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real property acquisition, site improvement, conversion,
demolition), and other expenses (including financing costs
and relocation expenses of any displaced persons, families,
businesses, or organizations). Housing funded under this
section shall meet the requirements of this subtitle.
‘‘(b) REQUIREMENTS.—Notes or other obligations
guaranteed under this section shall be in such form and
denominations, have such maturities, and be subject to
such conditions as may be prescribed by the Secretary.
The Secretary may not deny a guarantee under this sec-
tion on the basis of the proposed repayment period for
the note or other obligation, unless the period is more than
20 years or the Secretary determines that the period oth-
erwise causes the guarantee to constitute an unacceptable
financial risk.
‘‘(c) LIMITATIONS ON TOTAL NOTES AND OBLIGA-
TIONS.—No guarantee or commitment to guarantee shall
be made with respect to any note or other obligation if
the total outstanding notes or obligations guaranteed
under this section on behalf of a participating jurisdiction
(excluding any amount defeased under a contract entered
into under subsection (e)(1)) would thereby exceed an
amount equal to 5 times the amount of the participating
jurisdiction’s latest allocation under section 217.
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‘‘(d) USE OF PROGRAM FUNDS.—Notwithstanding
any other provision of this subtitle, funds allocated to the
participating jurisdiction under this subtitle (including
program income derived therefrom) are authorized for use
by the participating jurisdiction or by the Secretary, in
the payment of principal and interest due on the notes
or other obligations guaranteed pursuant to this section
and the payment of such servicing, underwriting, or other
issuance or collection charges as may be specified by the
Secretary.
‘‘(e) SECURITY REQUIREMENTS.—To assure the full
repayment of notes or other obligations guaranteed here-
under, as well as the issuance or collection charges speci-
fied by the Secretary under subsection (d), and as a prior
condition for receiving such guarantees, the Secretary
shall require the participating jurisdiction (and its des-
ignated public agency issuer, if any) to—
‘‘(1) enter into a contract, in a form acceptable
to the Secretary, for repayment of such notes or
other obligations and the other specified charges;
‘‘(2) pledge as security for such repayment any
allocation for which the participating jurisdiction
may become eligible under this subtitle; and
‘‘(3) furnish, at the discretion of the Secretary,
such other security as may be deemed appropriate
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by the Secretary in making such guarantees, which
may include increments in local tax receipts gen-
erated by the housing assisted under this section or
disposition proceeds from the sale of land or hous-
ing.
‘‘(f) REPAYMENT AUTHORITY.—The Secretary is au-
thorized, notwithstanding any other provision of this sub-
title or any other Federal, State or local law, to apply allo-
cations pledged pursuant to subsection (e) to any repay-
ments due the United States as a result of such guaran-
tees.
‘‘(g) GUARANTEES.—The full faith and credit of the
United States is pledged to the payment of all guarantees
made under this section. Any such guarantee made by the
Secretary shall be conclusive evidence of the eligibility of
the notes or other obligations for such guarantee with re-
spect to principal and interest, and the validity of any such
guarantee so made shall be incontestable in the hands of
a holder of the guaranteed obligations.
‘‘(h) TAXABLE OBLIGATIONS.—Obligations guaran-
teed under this section shall be subject to Federal taxation
as provided in subsection (i).
‘‘(i) TAX STATUS.—With respect to any obligation
guaranteed pursuant to this section, the interest paid on
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such obligation shall be included in gross income for the
purpose of the Internal Revenue Code of 1986.
‘‘(j) MONITORING.—The Secretary shall monitor the
use of guarantees under this section by eligible participat-
ing jurisdictions. If the Secretary finds that 50 percent
of the aggregate guarantee authority for any fiscal year
has been committed, the Secretary may impose limitations
on the amount of guarantees any one participating juris-
diction may receive that year.
‘‘(k) GUARANTEE OF TRUST CERTIFICATES.—
‘‘(1) The Secretary is authorized, upon such
terms and conditions as the Secretary deems appro-
priate, to guarantee the timely payment of the prin-
cipal of and interest on such trust certificates or
other obligations as shall—
‘‘(A) be offered by the Secretary or by any
other offeror approved for purposes of this sub-
section by the Secretary; and
‘‘(B) be based on and backed by a trust or
pool composed of notes or other obligations
guaranteed or eligible for guarantee by the Sec-
retary under this section.
‘‘(2) To the same extent as provided in sub-
section (g), the full faith and credit of the United
States is pledged to the payment of all amounts
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which may be required to be paid under any guaran-
tee by the Secretary under this subsection.
