(1) The matter in section 1842(a) of the Social
Security Act preceding paragraph (1) is amended by
striking ‘‘with carriers’’ and inserting ‘‘with agencies
and organizations (referred to as carriers’’).
(2) Section 1842(f) of the Act is repealed.
(b) ELIMINATION OF INTERMEDIARY NOMINATION
BY PROVIDERS OF SERVICES; SECRETARIAL FLEXIBILITY
IN ASSIGNING FUNCTIONS
TO INTERMEDIARIES
AND
CARRIERS.—
(1) Section 1816 of that Act is amended by
striking everything after the heading but before sub-
section (b) and inserting the following:
‘‘SEC. 1816. (a)(1) The Secretary may enter into
agreements with agencies or organizations to perform
some or all of the following functions (or parts of those
functions):
‘‘(A) determine (subject to the provisions of sec-
tion 1878 and to such review by the Secretary as
may be provided for by the agreements) the amount
of the payments required pursuant to this part to be
made to providers of services,
‘‘(B) make payments described in subparagraph
(A),
‘‘(C) provide consultative services to institutions
or agencies to enable them to establish and maintain
fiscal records necessary for purposes of this part and
otherwise to qualify as hospitals, extended care fa-
cilities, and home health agencies,
‘‘(D) serve as a center for, and communicate to
providers, any information or instructions furnished
to the agency or organization by the Secretary, and
serve as a channel of communication from providers
to the Secretary,
‘‘(E) make such audits of the records of provid-
ers as may be necessary to ensure that proper pay-
ments are made under this part, and
‘‘(F) perform such other functions as are nec-
essary to carry out the purposes of this part.
‘‘(2) As used in this title and part B of title XI, the
term ‘fiscal intermediary’ means an agency or organiza-
tion with a contract under this section.’’.
(2) Subsections (d) and (e) of section 1816 of
that Act are repealed.
(3) Section 1816(f)(1) of that Act is amended
by striking the second sentence.
(4) The matter in section 1842(a) of that Act
preceding paragraph (1) is amended by inserting ‘‘,
or parts of those functions’’ after ‘‘following func-
tions’’.
(5) Section 1842(b)(3)(G) of that Act is
amended by inserting ‘‘(unless provided by another
carrier)’’ after ‘‘will provide’’.
(6) The matter in section 1842(b)(3)(H) of that
Act preceding clause (i) is amended by striking ‘‘im-
plement—’’ and inserting ‘‘implement (as appro-
priate)—’’.
(7) Section 1842(b)(3)(L) of that Act is amend-
ed by inserting ‘‘(as appropriate)’’ after ‘‘will’’.
(8) The first sentence of section 1842(h)(2) of
that Act is amended by inserting ‘‘(unless main-
tained by another carrier)’’ after ‘‘shall maintain’’.
(c) ELIMINATION OF SPECIAL PROVISIONS FOR TER-
MINATION OF CONTRACTS.—
(1) Section 1816(f)(1) of that Act is amended
by striking ‘‘, renew, or terminate’’ and ‘‘or reas-
sign’’.
(2) Section 1816(g) of that Act is repealed.
(3) Section 1842(b) of that Act is amended by
striking paragraph (5).
(d) REPEAL
OF
PROHIBITION
AGAINST
DATA
MATCHING.—Sections 1816(c)(1) and 1842(b)(2)(A) of
that Act are each amended by striking the last sentence.
(e) REPEAL OF COST REIMBURSEMENT REQUIRE-
MENTS.—
(1) The first sentence of section 1816(c)(1) of
that Act is amended—
(A) by striking the comma after ‘‘appro-
priate’’ and inserting ‘‘and’’; and
(B) by striking everything after ‘‘sub-
section (a)’’ up to the period.
(2) Section 1816(c)(1) of that Act is further
amended by striking the remaining sentences.
(3) The first sentence of section 1842(c)(1)(A)
of that Act is amended—
(A) by striking ‘‘shall provide’’ the first
place it occurs and inserting ‘‘may provide’’;
and
(B) by striking everything after ‘‘this
part’’ up to the period.
(4) Section 1842(c)(1)(A) of that Act is further
amended by striking the remaining sentences.
(5) Section 2326(a) of the Deficit Reduction
Act of 1984 is repealed.
(f) ELIMINATION OF SEPARATE CARRIER FOR RAIL-
ROAD RETIREES.—Section 1842(g) of the Social Security
Act is repealed.
(g) EFFECTIVE DATE.—The amendments made by
the preceding subsections apply to contracts (including re-
newals) entered into after the third calendar month that
begins after the date of enactment of this Act.
