H. R. 3666
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
Making appropriations for the Departments of Veterans Affairs and Housing and
Urban Development, and for sundry independent agencies, boards, commissions,
corporations, and offices for the fiscal year ending September 30, 1997, and
for other purposes.
Be it enacted by the Senate and House of Representatives 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 fiscal
year ending September 30, 1997, and for other purposes, namely:
TITLE I
DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFERS 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 burial benefits, emergency and other officers’
retirement pay, adjusted-service credits and certificates, payment
of premiums due on commercial life insurance policies guaranteed
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); $18,671,259,000, to remain avail-
able until expended: Provided, That not to exceed $26,417,000 of
the amount appropriated shall be reimbursed to ‘‘General operating
expenses’’ and ‘‘Medical care’’ for necessary expenses in implement-
ing those provisions authorized in the Omnibus Budget Reconcili-
ation Act of 1990, and in the Veterans’ Benefits Act of 1992 (38
U.S.C. chapters 51, 53, and 55), the funding source for which
is specifically provided as the ‘‘Compensation and pensions’’ appro-
priation: Provided further, That such sums as may be earned on
an actual qualifying patient basis, shall be reimbursed to ‘‘Medical
facilities revolving fund’’ to augment the funding of individual
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medical facilities for nursing home care provided to pensioners
as authorized by the Veterans’ Benefits Act of 1992 (38 U.S.C.
chapter 55).
READJUSTMENT BENEFITS
For the payment of readjustment and rehabilitation benefits
to or on behalf of veterans as authorized by 38 U.S.C. chapters
21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, $1,377,000,000,
to remain 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, as amended.
VETERANS INSURANCE AND INDEMNITIES
For military and naval insurance, national service life insur-
ance, servicemen’s indemnities, service-disabled veterans insurance,
and veterans mortgage life insurance as authorized by 38 U.S.C.
chapter 19; 70 Stat. 887; 72 Stat. 487, $38,970,000, to remain
available until expended.
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 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, $105,226,000, which may be trans-
ferred to and merged with the appropriation 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 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, $33,810,000, which may be trans-
ferred to and merged with the appropriation 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 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: Provided further,
H. R. 3666—3
That during 1997, within the resources available, not to exceed
$300,000 in gross obligations for direct loans are authorized for
specially adapted housing loans.
In addition, for administrative expenses to carry out the direct
loan program, $80,000, which may be transferred 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 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 principal amount of direct loans not to exceed $3,000.
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, $49,000, 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 principal amount of direct loans not to exceed $2,822,000.
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’’.
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For administrative expenses to carry out the direct loan pro-
gram authorized by 38 U.S.C. chapter 37, subchapter V, as
amended, $205,000, which may be transferred to and merged with
the appropriation for ‘‘General operating expenses’’.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
For necessary expenses for the maintenance and operation of
hospitals, nursing homes, and domiciliary facilities; for furnishing,
as authorized by law, inpatient and outpatient care and treatment
to beneficiaries of the Department of Veterans Affairs, including
care and treatment in facilities not under the jurisdiction of the
Department; and furnishing recreational facilities, supplies, and
equipment; funeral, burial, and other expenses incidental thereto
for beneficiaries receiving care in the Department; administrative
expenses in support of planning, design, project management, real
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property acquisition and disposition, construction and renovation
of any facility under the jurisdiction or for the use of the Depart-
ment; oversight, engineering and architectural activities not charged
to project cost; repairing, altering, improving or providing facilities
in the several hospitals and homes under the jurisdiction of the
Department, not otherwise provided for, either by contract or by
the hire of temporary employees and purchase of materials; uni-
forms or allowances therefor, as authorized by 5 U.S.C. 5901–
5902; aid to State homes as authorized by 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); $17,008,447,000, plus reimbursements:
Provided, That of the funds made available under this heading,
$700,000,000 is for the equipment and land and structures object
classifications only, which amount shall not become available for
obligation until August 1, 1997, and shall remain available until
September 30, 1998.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of medical
and prosthetic research and development as authorized by 38 U.S.C.
chapter 73, to remain available until September 30, 1998,
$262,000,000, plus reimbursements.
MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING
EXPENSES
For necessary expenses in the administration of medical, hos-
pital, nursing home, domiciliary, construction, supply, and research
activities, as authorized by law; administrative expenses in support
of planning, design, project management, architectural, engineering,
real property 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 acquisition; engineer-
ing and architectural activities not charged to project cost; and
research and development in building construction technology;
$61,207,000, plus reimbursements.
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 transferred from the ‘‘General
post fund’’: Provided, That such costs, including the cost of modify-
ing 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 gross obligations for the
principal amount of direct loans not to exceed $70,000.
In addition, 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.
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DEPARTMENTAL ADMINISTRATION
GENERAL OPERATING EXPENSES
For necessary operating expenses of the Department of Veter-
ans Affairs, not otherwise provided for, including uniforms or
allowances therefor; not to exceed $25,000 for official reception
and representation expenses; hire of passenger motor vehicles; and
reimbursement of the General Services Administration for security
guard services, and the Department of Defense for the cost of
overseas employee mail; $827,584,000: Provided, That during fiscal
year 1997, notwithstanding any other provision of law, the number
of individuals employed by the Department of Veterans Affairs
(1) in other than ‘‘career appointee’’ positions in the Senior Execu-
tive Service shall not exceed 6, and (2) in schedule C positions
shall not exceed 11: Provided further, That funds under this heading
shall be available to administer the Service Members Occupational
Conversion and Training Act.
NATIONAL CEMETERY SYSTEM
For necessary expenses for the maintenance and operation of
the National Cemetery System, not otherwise provided for,
including uniforms or allowances therefor; cemeterial expenses as
authorized by law; purchase of two passenger motor vehicles for
use in cemeterial operations; and hire of passenger motor vehicles,
$76,864,000.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector General in
carrying out the Inspector General Act of 1978, as amended,
$30,900,000.
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving any of the
facilities under the jurisdiction or for the use of the Department
of Veterans Affairs, or for any of the purposes set forth in sections
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122
of title 38, United States Code, including planning, architectural
and engineering services, maintenance or guarantee period services
costs associated with equipment guarantees provided under the
project, services of claims analysts, offsite utility and storm drainage
system construction costs, and site acquisition, where the estimated
cost of a project is $3,000,000 or more or where funds for a project
were made available in a previous major project appropriation,
$250,858,000, of which $32,100,000 shall be for the replacement
hospital at Travis Air Force Base, Fairfield, California, and shall
not be released for obligation prior to January 1, 1998, unless
action is taken by the Congress specifically making such funds
available, and all funds appropriated under the above heading
are to remain available until expended: Provided, That except for
advance planning of projects funded through the advance planning
fund and the design of projects funded through the design fund,
none of these funds shall be used for any project which has not
been considered and approved by the Congress in the budgetary
process: Provided further, That funds provided in this appropriation
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for fiscal year 1997, for each approved project shall be obligated
(1) by the awarding of a construction documents contract by Septem-
ber 30, 1997, and (2) by the awarding of a construction contract
by September 30, 1998: Provided further, That the Secretary shall
promptly report in writing to the Comptroller General and to the
Committees on Appropriations any approved major construction
project in which obligations are not incurred within the time limita-
tions established above; and the Comptroller General shall review
the report in accordance 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 improving a project which was
approved in the budget process and funded in this account until
one year after substantial completion and beneficial occupancy by
the Department of Veterans Affairs of the project or any part
thereof with respect to that part only.
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 planning, architectural and engineer-
ing services, maintenance or guarantee period services costs associ-
ated with equipment 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, United States Code, where the estimated
cost of a project is less than $3,000,000; $175,000,000, to remain
available until expended, along with unobligated balances of pre-
vious ‘‘Construction, minor projects’’ appropriations which are
hereby made available for any project where the estimated cost
is less than $3,000,000: Provided, That funds in this account shall
be available for (1) repairs to any of the nonmedical facilities
under the jurisdiction or for the use of the Department which
are necessary because of loss or damage caused by any natural
disaster or catastrophe, and (2) temporary measures necessary to
prevent or to minimize further loss by such causes.
