in housing assisted under
section 515 of the Housing Act of 1949.
(2) OWNER.—The term ‘‘owner’’ means, with re-
spect to federally assisted housing, the entity or pri-
vate person (including a cooperative or public hous-
ing agency) that has the legal right to lease or sub-
lease dwelling units in such housing.
TITLE VII—AFFORDABLE HOUS-
ING 
AND 
MISCELLANEOUS
PROVISIONS
SEC. 701. RURAL HOUSING ASSISTANCE.
The last sentence of section 520 of the Housing Act
of 1949 (42 U.S.C. 1490) is amended by inserting before
the period the following: ‘‘, and the city of Altus, Oklahoma,
shall be considered a rural area for purposes of this title
until the receipt of data from the decennial census in the
year 2000’’.
SEC. 702. TREATMENT OF OCCUPANCY STANDARDS.
The Secretary of Housing and Urban Development
shall not directly or indirectly establish a national occu-
pancy standard.
328
SEC. 703. IMPLEMENTATION OF PLAN.
(a) IMPLEMENTATION.—
(1) IN GENERAL.—Not later than 120 days after
the date of the enactment of this Act, the Secretary
shall implement the Ida Barbour Revitalization Plan
of the City of Portsmouth, Virginia, in a manner con-
sistent with existing limitations under law.
(2) WAIVERS.—In carrying out paragraph (1),
the Secretary shall consider and make any waivers to
existing regulations and other requirements consistent
with the plan described in paragraph (1) to enable
timely implementation of such plan, except that gen-
erally applicable regulations and other requirements
governing the award of funding under programs for
which assistance is applied for in connection with
such plan shall apply.
(b) REPORT.—
(1) IN GENERAL.—Not later than 1 year after
the date of the enactment of this Act and annually
thereafter through the year 2000, the city described in
subsection (a)(1) shall submit a report to the Sec-
retary on progress in implementing the plan de-
scribed in that subsection.
(2) CONTENTS.—Each report submitted under
this subsection shall include—
329
(A) quantifiable measures revealing the in-
crease in homeowners, employment, tax base,
voucher allocation, leverage ratio of funds, im-
pact on and compliance with the consolidated
plan of the city;
(B) identification of regulatory and statu-
tory obstacles that—
(i) have caused or are causing unneces-
sary delays in the successful implementa-
tion of the consolidated plan; or
(ii) are contributing to unnecessary
costs associated with the revitalization; and
(C) any other information that the Sec-
retary considers to be appropriate.
SEC. 704. INCOME ELIGIBILITY FOR HOME AND CDBG PRO-
GRAMS.
(a) HOME INVESTMENT PARTNERSHIPS.—The Cran-
ston-Gonzalez National Affordable Housing Act is amended
as follows:
(1) 
DEFINITIONS.—In 
section 
104(10) 
(42
U.S.C. 12704(10))—
(A) by striking ‘‘income ceilings higher or
lower’’ and inserting ‘‘an income ceiling higher’’;
(B) by striking ‘‘variations are’’ and insert-
ing ‘‘variation is’’; and
330
(C) by striking ‘‘high or’’.
(2) INCOME TARGETING.—In section 214(1)(A)
(42 U.S.C. 12744(1)(A))—
(A) by striking ‘‘income ceilings higher or
lower’’ and inserting ‘‘an income ceiling higher’’;
(B) by striking ‘‘variations are’’ and insert-
ing ‘‘variation is’’; and
(C) by striking ‘‘high or’’.
(3) RENT LIMITS.—In section 215(a)(1)(A) (42
U.S.C. 12745(a)(1)(A))—
(A) by striking ‘‘income ceilings higher or
lower’’ and inserting ‘‘an income ceiling higher’’;
(B) by striking ‘‘variations are’’ and insert-
ing ‘‘variation is’’; and
(C) by striking ‘‘high or’’.
(b) CDBG.—Section 102(a)(20) of the Housing and
Community Development Act of 1974 (42 U.S.C.
