H. R. 3603—34
(1) AUTHORITY TO MAKE LOANS.—Section 515(b)(4) of the
Housing Act of 1949 (42 U.S.C. 1485(b)(4)) is amended by
striking ‘‘September 30, 1996’’ and inserting ‘‘September 30,
1997’’.
(2) SET-ASIDE FOR NONPROFIT ENTITIES.—The first sentence
of section 515(w)(1) of the Housing Act of 1949 (42 U.S.C.
1485(w)(1)) is amended by striking ‘‘fiscal year 1996’’ and insert-
ing ‘‘fiscal year 1997’’.
(b) EXTENSION
OF HOUSING
IN UNDERSERVED AREAS PRO-
GRAM.—The first sentence of section 509(f)(4)(A) of the Housing
Act of 1949 (42 U.S.C. 1479(f)(4)(A)) is amended by striking ‘‘fiscal
year 1996’’ and inserting ‘‘fiscal year 1997’’.
(c) REFORMS
FOR MULTIFAMILY RURAL HOUSING LOAN PRO-
GRAM.—
(1) LIMITATION
ON
PROJECT
TRANSFERS.—Section 515 of
the Housing Act of 1949 (42 U.S.C. 1485) is amended by insert-
ing after subsection (g) the following new subsection:
‘‘(h) PROJECT TRANSFERS.—After the date of the enactment
of the Act entitled ‘An Act making appropriations for Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies programs for the fiscal year ending September 30, 1997,
and for other purposes’, the ownership or control of a project for
which a loan is made or insured under this section may be trans-
ferred only if the Secretary determines that such transfer would
further the provision of housing and related facilities for low-income
families or persons and would be in the best interests of residents
and the Federal Government.’’.
(2) EQUITY LOANS.—Section 515(t) of the Housing Act of
1949 (42 U.S.C. 1485(t)) is amended—
(A) by striking paragraphs (4) and (5); and
(B) by redesignating paragraphs (6) through (8) as
paragraphs (4) through (6), respectively.
(3) EQUITY TAKEOUT LOANS TO EXTEND LOW-INCOME USE.—
(A) 
AUTHORITY
AND
LIMITATION.—Section
502(c)(4)(B)(iv) of the Housing Act of 1949 (42 U.S.C.
1472(c)(4)(B)(iv)) is amended by inserting before the period
at the end the following: ‘‘or under paragraphs (1) and
(2) of section 514(j), except that an equity loan referred
to in this clause may not be made available after the
date of the enactment of the Act entitled ‘An Act making
appropriations for Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies programs
for the fiscal year ending September 30, 1997, and for
other purposes’, unless the Secretary determines that the
other incentives available under this subparagraph are not
adequate to provide a fair return on the investment of
the borrower, to prevent prepayment of the loan insured
under section 514 or 515, or to prevent the displacement
of tenants of the housing for which the loan was made’’.
(B) APPROVAL OF ASSISTANCE.—Section 502(c)(4)(C) of
the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(C)) is
amended by striking ‘‘(C)’’ and all that follows through
‘‘provided—’’ and inserting the following:
‘‘(C) APPROVAL OF ASSISTANCE.—The Secretary may approve
assistance under subparagraph (B) for assisted housing only if
the restrictive period has expired for any loan for the housing
made or insured under section 514 or 515 pursuant to a contract
H. R. 3603—35
entered into after December 21, 1979, but before the date of the
enactment of the Department of Housing and Urban Development
Reform Act of 1989, and the Secretary determines that the combina-
tion of assistance provided—’’.
(C) TECHNICAL CORRECTION.—Section 515(c)(1) of the
Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is amended
by striking ‘‘December 21, 1979’’ and inserting ‘‘December
15, 1989’’.
(d) REFORM OF SECTION 515.—Section 515 of the Housing Act
of 1949 (42 U.S.C. 1485) is amended—
(1) by striking subsection (r) and inserting the following:
‘‘(r)(1) the Secretary—
‘‘(A) may require that the initial operating reserve under
this section may be in the form of an irrevocable letter of
credit; and
‘‘(B) except as provided in paragraph (2), may require not
more than a 3 percent contribution to equity, except that the
Secretary shall require a 5 percent contribution in the case
of a project that is allocated a low-income housing tax credit
pursuant to section 42 of the Internal Revenue Code of 1986.
‘‘(2) The Secretary may adjust the amount of equity contribution
to ensure that assistance provided is not more than is necessary
to provide affordable housing after taking account of assistance
from all Federal, State, and local sources.
‘‘(3) Not later than 60 days after the date of enactment of
the Act entitled ‘An Act making appropriations for Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies programs for the fiscal year ending September 30, 1997,
and for other purposes’, the Secretary shall issue regulations to
implement subsection (r)(2) in accordance with the negotiated rule-
making procedures set forth in subchapter III of chapter 5 of
title 5, United States Code: Provided, That if the negotiated rule-
making is not completed within the designated time, the Secretary
shall proceed to promulgate regulations under the rulemaking
authority contained in 5 U.S.C. 557.’’; and
(2) by striking subsection (z).
(e) EQUITY SKIMMING PENALTIES.—
(1) INSURANCE OF LOANS FOR THE PROVISION OF HOUSING
AND RELATED FACILITIES FOR DOMESTIC FARM LABOR.—Section
514 of the Housing Act of 1949 (42 U.S.C. 1484) is amended
by adding at the end the following new subsection:
‘‘(j) EQUITY SKIMMING PENALTY.—Whoever, as an owner, agent,
or manger, or who is otherwise in custody, control, or possession
of property that is security for a loan made or insured under
this section willfully uses, or authorizes the use, of any part of
the rents, assets, proceeds, income, or other funds derived from
such property, for any purpose other than to meet actual or nec-
essary expenses of the property, or for any other purpose not
authorized by this title or the regulations adopted pursuant to
this title, shall be fined not more than $250,000 or imprisoned
not more than 5 years, or both.’’.