PARKING REVOLVING FUND
For the parking revolving fund as authorized by 38 U.S.C.
8109, $12,300,000, together with income from fees collected, to
remain available until expended, which shall be available for all
authorized expenses except operations and maintenance costs,
which will be funded from ‘‘Medical care’’.
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES
For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter
existing hospital, nursing home and domiciliary facilities in State
homes, for furnishing care to veterans as authorized by 38 U.S.C.
8131–8137, $47,397,000, to remain available until expended.
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GRANTS FOR THE CONSTRUCTION OF STATE VETERANS CEMETERIES
For grants to aid States in establishing, expanding, or improv-
ing State veteran cemeteries as authorized by 38 U.S.C. 2408,
$1,000,000, to remain available until expended.
FRANCHISE FUND
(INCLUDING TRANSFER OF FUNDS)
There is hereby established in the Treasury a franchise fund
pilot, as authorized by section 403 of Public Law 103–356, to be
available as provided in such section for expenses and equipment
necessary for the maintenance and operation of such administrative
services as the Secretary determines may be performed more advan-
tageously as central services: Provided, That any inventories, equip-
ment and other assets pertaining to the services to be provided
by the franchise fund, either on hand or on order, less the related
liabilities or unpaid obligations, and any appropriations made here-
after for the purpose of providing capital, shall be used to capitalize
the franchise fund: Provided further, That the franchise fund may
be paid in advance from funds available to the Department and
other Federal agencies for which such centralized services are per-
formed, at rates which will return in full all expenses of operation,
including accrued leave, depreciation of fund plant and equipment,
amortization of automated data processing (ADP) software and
systems (either acquired or donated), and an amount necessary
to maintain a reasonable operating reserve, as determined by the
Secretary: Provided further, That the franchise fund shall provide
services on a competitive basis: Provided further, That an amount
not to exceed four percent of the total annual income to such
fund may be retained in the fund for fiscal year 1997 and each
fiscal year thereafter, to remain available until expended, to be
used for the acquisition of capital equipment and for the improve-
ment and implementation of Departmental financial management,
ADP, and other support systems: Provided further, That no later
than thirty days after the end of each fiscal year amounts in
excess of this reserve limitation shall be transferred to the Treasury:
Provided further, That such franchise fund pilot shall terminate
pursuant to section 403(f) of Public Law 103–356.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
SEC. 101. Any appropriation for 1997 for ‘‘Compensation and
pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insurance and
indemnities’’ may be transferred to any other of the mentioned
appropriations.
SEC. 102. Appropriations available to the Department of Veter-
ans Affairs for 1997 for salaries and expenses shall be available
for services authorized by 5 U.S.C. 3109.
SEC. 103. No appropriations in this Act for the Department
of Veterans Affairs (except the appropriations for ‘‘Construction,
major projects’’, ‘‘Construction, minor projects’’, and the ‘‘Parking
revolving fund’’) shall be available for the purchase of any site
for or toward the construction of any new hospital or home.
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SEC. 104. No appropriations in this Act for the Department
of Veterans Affairs shall be available for hospitalization or examina-
tion of any persons (except beneficiaries entitled under the laws
bestowing such benefits to veterans, and persons receiving such
treatment under 5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204),
unless reimbursement of cost is made to the ‘‘Medical care’’ account
at such rates as may be fixed by the Secretary of Veterans Affairs.
SEC. 105. Appropriations available to the Department of Veter-
ans Affairs for fiscal year 1997 for ‘‘Compensation and pensions’’,
‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’
shall be available for payment of prior year accrued obligations
required to be recorded by law against the corresponding prior
year accounts within the last quarter of fiscal year 1996.
