Union Calendar No. 314
104TH CONGRESS
2D SESSION
H. R. 3666
[Report No. 104–628]
A BILL
Making appropriations for the Departments of Vet-
erans Affairs and Housing and Urban Develop-
ment, and for sundry independent agencies,
boards, commissions, corporations, and offices
for the fiscal year ending September 30, 1997,
and for other purposes.
JUNE 18, 1996
Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
IB
Union Calendar No. 314
104TH CONGRESS
2D SESSION
H. R. 3666
[Report No. 104–628]
Making appropriations for the Departments of Veterans Affairs and Housing
and Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending Septem-
ber 30, 1997, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 18, 1996
Mr. LEWIS, from the Committee on Appropriations, reported the following bill;
which was committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
A BILL
Making appropriations for the Departments of Veterans Af-
fairs and Housing and Urban Development, and for sun-
dry independent agencies, boards, commissions, corpora-
tions, and offices for the fiscal year ending September
30, 1997, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
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Departments of Veterans Affairs and Housing and Urban
Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fis-
cal year ending September 30, 1997, and for other pur-
poses, namely:
TITLE I
DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFERS OF FUNDS)
For the payment of compensation benefits to or on
behalf of veterans as authorized by law (38 U.S.C. 107,
chapters 11, 13, 51, 53, 55, and 61); pension benefits to
or on behalf of veterans as authorized by law (38 U.S.C.
chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and bur-
ial benefits, emergency and other officers’ retirement pay,
adjusted-service credits and certificates, payment of pre-
miums due on commercial life insurance policies guaran-
teed under the provisions of Article IV of the Soldiers’
and Sailors’ Civil Relief Act of 1940, as amended, and
for other benefits as authorized by law (38 U.S.C. 107,
1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61;
50 U.S.C. App. 540–548; 43 Stat. 122, 123; 45 Stat. 735;
76 Stat. 1198); $18,497,854,000, to remain available
until expended: Provided, That not to exceed $26,417,000
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of the amount appropriated shall be reimbursed to ‘‘Gen-
eral operating expenses’’ and ‘‘Medical care’’ for necessary
expenses in implementing those provisions authorized in
the Omnibus Budget Reconciliation Act of 1990, and in
the Veterans’ Benefits Act of 1992 (38 U.S.C. chapters
51, 53, and 55), the funding source for which is specifi-
cally provided as the ‘‘Compensation and pensions’’ appro-
priation: Provided further, That such sums as may be
earned on an actual qualifying patient basis, shall be reim-
bursed to ‘‘Medical facilities revolving fund’’ to augment
the funding of individual medical facilities for nursing
home care provided to pensioners as authorized by the
Veterans’ Benefits Act of 1992 (38 U.S.C. chapter 55).
READJUSTMENT BENEFITS
For the payment of readjustment and rehabilitation
benefits to or on behalf of veterans as authorized by 38
U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55,
and 61, $1,227,000,000, to remain available until ex-
pended: Provided, That funds shall be available to pay any
court order, court award or any compromise settlement
arising from litigation involving the vocational training
program authorized by section 18 of Public Law 98–77,
as amended.
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VETERANS INSURANCE AND INDEMNITIES
For military and naval insurance, national service life
insurance, servicemen’s indemnities, service-disabled vet-
erans insurance, and veterans mortgage life insurance as
authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72
Stat. 487, $38,970,000, to remain available until ex-
pended.
GUARANTY AND INDEMNITY PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such
sums as may be necessary to carry out the program, as
authorized by 38 U.S.C. chapter 37, as amended: Pro-
vided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Con-
gressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $105,226,000,
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
LOAN GUARANTY PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such
sums as may be necessary to carry out the program, as
authorized by 38 U.S.C. chapter 37, as amended: Pro-
vided, That such costs, including the cost of modifying
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such loans, shall be as defined in section 502 of the Con-
gressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $33,810,000,
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
DIRECT LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, such sums as may be
necessary to carry out the program, as authorized by 38
U.S.C. chapter 37, as amended: Provided, That such costs,
including the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That during 1997,
within the resources available, not to exceed $300,000 in
gross obligations for direct loans are authorized for spe-
cially adapted housing loans.
In addition, for administrative expenses to carry out
the direct loan program, $80,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
EDUCATION LOAN FUND PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $1,000, as authorized
by 38 U.S.C. 3698, as amended: Provided, That such
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costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to
carry out the direct loan program, $195,000, which may
be transferred to and merged with the appropriation for
‘‘General operating expenses’’.
