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Housing Act (42 U.S.C. 12899 et seq.) is amended to read
as follows:
‘‘Subtitle D—Youthbuild’’.
SEC. 185. DISPOSITION OF HUD-OWNED MULTIFAMILY
HOUSING PROPERTIES.
Section 203(g) of the Housing and Community De-
velopment Amendments of 1978 (12 U.S.C. 1701z–11(g))
is amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’;
(3) by redesignating paragraphs (2) and (3) (as
so amended) as paragraphs (3) and (4), respectively;
(4) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) upon the conclusion of the first year of
such 2-year period, the Secretary shall examine the
income and rent of the family and of other very low-
income families who are preexisting tenants of the
project and the rents charged for units in the project
and for similar units in the market area in which
the project is located, to determine whether upon the
expiration of such 2-year period the rent charged for
the unit occupied by the family and for similar units
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in the same market area will be significantly more
than the amount charged for the unit occupied by
the family during such 2-year period;’’; and
(5) by adding at the end the following new
paragraph:
‘‘(5) if the Secretary determines pursuant to
paragraph (2) that, upon the expiration of the 2-
year period, the family will not be able to rent a unit
in the project or a similar unit in the market area
in which the project is located without paying in rent
significantly more than the amount charged for the
unit occupied by the family during such 2-year pe-
riod, the Secretary shall, to the extent budget au-
thority is available, provide tenant-based assistance
on behalf of the family under a contract under sec-
tion 8 of the United States Housing Act of 1937
having a 5-year term.’’.
SEC. 186. GUIDELINES FOR SCREENING, ADMISSION, AND
EVICTIONS IN PUBLIC AND ASSISTED HOUS-
ING.
Not later than December 31, 1994, the Secretary of
Housing and Urban Development shall issue guidelines for
owners and managers of public and assisted housing with
respect to screening applicants for occupancy in such
housing, admissions to such housing, and evictions of resi-
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dents of such housing who are users or former users of
illegal drugs or who violate lease provisions because of al-
cohol use. The Secretary shall issue such guidelines based
on the report to the Congress issued by the Public and
Assisted Housing Occupancy Task Force on April 7, 1994,
pursuant to section 643(a)(7) of the Housing and Commu-
nity Development Act of 1992.
SEC. 187. METROPOLITAN AREA-WIDE STRATEGY DEM-
ONSTRATION.
(a) IN GENERAL.—The Secretary of Housing and
Urban Development (in this section referred to as the
‘‘Secretary’’) shall carry out, through consortia of units
of general local government, a demonstration program to
make assisted housing available in 3 metropolitan areas
on a metropolitan, area-wide basis.
(b) PURPOSE.—The demonstration program under
this section shall be designed to determine the most effec-
tive manner to—
(1) affirmatively further fair housing and ad-
dress the problem of racial segregation in metropoli-
tan areas;
(2) achieve the goal of overcoming spatial sepa-
ration and segregation of families by race, which
shall include testing the effect of filling vacancies in
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assisted housing by use of a consolidated waiting
list;
(3) enlist cooperation of units of general local
government, public housing agencies, and private
owners of assisted housing in achieving such goals;
(4) make public housing facilitate social and
economic mobility;
(5) eliminate housing discrimination; and
(6) accomplish related objectives determined by
the Secretary.
(c) ELIGIBILITY
OF CONSORTIA.—The Secretary
shall select the consortia of units of general local govern-
ment to participate in the demonstration program on a
competitive basis and make a grant to each consortia se-
lected. The Secretary may select only consortia that dem-
onstrate to the Secretary, as the Secretary shall require,
that a sufficient number of units of general local govern-
ment, public housing agencies, and private owners of as-
sisted housing are committed to participate in the dem-
onstration to make the demonstration feasible, which shall
include commitment to comply with alternative program
requirements specified by the Secretary.
(d) DURATION.—The demonstration program shall
be carried out for a period of 3 years with respect to each
site selected.