Subtitle 
B—Workers’ 
Compensa-
tion 
Data 
Exchange 
Pilot
Projects
SEC. 5101. WORKERS’ COMPENSATION DATA EXCHANGE
PILOT PROJECTS.
(a) IN GENERAL.—The Secretary is authorized to
conduct pilot projects with not more than three States for
the purpose of studying various means of obtaining on a
timely and accurate basis such information relating to
benefits paid on account of total or partial disability under
the States’ workers’ compensation plan as the Secretary
may require for the purpose of carrying out section 224
of the Social Security Act.
(b) REIMBURSEMENT OF STATE COSTS.—A State
that participates in a project conducted pursuant to sub-
section (a) may be paid by the Secretary, from amounts
available pursuant to subsection (e), the reasonable costs
of such participation.
(c) EVALUATION.—The Secretary shall evaluate each
project conducted pursuant to subsection (a) and shall
apply the findings, as appropriate, to agreements nego-
tiated pursuant to subsection (h)(2) of such section 224.
(d) 
DEADLINE
FOR
COMMENCEMENT
OF
PROJECTS.—No pilot project authorized by subsection (a)
may be commenced after the expiration of the 5-year pe-
riod beginning on the date of enactment of this section.
(e) FUNDING.—Expenditures for pilot projects con-
ducted pursuant to subsection (a) may be made from the
Federal Disability Insurance Trust Fund and the Old-Age
and Survivors Insurance Trust Fund, as determined ap-
propriate by the Secretary.
(f) EFFECTIVE DATE.—This section shall be effective
upon enactment.
Subtitle C—Federal Clearinghouse
on Death Information
SEC. 5201. FEDERAL CLEARINGHOUSE ON DEATH INFOR-
MATION.
(a) CLEARINGHOUSE DESIGNATION.—The heading
for section 205(r) of the Social Security Act is amended
to read as follows: ‘‘Clearinghouse on Death Information’’.
(b) ACQUISITION OF DISCLOSABLE DEATH INFORMA-
TION FROM STATES.—
(1) Section 205(r)(1)(A) of the Social Security
Act is amended by striking ‘‘to furnish the Secretary
periodically with’’ and inserting ‘‘to furnish periodi-
cally to the Secretary, for use in carrying out sub-
paragraph (B) and paragraphs (3) and (4),’’.
(2)(A) Notwithstanding clause (ii) of section
6103(d)(4)(B) of the Internal Revenue Code of 1986
(as added by section 13444(a) of the Omnibus
Budget Reconciliation Act of 1993 (Public Law
103–66)), in order for a contract requiring a State
to furnish the Secretary of Health and Human Serv-
ices information concerning individuals with respect
to whom death certificates (or equivalent documents
maintained by the State or any subdivision thereof)
have been officially filed with it to meet the require-
ments of such section 6103(d)(4)(B), such contract
shall authorize the Secretary to use such information
and to redisclose such information to any Federal
agency or any agency of a State or political subdivi-
sion in accordance with section 205(r) of the Social
Security Act.
(B) The provisions of subparagraph (A) of this
paragraph and, notwithstanding subparagraph (C)
of section 6103(d)(4) of the Internal Revenue Code
of 1986 (as added by section 13444(a) of the Omni-
bus Budget Reconciliation Act of 1993 (Public Law
103–66)), the provisions of subparagraphs (A) and
(B) of such section 6103(d)(4) shall apply to all
States, regardless of whether they were, on July 1,
1993, pursuant to a contract, furnishing the Sec-
retary of Health and Human Services information
concerning individuals with respect to whom death
certificates (or equivalent documents maintained by
the State or any subdivision thereof) have been offi-
cially filed with it.
(C) Subparagraphs (A) and (B) of this para-
graph shall take effect at the same time as the
amendment made by section 13444(a) of the Omni-
bus Budget Reconciliation Act of 1993 takes effect.
(D) For the purpose of applying the special rule
contained in section 13444(b)(2) of the Omnibus
Budget Reconciliation Act of 1993, the reference in
such section to section 6103(d)(4)(B) of the Internal
Revenue Code of 1986 shall be deemed to include a
reference to subparagraph (A) of this paragraph.
(c) PAYMENT
TO STATES
FOR DEATH INFORMA-
TION.—Section 205(r)(2) of the Social Security Act is
amended—
(1) by striking ‘‘the reasonable costs’’ and in-
serting ‘‘a reasonable amount’’; and
(2) by striking ‘‘transcribing and transmitting’’
and inserting ‘‘furnishing’’.
