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tor of the Office of Management and Budget or a
portion of such an area determined appropriate by
the Secretary for purposes of this subtitle, in which
a project is located or, in the case of a project not
located in a standard metropolitan area, which is the
nearest such area to the project;
(9) the term ‘‘remaining useful life’’ means,
with respect to a qualified project, the period during
which the physical characteristics of the project re-
main in a condition suitable for occupancy, assuming
normal maintenance and repairs are made and
major systems and capital components are replaced
as becomes necessary, as determined on the record
after opportunity for a hearing, in accordance with
standards for determining when the useful life of an
eligible low-income housing project has expired that
are established by the Secretary by rule under sec-
tion 553 of title 5, United States Code;
(10) the term ‘‘resident council’’ means any
democratically operated organization of tenants of a
qualified project; and
(11) the term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
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SEC. 164. REGULATIONS.
The Secretary shall issue any final regulations nec-
essary to carry out this subtitle, which shall take effect
not later than 6 months after the date of the enactment
of this Act. The regulations shall be issued after notice
and opportunity for public comment in accordance with
the procedure under section 553 of title 5, United States
Code, applicable to substantive rules (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section).
SEC. 165. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out the provisions of this
subtitle for which amounts are not provided under section
5(c) of the United States Housing Act of 1937.
Subtitle E—Homeownership
Programs
SEC. 171. HOPE HOMEOWNERSHIP PROGRAMS.
(a) AUTHORIZATION
OF
APPROPRIATIONS
AND
TECHNICAL ASSISTANCE.—
(1) IN GENERAL.—Section 402 of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12870) is amended by striking subsections
(a) and (b) and inserting the following new sub-
section:
‘‘(a) HOMEOWNERSHIP PROGRAMS.—There are au-
thorized to be appropriated for grants under this title
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$100,000,000 for fiscal year 1995 and $100,000,000 for
fiscal year 1996, which shall be available for activities au-
thorized under subtitles B and C. Such amounts shall also
be available for implementation grants under title III of
the United States Housing Act of 1937, except that not
more than $25,000,000 may be used for the purpose
under this sentence and such amounts may only be used
for implementation grants to applicants who have success-
fully completed planning grants under such title. Any
amounts appropriated pursuant to this subsection shall re-
main available until expended.’’.
(b) HOPE II MATCHING REQUIREMENTS.—Section
423(c)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12873(c)) is amended by striking
‘‘33 percent’’ and inserting ‘‘25 percent’’.
(c) ELIGIBILITY UNDER HOPE III OF HOMES ON
LEASED LAND OWNED BY COMMUNITY LAND TRUSTS.—
Section 446(4) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 12896(4)) is amended—
(1) by inserting ‘‘(A)’’ before ‘‘owned’’; and
(2) by inserting before the period at the end the
following: ‘‘, or (B) located on leased land owned by
a community land trust (as such term is defined in
section 233 of the HOME Investment Partnerships
Act)’’.
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SEC. 172. NATIONAL HOMEOWNERSHIP FUND.
Subtitle A of title III of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12701 note) is
amended to read as follows:
‘‘Subtitle A—National
Homeownership Fund
‘‘SEC. 301. SHORT TITLE.
‘‘This subtitle may be cited as the ‘National Home-
ownership Fund Act’.
‘‘SEC. 302. AUTHORITY.
‘‘The Secretary of Housing and Urban Development
may make grants under this subtitle to States (including
State housing finance agencies), local housing finance
agencies, and nonprofit housing intermediaries to provide
assistance, in accordance with the provisions of this sub-
title, for the acquisition of principal residences for first-
time homebuyers (including homebuyers buying shares in
limited equity cooperatives).
‘‘SEC. 303. ELIGIBLE ASSISTANCE.
‘‘A grantee may use amounts received under this sub-
title only to provide assistance to first-time homebuyers
in the following manners:
‘‘(1) DOWNPAYMENT ASSISTANCE.—Assistance
payments to provide amounts for the downpayment
(including closing costs and other costs payable at
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the time of closing) on a mortgage for the home-
buyer.
‘‘(2) SECOND MORTGAGE ASSISTANCE.—Assist-
ance payments to provide loans that have such terms
for payment of interest and principal as may be de-
termined by the grantee.
‘‘(3) CAPITALIZATION
OF
REVOLVING
LOAN
FUNDS.—To establish revolving loan funds (or to
make grants to public organizations or agencies to
establish such funds) to provide homeownership as-
sistance to eligible first-time homebuyers in accord-
ance with the provisions of this subtitle. Any grantee
under this subtitle (and any subgrantee of such a
grantee) shall provide an equal amount of local in-
vestment for such revolving loan fund and any pro-
ceeds or repayments from loans made under this
paragraph shall be returned to the revolving loan
fund established under this paragraph to be used for
purposes related to this section.
‘‘(4) INTEREST RATE BUYDOWNS.—Assistance
payments so that the rate of interest payable on a
mortgage by the homebuyer does not exceed 6 per-
cent.
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‘‘SEC. 304. ELIGIBILITY REQUIREMENTS.
‘‘(a) HOMEBUYER.—Assistance may be provided only
to homebuyers meeting the following requirements:
‘‘(1) FIRST-TIME
HOMEBUYER.—The home-
buyer is an individual who—
‘‘(A)(i) (and whose spouse) has had no
ownership in a principal residence during the 3-
year period ending on the date of purchase of
the property with respect to which assistance
payments are made under this subtitle;
‘‘(ii) is a displaced homemaker who, except
for owning a home with his or her spouse or re-
siding in a home owned by the spouse, meets
the requirements of clause (i); or
‘‘(iii) is a single parent who, except for
owning a home with his or her spouse or resid-
ing in a home owned by the spouse while mar-
ried, meets the requirements of clause (i); and
‘‘(B) meets the requirements of subpara-
graph (A)(i), (ii), or (iii), except for owning, as
a principal residence, a dwelling unit whose
structure is not permanently affixed to a per-
manent foundation in accordance with local or
other applicable regulations.
‘‘(2) MAXIMUM INCOME OF HOMEBUYER.—The
aggregate annual income of the homebuyer and the