102
with requirements established by the Sec-
retary, do not exceed the payment stand-
ard, the monthly assistance payment shall
be the amount by which the homeowner-
ship expenses exceed the highest of the fol-
lowing amounts, rounded to the nearest
dollar:
‘‘(I) 30 percent of the family’s
monthly adjusted income;
‘‘(II) 10 percent of the family’s
monthly income; or
‘‘(III) if the family is receiving
payments for welfare assistance from
a public agency and a part of such
payments, adjusted in accordance with
the family’s actual housing costs, is
specifically designated by such agency
to meet the family’s housing costs, the
portion of such payments which is so
designated.
‘‘(ii) Where the monthly homeowner-
ship expenses, as determined in accordance
with requirements established by the Sec-
retary, exceed the payment standard, the
monthly assistance payment shall be the
103
amount by which the applicable payment
standard exceeds the highest of the follow-
ing amounts, rounded to the nearest dollar:
‘‘(I) 30 percent of the family’s
monthly adjusted income;
‘‘(II) 10 percent of the family’s
monthly income; or
‘‘(III) if the family is receiving
payments for welfare assistance from
a public agency and a part of such
payments, adjusted in accordance with
the family’s actual housing costs, is
specifically designated by such agency
to meet the family’s housing costs, the
portion of such payments which is so
designated.’’.
(d) TECHNICAL AND CONFORMING AMENDMENTS TO
THE 1937 ACT; DELETION OF OBSOLETE PROVISIONS.—
(1) The second and third sentences of section
8(a) are hereby repealed.
(2) Section 8(b) is amended by—
(A) striking ‘‘RENTAL CERTIFICATES AND
OTHER EXISTING HOUSING PROGRAMS.—’’ and
inserting ‘‘CERTIFICATES AND OTHER EXIST-
ING HOUSING PROGRAMS.—(1)’’; and
104
(B) striking the second sentence.
(3) Section 8(c)(3) is amended by striking the
subparagraph designation ‘‘(A)’’ and striking all of
subparagraph (B).
(4) The first sentence of section 8(c)(4) is
amended by striking ‘‘or by a family that qualifies
to receive’’ and all that follows through ‘‘1990’’.
(5) Sections 8(c) (5) and (7) are hereby re-
pealed.
(6) Section 8(c)(8) is amended by inserting
after ‘‘section’’ the following: ‘‘(other than a con-
tract under section 8(o)(13))’’.
(7) Section 8(d)(1)(A) is amended—
(A) by inserting after the subparagraph
designation ‘‘(A)’’ the following: ‘‘except for as-
sistance under subsection (o),’’;
(B) in clause (i) by striking ‘‘(I)’’;
(C) in clause (i), by striking ‘‘and (II) 90
percent of such families in the case of assist-
ance not attached to a structure’’; and
(D) in clause (i), by striking ‘‘except’’ and
all that follows through the semicolon at the
end.
105
(8) Section 8(d)(2) is amended by striking the
third sentence of subparagraph (A) and all that fol-
lows through the end of paragraph (2).
(9) Section 8(f) is amended by—
(A) in paragraph (6), striking ‘‘(d)(2)’’
and inserting ‘‘(o)(13)’’; and
(B) in paragraph (7), striking ‘‘(b) or’’
and inserting before the period the following:
‘‘and that provides for the eligible family to se-
lect suitable housing and to move to other suit-
able housing’’.
(10) Section 8(j) is hereby repealed.
(11) Section 8(n) is hereby repealed.
(12) The first sentence of section 8(q)(1) and
sections
8(q)(2)(A)(i)
and
8(q)(2)(B)
are
each
amended by striking ‘‘subsections (b) and (o)’’ and
inserting ‘‘this section’’.
(13) Section 18(b)(3) is amended—
(A) in subparagraph (A)(v), by striking
‘‘(excluding vouchers under section 8(o))’’ each
place it appears;
(B)
in
subparagraph
(B),
by
striking
‘‘8(d)(2)(A)’’ and inserting ‘‘8(o)(13)’’;
(C) in subparagraph (B)(ii), by striking
‘‘(excluding vouchers under section 8(o))’’; and
106
(D) in subparagraph (C)(i), by striking
‘‘and vouchers’’.
(14) Section 21(b)(3) is amended—
(A) in the first sentence, by striking ‘‘cer-
tificate under section 8(b)(1) or a housing
voucher under section 8(o)’’ and inserting ‘‘ten-
ant-based assistance under section 8’’; and
(B) by striking the second sentence.
(15) Section 23(b)(3)(A) is amended by strik-
ing ‘‘Certificate and voucher assistance under sec-
tion 8 (b) and (o)’’ and inserting ‘‘Tenant-based as-
sistance under section 8’’.
(e) OTHER TECHNICAL AND CONFORMING AMEND-
MENTS.—
(1) Section 931 of the Cranston-Gonzalez Na-
tional Affordable Housing Act is amended by strik-
ing ‘‘assistance under the certificate and voucher
programs under sections 8 (b) and (o)’’ and insert-
ing ‘‘tenant-based assistance under section 8’’.
(2) Section 861(b)(1)(D) of the Cranston-Gon-
zalez National Affordable Housing Act is amended
by striking ‘‘certificates or vouchers’’ and inserting
‘‘assistance’’.
108
gram, where necessary for simplification of program ad-
ministration, avoidance of hardship, or other good cause.
Subtitle C—Streamline HUD
SEC. 6201. HUD STREAMLINING.
The Secretary of Housing and Urban Development
shall carry out the recommendation of the Report of the
National Performance Review, issued on September 7,
1993, that the Department streamline its headquarters,
regional, and field office structure and consolidate and re-
duce its size, without regard to the requirements of section
7(p) of the Department of Housing and Urban Develop-
ment Act.
Subtitle D—Refinance Section 235
Mortgages
SEC. 6301. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act is
amended—
(1) in paragraph (2)(C), by inserting after ‘‘re-
financed’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate
as permitted by subparagraph (E) or paid by the
Secretary as authorized by paragraph (4)(B)’’;
(2) in paragraph (4)—
109
(A) by inserting after ‘‘otherwise)’’ the fol-
lowing: ‘‘and the mortgagee with respect to the
amount described in paragraph (A)’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortga-
gee’’; and
(3) by revising paragraph (5) to read as follows:
‘‘(5) The Secretary shall use amounts of budget
authority recaptured from assistance payments con-
tracts relating to mortgages that are being refi-
nanced for assistance payments contracts with re-
spect to mortgages insured under this subsection.