(d) FEE FOR CLEARINGHOUSE INFORMATION.—
(1) Section 205(r)(3) of the Social Security Act
is amended by striking out ‘‘if’’ and all that follows,
and inserting ‘‘, provided that such agency agrees to
pay the fees set by the Secretary pursuant to para-
graph (8).’’.
(2) Section 205(r)(4) of the Social Security Act
is amended—
(A) by inserting ‘‘and political subdivi-
sions’’ after ‘‘States’’ the first place such term
appears;
(B) by striking ‘‘the States’’ and inserting
‘‘any State, political subdivision, or combination
thereof’’; and
(C) by striking ‘‘if’’ and all that follows
and inserting ‘‘provided such States and politi-
cal sudivisions agree to pay the fees set by the
Secretary pursuant to paragraph (8).’’.
(3) Section 205(r) of the Social Security Act is
amended by adding at the end a new paragraph as
follows: ‘‘(8) The Secretary shall establish fees for
the disclosure of information pursuant to this sub-
section. Such fees shall be in amounts sufficient to
cover all costs (including indirect costs) associated
with the Secretary’s responsibilities under this sub-
section. Fees collected pursuant to this paragraph
shall remain available, without fiscal year limitation,
to the Secretary to cover the administrative costs of
carrying out this subsection.’’.
(e) TECHNICAL ASSISTANCE.—Section 205(r) of the
Social Security Act is amended by adding at the end (after
the paragraph added by subsection (d)(3)) the following
new paragraph:
‘‘(9) The Secretary may provide to any Federal or
State agency that provides Federally funded benefits,
upon the request of such agency, technical assistance on
the effective collection, dissemination, and use of death in-
formation available under this subsection for the purpose
of ensuring that such benefits are not erroneously paid
to deceased individuals.’’.
(f) TECHNICAL AMENDMENT.—Section 205(r) of the
Social Security Act is amended by adding at the end (after
the paragraph added by subsection (e)) the following new
paragraph:
‘‘(10) For purposes of this subsection, the term ‘Fed-
erally funded benefit’ means any payment funded in whole
or in part by the Federal Government.’’.
(g) EFFECTIVE DATE.—Except as otherwise pro-
vided, the amendments made by this section shall take ef-
fect upon their enactment.
Subtitle D—Continuing Disability
Reviews
SEC. 5301. CONTINUING DISABILITY REVIEWS.
Section 201(g)(1)(A) of the Social Security Act is
amended by adding at the end of the paragraph the follow-
ing sentence: ‘‘From funds provided pursuant to this sub-
paragraph for the following fiscal years, not less than the
following amounts shall be available only for conducting
continuing disability reviews and related workloads: for
fiscal year 1994, $46 million; for fiscal year 1995,
$47,200,000; for fiscal year 1996, $48,500,000; for fiscal
year 
1997, 
$49,800,000; 
for 
fiscal 
year 
1998,
$51,100,000; and for fiscal year 1999, $52,500,000.’’.
TITLE
VI—DEPARTMENT
OF
HOUSING AND URBAN DEVEL-
OPMENT
Subtitle A—Multifamily Property
Disposition
SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION.
(a) FINDINGS.—The Congress finds that—
(1) the portfolio of multifamily housing project
mortgages insured by the FHA is severely troubled
and at risk of default, requiring the Secretary to in-
crease loss reserves from $5,500,000,000 in 1991 to
$11,900,000,000 in 1992 to cover estimated future
losses;
(2)
the
inventory
of
multifamily
housing
projects owned by the Secretary has more than tri-
pled since 1989, and, by the end of 1993, may ex-
ceed 75,000 units;
(3) the cost to the Federal Government of own-
ing and maintaining multifamily housing projects es-
calated to approximately $250,000,000 in fiscal year
1992;
(4)
the
inventory
of
multifamily
housing
projects subject to mortgages held by the Secretary
has increased dramatically, to more than 2,400
mortgages, and approximately half of these mort-
gages, with over 230,000 units, are delinquent;
(5) the inventory of insured and formerly in-
sured multifamily housing projects is rapidly deterio-
rating, endangering tenants and neighborhoods;
(6) over 5 million families today have a critical
need for housing that is affordable and habitable;
and
(7) the current statutory framework governing
the disposition of multifamily housing projects effec-
tively impedes the Government’s ability to dispose of
properties, protect tenants, and ensure that projects
are maintained over time.
(b) MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.—Section 203 of the Housing
and Community Development Amendments of 1978 (12
U.S.C. 1701z-11) is amended to read as follows:
‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.