‘‘(3) In the event the Secretary pays a claim
under a guarantee issued under this section, the
Secretary shall be subrogated fully to the rights sat-
isfied by such payment.
‘‘(4) No State or local law, and no Federal law,
shall preclude or limit the exercise by the Secretary
of—
‘‘(A) the power to contract with respect to
public offerings and other sales of notes, trust
certificates, and other obligations guaranteed
under this section, upon such terms and condi-
tions as the Secretary deems appropriate;
‘‘(B) the right to enforce, by any means
deemed appropriate by the Secretary, any such
contract; and
‘‘(C) the Secretary’s ownership rights, as
applicable, in notes, certificates or other obliga-
tions guaranteed under this section, or con-
stituting the trust or pool against which trust
certificates or other obligations guaranteed
under this section are offered.
‘‘(l) AGGREGATE LIMITATION.—The total amount of
outstanding obligations guaranteed on a cumulative basis
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by the Secretary pursuant to subsection (a) shall not at
any time exceed $2,000,000,000.’’.
SEC. 36. HOUSING EDUCATION, ORGANIZATIONAL, AND
OTHER SUPPORT.
(a) IN GENERAL.—Section 233(a) of such Act is
amended by striking ‘‘The’’ and inserting ‘‘Of the amount
available for each fiscal year under section 217(a)(2)(A),
the’’.
(b) ELIGIBLE ACTIVITIES.—Section 233(b) of such
Act is amended by adding at the end the following new
paragraphs:
‘‘(8) HOUSING
PROJECT
COSTS.—Assistance
under this section may be used for housing project
costs, in conjunction with other capacity building ac-
tivities under this section.
‘‘(9) CAPACITY
OF
NONPROFITS.—Assistance
under this section may be used for building the ca-
pacity of new and existing nonprofit organizations.
‘‘(10) ASSISTANCE TO NONPROFIT ORGANIZA-
TIONS.—Assistance under this section may be used
for funding operating and project expenses of new
and existing nonprofit organizations engaged in sta-
bilizing and revitalizing low-income neighborhoods or
areas in accordance with the jurisdiction’s consoli-
dated plan.
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‘‘(11) OTHER.—Such other activities that the
Secretary determines further the purposes of the
subtitle.’’.
SEC. 37. PRIORITIES FOR CAPACITY DEVELOPMENT.
Section 242 of such Act is amended—
(1) by striking ‘‘To carry out section 241, the
Secretary’’ and inserting ‘‘(a) IN GENERAL.—To
carry out section 241, of the amount available for
each fiscal year under section 217(a)(2)(A), the Sec-
retary’’;
(2) in subsection (a), as redesignated—
(A) by striking ‘‘and’’ at the end of para-
graph (5);
(B) by striking the period at the end of
paragraph (6) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(7) improve the ability of States and units of
general local government, Community Housing De-
velopment Organizations, and other nonprofit orga-
nizations, and for-profit developers of low-income
housing to carry out the provisions of this title and
other laws applicable to investments under this
title.’’; and
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(3) by adding at the end of subsection (a), as
designated by paragraph (1), the following new sub-
section:
‘‘(b) SUSTAINABLE COMMUNITY DEVELOPMENT.—
Funds may also be provided for urban design and develop-
ment and implementation of comprehensive plans that
focus on local and metropolitan strategies which create
sustainable community development at the neighborhood,
city, and metropolitan level.’’.
SEC. 38. CONDITIONS OF CONTRACTS.
Section 243(a) of such Act is amended—
(1) in paragraph (4), by striking ‘‘or’’ after the
semicolon;
(2) in paragraph (5), by striking the period and
inserting ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) a public or private college or university.’’.
SEC. 39. OTHER ASSISTANCE.
Section 244 of such Act is amended—
(1) by amending the title to read as follows:
‘‘SEC. 244. OTHER ASSISTANCE.’’;
(2) in the first sentence, by striking ‘‘The’’ and
inserting ‘‘(a) RESEARCH
IN HOUSING AFFORD-
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ABILITY.—Of the amount available for each fiscal
year under section 217(a)(2)(A), the’’; and
(3) by inserting after subsection (a), as des-
ignated by paragraph (2), the following new sub-
sections:
‘‘(b) PERFORMANCE DATA.—Of the amount available
for each fiscal year under section 217(a)(2)(B), the Sec-
retary is authorized to establish a national database on
local needs and program performance, to provide jurisdic-
tions with computer software to plan and track perform-
ance, and to provide other support or services to facilitate
the exchange of information under this subtitle among ju-
risdictions, community housing development organiza-
tions, other nonprofits, community members, and the Sec-
retary.
