(b) DEFINITION.—For purposes of this subtitle, the
term ‘‘eligible dwelling unit’’ means a dwelling unit that
complies with any applicable State or local laws, regula-
tions, standards, or codes relating to housing or property
construction or condition.
SEC. 226. RENTS.
(a) REASONABLENESS
AND
NEGOTIATION.—The
rents charged for eligible dwelling units for which housing
assistance is provided under this title shall be—
(1) reasonable, in the determination of the ap-
plicable local voucher assistance agency, in compari-
son with rents charged for comparable units in the
private unassisted market; and
(2) established pursuant to negotiation and
agreement between the assisted family and the
owner of the dwelling unit.
(b) REVIEW OF RENTS.—To determine whether the
rent (or any rent increase) requested by an owner is rea-
sonable for purposes of subsection (a)(1), a local voucher
assistance agency shall review all rents for dwelling units
under consideration by families on behalf of whom housing
assistance is provided by the agency (or all rent increases
for units under lease by families so assisted). If the local
voucher assistance agency determines that the rent (or
rent increase) for a unit is not reasonable, the agency may
disapprove a lease for such unit.
(c) NEGOTIATION.—A local voucher assistance agen-
cy shall, at the request of a family on behalf of whom
housing assistance is provided, assist the family in nego-
tiating a reasonable rent with an owner of a rental dwell-
ing unit.
SEC. 227. LEASES.
Housing assistance payments may be made for the
rental of an eligible dwelling unit by an eligible family only
pursuant to a lease between the family and the owner of
the dwelling unit that complies with any applicable State
or local laws, regulations, standards, or codes relating to
leases for rental of residential dwelling units.
SEC. 228. PREFERENCES FOR ASSISTANCE.
A local voucher assistance agency may carry out, in
a fiscal year, a system for selecting eligible families to be
assisted families that provides preference for such selec-
tion to families having certain characteristics that exhibit
a particular need or exigency for housing assistance. As-
sistance may not be provided pursuant to any preferences
established pursuant to this section until assistance is first
made available pursuant to any requirements and pref-
erences under subtitle A of title III.
SEC. 229. PORTABILITY.
(a) AUTHORITY.—Except as provided in subsection
(b), any assisted family who moves to an eligible dwelling
unit located within the same State, or the same or a con-
tiguous metropolitan statistical area, as the metropolitan
statistical area within which is located the area of jurisdic-
tion of the local voucher assistance agency approving the
assistance for the family, may use such assistance to rent
the eligible dwelling unit.
(b) REQUIRED MINIMUM RESIDENCY.—Any family
not living within the jurisdiction of a local voucher assist-
ance agency at the time that the family applies for housing
assistance from the agency shall, during the 12-month pe-
riod beginning upon the provision of housing assistance
on behalf of the family, use such assistance to rent an
eligible dwelling unit located within the jurisdiction served
by the local voucher assistance agency.
(c) ADMINISTRATION.—The local voucher assistance
agency having authority with respect to the dwelling unit
to which a family moves under this section shall have the
responsibility of carrying out the provisions of this section
with respect to the family. If no local voucher assistance
agency has authority with respect to the dwelling unit to
which a family moves under this section, the local voucher
assistance agency approving the assistance shall have such
responsibility.
SEC. 230. USE OF HOUSING ASSISTANCE FOR HOMEOWNER-
SHIP.
(a) REQUIREMENTS FOR HOMEOWNERSHIP USE.—
An assisted family may use the housing assistance under
this subtitle for costs of occupying a dwelling owned by
one or more members of the family only if the family—
(1) is a first-time homeowner;
(2) demonstrates to the satisfaction of the local
voucher assistance agency that the family has in-
come from employment or other sources (other than
public assistance), as determined in accordance with
requirements of the Voucher Administrator, that is
not less than an amount established for purposes of
this subsection by the local voucher assistance agen-
cy (or such other amount as may be established by
the Voucher Administrator);
(3) except as provided by the Voucher Adminis-
trator, demonstrates at the time the family initially
receives housing assistance that 1 or more adult
members of the family have achieved employment for
the period as the Voucher Administrator shall re-
quire; and
(4) meets any other initial or continuing re-
quirements established by the local voucher assist-
ance agency in accordance with requirements estab-
lished by the Voucher Administrator.
(b) RECAPTURE OF CERTAIN AMOUNTS.—Upon the
sale, by an assisted family, of a dwelling unit for which
housing assistance is used pursuant to this section, the
Voucher Administrator shall recapture from any net pro-
ceeds of the sale any amount of additional assistance (as
determined in accordance with requirements established
by the Voucher Administrator) paid to or on behalf of the
assisted family as a result of section 223(b).
(c) DOWNPAYMENT REQUIREMENT.—A local voucher
assistance agency providing housing assistance for an as-
sisted family that is used pursuant to this section shall
ensure that the family provides from its own resources not
less than 80 percent of any downpayment in connection
with a loan made for the purchase of the dwelling for
which the assistance is used. Not more than 20 percent
of the downpayment may be provided from other sources,
such as from nonprofit entities and programs of States
and units of general local government.
(d) INELIGIBILITY UNDER OTHER PROGRAMS.—
Housing assistance may not be provided pursuant to this
section on behalf of a family at any time during which
assistance is being provided for the family under any other
Federal program for homeownership assistance, which
shall include assistance under subtitle B of title III of this
Act, section 502 of the Housing Act of 1949, and such
other programs as the Voucher Administrator may iden-
tify.
(e) INAPPLICABILITY
OF CERTAIN PROVISIONS.—
Housing assistance provided pursuant to this section shall
not be subject to the requirements of any other provisions
of this subtitle that are inconsistent with the provisions
of this section.
(f) DEFAULT.—
(1) PROHIBITION
OF
SUBSEQUENT
HOME-
OWNERSHIP ASSISTANCE.—An assisted family using
housing assistance pursuant to this section who de-
faults under the mortgage for the dwelling assisted
may not receive assistance under this section for oc-
cupancy of any other dwelling owned by one or more
members of the family.
(2) REVERSION
OF
ASSISTANCE
TO
RENTAL
STATUS.—If an assisted family using housing assist-
ance pursuant to this section defaults under a mort-
gage on the dwelling assisted, the local voucher as-
sistance agency may not continue to provide housing
assistance under this subtitle on behalf of the family
for rental of a dwelling unit unless the family com-
plies with requirements established by the Voucher
Administrator. In the case of a mortgage insured
under the National Housing Act or title IV of this
Act, such requirements shall consist of transferring
to the Voucher Administrator marketable title to the
dwelling, and (B) moving from the dwelling within
the period established or approved by the Voucher
Administrator.
(g) DEFINITION OF FIRST-TIME HOMEOWNER.—For
purposes of this section, the term ‘‘first-time homeowner’’
means—
(1) a family, no member of which has had a
present ownership interest in a principal residence
during the 3 years preceding the date on which the
housing assistance pursuant to this section is ini-
tially provided on behalf of the family; and
(2) any other family, as the Voucher Adminis-
trator may prescribe.
SEC. 231. ANNUAL CONTRIBUTIONS CONTRACTS.
(a) IN GENERAL.—To the extent that amounts to
carry out this subtitle are made available for a fiscal year,
the Voucher Administrator shall enter into annual con-
tributions contracts under this section with voucher assist-
ance agencies in States that have not provided notice
under section 252, under which—
(1) the local voucher assistance agency agrees
to administer the provision of housing assistance in
the jurisdiction of operation of the agency during
such fiscal year in accordance with the provisions of
this subtitle; and
(2) the Voucher Administrator agrees to make
amounts for the fiscal year available to the local
voucher assistance agency for providing housing as-
sistance under this subtitle in such fiscal year and,
to the extent authorized in section 233, for costs of
administering such assistance.
(b) ANNUAL OBLIGATION OF AUTHORITY.—An an-
nual contributions contract shall be for a single fiscal year
and shall provide amounts for housing assistance to fund
vouchers for a 1-year period, but amounts received under
an annual contributions contract may be expended by the
local voucher assistance agency during any year.
SEC. 232. HOUSING VOUCHER CONTRACTS.
(a) IN GENERAL.—To provide housing assistance
under this subtitle on behalf of an assisted family using
amounts made available to a local voucher assistance
agency under an annual contributions contract, the agency
shall enter into a housing voucher contract under this sec-
tion on behalf of the assisted family under which—
(1) the owner of an eligible dwelling unit agree
to lease the unit to the specific assisted family; and
(2) the local voucher assistance agency agrees
to make housing assistance payments to the owner
of the dwelling unit on behalf of the assisted family.
(b) TERM.—The term of a housing voucher contract
entered into by a local voucher assistance agency and the
owner of an eligible dwelling unit may not exceed one year
and if the lease for the dwelling unit entered into by the
assisted family and the owner does not exceed one year,
the term of the housing voucher contract shall run concur-
rently with the term of the lease.
(c) PROHIBITION
OF
PAYMENT
FOR
VACANT
UNITS.—Each housing voucher contract shall provide that
if the assisted family under the contract vacates the dwell-
ing unit for which housing assistance payments are made
under the contract before the expiration of the lease term,
the local voucher assistance agency may not make any
monthly assistance payment with respect to the unit for
any month commencing after the month during which the
unit was vacated.
(d) OTHER PROVISIONS.—Each housing voucher con-
tract shall contain such other provisions as the Voucher
Administrator may require and may provide for the local
voucher assistance agency and the owner to carry out such
other appropriate terms and conditions as may be mutu-
ally agreed to by them.
SEC. 233. ADMINISTRATIVE FEE.
(a) ESTABLISHMENT.—The Voucher Administrator
shall establish a fee for the costs incurred by voucher as-
sistance agencies in administering the program for hous-
ing assistance under this subtitle. From any amounts
made available to a local voucher assistance agency for
a fiscal year to carry out this subtitle, the agency may
use an amount not exceeding the fee for costs of admin-
istering the program under this subtitle.
(b) AMOUNT.—The amount of the administrative fee
under subsection (a) for each month for which a dwelling
unit is covered by a housing voucher contract shall be 7.2
percent of the payment standard established under section
224 for a 2-bedroom rental dwelling unit in the housing
market area of the local voucher assistance agency. The
Voucher Administrator may increase the fee if necessary
to reflect the higher costs of administering small programs
and programs operating over large geographic areas.
SEC. 234. LOCAL VOUCHER ASSISTANCE AGENCIES.
(a) REQUIREMENTS.—Except as provided under sec-
tion 312(i), an entity shall be considered a local voucher
assistance agency for purposes of this subtitle only if—
(1) the entity is authorized by a State, county,
municipality, or other governmental body or public
entity to administer the provision of housing assist-
ance under this subtitle within an area subject to
the governance of such governmental body or public
entity; and
(2) such entity or the governmental body or
public entity submits to the Voucher Administrator
appropriate evidence of such authority.
A private entity or contractor, a tenant management cor-
poration, or any entity acting as a public housing agency
for purposes of the United States Housing Act of 1937,
may be a local voucher assistance agency for purposes of
this subtitle, to the extent that such entity meets the re-
quirements of this subsection.
(b) FEDERAL CONTRACTORS.—For any area for
which no entity qualifies under subsection (a) as a local
voucher assistance agency, the Voucher Administrator
may enter into a contract with an appropriate nonprofit
or for-profit organization to act as a local voucher assist-
ance agency for the area. Such a contract shall define the
area in which the contractor shall operate as a local vouch-
er assistance agency, provide for such monitoring and
oversight of contractor as the Voucher Administrator con-
siders appropriate, and provide for the immediate termi-
nation of the contract upon the effective date of any notice
under section 252 by the State within which such area
is located.