‘‘(a) GOALS.—The Secretary of Housing and Urban
Development (hereafter in this section referred to as the
‘Secretary’) shall manage or dispose of multifamily hous-
ing projects that are owned by the Secretary or that are
subject to a mortgage held by the Secretary in a manner
that—
‘‘(1) is consistent with the National Housing
Act and this section;
‘‘(2) will protect the financial interests of the
Federal Government; and
‘‘(3) will, in the least costly fashion among rea-
sonable available alternatives, further the goals of—
‘‘(A) preserving housing so that it can re-
main available to and affordable by low-income
persons;
‘‘(B) preserving and revitalizing residential
neighborhoods;
‘‘(C) maintaining existing housing stock in
a decent, safe, and sanitary condition;
‘‘(D) minimizing the involuntary displace-
ment of tenants;
‘‘(E) maintaining housing for the purpose
of providing rental housing, cooperative hous-
ing, and homeownership opportunities for low-
income persons; and
‘‘(F) minimizing the need to demolish mul-
tifamily housing projects.
The Secretary, in determining the manner in which a
project is to be managed or disposed of, may balance com-
peting goals relating to individual projects in a manner
that will further the purposes of this section.
‘‘(b) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘multifamily housing project’ means any multi-
family rental housing project which is, or prior to
acquisition by the Secretary was, assisted or insured
under the National Housing Act, or was subject to
a loan under section 202 of the Housing Act of
1959.
‘‘(2) SUBSIDIZED
PROJECT.—The term ‘sub-
sidized project’ means a multifamily housing project
receiving any of the following types of assistance im-
mediately prior to the assignment of the mortgage
on such project to, or the acquisition of such mort-
gage by, the Secretary:
‘‘(A) Below market interest rate mortgage
insurance
under
the
proviso
of
section
221(d)(5) of the National Housing Act.
‘‘(B) Interest reduction payments made in
connection with mortgages insured under sec-
tion 236 of the National Housing Act.
‘‘(C) Direct loans made under section 202
of the Housing Act of 1959.
‘‘(D) Assistance in the form of—
‘‘(i) rent supplement payments under
section 101 of the Housing and Urban De-
velopment Act of 1965;
‘‘(ii)
housing
assistance
payments
made under section 23 of the United
States Housing Act of 1937 (as in effect
before January 1, 1975); or
‘‘(iii)
housing
assistance
payments
made under section 8 of the United States
Housing Act of 1937 (excluding payments
made for tenant-based assistance under
section 8),
if (except for purposes of section 183(c) of the
Housing and Community Development Act of
1987) such assistance payments are made to
more than 50 percent of the units in the
project.
‘‘(3) FORMERLY
SUBSIDIZED
PROJECT.—The
term ‘formerly subsidized project’ means a multi-
family housing project owned by the Secretary that
was a subsidized project immediately prior to its ac-
quisition by the Secretary.
‘‘(4)
UNSUBSIDIZED
PROJECT.—The
term
‘unsubsidized project’ means a multifamily housing
project owned by the Secretary that is not a sub-
sidized project or a formerly subsidized project.
‘‘(c)
MANAGEMENT
OR
DISPOSITION
OF
PROP-
ERTY.—
‘‘(1) DISPOSITION TO PURCHASERS.—The Sec-
retary is authorized, in carrying out this section, to
dispose of a multifamily housing project owned by
the Secretary on a negotiated, competitive bid, or
other basis, on such terms as the Secretary deems
appropriate considering the low-income character of
the project and the requirements of subsection (a),
to a purchaser determined by the Secretary to be ca-
pable of—
‘‘(A) satisfying the conditions of the dis-
position;
‘‘(B) implementing a sound financial and
physical management program that is designed
to enable the project to meet anticipated oper-
ating and repair expenses to ensure that the
project will remain in decent, safe, and sanitary
condition;
‘‘(C) responding to the needs of the ten-
ants and working cooperatively with tenant or-
ganizations;
‘‘(D)
providing
adequate
organizational
staff and financial resources to the project; and
‘‘(E) meeting such other requirements as
the Secretary may determine.
