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(2) in subsection (c)—
(A) in paragraph (1)(A), by inserting be-
fore the 1st comma the following: ‘‘, accept any
payment tendered in the case of acceleration of
the amount due pursuant to any default on’’;
(B) in paragraph (1)(B), by inserting be-
fore the 1st comma the following: ‘‘, accept any
payment tendered in the case of acceleration of
the amount due pursuant to any default on’’;
(C) in paragraph (2)—
(i) by inserting after ‘‘prepaid’’ the
following: ‘‘, paid in full pursuant to accel-
eration of the amount due resulting from
default,’’; and
(ii) by inserting ‘‘, payment,’’ after
‘‘prepayment’’;
(D) in paragraph (4)(A), by inserting after
‘‘prepay,’’ the following: ‘‘accepting any pay-
ment tendered in the case of acceleration of the
amount due pursuant to any default on,’’; and
(E) in paragraph (5)—
(i) in subparagraph (A)(ii), by insert-
ing after ‘‘prepay,’’ the following: ‘‘accept
the payment tendered in the case of accel-
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eration of the amount due pursuant to de-
fault on,’’;
(ii) in the 1st sentence of subpara-
graph (F), by inserting after ‘‘prepay,’’ the
following: ‘‘accept payment tendered in the
case of acceleration of the amount due pur-
suant to default on,’’;
(iii) in the 2d sentence of subpara-
graph (F), by inserting after ‘‘prepay,’’ the
following: ‘‘payment tendered in the case
of acceleration of the amount due pursuant
to default,’’;
(iv) in the last sentence of subpara-
graph (F), by striking ‘‘offers to prepay,’’
and inserting the following: ‘‘such offers to
prepay, payments in the case of accelera-
tion of the amount due pursuant to de-
fault,’’; and
(v) in the matter in subparagraph (G)
that precedes clause (i), by inserting after
‘‘prepay,’’ the following: ‘‘any payment ten-
dered in the case of acceleration of the
amount due pursuant to default on,’’.
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(e) TEST FOR ALLOWABLE PREPAYMENT.—Section
502(c)(5)(G)(ii) of the Housing Act of 1949 (42 U.S.C.
1472(c)(5)(G)(ii)) is amended to read as follows:
‘‘(ii) the Secretary makes a written finding
that—
‘‘(I) prepayment, payment in the case of
acceleration, or refinancing will not (a) materi-
ally increase economic hardship for current ten-
ants, and (b) involuntarily displace current ten-
ants (except for good cause), where comparable
and affordable housing is not readily available
at the time of displacement, determined without
regard to the availability of Federal housing as-
sistance that would address any such hardship
or involuntary displacement; and
‘‘(II) the supply of vacant, comparable
housing is sufficient to ensure that such pre-
payment will not materially affect (a) the avail-
ability of decent, safe, and sanitary housing af-
fordable to low-income and very low-income
families or persons in the area that the housing
could reasonably be expected to serve, (b) the
ability of low-income and very low-income fami-
lies or persons to find affordable, decent, safe,
and sanitary housing near employment opportu-
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nities, or (c) the housing opportunities of mi-
norities in the community within which the
housing is located.’’.
SEC. 507. DESIGNATION OF UNDERSERVED AREAS AND
RESERVATION OF ASSISTANCE.
(a) REAUTHORIZATION
AND SET-ASIDE.—Section
509(f)(4) of the Housing Act of 1949 (42 U.S.C.
1479(f)(4)) is amended—
(1) in subparagraph (A)—
(A) in the first sentence—
(i) by striking ‘‘5.0 percent in fiscal
years 1993 and 1994’’ and inserting ‘‘not
less than 5 percent or more than 10 per-
cent for each of fiscal years 1995 and
1996’’; and
(ii) by striking ‘‘514, 515, and 524’’
and inserting ‘‘and 515’’; and
(B) in the second sentence, by striking
‘‘sections 514 and 515’’ and inserting ‘‘section
515’’; and
(2) in subparagraph (B)(ii), by striking ‘‘5 per-
cent’’ and inserting ‘‘10 percent’’.
(b) POVERTY LEVEL FOR DESIGNATION.—Section
509(f)(1) of the Housing Act of 1949 is amended—
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(1) in subparagraph (A), by striking ‘‘20 per-
cent’’ and inserting ‘‘15 percent’’; and
(2) in subparagraph (B), by striking ‘‘10 per-
cent’’ and inserting ‘‘5 percent’’.