SEC. 106. Appropriations accounts available to the Department
of Veterans Affairs for fiscal year 1997 shall be available to pay
prior year obligations of corresponding prior year appropriations
accounts resulting from title X of the Competitive Equality Banking
Act, Public Law 100–86, except that if such obligations are from
trust fund accounts they shall be payable from ‘‘Compensation
and pensions’’.
SEC. 107. Notwithstanding any other provision of law, during
fiscal year 1997, the Secretary of Veterans Affairs shall, from the
National Service Life Insurance Fund (38 U.S.C. 1920), the Veter-
ans’ Special Life Insurance Fund (38 U.S.C. 1923), and the United
States Government Life Insurance Fund (38 U.S.C. 1955), reimburse
the ‘‘General operating expenses’’ account for the cost of administra-
tion of the insurance programs financed through those accounts:
Provided, That reimbursement shall be made only from the surplus
earnings accumulated in an insurance program in fiscal year 1997,
that are available for dividends in that program after claims have
been paid and actuarially determined reserves have been set aside:
Provided further, That if the cost of administration of an insurance
program exceeds the amount of surplus earnings accumulated in
that program, reimbursement shall be made only to the extent
of such surplus earnings: Provided further, That the Secretary
shall determine the cost of administration for fiscal year 1997,
which is properly allocable to the provision of each insurance pro-
gram and to the provision of any total disability income insurance
included in such insurance program.
SEC. 108. (a) The Secretary of Veterans Affairs may convey,
without consideration, to the City of Tuscaloosa, Alabama (in this
section referred to as the ‘‘City’’), all right, title, and interest of
the United States in and to a parcel of real property, including
any improvements thereon, in the northwest quarter of section
28, 
township 
south, 
range 
west, 
of 
Tuscaloosa
County, Alabama, comprising a portion of the grounds of the Depart-
ment of Veterans Affairs medical center, Tuscaloosa, Alabama, and
consisting of approximately 9.42 acres, more or less.
(b) The conveyance under subsection (a) shall be subject to
the condition that the City use the real property conveyed under
that subsection in perpetuity solely for public park or recreational
purposes.
(c) The exact acreage and legal description of the real property
to be conveyed pursuant to this section shall be determined by
a survey satisfactory to the Secretary of Veterans Affairs. The
cost of such survey shall be borne by the City.
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(d) The Secretary of Veterans Affairs may require such addi-
tional terms and conditions in connection with the conveyance under
this section as the Secretary considers appropriate to protect the
interests of the United States.
TITLE II
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING PROGRAMS
DEVELOPMENT OF ADDITIONAL NEW SUBSIDIZED HOUSING
For assistance for the purchase, construction, acquisition, or
development of additional public and subsidized housing units for
low income families under the United States Housing Act of 1937,
as amended, (‘‘the Act’’ herein) (42 U.S.C. 1437), not otherwise
provided for, $1,039,000,000, to remain available until expended:
Provided, That of the total amount provided under this head,
$645,000,000 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 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 $194,000,000
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 assistance,
and amendments to contracts for project rental assistance, for
supportive housing for persons with disabilities as authorized by
section 811 of the Cranston-Gonzalez National Affordable Housing
Act: Provided further, That the Secretary may designate up to
25 percent of the amounts earmarked under this paragraph for
section 811 of the Cranston-Gonzalez National Affordable Housing
Act for tenant-based assistance, as authorized under that section,
including such authority as may be waived under the next proviso,
which assistance is five years in duration: Provided further, That
the Secretary may waive any provision of section 202 of the Housing
Act of 1959 and section 811 of the National Affordable Housing
Act (including the provisions governing the terms and conditions
of project rental assistance and tenant-based 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 appro-
priate: Provided further, That of the total amount provided under
this head $200,000,000, shall be for the development or acquisition
cost of public housing for Indian families, including amounts for
housing under the mutual help homeownership opportunity pro-
gram under section 202 of the Act (42 U.S.C. 1437bb).