SEC. 235. DEFINITIONS.
For purposes of this subtitle, the following definitions
shall apply:
(1) ADJUSTED INCOME.—The term ‘‘adjusted
income’’ means the income which remains after ex-
cluding—
(A) $480 for each member of the family
residing in the household (other than the head
of the household or spouse) who is—
(i) under 18 years of age; or
(ii) 18 years of age or older and is a
person with disabilities or a full-time stu-
dent;
(B) $400 for any elderly or disabled fam-
ily;
(C) the amount by which 3 percent of an-
nual family income is exceeded by the sum of—
(i) any medical expenses for any el-
derly or disabled family; and
(ii) any reasonable attendant care and
auxiliary apparatus expenses for each fam-
ily member who is a person with disabil-
ities, to the extent necessary to enable any
member of such family (including such
member who is a person with disabilities)
to be employed; and
(D) child care expenses to the extent nec-
essary to enable another member of the family
to be employed or to further his or her edu-
cation.
(2) ANNUAL CONTRIBUTIONS CONTRACT.—The
term ‘‘annual contributions contract’’ means a con-
tract under section 231 between the Voucher Admin-
istrator and a local voucher assistance agency.
(3) ASSISTED
FAMILY.—The term ‘‘assisted
family’’ means a family on behalf of whom housing
assistance is provided under this subtitle or that has
been determined by a local voucher assistance agen-
cy to be an eligible family and issued a voucher.
(4) DWELLING
UNIT.—The term ‘‘dwelling
unit’’ includes a single family home and a residential
property in which some or all of the dwelling units
do not contain bathroom or kitchen facilities.
(5) ELDERLY FAMILIES AND DISABLED FAMI-
LIES.—The terms ‘‘elderly families’’ and ‘‘disabled
families’’ mean families whose heads (or their
spouses), or whose sole members, are elderly or per-
sons with disabilities, respectively. The terms include
2 or more elderly persons or persons with disabilities
living together, and 1 or more such persons living
with 1 or more persons determined under the regula-
tions of the Voucher Administrator to be essential to
their care or well-being.
(6) ELDERLY PERSON.—The term ‘‘elderly per-
son’’ means a person who is at least 62 years of age.
(7) FAMILIES.—The term ‘‘family’’ includes a
family that consists of a single person.
(8) HOUSING ASSISTANCE.—The term ‘‘housing
assistance’’ means financial assistance under this
subtitle on behalf of an assisted family.
(9) HOUSING VOUCHER CONTRACT.—The term
‘‘housing voucher contract’’ means a contract under
section 232 between a local voucher assistance agen-
cy and an owner of an eligible dwelling unit.
(10) LOCAL VOUCHER ASSISTANCE AGENCY.—
The term ‘‘local voucher assistance agency’’ means
an entity that meets the requirements of section
234(a) or that has entered into a contract with the
Voucher Administrator under section 234(b). The
term does not include any Indian housing authority.
(11) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ means a family whose income does not
exceed 80 percent of the median income for the
area, as determined by the Voucher Administrator
with adjustments for smaller and larger families, ex-
cept that the Voucher Administrator may establish
income ceilings higher or lower than 80 percent of
the median for the area on the basis of the Voucher
Administrator’s findings that such variations are
necessary because of prevailing levels of construction
costs or unusually high or low family incomes.
(12) OWNER.—The term ‘‘owner’’ means, with
respect to a dwelling unit, any private person or en-
tity, including a cooperative, an agency of the Fed-
eral Government, or a local voucher assistance agen-
cy, having the legal right to lease or sublease the
dwelling unit.
(13) PERSON WITH DISABILITIES.—The term
‘‘person with disabilities’’ means a person who—
(A) has a disability as defined in section
223 of the Social Security Act,
(B) is determined, pursuant to regulations
issued by the Voucher Administrator, to have a
physical, mental, or emotional impairment
which (i) is expected to be of long-continued
and indefinite duration, (ii) substantially im-
pedes his or her ability to live independently,
and (iii) is of such a nature that such ability
could be improved by more suitable housing
conditions, or
(C) has a developmental disability as de-
fined in section 102 of the Developmental Dis-
abilities Assistance and Bill of Rights Act.
Such term shall not exclude persons who have the
disease of acquired immunodeficiency syndrome or
any conditions arising from the etiologic agent for
acquired immunodeficiency syndrome.
(14) RENT AND RENTAL.—The terms ‘‘rent’’
and ‘‘rental’’ mean, with respect to members of a co-
operative, the charges under the occupancy agree-
ments between such members and the cooperative.
(15) TENANT
MANAGEMENT
CORPORATION.—
The term ‘‘tenant management corporation’’ means
a corporation that—
(A) is established—
(i) for the purpose of managing a
public housing project (or projects) as-
sisted under the United States Housing
Act of 1937 or subtitle B of title III; and
(ii) by the tenant organization or resi-
dent council (or such organizations or
councils) for the project (or projects);
(B) is nonprofit in character;
(C) is organized under the laws of the
State in which the projects are located;
(D) has an elected board of directors,
which is required at all times to include rep-
resentatives of each tenant organization or resi-
dent council involved in establishing the cor-
poration;
(E) has as its sole voting members resi-
dents of the projects managed by the corpora-
tion; and
(F) is approved by the resident council for
(or councils) for the project (or projects) or, if
a project has no council, by a majority of the
households of the project.
(16) VOUCHER.—The term ‘‘voucher’’ means a
document described in section 222(b).
Subtitle C—Determination of State
Allocations and Election of Fed-
eral or State Voucher Program
SEC. 251. STATE ALLOCATIONS.
(a) IN GENERAL.—For fiscal year 1996 and each fis-
cal year thereafter, the Voucher Administrator shall allo-
cate among the States any amounts appropriated to carry
out this title for such fiscal year.
(b) LIMIT ON ASSISTED FAMILIES PER STATE.—In
allocating such amounts, the Voucher Administrator shall
determine a maximum limit of assisted families for each
State by application of the formula established under sub-
section (c) of this section to the maximum national limit
of assisted families determined under section 282(c). The
sum of the various maximum limits of assisted families
for each of the States shall be equal to maximum national
limit of assisted families.
(c) FORMULA.—The Voucher Administrator shall, by
regulation, establish a formula to determine the relative
needs among different States and areas for housing assist-
ance under this title. The formula shall determine such
need based on information regarding population, poverty,
housing overcrowding, housing vacancies, amount of sub-
standard housing, and other objectively measurable condi-
tions specified in the regulation.
(d) MAXIMUM ALLOCATION.—Except as provided in
subsection (e), the allocation under this section for a State
for a fiscal year shall be the amount, determined by the
Voucher Administrator, that is the product of—
(1) the maximum limit of assisted families de-
termined (under subsection (b)) for the State for the
year; and
(2) the amount determined by the Voucher Ad-
ministrator to be necessary to provide housing as-
sistance under subtitle B for the year for a number
of families equal to such maximum limit (taking into
consideration differences in the amounts necessary
to provide housing assistance in different areas).
(e) PRO RATA REDUCTION.—If the amount available
for a fiscal year to carry out this title is not sufficient
to provide the amount of the allocation determined under
subsection (d) for each State, the maximum limit of as-
sisted families for each State determined under subsection
(b) shall be reduced on a pro rata basis to the extent nec-
essary so that the product under subsection (d) is equal
to the amount available for assistance under this title. For
such a fiscal year, the allocation under this section for
each State shall be the product determined under sub-
section (d) using such reduced limit.
(f) INCLUSION OF AMOUNTS FOR ADMINISTRATIVE
FEES.—Notwithstanding subsections (e) and (f), the
Voucher Administrator may increase the amount of the
allocation for each State for a fiscal year by an amount
not exceeding the amount of the administrative fee under
section 206 or 233, as applicable, for the State.
SEC. 252. AVAILABILITY OF STATE ALLOCATION BASED ON
ELECTION 
TO 
USE 
FEDERAL 
OR 
STATE
VOUCHER PROGRAM.
(a) ELECTION TO RECEIVE STATE VOUCHER ASSIST-
ANCE.—If a State at any time provides notice under sub-
section (c) to the Voucher Administrator, the Voucher Ad-
ministrator—
(1) shall, for each fiscal year after the effective
date of such notice, make available to the State a
grant under subtitle A in the amount allocated for
the State under section 251 for such fiscal year; and
(2) may not, at any time after the effective date
of such notice, enter into any commitment to pro-
vide, or provide, amounts for assistance under sub-
title B for use for housing within such State.
(b) FEDERAL VOUCHER ASSISTANCE.—With respect
to a fiscal year, if a State has not provided notice under
subsection (c) that takes effect for, or before, such fiscal
year, the Voucher Administrator shall make available to
local voucher assistance agencies within the State, under
annual contributions contracts under section 231, the
amount allocated for the State under section 251 for the
fiscal year.
(c) NOTICE OF ELECTION.—Notice under this sub-
section shall be written notice that—
(1) is signed by the chief executive officer of the
State;
(2) includes a certification that the notice is
specifically authorized by State law;
(3) the State will carry out, after the effective
date of the notice, a program for housing voucher
payments in accordance with subtitle A;
(4) includes a certification that block grant
amounts made available to the State under subtitle
A will be used for housing voucher assistance in
compliance with the requirements of subtitle A; and
(5) indicates the effective date of the notice for
purposes of subsection (a), which shall be the first
day of a Federal fiscal year.
(d) PROHIBITION AGAINST REVOKING NOTICE.—
Once provided to the Voucher Administrator, notice under
subsection (c) by a State may not subsequently be re-
pealed, revoked, waived, annulled, returned, or otherwise
affected for purposes of treatment of the State under sub-
section (a).
Subtitle D—Office of Federal Hous-
ing Voucher Assistance in De-
partment of Health and Human
Services
SEC. 261. ESTABLISHMENT.
There is hereby established an office within the De-
partment of Health and Human Services, which shall be
known as the Office of Federal Housing Voucher Assist-
ance.
SEC. 262. VOUCHER ADMINISTRATOR.
(a) APPOINTMENT.—The Office shall be under the
management of an Administrator, who shall be appointed
by the President, by and with the advice and consent of
the Senate.
(b) COMPENSATION AT LEVEL IV OF EXECUTIVE
SCHEDULE.—Section 5315 of title 5, United States Code,
is amended by inserting at the end the following new item:
‘‘Administrator, Office of Federal Housing
Voucher Assistance, Department of Health and
Human Services.’’.
(c) EFFECTIVE DATE.—This section shall take effect,
and the amendment under this section is made and shall
apply, on the date of the enactment of this Act.
SEC. 263. DUTY AND AUTHORITY OF VOUCHER ADMINIS-
TRATOR.
The Voucher Administrator shall be responsible, sub-
ject to the supervision and direction of the Secretary of
Health and Human Services, for—
(1) determining State allocations under subtitle
C and make such allocations available in accordance
with the provisions of such subtitle for use under
subtitles A and B;
(2) carrying out the voucher assistance program
under subtitle B; and
(3) exercising any other authority and functions
of the Secretary of Housing and Urban Development
transferred under title III to the Voucher Adminis-
trator.
SEC. 264. TRANSFER OF CERTAIN PERSONNEL.