(2) DIRECT AND INSURED LOANS TO PROVIDE HOUSING AND
RELATED FACILITIES FOR ELDERLY PERSONS AND FAMILIES IN
RURAL AREAS.—Section 515 of the Housing Act of 1949 (42
U.S.C. 1485), as amended by subsection (d)(2) of this section,
is amended by adding at the end the following new subsection:
H. R. 3603—36
‘‘(z) EQUITY SKIMMING PENALTY.—Whoever, as an owner, agent,
or manager, or who is otherwise in custody, control, or possession
of property that is security for a loan made or insured under
this section willfully uses, or authorizes the use, of any part of
the rents, assets, proceeds, income, or other fund derived from
such property, for any purpose other than to meet actual or nec-
essary expenses of the property, or for any other purpose not
authorized by this title or the regulations adopted pursuant to
this title, shall be fined not more than $250,000 or imprisoned
not more than 5 years, or both.’’.
(f) PRIORITIZATION OF ASSISTANCE.—Section 532 of the Housing
Act of 1949 (42 U.S.C. 1490l) is amended—
(1) in subsection (a), by striking ‘‘The Secretary’’ and insert-
ing ‘‘Except as otherwise provided in subsection (c), the Sec-
retary’’; and
(2) by adding at the end the following new subsection:
‘‘(c) PRIORITIZATION OF SECTION 515 HOUSING ASSISTANCE.—
‘‘(1) IN
GENERAL.—The Secretary shall make assistance
under section 515 available pursuant to an objective procedure
established by the Secretary, under which the Secretary shall
identify counties and communities having the greatest need
for such assistance and designate such counties and commu-
nities to receive such assistance.
‘‘(2) OBJECTIVE MEASURES.—The Secretary shall use the
following objective measures to determine the need for rental
housing assistance under paragraph (1):
‘‘(A) The incidence of poverty.
‘‘(B) The lack of affordable housing and the existence
of substandard housing.
‘‘(C) The lack of mortgage credit.
‘‘(D) The rural characteristics of the location.
‘‘(E) Other factors as determined by the Secretary,
demonstrating the need for affordable housing.
‘‘(3) INFORMATION.—In administering this subsection, the
Secretary shall use information from the most recent decennial
census of the United States, relevant comprehensive affordable
housing strategies under section 105 of the Cranston-Gonzalez
National Affordable Housing Act, and other reliable sources
obtained by the Secretary which demonstrate the need for
affordable housing in rural areas.
‘‘(4) DESIGNATION.—A designation under this subsection
shall not be effective for a period of more than 3 years, but
may be renewed by the Secretary in accordance with the proce-
dure set forth in this subsection. The Secretary shall take
such other reasonable actions as the Secretary considers to
be appropriate to notify the public of such designations.’’.
SEC. 735. DEPARTMENT OF AGRICULTURE VOLUNTARY SEPARA-
TION INCENTIVE PAYMENTS.—
(a) DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means the Department of Agriculture;
(2) the term ‘‘employee’’ means an employee (as defined
by section 2105 of title 5, United States Code) who is employed
by the agency (or an individual employed by a county committee
established under section 8(b)(5) of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590h(b)(5))), is serving under
an appointment without time limitation, and has been currently
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employed for a continuous period of at least 3 years, but does
not include—
(A) a reemployed annuitant under subchapter III of
chapter 83 or chapter 84 of title 5, United States Code,
or another retirement system for employees of the agency;
(B) an employee having a disability on the basis of
which such employee is or would be eligible for disability
retirement under the applicable retirement system referred
to in subparagraph (A);
(C) an employee who is in receipt of a specific notice
of involuntary separation for misconduct or unacceptable
performance;
(D) an employee who, upon completing an additional
period of service as referred to in section 3(b)(2)(B)(ii) of
the Federal Workforce Restructuring Act of 1994 (5 U.S.C.
5597 note), would qualify for a voluntary separation incen-
tive payment under section 3 of such Act;
(E) an employee who has previously received any vol-
untary separation incentive payment by the Federal
Government under this section or any other authority and
has not repaid such payment;
(F) an employee covered by statutory reemployment
rights who is on transfer to another organization; or
(G) any employee who, during the twenty-four month
period preceding the date of separation, has received a
recruitment or relocation bonus under section 5753 of title
5, United States Code, or who, within the twelve month
period preceding the date of separation, received a retention
allowance under section 5754 of title 5, United States Code.
(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The head of the agency, prior to obligating
any resources for voluntary separation incentive payments,
shall submit to the House and Senate Committees on Appro-
priations and the Committee on Governmental Affairs of the
Senate and the Committee on Government Reform and Over-
sight of the House of Representatives a strategic plan outlining
the intended use of such incentive payments and a proposed
organizational chart for the agency once such incentive pay-
ments have been completed.
(2) CONTENTS.—The agency’s plan shall include—
(A) the positions and functions to be reduced or elimi-
nated, identified by organizational unit, geographic loca-
tion, occupational category and grade level;
(B) the number and amounts of voluntary separation
incentive payments to be offered; and
(C) a description of how the agency will operate without
the eliminated positions and functions.
(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE
PAYMENTS.—
(1) IN GENERAL.—A voluntary separation incentive payment
under this section may be paid by an agency to any employee
only to the extent necessary to eliminate the positions and
functions identified by the strategic plan.
(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary
separation incentive payment—
(A) shall be paid in a lump sum after the employee’s
separation;