I
103D CONGRESS
1ST SESSION
H. R. 2668
To establish a demonstration program to provide affordable rental housing
for low-income families, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 1993
Mr. GONZALEZ (for himself and Mrs. ROUKEMA) introduced the following bill;
which was referred to the Committee on Banking, Finance and Urban Affairs
A BILL
To establish a demonstration program to provide affordable
rental housing for low-income families, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Community Investment
Demonstration Act of 1993’’.
SEC. 2. SECTION 8 COMMUNITY INVESTMENT DEMONSTRA-
TION PROGRAM.
(a) AUTHORITY.—Using amounts available pursuant
to section 5(c)(7)(B)(ii) of the United States Housing Act
of 1937, the Secretary of Housing and Urban Develop-
ment (in this section referred to as the ‘‘Secretary’’) shall
carry out a demonstration program to provide project-
based rental assistance under section 8 of such Act on be-
half of low-income families residing in housing that is con-
structed, rehabilitated, or acquired pursuant to a loan or
other financing from an eligible pension fund. Notwith-
standing section 514(d) of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1144(d)), nothing
in this section shall be construed to authorize any action
or failure to act that would otherwise constitute a violation
of such Act with respect to an eligible pension fund.
(b) CONTRACT TERMS.—Assistance provided under
the demonstration under this section with respect to eligi-
ble housing—
(1) shall be project-based assistance that is at-
tached to the eligible housing; and
(2) shall be provided pursuant to a contract en-
tered into by the Secretary and the owner of the eli-
gible housing that—
(A) provides such assistance for a term of
not less than 60 months and not more than 180
months; and
(B) provides that the contract rents for
dwelling units in the eligible housing shall be
determined by the Secretary taking into consid-
eration any costs for construction, rehabilita-
tion, or acquisition of the housing, except that
such contract rent may not exceed the contract
rent permitted pursuant to section 8 of the
United States Housing Act of 1937.
(c) ELIGIBLE HOUSING.—The Secretary may enter
into a commitment to provide assistance pursuant to this
section with respect to a housing project only if—
(1) the housing is—
(A) a multifamily housing project owned
by the Secretary or subject to a mortgage held
by the Secretary that is delinquent, under a
workout agreement, or being foreclosed upon by
the Secretary;
(B) designated by the Secretary under sec-
tion 24(b) of the United States Housing Act of
1937 as a severely distressed public housing
project;
(C) a multifamily housing project eligible
for assistance for troubled projects under sec-
tion 201 of the Housing and Community Devel-
opment Amendments of 1978;
(D) a multifamily housing project located
in a empowerment zone or enterprise commu-
nity designated pursuant to Federal law; or
(E) any other multifamily housing project,
including a project to be occupied by homeless
persons (as such term is defined in section 103
of the Stewart B. McKinney Homeless Assist-
ance Act) or homeless families;
(2) the Secretary determines that the owner of
the housing has obtained commitments, satisfactory
in the determination of the Secretary, for financing
for the construction, acquisition, or rehabilitation of
the housing from an eligible pension fund;
(3) the mortgage for the housing meets stand-
ards regarding securitization and such additional
standards regarding financing as the Secretary may
establish;
(4) in the case of any housing that is to be con-
structed, the Secretary determines that the owner of
the housing has provided reasonable assurances to
the Secretary that the owner will own or have con-
trol of a site for the housing (which may be a suit-
able site different from the site specified in the ap-
plication under subsection (d)) not later than 12
months after notification of the award of assistance
under this section;
(5) the housing and any work done with respect
to the housing will comply with any applicable envi-
ronmental laws or regulations;
(6) the construction, rehabilitation, or acquisi-
tion of the housing is not inconsistent with the ap-
proved comprehensive housing affordability strategy
under title I of the Cranston-Gonzalez National Af-
fordable Housing Act for the jurisdiction in which
the housing is located; and
(7) the housing complies with any other re-
quirements established by the Secretary to carry out
the demonstration under this section.
(d) APPLICATIONS.—The Secretary shall provide for
the owners of eligible housing, together with the eligible
pension funds providing financing for the housing, to
jointly submit applications for assistance under this sec-
tion. An application shall include a description of the hous-
ing to be constructed, rehabilitated, or acquired, the loca-
tion of the housing (or the site for the construction of the
housing), the terms of the financing by the eligible pension
fund, a request for a specific amount of assistance under
this section for a specific term, and such other information
as the Secretary may require.
(e) SELECTION AND DETERMINATION OF ASSIST-
ANCE.—The Secretary shall select eligible housing for as-
sistance under this section from among applications sub-
mitted pursuant to subsection (d) and, subject to the pro-
visions of this section, shall determine the amount of as-
sistance to be provided for selected housing that is appro-
priate to maintain the affordability and feasibility of the
housing.
(f) RELATION TO PHA PROJECT-BASED LIMIT.—
Project-based assistance provided under this section shall
not be considered for purposes of any percentage limita-
tion under section 8(d)(2)(A) or (B) of the United States
Housing Act of 1937 regarding the amount of assistance
under such section that may be attached to the structure.
(g) USE IN PROPERTY DISPOSITION PROGRAM.—
(1) AUTHORITY.—Notwithstanding any provi-
sion of section 203 of the Housing and Community
Development Amendments of 1978, assistance pro-
vided in connection with the disposition of a multi-
family housing project under such section 203 may
have a contract term of less than 15 years if such
assistance is provided (A) under a contract under
the demonstration under this section, and (B) pur-
suant to a disposition plan under such section 203
for the project that is approved under such section
by the Secretary as otherwise in compliance with the
requirements of such section.