The Secretary may also make such recaptured
amounts available for incentives under paragraph
(4)(A) and the costs incurred in connection with the
refinancing under paragraph (4)(B). For purposes
of subsection (c)(3)(A), the amount of recaptured
budget authority that the Secretary commits for as-
sistance payments contracts relating to mortgages
insured under this subsection and for amounts paid
under paragraph (4) shall not be construed as ‘un-
used.’ ’’.
110
Subtitle
E—Section
Rents
for
New Construction and Rehabili-
tation Projects
SEC. 6401. SECTION 8 RENTS FOR NEW CONSTRUCTION AND
REHABILITATION PROJECTS.
Notwithstanding any other provision of law, the max-
imum monthly contract rents for new construction and
substantial rehabilitation projects under section 8 of the
United States Housing Act of 1937 shall not be adjusted
as provided under section 8(c)(2)(A) for 1 year after the
date of enactment of this Act.
TITLE 
VI—DEPARTMENT 
OF
HOUSING AND URBAN DEVEL-
OPMENT
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 tripled since
111
1989, and, by the end of 1993, may exceed 75,000
units;
(3) the cost to the Federal Government of owning
and maintaining multifamily housing projects esca-
lated to approximately $250,000,000 in fiscal year
1992;
(4) the inventory of multifamily housing projects
subject to mortgages held by the Secretary has in-
creased dramatically, to more than 2,400 mortgages,
and approximately half of these mortgages, 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 MULTIFAMILY
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:
112
‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.
‘‘(a) GOALS.—The Secretary of Housing and Urban
Development 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 housing,
and homeownership opportunities for low-income
persons; and
113
‘‘(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:
‘‘(1) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘multifamily housing project’ means any multi-
family rental housing project which is, or prior to ac-
quisition 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
that, immediately prior to the assignment of the
mortgage on such project to, or the acquisition of such
mortgage by, the Secretary, was receiving any of the
following types of assistance:
‘‘(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 section
236 of the National Housing Act.
114
‘‘(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) additional assistance payments
under section 236(f)(2) of the National
Housing Act,
‘‘(iii) housing assistance payments
made under section 23 of the United States
Housing Act of 1937 (as in effect before
January 1, 1975), or
‘‘(iv) 
housing 
assistance 
payments
made under section 8 of the United States
Housing Act of 1937 (excluding payments
made for tenant-based assistance under sec-
tion 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 multifam-
ily housing project owned by the Secretary that was
115
a subsidized project immediately prior to its acquisi-
tion 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.
‘‘(5) AFFORDABLE.—A unit shall be considered
affordable if—
‘‘(A) for units occupied—
‘‘(i) by very low-income families, the
rent does not exceed 30 percent of 50 per-
cent of the area median income, as deter-
mined by the Secretary, with adjustments
for smaller and larger families, except that
the Secretary may establish the rent based
on an amount higher or lower than 50 per-
cent of the median for the area on the basis
of the Secretary’s findings that such vari-
ation is necessary because of prevailing lev-
els of construction costs or fair market
rents, or unusually high or low family in-
comes; and
‘‘(ii) by low-income families other than
very low-income families, the rent does not
exceed 30 percent of 80 percent of the area
116
median income, as determined by the Sec-
retary, except that the Secretary may estab-
lish the rent based on an amount higher or
lower than 80 percent of the median for the
area on the basis of the Secretary’s findings
that such variation is necessary because of
prevailing levels of construction costs or fair
market rents, or unusually high or low fam-
ily incomes; or
‘‘(B) the unit, or the family residing in the
unit, is receiving assistance under section 8 of
the United States Housing Act of 1937.
‘‘(6) LOW-INCOME FAMILIES AND VERY LOW-IN-
COME
FAMILIES.—The terms ‘low-income families’
and ‘very low-income families’ shall have the mean-
ings given the terms in section 3(b) of the United
States Housing Act of 1937.
‘‘(7) PREEXISTING TENANT.—The term ‘preexist-
ing tenant’ means, with respect to a multifamily
housing project, a family that—
‘‘(A) resides in a unit in the project; and
‘‘(B) immediately before foreclosure or ac-
quisition of the project by the Secretary, was re-
siding in a unit in the project.
117
‘‘(8) MARKET
AREA.—The term ‘market area’
means a market area determined by the Secretary for
purposes of establishing fair market rentals under sec-
tion 8(c) of the United States Housing Act of 1937.
‘‘(9) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(c) MANAGEMENT OR DISPOSITION OF PROPERTY.—
‘‘(1) DISPOSITION TO PURCHASERS.—The Sec-
retary may, in carrying out this section, 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 con-
sidering the low-income character of the project and
the market area in which the project is located and
the requirements of subsection (a), to a purchaser de-
termined by the Secretary to be capable of—
‘‘(A) satisfying the conditions of the disposi-
tion;
‘‘(B) implementing a sound financial and
physical management program that is designed
to enable the project to meet anticipated operat-
ing and repair expenses to ensure that the
project will remain in decent, safe, and sanitary
condition;
118
‘‘(C) responding to the needs of the tenants
and working cooperatively with tenant organiza-
tions;
‘‘(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 may, in carrying out this sec-
tion—
‘‘(A) contract for management services for a
multifamily housing project that is owned by the
Secretary (or for which the Secretary is mortga-
gee in possession), on a negotiated, competitive
bid, or other basis at a price determined by the
Secretary to be reasonable, with a manager the
Secretary has determined is capable 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 remain
in decent, safe, and sanitary condition;
119
‘‘(ii) responding to the needs of the ten-
ants 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;
‘‘(B) require the owner of a multifamily
housing project that is subject to a mortgage held
by the Secretary to contract for management
services for the project in the manner described
in subparagraph (A); and
‘‘(C) contract for management of such prop-
erties with nonprofit organizations and public
agencies, including public housing authorities.
‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—
‘‘(1) HOUSING PROJECTS OWNED BY THE SEC-
RETARY.—In the case of multifamily housing projects
that are owned by the Secretary (or for which the Sec-
retary is mortgagee in possession), the Secretary
shall—
120
‘‘(A) to the greatest extent possible, main-
tain all such occupied projects in a decent, safe,
and sanitary condition;
‘‘(B) to the greatest extent possible, main-
tain full occupancy in all such projects; and
‘‘(C) maintain all such projects for purposes
of providing rental or cooperative housing.