The personnel that, on the effective date of this sub-
title (as provided in section 268(a), are employed in the
Department of Housing and Urban Development in con-
nection with functions of the Department relating to de-
termining fair market rentals under section 8 of the
United States Housing Act of 1937, as determined by the
Director of the Office of Management and Budget, shall
be transferred on such date to the Office of Federal Hous-
ing Voucher Assistance.
SEC. 265. REPORTS.
The Voucher Administrator shall submit a report to
the Congress annually describing—
(1) the amount of assistance provided under
this title pursuant to subtitle A and subtitle B dur-
ing the year for which the report is made;
(2) the amount of assistance provided to each
State for such year and whether the assistance was
provided under subtitle A or B; and
(3) the number of families assisted under each
such subtitle.
SEC. 266. GAO AUDITS.
The Comptroller General shall audit the operations
of the Office in accordance with generally accepted Gov-
ernment auditing standards. All books, records, accounts,
reports, files, and property belonging to, or used by, the
Voucher Administrator shall be made available to the
Comptroller General. Audits under this section shall be
conducted annually.
SEC. 267. REGULATIONS.
The Voucher Administrator may issue any regula-
tions necessary to carry out the responsibilities of the
Voucher Administrator under this title.
SEC. 268. EFFECTIVE DATE.
Except as otherwise specifically provided in this sub-
title, this subtitle shall take effect on the effective date
under section 108(a).
Subtitle E—General Provisions
SEC. 281. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Federal Housing Voucher Assistance of the
Department of Health and Human Services, estab-
lished under subtitle D.
(2) STATE.—The term ‘‘State’’ means the
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam,
the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
(3) 
VOUCHER
ADMINISTRATOR.—The 
term
‘‘Voucher Administrator’’ means the Administrator
of the Office of Federal Housing Voucher Assist-
ance, appointed under section 262.
SEC. 282. MAXIMUM AMOUNT OF HOUSING ASSISTANCE.
(a) 
PERMANENT
LIMITATION.—The 
aggregate
amount of assistance made available under this title for
fiscal year 2001 or any fiscal year thereafter may not ex-
ceed the sum of—
(1) the amount necessary for such year to pro-
vide housing assistance under subtitle B for a num-
ber of families equal to the maximum national limit
of assisted families (as such term is defined in sub-
section (c)), taking into consideration the allocation
of such assistance by State and area under section
251; and
(2) the amount necessary for such year to pro-
vide administrative fees under sections 206 and 233
in connection with such assistance.
(b) 
TRANSITION
LIMITATION.—The 
aggregate
amount of assistance made available under this title for
any of fiscal years 1996, 1997, 1998, 1999, or 2000 may
not exceed the sum of—
(1) the amount necessary (taking into consider-
ation the allocation of such assistance by State and
area under section 251) for such year to provide
housing assistance under subtitle B for a number of
families equal to the difference between—
(A) the maximum national limit of assisted
families; and
(B) the sum of—
(i) the maximum number of families
for which assistance under section 8 of the
United States Housing Act of 1937 may
be made available or provided, at any one
time, during such year; and
(ii) the maximum number of families
which may, at any one time during such
year, occupy dwelling units in public hous-
ing assisted under the United States Hous-
ing Act of 1937 or subtitle B of this title;
and
(2) the amount necessary for such year to pro-
vide administrative fees under sections 206 and 233
in connection with such assistance.
(c) MAXIMUM NATIONAL LIMIT OF ASSISTED FAMI-
LIES.—For purposes of this title, the term ‘‘maximum na-
tional limit of assisted families’’ means the maximum ag-
gregate number of families for which the following assist-
ance was available or provided, at any one time, during
fiscal year 1995:
(1) SECTION 8.—Rental or homeownership as-
sistance under any program under section 8 of the
United States Housing Act of 1937.
(2) PUBLIC HOUSING.—Residence in a dwelling
unit in public housing.
The maximum national limit on assisted families shall not
take into consideration any families assisted under such
rental, homeownership, or public housing programs of In-
dian housing authorities.
SEC. 283. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this title—
(1) for fiscal year 1996, the lesser of
$3,990,000,000 or the maximum amount determined
under section 282(b) for such year;
(2) for fiscal year 1997, the lesser of
$8,515,000,000 or the maximum amount determined
under section 282(b) for such year;
(3) for fiscal year 1998, the lesser of
$14,965,000,000 or the maximum amount deter-
mined under section 282(b) for such year;
(4) for fiscal year 1999, the lesser of
$21,209,000,000 or the maximum amount deter-
mined under section 282(b) for such year; and
(5) for fiscal year 2000, the lesser of
$24,344,000,000 or the maximum amount deter-
mined under section 282(b) for such year.
TITLE III—TRANSITION PROVI-
SIONS 
RELATING 
TO 
RE-
PLACEMENT 
OF 
PUBLIC
HOUSING 
AND 
ASSISTED
HOUSING PROGRAMS
SEC. 301. PURPOSE.
The provisions of this title are enacted for the pur-
poses of—
(1) replacing, with housing assistance under
title II, all assistance provided under the programs
for the development, operation, modernization, reha-
bilitation, and revitalization of public housing and
under all programs for project- and tenant-based
rental assistance under section 8 of the United
States Housing Act of 1937; and
(2) providing for the replacement of such assist-
ance over a period of 5 years in an efficient manner
that deregulates public housing agencies and pro-
vides assistance to such agencies during such in-
terim period through a single block grant.
Subtitle A—Replacement of
Assisted Housing Programs
SEC. 311. TERMINATION OF EXISTING PROGRAMS.
(a) TERMINATION
OF PUBLIC HOUSING BLOCK
GRANT PROGRAM AFTER 5 YEARS.—After September 30,
1999, no financial assistance may be provided under the
public housing block grant program under subtitle B of
this title.
(b) IMMEDIATE PROHIBITION
OF NEW COMMIT-
MENTS FOR RENTAL ASSISTANCE.—After the date of the
enactment of this Act, no new commitment (including the
renewal of any contract) may be made to provide financial
assistance under any of the following programs:
(1) TENANT-BASED SECTION 8 ASSISTANCE.—
Any program for tenant-based rental or homeowner-
ship assistance under section 8 of the United States
Housing Act of 1937, including—
(A) the certificate and voucher programs
under subsections (b) and (o), respectively, of
such section;
(B) the program for moving to opportunity
for fair housing under section 152 of the Hous-
ing and Community Development Act of 1992;
(C) the community investment demonstra-
tion under section 6 of the HUD Demonstra-
tion Act of 1993; and
(D) the program under section 8(q)(3) of
the United States Housing Act of 1937 for
service coordinators for families receiving ten-
ant-based rental assistance.
(2) PROJECT-BASED SECTION 8 ASSISTANCE.—
Any program for project-based rental assistance
under such section 8, including project-based assist-
ance provided pursuant to—
(A) the Low-Income Housing Preservation
and Resident Homeownership Act of 1990;
(B) the Emergency Low Income Housing
Preservation Act of 1987;
(C) the program for loan management as-
sistance under such section 8;
(D) the program for assistance under such
section 8 for property disposition;
(E) section 441 of the Stewart B. McKin-
ney Homeless Assistance Act;
(F) parts III and V of subtitle F of title
IV of the Stewart B. McKinney Homeless As-
sistance Act; and
(G) the program under section 8(d)(2)(f)
of the United States Housing Act of 1937 for
service coordinators in project-based rental
housing.
(3) TENANT-BASED RENTAL ASSISTANCE FOR
DISABLED
FAMILIES.—The program for tenant-
based rental assistance under subsections (b)(2)(B)
and (d)(4) of section 811 of the Cranston-Gonzalez
National Affordable Housing Act.
(4) RENTAL ASSISTANCE FOR PERSONS WITH
AIDS.—The programs for rental assistance for per-
sons with AIDS under sections 859 and 860 of the
Cranston-Gonzalez National Affordable Housing
Act.
(5) SHELTER PLUS CARE RENTAL ASSISTANCE
FOR HOMELESS PERSONS.—The programs for rental
assistance under parts II and IV of subtitle F of
title V of the Stewart B. McKinney Homeless Assist-
ance Act.
(6) TENANT
OPPORTUNITY
PROGRAM.—The
tenant opportunity program under the Departments
of Veterans Affairs and Housing and Urban Devel-
opment, and Independent Agencies Appropriations
Act, 1994 (Public Law 103–327; 108 Stat. 2306).
(c) IMMEDIATE PROHIBITION
OF NEW COMMIT-
MENTS FOR OTHER PROJECT-BASED ASSISTANCE.—After
the date of the enactment of this Act, no new commitment
may be made to provide financial assistance under any of
the following programs:
(1) FLEXIBLE SUBSIDIES.—The flexible subsidy
program under section 201 of the Housing and
Community Development Amendments of 1978.
(2) PRESERVATION PROGRAMS.—Any authority
under the Low-Income Housing Preservation and
Resident Homeownership Act of 1990 or the Emer-
gency Low Income Housing Preservation Act of
1987 for assistance other than the assistance re-
ferred to in paragraph (2) of subsection (b).
(3) SERVICE
COORDINATORS
FOR
ASSISTED
PROJECTS.—The grant program under section 676
of the Housing and Community Development Act of
1992 for providing service coordinators for federally
assisted housing projects.
(d) IMMEDIATE PROHIBITION
OF NEW COMMIT-
MENTS FOR INDIAN HOUSING ASSISTANCE.—After the
date of the enactment of this Act, no new commitment
may be made to provide financial assistance under any of
the following programs:
(1) PUBLIC HOUSING.—Any program for public
housing for Indians under or pursuant to the United
States Housing Act of 1937.
(2) CHILDHOOD DEVELOPMENT.—The program
for Indian housing childhood development under sec-
tion 518 of the Cranston-Gonzalez National Afford-
able Housing Act.
(3) RENTAL
ASSISTANCE.—The program to
provide rental assistance under section 8 of the
United States Housing Act of 1937 through Indian
housing authorities (including the renewal of any
contract).
(e) SAVINGS PROVISION.—Nothing in this section
may be construed to affect the validity of any right, duty,
or obligation of the United States or other person arising
under or pursuant to any commitment or agreement law-
fully entered into under any provision of law referred to
in this section before the applicable date under this section
prohibiting new assistance or commitments for assistance
under such law.
SEC. 312. TRANSITION TO VOUCHER ASSISTANCE PRO-
GRAM.
(a) ORDERLY TRANSITION.—The Administrator of
the Office of Federal Housing Voucher Assistance and the
Administrator of the Housing and Urban Development
Programs Resolution Agency shall provide for the orderly
transition, during the transition period, from providing as-
sistance under the public housing block grant program
under subtitle B of this title to the provision of voucher
assistance under title II.
(b) PACE
OF REPLACEMENT
AND INTERMEDIATE
GOALS.—In carrying out this section, the Resolution Ad-
ministrator shall terminate the provision of public housing
block grant assistance under subtitle B to the greatest ex-
tent and as soon as practicable throughout the transition
period and, in doing so, shall ensure that, by October 1,
1998—
(1) for at least 50 percent of the total number
of families that resided in dwelling units in public
housing on October 1, 1995, and
(2) for all of the dwelling units of at least 50
percent of all public housing agencies,
the provision of assistance under subtitle B has been ter-
minated and replaced by the provision of assistance under
title II.
(c) USE OF AMOUNTS.—Notwithstanding any other
provision of law, any assistance provided for public hous-
ing under the United States Housing Act of 1937 or sub-
title B of this title may be used for assistance under title
II.
