351
(B) by striking ‘‘variations are’’ and in-
serting ‘‘variation is’’; and
(C) by striking ‘‘high or’’.
(b) CDBG.—Section 102(a)(20) of the Housing and
Community Development Act of 1974 (42 U.S.C.
5302(a)(20)) is amended by striking subparagraph (B)
and inserting the following new subparagraph:
‘‘(B) The Secretary may—
‘‘(i) with respect to any reference in sub-
paragraph (A) to 50 percent of the median in-
come of the area involved, establish percentages
of median income for any area that are higher
or lower than 50 percent if the Secretary finds
such variations to be necessary because of un-
usually high or low family incomes in such area;
and
‘‘(ii) with respect to any reference in sub-
paragraph (A) to 80 percent of the median in-
come of the area involved, establish a percent-
age of median income for any area that is high-
er than 80 percent if the Secretary finds such
variation to be necessary because of unusually
low family incomes in such area.’’.
352
SEC. 705. PROHIBITION OF USE OF CDBG GRANTS FOR EM-
PLOYMENT RELOCATION ACTIVITIES.
Section 105 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5305) is amended by adding
at the end the following new subsection:
‘‘(h) PROHIBITION OF USE OF ASSISTANCE FOR EM-
PLOYMENT RELOCATION ACTIVITIES.—Notwithstanding
any other provision of law, no amount from a grant under
section 106 made in fiscal year 1997 or any succeeding
fiscal year may be used for any activity (including any in-
frastructure improvement) that is intended, or is likely,
to facilitate the relocation or expansion of any industrial
or commercial plant, facility, or operation, from one area
to another area, if the relocation or expansion will result
in a loss of employment in the area from which the reloca-
tion or expansion occurs.’’.
SEC. 706. REGIONAL COOPERATION UNDER CDBG ECO-
NOMIC DEVELOPMENT INITIATIVE.
Section 108(q)(4) (42 U.S.C. 5308(q)(4)) of the
Housing and Community Development Act of 1974 is
amended—
(1) by striking ‘‘and’’ after the semicolon in
subparagraph (C);
(2) by redesignating subparagraph (D) as sub-
paragraph (E); and
353
(3) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) when applicable as determined by the
Secretary, the extent of regional cooperation
demonstrated by the proposed plan; and’’.
SEC. 707. USE OF AMERICAN PRODUCTS.
(a) PURCHASE
OF AMERICAN-MADE EQUIPMENT
AND PRODUCTS.—It is the sense of the Congress that, to
the greatest extent practicable, all equipment and products
purchased with funds made available in this Act should
be American made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any en-
tity using funds made available in this Act, the head of
each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the state-
ment made in subsection (a) by the Congress.
SEC. 708. CONSULTATION WITH AFFECTED AREAS IN SET-
TLEMENT OF LITIGATION.
In negotiating any settlement of, or consent decree
for, any litigation regarding public housing or rental as-
sistance (under title III of this Act or the United States
Housing Act of 1937, as in effect before the effective date
of the repeal under section 601(b) of this Act) that in-
volves the Secretary and any public housing agency or any
354
unit of general local government, the Secretary shall con-
sult with any units of general local government and public
housing agencies having jurisdictions that are adjacent to
the jurisdiction of the public housing agency involved.
SEC. 709. TREATMENT OF PHA REPAYMENT AGREEMENT.
(a) LIMITATION ON SECRETARY.—During the 2-year
period beginning on the date of the enactment of this Act,
if the Housing Authority of the City of Las Vegas, Ne-
vada, is otherwise in compliance with the Repayment Lien
Agreement and Repayment Plan approved by the Sec-
retary on February 12, 1997, the Secretary of Housing
and Urban Development shall not take any action that has
the effect of reducing the inventory of senior citizen hous-
ing owned by such housing authority that does not receive
assistance from the Department of Housing and Urban
Development.
(b) ALTERNATIVE REPAYMENT OPTIONS.—During
the period referred to in subsection (a), the Secretary shall
assist the housing authority referred to in such subsection
to identify alternative repayment options to the plan re-
ferred to in such subsection and to execute an amended
repayment plan that will not adversely affect the housing
referred to in such subsection.
(c) RULE OF CONSTRUCTION.—This section may not
be construed to alter—
355
(1) any lien held by the Secretary pursuant to
the agreement referred to in subsection (a); or
(2) the obligation of the housing authority re-
ferred to in subsection (a) to close all remaining
items contained in the Inspector General audits
numbered 89 SF 1004 (issued January 20, 1989),
93 SF 1801 (issued October 30, 1993), and 96 SF
1002 (issued February 23, 1996).