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $49,000, as authorized
by 38 U.S.C. chapter 31, as amended: Provided, That such
costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $1,964,000.
In addition, for administrative expenses necessary to
carry out the direct loan program, $377,000, which may
be transferred to and merged with the appropriation for
‘‘General operating expenses’’.
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NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM
ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For administrative expenses to carry out the direct
loan program authorized by 38 U.S.C. chapter 37, sub-
chapter V, as amended, $205,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
For necessary expenses for the maintenance and op-
eration of hospitals, nursing homes, and domiciliary facili-
ties; for furnishing, as authorized by law, inpatient and
outpatient care and treatment to beneficiaries of the De-
partment of Veterans Affairs, including care and treat-
ment in facilities not under the jurisdiction of the Depart-
ment; and furnishing recreational facilities, supplies, and
equipment; funeral, burial, and other expenses incidental
thereto for beneficiaries receiving care in the Department;
administrative expenses in support of planning, design,
project management, real property acquisition and disposi-
tion, construction and renovation of any facility under the
jurisdiction or for the use of the Department; oversight,
engineering and architectural activities not charged to
project cost; repairing, altering, improving or providing fa-
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cilities in the several hospitals and homes under the juris-
diction of the Department, not otherwise provided for, ei-
ther by contract or by the hire of temporary employees
and purchase of materials; uniforms or allowances there-
for, as authorized by 5 U.S.C. 5901–5902; aid to State
homes as authorized by 38 U.S.C. 1741; and not to exceed
$8,000,000 to fund cost comparison studies as referred
to in 38 U.S.C. 8110(a)(5); $17,008,447,000, plus reim-
bursements: Provided, That of the funds made available
under this heading, $570,000,000 is for the equipment
and land and structures object classifications only, which
amount shall not become available for obligation until Au-
gust 1, 1997, and shall remain available until September
30, 1998.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of
medical and prosthetic research and development as au-
thorized by 38 U.S.C. chapter 73, to remain available until
September 30, 1998, $257,000,000, plus reimbursements.
MEDICAL ADMINISTRATION AND MISCELLANEOUS
OPERATING EXPENSES
For necessary expenses in the administration of med-
ical, hospital, nursing home, domiciliary, construction,
supply, and research activities, as authorized by law; ad-
ministrative expenses in support of planning, design,
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project management, architectural, engineering, real prop-
erty acquisition and disposition, construction and renova-
tion of any facility under the jurisdiction or for the use
of the Department of Veterans Affairs, including site ac-
quisition; engineering and architectural activities not
charged to project cost; and research and development in
building construction technology; $59,207,000, plus reim-
bursements.
TRANSITIONAL HOUSING LOAN PROGRAM
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $7,000, as authorized
by Public Law 102–54, section 8, which shall be trans-
ferred from the ‘‘General post fund’’: Provided, That such
costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $70,000.
In addition, for administrative expenses to carry out
the direct loan program, $54,000, which shall be trans-
ferred from the ‘‘General post fund’’, as authorized by
Public Law 102–54, section 8.
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DEPARTMENTAL ADMINISTRATION
GENERAL OPERATING EXPENSES
For necessary operating expenses of the Department
of Veterans Affairs, not otherwise provided for, including
uniforms or allowances therefor; not to exceed $25,000 for
official reception and representation expenses; hire of pas-
senger motor vehicles; and reimbursement of the General
Services Administration for security guard services, and
the Department of Defense for the cost of overseas em-
ployee mail; $823,584,000: Provided, That of the amount
appropriated, and any other funds made available from
any other source for activities funded under this heading,
not to exceed $3,206,000 for personnel compensation and
benefits and $50,000 for travel shall be available in the
Office of the Secretary: Provided further, That during fis-
cal year 1997, notwithstanding any other provision of law,
the number of individuals employed by the Department
of Veterans Affairs (1) in other than ‘‘career appointee’’
positions in the Senior Executive Service shall not exceed
6, and (2) in schedule C positions shall not exceed 11:
Provided further, That funds under this heading shall be
available to administer the Service Members Occupational
Conversion and Training Act.
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NATIONAL CEMETERY SYSTEM
For necessary expenses for the maintenance and op-
eration of the National Cemetery System, not otherwise
provided for, including uniforms or allowances therefor;
cemeterial expenses as authorized by law; purchase of two
passenger motor vehicles for use in cemeterial operations;
and hire of passenger motor vehicles, $76,864,000.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the Inspector General Act of 1978,
as amended, $30,900,000.