(d) CONTINUITY OF ASSISTANCE.—To the greatest
extent practicable taking into consideration the availability
of amounts provided in appropriation Acts and the relative
needs of different States and areas (as determined under
section 251), during fiscal years 1996 through 2000, the
Voucher Administrator shall allocate to local voucher as-
sistance agencies under subtitle B of title II the amounts
made available to carry out such subtitle in a manner that
provides assistance sufficient for one assisted family under
such subtitle for each family for which assistance for the
rental or ownership of a dwelling unit is terminated pursu-
ant to section 311.
(e) RESPONSIBILITIES OF EXISTING PHA’S.—Any
public housing agency administering the provision of as-
sistance under section 8 of the United States Housing Act
of 1937 upon the commencement of the transition period
may continue after such date to administer the provision
of any such assistance committed before such date for use
by such agency or may transfer responsibility for admin-
istering such assistance to another entity acting as a local
voucher assistance agency for purposes of subtitle B of
title II.
(f) PROHIBITION OF DUPLICATIVE ASSISTANCE DUR-
ING TRANSITION.—A dwelling unit for which housing as-
sistance is provided under title II may not be assisted in
any manner with any amounts made available under this
title.
(g) PLAN AND REPORTS.—
(1) TRANSITION
PLAN.—Not later than 6
months after the date of the enactment of this Act,
the Resolution Administrator and the Voucher Ad-
ministrator shall jointly establish, and submit to the
Congress, a plan providing for the transition of as-
sistance for public housing to voucher assistance
under title II, in accordance with the requirements
of this subtitle.
(2) ANNUAL
REPORTS.—Not later than 3
months after the conclusion of each of fiscal years
1996, 1997, 1998, 1999, and 2000, the Resolution
Administrator and the Voucher Administrator shall
jointly prepare, and submit to the Congress, a report
on the progress during such fiscal year of the transi-
tion under this subtitle to providing voucher assist-
ance under title II.
(h) COORDINATION WITH PHA’S.—In carrying out
this section, the Resolution Administrator shall coordinate
with the public housing agencies to the extent necessary
to permit the agencies to establish plans under section 323
that conform with the requirements under this section and
the schedule established by the Resolution Administrator
and the Voucher Administrator for the transition under
this section.
(i) VOUCHERING BY TENANT MANAGEMENT COR-
PORATIONS.—Notwithstanding the plan under subsection
(g), any schedule for converting assistance for a public
housing agency from assistance under public housing
block grants under subtitle B to voucher assistance under
title II, or any plan under section 323, the Resolution Ad-
ministrator may provide for a tenant management cor-
poration (as such term is defined in section 235) to admin-
ister housing assistance under subtitle B of title II with
respect to families eligible for such assistance who are re-
siding in dwelling units in public housing projects assisted
at such time under the United States Housing Act of 1937
if—
(1) the tenant management corporation makes
a written request to the Resolution Administrator to
administer such assistance;
(2) the public housing projects are located in a
State that has not provided notice under section 252
that the State elects to receive block grants for State
housing voucher assistance under subtitle A of title
II;
(3) the tenant management corporation has
management authority with respect to the projects;
and
(4) allowing the tenant management corpora-
tion to administer such assistance will provide
voucher assistance under subtitle B of title II for the
residents of such projects earlier than otherwise pro-
vided under the plan under subsection (g) of this
section or the plan of the relevant public housing
agency under section 323.
SEC. 313. TRANSFER OF RESIDUAL HUD AUTHORITY TO AD-
MINISTRATOR OF FEDERAL HOUSING VOUCH-
ER ASSISTANCE.
Effective on the termination date under section
105(d), there are transferred to the Voucher Adminis-
trator all functions of the Resolution Administrator re-
garding administration of any outstanding commitments
of the Resolution Administrator under the programs re-
ferred to in section 311 and of any amounts previously
appropriated in connection with such commitments.
SEC. 314. TREATMENT OF FAMILIES ASSISTED UNDER TER-
MINATED PROGRAMS.
(a) ASSISTANCE FOR FAMILIES RESIDING IN MULTI-
FAMILY DISPOSITION PROJECTS.—
(1) IN GENERAL.—To the extent amounts for
assistance under title II are available, the relevant
State or voucher housing agency shall provide such
assistance for each low-income family that—
(A) resides—
(i) in a HUD-owned multifamily rent-
al housing project at the time of the sale
of the project or the mortgage for the
project under section 553; and
(ii) at such time, in a dwelling unit in
such project that was assisted with project-
based assistance under section 8 of the
United States Housing Act of 1937, sec-
tion 101 of the Housing and Urban Devel-
opment Act of 1965, section 236(f)(2) of
the National Housing Act, or section 23 of
the United States Housing Act of 1937 (as
in effect before January 1, 1975); and
(B) as a result of the sale of such project
or the mortgage for the project, will not other-
wise receive the benefit of the project-based as-
sistance referred to in subparagraph (A)(ii)
over such period.
(2) 
HUD-OWNED
MULTIFAMILY
RENTAL
PROJECT.—For purposes of paragraph (1), the term
‘‘HUD-owned multifamily rental project’’ means a
multifamily rental housing project which—
(A) is owned by the Secretary of Housing
and Urban Development or the Administrator
of the Federal Home Mortgage Insurance Fund
or is subject to a mortgage so owned; and
(B) is or, prior to acquisition of the project
or the mortgage for the project by such Sec-
retary or Administrator, was assisted or insured
under the National Housing Act or subject to
a loan under the Housing Act of 1959.
(b) PREFERENCE FOR FEDERAL VOUCHER ASSIST-
ANCE.—To the extent amounts are available after assist-
ance is provided pursuant to subsection (a), a family to
or on behalf of whom assistance for the rental or owner-
ship of a dwelling unit is provided under any program de-
scribed in section 311 and whose assistance is terminated
because of section 311 or 312, shall be given preference
for assistance made available under subtitle B of title II,
subject to the limitations under this section. Preference
pursuant to this subsection may be provided only for fami-
lies that are eligible for such assistance under the applica-
ble provisions of such subtitle B.
(c) ONE-TIME APPLICABILITY.—Any family to or on
behalf of whom assistance is once provided under title II
pursuant to a preference under subsection (a) or (b) may
not, in any subsequent selection of families for available
assistance under subtitle A or B of title II, be accorded
preference pursuant to such subsection.
(d) PROHIBITION OF EVICTIONS.—With respect to a
dwelling unit that is—
(1) located in a public housing project for which
assistance under the United States Housing Act of
1937 or subtitle B of this title is terminated pursu-
ant to this subtitle and maintained by the public
housing agency as an occupiable dwelling unit avail-
able for rental, or
(2) assisted under any other program described
in section 311,
the family lawfully residing in the dwelling unit at the time
of the termination of such assistance may not be evicted
or otherwise required to vacate the unit solely because of
the termination and without consideration to the ability
of the family to pay rent for the unit.
(e) PROHIBITION OF DISCRIMINATION BY PUBLIC
HOUSING AGENCIES AGAINST VOUCHER HOLDERS.—
After the transition under this subtitle of the public hous-
ing projects of a public housing agency to assistance under
title II, the agency may not refuse to lease an available
dwelling unit in any project of the agency that was devel-
oped or assisted with contributions under the United
States Housing Act of 1937 or subtitle B of this title to
any family on behalf of whom assistance is provided under
title II, or to enter into a housing voucher contract under
subtitle B of title II, a proximate cause of which is the
status of the family as so assisted.
SEC. 315. CONTINUED RESTRICTIONS ON USE OF EXISTING
PUBLIC HOUSING STOCK.
Any housing project developed or assisted with
amounts provided under the United States Housing Act
of 1937 or subtitle B of this title shall continue to be sub-
ject to any conditions or requirements under such Act or
title resulting from such assistance, except to the extent
specifically waived or provided otherwise under this title.
SEC. 316. AUDIT OF PROJECT-BASED SECTION 8 ASSIST-
ANCE CONTRACTS.
(a) AUDIT.—Not later than the expiration of the 24-
month period beginning upon the date of the enactment
of this Act, the Resolution Administrator shall conduct an
audit to identify each multifamily housing project assisted
under an existing contract under section 8 of the United
States Housing Act of 1937 that is attached to the struc-
ture pursuant to subsection (d)(2) of such section and,
with respect to each such project, to determine—
(1) the amount of such assistance provided for
the project and for each assisted dwelling unit in the
project and the remaining term of such contract for
assistance;
(2) the physical status and needs for the
project;
(3) the financial status of the project, includ-
ing—
(A) whether the project is subject to a
mortgage insured under the National Housing
Act and, if so, the program under which such
insurance is provided, whether the loan secured
by the mortgage is delinquent, in default, or
current, and if delinquent or in default, the
amount of arrears, outstanding balance, inter-
est rate, and remaining term of the delinquent
or defaulted loan;
(B) recent project income and expenses
and the amount of the balance in any reserve
accounts for the project;
(C) the estimated cost of any rehabilitation
necessary to maintain the project in accordance
with applicable building and safety standards
and codes or to bring the project into compli-
ance with such standards and codes;
(D) the amount of monthly rental revenue
necessary per dwelling unit to fully support the
sum of rehabilitation costs under subparagraph
(C) for the project, the costs of operating the
project, and the costs of maintaining the project
in accordance with applicable building and safe-
ty standards;
(E) the estimated revenue losses resulting
from vacancies in dwelling units in the project;
and
(F) the extent of financial investment and
interest in the project of the owner of the
project and of the extent of control by the
owner over the management of the project; and
(4) the rents for comparable unassisted dwell-
ing units in the area in which the project is located.
(b) REPORT.—Not later than the expiration of the
period referred to in subsection (a), the Resolution Admin-
istrator shall submit a report to the Congress containing
the results of the audit conducted under such subsection.
Subtitle B—Interim Program for
Public Housing Block Grants
and Deregulation
SEC. 321. IMMEDIATE TERMINATION OF EXISTING PUBLIC
HOUSING PROGRAMS.
After the date of the enactment of this Act, no new
commitment may be made to provide financial assistance
under any of the following programs:
(1) PUBLIC HOUSING.—Any program for assist-
ance for public housing under any provision of title
I or III of the United States Housing Act of 1937.
(2) URD
GRANTS.—The urban revitalization
program under the Departments of Veterans Affairs
and Housing and Urban Development, and Inde-
pendent Agencies Appropriations Act, 1993 (Public
Law 102–389; 106 Stat. 1579).
(3) CHILDHOOD DEVELOPMENT.—The program
for public housing childhood development under sec-
tion 222 of the Housing and Urban-Rural Recovery
Act of 1983.
(4) PERINATAL SERVICES DEMONSTRATION.—
The public housing one-stop perinatal services dem-
onstration under section 521 of the Cranston-Gon-
zalez National Affordable Housing Act.
(5) YOUTH
SPORTS
DEMONSTRATION.—The
program for public and assisted housing youth
sports under section 520 of the Cranston-Gonzalez
National Affordable Housing Act.
(6) DRUG
ELIMINATION.—The program for
public and assisted housing drug elimination under
chapter 2 of subtitle C of title V of the Anti-Drug
Abuse Act of 1988.
SEC. 322. PROGRAM AUTHORITY.
(a) IN GENERAL.—Notwithstanding any provisions of
the United States Housing Act of 1937, during the transi-
tion period, this subtitle shall govern the funding, oper-
ation, and management of public housing, and the trans-
formation of public housing to a program of tenant-based
voucher assistance under title II of this Act. Title I of
the United States Housing Act of 1937 shall apply only
to the extent that the Resolution Administrator deter-
mines that such title is consistent with the effective and
expeditious achievement of the purposes of this title.
