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ernization of public housing under section 14 of that Act
by public housing agencies participating in the demonstra-
tion that are located in the central city of the metropolitan
area. Of the amounts appropriated for annual contribu-
tions for assisted housing under the United States Hous-
ing Act of 1937 and earmarked for tenant-based assist-
ance under section 8 of that Act, the Secretary may set
aside up to $100,000,000 for use by public housing agen-
cies in support of the demonstration.
EXPAND
USE
OF
AMOUNTS
IN
SECTION
213(d)(4)
HEADQUARTERS
RESERVE
IN
CONNECTION
WITH
SETTLEMENT OF CIVIL RIGHTS LITIGATION
SEC. 602. (a) Section 213(d)(4)(A) of the Housing
and Community Development Act of 1974 is amended
by—
(1) striking ‘‘and’’ at the end of clause (iii);
(2) redesignating clause (iv) as clause (v); and
(3) inserting the following new clause after
clause (iii):
‘‘(iv) fair housing activities and cash
payments, in connection with the settle-
ment of civil rights litigation (excluding
litigation brought by an employee or
former employee of the Secretary); and’’.
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(b) Section 5 of the United States Housing Act of
1937 is amended by adding at the end the following new
subsection:
‘‘(m) The Secretary may use up to five percent of
the aggregate amount appropriated under this Act for
public housing development and section 8 assistance for
the activities eligible for funding from amounts retained
by the Secretary in accordance with section 213(d) of the
Housing and Community Development Act of 1974.’’.
MAKE CDBG EXPENDITURES ON FAIR HOUSING
ACTIVITIES ELIGIBLE ACTIVITIES IN THEIR OWN RIGHT
SEC. 603. (a) Section 105(a) of the Housing and
Community Development Act of 1974 is amended—
(1) in paragraph (24), by striking ‘‘and’’ at the
end;
(2) in paragraph (25), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(26) activities that affirmatively further fair
housing.’’.
(b) Section 105(c) of such Act is amended by adding
the following new paragraph at the end:
‘‘(5) Any activity carried out under subsection
(a)(26) shall be presumed to benefit persons of low
and moderate income.’’.
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FAIR HOUSING INITIATIVES PROGRAM AUTHORIZATION OF
APPROPRIATIONS
SEC. 604. Section 561(g) of the Housing and Com-
munity Development Act of 1987 (42 U.S.C. 3616 note)
is amended to read as follows:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to remain available until
expended, to carry out the provisions of this section
$26,000,000 for fiscal year 1995 and $26,000,000 for fis-
cal year 1996, of which—
‘‘(1) not less than $9,000,000 for fiscal year
1995 and not less than $9,000,000 for fiscal year
1996 shall be for private enforcement initiatives au-
thorized under subsection (b), divided equally be-
tween activities specified under subsection (b)(1)
and those specified under subsection (b)(2);
‘‘(2) not less than $7,000,000 for fiscal year
1995 and not less than $7,000,000 for fiscal year
1996 shall be for fair housing enforcement organiza-
tions authorized under subsection (c);
‘‘(3) not less than $7,000,000 for fiscal year
1995 and not less than $7,000,000 for fiscal year
1996 shall be for education and outreach programs
authorized under subsection (d); and
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‘‘(4) not less than $3,000,000 for fiscal year
1995 and not less than $3,000,000 for fiscal year
1996 shall be for administrative enforcement.’’.
CIVIL MONEY PENALTIES FOR VIOLATIONS OF THE HOME
MORTGAGE
DISCLOSURE
ACT
BY
NONSUPERVISED
MORTGAGEES
SEC. 605. Section 305 of the Home Mortgage Disclo-
sure Act of 1975 is amended as follows:
(1) Subsection (b)(4) is repealed.
(2) Subsection (c) is redesignated as section
305(d).
(3) A new subsection (c) is added, to read:
‘‘(c) POWERS OF THE SECRETARY OF HOUSING AND
URBAN DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary of Housing
and Urban Development (‘‘the Secretary’’) shall en-
force compliance with the requirements imposed
under this title with regard to lending institutions
not named in subsection (b).
‘‘(2) CIVIL
MONEY
PENALTIES.—Pursuant to
paragraph (1) of this subsection, the Secretary may
impose a civil money penalty for failure to comply
with the requirements of this title.
‘‘(3) AMOUNT OF PENALTY.—The amount of
the penalty, as determined by the Secretary, may
not exceed $5,000 for each violation, except that the
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maximum penalty for all violations by any particular
lending institution during any 1-year period shall
not exceed $1,000,000 .
‘‘(4) VIOLATIONS FOR WHICH A PENALTY MAY
BE IMPOSED.—A civil money penalty may be im-
posed for the late submission of a report, failure to
submit a report, submission of an illegible report,
submission of an erroneous report, and failure to
submit a corrected report for a report that was illeg-
ible or erroneous.
‘‘(5) AGENCY PROCEDURES.—
‘‘(A) 
ESTABLISHMENT.—The 
Secretary
shall establish standards and procedures gov-
erning the imposition of civil money penalties
under this section. These standards and proce-
dures shall provide for the Secretary to make
the determination to impose the penalty or to
use an administrative entity (such as the Mort-
gagee Review Board, established pursuant to
section 202(c) of the National Housing Act) to
make the determination; shall provide for the
imposition of a penalty only after the lending
institution has been given an opportunity for a
hearing on the record; and may provide for re-
view by the Secretary of a determination or
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order, or interlocutory ruling, arising from a
hearing.
‘‘(B) FINAL ORDERS.—If no hearing is re-
quested within 15 days of receipt of the notice
of opportunity for hearing, the imposition of the
penalty 
shall 
constitute 
a 
final 
and
unappealable determination. If the Secretary re-
views the determination or order, the Secretary
may affirm, modify, or reverse that determina-
tion or order. If the Secretary does not review
the determination or order within 90 days of
the issuance of the determination or order, the
determination or order shall be final.
‘‘(C) FACTORS IN DETERMINING AMOUNT
OF PENALTY.—In determining the amount of a
penalty under this subsection, consideration
shall be given to such factors as the gravity of
the offense, any history of prior offenses, ability
to pay the penalty, deterrence of future viola-
tions, and such other factors as the Secretary
may determine to be appropriate.
‘‘(D) REVIEWABILITY OF IMPOSITION OF
PENALTY.—The Secretary’s determination or
order imposing a penalty under this subsection
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shall not be subject to review, except as pro-
vided in this subsection.
‘‘(6) JUDICIAL
REVIEW
OF
AGENCY
DETER-
MINATION.—
‘‘(A) IN GENERAL.—After exhausting all
administrative remedies established by the Sec-
retary under this subsection, a lending institu-
tion against whom the Secretary has imposed a
civil money penalty under this subsection may
obtain a review of the penalty as may be ad-
dressed in the notice of determination to impose
a penalty in the appropriate court of appeals of
the United States, by filing in such court, with-
in 20 days after the entry of such order or de-
termination, a written petition praying that the
Secretary’s determination or order be modified
or set aside in whole or in part.
‘‘(B) OBJECTIONS NOT RAISED IN HEAR-
ING.—The court shall not consider any objec-
tion that was not raised in the hearing con-
ducted pursuant to this subsection unless a
demonstration is made of extraordinary cir-
cumstances causing the failure to raise the ob-
jection. If any party demonstrates to the satis-
faction of the court that additional evidence not
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presented at the hearing is material and that
there were reasonable grounds for the failure to
present such evidence at the hearing, the court
shall remand the matter to the Secretary for
consideration of the additional evidence.
‘‘(C) SCOPE OF REVIEW.—The decisions,
findings, and determinations of the Secretary
shall be reviewed pursuant to section 706 of
title 5, United States Code.
‘‘(D) ORDER TO PAY PENALTY.—Notwith-
standing any other provided of law, in any such
review, the court shall have the power to order
payment of the penalty imposed by the Sec-
retary.