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving
any of the facilities under the jurisdiction or for the use
of the Department of Veterans Affairs, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102,
8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit-
ed States Code, including planning, architectural and en-
gineering services, maintenance or guarantee period serv-
ices costs associated with equipment guarantees provided
under the project, services of claims analysts, offsite utility
and storm drainage system construction costs, and site ac-
quisition, where the estimated cost of a project is
$3,000,000 or more or where funds for a project were
made available in a previous major project appropriation,
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$245,358,000, to remain available until expended: Pro-
vided, That except for advance planning of projects funded
through the advance planning fund and the design of
projects funded through the design fund, none of these
funds shall be used for any project which has not been
considered and approved by the Congress in the budgetary
process: Provided further, That funds provided in this ap-
propriation for fiscal year 1997, for each approved project
shall be obligated (1) by the awarding of a construction
documents contract by September 30, 1997, and (2) by
the awarding of a construction contract by September 30,
1998: Provided further, That the Secretary shall promptly
report in writing to the Comptroller General and to the
Committees on Appropriations any approved major con-
struction project in which obligations are not incurred
within the time limitations established above; and the
Comptroller General shall review the report in accordance
with the procedures established by section 1015 of the Im-
poundment Control Act of 1974 (title X of Public Law
93–344): Provided further, That no funds from any other
account except the ‘‘Parking revolving fund’’, may be obli-
gated for constructing, altering, extending, or improving
a project which was approved in the budget process and
funded in this account until one year after substantial
completion and beneficial occupancy by the Department
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of Veterans Affairs of the project or any part thereof with
respect to that part only.
CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving
any of the facilities under the jurisdiction or for the use
of the Department of Veterans Affairs, including plan-
ning, architectural and engineering services, maintenance
or guarantee period services costs associated with equip-
ment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system
construction costs, and site acquisition, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102,
8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit-
ed States Code, where the estimated cost of a project is
less than $3,000,000; $160,000,000, to remain available
until expended, along with unobligated balances of pre-
vious ‘‘Construction, minor projects’’ appropriations which
are hereby made available for any project where the esti-
mated cost is less than $3,000,000: Provided, That funds
in this account shall be available for (1) repairs to any
of the nonmedical facilities under the jurisdiction or for
the use of the Department which are necessary because
of loss or damage caused by any natural disaster or catas-
trophe, and (2) temporary measures necessary to prevent
or to minimize further loss by such causes.
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PARKING REVOLVING FUND
For the parking revolving fund as authorized by 38
U.S.C. 8109, $12,300,000, together with income from fees
collected, to remain available until expended, which shall
be available for all authorized expenses except operations
and maintenance costs, which will be funded from ‘‘Medi-
cal care’’.
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE
FACILITIES
For grants to assist States to acquire or construct
State nursing home and domiciliary facilities and to re-
model, modify or alter existing hospital, nursing home and
domiciliary facilities in State homes, for furnishing care
to veterans as authorized by 38 U.S.C. 8131–8137,
$47,397,000, to remain available until expended.
GRANTS FOR THE CONSTRUCTION OF STATE VETERANS
CEMETERIES
For grants to aid States in establishing, expanding,
or improving State veteran cemeteries as authorized by 38
U.S.C. 2408, $1,000,000, to remain available until ex-
pended.
FRANCHISE FUND
(INCLUDING TRANSFER OF FUNDS)
There is hereby established in the Treasury a fran-
chise fund pilot, as authorized by section 403 of Public
Law 103–356, to be available as provided in such section
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for expenses and equipment necessary for the maintenance
and operation of such administrative services as the Sec-
retary determines may be performed more advantageously
as central services: Provided, That any inventories, equip-
ment and other assets pertaining to the services to be pro-
vided by the franchise fund, either on hand or on order,
less the related liabilities or unpaid obligations, and any
appropriations made hereafter for the purpose of provid-
ing capital, shall be used to capitalize the franchise fund:
Provided further, That the franchise fund may be paid in
advance from funds available to the Department and other
Federal agencies for which such centralized services are
performed, at rates which will return in full all expenses
of operation, including accrued leave, depreciation of fund
plant and equipment, amortization of automated data
processing (ADP) software and systems (either acquired
or donated), and an amount necessary to maintain a rea-
sonable operating reserve, as determined by the Secretary:
Provided further, That the franchise fund shall provide
services on a competitive basis: Provided further, That an
amount not to exceed four percent of the total annual in-
come to such fund may be retained in the fund for fiscal
year 1997 and each fiscal year thereafter, to remain avail-
able until expended, to be used for the acquisition of cap-
ital equipment and for the improvement and implementa-
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tion of Departmental financial management, ADP, and
other support systems: Provided further, That no later
than thirty days after the end of each fiscal year amounts
in excess of this reserve limitation shall be transferred to
the Treasury: Provided further, That such franchise fund
pilot shall terminate pursuant to section 403(f) of Public
Law 103–356.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
SEC. 101. Any appropriation for 1997 for ‘‘Com-
pensation and pensions’’, ‘‘Readjustment benefits’’, and
‘‘Veterans insurance and indemnities’’ may be transferred
to any other of the mentioned appropriations.