‘‘(2) HOUSING PROJECTS SUBJECT TO A MORT-
GAGE HELD BY SECRETARY.—In the case of any mul-
tifamily housing project that is subject to a mortgage
held by the Secretary, the Secretary shall require the
owner of the project to carry out the requirements of
paragraph (1).
‘‘(3) HOUSING STANDARDS.—In disposing of any
multifamily housing project under this section, the
Secretary shall enter into an agreement with the pur-
chaser under which the purchaser agrees that the
project will be rehabilitated so that it is in compli-
ance with, and will be maintained in compliance
with, any standards under applicable State or local
laws, rules, ordinances, or regulations relating to the
physical condition of the housing and any such stand-
ards established by the Secretary.
‘‘(e) REQUIRED ASSISTANCE.—In disposing of any
multifamily housing property under this section, the Sec-
121
retary shall take, separately or in combination, one or more
of the following actions:
‘‘(1) CONTRACT
WITH
OWNER
FOR
PROJECT-
BASED ASSISTANCE.—In the case of multifamily hous-
ing projects that are acquired by a purchaser other
than the Secretary at foreclosure or after sale by the
Secretary, the Secretary may enter into contracts
under section 8 of the United States Housing Act of
1937 (to the extent budget authority is available) with
owners of the projects, subject to the following require-
ments:
‘‘(A) SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED
PROJECTS
RECEIVING
MORTGAGE-RE-
LATED ASSISTANCE.—In the case of a subsidized
or formerly subsidized project referred to in sub-
paragraphs (A) through (C) of subsection
(b)(2)—
‘‘(i) the contract shall be sufficient to
assist at least all units covered by an assist-
ance contract under any of the authorities
referred to in subsection (b)(2)(D) before ac-
quisition, unless the Secretary acts pursu-
ant to the provisions of subparagraph (C);
‘‘(ii) the contract shall provide that,
when a vacancy occurs in any unit in the
122
project requiring project-based rental assist-
ance pursuant to this subparagraph that is
occupied by a family who is not eligible for
assistance under such section 8, the owner
shall lease the available unit to a family eli-
gible for assistance under such section 8;
and
‘‘(iii) the Secretary shall take actions
to ensure that any unit in any such project
that does not otherwise receive project-based
assistance under this subparagraph remains
available and affordable for the remaining
useful life of the project, as defined by the
Secretary; to carry out this clause, the Sec-
retary may require purchasers to establish
use or rent restrictions maintaining the af-
fordability of such units.
‘‘(B) SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED PROJECTS RECEIVING RENTAL ASSIST-
ANCE.—In the case of a subsidized or formerly
subsidized project referred to in subsection
(b)(2)(D) that is not subject to subparagraph
(A)—
‘‘(i) the contract shall be sufficient to
assist at least all units in the project that
123
are covered, or were covered immediately be-
fore foreclosure on or acquisition of the
project by the Secretary, by an assistance
contract under any of the provisions re-
ferred to in such subsection, unless the Sec-
retary acts pursuant to provisions of sub-
paragraph (C); and
‘‘(ii) the contract shall provide that,
when a vacancy occurs in any unit in the
project requiring project-based rental assist-
ance pursuant to this subparagraph that is
occupied by a family who is not eligible for
assistance under such section 8, the owner
shall lease the available unit to a family eli-
gible for assistance under such section 8.
‘‘(C) EXCEPTIONS.—In lieu of providing
project-based assistance under subparagraph
(A)(i) or (B)(i) for a project, 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 defined by the Secretary, if—
‘‘(i) the Secretary provides an increase
in project-based assistance for very low-in-
124
come persons for units within unsubsidized
projects located within the same market
area as the project otherwise required to be
assisted with project-based assistance under
subparagraph (A) or (B) that is at least
equivalent to the units otherwise required to
be so assisted; and
‘‘(ii) upon disposition of the project,
low-income families residing in units other-
wise required to be assisted with project-
based assistance under subparagraph (A) or
(B) receive tenant-based assistance under
such section 8.
‘‘(D) UNSUBSIDIZED PROJECTS.—Notwith-
standing actions taken pursuant to subpara-
graph (C), in the case of unsubsidized projects,
the contract shall 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) the new construction and
substantial 
rehabilitation 
program
under section 8(b)(2) of the United
125
States Housing Act of 1937 (as in ef-
fect before October 1, 1983);
‘‘(II) the property disposition pro-
gram under section 8(b) of such Act;
‘‘(III) the project-based certificate
program under section 8 of such Act;
‘‘(IV) the moderate rehabilitation
program under section 8(e)(2) of such
Act;
‘‘(V) section 23 of such Act (as in
effect before January 1, 1975);
‘‘(VI) the rent supplement pro-
gram under section 101 of the Housing
and Urban Development Act of 1965;
or
‘‘(VII) section 8 of the United
States Housing Act of 1937, following
conversion from assistance under sec-
tion 101 of the Housing and Urban
Development Act of 1965; and
‘‘(ii) tenant-based assistance under sec-
tion 8 of the United States Housing Act of
1937 for families that are preexisting ten-
ants of the project in units that, imme-
diately before foreclosure or acquisition of
126
the project by the Secretary, were covered by
an assistance contract under the loan man-
agement set-aside program under section
8(b) of the United States Housing Act of
1937 at such time.
‘‘(2) ANNUAL
CONTRIBUTION
CONTRACTS
FOR
TENANT-BASED ASSISTANCE.—In the case of multi-
family housing projects that are acquired by a pur-
chaser other than the Secretary at foreclosure or after
sale by the Secretary, the Secretary may enter into
annual contribution contracts with public housing
agencies to provide tenant-based assistance under sec-
tion 8 of the United States Housing Act of 1937 on
behalf of all low-income families who, on the date that
the project is acquired by the purchaser, reside in the
project and are eligible for such assistance, subject to
the following requirements:
‘‘(A) REQUIREMENT
OF
SUFFICIENT
AF-
FORDABLE
HOUSING
IN
AREA.—The Secretary
may not take action under this paragraph unless
the Secretary determines that there is available
in the area an adequate supply of habitable, af-
fordable housing for very low-income families
and other low-income families.