(c) POVERTY LEVEL
FOR PREFERENCE.—Section
509(f)(2) of the Housing Act of 1949 is amended—
(1) in subparagraph (A), by striking ‘‘28 per-
cent’’ and inserting ‘‘20 percent’’; and
(2) in subparagraph (B), by striking ‘‘13 per-
cent’’ and inserting ‘‘7 percent’’.
(d) ADDITIONAL QUALIFICATION AS UNDERSERVED
AREA.—Section 509(f)(1) of the Housing Act of 1949 is
amended by inserting after subparagraph (B) the follow-
ing new flush sentence:
‘‘The Secretary may also designate a county or com-
munity as a targeted underserved area if the Sec-
retary determines that the county or community has
severe unmet housing needs, including needs caused
by severe economic and social dislocation such as
natural disasters, structural employment changes, or
persistent poverty, or has experienced long-term pop-
ulation and job losses.’’.
(e) GEOGRAPHICAL DIVERSITY.—Section 509(f)(1)
of the Housing Act of 1949 is amended by adding at the
end the following: ‘‘In designating targeted underserved
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areas under this paragraph for any fiscal year, the Sec-
retary may not designate more than 10 counties and com-
munities located in any single State or in the Common-
wealth of Puerto Rico. If more than 10 counties and com-
munities in any single State or the Commonwealth of
Puerto Rico qualify under this paragraph for designation
as an underserved area, the Secretary shall designate the
counties and communities for which the sum of the per-
centages under subparagraphs (A) and (B) are the great-
est.’’.
(f) 2-YEAR
AND 3-YEAR DESIGNATIONS.—Section
509(f) of the Housing Act of 1949 (42 U.S.C. 1479(f))
is amended—
(1) in paragraph (1)—
(A) in the 1st sentence, by striking ‘‘in
each fiscal year’’; and
(B) in the 2d sentence, by striking ‘‘year
in’’ and inserting ‘‘first year for’’;
(2) in paragraph (2)—
(A) in the first sentence, by striking
‘‘paragraph (4)’’ and inserting ‘‘paragraph
(5)’’; and
(B) by striking the last sentence;
(3) in paragraph (3)(B), by striking ‘‘para-
graph (2)’’ and inserting ‘‘paragraph (3)’’;
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(4) in paragraph (4)(A), by striking ‘‘paragraph
(7)’’ and inserting ‘‘paragraph (8)’’;
(5) by redesignating paragraphs (2) through
(8) as paragraphs (3) through (9), respectively; and
(6) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) TIMING
AND
DURATION
OF
DESIGNA-
TIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Secretary shall redesig-
nate the targeted underserved areas under this
subsection once every 2 fiscal years and such
designations shall remain in effect for a period
of 2 fiscal years. The first such 2-year designa-
tion shall be made for fiscal years 1995 and
1996.
‘‘(B) DESIGNATIONS FOR INDIAN AREAS.—
The Secretary shall ensure that, at all times,
not less than 5 counties or communities that
contain tribal allotted or Indian trust land are
included among the 100 counties and commu-
nities designated as targeted underserved areas.
The Secretary shall redesignate the counties or
communities designated as a targeted under-
served area in compliance with this subpara-
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graph once every 3 fiscal years and such des-
ignations shall remain in effect for 3 fiscal
years. The first such 3-year designation shall be
made for fiscal years 1995 through 1997. Upon
designation, the Secretary shall specify any tar-
geted underserved area designated in compli-
ance with this subparagraph.’’.
SEC. 508. ADMINISTRATIVE APPEALS.
(a) APPEALS.—Section 510(g) of the Housing Act of
1949 (42 U.S.C. 1480(g)) is amended—
(1) by inserting after ‘‘termination and’’ the
following: ‘‘, in the case of any eviction not related
to any drug-related or criminal activity, nonpayment
of rent, or activity that threatens the health, safety,
or right to peaceful enjoyment of the premises by
other residents,’’; and
(2) by inserting after ‘‘reverse the decision’’ the
following: ‘‘and is mutually selected within a reason-
able period of time by the person adversely affected
by the reduction or termination of assistance and
the person reducing or terminating assistance’’.
(b) ATTORNEYS.—Section 510(d)(1) of the Housing
Act of 1949 is amended—
(1) in the matter preceding subparagraph (A),
by inserting ‘‘or 515’’ after ‘‘502’’; and
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(2) in subparagraph (C)(ii), by inserting ‘‘with
respect to litigation under section 502,’’ before ‘‘rep-
resentation’’.