SEC. 102. Appropriations available to the Depart-
ment of Veterans Affairs for 1997 for salaries and ex-
penses shall be available for services authorized by 5
U.S.C. 3109.
SEC. 103. No appropriations in this Act for the De-
partment of Veterans Affairs (except the appropriations
for ‘‘Construction, major projects’’, ‘‘Construction, minor
projects’’, and the ‘‘Parking revolving fund’’) shall be
available for the purchase of any site for or toward the
construction of any new hospital or home.
SEC. 104. No appropriations in this Act for the De-
partment of Veterans Affairs shall be available for hos-
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pitalization or examination of any persons (except bene-
ficiaries entitled under the laws bestowing such benefits
to veterans, and persons receiving such treatment under
5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless re-
imbursement of cost is made to the ‘‘Medical care’’ ac-
count at such rates as may be fixed by the Secretary of
Veterans Affairs.
SEC. 105. Appropriations available to the Depart-
ment of Veterans Affairs for fiscal year 1997 for ‘‘Com-
pensation and pensions’’, ‘‘Readjustment benefits’’, and
‘‘Veterans insurance and indemnities’’ shall be available
for payment of prior year accrued obligations required to
be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1996.
SEC. 106. Appropriations accounts available to the
Department of Veterans Affairs for fiscal year 1997 shall
be available to pay prior year obligations of corresponding
prior year appropriations accounts resulting from title X
of the Competitive Equality Banking Act, Public Law
100–86, except that if such obligations are from trust
fund accounts they shall be payable from ‘‘Compensation
and pensions’’.
SEC. 107. Notwithstanding any other provision of
law, during fiscal year 1997, the Secretary of Veterans
Affairs shall, from the National Service Life Insurance
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Fund (38 U.S.C. 1920), the Veterans’ Special Life Insur-
ance Fund (38 U.S.C. 1923), and the United States Gov-
ernment Life Insurance Fund (38 U.S.C. 1955), reim-
burse the ‘‘General operating expenses’’ account for the
cost of administration of the insurance programs financed
through those accounts: Provided, That reimbursement
shall be made only from the surplus earnings accumulated
in an insurance program in fiscal year 1997, that are
available for dividends in that program after claims have
been paid and actuarially determined reserves have been
set aside: Provided further, That if the cost of administra-
tion of an insurance program exceeds the amount of sur-
plus earnings accumulated in that program, reimburse-
ment shall be made only to the extent of such surplus
earnings: Provided further, That the Secretary shall deter-
mine the cost of administration for fiscal year 1997, which
is properly allocable to the provision of each insurance pro-
gram and to the provision of any total disability income
insurance included in such insurance program.
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TITLE II
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
HOUSING PROGRAMS
ANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING
(INCLUDING RESCISSION)
For assistance under the United States Housing Act
of 1937, as amended (the ‘‘Act’’ herein) (42 U.S.C. 1437),
not otherwise provided for, $5,372,000,000, to remain
available until expended: Provided, That of the total
amount provided under this head, $4,572,000,000 shall be
for assistance under the United States Housing Act of
1937 (42 U.S.C. 1437) for use in connection with expiring
or terminating section 8 subsidy contracts of which
$975,000,000 shall be available on September 15, 1997:
Provided further, That the Secretary may determine not
to apply section 8(o)(6)(B) of the Act to housing vouchers
during fiscal year 1997: Provided further, That of the total
amount provided under this head, $800,000,000 shall be
for amendments to section 8 contracts other than con-
tracts for projects developed under section 202 of the
Housing Act of 1959, as amended: Provided further, That
50 per centum of the amounts of budget authority, or in
lieu thereof 50 per centum of the cash amounts associated
with such budget authority, that are recaptured from
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projects described in section 1012(a) of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988
(Public Law 100–628, 102 Stat. 3224, 3268) shall be re-
scinded, or in the case of cash, shall be remitted to the
Treasury, and such amounts of budget authority or cash
recaptured and not rescinded or remitted to the Treasury
shall be used by State housing finance agencies or local
governments or local housing agencies with projects ap-
proved by the Secretary of Housing and Urban Develop-
ment for which settlement occurred after January 1,
1992, in accordance with such section.