127
‘‘(B) LIMITATION
FOR
SUBSIDIZED
AND
FORMERLY
SUBSIDIZED
PROJECTS.—The Sec-
retary may not take actions under this para-
graph in connection with units in subsidized or
formerly subsidized projects for more than 10
percent of the aggregate number of units in such
projects disposed of by the Secretary annually.
‘‘(C) PROVISION OF PROJECT-BASED ASSIST-
ANCE
UNDER
CHANGED
CIRCUMSTANCES.—The
Secretary shall, to the extent such amounts are
available, provide project-based assistance under
section 8 of the United States Housing Act of
1937 for any units in a project for which the
Secretary has provided tenant-based assistance
under this paragraph if, and only to the extent
that, the owner demonstrates to the satisfaction
of the Secretary within 24 months after the date
of acquisition by the owner that—
‘‘(i) the provision of such project-based
assistance (I) is necessary to maintain the
financial viability of the project because of
changes occurring after such acquisition
that are beyond the control of the owner,
and (II) may reasonably be expected to
maintain such financial viability; or
128
‘‘(ii) sufficient habitable, affordable
housing for very low-income families and
other low-income families is not available
in the market area in which the project is
located.
Assistance provided pursuant to this subpara-
graph shall have a term of not more than 5
years.
‘‘(3) OTHER ASSISTANCE.—
‘‘(A) IN GENERAL.—In accordance with the
authority provided under the National Housing
Act, the Secretary may reduce the selling price,
apply use or rent restrictions on certain units,
or provide other financial assistance to the own-
ers of multifamily housing projects that are ac-
quired by a purchaser other than the Secretary
at foreclosure, or after sale by the Secretary, on
terms that ensure that—
‘‘(i) at least the units in the project
otherwise required to receive project-based
assistance pursuant to subparagraphs (A),
(B), or (D) of paragraph (1) are available
to and affordable by low-income persons;
and
129
‘‘(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) VERY LOW-INCOME TENANTS.—If, as a
result of actions taken pursuant to this para-
graph, the rents charged to any very low-income
families residing in the project who are otherwise
required (pursuant to subparagraph (A), (B), or
(D) of paragraph (1)) to receive project-based as-
sistance under section 8 of the United States
Housing Act of 1937 exceed the amount payable
as rent under section 3(a) of the United States
Housing Act of 1937, the Secretary shall provide
assistance under section 8 of such Act to such
families.
‘‘(4) TRANSFER FOR USE UNDER OTHER PRO-
GRAMS OF SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary may
transfer a multifamily housing project—
‘‘(i) to a public housing agency for use
of the project as public housing; or
‘‘(ii) to an entity eligible to own or op-
erate housing under assisted section 202 of
the Housing Act of 1959 or under section
130
811 of the Cranston-Gonzalez National Af-
fordable Housing Act for use as supportive
housing under either of such sections.
‘‘(B) REQUIREMENTS
FOR
AGREEMENT.—
An agreement providing for the transfer of a
project described in subparagraph (A) shall—
‘‘(i) contain such terms, conditions,
and limitations as the Secretary determines
appropriate, including requirements to en-
sure use of the project as public housing,
supportive housing under section 202 of the
Housing Act of 1959, or supportive housing
under section 811 of the Cranston-Gonzalez
National Affordable Housing Act, as appli-
cable; and
‘‘(ii) ensure that no tenant of the
project will be displaced as a result of ac-
tions taken under this paragraph.
‘‘(f) DISCRETIONARY ASSISTANCE.—In addition to the
actions taken under subsection (e) for a multifamily hous-
ing project, the Secretary may take any of the following
actions:
‘‘(1) SHORT-TERM LOANS.—The Secretary may
provide a short-term loan to facilitate the sale of a
131
multifamily housing project to a nonprofit organiza-
tion or a public agency if—
‘‘(A) authority for such loans is provided in
advance in an appropriation Act;
‘‘(B) such loan has a term of not more than
5 years;
‘‘(C) the Secretary determines, based upon
documentation provided to the Secretary, that
the borrower has obtained a commitment of per-
manent financing to replace the short-term loan
from a lender who meets standards established by
the Secretary; and
‘‘(D) the terms of such loan is consistent
with prevailing practices in the marketplace or
the provision of such loan results in no cost to
the Government, as defined in section 502 of the
Congressional Budget Act of 1974.
‘‘(2) TENANT-BASED
ASSISTANCE.—The Sec-
retary may make available tenant-based assistance
under section 8 of the United States Housing Act of
1937 to very low-income families residing in a multi-
family housing project that do not otherwise qualify
for project-based assistance.
‘‘(3) ALTERNATIVE USES.—
132
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of law, after providing notice to
and an opportunity to comment by existing ten-
ants, the Secretary may allow not more than—
‘‘(i) 10 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, in-
cluding low-income homeownership oppor-
tunities, or in any particular project, com-
munity space, office space for tenant or
housing-related service providers or security
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 manner, if
the Secretary and the unit of general local
government or area-wide governing body de-
termine that such use will further fair hous-
ing, community development, or neighbor-
hood revitalization goals.
133
‘‘(B) 
DISPLACEMENT
PROTECTION.—The
Secretary may take actions under subparagraph
(A) only if—
‘‘(i) tenant-based rental assistance
under section 8 of the United States Hous-
ing Act of 1937 is made available to each
eligible family residing in the project that is
displaced as a result of such actions; and
‘‘(ii) the Secretary determines that suf-
ficient habitable, affordable rental housing
is available in the market area in which the
project is located to allow use of such assist-
ance.
‘‘(g) 
REQUIRED
ASSISTANCE
FOR
CERTAIN
PROJECTS.—In disposing under this section of multifamily
housing projects, the Secretary shall, to the extent that such
assistance is available—
‘‘(1) in the case of any project located in a mar-
ket area in which habitable, affordable rental housing
for very low-income families is not sufficiently avail-
able, provide tenant-based or project-based rental as-
sistance under section 8 of the United States Housing
Act of 1937 (depending on the circumstances of the
family) to very low-income families who are preexist-
134
ing tenants of the project and do not otherwise qualify
for project-based assistance; and
‘‘(2) provide project-based assistance for very
low-income families who are preexisting tenants of the
project to the extent that such assistance is necessary
to maintain the financial viability of the project and
is reasonably expected to maintain such financial vi-
ability.
