Act of 1987’’ and inserting ‘‘or applying for fi-
nancial assistance’’; and
(B) by inserting at the end the following
new sentence:
‘‘In the case of an individual applying for financial
assistance, the Secretary may not provide such as-
sistance for the benefit of the individual before such
documentation is presented and verified under para-
graph (3) or (4).’’;
(4) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘on the date of the enactment
of the Housing and Community Development
Act of 1987’’ and inserting ‘‘or applying for fi-
nancial assistance’’;
(B) in subparagraph (A)—
(i) in clause (i)—
(I) by inserting ‘‘, not to exceed
30 days,’’ after ‘‘reasonable oppor-
tunity’’; and
(II) by striking ‘‘and’’ at the end;
and
(ii) by striking clause (ii) and insert-
ing the following new clauses:
‘‘(ii) in the case of any individual who
is already receiving assistance, may not
delay, deny, reduce, or terminate the indi-
vidual’s eligibility for financial assistance
on the basis of the individual’s immigra-
tion status until such 30-day period has
expired, and
‘‘(iii) in the case of any individual who
is applying for financial assistance, may
not deny the application for such assist-
ance on the basis of the individual’s immi-
gration status until such 30-day period has
expired; and’’;
(C) in subparagraph (B), by striking
clause (ii) and inserting the following new
clause:
‘‘(ii) pending such verification or ap-
peal, the Secretary may not—
‘‘(I) in the case of any individual
who is already receiving assistance,
delay, deny, reduce, or terminate the
individual’s eligibility for financial as-
sistance on the basis of the individ-
ual’s immigration status, and
‘‘(II) in the case of any individ-
ual who is applying for financial as-
sistance, deny the application for such
assistance on the basis of the individ-
ual’s immigration status, and’’;
(5) in paragraph (5), by striking all that follows
‘‘satisfactory immigration status’’ and inserting the
following: ‘‘, the Secretary shall—
‘‘(A) deny the individual’s application for
financial assistance or terminate the individ-
ual’s eligibility for financial assistance, as the
case may be; and
‘‘(B) provide the individual with written
notice of the determination under this para-
graph.’’; and
(6) by striking paragraph (6) and inserting the
following new paragraph:
‘‘(6) The Secretary shall terminate the eligi-
bility for financial assistance of an individual, for a
period of not less than 24 months, upon determining
that such individual has knowingly permitted an-
other individual who is not eligible for such assist-
ance to use the assistance (including residence in the
unit assisted).’’.
SEC. 4. PROHIBITION OF SANCTIONS AGAINST ENTITIES
MAKING 
FINANCIAL 
ASSISTANCE 
ELIGI-
BILITY DETERMINATIONS.
Section 214(e)(4) of the Housing and Community
Development Act of 1980 is amended—
(1) in paragraph (2), by inserting ‘‘or’’ at the
end;
(2) in paragraph (3), by striking ‘‘, or’’ at the
end and inserting a period; and
(3) by striking paragraph (4).
SEC. 5. SUSPENSION OF IMPLEMENTATION OF REGULA-
TIONS.
Notwithstanding any other provision of law, the regu-
lations relating to restrictions on assistance to noncitizens,
contained in the final rule issued by the Secretary of
Housing and Urban Development in RIN 2501–AA63
(Docket No. R–95–1409; FR–2383–F–050), published in
the Federal Register of March 20, 1995 (Vol. 60., No.
53; pp. 14824–14861), shall not apply on or after April
1, 1996, and the Secretary of Housing and Urban Devel-
opment may not issue, implement, or enforce any regula-
tion or guideline that is effective on or after such date
that is substantially based upon such regulations unless
such regulation or guideline is consistent with the provi-