‘‘(7) ACTION TO COLLECT PENALTY.—If a lend-
ing institution fails to comply with the Secretary’s
determination or order imposing a civil money pen-
alty under this subsection, after the determination
or order is no longer subject to review as provided
by this subsection, the Secretary may bring an ac-
tion in an appropriate United States district court to
obtain a monetary judgment against the lending in-
stitution. In such an action, the validity and appro-
priateness of the Secretary’s determination or order
imposing the penalty shall not be subject to review.
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The monetary judgment may, in the court’s discre-
tion, include the attorneys fees and other expenses
incurred by the United States in connection with the
action.
‘‘(8) SETTLEMENT BY SECRETARY.—The Sec-
retary may compromise, modify, or remit any civil
money penalty which may be imposed under this
subsection.
‘‘(9) REGULATIONS.—The Secretary shall issue
such regulations as the Secretary deems appropriate
to implement this subsection.
‘‘(10) DEPOSIT OF PENALTIES IN U.S. TREAS-
URY.—All civil money penalties collected under this
subsection shall be deposited in the Miscellaneous
Receipts Account of the Treasury.’’.
TITLE VII—COMMUNITY DEVELOPMENT AND
EMPOWERMENT
Subtitle A—Neighborhood Leveraged Investments for
Tomorrow (LIFT) Program Authorization
SEC. 701. (a) PROGRAM AUTHORIZATION.—The Sec-
retary is authorized to make grants in accordance with
the provisions of this subtitle to States, units of general
local government, Indian tribes, and community-based
non-profit organizations for the purpose of stimulating
public and private investment in the community-building
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enterprises that provide essential services to disadvan-
taged communities, spur new investment and development
in nearby areas, and create jobs for neighborhood resi-
dents.
(b) FUNDING AUTHORIZATION.—
(1) IN GENERAL.—There are authorized to be
appropriated 
for 
purposes 
of 
this 
subtitle
$200,000,000 for fiscal year 1995 and such sums as
may be necessary for fiscal year 1996. Any amount
appropriated shall remain available until expended.
(2) ALLOCATION OF FUNDS.—
(A) Of the amounts appropriated under
paragraph (1) for any fiscal year, the Secretary
shall set aside such amounts as the Secretary
deems appropriate to carry out the training, in-
formation, and technical assistance activities re-
ferred to in section 707.
(B) Of the amounts remaining each fiscal
year after amounts are set aside under subpara-
graph (A)—
(i) 75 percent shall be available for
neighborhood revitalization grants under
section 704; and
(ii) 25 percent shall be available for
project-based grants under section 705.
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ELIGIBLE NEIGHBORHOODS
SEC. 702. (a) INDICIA OF NEED.—Grants under this
subtitle may only be used in neighborhoods that meet such
criteria of need as the Secretary shall prescribe. These cri-
teria may include—
(1) concentrations of persons of low and mod-
erate income in census tracts in the neighborhood;
(2) poverty rates in the neighborhood;
(3) rates of unemployment in the neighborhood;
and
(4) such other indicia of economic need as the
Secretary deems appropriate.
(b) LIMITATION.—Eligible neighborhoods under this
section shall be located outside central business districts,
as determined by the Secretary, except that the Secretary
may waive this requirement, if the Secretary determines
that a successful neighborhood revitalization strategy is
contingent upon the simultaneous revitalization of such a
district.
ELIGIBLE ACTIVITIES
SEC. 703. Grants under this subtitle may be used to
carry out activities to further the comprehensive physical
and economic revitalization of eligible neighborhoods, in-
cluding (but not limited to) activities such as the construc-
tion, rehabilitation, or financing of—
(1) retail and service facilities;
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(2) mixed-use projects;
(3) projects that link economic development and
housing;
(4) community centers; and
(5) community-based business expansions.
Grantees may provide assistance under this subtitle
through grants, loans, credit enhancements, or other ap-
propriate mechanisms.
GRANTS FOR NEIGHBORHOOD REVITALIZATION PROJECTS
SEC. 704. (a) IN GENERAL.—Of amounts allocated
under section 701(b)(2)(B)(i), the Secretary shall make
grants for the purpose of assisting the development and
implementation of neighborhood revitalization projects in
eligible neighborhoods, which may include projects in
which grantees participate as developers or joint-venture
partners with for-profit entities.
(b) SELECTION PROCESS.—
(1) IN GENERAL.—The Secretary shall select
grantees under this section on a non-competitive
basis, through negotiation with the grantee.
(2) 
SELECTION
CRITERIA.—In 
selecting
projects, the Secretary shall consider the extent to
which the assisted activities will—
(A) provide essential goods and services to
residents of the neighborhood;
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(B) generate jobs for residents of the
neighborhood, especially for residents who are
chronically unemployed or receive welfare;
(C) be an essential element of, and catalyst
for, the comprehensive physical and economic
revitalization of the neighborhood;
(D) build the economic base of the neigh-
borhood through such measures as business ex-
pansion, and job opportunities and meaningful
reinvestment of a share of the profits of a suc-
cessful project in the neighborhood, including
economically empowering neighborhood resi-
dents to carry out additional neighborhood de-
velopment projects;
(E) leverage public and private investment
(other than assistance under this subtitle) in
the physical and economic revitalization of the
neighborhood and in the activities proposed to
be assisted; and
(F) meet such other factors as the Sec-
retary deems appropriate to carry out the objec-
tives of this section.
(c) AUTHORITY
OF
SECRETARY.—The Secretary
shall prescribe such requirements for the making of grants
under this section as the Secretary deems appropriate.
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COMPETITIVE GRANTS FOR PROJECT-BASED GRANTS
SEC. 705. (a) IN GENERAL.—Of amounts allocated
under section 701(b)(2)(B)(ii), the Secretary shall make
grants for the purpose of facilitating private and public
sector investment in economic revitalization projects in eli-
gible neighborhoods.
(b) APPLICATIONS.—
(1) FORM
AND
PROCEDURE.—An application
for a grant under this section shall be submitted in
such form and in accordance with such procedures
as the Secretary shall prescribe.
(2) MINIMUM REQUIREMENTS—An application
shall at a minimum—
(A) request a grant under this section,
specifying the amount of the grant requested
and its proposed uses;
(B) demonstrate that the neighborhood in
which the proposed activities are to be carried
out is an eligible neighborhood under section
702;
(C) describe the applicant’s comprehensive
strategy for the physical and economic revital-
ization of the neighborhood;
(D) demonstrate that the proposed activi-
ties are an integral part of this strategy;
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(E) demonstrate that the proposed project
is consistent with, and an integral part of, the
relevant housing and community development
plans of the State or unit of general local gov-
ernment; and
(F) contain a certification that the appli-
cant will comply with the requirements of the
Fair Housing Act, title VI of the Civil Rights
Act of 1964, section 504 of the Rehabilitation
Act of 1973, and the Age Discrimination Act of
1975, and will affirmatively further fair hous-
ing.
(c) SELECTION CRITERIA.—The Secretary shall es-
tablish selection criteria for awarding grants under this
section. These criteria shall consider the extent to which
the assisted activities—
(1) generate jobs for residents of the neighbor-
hood, especially for residents who are chronically un-
employed or receive welfare;
(2) build the economic base of the neighborhood
through such measures as business expansion, and
job opportunities and meaningful reinvestment of a
share of the profits of a successful project in the
neighborhood, including economically empowering
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neighborhood residents to carry out additional neigh-
borhood development projects;
(3) are sponsored by for-profit or non-profit de-
velopment partnerships with a proven record of suc-
cess;
(4) build upon and expand the capacity of local
institutions to carry out neighborhood revitalization;
(5) are an integral part of the housing and
community development plans of the appropriate
governmental jurisdiction; and
(6) meet such other factors as the Secretary
deems appropriate to carry out the objectives of this
section.