HOUSING FOR SPECIAL POPULATIONS: ELDERLY AND
DISABLED
For capital advances, including amendments to cap-
ital advance contracts, and for project rental assistance
and amendments thereto, for Supportive Housing for the
Elderly under section 202 of the Housing Act of 1959,
as amended, $595,000,000, to remain available until ex-
pended.
For capital advances, including amendments to cap-
ital advance contracts, and for project rental assistance
and amendments thereto, for Supportive Housing for Per-
sons with Disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act, $174,000,000,
to remain available until expended, of which 25 percent
shall be used for tenant-based rental assistance under sec-
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tion 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437(o)), in addition to any other amounts avail-
able for section 8(o).
The Secretary may waive any provision of section 202
of the Housing Act of 1959 and section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act (including
the provisions governing the terms and conditions of
project rental assistance) that the Secretary determines is
not necessary to achieve the objectives of these programs,
or that otherwise impedes the ability to develop, operate
or administer projects assisted under these programs, and
may make provision for alternative conditions or terms
where appropriate.
FLEXIBLE SUBSIDY FUND
(INCLUDING TRANSFER OF FUNDS)
From the fund established by section 236(g) of the
National Housing Act, as amended, all uncommitted bal-
ances of excess rental charges as of September 30, 1996,
and any collection during fiscal year 1997, shall be trans-
ferred, as authorized under such section, to the fund au-
thorized under section 201(j) of the Housing and Commu-
nity Development Amendments of 1978, as amended.
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RENTAL HOUSING ASSISTANCE
(RESCISSION)
The limitation otherwise applicable to the maximum
payments that may be required in any fiscal year by all
contracts entered into under section 236 of the National
Housing Act (12 U.S.C. 1715z–1) is reduced in fiscal year
1997 by not more than $2,000,000 in uncommitted bal-
ances of authorizations provided for this purpose in appro-
priations Acts.
PUBLIC AND INDIAN HOUSING
HOUSING CERTIFICATE FUND
For tenant-based assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f),
as amended, $166,000,000, to remain available until ex-
pended: Provided, That of the total amount provided
under this head, $50,000,000 shall be for nonelderly dis-
abled families relocating pursuant to designation of a pub-
lic housing development under section 7 of such Act: Pro-
vided further, That the remainder of the amount provided
under this head shall be used only for housing assistance
for relocating residents of properties (i) that are eligible
for assistance under the Low Income Housing Preserva-
tion 
and 
Resident 
Homeownership 
Act 
of 
1990
(LIHPRHA) or the Emergency Low-Income Housing
Preservation Act of 1987 (ELIHPA) in accordance with
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the terms and conditions of the tenth and eleventh provi-
sos of the second undesignated paragraph under the head
‘‘Annual Contributions for Assisted Housing’’ in Public
Law 104–134; (ii) that are owned by the Secretary and
being disposed of; (iii) for which section 8 assistance is
allocated under subsection (f) of section 204 of this Act
(relating to portfolio reengineering); or (iv) subject to spe-
cial workout assistance team intervention compliance ac-
tions: Provided further, That notwithstanding any other
provision of law, a public housing agency administering
certificate or voucher assistance provided under subsection
(b) or (o) of section 8 of the United States Housing Act
of 1937, as amended, shall delay for 3 months, the use
of any amounts of such assistance (or the certificate or
voucher representing assistance amounts) made available
by the termination during fiscal year 1997 of such assist-
ance on behalf of any family for any reason, but not later
than October 1, 1997, with the exception of any certifi-
cates assigned or committed to project-based assistance as
permitted otherwise by the Act, accomplished prior to the
effective date of this Act: Provided further, That section
8(c)(2)(A) of the United States Housing Act of 1937, as
amended (42 U.S.C. 1437f(c)(2)(A)) is further amend-
ed—
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(1) in the third sentence by inserting ‘‘and fis-
cal year 1997’’ after ‘‘1995’’; and
(2) in the last sentence by inserting ‘‘and fiscal
year 1997’’ after ‘‘1995’’.