SEC. 710. USE OF ASSISTED HOUSING BY ALIENS.
Section 214 of the Housing and Community Develop-
ment Act of 1980 (42 U.S.C. 1436a) is amended—
(1) in subsection (b)(2), by striking ‘‘Secretary
of Housing and Urban Development’’ and inserting
‘‘applicable Secretary’’;
(2) in subsection (c)(1)(B), by moving clauses
(ii) and (iii) 2 ems to the left;
(3) in subsection (d)—
(A) in paragraph (1)(A)—
(i) by striking ‘‘Secretary of Housing
and Urban Development’’ and inserting
‘‘applicable Secretary’’; and
(ii) by striking ‘‘the Secretary’’ and
inserting ‘‘the applicable Secretary’’;
(B) in paragraph (2), in the matter follow-
ing subparagraph (B)—
356
(i) by inserting ‘‘applicable’’ before
‘‘Secretary’’; and
(ii) by moving such matter (as so
amended by clause (i)) 2 ems to the right;
(C) in paragraph (4)(B)(ii), by inserting
‘‘applicable’’ before ‘‘Secretary’’;
(D) in paragraph (5), by striking ‘‘the Sec-
retary’’ and inserting ‘‘the applicable Sec-
retary’’; and
(E) in paragraph (6), by inserting ‘‘appli-
cable’’ before ‘‘Secretary’’;
(4) in subsection (h) (as added by section 576
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (division C of Public Law
104–208))—
(A) in paragraph (1)—
(i) by striking ‘‘Except in the case of
an election under paragraph (2)(A), no’’
and inserting ‘‘No’’;
(ii) by striking ‘‘this section’’ and in-
serting ‘‘subsection (d)’’; and
(iii) by inserting ‘‘applicable’’ before
‘‘Secretary’’; and
(B) in paragraph (2)—
357
(i) by striking subparagraph (A) and
inserting the following new subparagraph:
‘‘(A) may, notwithstanding paragraph (1)
of this subsection, elect not to affirmatively es-
tablish and verify eligibility before providing fi-
nancial assistance’’; and
(ii) in subparagraph (B), by striking
‘‘in complying with this section’’ and in-
serting ‘‘in carrying out subsection (d)’’;
and
(5) by redesignating subsection (h) (as amended
by paragraph (4)) as subsection (i).
SEC. 711. PROTECTION OF SENIOR HOMEOWNERS UNDER
REVERSE MORTGAGE PROGRAM.
(a) DISCLOSURE REQUIREMENTS; PROHIBITION OF
FUNDING OF UNNECESSARY OR EXCESSIVE COSTS.—Sec-
tion 255(d) of the National Housing Act (12 U.S.C.
1715z–20(d)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (B), by striking
‘‘and’’ at the end;
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B)
the following:
358
‘‘(C) has received full disclosure of all costs
to the mortgagor for obtaining the mortgage,
including any costs of estate planning, financial
advice, or other related services; and’’;
(2) in paragraph (9)(F), by striking ‘‘and’’;
(3) in paragraph (10), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(11) have been made with such restrictions as
the Secretary determines to be appropriate to ensure
that the mortgagor does not fund any unnecessary
or excessive costs for obtaining the mortgage, includ-
ing any costs of estate planning, financial advice, or
other related services; such restrictions shall include
a requirement that the mortgagee ask the mortgagor
about any fees that the mortgagor has incurred in
connection with obtaining the mortgage and a re-
quirement that the mortgagee be responsible for en-
suring that the disclosures required by subsection
(d)(2)(C) are made.’’.
(b) IMPLEMENTATION.—
(1) NOTICE.—The Secretary of Housing and
Urban Development shall, by interim notice, imple-
ment the amendments made by subsection (a) in an
expeditious manner, as determined by the Secretary.
359
Such notice shall not be effective after the date of
the effectiveness of the final regulations issued
under paragraph (2) of this subsection.
(2) REGULATIONS.—The Secretary shall, not
later than the expiration of the 90-day period begin-
ning on the date of the enactment of this Act, issue
final regulations to implement the amendments
made by subsection (a). Such regulations shall be is-
sued only after notice and opportunity for public
comment pursuant to the provisions of section 553
of title 5, United States Code (notwithstanding sub-
sections (a)(2) and (b)(B) of such section).