(d) GRANT LIMITATIONS.—
(1) NEED FOR GRANT.—A grant may be made
under this section only if the Secretary determines
that the grantee has made efforts to complete the
project without a grant under this section, but can-
not do so consistent with the timely execution of the
project without the grant.
(2) NUMBER OF APPLICATIONS.—The Secretary
shall establish limits on the number of applications
submitted by individual grantees within any unit of
general local government, State, or Indian tribe for
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each announcement of funding availability that is
published in the Federal Register.
(3) GRANT CAP.—The Secretary shall establish
aggregate limits on the grant amounts that may be
made available to individual grantees within a unit
of general local government, State, or Indian tribe
for each announcement of funding availability that is
published in the Federal Register.
(e) AUTHORITY
OF
SECRETARY.—The Secretary
shall prescribe such requirements for the making of grants
under this section as the Secretary deems appropriate.
RECORDS, REPORTS, AND AUDITS
SEC. 706. (a) KEEPING OF RECORDS.—Each grantee
shall keep such records as may be reasonably necessary
to disclose the amounts and the disposition of grant
amounts received under this subtitle and to ensure compli-
ance with the requirements of this subtitle.
(b) GRANTEE REPORTS.—Each grantee shall submit
to the Secretary a report, or series of reports, in a form
and at a time specified by the Secretary. Each report
shall—
(1) describe the use of funds made available
under this subtitle; and
(2) describe and analyze the effect of assisted
activities in addressing the objectives of this subtitle.
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(c) ACCESS TO DOCUMENTS BY THE SECRETARY.—
The Secretary shall have access for the purpose of audit
and examination to any books, documents, papers, and
records of the grantee that are pertinent to assistance re-
ceived in connection with, and the requirements of, this
subtitle.
(d) ACCESS TO DOCUMENTS BY THE COMPTROLLER
GENERAL.—The Comptroller General of the United
States, or any of the duly authorized representatives of
the Comptroller General, shall have access for the purpose
of audit and examination to any books, documents, papers,
and records of the grantee that are pertinent to assistance
received under, and the requirements of, this subtitle.
TRAINING AND INFORMATION ACTIVITIES
SEC. 707. From amounts set aside under section
701(b)(1), the Secretary shall carry out, directly or
through contracts, training, information, and technical as-
sistance activities with respect to the programs authorized
by this subtitle.
DEFINITIONS
SEC. 708. As used in this subtitle:
(1) The term ‘‘Indian tribe’’ has the meaning
given such term in section 102(a)(17) of the Hous-
ing and Community Development Act of 1974.
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(2) The term ‘‘neighborhood’’ means an area
consisting of such geographic and other characteris-
tics as the Secretary may prescribe.
(3) 
The 
term 
‘‘nonprofit’’ 
organization’’
means—
(A) an organization—
(i) that is described in section 501(c)
of the Internal Revenue Act of 1986; and
(ii) is exempt from taxation under
section 501(a) of such Code; or
(B) an organization—
(i) no part of the net earnings of
which inures to the benefit of any member,
founder, contributor, or individual;
(ii) that in the case of a private non-
profit organization, has a voluntary board;
(iii) that has an accounting system, or
has designated a fiscal agent in accordance
with requirements established by the Sec-
retary; and
(iv) that practices nondiscrimination
in the provision of assistance.
(4) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
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(5) The term ‘‘State’’ has the meaning given
the term in section 102(a)(2) of the Housing and
Community Development Act of 1974.
(6) The term ‘‘unit of general local govern-
ment’’ means—
(A) a city, town, township, county, parish,
village, or other general purpose political sub-
division of a State;
(B) the District of Columbia; and
(C) any agency or instrumentality thereof
that is established pursuant to legislation and
designated by the chief executive to act on be-
half of the jurisdiction with regard to provisions
of this subtitle.
The term includes a consortium of geographically
contiguous units of general local government, if the
Secretary determines that the consortium—
(i) has sufficient authority and administra-
tive capability to carry out the purposes of this
subtitle on behalf of its member jurisdictions;
and
(ii) meets such other requirements as the
Secretary may prescribe.
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Subtitle B—Community Viability Fund
PROGRAM AUTHORIZATION
SEC. 771. Section 123 of the Housing and Urban-
Rural Recovery Act of 1983 is amended to read as follows:
‘‘COMMUNITY VIABILITY FUND
‘‘SEC. 123. (a) AUTHORIZATION.—
‘‘(1) PROGRAM AUTHORITY.—The Secretary is
authorized, in accordance with the provisions of this
section—
‘‘(A) to make grants for strategic planning
and urban design, as provided in subsection (b);
‘‘(B) to make grants for community insti-
tution building and neighborhood development,
as provided in section (c); and
‘‘(C) to provide analysis, information dis-
semination, travel, technical assistance, and rec-
ognition awards, as provided in section (d).
‘‘(2) FUNDING AUTHORITY.—
‘‘(A) IN GENERAL.—There are authorized
to be appropriated for purposes of this section
$130,000,000 for fiscal year 1995 and such
sums as may be necessary for fiscal year 1996.
Any amounts appropriated shall remain avail-
able until expended.
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‘‘(B) OVERALL ALLOCATION OF FUNDS.—
Of the amounts appropriated under paragraph
(2) for each such year—
‘‘(i) not to exceed $30,000,000 shall
be available for grants for strategic plan-
ning and urban design under subsection
(b);
‘‘(ii) not to exceed $100,000,000 shall
be available for grants for community in-
stitution building and neighborhood devel-
opment under subsection (c); and
‘‘(iii) not to exceed $10,000,000 shall
be available for analysis, information dis-
semination, travel, technical assistance,
and recognition awards under subsection
(d).
‘‘(b) GRANTS
FOR
STRATEGIC
PLANNING
AND
URBAN DESIGN.—
‘‘(1) IN
GENERAL.—From amounts set aside
under subsection (a)(2)(B)(i), the Secretary is au-
thorized to make grants in furtherance of the objec-
tives of this subsection to States; units of general
local government; and metropolitan, non-metropoli-
tan, and regional planning agencies.
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‘‘(2) CATEGORIES
OF
ACTIVITIES.—The Sec-
retary is authorized to allocate amounts available
under this subsection for the following categories of
activities:
‘‘(A) Urban design and the development of
public amenities in lower income neighborhoods
that serve as a catalyst for the renewal of the
neighborhood.
‘‘(B) Development and implentation of
comprehensive plans that focus on local and
metropolitan stategies which create sustainable
community development at the neighborhood,
city, and metropolitan level.
‘‘(C) Expanding economic opportunities for
persons of low and moderate income through
areawide planning approaches that provide edu-
cational and employment opportunities for such
persons.
‘‘(D) Coordinated efforts that stimulate
fair housing, further the deconcentration of the
poor and minorities, reduce the isolation of in-
come groups within communities, remove bar-
riers to affordable housing development, and ex-
pand housing opportunities for persons of low
and moderate income.
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‘‘(E) The conservation of important his-
toric, visual, and cultural features.
‘‘(F) The development and implementation
of comprehensive approaches that integrate
poorer, inner-city neighborhoods into the great-
er metropolitan region.
‘‘(G) Such other categories as the Sec-
retary determines will further the purposes of
this subsection.
‘‘(3) ALLOCATION OF FUNDS.—From amounts
available under this subsection for any fiscal year,
the Secretary shall use—
‘‘(A) 75 percent for competitive grants
under paragraph (4); and
‘‘(B) 25 percent for non-competitive grants
under paragraph (5).
‘‘(4) COMPETITIVE
GRANTS.—An application
for a competitive grant under this subsection shall
contain such information, and be submitted by an
applicant in such form and in accordance with such
procedures, as the Secretary shall prescribe.