‘‘(2) CONTRACTING
FOR
MANAGEMENT
SERV-
ICES.—The Secretary is authorized, in carrying out
this section—
‘‘(A) to contract for management services
for a multifamily housing project that is owned
by the Secretary (or for which the Secretary is
mortgagee in possession), on a negotiated, com-
petitive bid, or other basis at a price deter-
mined by the Secretary to be reasonable, with
a manager the Secretary has determined is ca-
pable of—
‘‘(i) implementing a sound financial
and physical management program that is
designed to enable the project to meet an-
ticipated operating and maintenance ex-
penses to ensure that the project will re-
main in decent, safe, and sanitary condi-
tion;
‘‘(ii) responding to the needs of the
tenants and working cooperatively with
tenant organizations;
‘‘(iii)
providing
adequate
organiza-
tional, staff, and other resources to imple-
ment a management program determined
by the Secretary; and
‘‘(iv) meeting such other requirements
as the Secretary may determine; and
‘‘(B) to require the owner of a multifamily
housing project that is subject to a mortgage
held by the Secretary to contract for manage-
ment services for the project in the manner de-
scribed in subparagraph (A).
‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—
able, with owners of multifamily housing projects
that are acquired by a purchaser other than the Sec-
retary at foreclosure or after sale by the Secretary.
‘‘(A)
SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED PROJECTS RECEIVING CERTAIN ASSIST-
ANCE.—In the case of a subsidized or formerly
subsidized project referred to in subparagraphs
(A) through (C) of subsection (b)(2)—
‘‘(i) the contract shall be sufficient to
assist at least all units covered by an as-
sistance contract under any of the authori-
ties referred to in subsection (b)(2)(D) be-
fore acquisition, unless the Secretary acts
pursuant to the provisions of subparagraph
(C);
‘‘(ii) in the case of units requiring
project-based rental assistance pursuant to
this paragraph that are occupied by fami-
lies who are not eligible for assistance
under section 8, a contract under this sub-
paragraph shall also provide that when a
vacancy occurs, the owner shall lease the
available unit to a family eligible for assist-
ance under section 8; and
‘‘(iii) the Secretary shall take actions
to ensure the availability and affordability,
as defined in paragraph (3)(B), for the re-
maining useful life of the project, as de-
fined by the Secretary, of any unit located
in any project referred to in subparagraphs
(A) through (C) of subsection (b)(2) that
does not otherwise receive project-based as-
sistance under this subparagraph. To carry
out this clause, the Secretary may require
purchasers to establish use or rent restric-
tions maintaining affordability, as defined
in paragraph (3)(B).
‘‘(B)
SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED PROJECTS RECEIVING OTHER ASSIST-
ANCE.—In the case of a subsidized or formerly
subsidized project referred to in subsection
(b)(2)(D)—
‘‘(i) the contract shall be sufficient to
assist at least all units in the project that
are covered, or were covered immediately
before foreclosure on or acquisition of the
project by the Secretary, by an assistance
contract under any of the authorities re-
ferred to in such subsection, unless the
Secretary acts pursuant to provisions of
subparagraph (C); and
‘‘(ii) in the case of units requiring
project-based rental assistance pursuant to
this paragraph that are occupied by fami-
lies who are not eligible for assistance
under section 8, a contract under this
paragraph shall also provide that when a
vacancy occurs, the owner shall lease the
available unit to a family eligible for assist-
ance under section 8.
‘‘(C) EXCEPTIONS TO SUBPARAGRAPHS (A)
AND (B).—In lieu of providing project-based as-
sistance under subparagraph (A) or (B), the
Secretary
may
require
certain
units
in
unsubsidized projects to contain use restrictions
providing that such units will be available to
and affordable by very low-income families for
the remaining useful life of the project, as de-
fined by the Secretary, if—
‘‘(i) the Secretary matches any reduc-
tion in units otherwise required to be as-
sisted with project-based assistance under
subparagraph (A) or (B) with at least an
equivalent increase in units made afford-
able to very low-income persons within
unsubsidized projects;
‘‘(ii) low-income tenants residing in
units otherwise requiring project-based as-
sistance under subparagrph (A) or (B)
upon disposition receive section 8 tenant-
based assistance; and
‘‘(iii) the units described in clause (i)
are located within the same market area.
‘‘(D)
CONTRACT
REQUIREMENTS
FOR
UNSUBSIDIZED
PROJECTS.—Notwithstanding
actions taken pursuant to subparagraph (C), in
unsubsidized projects, the contract shall at least
be sufficient to provide—
‘‘(i) project-based rental assistance for
all units that are covered or were covered
immediately before foreclosure or acquisi-
tion by an assistance contract under—
‘‘(I) section 8(b)(2) of the United
States Housing Act of 1937 (as such
section
existed
before
October
1,
1983) (new construction and substan-
tial
rehabilitation);
section
8(b)
of
such Act (property disposition); sec-
tion 8(d)(2) of such Act (project-
based certificates); section 8(e)(2) of
such
Act
(moderate
rehabilitation);
section 23 of such Act (as in effect
before January 1, 1975); or section
101 of the Housing and Urban Devel-
opment Act of 1965 (rent supple-
ments); or
‘‘(II) section 8 of the United
States Housing Act of 1937, following
conversion from section 101 of the
Housing and Urban Development Act
of 1965; and
‘‘(ii)
tenant-based
assistance
under
section 8 of the United States Housing Act
of 1937 for tenants currently residing in
units that were covered by an assistance
contract under the Loan Management Set-
Aside program under section 8(b) of the
United States Housing Act of 1937 imme-
diately before foreclosure or acquisition of
the project by the Secretary.