‘‘(h) RENT RESTRICTIONS.—
‘‘(1) AUTHORITY
FOR
USE
IN
UNSUBSIDIZED
PROJECTS.—In carrying out the goals specified in
subsection (a), the Secretary may require certain
units in unsubsidized projects to be subject to use or
rent restrictions providing that such units will be
available to and affordable by very low-income per-
sons for the remaining useful life of the property, as
defined by the Secretary.
‘‘(2) REQUIREMENT
REGARDING
SUBSIDIZED
AND FORMERLY SUBSIDIZED PROJECTS.—In dispos-
ing under this section of any subsidized or formerly
subsidized multifamily housing project, the Secretary
shall require rent restrictions providing that any un-
assisted very low-income family who resides in a unit
in the project on the date of disposition may not pay
as rent for the unit an amount in excess of 30 percent
135
of the adjusted income of the family at any time dur-
ing the period beginning upon such disposition and
ending upon the earlier of—
‘‘(A) 15 years after such disposition; or
‘‘(B) the time at which the family first fails
to qualify as a very low-income family.
‘‘(3) REQUIREMENT REGARDING UNSUBSIDIZED
PROJECTS.— Unless the Secretary determines that the
applicability of rent restrictions under this para-
graph to a project would unreasonably impede the
disposition of the project, in disposing under this sec-
tion of any unsubsidized multifamily housing project
the Secretary shall require rent restrictions providing
that any unassisted very low-income family who re-
sides in a unit in the project on the date of disposi-
tion may not pay as rent for the unit an amount in
excess of 30 percent of the adjusted income of the fam-
ily at any time during the period beginning upon
such disposition and ending upon the earlier of—
‘‘(A) 15 years after such disposition; or
‘‘(B) the time at which the family first fails
to qualify as a very low-income family.
‘‘(4) PHASE-IN OF RENT INCREASES.—If the dis-
position under this section of any multifamily hous-
ing project results in any rent increases for any very
136
low-income families who are preexisting tenants of the
project and are paying less than 30 percent of the ad-
justed income of the family for rent, the Secretary
shall provide that such rent increases shall be phased
in equally over a period of not less than 3 years.
‘‘(5) DEFINITION OF ‘UNASSISTED VERY LOW-IN-
COME FAMILY’.—For purposes of this subsection, the
term ‘unassisted very low-income family’ means a
very low-income family who resides in a unit that is
not assisted with project-based assistance under sec-
tion 8 of the United States Housing Act of 1937 and
on whose behalf tenant-based assistance under such
section is not provided.
‘‘(i) 
CONTRACT
REQUIREMENTS.—Contracts 
for
project-based rental assistance under section 8 of the United
States Housing Act of 1937 provided pursuant to this sec-
tion shall be subject to the following requirements:
‘‘(1) CONTRACT TERM.—The contract shall have
a term of 15 years, except that—
‘‘(A) the term may be less than 15 years to
the extent that the Secretary finds that, based on
the rental charges and financing for the multi-
family housing project to which the contract re-
lates, the financial viability of the project can be
137
maintained under a contract having such a
term;
‘‘(B) to the extent that units receive project-
based assistance for a contract term of less than
15 years, the Secretary shall require that the
mount of rent payable by tenants of the project
for such units shall not exceed the amount pay-
able for rent under section 3(a) of the United
States Housing Act of 1937 for a period of at
least 15 years; and
‘‘(C) the term may be less than 15 years if
such assistance is provided—
‘‘(i) under a contract authorized under
section 6 of the HUD Demonstration Act of
1993; and
‘‘(ii) pursuant to a disposition plan
under this section for a project that is deter-
mined by the Secretary to be otherwise in
compliance with this section.
‘‘(2) CONTRACT RENT.—
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish contract rents for section 8 project-based
rental contracts issued under this section at lev-
els that provide sufficient amounts for the nec-
essary costs of rehabilitating and operating the
138
multifamily housing project and do not exceed
144 percent of the existing housing fair market
rentals for the market area in which the project
assisted under the contract is located.
‘‘(B) UP-FRONT GRANTS AND LOANS.—If the
Secretary determines that action under this sub-
paragraph is more cost-effective, the Secretary
may utilize the budget authority provided for
contracts issued under this section for project-
based assistance under section 8 of the United
States Housing Act of 1937 to (in addition to
providing project-based section 8 rental assist-
ance)—
‘‘(i) provide up-front grants to non-
profit organizations or public housing agen-
cies for the necessary cost of rehabilitation;
or
‘‘(ii) pay any cost to the Government,
as defined in section 502 of the Congres-
sional Budget Act of 1974, for loans made
pursuant to subsection (f)(1).
‘‘(j) DISPOSITION PLAN.—
‘‘(1) IN GENERAL.—Prior to the sale of a multi-
family housing project that is owned by the Secretary,
the Secretary shall develop an initial disposition plan
139
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 ac-
cordance with this section. The initial sales price
shall be reasonably related to the intended use of the
property after sale, any rehabilitation requirements
for the project, the rents for units in the project that
can be supported by the market, the amount of rental
assistance available for the project under section 8 of
the United States Housing Act of 1937, and the occu-
pancy profile of the project.
‘‘(2) COMMUNITY AND TENANT INPUT.—In carry-
ing out this section, the Secretary shall develop proce-
dures—
‘‘(A) to obtain appropriate and timely
input into disposition plans from officials of the
unit of general local government affected, the
community in which the project is situated, and
the tenants of the project; and
‘‘(B) to facilitate, where feasible and appro-
priate, the sale of multifamily housing projects
to existing tenant organizations with dem-
onstrated capacity, to public or nonprofit enti-
140
ties that represent or are affiliated with existing
tenant organizations, or to other public or non-
profit entities.
‘‘(3) TECHNICAL ASSISTANCE.—To carry out the
procedures developed under paragraph (2), the Sec-
retary may provide technical assistance, directly or
indirectly, and may use amounts available for tech-
nical assistance under the Emergency Low Income
Housing Preservation Act of 1987, subtitle C of 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 this section, for the provision of technical as-
sistance under this paragraph. Recipients of technical
assistance funding under the provisions referred to in
this paragraph shall be permitted to provide technical
assistance to the extent of such funding under any of
such provisions or under this paragraph, notwith-
standing the source of the funding.