‘‘(5) NON-COMPETITIVE
GRANTS.—The Sec-
retary shall select grantees for non-competitive
grants under this subsection through negotiation
with the grantee.
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‘‘(6) SELECTION
CRITERIA.—The Secretary
shall establish selection criteria for grants under
paragraphs (4) and (5). The criteria shall include
factors such as the extent to which the activities pro-
posed for assistance—
‘‘(A) involve interagency and intergovern-
mental coordination of Federal, State, and local
public, private, and nonprivate resources in an
integrated manner;
‘‘(B) represent an innovative approach to
furthering the objectives of this section; and
‘‘(C) are part of an overall strategic revi-
talization plan.
‘‘(7) AUTHORITY
OF
SECRETARY.—The Sec-
retary shall prescribe such additional requirements
for the making of grants under this subsection as
the Secretary deems appropriate.
‘‘(c) GRANTS FOR COMMUNITY INSTITUTION BUILD-
ING AND NEIGHBORHOOD DEVELOPMENT.—
‘‘(1) IN
GENERAL.—From amounts set aside
under subsection (a)(2)(B)(ii), the Secretary is au-
thorized to make grants to eligible neighborhood de-
velopment organizations, nonprofit organizations,
and entities that assist such organizations in carry-
ing out activities under this section, to provide train-
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ing and other forms of capacity building assistance
to improve and expand the ability of community and
neighborhood organizations to carry out housing and
development programs, and to carry out neighbor-
hood development activities, including those specified
in paragraphs (3) (B) through (F).
‘‘(2) ALLOCATION OF FUNDS.—From amounts
available under this subsection for any fiscal year,
the Secretary shall use—
‘‘(A) 75 percent for competitive grants
under paragraph (4); and
‘‘(B) 25 percent for non-competitive grants
under paragraph (5).
‘‘(3) ELIGIBLE ACTIVITIES.—Activities eligible
for assistance under this subsection include—
‘‘(A) training, technical assistance, and ca-
pacity building for new and existing organiza-
tions and institutions;
‘‘(B) building the capacity of neighborhood
organizations and institutions, such as Commu-
nity Development Corporations, community
banks, and credit unions;
‘‘(C) establishing new community-based or-
ganizations and institutions;
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‘‘(D) promoting joint ventures that expand
housing, educational, and employment choices
for inner city residents;
‘‘(E) creating permanent jobs available to
persons of low and moderate income and unem-
ployed populations;
‘‘(F) establishing or expanding business
opportunities within low- and moderate-income
neighborhoods;
‘‘(G) developing, rehabilitating, or manag-
ing neighborhood housing stock;
‘‘(H) developing delivery mechanisms for
essential services that have lasting benefit to
the community and neighborhood;
‘‘(I) planning, promoting, or financing vol-
untary neighborhood improvement efforts; and
‘‘(J) such other activities that the Sec-
retary determines further the purposes of this
subsection.
‘‘(4) COMPETITIVE
GRANTS.—An application
for a competitive grant under this subsection shall
contain such information, and be submitted by an
applicant in such form and in accordance with such
procedures, as the Secretary shall prescribe.
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‘‘(5) NON-COMPETITIVE
GRANTS.—The Sec-
retary shall select grantees for non-competitive
grants under this subsection through negotiation
with the grantee.
‘‘(6) SELECTION
CRITERIA.—The Secretary
shall establish selection criteria for grants under
paragraphs (4) and (5). The criteria shall include
the extent to which the proposed activities will—
‘‘(A) develop new community and neigh-
borhood groups in previously unorganized areas
for groups that do not yet have the track record
necessary to secure project-based funding;
‘‘(B) develop new organizations that link
housing, economic, and human development;
‘‘(C) coordinate with local law enforcement
agencies or local public housing agencies involv-
ing anti-crime initiatives;
‘‘(D) leverage matching contributions to
support a wide variety of community develop-
ment initiatives from the private sector; founda-
tions; colleges and universities; civic groups; so-
cial, cultural, religious, and other institutions;
and the national service program in a manner
that achieves greater long-term private sector
support;
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‘‘(E) build the managerial, financial, and
administrative capacity of the applicant organi-
zation or the community organizations to which
it proposes to provide services; and
‘‘(F) assist eligible neighborhood develop-
ment organizations.
‘‘(7) AUTHORITY
OF
SECRETARY.—The Sec-
retary shall prescribe such additional requirements
for the making of grants under this subsection as
the Secretary deems appropriate.
‘‘(d) RECOGNITION AWARDS.—
‘‘(1) IN
GENERAL.—From amounts set aside
under subsection (a)(2)(B)(iii), the Secretary is au-
thorized to provide awards recognizing excellence
and innovation in the preparation and implementa-
tion of community-wide and regional strategies or
activities that successfully further sustainable com-
munity development by—
‘‘(A) expanding fair housing opportunities;
‘‘(B) furthering economic revitalization;
‘‘(C) reducing economic isolation of income
groups within communities and the region;
‘‘(D) expanding housing, educational, and
employment choices for persons of low and
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moderate income throughout a metropolitan
area;
‘‘(E) providing amenities in lower income
neighborhoods that serve as a catalyst for and
result in the neighborhood’s revitalization; or
‘‘(F) such other means as the Secretary
deems appropriate.
‘‘(2) USE OF FUNDS.—The Secretary may use
amounts under this subsection—
‘‘(A) to provide grants to, or to enter into
contracts with, public and private organizations
(including governmental, nonprofit, and for-
profit organizations) to assist in the analysis
and selection of award recipients, the provision
(directly or by contract) of technical assistance,
and the dissemination of information used to
carry out the programs authorized under sub-
sections (b) and (c);
‘‘(B) to defray the costs of the Secretary
in administering the program authorized by this
subsection, including (but not limited to) such
costs as—
‘‘(i) printing and disseminating infor-
mation;
‘‘(ii) holding conferences;
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‘‘(iii) establishing and using design ju-
ries selected by the Secretary;
‘‘(iv) providing nominal awards to
winning nominees;
‘‘(v) holding competitions for awards,
including travel and per diem costs; and
‘‘(vi) travel of award winners to at-
tend follow-on conferences endorsed by the
Secretary and to provide peer-to-peer as-
sistance to other appropriate individuals
and entities; and
‘‘(C) to provide technical assistance, di-
rectly or by contract, to further the purposes of
this subsection.
‘‘(3) AUTHORITY
OF
SECRETARY.—The Sec-
retary shall prescribe such requirements for recogni-
tion awards under this subsection as the Secretary
deems appropriate.
‘‘(e) RECORDS, REPORTS, AND AUDITS.—
‘‘(1) KEEPING
OF
RECORDS.—Each grantee
under this section shall keep such records as may be
reasonably necessary to disclose the amounts and
the disposition of grant amounts received under this
section and to ensure compliance with the require-
ments of this section.
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‘‘(2) GRANTEE REPORTS.—Each such grantee
shall submit to the Secretary a report, or series of
reports, in a form and at a time specified by the
Secretary. Each report shall—
‘‘(A) describe the use of funds made avail-
able under this section; and
‘‘(B) describe and analyze the effect of as-
sisted activities in addressing the purposes of
this section.
‘‘(3) ACCESS
TO
DOCUMENTS
BY
THE
SEC-
RETARY.—The Secretary shall have access for the
purpose of audit and examination to any books, doc-
uments, papers, and records of the grantee that are
pertinent to assistance received in connection with,
and the requirements of, this section.
‘‘(4) ACCESS
TO
DOCUMENT
BY
THE
COMP-
TROLLER
GENERAL.—The Comptroller General of
the United States, or any of the duly authorized rep-
resentatives of the Comptroller General, shall have
access for the purpose of audit and examination to
any books, documents, papers, and records of the
grantee that are pertinent to assistance received
under, and the requirements of, this section.