SEC. 712. CONVERSION OF SECTION 8 TENANT-BASED AS-
SISTANCE TO PROJECT-BASED ASSISTANCE
IN THE BOROUGH OF TAMAQUA.
For the Tamaqua Highrise project in the Borough
of Tamaqua, Pennsylvania, the Secretary of Housing and
Urban Development may require the public housing agen-
cy to convert the tenant-based assistance under section 8
of the United States Housing Act of 1937 to project-based
rental assistance under section 8(d)(2) of such Act, not-
withstanding the requirement for rehabilitation or the per-
centage limitations under section 8(d)(2). The tenant-
based assistance covered by the preceding sentance shall
be the assistance for families who are residing in the
360
project on the date of enactment of this Act and who ini-
tially received their assistance in connection with the con-
version of the section 23 leased housing contract for the
project to tenant-based assistance under section 8 of such
Act. The Secretary may not take action under this section
before the expiration of the 30-day period beginning upon
the submission of a report to the Congress regarding the
proposed action under this section.
SEC. 713. HOUSING COUNSELING.
(a) EXTENSION OF EMERGENCY HOMEOWNERSHIP
COUNSELING.—Section 106(c)(9) of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701x(c)(9))
is amended by striking ‘‘September 30, 1994’’ and insert-
ing ‘‘September 30, 1999’’.
(b) EXTENSION
OF
PREPURCHASE
AND
FORE-
CLOSURE PREVENTION COUNSELING DEMONSTRATION.—
Section 106(d)(13) of the Housing and Urban Develop-
ment Act of 1968 (12 U.S.C. 1701x(d)(12)) is amended
by striking ‘‘fiscal year 1994’’ and inserting ‘‘fiscal year
1999’’.
(c) NOTIFICATION OF DELINQUENCY ON VETERANS
HOME LOANS.—
Subparagraph (C) of section 106(c)(5) of the Hous-
ing and Urban Development Act of 1968 is amended to
read as follows:
361
‘‘(C) NOTIFICATION.—Notification under
subparagraph (A) shall not be required with re-
spect to any loan for which the eligible home-
owner pays the amount overdue before the expi-
ration of the 45-day period under subparagraph
(B)(ii).’’.
SEC. 714. TRANSFER OF SURPLUS REAL PROPERTY FOR
PROVIDING HOUSING FOR LOW- AND MOD-
ERATE-INCOME FAMILIES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law (including the Federal Property and Adminis-
trative Services Act of 1949), the property known as 252
Seventh Avenue in New York County, New York is author-
ized to be conveyed in its existing condition under a public
benefit discount to a non-profit organization that has
among its purposes providing housing for low-income indi-
viduals or families provided, that such property is deter-
mined by the Administrator of General Services to be sur-
plus to the needs of the Government and provided it is
determined by the Secretary of Housing and Urban Devel-
opment that such property will be used by such non-profit
organization to provide housing for low- and moderate-in-
come families or individuals.
(b)(1) PUBLIC BENEFIT DISCOUNT.—The amount of
the public benefit discount available under this section
362
shall be 75 percent of the estimated fair market value of
the property, except that the Secretary may discount by
a greater percentage if the Secretary, in consultation with
the Administrator, determines that a higher percentage is
justified due to any benefit which will accrue to the United
States from the use of such property for the public pur-
pose of providing low- and moderate-income housing.
(2) REVERTER.—The Administrator shall require
that the property be used for at least 30 years for the
public purpose for which it was originally conveyed, or
such longer period of time as the Administrator feels nec-
essary, to protect the Federal interest and to promote the
public purpose. If this condition is not met, the property
shall revert to the United States.
(3) DETERMINATION OF FAIR MARKET VALUE.—
The Administrator shall determine estimated fair market
value in accordance with Federal appraisal standards and
procedures.
(4) DEPOSIT OF PROCEEDS.—The Administrator of
General Services shall deposit any proceeds received under
this subsection in the special account established pursuant
to section 204(h)(2) of the Federal Property and Adminis-
trative Services Act of 1949.
(5) ADDITIONAL TERMS AND CONDITIONS.—The Ad-
ministrator may require such additional terms and condi-
363
tions in connection with the conveyance under subsection
(a) as the Administrator considers appropriate to protect
the interests of the United States and to accomplish a
public purpose.
SEC. 715. EFFECTIVE DATE.
This title and the amendments made by this title
shall take effect on the date of the enactment of this Act.
Passed the House of Representatives May 14, 1997.
Attest:
Clerk.