PUBLIC HOUSING OPERATING FUND
For payments to public housing agencies and Indian
housing authorities for operating subsidies for low-income
housing projects as authorized by section 9 of the United
States Housing Act of 1937, as amended (42 U.S.C.
1437g), $2,850,000,000.
PUBLIC HOUSING CAPITAL FUND
(INCLUDING TRANSFERS OF FUNDS)
For the Public Housing Capital Fund program under
the United States Housing Act of 1937, as amended (42
U.S.C. 1437), $2,700,000,000, to remain available until
expended, of which $2,415,000,000 shall be for mod-
ernization 
of 
existing 
public 
housing 
projects;
$200,000,000 
for 
Indian 
Housing 
Development;
$50,000,000 for grants to public housing agencies (includ-
ing Indian housing authorities), nonprofit corporations,
and other appropriate entities for a supportive services
program to assist residents of public and assisted housing,
former residents of such housing receiving tenant-based
assistance under section 8 of such Act, and other low-in-
come families and individuals, principally for the benefit
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of public housing residents, to become self-sufficient;
$20,000,000 for technical assistance for the inspection of
public housing units, contract expertise, and training and
technical assistance directly or indirectly, under grants,
contracts, or cooperative agreements, to assist in the over-
sight and management of public and Indian housing
(whether or not the housing is being modernized with as-
sistance under this proviso) or tenant-based assistance, in-
cluding, but not limited to, an annual resident survey,
data collection and analysis, training and technical assist-
ance by or to officials and employees of the department
and of public housing agencies and to residents in connec-
tion with the public and Indian housing program or for
carrying out activities under section 6(j) of the Act;
$10,000,000 for the Tenant Opportunity Program; and
$5,000,000 for the Jobs-Plus Demonstration for Public
Housing families: Provided, That all obligated and unobli-
gated balances as of the end of fiscal year 1996 heretofore
provided for the development or acquisition costs of public
housing (including public housing for Indian families), for
modernization of existing public housing projects (includ-
ing such projects for Indian families), for public and In-
dian housing amendments, for modernization and develop-
ment technical assistance, for lease adjustments for the
section 23 program, and for the Family Investment Cen-
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ters program shall be transferred to amounts made avail-
able under this heading.
REVITALIZATION OF SEVERELY DISTRESSED PUBLIC
HOUSING (HOPE VII)
For grants to public housing agencies for assisting
in the demolition of obsolete public housing projects or
portions thereof, the revitalization (where appropriate) of
sites (including remaining public housing units) on which
such projects are located, replacement housing which will
avoid or lessen concentrations of very low-income families,
and tenant-based assistance in accordance with section 8
of the United States Housing Act of 1937; and for provid-
ing replacement housing and assisting tenants to be dis-
placed by the demolition, $550,000,000, to remain avail-
able until expended, of which the Secretary may use up
to $2,500,000 for technical assistance, to be provided di-
rectly or indirectly by grants, contracts or cooperative
agreements, including training and cost of necessary travel
for participants in such training, by or to officials and em-
ployees of the Department and of public housing agencies
and to residents: Provided, That, notwithstanding any
other provision of law, the funds made available to the
Housing Authority of New Orleans under HOPE VI for
purposes of Desire Homes, shall not be obligated or ex-
pended for on-site construction until an independent third
party has determined whether the site is appropriate.
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DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING
(INCLUDING TRANSFER OF FUNDS)
For grants to public and Indian housing agencies for
use in eliminating crime in public housing projects author-
ized by 42 U.S.C. 11901–11908, for grants for federally
assisted low-income housing authorized by 42 U.S.C.
11909, and for drug information clearinghouse services
authorized by 42 U.S.C. 11921–11925, $290,000,000, to
remain available until expended, $10,000,000 of which
shall be for grants, technical assistance, contracts and
other assistance training, program assessment, and execu-
tion for or on behalf of public housing agencies and resi-
dent organizations (including the cost of necessary travel
for participants in such training), $5,000,000 of which
shall be used in connection with efforts to combat violent
crime in public and assisted housing under the Operation
Safe Home program administered by the Inspector Gen-
eral of the Department of Housing and Urban Develop-
ment, and $5,000,000 of which shall be transferred to the
Office of Inspector General for Operation Safe Home: Pro-
vided, That the term ‘‘drug-related crime’’, as defined in
42 U.S.C. 11905(2), shall also include other types of
crime as determined by the Secretary.