‘‘(f) DEFINITIONS.—As used in this section:
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‘‘(1) For purposes of subsection (c), the term
‘eligible neighborhood development organization’
means—
‘‘(A) an entity organized as a nonprofit or-
ganization incorporated under the laws of the
State in which it operates;
‘‘(B) an organization that is responsible to
residents of its neighborhood through a govern-
ing body, not less than 51 percent of the mem-
bers of which reside within the boundaries of
the area served;
‘‘(C) an organization that has conducted
business for at least one year before the date of
an application for a grant; and
‘‘(D) an organization that conducts neigh-
borhood development activities that have as
their primary beneficiaries persons of low and
moderate income.
‘‘(2) The term ‘nonprofit organization’ means—
‘‘(A) an organization—
‘‘(i) that is described in section 501(c)
of the Internal Revenue Act of 1986; and
‘‘(ii) is exempt from taxation under
section 501(a) of such Code; or
‘‘(B) an organization—
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‘‘(i) no part of the net earnings of
which inures to the benefit of any member,
founder, contributor, or individual;
‘‘(ii) that in the case of a private non-
profit organization, has a voluntary board;
‘‘(iii) that has an accounting system,
or has designated a fiscal agent in accord-
ance with requirements established by the
Secretary; and
‘‘(iv) that practices nondiscrimination
in the provision of assistance.
‘‘(3) The term ‘persons of low- and moderate-
income’ has the meaning given the term in section
102(a)(20) of the Housing and Community Develop-
ment Act of 1974.
‘‘(4) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.
‘‘(5) The term ‘State’ has the meaning given
the term in section 102(a)(2) of the Housing and
Community Development Act of 1974.
‘‘(6) The term ‘unit of general local govern-
ment’ means—
‘‘(A) a city, town, township, county, parish,
village, or other general purpose political sub-
division of a State;
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‘‘(B) the District of Columbia; and
‘‘(C) any agency or instrumentality thereof
that is established pursuant to legislation and
designated by the chief executive to act on be-
half of the jurisdiction with regard to provisions
of this section.
The term includes a consortium of geographically
contiguous units of general local government, if the
Secretary determines that the consortium—
‘‘(i) has sufficient authority and adminis-
trative capability to carry out the purposes of
this section on behalf of its member jurisdic-
tions; and
‘‘(ii) meets such other requirements as the
Secretary may prescribe.’’.
SAVINGS PROVISION
SEC. 712. (a) PREVIOUS GRANTS.—Any grant ap-
proved under section 123 before the effective date of this
section shall continue to be governed by the provisions of
section 123.
(b) EFFECTIVE DATE.—This section shall become ef-
fective on the later of October 1, 1994 or the date of en-
actment of this Act.
Subtitle C—Colonias Assistance Program Authorization
SEC. 721. (a) PROGRAM AUTHORIZATION.—The Sec-
retary is authorized to make grants in accordance with
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the provisions of this subtitle to units of general local gov-
ernment, States, non-profit organizations, or entities or
instrumentalities established under the authority of any
of these entities, for use in addressing the community de-
velopment and housing needs of colonias.
(b) FUNDING AUTHORIZATION.—
(1) IN GENERAL.—There are authorized to be
appropriated 
for 
purposes 
of 
this 
subtitle
$100,000,000 for each of fiscal years 1995 and
1996. Any amount appropriated shall remain avail-
able until expended.
(2) ALLOCATION OF FUNDS.—Of the amounts
appropriated under paragraph (1) for any fiscal
year—
(A) 80 percent shall be available for grants to
establish model programs under section 723; and
(B) 20 percent shall be available for competitive
grants under section 724.
ELIGIBLE ACTIVITIES
SEC. 722. Assistance under this subtitle may be used
to carry out the following activities:
(1) Any activity eligible under section 105 of
the Housing and Community Development Act of
1974 or section 212(a) of the HOME Investment
Partnerships Act.
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(2) Refinancing the existing debt of home-
owners to convert existing ownership regimes into
mortgages.
(3) The construction of new housing, including
self-help, energy-efficient, and innovative housing de-
sign initiatives.
(4) The development of new subdivisions for af-
fordable housing.
(5) The re-platting and redevelopment of exist-
ing subdivisions.
(6) The planning for, and construction of, in-
frastructure necessary for the development of hous-
ing, economic development, and community facilities
and amenities.
(7) Such other activities as the Secretary deems
appropriate to further the purposes of this subtitle.
MODEL PROGRAMS
SEC. 723. (a) IN GENERAL.—Of amounts allocated
under section 721(b)(2)(A), the Secretary shall make
grants to the entities referred to in section 721(a) for the
purpose of establishing model programs of assistance for
addressing the community development, housing, and
other needs of the residents of the colonias.
(b) SELECTION OF GRANTEES.—
(1) GEOGRAPHIC
DISTRIBUTION.—The Sec-
retary shall designate—
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(A) at least one project in each State; and
(B) at least one project within a metropoli-
tan area in any State.
(2) SELECTION PROCESS.—
(A) IN GENERAL.—The Secretary shall se-
lect grantees under this section on a non-com-
petitive basis, through negotiation with the
grantee.
(B) SELECTION
CRITERIA.—In selecting
projects, the Secretary shall consider—
(i) the extent of need in the colonia;
(ii) the likely effectiveness of the pro-
posed approach in addressing identified
needs;
(iii) the extent to which funding for
the project is committed from sources
other than under this subtitle;
(iv) the need to consider a variety of
solutions to a variety of needs situations;
and
(v) such other factors as the Secretary
deems appropriate to carry out the objec-
tives of this subtitle.
COMPETITIVE GRANTS
SEC. 724. (a) FUNDING SET-ASIDE.—
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(1) IN GENERAL.—Of amounts allocated under
section 721(b)(2)(B), the Secretary shall set aside a
target amount for grants under this section for use
in colonias in each State. The Secretary shall deter-
mine the amount be set aside, based on such objec-
tive factors of need as the Secretary deems appro-
priate, which may include rates of poverty in, and
the population of, colonias. The Secretary shall re-
allocate any amounts set-aside under this paragraph
for which the Secretary determines there will not be
sufficient approvable applications in a fiscal year.
(2) USE OF FUNDS.—Any amount not set aside
or reallocated under paragraph (1) may be used in
colonias in any State.
(b) AUTHORITY TO MAKE GRANTS.—Grants under
this section shall be made, in accordance with subsection
(a), to the entities referred to in section 721(a), for the
purpose of assisting the community development and
housing needs of the residents of one or more colonias in
an area or region.
(c) APPLICATIONS.—Applications under this section
shall contain such information, and shall be submitted at
such time and in accordance with such procedures, as the
Secretary shall prescribe.
(d) SELECTION OF GRANTEES.—
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(1) IN GENERAL.—The Secretary shall select
grantees under this section on the basis of a com-
petition, following publication of a notice of funding
availability in the Federal Register.
(2) 
SELECTION
CRITERIA.—In 
selecting
projects, the Secretary shall consider—
(A) the extent of need in the colonia;
(B) the likely effectiveness of the proposed
approach in addressing identified needs;
(C) the extent to which funding for the
project is committed from sources other than
under this subtitle;
(D) the extent to which the application
represents an innovative approach to addressing
the needs of colonias; and
(E) such other factors as the Secretary
deems appropriate to carry out the objectives of
this subtitle.
RECORDS, REPORTS, AND AUDITS
SEC. 725. (a) KEEPING OF RECORDS.—Each grantee
shall keep such records as may be reasonably necessary
to disclose the amounts and the disposition of grant
amounts received under this subtitle and to ensure compli-
ance with the requirements of this subtitle.
(b) GRANTEE REPORTS.—Each grantee shall submit
to the Secretary a report, or series of reports, in a form
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and at a time specified by the Secretary. Each report
shall—
(1) describe the use of funds made available
under this subtitle; and
(2) describe and analyze the effect of assisted
activities in addressing the community development
and housing needs of the residents of colonias.
(c) ACCESS TO DOCUMENTS BY THE SECRETARY.—
The Secretary shall have access for the purpose of audit
and examination to any books, documents, papers, and
records of the grantee that are pertinent to assistance re-
ceived in connection with, and the requirements of, this
subtitle.
(d) ACCESS TO DOCUMENTS BY THE COMPTROLLER
GENERAL.—The Comptroller General of the United
States, or any of the duly authorized representatives of
the Comptroller General, shall have access for the purpose
of audit and examination to any books, documents, papers,
and records of the grantee that are pertinent to assistance
received under, and the requirements of, this subtitle.
DEFINITIONS
SEC. 726. As used in this subtitle:
(1) The terms ‘‘colonia’’ and ‘‘United States-
Mexico Border Region’’ have the meanings given
those terms in sections 916(e)(1) and (4), respec-
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tively, of the Cranston-Gonzalez National Affordable
Housing Act.
(2) The term ‘‘metropolitan area’’ has the
meaning given the term in section 102(a)(3) of the
Housing and Community Development Act of 1974.
(3) The term ‘‘nonprofit organization’’ means—
(A) an organization—
(i) that is described in section 501(c)
of the Internal Revenue Act of 1986; and
(ii) is exempt from taxation under
section 501(a) of such Code; or
(B) an organization—
(i) no part of the net earnings of
which inures to the benefit of any member,
founder, contributor, or individual;
(ii) that in the case of a private non-
profit organization, has a voluntary board;
(iii) that has an accounting system, or
has designated a fiscal agent in accordance
with requirements established by the Sec-
retary; and
(iv) that practices nondiscrimination
in the provision of assistance.
(4) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
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(5) The term ‘‘State’’ means the States of Cali-
fornia, Arizona, New Mexico, and Texas.
(6) The term ‘‘unit of general local govern-
ment’’ means—
(A) a city, town, township, county, parish,
village, or other general purpose political sub-
division of a State;
(B) the District of Columbia; and
(C) any agency or instrumentality thereof
that is established pursuant to legislation and
designated by the chief executive to act on be-
half of the jurisdiction with regard to provisions
of this subtitle.
The term includes a consortium of geographically
contiguous units of general local government, if the
Secretary determines that the consortium—
(i) has sufficient authority and administra-
tive capability to carry out the purposes of this
subtitle on behalf of its member jurisdictions;
and
(ii) meets such other requirements as the
Secretary may prescribe.
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EXTENSION OF COLONIAL PROGRAM UNDER SECTION 916
OF THE CRANSTON-GONZALEZ NATIONAL AFFORD-
ABLE HOUSING ACT
SEC. 727. Section 916(f) of the Cranston-Gonzalez
National Affordable Housing Act is amended by striking
‘‘1991’’ and all that follows up to the period and inserting
in lieu thereof the following: ‘‘beginning before fiscal year
1998’’.
Subtitle D—Zone Economic Development Initiative
Authorization
SEC. 731. The Secretary of Housing and Urban De-
velopment may make grants to units of general local gov-
ernment in which Empowerment Zones and Enterprise
Communities have been designated pursuant to section
1391 of the Internal Revenue Code of 1986.
PURPOSE
SEC. 732. The purpose of grants under this subtitle
is to assist units of general local government in imple-
menting the strategic plan for community revitalization re-
quired for each designated Zone and Community by ex-
panding business opportunities and job creation and by
stimulating the use of project-based rental assistance cer-
tificates and other activities to construct or rehabilitate
rental housing.
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ELIGIBLE ACTIVITIES
SEC. 733. (a) ECONOMIC DEVELOPMENT.—Economic
development activities are those that are eligible under
title I of the Housing and Community Development Act
of 1974.
(b) ASSISTED HOUSING.—Eligible assisted housing
activities include but are not limited to—
(1) project-based assistance activities eligible
under section 8 of the United States Housing Act of
1937 or similar State and local programs; and
(2) activities eligible for assistance under the
HOME program or a similar local affordable hous-
ing program.
(c) TECHNICAL ASSISTANCE.—From amounts set
aside under section 737(b), the Secretary shall carry out,
directly or through contracts, training and information ac-
tivities in connection with the program authorized by this
subtitle.
ALLOCATION OF FUNDS
SEC. 734. (a) APPLICATION.—A locality in which an
empowerment zone or enterprise community has been des-
ignated, where the designation remains in effect, may sub-
mit an application to the Secretary for a grant under this
subtitle. The application shall contain such information
and certifications as the Secretary may require, including
a certification that the grant will be used in accordance
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with the approved strategic plan. Where a zone or commu-
nity is within the jurisdiction of more than one unit of
general local government, each shall join in the applica-
tion. The application shall specify whether, and if so how,
the grant is to be divided among one or more governments.
(b) FUNDING.—For applications approved by the
Secretary—
(1) each urban Empowerment Zone shall re-
ceive $50,000,000;
(2) each rural Empowerment Zone shall receive
$20,000,000; and
(3) each Enterprise Community shall receive
$1,400,000.
(c) TERMS AND CONDITIONS.—Grants made under
this subtitle shall be subject to such terms and conditions
as the Secretary may establish.
USE IN CONJUNCTION WITH LOAN GUARANTEES
SEC. 735. Grants made under this subtitle may be
used in conjunction with loans guaranteed under section
108 of the Housing and Community Development Act of
1974 and section 227 of the Home Investment Partner-
ships Act.
RECORDS, REPORTS, AND AUDITS
SEC. 736. (a) KEEPING OF RECORDS.—Each grantee
shall keep such records as may be reasonably necessary
to disclose the amounts and the disposition of grant
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amounts received under this subtitle and to ensure compli-
ance with the requirements of this subtitle.
(b) GRANTEE REPORTS.—Each grantee shall submit
to the Secretary a report, or series of reports, in a form
and at a time specified by the Secretary. Each report
shall—
(1) describe the use of funds made available
under this subtitle; and
(2) describe and analyze the effect of assisted
activities in addressing the objectives of this subtitle.
(c) ACCESS TO DOCUMENTS BY THE SECRETARY.—
The Secretary shall have access for the purpose of audit
and examination to any books, documents, papers, and
records of the grantee that are pertinent to assistance re-
ceived in connection with, and the requirements of, this
subtitle.
(d) ACCESS TO DOCUMENT BY THE COMPTROLLER
GENERAL.—The Comptroller General of the United
States, or any of the duly authorized representatives of
the Comptroller General, shall have access for the purpose
of audit and examination to any books, documents, papers,
and records of the grantee that are pertinent to assistance
received under, and the requirements of, this subtitle.
FUNDING AUTHORIZATION
SEC. 737. (a) There are authorized to be appro-
priated for purposes of this subtitle $500,000,000 for fis-
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cal year 1995 and such sums as may be necessary for fis-
cal year 1996. Any amount appropriated shall remain
available until expended.
(b) Of the amounts appropriated under subsection (a)
for any fiscal year and not allocated under section 734(b),
the Secretary shall set aside any balance to carry out the
training and information activities referred to in section
733(c).
Subtitle E—Authorizations of Appropriations Capacity
Building for Community Development and Afford-
able Housing
SEC. 741. Section 4(e) of the HUD Demonstration
Act of 1993 (43 U.S.C. 9816 note) is amended to read
as follows:
‘‘(e) AUTHORIZATION.—There are authorized to be
appropriated $20,000,000 for fiscal year 1995 and such
sums as may be necessary for fiscal year 1996, to carry
out this section.’’.
COMMUNITY DEVELOPMENT BLOCK GRANTS
SEC. 742. (a) COMMUNITY DEVELOPMENT BLOCK
GRANTS.—The second sentence of section 103 of the
Housing and Community Development Act of 1974 (42
U.S.C. 5303) is amended to read as follows: ‘‘For pur-
poses of assistance under section 106, there are authorized
to be appropriated $4,400,000,000 for fiscal year 1995
and $4,400,000,000 for fiscal year 1996.’’.
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(b) LIMITATION ON LOAN GUARANTEES.—The fifth
sentence of section 108(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5308(a)) is amended
to read as follows: ‘‘Notwithstanding any other provision
of law and subject only to the absence of qualified appli-
cants or proposed activities and to the authority provided
in this section, to the extent approved in appropriation
Acts, the Secretary shall enter into commitments to guar-
antee notes and obligations under this section with an ag-
gregate principal amount of $2,054,000,000 for fiscal year
1995 and $2,054,000,000 for fiscal year 1996.’’.
(c) SPECIAL PURPOSE GRANTS.—Section 107 of the
Housing and Community Development Act of 1974 (42
U.S.C. 5307(a)) is amended by striking out all that fol-
lows ‘‘the following purposes:’’ and inserting in lieu there-
of the following:
‘‘(A) $7,000,000 shall be available in each such
year for grants under subsection (b)(1);
‘‘(B) $6,500,000 shall be available in each such
year for grants under subsection (b)(3);
‘‘(C) $28,000,000 shall be available in each
such year for activities under subsection (b)(4);
‘‘(D) $6,000,000 shall be available in each such
year under subsection (b)(5);
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‘‘(E) $2,000,000 shall be available in each such
year for grants under subsection (b)(6);
‘‘(F) $3,000,000 shall be available in each such
year for grants under subsection (c); and
‘‘(G) such sums as may be necessary shall be
available in each such year for grants under para-
graph (2) of subsection (b).’’.
ECONOMIC DEVELOPMENT INITIATIVE
SEC. 743. Section 108(q)(1) of the Housing and
Community Development Act of 1974 (42 U.S.C. 5308)
is amended by adding to the end thereof the following sen-
tence: ‘‘There are authorized to be appropriated to carry
out this subsection $50,000,000 for fiscal year 1995 and
such sums as may be necessary for fiscal year 1996, to
remain available until expended.’’.
TITLE VIII—MANAGEMENT REFORM
Subtitle A—Improve the Allocation and Use of
Assistance
LIMIT SECTION 8 CONTRACT RENT ADJUSTMENTS FOR
RENTS ABOVE SECTION 8 EXISTING HOUSING FMRS
SEC. 801. (a) Section 8(c)(2)(A) of the United States
Housing Act of 1937 is amended by inserting at the end
the following: ‘‘However, where the maximum monthly
rent, for a unit in a new construction, substantial rehabili-
tation, or moderate rehabilitation project, to be adjusted
using an annual adjustment factor exceeds the fair market
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rental for an existing dwelling unit in the market area,
the Secretary shall adjust the rent only to the extent that
the owner demonstrates that the adjusted rent would not
exceed the rent for an unassisted unit of similar quality,
type, and age in the same market area, as determined by
the Secretary.’’.
(b) The amendment made by subsection (a) shall
apply to all contracts for new construction, substantial re-
habilitation, and moderate rehabilitation projects under
which rents are adjusted under section 8(c)(2)(A) of such
Act by applying an annual adjustment factor.
PROVIDE INCENTIVES TO REFINANCE HIGH INTEREST
MORTGAGES FOR SECTION 8 PROJECTS
SEC. 802. Section 8 of the United States Housing
Act of 1937 is amended by inserting the following new
subsection at the end:
‘‘(z) REFINANCING INCENTIVE.—For a project that
(1) was constructed, substantially rehabilitated, or mod-
erately rehabilitated under this section, (2) is subject to
an assistance contract under this section, and (3) was sub-
ject to a mortgage that has been refinanced under section
223(a)(7) or section 223(f) of the National Housing Act
to lower the periodic debt service payments of the owner,
the Secretary may pay the owner the amount of the
upfront costs to the owner of refinancing. The Secretary
may make such payments only from savings in the amount
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of assistance payments, as determined by the Secretary
on a project-by-project basis and after application of
amounts in accordance with section 1012 of the Stewart
B. McKinney Homeless Assistance Amendments Act of
1988, that result from the refinancing during the first
year after the refinancing.’’.
LMSA REFORMS
SEC. 803. (a) Section 8(v)(1) of the United States
Housing Act of 1937 is amended to read as follows:
‘‘(v)(1) In the case of a contract entered into under
this section for loan management assistance, the Secretary
may reduce the number of units covered by the contract
by one for each family that moves out of the project. This
paragraph shall not apply in the case of a contract for
loan management assistance entered into as an incentive
under the Emergency Low Income Housing Preservation
Act of 1987 or the Low-Income Housing Preservation and
Resident Homeownership Act of 1990.’’.
(b) The amendment made by subsection (a) shall
apply to all contracts for loan management assistance en-
tered into under section 8 of such Act.
REDUCE AAF FOR UNITS WHERE FAMILY HAS NOT
MOVED SINCE PREVIOUS YEAR
SEC. 804. (a) Section 8(c)(2)(A) of the United States
Housing Act of 1937, as amended by section 801 of this
Act, is further amended by inserting at the end the follow-
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ing: ‘‘For any unit occupied by the same family at the
time of the last annual rent adjustment, where the assist-
ance contract provides for the adjustment of the maximum
monthly rent by applying an annual adjustment factor and
where the rent for a unit is otherwise eligible for an ad-
justment based on the full amount of the factor, 0.01 shall
be subtracted from the amount of the factor, except that
the factor shall not be reduced to less than 1.0.’’.
(b) The amendment made by subsection (a) shall
apply to all contracts that are subject to section 8(c)(2)(A)
of such Act and that provide for rent adjustments using
an annual adjustment factor.
PREFERENCE FOR WORKING FAMILIES
SEC. 805. The United States Housing Act of 1937
is amended—
(1) in each of sections 6(c)(4)(A)(ii) and
8(d)(1)(A)(ii), by striking ‘‘and (V)’’ and inserting
in lieu thereof the following: ‘‘(V) assisting families
that include one or more adult members who are
employed; and (VI)’’; and
(2) in the penultimate sentence of section 16(c),
by striking ‘‘under the system’’ and all that follows
up to the period.
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USE OF TECHNICAL ASSISTANCE FUNDS BY OR FOR HUD
STAFF
SEC. 806. Section 7 of the Department of Housing
and Urban Development Act is amended by adding at the
end thereof a new subsection, as follows:
‘‘(r) The Secretary may transfer to any of the ac-
counts of the Department for salaries and expenses from
any other account from which funds may be drawn for
technical assistance such amounts as the Secretary deter-
mines are reasonable to reimburse such salaries and ex-
penses account. Such reimbursement shall be for expendi-
tures for the costs of personal services, travel, and trans-
portation, and other object classifications that are in-
curred for the technical assistance, training, and related
activities provided by or to officials and employees of the
Department for a program that is funded from such other
account and in which the costs of technical assistance are
otherwise eligible for expenditure. Up to 10 percent of the
amount that may transferred may be used for technical
assistance, training, travel, and related expenses provided
to officials and employees of the Department. The author-
ity to transfer provided in this subsection shall be in addi-
tion to any other authority to transfer funds among ac-
counts that the Secretary may now or hereafter have.’’.
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Subtitle B—Office Of Public and Indian Housing Over-
sight, Technical Assistance, Emergency Action Re-
sources, and Resident Survey for Public Housing
Programs
SEC. 811. (a) Section (3) of the United States Hous-
ing Act of 1937 is amended by adding to the end thereof
the following new subsection:
‘‘(d) As used in sections 5 and 14, the term ‘technical
assistance and services’ shall include (but not be limited
to) any or all undertakings by the Secretary, directly using
officials and employees of the Secretary, or indirectly
under contract or otherwise, related to the inspection or
oversight of project or program development or implemen-
tation; training and technical assistance; public housing
agency or Indian housing authority program, project, or
general management; crisis management and operations;
and survey research; and the preparation of reports or rec-
ommendations to the Secretary.’’.
(b) Section 5(c) of such Act is amended by adding
at the end thereof the following new paragraph:
‘‘(9) From amounts appropriated pursuant to
this Act and earmarked for public housing develop-
ment (including Indian housing development) up to
one-half of 1 per centum shall be made available to
the Secretary for technical assistance and services.’’.
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(c) Section 14(k)(1) of such Act is redesignated as
section 14(k)(1)(A), and amended by adding the following
new paragraph, after such redesignated subparagraph, as
follows:
‘‘(B) From amounts approved in appro-
priation Acts for grants under this section in
any fiscal year, up to 1 per centum shall be
made available to the Secretary for technical as-
sistance and services.’’.
RECAPTURE OF DEVELOPMENT AMOUNTS
SEC. 812. Section 5(k) of the United States Housing
Act of 1937 is amended by adding before the period at
the end of the first sentence a comma and the following:
‘‘unless the Secretary finds that there is no feasible way
for the agency to begin construction or rehabilitation, or
to complete acquisition, within such period’’.
Subtitle C—Office of Housing Section 235 Refinancing
SEC. 821. Section 235(r) of the National Housing
Act is amended—
(1) in paragraph (2)(C), by inserting after ‘‘re-
financed’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate
as permitted by subparagraph (E) or paid by the
Secretary as authorized by paragraph (4)(B)’’;
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(2) in paragraph (4)—
(A) by inserting after ‘‘otherwise)’’ the fol-
lowing: ‘‘and the mortgagee with respect to the
amount described in paragraph (A)’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortga-
gee’’; and
(3) by revising paragraph (5) to read as follows:
‘‘(5) The Secretary shall use amounts of budget
authority recaptured from assistance payments con-
tracts relating to mortgages that are being refi-
nanced for assistance payments contracts with re-
spect to mortgages insured under this subsection.
The Secretary may also make such recaptured
amounts available for incentives under paragraph
(4)(A) and the costs incurred in connection with the
refinancing under paragraph (4)(B). For purposes
of subsection (c)(3)(A), the amount of recaptured
budget authority that the Secretary commits for as-
sistance payments contracts relating to mortgages
insured under this subsection and for amounts paid
under paragraph (4) shall not be construed as ‘un-
used.’ ’’.
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ELIMINATION OF NEW ACTIVITY IN LOW-USE FHA
MULTIFAMILY DEVELOPMENT PROGRAMS
SEC. 822. (a) Section 207 of the National Housing
Act is amended by adding the following new subsection
at the end thereof:
‘‘(s) Beginning 30 days after the effective date of the
Housing Choice and Community Investment Act of 1994,
the Secretary may not accept new applications for mort-
gage insurance under this section with respect to mort-
gages involving (1) the new construction or substantial re-
habilitation of properties or projects or (2) manufactured
home parks.’’.
(b) Section 220 of such Act is amended by adding
the following new subsection at the end thereof:
‘‘(i) Beginning 30 days after the effective date of the
Housing Choice and Community Investment Act of 1994,
the Secretary may not accept new applications for mort-
gage insurance under this section with respect to mort-
gages involving the new construction or substantial reha-
bilitation of multifamily projects.’’.
(c) Section 231(b) of such Act is amended by adding
the following new sentence at the end thereof: ‘‘Beginning
30 days after the effective date of the Housing Choice and
Community Investment Act of 1994, the Secretary may
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not accept new applications for mortgage insurance under
this section.’’.
(d) Section 234(d) of such Act is amended by adding
the following new flush material at the end thereof: ‘‘Be-
ginning 30 days after the effective date of the Housing
Choice and Community Investment Act of 1994, the Sec-
retary may not accept new applications for mortgage in-
surance under this subsection.’’.
(e) Section 1101 of such Act is amended by adding
the following new sentence at the end thereof: ‘‘Beginning
30 days after the effective date of the Housing Choice and
Community Investment Act of 1994, the Secretary may
not accept new applications for mortgage insurance under
this title.’’.
INDEMNIFICATION FOR PROJECT MANAGERS
SEC. 823. Section 207(l) of the National Housing Act
is amended by inserting the following before the period:
‘‘: Provided further, That, for properties acquired by the
Secretary under this section and for properties secured by
any mortgage assigned and transferred to or held by the
Secretary, the Secretary may indemnify management con-
tractors against claims by third persons for death, bodily
injury, or loss of or damage to property on such terms
as the Secretary determines appropriate’’.
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Subtitle D—Office of Community Planning and
Development
MANAGEMENT INFORMATION SYSTEMS
SEC. 831. MANAGEMENT INFORMATION SYSTEMS.—
Section 103 of the Housing and Community Development
Act of 1974 is amended—
(1) by inserting the subsection designation
‘‘(a)’’ immediately after ‘‘103’’; and
(2) by adding the following new subsection at
the end thereof:
‘‘(b) Of the amount approved in an appropriation Act
for each of fiscal years 1995 and 1996 under this section,
up to 0.5 percent may be set aside by the Secretary for
improving management information systems used by the
Secretary and recipients under this title.’’.
CDBG REALLOCATIONS
SEC. 832. Section 106(c) of the Housing and Com-
munity Development Act of 1974 is amended by striking
paragraph (4).
USE OF UDAG RECAPTURES
SEC. 833. Section 119(o) of the Housing and Com-
munity Development Act of 1974 is amended by striking
‘‘October 1, 1993’’ and inserting in lieu thereof ‘‘April 11,
1994’’.
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(1) The names of the Secretary, the original
mortgagee (if other than the Secretary), and the
original mortgagor.
(2) The street address or a description of the
location of the security property, and a description
of the security property, sufficient to identify the
property to be sold.
(3) The date of the mortgage, the office in
which the mortgage is recorded, and the liber and
folio or other description of the location of recorda-
tion of the mortgage.
(4) The failure to make payment, including the
due date of the earliest installment payment remain-
ing wholly unpaid as of the date the notice is sub-
scribed, or the description of other default or de-
faults upon which foreclosure is based, and the ac-
celeration of the secured indebtedness.
(5) The date, time, and place of the foreclosure
sale.
(6) A statement that the foreclosure is being
conducted pursuant to this subtitle.
(7) The types of costs, if any, to be paid by the
purchaser upon transfer of title.
(8) The amount and method of deposit to be re-
quired at the foreclosure sale (except that no deposit
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shall be required of the Secretary), the time and
method of payment of the balance of the foreclosure
purchase price, and other appropriate terms of sale.
COMMENCEMENT OF FORECLOSURE
SEC. 848. (a) If the Secretary as holder of a single
family mortgage determines that the prerequisites to fore-
closure set forth in section 846 are satisfied, the Secretary
may request the foreclosure commissioner to commence
foreclosure of a single family mortgage. Upon such re-
quest, the foreclosure commissioner shall commence fore-
closure of the mortgage, by commencing service of a notice
of default and foreclosure sale in accordance with section
849.
(b) After commencement of a foreclosure under this
subtitle, the Secretary may designate a substitute fore-
closure commissioner at any time before the time of fore-
closure sale, and the foreclosure shall continue without
prejudice, unless the substitute commissioner, in his or her
sole discretion, finds that continuation of the foreclosure
sale will unfairly affect the interests of the mortgagor. If
the substitute commissioner makes such a finding, the
substitute commissioner shall cancel the foreclosure sale,
or adjourn such sale in the manner provided in section
851(c). Upon designation of a substitute foreclosure com-
missioner, a copy of the written notice of such designation
referred to in section 845 shall be served (1) by mail, as