‘‘(2) ANNUAL CONTRIBUTION CONTRACTS.—In
the case of multifamily housing projects that are ac-
quired by a purchaser other than the Secretary at
foreclosure or after sale by the Secretary, enter into
annual contribution contracts with public housing
agencies to provide tenant-based assistance under
section 8 of the United States Housing Act of 1937
to all low-income families who are eligible for such
assistance on the date that the project is acquired
by the purchaser. The Secretary shall take action
under this paragraph only after making a deter-
mination that there is available in the area an ade-
quate supply of habitable affordable housing for low-
income families. Actions taken pursuant to this
paragraph may be taken in connection with not
more than 10 percent of the aggregate number of
units in subsidized or formerly subsidized projects
disposed of by the Secretary annually.
‘‘(3) OTHER ASSISTANCE.—
‘‘(A) IN
GENERAL.—In accordance with
the
authority
provided
under
the
National
Housing Act, reduce the selling price, apply use
or rent restrictions on certain units, or provide
other financial assistance to the owners of mul-
tifamily housing projects that are acquired by a
purchaser other than the Secretary at fore-
closure, or after sale by the Secretary, on terms
which will ensure that—
‘‘(i) at least those units otherwise re-
quired to receive project-based section 8
assistance pursuant to subparagraphs (A),
(B), or (D) of paragraph (1) are available
to and affordable by low-income persons;
and
‘‘(ii) for the remaining useful life of
the project, as defined by the Secretary,
there shall be in force such use or rent re-
strictions as the Secretary may prescribe.
‘‘(B) DEFINITION.—A unit shall be consid-
ered affordable under this paragraph if—
‘‘(i) for very low-income tenants, the
rent for such unit does not exceed 30 per-
cent of 50 percent of the area median in-
come, as determined by the Secretary, with
adjustments for family size; and
‘‘(ii)
for
low-income
tenants
other
than very low-income tenants, the rent for
such unit does not exceed 30 percent of 80
percent of the area median income, as de-
termined by the Secretary, with adjust-
ments for family size.
‘‘(C) VERY
LOW-INCOME
TENANTS.—The
Secretary shall provide assistance under section
8 of the United States Housing Act of 1937 to
any very low-income tenant currently residing
in a unit otherwise required to receive project-
based assistance under section 8, pursuant to
subparagraph (A), (B), or (D) of paragraph
(1), if the rents charged such tenants as a re-
sult of actions taken pursuant to this para-
graph exceed the amount payable as rent under
section 3(a) of the United States Housing Act
of 1937.
‘‘(4) TRANSFER FOR USE UNDER OTHER PRO-
GRAMS OF THE SECRETARY.—
‘‘(A) IN GENERAL.—Enter into an agree-
ment providing for the transfer of a multifamily
housing project—
‘‘(i) to a public housing agency for use
of the project as public housing; or
‘‘(ii) to an owner or another appro-
priate entity for use of the project under
section 202 of the Housing Act of 1959 or
under section 811 of the Cranston-Gon-
zalez National Affordable Housing Act.
‘‘(B) REQUIREMENTS FOR AGREEMENT.—
The agreement described in subparagraph (A)
shall—
‘‘(i) contain such terms, conditions,
and limitations as the Secretary deter-
mines appropriate, including requirements
to assure use of the project under the pub-
lic housing, section 202, and section 811
programs; and
‘‘(ii) ensure that no current tenant
will be displaced as a result of actions
taken under this paragraph.
‘‘(f) OTHER ASSISTANCE.—In addition to the actions
authorized by subsection (e), the Secretary may take any
of the following actions:
‘‘(1) SHORT-TERM LOANS.—Provide short-term
loans to facilitate the sale of multifamily housing
projects to nonprofit organizations or to public agen-
cies if—
‘‘(A) authority for such loans is provided
in advance in an appropriations Act;
‘‘(B) such loans are for a term of not more
than 5 years;
‘‘(C) the Secretary is presented with satis-
factory documentation, evidencing a commit-
ment of permanent financing to replace such
short-term loan, from a lender who meets
standards set forth by the Secretary; and
‘‘(D) the terms of such loans are consist-
ent with prevailing practices in the marketplace
or the provision of such loans results in no cost
to the Government, as defined in section 502 of
the Congressional Budget Act.