‘‘(k) RIGHT
OF FIRST REFUSAL
FOR LOCAL
AND
STATE GOVERNMENT AGENCIES.—
‘‘(1) NOTIFICATION OF ACQUISITION OF TITLE.—
Not later than 30 days after acquiring title to a mul-
tifamily housing project, the Secretary shall notify the
unit of general local government (which, for purposes
141
of this subsection, shall include any public housing
agency) for the area in which the project is located
and the State agency or agencies designated by the
Governor of the State in which the project is located
of such acquisition.
‘‘(2) RIGHT OF FIRST REFUSAL.—During the pe-
riod beginning upon acquisition of title to a multi-
family housing project and ending 45 days after com-
pletion of notification under paragraph (1), the Sec-
retary may offer to sell and may sell the project only
to the unit of general local government or the des-
ignated State agency.
‘‘(3) EXPRESSION
OF
INTEREST.—The unit of
general local government or designated State agency
may submit to the Secretary a preliminary expres-
sion of interest in a project not later than 45 days
after receiving notification from the Secretary under
paragraph (1) regarding the project. The Secretary
may take such actions as may be necessary to require
the unit of general local government or designated
State agency to substantiate such interest.
‘‘(4) TIMELY EXPRESSION OF INTEREST.—If the
unit of general local government or designated State
agency has submitted an expression of interest in a
project before the expiration of the 45-day period re-
142
ferred to in paragraph (3) and has substantiated such
interest if requested, the Secretary, upon approval of
a disposition plan for the project, shall—
‘‘(A) notify the unit of general local govern-
ment and designated State agency of the terms
and conditions of the disposition plan; and
‘‘(B) provide that, for 90 days after the date
of such notification, only the unit of general
local government or designated State agency
may make an offer to purchase the project.
‘‘(5) FAILURE TO TIMELY EXPRESS INTEREST.—
If the unit of general local government or designated
State agency does not timely express and, if requested,
substantiate interest in a project as provided in para-
graph (4), the Secretary may offer the project for sale
to any interested person or entity upon approval of
the disposition plan for the project.
‘‘(6) ACCEPTANCE OF OFFERS.—If the unit of
general local government or designated State agency
timely expresses and, if requested, substantiates inter-
est in a project as provided in paragraph (4), the
Secretary shall accept an offer made by the unit of
general local government or designated State agency
during the 90-day period for the project under para-
graph (4)(B) that complies with the terms and condi-
143
tions of the disposition plan for the project. The Sec-
retary may accept an offer that does not comply with
the terms and conditions of the disposition plan if the
Secretary determines that the offer will further the
goals specified in subsection (a) by actions that in-
clude extension of the duration of low-income afford-
ability restrictions or otherwise restructuring the
transaction in a manner that enhances the long-term
affordability for low-income persons. The Secretary
may reduce the initial sales price in exchange for the
extension of low-income affordability restrictions be-
yond the period of assistance contemplated by the at-
tachment of assistance pursuant to subsection (i)(1)
and in order to facilitate affordable rents.
‘‘(7) FAILURE TO SELL TO LOCAL OR STATE GOV-
ERNMENT AGENCY.—If the Secretary and the unit of
general local government or designated State agency
cannot reach agreement on an offer for purchase of a
project within the 90-day period for the project under
paragraph (4)(B), the Secretary may offer the project
for sale to the general public.
‘‘(8) PURCHASE
BY
UNIT
OF
GENERAL
LOCAL
GOVERNMENT OR DESIGNATED STATE AGENCY.—Not-
withstanding any other provision of law, a unit of
general local government (including a public housing
144
agency) or designated State agency may purchase a
subsidized or formerly subsidized project in accord-
ance with this subsection.
‘‘(9) 
APPLICABILITY.—This 
subsection 
shall
apply to projects that are acquired on or after the ef-
fective date of this subsection. With respect to projects
acquired before such effective date, the Secretary may
apply—
‘‘(A) the requirements of paragraphs (2)
and (3) of section 203(e) (as in effect imme-
diately before the effective date of this sub-
section); or
‘‘(B) the requirements of paragraphs (1)
through (7) of this subsection, if—
‘‘(i) the Secretary gives the unit of gen-
eral local government or designated State
agency 45 days to express interest in the
project; and
‘‘(ii) the unit of general local govern-
ment or designated State agency expresses
interest in the project before the expiration
of the 45-day period, and substantiates such
interest if requested, within 90 days from
the date of notification of the terms and
145
conditions of the disposition plan to make
an offer to purchase the project.
‘‘(10) TRANSFER BY LOCAL OR STATE GOVERN-
MENT
AGENCY
PURCHASERS.—The Secretary shall
permit units of general local government and des-
ignated State agencies to transfer multifamily hous-
ing projects acquired under the right of first refusal
under this subsection to a private entity, but only if
the local government or State agency clearly identifies
its intention to transfer the project in the offer to pur-
chase the property accepted by the Secretary under
this subsection.
‘‘(l) DISPLACEMENT OF TENANTS AND RELOCATION
ASSISTANCE.—
‘‘(1) IN
GENERAL.—Whenever tenants will be
displaced as a result of the disposition of, or repairs
to, a multifamily housing project that is owned by the
Secretary (or for which the Secretary is mortgagee in
possession), the Secretary shall identify tenants who
will be displaced and shall notify all such tenants of
their pending displacement and of any relocation as-
sistance that may be available. In the case of the dis-
position of tenants of a multifamily housing project
that is not owned by the Secretary (and for which the
Secretary is not mortgagee in possession), the Sec-
146
retary shall require the owner of the project to carry
out the requirements of this paragraph.
‘‘(2) RIGHTS OF DISPLACED TENANTS.—The Sec-
retary shall ensure for any such tenant (who contin-
ues to meet applicable qualification standards) the
right—
‘‘(A) to return, whenever possible, to a re-
paired unit;
‘‘(B) to occupy a unit in another multifam-
ily housing project owned by the Secretary;
‘‘(C) to obtain housing assistance under the
United States Housing Act of 1937; or
‘‘(D) to receive any other available reloca-
tion assistance as the Secretary determines to be
appropriate.
‘‘(m) MORTGAGE AND PROJECT SALES.—
‘‘(1) IN GENERAL.—The Secretary may not ap-
prove the sale of any loan or mortgage held by the
Secretary (including any loan or mortgage owned by
the Government National Mortgage Association) on
any subsidized project or formerly subsidized project,
unless such sale is made as part of a transaction that
will ensure that such project will continue to operate
at least until the maturity date of such loan or mort-
gage, in a manner that will provide rental housing on
147
terms at least as advantageous to existing and future
tenants as the terms required by the program under
which the loan or mortgage was made or insured
prior to the assignment of the loan or mortgage on
such project to the Secretary.