PREVENTION OF RESIDENT DISPLACEMENT
For activities and assistance to prevent the involuntary
displacement of low-income families, the elderly and the disabled
because of the loss of affordable housing stock, expiration of subsidy
contracts (other than contracts for which amounts are provided
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under the head ‘‘Preserving Existing Housing Investment’’) or
expiration of use restrictions, or other changes in housing assistance
arrangements, and for other purposes, $4,640,000,000, to remain
available until expended: Provided, That of the total amount pro-
vided under this head, $3,600,000,000 shall be for assistance under
the United States Housing Act of 1937 (42 U.S.C. 1437) for use
in connection with expiring or terminating section 8 subsidy con-
tracts: Provided further, That the Secretary may determine not
to apply section 8(o)(6)(B) of the Act to housing vouchers during
fiscal year 1997: Provided further, That of the total amount provided
under this head, $850,000,000 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: Provided further,
That of the total amount provided under this head, $190,000,000
shall be for assistance under the United States Housing Act of
1937 (42 U.S.C. 1437) to relocate residents of properties (i) that
are owned by the Secretary and being disposed of; (ii) that are
discontinuing section 8 project-based assistance; or (iii) subject to
special workout assistance team intervention compliance actions;
for the conversion of section 23 projects to assistance under section
8; for funds to carry out the family unification program; and for
the relocation of witnesses in connection with efforts to combat
crime in public and assisted housing pursuant to a request from
a law enforcement or prosecution agency: Provided further, That
of the total amount made available under this head, $50,000,000
shall be made available to nonelderly disabled families affected
by the designation of a public housing development under section
7 of such Act or the establishment of preferences in accordance
with section 651 of the Housing and Community Development Act
of 1992 (42 U.S.C. 1361l).
PRESERVING EXISTING HOUSING INVESTMENT
For operating, maintaining, revitalizing, rehabilitating, preserv-
ing, and protecting existing housing developments for low-income
families, and the elderly, and the disabled, $5,750,000,000, to
remain available until expended: Provided, That of the total amount
made available under this head, $2,900,000,000 shall be available
for payments to public housing agencies and Indian housing authori-
ties 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): Provided further, That of the total
amount made available under this head, $2,500,000,000 shall be
available for modernization of existing public housing projects as
authorized under section 14 of the United States Housing Act
of 1937, as amended (42 U.S.C. 1437l), of which $10,000,000 shall
be for carrying out activities under section 6(j) of the United States
Housing Act of 1937 and technical assistance for the inspection
of public housing units, contract expertise, and training and tech-
nical assistance directly or indirectly, under grants, contracts, or
cooperative agreements, to assist in the oversight and management
of public and Indian housing (whether or not the housing is being
modernized with assistance under this proviso) or tenant-based
assistance, including, 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: Provided further, That of the total amount pro-
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vided under this head, $350,000,000 shall be available for use
in conjunction with properties that are eligible for assistance under
the Low-Income Housing Preservation and Resident Homeowner-
ship Act of 1990 (LIHPRHA) or the Emergency Low Income Housing
Preservation Act of 1987 (ELIHPA), of which $75,000,000 shall
be available for obligation until March 1, 1997 for projects (1)
that are subject to a repayment or settlement agreement that
was executed between the owner and the Secretary prior to Septem-
ber 1, 1995; (2) whose submissions were delayed as a result of
their location in areas that were designated as a Federal disaster
area in a Presidential Disaster Declaration; or (3) whose processing
was, in fact or in practical effect, suspended, deferred, or interrupted
for a period of twelve months or more because of differing
interpretations, by the Secretary and an owner or by the Secretary
and a State or local rent regulatory agency, concerning the timing
of filing eligibility or the effect of a presumptively applicable State
or local rent control law or regulation on the determination of
preservation value under section 213 of LIHPRHA, as amended,
if the owner of such project filed notice of intent to extend the
low-income affordability restrictions of the housing, or transfer to
a qualified purchaser who would extend such restrictions, on or
before November 1, 1993; and of which, up to $100,000,000 may
be used for rental assistance to prevent displacement of families
residing in projects whose owners prepay their mortgages; and
the balance of which shall be available from the effective date
of this Act for sales to preferred priority purchasers: Provided
further, That with the exception of projects described in clauses
(1), (2), or (3) of the preceding proviso, the Secretary shall, notwith-
