I
105TH CONGRESS
1ST SESSION
H. R. 2406
To provide for the temporary extension of certain programs relating to public
housing, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 4, 1997
Mr. LAZIO of New York (for himself and Mr. LEACH) introduced the following
bill; which was referred to the Committee on Banking and Financial Services
A BILL
To provide for the temporary extension of certain programs
relating to public housing, 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 ‘‘Temporary Extension
of Public Housing Reform Provisions Act of 1997’’.
TITLE I—PUBLIC HOUSING AND
SECTION 8 RENTAL ASSISTANCE
SEC. 101. PUBLIC HOUSING CEILING RENTS AND INCOME
ADJUSTMENTS AND PREFERENCES FOR AS-
SISTED HOUSING.
Section 402(f) of The Balanced Budget Downpay-
ment Act, I (42 U.S.C. 1437aa note) is amended by in-
serting before the period at the end the following: ‘‘and
the portion of fiscal year 1998 that precedes April 1,
1998’’.
SEC. 102. PUBLIC HOUSING DEMOLITION AND DISPOSI-
TION.
Section 1002(d) of the Emergency Supplemental Ap-
propriations for Additional Disaster Assistance, for Anti-
terrorism Initiatives, for Assistance in the Recovery from
the Tragedy that Occurred at Oklahoma City, and Rescis-
sions Act, 1995 (42 U.S.C. 1437c note) is amended by
striking ‘‘September 30, 1997’’ and inserting ‘‘March 31,
1998’’.
SEC. 103. PUBLIC HOUSING FUNDING FLEXIBILITY AND
MIXED-FINANCE DEVELOPMENTS.
Section 201(a)(2) of the Departments of Veterans
Affairs and Housing and Urban Development, and Inde-
pendent Agencies Appropriations Act, 1996 (as contained
in section 101(e) of the Omnibus Consolidated Rescissions
(2) in subsection (a)(3)(B), by inserting ‘‘or
1998’’ before the semicolon at the end;
(3) in subsection (h)(1)(B), by striking ‘‘fiscal
year 1997’’ and inserting ‘‘fiscal years 1997 and
1998’’; and
(4) in subsection (h)(1)(F)(ii), by striking ‘‘fis-
cal year 1997’’ and inserting: ‘‘fiscal years 1997 and
1998’’.
SEC. 203. MULTIFAMILY HOUSING FINANCE PILOT PRO-
GRAMS.
Section 542 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1707 note) is amended—
(1) in subsection (b)(5), by inserting before the
period at the end of the first sentence the following:
‘‘, and not more than an additional 15,000 units
during fiscal year 1998’’; and
(2) in the first sentence of subsection (c)(4)—
(A) by striking ‘‘and’’ and inserting a
comma; and
(B) by inserting before the period at the
end the following: ‘‘, and not more than an ad-
ditional 15,000 units during fiscal year 1998’’.
SEC. 204. PROPERTY DISPOSITION.
(a) ENHANCED AUTHORITY FOR HUD DISPOSITION
OF MULTIFAMILY HOUSING.—Section 204 of the Depart-
ments of Veterans Affairs and Housing and Urban Devel-
opment, and Independent Agencies Appropriations Act,
1997 (12 U.S.C. 1715z–11a) is amended by inserting
after ‘‘owned by the Secretary’’ the following: ‘‘, including
the provision of grants and loans from the General Insur-
ance Fund for the necessary costs of rehabilitation or
demolition,’’.
(b) DISPOSITION FOR AFFORDABLE HOUSING PUR-
POSES.—The provisions of section 714 of the bill, H.R.
2 (105th Congress), as passed by the House of Represent-
atives on May 14, 1997, are hereby enacted into law.
SEC. 205. MULTIFAMILY MORTGAGE AUCTIONS.
Section 221(g)(4)(C) of the National Housing Act
(12 U.S.C. 1715l(g)(4)(C)) is amended—
(1) in the first sentence of clause (viii), by
striking ‘‘September 30, 1996’’ and inserting ‘‘De-
cember 31, 2005’’; and
(2) by adding at the end the following new
clauses:
‘‘(ix) Subject to the limitation in clause (x), the
costs of any multifamily auctions under this sub-
paragraph occurring during any fiscal year shall be
paid from amounts in the General Insurance Fund
established under section 519.
‘‘(x) This authority of the Secretary to conduct
multifamily auctions under this subparagraph shall
be effective for any fiscal year only to the extent or
in such amounts that amounts in the General Insur-
ance Fund are or have been approved in appropria-
tion Acts for costs of such auctions occurring during
such fiscal year.’’.
SEC. 206. INTEREST REDUCTION PAYMENTS IN CONNEC-
TION WITH SALES OF SECTION 236 MORT-
GAGES HELD BY HUD.
Section 236 of the National Housing Act (12 U.S.C.
1715z–1) is amended—
(1) in the first sentence of subsection (b), by in-
serting before the colon at the end of the first pro-
viso the following: ‘‘and when the mortgage is as-
signed or otherwise transferred to a subsequent
holder or purchaser (including any successors and
assignees)’’;
(2) in subsection (c)—
(A) by inserting ‘‘(1)’’ after the subsection
designation; and
(B) by adding at the end the following new
paragraphs:
‘‘(2) The Secretary may continue to make interest re-
duction payments to the holder or purchaser (including
any successors and assignees) of a mortgage formerly held
by the Secretary upon such terms and conditions as the
Secretary may determine. In exercising the authority
under the preceding sentence, upon cancellation of any
contract for such interest reduction payments as a result
of foreclosure or transfer of a deed in lieu of foreclosure,
any amounts of budget authority which would have been
available for such contract, absent cancellation, shall re-
main available for the project for the balance of the term
of the original mortgage upon such terms and conditions
as the Secretary may determine.
‘‘(3) Notwithstanding subsection (i)(2) or any other
provision of law, in connection with the sale of mortgages
held by the Secretary, the Secretary may establish appro-
priate terms and conditions, based on section 42 of the
Internal Revenue Code of 1986 or another appropriate
standard, for determining eligibility for occupancy in the
project and rental charges.’’.
SEC. 207. ASSIGNMENT OF REGULATORY AGREEMENTS IN
CONNECTION WITH SALES OF MORTGAGES
HELD BY HUD.
Section 203(k) of the Housing and Community De-
velopment Amendments of 1978 (12 U.S.C. 1701z–11(k))
is amended by adding at the end the following new para-
graph:
‘‘(7) ASSIGNMENT
OF
REGULATORY
AGREE-
MENT
IN
CONNECTION
WITH
SALE
OF
MORT-
GAGES.—Notwithstanding any other provision of
law, and upon such terms and conditions as the Sec-
retary may prescribe, the Secretary may, in connec-
tion with the sale of mortgages held by the Sec-
retary, provide for the assumption of all rights and
responsibilities under the regulatory agreement exe-
cuted by or for the benefit of the Secretary. Such as-
sumption shall further provide for the regulatory
agreement to be so assumed by any successor or as-
signee of the initial assuming entity. Such regulatory
agreement shall continue to be binding upon the
mortgagor and its successors and assignees.’’.
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