‘‘(2) SALE
OF
CERTAIN
PROJECTS.—The Sec-
retary may not approve the sale of any subsidized
project—
‘‘(A) that is subject to a mortgage held by
the Secretary, or
‘‘(B) if the sale transaction involves the pro-
vision of any additional subsidy funds by the
Secretary or a recasting of the mortgage,
unless such sale is made as part of a transaction that
will ensure that the project will continue to operate,
at least until the maturity date of the loan or mort-
gage, in a manner that will provide rental housing on
terms at least as advantageous to existing and future
tenants as the terms required by the program under
which the loan or mortgage was made or insured
prior to the proposed sale of the project.
‘‘(3) MORTGAGE SALES TO STATE AND LOCAL
GOVERNMENTS.—Notwithstanding any provision of
law that requires competitive sales or bidding, the
Secretary may carry out negotiated sales of subsidized
148
or formerly subsidized mortgages held by the Sec-
retary, without the competitive selection of purchasers
or intermediaries, to units of general local govern-
ment or State agencies, or groups of investors that in-
clude at least one such unit of general local govern-
ment or State agency, if the negotiations are con-
ducted with such agencies, except that—
‘‘(A) the terms of any such sale shall in-
clude the agreement of the purchasing agency or
unit of local government or State agency to act
as mortgagee or owner of a beneficial interest 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 applicable
mortgage insurance program, including, to the
extent the Secretary determines appropriate, au-
thorizing such unit of local government or State
agency to enforce the provisions of any regu-
latory 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-
149
ment or State agency, consistent with the expec-
tation and intention that the projects financed
will be retained for use under the applicable
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.
‘‘(n) REPORT TO CONGRESS.—Not later than June 1
of each year, the Secretary shall submit to the Congress a
report describing the status of multifamily housing projects
owned by or subject to mortgages held by the Secretary. The
report shall include—
‘‘(1) the name, address, and size of each project;
‘‘(2) the nature and date of assignment of each
project;
‘‘(3) the status of the mortgage for each project;
‘‘(4) the physical condition of each project;
‘‘(5) for each subsidized or formerly subsidized
project, an occupancy profile of the project, stating
the income, family size, race, and ethnic origin of
current residents and the rents paid by such residents;
150
‘‘(6) the proportion of units in each project that
are vacant;
‘‘(7) the date on which the Secretary became
mortgagee in possession of each project, if applicable;
‘‘(8) the date and conditions of any foreclosure
sale for a project;
‘‘(9) the date of acquisition of each project by the
Secretary, if applicable;
‘‘(10) the date and conditions of any property
disposition sale for a project;
‘‘(11) a description of actions undertaken pursu-
ant to this section, including a description of the ef-
fectiveness of such actions and any impediments to
the disposition or management of multifamily hous-
ing projects;
‘‘(12) a description of any of the functions per-
formed in connection with this section that are con-
tracted out to public or private entities or to States;
and
‘‘(13) a description of the activities carried out
under subsection (k) during the preceding year.’’.
(c) CLARIFICATION OF FEDERAL PREFERENCES.—
(1) 
PUBLIC
HOUSING
TENANCY.—Section
6(c)(4)(A)(i) of the United States Housing Act of
1937 (42 U.S.C. 1437d(c)(4)(A)(i)) is amended by in-
151
serting after ‘‘displaced’’ the following: ‘‘(including
displacement because of disposition of a multifamily
housing project under section 203 of the Housing and
Community Development Amendments of 1978)’’.
(2) 
SECTION
ASSISTANCE.—Section
8(d)(1)(A)(i) of the United States Housing Act of
1937 (42 U.S.C. 1437f(d)(1)(A)(i)) is amended by in-
serting after ‘‘displaced’’ the following: ‘‘(including
displacement because of disposition of a multifamily
housing project under section 203 of the Housing and
Community Development Amendments of 1978)’’.
(d) DEFINITION OF OWNER.—Section 8(f)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(f)(1))
is amended by inserting ‘‘an agency of the Federal Govern-
ment,’’ after ‘‘cooperative,’’.
(e) AMENDMENT TO NATIONAL HOUSING ACT.—Title
V of the National Housing Act (12 U.S.C. 1731a et seq.)
is amended by adding at the end the following new section:
‘‘PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY HOUSING
PROJECTS
‘‘SEC. 541. (a) AUTHORITY.—Notwithstanding any
other provision of law, if the Secretary is requested to accept
assignment of a mortgage insured by the Secretary that cov-
ers a multifamily housing project (as such term is defined
in section 203(b) of the Housing and Community Develop-
ment Amendments of 1978) and the Secretary determines
152
that partial payment would be less costly to the Federal
Government than other reasonable alternatives for main-
taining the low-income character of the project, the Sec-
retary may request the mortgagee, in lieu of assignment,
to—
‘‘(1) accept partial payment of the claim under
the mortgage insurance contract; and
‘‘(2) recast the mortgage, under such terms and
conditions as the Secretary may determine.
‘‘(b) REPAYMENT.—As a condition to a partial claim
payment under this section, the mortgagor shall agree to
repay to the Secretary the amount of such payment and
such obligation shall be secured by a second mortgage on
the property on such terms and conditions as the Secretary
may determine.’’.
(f) EFFECTIVE DATE.—The Secretary shall issue in-
terim regulations necessary to implement the amendments
made by subsections (b) through (d) not later than 90 days
after the date of the enactment of this Act. Such interim
regulations shall take effect upon issuance and invite public
comment on the interim regulations. The Secretary shall
issue final regulations to implement such amendments after
opportunity for such public comment, but not later than
12 months after the date of issuance of such interim regula-
tions.
153
SEC. 6002. SECTION 235 MORTGAGE REFINANCING.