standing any other provision of law, suspend further processing
of preservation applications which have not heretofore received
approval of a plan of action: Provided further, That $150,000,000
of amounts recaptured from interest reduction payment contracts
for section 236 projects whose owners prepay their mortgages during
fiscal year 1997 shall be rescinded: Provided further, That an owner
of eligible low-income housing may prepay the mortgage or request
voluntary termination of a mortgage insurance contract, so long
as said owner agrees not to raise rents for sixty days after such
prepayment: Provided further, That such developments have been
determined to have preservation equity at least equal to the lesser
of $5,000 per unit or $500,000 per project or the equivalent of
eight times the most recently published monthly fair market rent
for the area in which the project is located as the appropriate
unit size for all of the units in the eligible project: Provided further,
That the Secretary may modify the regulatory agreement to permit
owners and priority purchasers to retain rental income in excess
of the basic rental charge in projects assisted under section 236
of the National Housing Act, for the purpose of preserving the
low- and moderate-income character of the housing: Provided fur-
ther, That eligible low-income housing shall include properties meet-
ing the requirements of this paragraph with mortgages that are
held by a State agency as a result of a sale by the Secretary
without insurance, which immediately before the sale would have
been eligible low-income housing under LIHPRHA: Provided further,
That notwithstanding any other provision of law, subject to the
availability of appropriated funds, each low-income family, and
moderate-income family who is elderly or disabled or is residing
in a low-vacancy area, residing in the housing on the date of
H. R. 3666—12
prepayment or voluntary termination, and whose rent, as a result
of a rent increase occurring no later than one year after the date
of the prepayment, exceeds 30 percent of adjusted income, shall
be offered tenant-based assistance in accordance with section 8
or any successor program, under which the family shall pay no
less for rent than it paid on such date: Provided further, That
any family receiving tenant-based assistance under the preceding
proviso may elect (1) to remain in the unit of the housing and
if the rent exceeds the fair market rent or payment standard,
as applicable, the rent shall be deemed to be the applicable stand-
ard, so long as the administering public housing agency finds that
the rent is reasonable in comparison with rents charged for com-
parable unassisted housing units in the market or (2) to move
from the housing and the rent will be subject to the fair market
rent of the payment standard, as applicable, under existing program
rules and procedures: Provided further, That the tenant-based
assistance made available under the preceding two provisos are
in lieu of benefits provided in subsections 223(b), (c), and (d) of
the Low-Income Housing Preservation and Resident Homeowner-
ship Act of 1990: Provided further, That any sales shall be funded
using the capital grant available under section 220(d)(3)(A) of
LIHPRHA: Provided further, That any extensions shall be funded
using a non-interest-bearing capital (direct) loan by the Secretary
not in excess of the amount of the cost of rehabilitation approved
in the plan of action plus 65 percent of the property’s preservation
equity and under such other terms and conditions as the Secretary
may prescribe: Provided further, That any capital grant shall be
limited to seven times, and any capital loan limited to six times,
the annual fair market rent for the project, as determined
using the fair market rent for fiscal year 1997 for the area in
which the project is located, using the appropriate apartment sizes
and mix in the eligible project, except where, upon the request
of a priority purchaser, the Secretary determines that a greater
amount is necessary and appropriate to preserve low-income hous-
ing: Provided further, That section 241(f) of the National Housing
Act is repealed and insurance under such section shall not be
offered as an incentive under LIHPRHA and ELIHPA: Provided
further, That up to $10,000,000 of the amount of $350,000,000
made available by a preceding proviso in this paragraph may be
used at the discretion of the Secretary to reimburse owners of
eligible properties for which plans of action were submitted prior
to the effective date of this Act, but were not executed for lack
of available funds, with such reimbursement available only for
documented costs directly applicable to the preparation of the plan
of action as determined by the Secretary, and shall be made avail-
able on terms and conditions to be established by the Secretary:
Provided further, That, notwithstanding any other provision of law,
a priority purchaser may utilize assistance under the HOME Invest-
ment Partnerships Act or the Low Income Housing Tax Credit:
Provided further, That projects with approved plans of action which
exceed the limitations on eligibility for funding imposed by this
Act may submit revised plans of action which conform to these
limitations by March 1, 1997, and retain the priority for funding
otherwise applicable from the original date of approval of their
plan of action, subject to securing any additional necessary funding
commitments by August 1, 1997.