‘‘(2) TENANT-BASED ASSISTANCE.—In connec-
tion with projects referred to in subsection (e), make
available tenant-based assistance under section 8 of
the United States Housing Act of 1937 to very low-
income families (as defined in section 3(b)(2) of the
United States Housing Act of 1937) that do not
otherwise qualify for project-based assistance.
‘‘(3) ALTERNATIVE USES.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of law, and subject to notice to
and comment from existing tenants, allow not
more than—
‘‘(i) 5 percent of the total number of
units in multifamily housing projects that
are disposed of by the Secretary during
any 1-year period to be made available for
uses other than rental or cooperative uses,
including low-income homeownership op-
portunities, or in any particular project,
community space, office space for tenant
or housing-related service providers or se-
curity programs, or small business uses, if
such
uses
benefit
the
tenants
of
the
project; and
‘‘(ii) 5 percent of the total number of
units in multifamily housing projects that
are disposed of by the Secretary during
any 1-year period to be used in any man-
ner, if the Secretary and the unit of gen-
eral local government or area-wide govern-
ing body determine that such use will fur-
ther fair housing, community development,
or neighborhood revitalization goals.
‘‘(B) DISPLACEMENT
PROTECTION.—The
Secretary
shall
make
available
tenant-based
rental assistance under section 8 of the United
States Housing Act of 1937 to any tenant dis-
placed as a result of actions taken by the Sec-
retary pursuant to subparagraph (A), and the
Secretary shall take such actions as the Sec-
retary determines necessary to ensure the suc-
cessful use of any tenant-based assistance.
‘‘(g) AUTHORIZATION OF USE OR RENT RESTRIC-
TIONS IN UNSUBSIDIZED PROJECTS.—In carrying out the
goals specified in subsection (a), the Secretary may re-
quire certain units in unsubsidized projects to contain use
or rent restrictions providing that such units will be avail-
able to and affordable by very low-income persons for the
remaining useful life of the property, as defined by the
Secretary.
‘‘(h) CONTRACT REQUIREMENTS.—
‘‘(1) CONTRACT TERM.—
‘‘(A) IN GENERAL.—Contracts for project-
based rental assistance under section 8 of the
United States Housing Act of 1937 provided
pursuant to this section shall be for a term of
not more than 15 years; and
‘‘(B) CONTRACT TERM OF LESS THAN 15
YEARS.—Notwithstanding subparagraph (A), to
the extent that units receive project-based as-
sistance for a contract term of less than 15
years, the Secretary shall require that rents
charged to tenants for such units not exceed
the amount payable for rent under section 3(a)
of the United States Housing Act of 1937 for
a period of at least 15 years.
‘‘(2) CONTRACT RENT.—
‘‘(A) IN
GENERAL.—The Secretary shall
set contract rents for section 8 project-based
rental contracts issued under this section at lev-
els that, in conjunction with other resources
available to the purchaser, provide for the nec-
essary costs of rehabilitation of such project
and do not exceed the percentage of the existing
housing fair market rents for the area (as de-
termined by the Secretary under section 8(c) of
the United States Housing Act of 1937) as the
Secretary may prescribe.
‘‘(B) UP-FRONT GRANTS AND LOANS.—If
such an approach is determined to be more
cost-effective, the Secretary may utilize the
budget authority provided for project-based sec-
tion 8 contracts issued under this section to—
‘‘(i) provide project-based section 8
rental assistance; and
‘‘(ii)(I) provide up-front grants for the
necessary cost of rehabilitation; or
‘‘(II) pay for any cost to the Govern-
ment, as defined in section 502 of the Con-
gressional Budget Act, for loans made pur-
suant to subsection (f)(1).
‘‘(i) DISPOSITION PLAN.—
‘‘(1) IN GENERAL.—Prior to the sale of a mul-
tifamily housing project that is owned by the Sec-
retary, the Secretary shall develop a disposition plan
for the project that specifies the minimum terms
and conditions of the Secretary for disposition of the
project, the initial sales price that is acceptable to
the Secretary, and the assistance that the Secretary
plans to make available to a prospective purchaser
in accordance with this section. The initial sales
price shall reflect the intended use of the property
after sale.