Section 235(r) of the National Housing Act is amend-
ed—
(1) in paragraph (2)(C), by inserting after ‘‘refi-
nanced’’ the following: ‘‘, plus the costs incurred in
connection with the refinancing as described in para-
graph (4)(B) to the extent that the amount for those
costs is not otherwise included in the interest rate as
permitted by subparagraph (E) or paid by the Sec-
retary as authorized by paragraph (4)(B)’’;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by inserting after ‘‘otherwise)’’ the following:
‘‘and the mortgagee (with respect to the amount
described in subparagraph (A))’’; and
(B) in subparagraph (A), by inserting after
‘‘mortgagor’’ the following: ‘‘and the mortgagee’’;
and
(3) by amending paragraph (5) to read as fol-
lows:
‘‘(5) The Secretary shall use amounts of budget author-
ity recaptured from assistance payments contracts relating
to mortgages that are being refinanced for assistance pay-
ments contracts with respect to mortgages insured under
this subsection. The Secretary may also make such recap-
tured amounts available for incentives under paragraph
154
(4)(A) and the costs incurred in connection with the refi-
nancing under paragraph (4)(B). For purposes of sub-
section (c)(3)(A), the amount of recaptured budget author-
ity that the Secretary commits for assistance payments con-
tracts relating to mortgages insured under this subsection
and for amounts paid under paragraph (4) shall not be
construed as unused.’’.
SEC. 6003. USE OF EMERGENCY ASSISTANCE FUNDS FOR
RESIDENCY IN MULTIFAMILY HOUSING DIS-
POSITION PROJECTS.
Section 203(f) of the Housing and Community Devel-
opment Amendments of 1978 (12 U.S.C. 1701z–11), as
amended by section 6001 of this Act, is further amended
by adding at the end the following new paragraph:
‘‘(4) EMERGENCY ASSISTANCE FUNDS.—The Sec-
retary may make arrangements with State agencies
and units of general local government of States receiv-
ing emergency assistance under part A of title IV of
the Social Security Act for the provision of assistance
under such Act on behalf of eligible families who
would reside in any multifamily housing projects.’’.
SEC. 6004. ADDITIONAL EMPLOYEES TO FACILITATE DIS-
POSITION OF FHA INVENTORY PROPERTIES.
Notwithstanding any other provision of law, during
fiscal years 1993, 1994, and 1995 amounts in the various
155
funds of the Federal Housing Administration otherwise
available to the Secretary of Housing and Urban Develop-
ment for non-overhead expenses associated with processing,
accounting, loan servicing, asset management, and disposi-
tion services may be used by the Secretary for personnel
compensation and benefits for temporary employees of the
Department of Housing and Urban Development employed
to manage, service, and dispose of single family and multi-
family properties insured by, assigned to, or owned by the
Secretary. The Secretary may employ not more than 400
temporary employees at any one time using amounts made
available pursuant to this section, no such employee may
be employed in a temporary position pursuant to this sec-
tion for a period in excess of 2 years, and such employees
shall not be considered for purposes of any personnel ceiling
applicable to the Department of Housing and Urban Devel-
opment or any unit therein or any personnel ceiling appli-
cable to temporary employees of the Federal Government.
SEC. 6005. HUD STREAMLINING.
The Secretary of Housing and Urban Development
shall carry out the recommendation of the Report of the Na-
tional Performance Review, issued on September 7, 1993,
that the Department streamline its headquarters, regional,
and field office structure and consolidate and reduce its size,
156
without regard to the requirements of section 7(p) of the
Department of Housing and Urban Development Act.
TITLE VII—DEPARTMENT OF
THE INTERIOR
Subtitle A—Improve the Federal
Helium Program
SEC. 7001. AMENDMENTS TO HELIUM ACT AMENDMENTS OF
1960.
(a) Section 4 of the Helium Act Amendments of 1960
(74 Stat. 920, 50 U.S.C. 167b) is amended to insert after
‘‘lands acquired, leased, or reserved;’’ the following: ‘‘re-
duce costs and increase operational efficiencies, especially
in operations that do not produce revenue; establish and
adjust fees charged private industry for storage, trans-
mission, and withdrawal of privately-owned helium from
Government storage facilities to compensate fully for all
costs incurred;’’.
(b) Section 6 of the Helium Act Amendments of 1960
(74 Stat. 921, 50 U.S.C. 167d) is amended—
(1) by amending subsection (b) to read:
‘‘(b) The Secretary is authorized to sell helium for
Federal, medical, scientific, and commercial uses in such
quantities and under such terms and conditions as the
Secretary determines. Sales shall be made in quantities
and a manner to avoid undue disruption of the usual mar-
157
kets of producers, processors, and consumers of helium
and to protect the United States against avoidable loss.’’;
and
(2) by amending subsection (c) to read:
‘‘(c) Sales of helium by the Secretary shall be at
prices, as established by the Secretary, that are adequate
to cover all costs incurred in carrying out the provisions
of this Act. Helium shall be sold at prices comparable to
helium sold by private industry. An annual review of price
comparability shall be made and adjustments shall be
made accordingly.’’.
SEC. 7002. LONG-TERM COMPREHENSIVE PLAN.
The Secretary of the Interior shall prepare and de-
velop a long-term, comprehensive plan to (1) cancel the
outstanding debt owed to the Treasury by the Department
of the Interior related to the Federal helium program; and
(2) improve Federal helium program operations over a
multi-year period. The plan should analyze various options
to accomplish (1) and (2) above, with emphasis on ways
to minimize adverse impacts on Federal employment, Fed-
eral helium purchasers, and U.S. private sector helium
markets. The plan, with the Secretary’s preferred options,
shall be presented to the President within 4 months of
enactment of this Act. The President may adopt the plan,
in whole or in part, and is authorized to cancel the out-
186
(1) IN
GENERAL.—For fiscal years 1996 and
1997, in addition to the budget of the United States
to be submitted under existing law, the President
shall submit a unified budget of the United States
composed of an operating budget and a capital budg-
et.
(2) PRESENTATION
OF
BUDGETS.—Operating
and capital budgets shall be presented separately for
unified funds, general funds, trust funds, and enter-
prise funds.
(b) SPECIAL RULES.—
(1) MINIMUM
CONTENTS.—Actual, estimated,
and proposed amounts shall be presented for unified
funds, general funds, trust funds, and enterprise
funds, and, at a minimum, shall contain—
(A) for the operating budget the following:
(i) operating revenues, (ii) operating expenses,
(iii) operating surplus/deficit before interfund
transfers, (iv) interfund transfers, (v) operating
surplus/deficit, and (vi) Federal expenditures fi-
nancing the operating expenses of State and
local governments;
(B) for the capital budget the following: (i)
capital revenues, (ii) capital investments, (iii)
capital financing requirements before interfund