H. R. 3666—13
REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING
For grants to public housing agencies for assisting in 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, replace-
ment housing which will avoid or lessen concentrations of very
low-income families, and tenant-based assistance in accordance with
section 8 of the United States Housing Act of 1937; and for providing
replacement housing and assisting tenants to be displaced by the
demolition, $550,000,000, to remain available until expended, of
which the Secretary may use up to $2,500,000 for technical assist-
ance, to be provided directly or indirectly by grants, contracts
or cooperative agreements, including training and cost of necessary
travel for participants in such training, by or to officials and
employees of the Department and of public housing agencies and
to residents: Provided, That no funds appropriated in this title
shall be used for any purpose that is not provided for herein,
in the Housing Act of 1937, in the Appropriations Acts for Veterans
Affairs, Housing and Urban Development, and Independent Agen-
cies, for the fiscal years 1993, 1994, and 1995, and the Omnibus
Consolidated Rescissions and Appropriations Act of 1996: Provided
further, That none of such funds shall be used directly or indirectly
by granting competitive advantage in awards to settle litigation
or pay judgments, unless expressly permitted herein: Provided
further, That, notwithstanding any other provision of law, the funds
made available to the Housing Authority of New Orleans under
HOPE VI for purposes of Desire Homes, shall not be obligated
or expended for on-site construction until an independent third
party has determined whether the site is appropriate.
DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING
(INCLUDING TRANSFER OF FUNDS)
For grants to public and Indian housing agencies for use in
eliminating crime in public housing projects authorized by 42 U.S.C.
11901–11908, for grants for federally assisted low-income housing
authorized by 42 U.S.C. 11909, and for drug information clearing-
house services authorized by 42 U.S.C. 11921–11925, $290,000,000,
to remain available until expended, $10,000,000 of which shall
be for grants, technical assistance, contracts and other assistance
training, program assessment, and execution for or on behalf of
public housing agencies and resident organizations (including the
cost of necessary travel for participants in such training), $5,000,000
of which shall be used in connection with efforts to combat violent
crime in public and assisted housing under the Operation Safe
Home Program administered by the Inspector General of the
Department of Housing and Urban Development, and $5,000,000
of which shall be provided to the Office of Inspector General for
Operation Safe Home: Provided, 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: Provided further, That
notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 1988
(42 U.S.C. 11909(c)), the Secretary may determine not to use any
such funds to provide public housing youth sports grants.
H. R. 3666—14
INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT
For the cost of guaranteed loans, as authorized by section
184 of the Housing and Community Development Act of 1992 (106
Stat. 3739), $3,000,000: Provided, That such costs, including the
costs of modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974, as amended: Provided
further, That these funds are available to subsidize total loan prin-
cipal, any part of which is to be guaranteed, not to exceed
$36,900,000.