(b) DEREGULATION.—The Resolution Administrator
shall provide public housing agencies with the flexibility
and, to the extent amounts are made available in appro-
priations Acts for grants under this subtitle, the funding
necessary to allow the agencies—
(1) to make their viable and marketable public
housing stock generally competitive, in preparation
for their transition to the voucher assistance under
title II; and
(2) to demolish, dispose of, or demolish and dis-
pose of their nonviable or nonmarketable housing
property.
In carrying out this subtitle, the Resolution Administrator
shall deregulate and decontrol public housing agencies
consistent with the requirements of this subtitle, the pru-
dent operation of such agencies, and the purpose under
section 301.
(c) INDIAN HOUSING PROGRAMS.—This subtitle shall
not apply to low-income housing developed or operated
pursuant to a contract between the Secretary of Housing
and Urban Development and an Indian housing authority.
SEC. 323. STRATEGIC PLAN.
(a) IN GENERAL.—As a condition of eligibility for as-
sistance under this subtitle, a public housing agency shall
develop a strategic plan under this section that deter-
mines—
(1) the location, physical condition, moderniza-
tion needs, and marketability of each of the public
housing projects of the agency; and
(2) the manner in which the public housing of
the agency relates to the overall local stock of af-
fordable housing in the community in which the ju-
risdiction of the agency is located.
(b) MINIMUM REQUIREMENTS.—The plan under this
section of a public housing agency shall—
(1) be developed in consultation with appro-
priate local officials, tenants of the public housing
projects for which assistance is requested, residents
of the local community, and other appropriate inter-
ested parties;
(2) identify the public housing projects that the
agency plans to demolish;
(3) identify the public housing projects that the
agency plans to rehabilitate, and provide a schedule
for such rehabilitation;
(4) set forth the plan of the agency for comply-
ing with the provisions of this subtitle and for the
transition of the public housing of the agency to
voucher assistance under title II, including any re-
quests for waivers of program requirements under
section 329(a);
(5) describe how the assistance requested under
this subtitle will be used by the agency to improve
the management and operation of the agency and to
improve the condition of the public housing projects
for which such assistance is requested;
(6) describe how the assistance requested under
this subtitle will be used by the agency to assist ten-
ant programs and services in the public housing
projects for which such assistance is sought;
(7) describe any other sources of funds, not
provided under this subtitle, to be used by the public
housing agency to carry out any eligible activities
under section 327;
(8) describe any previous assistance provided by
the Secretary of Housing and Urban Development
under title I of the United States Housing Act of
1937 will be used for the purposes of this subtitle;
and
(9) include such other information as the Reso-
lution Administrator may require.
(c) REQUIREMENTS FOR SMALL PUBLIC HOUSING
AGENCIES.—The Resolution Administrator may establish
requirements for strategic plans under this section that
provide for public housing agencies with fewer than 100
units, to submit more simplified plans than those required
to be submitted by larger public housing agencies.
(d) REVIEW AND APPROVAL.—The Resolution Ad-
ministrator shall review each plan submitted under this
section for compliance with the requirements of this sec-
tion and this subtitle and shall approve the plans that so
comply. The Resolution Administrator may require a pub-
lic housing agency to amend or resubmit a plan under this
section if the plan, as initially submitted, does not so com-
ply.
(e) USE.—A public housing agency shall use the stra-
tegic plan of the agency approved under this section to
guide any investment decisions of the agency during the
transition period.
SEC. 324. CONSOLIDATION OF FUNDING.
(a) CONSOLIDATION
OF FUNDING.—All programs
under which assistance is provided for public housing im-
mediately before the commencement of the transition pe-
riod (including each program referred to in section 321)
shall, upon such commencement, be merged into the Pub-
lic Housing Block Grant Fund under section 325.
(b) TREATMENT OF EXISTING AMOUNTS.—
(1) UNRESERVED
AMOUNTS.—Any amounts
made available to the Secretary of Housing and
Urban Development for public housing purposes that
have not been reserved by the Secretary to a public
housing agency before the commencement of the
transition period shall be available, for the period
originally provided in law, for use for block grants
under this subtitle.
(2) RESERVED AMOUNTS.—Any amounts made
available to the Secretary of Housing and Urban
Development for public housing purposes that have
been obligated by the Secretary to a public housing
agency, but which, as of the commencement of the
transition period, have not been obligated by the
public housing agency, shall be available to such
public housing agency, for the period originally pro-
vided in law, for use as block grant amounts under
this subtitle.
(c) CONTINUED AVAILABILITY.—If a public housing
agency receives amounts under this subtitle for purposes
described in the public housing agency’s strategic plan
that relate to a particular project or projects, or portion
thereof, such amounts shall be available to the agency
until expended, regardless of whether project or projects,
or portions of the project or projects, have been trans-
ferred under subtitle A to voucher assistance under title
II.
SEC. 325. PUBLIC HOUSING BLOCK GRANT FUND.
The Resolution Administrator shall establish a Public
Housing Block Grant Fund for the purpose of making
grants to public housing agencies—
(1) to make physical improvements to or to re-
place public housing projects;
(2) for associated management improvements;
and
(3) for the operation of low-income housing
projects.
SEC. 326. GRANTS.
(a) IN GENERAL.—The Resolution Administrator
shall make grants from amounts in the Public Housing
Block Grant Fund to public housing agencies to carry out
eligible activities under section 327.
(b) STRATEGIC PLAN REQUIREMENT.—No amounts
may be provided under this subtitle to a public housing
agency unless the Resolution Administrator has approved
a strategic plan for the agency under section 323.
(c) AMOUNT.—The amount of the block grant under
this subtitle for a public housing agency for a fiscal year
shall be the amount of the allocation under section 328
for the agency for such fiscal year.
(d) CONDITIONS OF BLOCK GRANT ASSISTANCE.—
With respect to public housing projects assisted under this
subtitle, the requirements of this subtitle (and the condi-
tions of the strategic plan relating to the housing) shall
apply for the longer of—
(1) 20 years after the date of the execution of
the contract for the first grant under this subtitle
from which amounts were used for the development
of the housing; or
(2) 10 years after the receipt of the last grant
under this subtitle from which amounts were used
for operation of the project.
SEC. 327. ELIGIBLE ACTIVITIES.
Amounts from a grant under this subtitle may be
used to carry out the following activities:
(1) OPERATING ACTIVITIES.—Activities relating
to—
(A) the operation of low-income housing
projects;
(B) crime prevention and security (includ-
ing activities eligible for assistance under the
Public and Assisted Housing Drug Elimination
Act of 1990 and the Drug-Free Public Housing
Act of 1988) for low-income housing projects;
and
(C) the provision of service coordinators
under section 671 of the Housing and Commu-
nity Development Act of 1992 for elderly per-
sons or persons with disabilities in low-income
housing projects.
(2) CAPITAL AND MANAGEMENT ACTIVITIES.—
(A) Capital and management activities au-
thorized under title I of the United States
Housing Act of 1937 (except for sections 8 and
9).
(B) Any other activities relating to the de-
velopment and modernization of public housing
projects, including the redesign, reconstruction,
and reconfiguration of public housing sites and
buildings, vacancy reduction, addressing de-
ferred maintenance needs and the replacement
of dwelling equipment, planned code compli-
ance, management improvements, community
service, demolition and replacement, tenant re-
location, and activities to improve the economic
empowerment and self-sufficiency of public
housing tenants.
(C) Activities under the urban revitaliza-
tion demonstration program authorized under
Public Laws 102–389, 103–124, or 103–327.
(D) Activities under the public housing
early childhood development program author-
ized under section 222 of the Housing and
Urban-Rural Recovery Act of 1983.
(E) Providing technical assistance to pub-
lic housing agencies, resident councils, resident
organizations, and resident management cor-
porations, including monitoring, inspections,
training for public housing agency employees
and residents, and data collection and analysis.
(F) Remedial activities associated with
troubled public housing agencies, as such agen-
cies are so designated under section 6(j) of the
United States Housing Act of 1937.
(G) Such other activities as may be deter-
mined by the Resolution Administrator.
The provisions and requirements of any laws re-
ferred to in this subsection shall not apply to activi-
ties assisted with block grants made under this sub-
title, except as determined necessary by the Resolu-
tion Administrator.
SEC. 328. FORMULA ALLOCATIONS.
(a) IN GENERAL.—For each fiscal year, the Resolu-
tion Administrator shall allocate any amounts available
under this subtitle for block grants for the fiscal year to
public housing agencies eligible for such grants under sec-
tion 326(b). The allocation for an eligible public housing
agency for a fiscal year shall be the sum of the operating
amount under subsection (b) for the agency for such year
100
and the capital amount under subsection (c) for the agen-
cy for such year.
(b) OPERATING AMOUNT.—
(1) IN
GENERAL.—The Resolution Adminis-
trator shall allocate 40 percent of any amounts
available under this subtitle for block grants for a
fiscal year to eligible public housing agencies accord-
ing to a formula established under this subsection by
the Resolution Administrator. The formula alloca-
tion under this subsection for a public housing agen-
cy for a fiscal year is the operating amount for such
agency for such year.
(2) MODIFICATION
OF
PFS
FORMULA.—For
purposes of determining operating amounts under
this subsection, the Resolution Administrator shall
modify the Performance Funding System formula,
as prescribed by the Resolution Administrator in
regulations pursuant to section 9 of the United
States Housing Act of 1937, to—
(A) include components reflecting the new
list of eligible activities set forth in section
327(1);
(B) simplify the requirements relating to
public housing agencies with 100 or fewer units;
101
(C) revise the treatment of ‘‘other income’’
in a manner that gives public housing agencies
an incentive to increase such income;
(D) eliminate the ‘‘rental income increase’’
factor used in calculating Performance Funding
System eligibility; and
(E) provide that the treatment of vacant
public housing units under the formula may be
modified by negotiated rulemaking.
In modifying the Performance Funding System for-
mula under this paragraph, the Resolution Adminis-
trator may give special consideration to the needs of
public housing agencies for anticrime funding and
funding of activities related to the provision of serv-
ice coordinators for elderly persons or persons with
disabilities pursuant to section 671 of the Housing
and Community Development Act of 1992.
(3) USE
OF
EXISTING
PFS
FORMULA.—Until
the Performance Funding System formula as revised
under paragraph (2) takes effect, the Resolution Ad-
ministrator shall use the formula established pursu-
ant to section 9(a)(3) of the United States Housing
Act of 1937 for purposes of determining the operat-
ing amounts under this subsection.
(c) CAPITAL AMOUNT.—
102
(1) IN
GENERAL.—The Resolution Adminis-
trator shall allocate 60 percent of any amounts
available under this subtitle for block grants for a
fiscal year to eligible public housing agencies accord-
ing to a formula established under this subsection by
the Resolution Administrator. The formula shall be
designed to measure the relative needs of such agen-
cies for capital and modernization assistance and
shall allocate amounts to address the backlog needs
and accrual needs of public housing agencies, taking
into consideration all activities eligible for assistance
under section 327(2). The formula allocation under
this subsection for a public housing agency for a fis-
cal year is the capital amount for such agency for
such year.
(2) FORMULA
FOR
SMALL
PUBLIC
HOUSING
AGENCIES.—The Resolution Administrator may es-
tablish a separate allocation formula under this sub-
section for public housing agencies with fewer than
100 units, which may take into account the specific
needs of such smaller public housing agencies.