SEC. 509. SECTION 515 RURAL RENTAL HOUSING.
(a) LOAN TERM.—Section 515(a)(2) of the Housing
Act of 1949 (42 U.S.C. 1485(a)(2)) is amended by insert-
ing before the semicolon the following: ‘‘, except that the
Secretary may also make loans for a period of up to 30
years from the making of the loan’’.
(b) DEVELOPMENT COST.—Section 515(e)(4) of the
Housing Act of 1949 is amended by inserting ‘‘franchise
fees,’’ after ‘‘impact fees,’’.
(c) LIMITATION ON PROJECT TRANSFERS.—Section
515 of the Housing Act of 1949 (42 U.S.C. 1485) is
amended by inserting after subsection (g) the following
new subsection:
‘‘(h) PROJECT TRANSFERS.—After the date of the
enactment of the Housing and Community Development
Act of 1994, any interest in the ownership of a project
for which a loan is made or insured under this section
may be transferred only if the Secretary determines that
such transfer would be in the best interests of the tenants
of the housing for which the loan was made or insured
and of the Federal Government.’’.
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(d) EQUITY LOANS.—Section 515(t) of the Housing
Act of 1949 is amended—
(1) by striking paragraphs (4) and (5); and
(2) by redesignating paragraphs (6) through
(8) as paragraphs (4) through (6), respectively.
(e) SET-ASIDE
FOR NONPROFIT ENTITIES.—The
first sentence of section 515(w)(1) of the Housing Act of
1949 (42 U.S.C. 1485(w)(1)) is amended by striking ‘‘fis-
cal years 1993 and 1994’’ and inserting ‘‘fiscal years 1995
and 1996’’.
(f) AUTHORITY
FOR
STREAMLINED
MORTGAGE
MODIFICATIONS.—Section 515 of the Housing Act of
1949 (42 U.S.C. 1485) is amended by adding at the end
the following new subsection:
‘‘(aa) MORTGAGE MODIFICATIONS.—
‘‘(1) PURPOSE AND AUTHORITY.—In order to
reduce the amount of debt service payments and op-
erating costs of borrowers under loans made or in-
sured under this section, reduce rents paid by resi-
dents of housing financed with such loans, and re-
duce the amount of rental assistance necessary for
such housing, the Secretary may refinance the out-
standing principal obligation of a loan made under
this subsection in accordance with the provisions ap-
plicable (at the time of such refinancing) to loans
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made under this section that the Secretary deter-
mines are appropriate for purposes of this sub-
section and the terms and conditions of the original
loan. The authority of the Secretary under this sub-
section to modify loans shall be effective for any fis-
cal year only to such extent or in such amounts as
are or have been provided for such costs in appro-
priation Acts for such fiscal year.
‘‘(2) USE
OF
HOUSING.—Any terms of the
original loan relating to use of the housing and re-
lated facilities for the purposes specified in this sec-
tion shall continue to apply to the housing in the
same manner as if the loan were not modified under
this subsection.
‘‘(3) TREATMENT
OF
MODIFIED
MORTGAGE
UNDER
PREPAYMENT
RESTRICTIONS.—Any loan
modified under this subsection shall be considered a
loan originally made under this section, for purposes
of the limitations under subsection (c) on prepay-
ment and refinancing under subsection (b)(3). For
purposes of determining the financial status of the
loan or the housing securing the loan, the Secretary
may consider the terms of the refinancing.
‘‘(4) TERMS.—The Secretary shall, by regula-
tion, establish any requirements and conditions the
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housing organizations serving such tribes, to
employ local project coordinators trained pursu-
ant to subparagraph (A); and
‘‘(D) to establish a revolving fund to pro-
vide loans to tribes and members of tribes for
customary and reasonable costs incurred in pre-
paring and submitting applications for housing
assistance under this title to be used in the se-
lected areas (including costs of credit reports),
except that not more than $1,500 may be pro-
vided for the purpose under this subparagraph
to any single tribe or Native American or Alas-
kan Native housing organization.
‘‘(2) LOCAL PROJECT COORDINATOR.—For pur-
poses of this section, a local project coordinator shall
be an individual who—
‘‘(A) is employed by a tribe selected under
subsection (e) in, or Native American or Alas-
kan Native housing organization serving, the
selected area;
‘‘(B) provides advice and assistance to the
tribe or the tribes served by the organization
(and members of such tribes), regarding the
availability, application for, and use of housing
assistance under this title;