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INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM
ACCOUNT
For the cost of guaranteed loans, as authorized by
section 184 of the Housing and Community Development
Act of 1992 (106 Stat. 3739), $3,000,000: Provided, That
such costs, including the costs of modifying such loans,
shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize total loan principal,
any part of which is to be guaranteed, not to exceed
$36,900,000.
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANTS FUND
(INCLUDING TRANSFER OF FUNDS)
For grants to States and units of general local gov-
ernment and for related expenses, not otherwise provided
for, to carry out a community development grants pro-
gram as authorized by title I of the Housing and Commu-
nity Development Act of 1974, as amended (the ‘‘Act’’
herein) (42 U.S.C. 5301), $4,300,000,000, to remain
available until September 30, 1999, of which $61,400,000
shall be for grants to Indian tribes notwithstanding sec-
tion 106(a)(1) of the Act: Provided, That $2,100,000 shall
be available as a grant to the Housing Assistance Council,
$1,000,000 shall be available as a grant to the National
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American Indian Housing Council, and $49,000,000 shall
be available for grants pursuant to section 107 of such
Act, including up to $14,000,000 for the development and
operation of a management information system: Provided
further, That not to exceed 20 percent of any grant made
with funds appropriated herein (other than a grant made
available under the preceding proviso to the Housing As-
sistance Council or the National American Indian Housing
Council, or a grant using funds under section 107(b)(3)
of the Housing and Community Development Act of 1974,
as amended) shall be expended for ‘‘Planning and Man-
agement Development’’ and ‘‘Administration’’ as defined
in regulations promulgated by the Department: Provided
further, That for fiscal year 1997 and thereafter, section
105(a)(25) of such Act, shall continue to be effective and
the termination and conforming provisions of section
907(b)(2) of the Cranston-Gonzalez National Affordable
Housing Act shall not be effective: Provided further, That
section 916(f) of the Cranston-Gonzalez National Afford-
able Housing Act is repealed.
Of the amount made available under this heading,
notwithstanding any other provision of law, $20,000,000
shall be available for youthbuild program activities author-
ized by subtitle D of title IV of the Cranston-Gonzalez
National Affordable Housing Act, as amended, and such
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activities shall be an eligible activity with respect to any
funds made available under this heading.
Of the amount made available under this heading,
notwithstanding any other provision of law, $60,000,000
shall be available for the lead-based paint hazard reduc-
tion program as authorized under sections 1011 and 1053
of the Residential Lead-Based Hazard Reduction Act of
1992.
Of the amount made available under this heading,
$40,000,000 shall be available for Economic Development
Initiative grants as authorized by section 232 of the Multi-
family Housing Property Disposition Reform Act of 1994,
Public Law 103–233, including $11,000,000 of the fore-
going amount shall, notwithstanding any other provision
of law, be used for Economic Development Grants in ac-
cordance with the terms and conditions specified for such
grants in the Report accompanying this Act.
For the cost of guaranteed loans, $31,750,000, as au-
thorized by section 108 of the Housing and Community
Development Act of 1974: Provided, That such costs, in-
cluding the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That these funds are
available to subsidize total loan principal, any part of
which is to be guaranteed, not to exceed $1,500,000,000,
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notwithstanding any aggregate limitation on outstanding
obligations guaranteed in section 108(k) of the Housing
and Community Development Act of 1974. In addition,
for administrative expenses to carry out the guaranteed
loan program, $675,000 which shall be transferred to and
merged with the appropriation for salaries and expenses.
HOME INVESTMENT PARTNERSHIPS PROGRAM
For the HOME investment partnerships program, as
authorized under title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (Public Law 101–625), as
amended, $1,400,000,000, to remain available until ex-
pended: Provided, That $21,000,000 shall be available for
grants to Indian Tribes: Provided further, That up to 0.5
percent, but not less than $7,000,000, shall be available
for the development and operation of a management infor-
mation system: Provided further, That $15,000,000 shall
be available for Housing Counseling under section 106 of
the Housing and Urban Development Act of 1968.
HOMELESS ASSISTANCE FUNDS
For the emergency shelter grants program (as au-
thorized under subtitle B of title IV of the Stewart B.