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANTS FUND
(INCLUDING TRANSFER OF FUNDS)
For grants to States and units of general local government
and for related expenses, not otherwise provided for, to carry out
a community development grants program as authorized by title
I of the Housing and Community Development Act of 1974, as
amended (the ‘‘Act’’ herein) (42 U.S.C. 5301), $4,600,000,000, to
remain available until September 30, 1999, of which $67,000,000
shall be for grants to Indian tribes notwithstanding section 106(a)(1)
of the Act: Provided, That $2,100,000 shall be available as a grant
to the Housing Assistance Council, $1,500,000 shall be available
as a grant to the National American Indian Housing Council, and
$49,000,000 shall be available for grants pursuant to section 107
of such Act, including up to $14,000,000 for the development and
operation of a management information system: Provided further,
That not to exceed 20 percent of any grant made with funds
appropriated herein (other than a grant made available under the
preceding proviso to the Housing Assistance Council or the National
American Indian Housing Council, or a grant using funds under
section 107(b)(3) of the Housing and Community Development Act
of 1974, as amended) shall be expended for ‘‘Planning and Manage-
ment Development’’ and ‘‘Administration’’ as defined in regulations
promulgated by the Department: Provided further, That for fiscal
year 1997 and thereafter, section 105(a)(25) of such Act, shall
continue to be effective and the termination and conforming provi-
sions of section 907(b)(2) of the Cranston-Gonzalez National Afford-
able Housing Act shall not be effective: Provided further, That
section 916(f) of the Cranston-Gonzalez National Affordable Housing
Act is repealed.
Of the amount provided under this heading, the Secretary
of Housing and Urban Development may use up to $60,000,000
for grants to public housing agencies (including Indian housing
authorities), nonprofit corporations, and other appropriate entities
for a supportive services program to assist residents of public and
assisted housing, 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 to become self-suffi-
cient: Provided, That the program shall provide supportive services,
principally for the benefit of public housing residents, to the elderly
and the disabled, and to families with children where the head
of household would benefit from the receipt of supportive services
and is working, seeking work, or is preparing for work by participat-
ing in job training or educational programs: Provided further, That
H. R. 3666—68
(1) Section 2721 of such Act (as added by section 102
of the Health Insurance Portability and Accountability Act of
1996) is amended—
(A) in subsection (a), by striking ‘‘subparts 1 and 2’’
and inserting ‘‘subparts 1 and 3’’, and
(B) in subsections (b) through (d), by striking ‘‘subparts
1 and 2’’ each place it appears and inserting ‘‘subparts
1 through 3’’.
(2) Section 2723(c) of such Act (as added by section 102
of the Health Insurance Portability and Accountability Act of
1996) is amended by inserting ‘‘(other than section 2704)’’ after
‘‘part’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to group health plans for plan years begin-
ning on or after January 1, 1998.
SEC. 605. AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT
RELATING TO THE INDIVIDUAL MARKET.—(a) IN GENERAL.—Part B
of title XXVII of the Public Health Service Act (as added by section
111 of the Health Insurance Portability and Accountability Act
of 1996) is amended—
(1) by inserting after the part heading the following:
‘‘Subpart 1—Portability, Access, and Renewability Requirements’’;
(2) by redesignating sections 2745, 2746, and 2747 as sec-
tions 2761, 2762, and 2763, respectively;
(3) by inserting before section 2761 (as so redesignated)
the following:
‘‘Subpart 3—General Provisions’’; and
(4) by inserting after section 2744 the following:
‘‘Subpart 3—Other Requirements
‘‘SEC. 2751. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND
NEWBORNS.
‘‘(a) IN GENERAL.—The provisions of section 2704 (other than
subsections (d) and (f)) shall apply to health insurance coverage
offered by a health insurance issuer in the individual market in
the same manner as it applies to health insurance coverage offered
by a health insurance issuer in connection with a group health
plan in the small or large group market.
‘‘(b) NOTICE REQUIREMENT.—A health insurance issuer under
this part shall comply with the notice requirement under section
711(d) of the Employee Retirement Income Security Act of 1974
with respect to the requirements referred to in subsection (a) as
if such section applied to such issuer and such issuer were a
group health plan.
‘‘(c) 
PREEMPTION; 
EXCEPTION
FOR
HEALTH
INSURANCE
COVERAGE IN CERTAIN STATES.—
‘‘(1) IN GENERAL.—The requirements of this section shall
not apply with respect to health insurance coverage if there
is a State law (as defined in section 2723(d)(1)) for a State
that regulates such coverage that is described in any of the
following subparagraphs: