H. R. 4194—122
‘‘(A) supplement the aggregate amount of assistance
provided under this section with an amount of funds from
sources other than this section equal to not less than
5 percent of the amount provided under this section; and
‘‘(B) in addition to supplemental amounts provided in
accordance with subparagraph (A), if the applicant uses
more than 5 percent of the amount of assistance provided
under this section for services under subsection (d)(1)(L),
provide supplemental funds from sources other than this
section in an amount equal to the amount so used in
excess of 5 percent.
‘‘(2) SUPPLEMENTAL FUNDS.—In calculating the amount of
supplemental funds provided by a grantee for purposes of para-
graph (1), the grantee may include amounts from other Federal
sources, any State or local government sources, any private
contributions, the value of any donated material or building,
the value of any lease on a building, the value of the time
and services contributed by volunteers, and the value of any
other in-kind services or administrative costs provided.
‘‘(3) EXEMPTION.—If assistance provided under this title
will be used only for providing tenant-based assistance under
section 8 or demolition of public housing (without replacement),
the Secretary may exempt the applicant from the requirements
under paragraph (1)(A).
‘‘(d) ELIGIBLE ACTIVITIES.—
‘‘(1) IN GENERAL.—Grants under this section may be used
for activities to carry out revitalization programs for severely
distressed public housing, including—
‘‘(A) architectural and engineering work;
‘‘(B) redesign, rehabilitation, or reconfiguration of a
severely distressed public housing project, including the
site on which the project is located;
‘‘(C) the demolition, sale, or lease of the site, in whole
or in part;
‘‘(D) covering the administrative costs of the applicant,
which may not exceed such portion of the assistance pro-
vided under this section as the Secretary may prescribe;
‘‘(E) payment of reasonable legal fees;
‘‘(F) providing reasonable moving expenses for resi-
dents displaced as a result of the revitalization of the
project;
‘‘(G) economic development activities that promote the
economic self-sufficiency of residents under the revitaliza-
tion program;
‘‘(H) necessary management improvements;
‘‘(I) leveraging other resources, including additional
housing resources, retail supportive services, jobs, and
other economic development uses on or near the project
that will benefit future residents of the site;
‘‘(J) 
replacement 
housing 
(including 
appropriate
homeownership downpayment assistance for displaced resi-
dents or other appropriate replacement homeownership
activities) and rental assistance under section 8;
‘‘(K) transitional security activities; and
‘‘(L) necessary supportive services, except that not more
than 15 percent of the amount of any grant may be used
for activities under this paragraph.
H. R. 4194—123
‘‘(2) ENDOWMENT
TRUST
FOR
SUPPORTIVE
SERVICES.—In
using grant amounts under this section made available in fiscal
year 2000 or thereafter for supportive services under paragraph
(1)(L), a public housing agency may deposit such amounts in
an endowment trust to provide supportive services over such
period of time as the agency determines. Such amounts shall
be provided to the agency by the Secretary in a lump sum
when requested by the agency, shall be invested in a wise
and prudent manner, and shall be used (together with any
interest thereon earned) only for eligible uses pursuant to para-
graph (1)(L). A public housing agency may use amounts in
an endowment trust under this paragraph in conjunction with
other amounts donated or otherwise made available to the
trust for similar purposes.
‘‘(e) APPLICATION AND SELECTION.—
‘‘(1) APPLICATION.—An application for a grant under this
section shall demonstrate the appropriateness of the proposal
in the context of the local housing market relative to other
alternatives, and shall include such other information and be
submitted at such time and in accordance with such procedures,
as the Secretary shall prescribe.
‘‘(2) SELECTION
CRITERIA.—The Secretary shall establish
selection criteria for the award of grants under this section
and shall include such factors as—
‘‘(A) the relationship of the grant to the public housing
agency plan for the applicant and how the grant will result
in a revitalized site that will enhance the neighborhood
in which the project is located and enhance economic
opportunities for residents;
‘‘(B) the capability and record of the applicant public
housing agency, or any alternative management entity for
the agency, for managing large-scale redevelopment or mod-
ernization projects, meeting construction timetables, and
obligating amounts in a timely manner;
‘‘(C) the extent to which the applicant could undertake
such activities without a grant under this section;
‘‘(D) the extent of involvement of residents, State and
local governments, private service providers, financing enti-
ties, and developers, in the development of a revitalization
program for the project;
‘‘(E) the need for affordable housing in the community;
‘‘(F) the supply of other housing available and afford-
able to families receiving tenant-based assistance under
section 8;
‘‘(G) the amount of funds and other resources to be
leveraged by the grant;
‘‘(H) the extent of the need for, and the potential impact
of, the revitalization program; and
‘‘(I) such other factors as the Secretary considers appro-
priate.
‘‘(3) APPLICABILITY OF SELECTION CRITERIA.—The Secretary
may determine not to apply certain of the selection criteria
established pursuant to paragraph (2) when awarding grants
for demolition only, tenant-based assistance only, or other spe-
cific categories of revitalization activities. This section may
not be construed to require any application for a grant under
H. R. 4194—124
this section to include demolition of public housing or to pre-
clude use of grant amounts for rehabilitation or rebuilding
of any housing on an existing site.
‘‘(f ) COST LIMITS.—Subject to the provisions of this section,
the Secretary—
‘‘(1) shall establish cost limits on eligible activities under
this section sufficient to provide for effective revitalization pro-
grams; and
‘‘(2) may establish other cost limits on eligible activities
under this section.
‘‘(g) DISPOSITION AND REPLACEMENT.—Any severely distressed
public housing disposed of pursuant to a revitalization plan and
any public housing developed in lieu of such severely distressed
housing, shall be subject to the provisions of section 18. Severely
distressed public housing demolished pursuant to a revitalization
plan shall not be subject to the provisions of section 18.
‘‘(h) ADMINISTRATION BY OTHER ENTITIES.—The Secretary may
require a grantee under this section to make arrangements satisfac-
tory to the Secretary for use of an entity other than the public
housing agency to carry out activities assisted under the revitaliza-
tion plan, if the Secretary determines that such action will help
to effectuate the purposes of this section.
‘‘(i) WITHDRAWAL OF FUNDING.—If a grantee under this section
does not proceed within a reasonable timeframe, in the determina-
tion of the Secretary, the Secretary shall withdraw any grant
amounts under this section that have not been obligated by the
public housing agency. The Secretary shall redistribute any with-
drawn amounts to one or more other applicants eligible for assist-
ance under this section or to one or more other entities capable
of proceeding expeditiously in the same locality in carrying out
the revitalization plan of the original grantee.
‘‘( j) DEFINITIONS.—For purposes of this section, the following
definitions shall apply:
‘‘(1) APPLICANT.—The term ‘applicant’ means—
‘‘(A) any public housing agency that is not designated
as troubled pursuant to section 6( j)(2);
‘‘(B) any public housing agency for which a private
housing management agent has been selected, or a receiver
has been appointed, pursuant to section 6( j)(3); and
(C) any public housing agency that is designated as
troubled pursuant to section 6( j)(2) and that—
‘‘(i) is so designated principally for reasons that
will not affect the capacity of the agency to carry
out a revitalization program;
‘‘(ii) 
is 
making 
substantial 
progress 
toward
eliminating the deficiencies of the agency; or
‘‘(iii) is otherwise determined by the Secretary to
be capable of carrying out a revitalization program.
‘‘(2) SEVERELY
DISTRESSED
PUBLIC
HOUSING.—The term
‘severely distressed public housing’ means a public housing
project (or building in a project)—
‘‘(A) that—
‘‘(i) requires major redesign, reconstruction or
redevelopment, or partial or total demolition, to correct
serious deficiencies in the original design (including
inappropriately high population density), deferred
maintenance, physical deterioration or obsolescence of
H. R. 4194—125
major systems and other deficiencies in the physical
plant of the project;
‘‘(ii) is a significant contributing factor to the phys-
ical decline of and disinvestment by public and private
entities in the surrounding neighborhood;
‘‘(iii)(I) is occupied predominantly by families who
are very low-income families with children, are
unemployed, and dependent on various forms of public
assistance; or
‘‘(II) has high rates of vandalism and criminal
activity (including drug-related criminal activity) in
comparison to other housing in the area;
‘‘(iv) cannot be revitalized through assistance
under other programs, such as the program for capital
and operating assistance for public housing under this
Act, or the programs under sections 9 and 14 of the
United States Housing Act of 1937 (as in effect before
the effective date under under section 503(a) the Qual-
ity Housing and Work Responsibility Act of 1998),
because of cost constraints and inadequacy of available
amounts; and
‘‘(v) in the case of individual buildings, is, in the
Secretary’s determination, sufficiently separable from
the remainder of the project of which the building
is part to make use of the building feasible for purposes
of this section; or
‘‘(B) that was a project described in subparagraph (A)
that has been legally vacated or demolished, but for which
the Secretary has not yet provided replacement housing
assistance (other than tenant-based assistance).
‘‘(3) SUPPORTIVE SERVICES.—The term ‘supportive services’
includes all activities that will promote upward mobility, self-
sufficiency, and improved quality of life for the residents of
the public housing project involved, including literacy training,
job training, day care, transportation, and economic develop-
ment activities.
‘‘(k) 
GRANTEE
REPORTING.—The 
Secretary 
shall 
require
grantees of assistance under this section to report the sources
and uses of all amounts expended for revitalization plans.
‘‘(l) ANNUAL REPORT.—The Secretary shall submit to the Con-
gress an annual report setting forth—
‘‘(1) the number, type, and cost of public housing units
revitalized pursuant to this section;
‘‘(2) the status of projects identified as severely distressed
public housing;
‘‘(3) the amount and type of financial assistance provided
under and in conjunction with this section; and
‘‘(4) the recommendations of the Secretary for statutory
and regulatory improvements to the program established by
this section.
‘‘(m) FUNDING.—
‘‘(1) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are
authorized to be appropriated for grants under this section
$600,000,000 for fiscal year 1999 and such sums as may be
necessary for each of fiscal years 2000, 2001, and 2002.
‘‘(2) TECHNICAL
ASSISTANCE
AND
PROGRAM
OVERSIGHT.—
Of the amount appropriated pursuant to paragraph (1) for