‘‘(2) COMMUNITY
AND
TENANT
INPUT
INTO
DISPOSITION PLANS AND SALES.—
‘‘(A) IN GENERAL.—In carrying out this
section, the Secretary shall develop procedures
to obtain appropriate and timely input into dis-
position plans from officials of the unit of gen-
eral local government affected, the community
in which the project is situated, and the tenants
of the project.
‘‘(B) TENANT ORGANIZATIONS.—The Secretary
shall develop procedures to facilitate, where feasible
and appropriate, the sale of multifamily housing
projects to existing tenant organizations with dem-
onstrated capacity or to public or nonprofit entities
which represent or are affiliated with existing tenant
organizations.
‘‘(C) TECHNICAL ASSISTANCE.—
‘‘(i) USE OF FUNDS.—To carry out
the procedures developed under subpara-
graphs (A) and (B), the Secretary is au-
thorized to provide technical assistance, di-
rectly or indirectly, and to use amounts ap-
propriated for technical assistance under
the Emergency Low Income Housing Pres-
ervation Act of 1987, the Low-Income
Housing Preservation and Resident Home-
ownership Act of 1990, subtitle B of title
IV of the Cranston-Gonzalez National Af-
fordable Housing Act, or under this section
for the provision of technical assistance
under this section.
‘‘(ii) SOURCE OF FUNDS.—Recipients
of technical assistance funding under the
Emergency Low Income Housing Preserva-
tion Act of 1987, the Low-Income Housing
Preservation and Resident Homeownership
Act of 1990, subtitle B of title IV of the
Cranston-Gonzalez
National
Affordable
Housing Act, or under this section shall be
permitted to provide technical assistance to
the extent of such funding under any of
such programs or under this section, not-
withstanding the source of funding.
‘‘(j) RIGHT OF FIRST REFUSAL.—
‘‘(1) PROCEDURE.—
‘‘(A) NOTIFICATION
BY
SECRETARY
OF
THE ACQUISITION OF TITLE.—Not later than
30 days after acquiring title to a project, the
Secretary shall notify the unit of general local
government and the State agency or agencies
designated by the Governor of the acquisition of
such title.
‘‘(B)
EXPRESSION
OF
INTEREST.—Not
later than 45 days after receiving notification
from the Secretary under subparagraph (A),
the unit of general local government or des-
ignated State agency may submit to the Sec-
retary a preliminary expression of interest in
the project. The Secretary may take such ac-
tions as may be necessary to require the unit of
general local government or designated State
agency to substantiate such interest.
‘‘(C)
TIMELY
EXPRESSION
OF
INTER-
EST.—If the unit of general local government or
designated State agency has expressed interest
in the project before the expiration of the 45-
est in such mortgages, in a manner consistent
with maintaining the projects that are subject
to such mortgages for occupancy by the general
tenant group intended to be served by the appli-
cable mortgage insurance program, including,
to the extent the Secretary determines appro-
priate, authorizing such unit of local govern-
ment or State agency to enforce the provisions
of any regulatory agreement or other program
requirements applicable to the related projects;
and
‘‘(B) the sales prices for such mortgages
shall be, in the determination of the Secretary,
the best prices that may be obtained for such
mortgages from a unit of general local govern-
ment or State agency, consistent with the ex-
pectation and intention that the projects fi-
nanced will be retained for use under the appli-
cable mortgage insurance program for the life
of the initial mortgage insurance contract.
‘‘(4)
SALE
OF
MORTGAGES
COVERING
UNSUBSIDIZED
PROJECTS.—Notwithstanding
any
other provision of law, the Secretary may sell mort-
gages held on unsubsidized projects on such terms
and conditions as the Secretary may prescribe.
‘‘(m) REPORT TO CONGRESS.—Not later than June
1 of each year, the Secretary shall submit to the Commit-
tee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Banking, Finance and Urban Af-
fairs of the House of Representatives, a report describing
the status of multifamily housing projects owned by or
subject to mortgages held by the Secretary, which report
shall include—
‘‘(1) the name, address, and size of each
project;
‘‘(2) the nature and date of assignment;
‘‘(3) the status of the mortgage;
‘‘(4) the physical condition of the project;
‘‘(5) an occupancy profile of the project, includ-
ing the income, family size, and race of current resi-
dents as well as the rents paid by such residents;
‘‘(6) the proportion of units in a project that
are vacant;
‘‘(7) the date on which the Secretary became
mortgagee in possession;
‘‘(8) the date and conditions of any foreclosure
sale;
‘‘(9) the date of acquisition by the Secretary;
‘‘(10) the date and conditions of any property
disposition sale;