5302(a)(20)) is amended by striking subparagraph (B) and
inserting the following new subparagraph:
‘‘(B) The Secretary may—
‘‘(i) with respect to any reference in sub-
paragraph (A) to 50 percent of the median in-
come of the area involved, establish percentages
of median income for any area that are higher
or lower than 50 percent if the Secretary finds
331
such variations to be necessary because of unusu-
ally high or low family incomes in such area;
and
‘‘(ii) with respect to any reference in sub-
paragraph (A) to 80 percent of the median in-
come of the area involved, establish a percentage
of median income for any area that is higher
than 80 percent if the Secretary finds such vari-
ation to be necessary because of unusually low
family incomes in such area.’’.
SEC. 705. PROHIBITION OF USE OF CDBG GRANTS FOR EM-
PLOYMENT RELOCATION ACTIVITIES.
Section 105 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5305) is amended by adding
at the end the following new subsection:
‘‘(h) PROHIBITION OF USE OF ASSISTANCE FOR EM-
PLOYMENT
RELOCATION
ACTIVITIES.—Notwithstanding
any other provision of law, no amount from a grant under
section 106 made in fiscal year 1997 or any succeeding fis-
cal year may be used for any activity (including any infra-
structure improvement) that is intended, or is likely, to fa-
cilitate the relocation or expansion of any industrial or
commercial plant, facility, or operation, from one area to
another area, if the relocation or expansion will result in
332
a loss of employment in the area from which the relocation
or expansion occurs.’’.
SEC. 706. USE OF AMERICAN PRODUCTS.
(a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products pur-
chased with funds made available in this Act should be
American made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available in this Act, the head of each
Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made
in subsection (a) by the Congress.
SEC. 707. CONSULTATION WITH AFFECTED AREAS IN SET-
TLEMENT OF LITIGATION.
In negotiating any settlement of, or consent decree for,
any litigation regarding public housing or rental assistance
(under title III of this Act or the United States Housing
Act of 1937, as in effect before the effective date of the repeal
under section 601(b) of this Act) that involves the Secretary
and any public housing agency or any unit of general local
government, the Secretary shall consult with any units of
general local government and public housing agencies hav-
333
ing jurisdictions that are adjacent to the jurisdiction of the
public housing agency involved.
SEC. 708. USE OF ASSISTED HOUSING BY ALIENS.
Section 214 of the Housing and Community Develop-
ment Act of 1980 (42 U.S.C. 1436a) is amended—
(1) in subsection (b)(2), by striking ‘‘Secretary of
Housing and Urban Development’’ and inserting
‘‘applicable Secretary’’;
(2) in subsection (c)(1)(B), by moving clauses
(ii) and (iii) 2 ems to the left;
(3) in subsection (d)—
(A) in paragraph (1)(A)—
(i) by striking ‘‘Secretary of Housing
and Urban Development’’ and inserting
‘‘applicable Secretary’’; and
(ii) by striking ‘‘the Secretary’’ and
inserting ‘‘the applicable Secretary’’;
(B) in paragraph (2), in the matter follow-
ing subparagraph (B)—
(i) by inserting ‘‘applicable’’ before
‘‘Secretary’’; and
(ii) by moving such matter (as so
amended by clause (i)) 2 ems to the right;
(C) in paragraph (4)(B)(ii), by inserting
‘‘applicable’’ before ‘‘Secretary’’;
334
(D) in paragraph (5), by striking ‘‘the Sec-
retary’’ and inserting ‘‘the applicable Sec-
retary’’; and
(E) in paragraph (6), by inserting ‘‘appli-
cable’’ before ‘‘Secretary’’;
(4) in subsection (h) (as added by section 576 of
the Illegal Immigration Reform and Immigrant Re-
sponsibility Act of 1996 (division C of Public Law
104–208))—
(A) in paragraph (1)—
(i) by striking ‘‘Except in the case of
an election under paragraph (2)(A), no’’
and inserting ‘‘No’’;
(ii) by striking ‘‘this section’’ and in-
serting ‘‘subsection (d)’’; and
(iii) by inserting ‘‘applicable’’ before
‘‘Secretary’’; and
(B) in paragraph (2)—
(i) by striking subparagraph (A) and
inserting the following new subparagraph:
‘‘(A) may, notwithstanding paragraph (1)
of this subsection, elect not to affirmatively es-
tablish and verify eligibility before providing fi-
nancial assistance’’; and