(3) AUTHORITY TO USE CURRENT FORMULA.—
In carrying out this subsection, the Resolution Ad-
ministrator may use the formula established under
section 14(k) of the United States Housing Act of
103
1937, with such adjustments as may be necessary to
provide additional weight for backlog needs. The
Resolution Administrator may make the adjustments
to such formula by notice and without amending the
regulations implementing such section.
SEC. 329. PROGRAM REQUIREMENTS AND WAIVERS.
(a) WAIVER OF PROGRAM REQUIREMENTS.—
(1) AUTHORITY.—The Resolution Adminis-
trator may waive, for a public housing agency receiv-
ing assistance under this subtitle, any of the follow-
ing requirements under title I:
(A) INCOME
ELIGIBILITY.—Any require-
ment relating to maximum income of families
residing in public housing.
(B) RENT CHARGES.—Any requirement re-
lating to rental amounts for dwelling units in
public housing.
(C) OCCUPANCY PREFERENCES.—Any re-
quirement relating to preference for occupancy
in public housing dwelling units.
(D) DEMOLITION AND DISPOSITION.—Any
requirement relating to demolition and disposi-
tion of public housing.
(2) REQUIREMENTS.—The Resolution Adminis-
trator may waive requirements referred to in para-
105
(c) MODIFICATION OF LEAD-BASED PAINT REQUIRE-
MENTS.—Consistent with the purposes of this subtitle and
the protection of children from lead-based paint hazards,
the Resolution Administrator shall—
(1) determine which, if any, of the lead-based
paint testing and abatement requirements for public
housing in the Lead-Based Paint Poisoning Preven-
tion Act shall apply to public housing during the pe-
riod that is assistance is provided for such housing
under this subtitle; and
(2) adopt for public housing, for such period,
appropriate recommendations made by the Task
Force on Lead-Based Paint Hazard Reduction and
Financing.
(d) APPLICABILITY OF FAMILY SELF-SUFFICIENCY
REQUIREMENTS.—Participation in the Family Self-Suffi-
ciency program under section 23 of the United States
Housing Act of 1937 shall not be mandatory with respect
to any housing developed with amounts provided under
this subtitle. Parties to financial and other contractual
commitments made under the Family Self-Sufficiency pro-
gram prior to the allocation or obligation of amounts
under this title shall continue to be bound by the terms
of such commitments.
106
SEC. 330. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Public
Housing Grant Fund under section 325 for grants under
this subtitle—
(1) $5,270,000,000 for fiscal year 1996;
(2) $3,300,000,000 for fiscal year 1997;
(3) $1,500,000,000 for fiscal year 1998; and
(4) $56,000,000 for fiscal year 1999.
Subtitle C—General Provisions
SEC. 341. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) RESOLUTION
ADMINISTRATOR.—The term
‘‘Resolution Administrator’’ means the Adminis-
trator of the Housing and Urban Development Pro-
grams Resolution Agency appointed under section
101.
(2) TRANSITION
PERIOD.—The term ‘‘transi-
tion period’’ means the period beginning on October
1, 1995, and ending on September 30, 2000.
(3) 
VOUCHER
ADMINISTRATOR.—The 
term
‘‘Voucher Administrator’’ means the Administrator
of the Office of Federal Housing Voucher Assistance
of the Department of Health and Human Services,
appointed under section 262.
107
TITLE IV—BLOCK GRANTS FOR
HOUSING 
AND 
COMMUNITY
DEVELOPMENT 
OPPORTUNI-
TIES
Subtitle A—Block Grants Program
SEC. 401. PURPOSE.
The purpose of this subtitle is to provide assistance
to eligible States, entitlement areas, and Indian tribes, to
be used in such manner and amounts as the States, enti-
tlement areas, and tribes determine appropriate, for meet-
ing the community and economic development needs and
the affordable housing needs of the States, entitlement
areas, and tribes.
SEC. 402. GENERAL BLOCK GRANTS.
Except as provided in section 432, for each fiscal
year, the Director of the Housing and Community Oppor-
tunities Agency shall make a grant to each eligible State
and entitlement area in an amount equal to the allocation
determined under section 406 for such State or entitle-
ment area for the fiscal year and shall provide amounts
to Indian tribes in accordance with section 406(b).
SEC. 403. ELIGIBLE STATES AND ENTITLEMENT AREAS.
(a) ELIGIBLE STATE.—For purposes of this title, the
term ‘‘eligible State’’ means, with respect to a fiscal year,
a State that, during the period immediately preceding the
108
fiscal year and having such duration as the Director shall
determine, has submitted to the Director a block grant
plan under section 405.
(b) ENTITLEMENT AREA.—For purposes of this title,
the term ‘‘entitlement area’’ means, with respect to a fis-
cal year, a metropolitan city or urban county that, during
the period immediately preceding the fiscal year and hav-
ing such duration as the Director shall determine, has sub-
mitted to the Director a block grant plan under section
405.
SEC. 404. USE OF GRANT AMOUNTS.
(a) LIMITATION ON USE.—Grant amounts provided
under this subtitle may be used, subject to this title, only
to carry out eligible activities.
(b) LOW-INCOME USE.—
(1) IN GENERAL.—Not less than 90 percent of
the aggregate amount of assistance provided to an
eligible State, entitlement area, or Indian tribe
under a grant made under this subtitle shall be used
for the support of eligible activities that benefit low-
income families.
(2) DETERMINATION.—An eligible activity shall
be considered to benefit low-income families only if
such activity—
109
(A) is carried out in a neighborhood con-
sisting predominately of low-income families
and provides services for such families;
(B) involves housing or facilities for use
predominately by low-income families;
(C) involves employment of persons, a ma-
jority of whom are members of low-income fam-
ilies; or
(D) is designed to serve an area generally
and is clearly designed to meet needs of low-in-
come families in such area.
(3) HOUSING ACTIVITIES.—An affordable hous-
ing activity under subsection (e) that provides dwell-
ing units and is assisted with grant amounts under
this subtitle shall be considered to benefit low-in-
come families only to the extent such housing will,
upon completion, be occupied by such families.
(c) ELIGIBLE ACTIVITIES.—An activity shall be con-
sidered an eligible activity for purposes of this subtitle
only if the activity is a community or neighborhood devel-
opment activity under subsection (d), an affordable hous-
ing activity under subsection (e), or a relocation activity
under subsection (f).
(d) COMMUNITY
AND NEIGHBORHOOD DEVELOP-
MENT ACTIVITIES.—A community or neighborhood devel-
110
opment activity under this subsection is an activity di-
rected toward encouraging or assisting the development of
viable neighborhoods and communities, providing decent
housing and a suitable living environment, or expanding
economic opportunities for families, neighborhoods, or
communities, which shall include the following activities
to carry out such purposes:
(1) PROPERTIES.—Acquisition and disposition
of property and construction, reconstruction, and in-
stallation of properties and other facilities, for public
purposes.
(2) CODE
ENFORCEMENT
AND
REMOVAL.—
Code enforcement and clearance, demolition, re-
moval, and rehabilitation of buildings and improve-
ments.
(3) PUBLIC
SERVICES.—Provision of public
services not previously provided, except that not
more that 15 percent of the amount of any assist-
ance under this subtitle to an eligible State or In-
dian tribe may be used for activities under this para-
graph.
(4) PLANNING AND TECHNICAL ASSISTANCE.—
Community and neighborhood development planning,
technical assistance, training, and capacity-building
activities.
111
(5) ECONOMIC DEVELOPMENT.—Economic de-
velopment projects that create or retain employment
or business opportunities or provide goods or serv-
ices, for low-income families.
(6) NEIGHBORHOOD DEVELOPMENT.—Provision
of assistance to neighborhood development organiza-
tions, local development corporations, and neighbor-
hood-based nonprofit organizations to support neigh-
borhood development and revitalization activities.
(7) MATCHING
AMOUNTS.—Payment of the
non-Federal share required in connection with a
Federal grant-in-aid program undertaken as part of
activities assisted with amounts provided under this
subtitle.
(e) AFFORDABLE HOUSING ACTIVITIES.—
(1) IN GENERAL.—An affordable housing activ-
ity under this subsection is an activity to assist the
development of, or to support, affordable rental
housing or affordable homeownership opportunities
through the following activities:
(A) AFFORDABLE
HOUSING
DEVELOP-
MENT.—The provision of assistance for acquisi-
tion, new construction, reconstruction, or mod-
erate or substantial rehabilitation of affordable
housing, including assistance for real property
112
acquisition, site improvement, conversion, demo-
lition, financing costs, administrative and plan-
ning costs, and other expenses.
(B) 
TENANT-BASED
ASSISTANCE.—The
provision of financial assistance to or on behalf
of low-income families for costs of such families
of renting or owing dwelling units, but only if
such assistance is not limited to use for a par-
ticular dwelling.
(C) HOMEOWNERSHIP
ASSISTANCE.—The
provision of financial assistance to or on behalf
of low-income first-time homebuyers, including
providing direct mortgage loans and second
mortgage loans, interest rate buy downs, down-
payment assistance, mortgage insurance or
guarantees, and other assistance.
(D) HOMEOWNERSHIP PROGRAMS.—Plan-
ning, organizing, establishing, or carrying out
programs for affordable housing homeowner-
ship.
(E) HOUSING
COUNSELING.—Counseling
regarding affordable rental or homeownership
opportunities, responsibilities of tenancy and
homeownership, or avoiding foreclosure, or
training and certifying such counselors.
113
(F) LEAD-BASED PAINT HAZARD REDUC-
TION.—Activities to evaluate or reduce hazards
in affordable housing resulting from lead-based
paint.
(G) TECHNICAL, CAPACITY-BUILDING, AND
OUTREACH
ASSISTANCE.—The 
provision 
of
technical, administrative, or organizational as-
sistance for, or assistance for operating ex-
penses of, community housing development or-
ganizations or other organizations supporting,
providing, or facilitating affordable housing, or
other assistance to increase the capacity of or
encourage public or private organizations, insti-
tutions, or agencies to support, develop, or fa-
cilitate affordable housing.
(H) EDUCATION
AND
RESEARCH.—Edu-
cational, training, informational, or research ac-
tivities to facilitate or assist the development or
support of affordable housing.
(I) CHILD DEVELOPMENT.—Childhood de-
velopment services in or near affordable housing
for low-income families residing in the housing.
(J) DRUG ELIMINATION.—Security or law
enforcement activities for affordable housing.
114
(2) TARGETING.—Affordable housing activities
under this subsection may include activities relating
to—
(A) affordable housing that is primarily or
specifically for elderly families, disabled fami-
lies, homeless families, persons with acquired
immunodeficiency syndrome or related diseases
and their families, or Indian families;
(B) affordable housing constructed, reha-
bilitated, maintained, or operated in connection
with job training, educational, or youth-oriented
programs; and
(C) affordable housing provided in the
form of single family homes, multifamily hous-
ing, single room occupancy housing, shared
housing, 
community 
residences, 
congregate
housing, group homes, mixed housing, support-
ive housing, emergency and overnight shelters,
transitional housing, permanent housing, and
other housing.
(3) AFFORDABILITY.—An eligible State, entitle-
ment area, or Indian tribe receiving grant amounts
under this subtitle and using such amounts as pro-
vided in this subsection for assistance or support of
affordable housing shall have the sole responsibility
115
for establishing requirements or limitations relating
to the affordability of housing for which assistance
or support is provided or activities are conducted
using such grant amounts.
(f) RELOCATION ACTIVITIES.—A relocation activity
under this subsection is an activity to relocate any family,
person, business, or organization displaced by activities as-
sisted under this subtitle.