‘‘(c) JOINT GRANTS TO EDUCATIONAL INSTITUTIONS
AND STATE AND LOCAL GOVERNMENTS.—Of the amount
available for each fiscal year under section 217(a)(2)(A),
the Secretary may use up to $5,000,000 to make grants
to States and units of general local government and insti-
tutions of higher education having a demonstrated capac-
ity to carry out eligible activities under this title, except
that the Secretary may make a grant under this sub-
section only to a State or unit of general local government
that jointly, with an institution of higher education, has
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prepared and submitted to the Secretary an application
for such grant, as the Secretary shall by regulation re-
quire.
‘‘(d) COMMUNITY OUTREACH PARTNERSHIP ACT.—
Of the amount available for each fiscal year under section
217(a)(3)(A), the Secretary may use up to $7,500,000 to
carry out the Community Outreach Partnership Act of
1992.
‘‘(e) LEAD ASSISTANCE.—Of the amount available
for each fiscal year beginning in fiscal year 1998 under
section 217(a)(3)(C), the Secretary is authorized to pro-
vide assistance to State and local governments to support
lead research, technical studies, and education materials,
concerning lead-based paint hazards, reduction and abate-
ment of lead-based paint hazards, and childhood lead poi-
soning prevention activities.’’.
SEC. 40. TERMINATION OF EXISTING PROGRAMS.
Section 289 of such Act is amended by adding at the
end the following new subsection:
‘‘(d) HOME PERFORMANCE FUND REPEALERS.—
‘‘(1) IN GENERAL.—The following provisions of
law are hereby repealed:
‘‘(A) Title III, subtitle A, of the Cranston-
Gonzalez National Affordable Housing Act, ef-
fective on the date of enactment of this Act.
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‘‘(B) Title IV, subtitles B and C, of the
Cranston-Gonzalez National Affordable Hous-
ing Act, effective on the date of enactment of
this Act.
‘‘(C) Section 1011 of the Housing and
Community Development Act of 1992, effective
on October 1, 1997.
‘‘(2) AUTHORITY TO PROVIDE ASSISTANCE.—
On and after the effective date of such repeal, the
Secretary may not make assistance available under
any of the authorities listed in paragraph (1) (as
they existed immediately before such effective date),
except pursuant to a legally binding commitment en-
tered into before that date.
‘‘(3) LAW
GOVERNING.—Any amounts made
available under any authority listed in paragraph (1)
before such effective date shall continue to be gov-
erned by the provisions of such authority, as they
existed immediately before that date, except that
each jurisdiction may, in its discretion pursuant to
procedures established by the Secretary, provide for
the use, in accordance with the provisions of this
title, of any such amounts that it has not obligated
under such authority. If the grantee under any of
these authorities is not the jurisdiction, the grantee
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may, pursuant to procedures established by the Sec-
retary, transfer such unobligated funds to the juris-
diction for use in accordance with the provisions of
this title or title I of the Housing and Community
Development Act of 1974.
‘‘(4) STATUS OF FUNDS.—Any amounts appro-
priated under any authority listed in paragraph (1)
before such effective date that are available for obli-
gation immediately before such date, or that become
available for obligation on or after that date, shall
be transferred and added to, and shall thereafter be
available for the purposes of, the appropriation ac-
count for this title. Any amounts so transferred shall
remain available for obligation only for the time pe-
riods for which such respective amounts were avail-
able before such transfer.’’.
TITLE II—DEVELOPING COMMUNITIES
INITIATIVE
SEC. 51. BASIC AUTHORITY.
(a) PURPOSES.—The Secretary may provide assist-
ance in accordance with the provisions of this title to non-
profit organizations for the purposes of—
(1) stimulating public and private investment in
housing and community development for disadvan-
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taged and underserved individuals in target commu-
nities under subsection (b);
(2) making infrastructure, public health, and
safety improvements for such disadvantaged and un-
derserved individuals;
(3) providing supportive services for such dis-
advantaged and underserved individuals; and
(4) developing the capacity of community devel-
opment corporations to undertake community devel-
opment and affordable housing projects for such dis-
advantaged and underserved individuals.
(b) TARGET
COMMUNITIES.—Assistance provided
under this title shall be used, as determined by the Sec-
retary in consultation with the Secretary of Agriculture,
to assist disadvantaged and underserved individuals in
communities requiring development due to factors such as
severe, unmet housing needs, substandard housing, inad-
equate roads and drainage, substandard or the absence
of water and sewer facilities, inadequate social support
services, and inadequate governmental funding, including
individuals such as—
(1) residents of colonias;
(2) farmworkers; and