McKinney Homeless Assistance Act (Public Law 100–77),
as amended); the supportive housing program (as author-
ized under subtitle C of title IV of such Act); the section
8 moderate rehabilitation single room occupancy program
(as authorized under the United States Housing Act of
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1937, as amended) to assist homeless individuals pursuant
to section 441 of the Stewart B. McKinney Homeless As-
sistance Act; and the shelter plus care program (as au-
thorized under subtitle F of title IV of such Act),
$823,000,000, to remain available until expended.
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
(INCLUDING TRANSFER OF FUNDS)
For carrying out the Housing Opportunities for Per-
sons with AIDS program, as authorized by the AIDS
Housing 
Opportunity 
Act 
(42 
U.S.C. 
12901),
$171,000,000, to remain available until expended: Pro-
vided, That any amounts previously appropriated for such
program, and any related assets and liabilities, in the ‘‘An-
nual contributions for assisted housing’’ account, shall be
transferred to and merged with amounts in this account.
FEDERAL HOUSING ADMINISTRATION
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM
ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
During fiscal year 1997, commitments to guarantee
loans to carry out the purposes of section 203(b) of the
National Housing Act, as amended, shall not exceed a loan
principal of $110,000,000,000: Provided, That during fis-
cal year 1997, the Secretary shall sell assigned mortgage
notes having an unpaid principal balance of up to
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$2,000,000,000, which notes were originally insured under
section 203(b) of the National Housing Act: Provided fur-
ther, That the Secretary may use the amount of any nega-
tive subsidy resulting from the sale of such assigned mort-
gage notes during fiscal year 1997 for the purposes in-
cluded under this heading.
During fiscal year 1997, obligations to make direct
loans to carry out the purposes of section 204(g) of the
National Housing Act, as amended, shall not exceed
$200,000,000: Provided, That the foregoing amount shall
be for loans to nonprofit and governmental entities in con-
nection with sales of single family real properties owned
by the Secretary and formerly insured under section 203
of such Act.
For administrative expenses necessary to carry out
the guaranteed and direct loan program, $341,595,000,
to be derived from the FHA-mutual mortgage insurance
guaranteed loans receipt account, of which not to exceed
$334,483,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed $7,112,000 shall be transferred to the appropria-
tion for the Office of Inspector General.
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FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the cost of guaranteed loans, as authorized by
sections 238 and 519 of the National Housing Act (12
U.S.C. 1715z–3 and 1735c), including the cost of loan
guarantee modifications (as that term is defined in section
502 of the Congressional Budget Act of 1974, as amend-
ed) $85,000,0000, to remain available until expended:
Provided, That these funds are available to subsidize total
loan principal, any part of which is to be guaranteed, of
up to $17,400,000,000: Provided further, That during fis-
cal year 1997, the Secretary shall sell assigned notes hav-
ing an unpaid principal balance of up to $2,500,000,000,
which notes are held by the Secretary under the General
Insurance and Special Risk Insurance funds: Provided fur-
ther, That any amounts made available in any prior appro-
priations Act for the cost (as such term is defined in sec-
tion 502 of the Congressional Budget Act of 1974) of
guaranteed loans that are obligations of the funds estab-
lished under section 238 or 519 of the National Housing
Act that have not been obligated or that are deobligated
shall be available to the Secretary of Housing and Urban
Development in connection with the making of such guar-
antees and shall remain available until expended, notwith-
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standing the expiration of any period of availability other-
wise applicable to such amounts.
Gross obligations for the principal amount of direct
loans, as authorized by sections 204(g), 207(l), 238(a),
and 519(a) of the National Housing Act, shall not exceed
$120,000,000; of which not to exceed $100,000,000 shall
be for bridge financing in connection with the sale of mul-
tifamily real properties owned by the Secretary and for-
merly insured under such Act; and of which not to exceed
$20,000,000 shall be for loans to nonprofit and govern-
mental entities in connection with the sale of single-family
real properties owned by the Secretary and formerly in-
sured under such Act.
In addition, for administrative expenses necessary to
carry out the guaranteed and direct loan programs,
$202,470,000, of which $198,299,000 shall be transferred
to the appropriation for salaries and expenses; and of
which $4,171,000 shall be transferred to the appropriation
for the Office of Inspector General.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN
GUARANTEE PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
During fiscal year 1997, new commitments to issue
guarantees to carry out the purposes of section 306 of the