(g) ADMINISTRATIVE COSTS.—Each eligible activity
under subsection (d), (e), or (f) shall be considered, for
purposes of this subtitle, to include payment of reasonable
administrative costs relating to carrying out such activity.
(h) MANNER
OF USE.—Grant amounts provided
under this subtitle may be used in support of eligible ac-
tivities in any manner determined appropriate by the eligi-
ble State, entitlement area, or Indian tribe receiving the
grant, including (1) providing grants, capital assistance,
loans, and subsidies, (2) providing payment or collateral
for or insurance or guarantee of loans, notes, and obliga-
tions (including assistance or collateral for State-issued
housing bonds or projects financed by such bonds), and
(3) carrying out activities directly or by contract.
(i) TRANSFER
TO OTHER ENTITIES.—An eligible
State, entitlement area, or Indian tribe that receives grant
amounts under this subtitle may distribute such amounts
116
to other entities for carrying out eligible activities, except
that the State, entitlement area, or tribe shall be respon-
sible for ensuring that the grant amounts are used in ac-
cordance with this section.
(j) REQUIRED USE
AS COLLATERAL
FOR CDBG
LOAN GUARANTEES.—For any eligible State or entitle-
ment area that, at the time of the receipt of grant
amounts under this subtitle, has outstanding (or within
which is located any eligible public entity, or any public
entity designated by an eligible public entity, that has out-
standing) any notes or obligations guaranteed under sec-
tion 108 of the Housing and Community Development Act
of 1974 (as such section was in effect immediately before
the effective date under section 451), the receipt of such
grant amounts by the State or entitlement area shall be
considered to constitute a pledge by the State or area of
such amounts and any grant to which the State or area
may become eligible under this subtitle to assure the re-
payment of such notes and obligations. For purposes of
this subsection, the term ‘‘eligible public entity’’ has the
meaning given the term in section 108(o) of such Act (as
in effect at such time).
(k) ADDITIONAL
ELIGIBLE
USES
FOR
INDIAN
TRIBES.—Notwithstanding subsection (c), with respect to
an Indian tribe that receives grant amounts under this
117
subtitle, an activity shall be considered an eligible activity
for purposes of this subtitle if the activity is—
(1) an activity described in subsection (d), (e),
or (f); or
(2) an activity to provide low-income housing on
an Indian reservation or other Indian area that, im-
mediately before the effective date under section
451, would have been eligible for assistance under a
contract between the Secretary of Housing and
Urban Development and an Indian housing author-
ity the United States Housing Act of 1937.
SEC. 405. BLOCK GRANT PLAN.
(a) IN GENERAL.—A block grant plan under this
subsection is a written document that—
(1) describes the long- and short-term objec-
tives of the State or entitlement area in using grant
amounts provided under this subtitle and section
421 and projected uses of such amounts for the fis-
cal year;
(2) in the case of a State that will distribute
grant amounts to units of general local government,
describes the method by which the State will conduct
such distribution;
(3) contains a certification by the chief execu-
tive officer of the State or entitlement area that—
118
(A) grant amounts will be used only as
provided in this title;
(B) the State or entitlement area will com-
ply with the requirements of this title; and
(C) in the case of a State, the State will
monitor recipients of grant amounts distributed
by the State to ensure compliance with this
title; and
(4) contains a certification the grant and activi-
ties funded with grant amounts will be administered
and conducted in conformity with the Civil Rights
Act of 1964 and the Fair Housing Act, and the
State or entitlement area will affirmatively further
fair housing.
(b) EFFECT OF STATEMENT OF OBJECTIVES AND
USES.—Descriptions provided pursuant to paragraph (1)
and (2) of subsection (a) shall not be binding with respect
to the use or distribution of grant amounts provided under
this title.
SEC. 406. ALLOCATION OF BLOCK GRANT AMOUNTS.
(a) IN GENERAL.—For a fiscal year, the Director
shall allocate the total amount available for allocation for
such year for grants under this subtitle among eligible
States and entitlement areas and for Indian tribes in ac-
cordance with this section. The Director shall determine
119
the allocation for each eligible State using the formula in
subsection (c) and the allocation for each entitlement area
using the formula in subsection (d). The total amount
available for grants under this subtitle for a fiscal year
shall be the amount remaining from the total amount
made available for use under this title in appropriation
Acts for the year, after amounts are reserved for grants
under subtitle B.
(b) SET-ASIDE FOR INDIAN TRIBES.—
(1) IN GENERAL.—For each fiscal year, of the
total amount available for the fiscal year for grants
under this subtitle, the Director shall reserve for
grants to Indian tribes 1 percent of such amount.
(2) DISTRIBUTION TO TRIBES.—The Director
shall provide for distribution of amounts reserved
under paragraph (1) to Indian tribes on the basis of
a competition conducted pursuant to specific criteria
for the selection of Indian tribes to receive such
amounts. The criteria shall be contained in a regula-
tion promulgated by the Director after notice and
public comment.
(3) CIVIL
RIGHTS
COMPLIANCE.—Assistance
may not be provided to an Indian tribe under this
subsection unless the tribe certifies to the Director
that any program using such assistance will be con-
120
ducted and administered in conformity with title II
of the Civil Rights Act of 1968.
(c) ALLOCATION FOR STATES.—
(1) IN GENERAL.—Of the amount available for
a fiscal year for grants under this subtitle that re-
main after amounts are reserved under subsection
(b), the Director shall allocate 20 percent among the
eligible States as provided in subsection (e).
(2) DISTRIBUTION AND USE.—An eligible State
receiving a grant under this subtitle shall distribute
grant amounts to units of general local government
located in nonentitlement areas of the State to carry
out eligible activities in accordance with this title.
(d) ALLOCATION FOR ENTITLEMENT AREAS.—Of the
amount available for a fiscal year for grants under this
subtitle that remain after amounts are reserved under sub-
section (b), the Director shall allocate 80 percent to enti-
tlement areas as provided in subsection (e).
(e) ALLOCATION FORMULA.—The Director shall es-
tablish procedures for allocating amounts to States and
entitlement areas under this subsection, which shall allo-
cate such amounts according to the formula under section
106 of the Housing and Community Development Act of
1974 (as in effect immediately before the effective date
under section 108(a)) for allocating community develop-
121
ment block grant amounts for States, metropolitan cities,
and urban counties.
Subtitle B—Block Grants for Hous-
ing for Special Populations and
Indian Housing
SEC. 421. BLOCK GRANTS FOR HOUSING FOR SPECIAL POP-
ULATIONS.
(a) IN GENERAL.—For each fiscal year, of the total
amount made available for use under this title in appro-
priation Acts for the year, the Director shall reserve for
grants under this section $1,000,000,000. Using such
amounts, the Director shall make a grant under this sec-
tion for such fiscal year to each eligible State in the
amount of the allocation for the State under subsection
(b).
(b) ALLOCATION.—For each fiscal year the Director
shall allocate amounts for grants under this section among
eligible States according to a formula established by the
Director to reflect each State’s share of the total need
among all States for housing for low-income families de-
scribed in subsection (c), as identified by objective meas-
ures of inadequate housing supply for such families, sub-
standard housing for such families, number of such fami-
lies in housing likely to be in need of rehabilitation, costs
122
of producing housing for such families, and other condi-
tions.
(c) USE OF AMOUNTS.—Amounts from a grant under
this section may be used only to carry out affordable hous-
ing activities under section 404(e) relating to affordable
housing that is primarily or specifically for low-income el-
derly families, disabled families, or persons with acquired
immunodeficiency syndrome or related diseases and their
families. Such grant amounts shall be subject to the same
restrictions applicable to grant amounts that are provided
under section 402 and used for the purposes under this
subsection.
SEC. 422. BLOCK GRANTS FOR INDIAN HOUSING.
(a) IN GENERAL.—For each fiscal year, of the total
amount made available for use under this title in appro-
priation Acts for the year, the Director shall reserve for
grants under this section an amount not exceeding the
total amount provided in fiscal year 1995 for assistance
under the United States Housing Act of 1937 for Indian
housing authorities. Using such amounts, the Director
shall make a grant under this section for such fiscal year
to each eligible Indian housing authority in the amount
of the allocation under subsection (b) for the Indian hous-
ing authority for the fiscal year.
123
(b) ALLOCATION.—The Director shall allocate
amounts made available for grants under this section for
a fiscal year among eligible Indian housing authorities as
follows:
(1) TRANSITION PERIOD.—For each of fiscal
years 1996, 1997, 1998, 1999, and 2000, the alloca-
tion for each eligible Indian housing authority shall
be an amount that bears the same proportion to
such total amount made available for the fiscal year
as the amount of assistance provided for fiscal year
1995 to such authority under the United States
Housing Act of 1937 bears to the total amount of
assistance provided for such fiscal year under such
Act to all Indian housing authorities.
(2) PERMANENT RULE.—For fiscal year 2001
and each fiscal year thereafter, the Director shall al-
locate amounts for grants under this section accord-
ing to a formula established by the Director to re-
flect each eligible Indian housing authority’s share
of the total need among all Indian housing authori-
ties for affordable housing in areas served by such
authorities, as identified by objective measures of in-
adequate housing supply, substandard housing, num-
ber of such families in housing likely to be in need
124
of rehabilitation, costs of producing housing, and
other conditions.
(c) USE OF AMOUNTS.—Amounts from a grant under
this section may be used only to carry out affordable hous-
ing activities under section 404(e) to provide affordable
housing on Indian reservations and other Indian areas.
Such grant amounts shall be subject to the same restric-
tions applicable to grant amounts that are provided under
section 402 and used for the purposes under this sub-
section.
(d) ELIGIBLE INDIAN HOUSING AUTHORITIES.—For
purposes of this section, the term ‘‘eligible Indian housing
authority’’ means—
(1) with respect to fiscal year 1996, 1997,
1998, 1999, or 2000, an entity that was operating
as an Indian housing authority on June 1, 1995, for
purposes of the United States Housing Act of 1937;
and
(2) with respect to any fiscal year thereafter,
any Indian housing authority.
Subtitle C—General Provisions
Relating to Block Grants
SEC. 431. OVERSIGHT.
(a) STATE ACTIVITY REPORTS.—Each eligible State
and entitlement area that receives grant amounts under
125
this title for a fiscal year shall submit to the Director,
in accordance with a schedule established by the Director,
a report regarding the use of grant amounts provided to
the State or area, which shall include—
(1) an assessment of the relation of the use of
grant amounts to the objectives identified in the
block grant plan of the State or entitlement area for
the fiscal year submitted under section 405;
(2) a description of accomplishments made by
projects funded with grant amounts; and
(3) an evaluation of the extent to which the
grant amounts were used for activities benefiting
low-income families.
(b) GAO AUDITS.—A State, entitlement area, unit of
general local government, Indian tribe, or Indian housing
authority may receive grant amounts under this title only
if the State, entitlement area, unit of general local govern-
ment, tribe, or authority agrees that—
(1) the Comptroller General of the United
States may audit the financial transactions of the
State, area, unit, tribe, or authority under the rules
and regulations prescribed by the Comptroller Gen-
eral, to the extent that such transactions relate to
grant amounts provided under this title; and
126
(2) to facilitate such an audit, representatives
of the General Accounting Office shall have access
to all books, accounts, records, reports, files, and
other papers, things, or property belonging to or in
use by such State, area, unit, tribe, or authority per-
taining to such financial transactions.
SEC. 432. REMEDIES FOR NONCOMPLIANCE.
(a) IN GENERAL.—If the Director determines, on the
record and after opportunity for an agency hearing, that
grant amounts provided to a State, entitlement area, In-
dian tribe, or Indian housing authority have been used in
a manner substantially in violation of any provision of this
title, the Director shall—
(1) terminate grant payments under section
402 or 421 to the State or entitlement area, termi-
nate eligibility of the tribe for amounts under section
406(b), or terminate grant payments under section
422 to the Indian housing authority, as applicable;
(2) withhold from the State, entitlement area,
tribe, or Indian housing authority all or a portion of
amounts to be made available under this title to the
State, area, tribe, or authority;
(3) reduce the amount of future payments
under this title to the State, area, tribe, or authority
by an amount equal to the amounts provided under
127
this title that were not expended in accordance with
this title; or
(4) limit the availability of amounts provided
under this title to programs, projects, or activities
not affected by such failure to comply.
(b) TERMINATION OF COMPLIANCE ACTION.—If the
Director takes action under subsection (a) with respect to
a State, entitlement area, Indian tribe, or Indian housing
authority, the Director shall, at time that the Director
first determines that the State, area, tribe, or authority
will comply with the provisions of this title—
(1) in the case of action under subsection
(a)(1), resume payments of assistance under this
title—
(A) to the State or entitlement area in the
full amount of the allocation under section 406
or 421 for the State or entitlement area,
(B) to the Indian tribe in the full amount
for which the tribe is eligible under section
406(b), or
(C) to the Indian housing authority in the
full amount for which the authority is eligible
under section 422,
as applicable;
128
(2) in the case of action under subsection
(a)(2), make withheld amounts available to the
State, entitlement area, tribe, or authority, as the
Director considers appropriate to ensure that the
State, tribe, or authority complies with the provi-
sions of this title; or
(3) in the case of action under subsection
(a)(4), release such restrictions at the time that the
Director first determines that the State, entitlement
area, tribe, or authority will comply with the provi-
sions of this title.
(c) DEFICIT REDUCTION.—With respect to any fiscal
year, any amounts allocated under section 406, 421, or
422 for a State, entitlement area, Indian tribe, or Indian
housing authority that become available as a result of ac-
tions against the State, tribe, or authority under this sec-
tion (not including amounts withheld), shall be covered
into the General Fund of the Treasury of the United
States.
(d) CIVIL ACTION.—
(1) REFERRAL.—In lieu of, or in addition to,
any action authorized by subsection (a), if the Direc-
tor has reason to believe that a State, entitlement
area, Indian tribe, or Indian housing authority re-
ceiving amounts under this title has failed to comply
129
substantially with any provision of this title, the Di-
rector may refer the matter to the Attorney General
of the United States with a recommendation that an
appropriate civil action be instituted.
(2) ACTION.—Upon such a referral the Attor-
ney General may bring a civil action in any United
States district court having venue thereof for such
relief as may be appropriate, including an action to
recover the amounts provided under this title which
were not expended in accordance with this title, or
for mandatory or injunctive relief.
(e) CIVIL ACTION TO REVIEW OF REMEDIAL AC-
TIONS.—Any State, entitlement area, Indian tribe, or In-
dian housing authority that receives notice under sub-
section (a) of the termination or reduction of payments
under this title may, within 60 days after receiving such
notice, file with the United States Court of Appeals for
the circuit in which such State is located, or in the United
States Court of Appeals for the District of Columbia, a
petition for review of the Director’s action. The petitioner
shall forthwith transmit copies of the petition to the Direc-
tor and the Attorney General of the United States, who
shall represent the Director in the litigation.
130
SEC. 433. NONDISCRIMINATION.
(a) IN GENERAL.—No person in any State shall on
the ground of race, color, national origin, religion, or sex
be excluded from participation in, be denied the benefits
of, or be subjected to discrimination under any program
or activity funded in whole or in part with funds made
available under this title. Any prohibition against discrimi-
nation on the basis of age under the Age Discrimination
Act of 1975 or with respect to an otherwise qualified
handicapped individual as provided in section 504 of the
Rehabilitation Act of 1973 shall also apply to any such
program or activity.
(b) COMPLIANCE.—Whenever the Director deter-
mines that a State or entitlement area to which a grant
is made under this title has failed to comply with sub-
section (a), the Director shall notify the chief executive
officer of the State or entitlement area of the noncompli-
ance and shall request the chief executive officer to secure
compliance. If within a reasonable period of time, not to
exceed 60 days, the chief executive officer fails or refuses
to secure compliance, the Director may—
(1) refer the matter to the Attorney General
with a recommendation that an appropriate civil ac-
tion be instituted;
(2) exercise the powers and functions provided
by title VI of the Civil Rights Act of 1964;
131
(3) take action under section 432; or
(4) take such other action as may be provided
by law.
(c) CIVIL ACTION.—When a matter is referred to the
Attorney General pursuant to subsection (b), or whenever
the Attorney General has reason to believe that a State
or entitlement area is engaged in a pattern or practice
in violation of the provisions of this section, the Attorney
General may bring a civil action in any appropriate United
States district court for such relief as may be appropriate,
including injunctive relief.
(d) EXCEPTION RELATING
TO HAWAIIAN HOME
LANDS.—The provisions of this section and any certifi-
cation of compliance with civil rights laws required under
section 405 which relate to discrimination on the basis of
race shall not apply to the provision of assistance with
grant amounts to the Hawaiian Home lands.
(e) EXCEPTION RELATING TO INDIAN TRIBES.—The
Director may waive the applicability of the provisions of
this section in connection with assistance provided under
section 406(b) to Indian tribes or under section 422 to
Indian housing authorities.
SEC. 434. DEFINITIONS.
For purposes of this subtitle and subtitles A and B,
the following definitions shall apply:
132
(1) DIRECTOR.—The term ‘‘Director’’ means
the Director of the Housing and Community Oppor-
tunities Agency established under subtitle D.
(2) INDIAN
AREA.—The term ‘‘Indian area’’
means the area within which an Indian housing au-
thority is authorized to provide low-income housing.
(3) INDIAN
HOUSING
AUTHORITY.—The term
‘‘Indian housing authority’’ means any entity that—
(A) is authorized to engage in or assist in
the development or operation of low-income
housing for Indians; and
(B) is established—
(i) by exercise of the power of self-
government of an Indian tribe independent
of State law; or
(ii) by operation of State law provid-
ing specifically for housing authorities for
Indians, including regional housing au-
thorities in the State of Alaska.
(4) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means any Indian tribe, band, group, and nation, in-
cluding Alaska Indians, Aleuts, and Eskimos, and
any Alaskan Native Village, of the United States,
which is considered an eligible recipient under the
Indian Self-Determination and Education Assistance
133
Act (Public Law 93–638) or was considered an eligi-
ble recipient under chapter 67 of title 31, United
States Code, prior to the repeal of such chapter.
(5) LOW-INCOME FAMILY.—The term ‘‘low-in-
come family’’ has the meaning given the term in
subtitle B of title II.
(6) METROPOLITAN CITY.—The term ‘‘metro-
politan city’’ has the same meaning given the term
in section 102(a) of the Housing and Community
Development Act of 1974 (as in effect immediately
before the effective date under section 108(a) of this
Act).
(7) NONENTITLEMENT AREA.—The term ‘‘non-
entitlement area’’ means an area which is not a met-
ropolitan city or part of an urban county and does
not include Indian tribes.
(8) STATE.—The term ‘‘State’’ means any
State of the United States, or any instrumentality
thereof approved by the chief executive officer, and
the Commonwealth of Puerto Rico.
(9) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’
means—
134
(A) any city, county, town, township, par-
ish, village, or other general purpose political
subdivision of a State;
(B) Guam, the Northern Mariana Islands,
the Virgin Islands, and American Samoa, or a
general purpose political subdivision thereof;
(C) a combination of such political subdivi-
sions that is recognized by the Director; and
(D) the District of Columbia and the Trust
Territory of the Pacific Islands.
(10) URBAN COUNTY.—The term ‘‘urban coun-
ty’’ has the same meaning given the term in section
102(a) of the Housing and Community Development
Act of 1974 (as in effect immediately before the ef-
fective date under section 108(a) of this Act).
SEC. 435. REGULATIONS.
The Director may issue any regulations necessary to
carry out this subtitle and subtitles A and B.
SEC. 436. FUNDING.
(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated for grants under this
title the following amounts:
(1) For fiscal year 1996, $5,000,000,000.
(2) For fiscal year 1997, $4,500,000,000.
(3) For fiscal year 1998, $4,000,000,000.
135
(4) For fiscal year 1999, $3,500,000,000.
(5) For fiscal year 2000, $3,000,000,000.
(b) LIMITATION.—The aggregate amount of grants
provided under this title in any single fiscal year beginning
after fiscal year 1999 may not exceed $3,000,000,000.
SEC. 437. REPEALS.
(a) REPEALS.—The following provisions of law are
hereby repealed:
(1) CDBG AND UDAG.—Title I of the Housing
and Community Development Act of 1974 (42
U.S.C. 5301 et seq.).
(2) CDBG ASSISTANCE FOR COLONIAS.—Sec-
tion 916 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 5306 note).
(3) YOUTHBUILD.—Subtitle D of title IV of the
Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12899 et seq.).
(4) NEIGHBORHOOD
DEVELOPMENT.—Section
123 of the Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 5318 note).
(5) COMMUNITY OUTREACH PARTNERSHIPS.—
Section 851 of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 5307 note).
136
(6) HOME.—Titles I and II of the Cranston-
Gonzalez National Affordable Housing Act (42
U.S.C. 12704 et seq.).
(7) NATIONAL HOMEOWNERSHIP TRUST.—Sub-
title A of title III of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12851 et seq.).
(8) HOUSING COUNSELING.—Subsection (e) of
section 101 and section 106, of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701w,
1701x)).
(9) HOUSING
FOR
ELDERLY
FAMILIES.—Sec-
tions 202 and 202a of the Housing Act of 1959 (12
U.S.C. 1701q, 1701q–1).
(10) ELDER
COTTAGE
HOUSING
UNIT
DEM-
ONSTRATION.—Section 806 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
1701q note).
(11) HOUSING FOR DISABLED FAMILIES.—Sec-
tion 811 of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 8013).
(12) HOPE HOMEOWNERSHIP PROGRAMS.—Sec-
tions 401 and 402, and subtitles B and C of title
IV, of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 1437aaa note, 12870 et
seq.).
137
(13) INDIAN
HOUSING
LOAN
GUARANTEES.—
Section 184 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 1515z–13a).
(14) LEAD-BASED PAINT HAZARD REDUCTION
GRANTS.—Section 1011 and part 1 of subtitle D of
title X of the Housing and Community Development
Act of 1992 (42 U.S.C. 4852, 4854 et seq.).
(15) HOMELESS
HOUSING
AND
SHELTER
AS-
SISTANCE.—Titles III and IV of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C.
11311 et seq.).
(16) INNOVATIVE HOMELESS INITIATIVES DEM-
ONSTRATION.—Section 2 of the HUD Demonstra-
tion Act of 1993 (42 U.S.C. 11301 note).
(17) HOUSING OPPORTUNITIES FOR PERSONS
WITH AIDS.—Subtitle D of title VIII of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12901 et seq.).
(18) CONGREGATE SERVICES.—Section 802 of
the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8011) and title IV of the Housing
and Community Development Amendments of 1978
(42 U.S.C. 8001 et seq.).
(b) SAVINGS PROVISION.—Nothing in this section
may be construed to affect the validity of any right, duty,