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(e) WAIVERS.—The Secretary may waive, or specify
alternative requirements for, any provision of any statute
or regulation that the Secretary administers if the Sec-
retary finds that the waiver or alternative requirement (1)
is necessary to facilitate the demonstration program, and
(2) would not be inconsistent with the overall purpose of
the statute or regulation affected. In no event may the
Secretary waive, or specify alternative requirements for,
any provision of the Internal Revenue Code of 1986, or
statutory requirements related to nondiscrimination, fair
housing, labor standards, or the environment, except that
the Secretary may waive affirmative marketing require-
ments for participants in the demonstration program.
(f) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated for the costs related to
regional planning, housing counseling, development of a
model consolidated waiting list, and administration under
the demonstration established by this section, such sums
as may be necessary for each of fiscal years 1995 and
1996.
SEC. 188. CERTAIN REVITALIZATION AND RELOCATION AS-
SISTANCE.
There are authorized to be appropriated for revital-
ization and relocation activities for the Windsor Park Sub-
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division in Las Vegas, Nevada, such sums as may be nec-
essary for fiscal year 1995.
TITLE II—HOME INVESTMENT
PARTNERSHIPS
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Section 205 of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 12724)
is amended to read as follows:
‘‘SEC. 205. AUTHORIZATION.
‘‘There are authorized to be appropriated to carry out
this title $1,700,000,000 for fiscal year 1995, and
$2,000,000,000 for fiscal year 1996, of which—
‘‘(1) not more than $25,000,000 for fiscal year
1995, and $25,000,000 for fiscal year 1996, shall be
for community housing partnership activities author-
ized under section 233; and
‘‘(2) not more than $22,000,000 for fiscal year
1995, and $22,000,000 for fiscal year 1996, shall be
for activities in support of State and local housing
strategies authorized under subtitle C.’’.
(b) NOTICE OF FUNDING AVAILABILITY.—For each
of fiscal years 1995 and 1996, the Secretary shall cause
to be published in the Federal Register notice of the avail-
ability of any amounts made available under section
205(1) of the Cranston-Gonzalez National Affordable
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Housing Act (as amended by subsection (a)) that are
available for community housing partnership activities au-
thorized under section 233. Each such notice shall be pub-
lished not later than the expiration of the 90-day period
beginning on the date that amounts are appropriated for
each of such fiscal years to carry out the program under
title II of the Cranston-Gonzalez National Affordable
Housing Act.
SEC. 202. ELIGIBLE USES OF INVESTMENT.
Section 212(a)(1) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(a)(1)) is
amended by striking ‘‘financing costs’’ and inserting
‘‘costs of financing (including credit enhancements, loan
guarantees, and debt service reserves)’’.
SEC. 203. QUALIFICATION AS AFFORDABLE RENTAL HOUS-
ING.
Section 215(a) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742(a)) is amend-
ed—
(1) in paragraph (1)(A), by striking ‘‘bears
rents not greater than’’ and inserting ‘‘is occupied
by tenants who pay as rent’’;
(2) in paragraph (3), by inserting after the pe-
riod at the end of the first sentence the following
new sentence: ‘‘A tenant occupying a rental unit as-
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sisted with amounts provided under this title shall
be considered to be a very low-income family until
the household’s income increases to more than 140
percent of the applicable income limitation under
paragraph (1)(B).’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) 
RENTAL
SUBSIDIES.—Notwithstanding
paragraph (1), housing shall not be considered to
fail to qualify as affordable housing under this title
because it includes units for which—
‘‘(A) payments are made under section 8
of the United States Housing Act of 1937 or
any comparable rental assistance program; and
‘‘(B) because of increases in the income of
tenants of the housing, the rent paid by the
tenants under the assistance program with re-
spect to such unit exceeds 30 percent of the ad-
justed income of a family whose income equals
65 percent of the median income for the area.’’.
SEC. 204. REPAYMENT OF INVESTMENT.
Section 219 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12749) is amended by
adding at the end the following new subsection:
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‘‘(d) REPAYMENT
OF
MATCHING
AMOUNTS.—
Amounts provided by a participating jurisdiction pursuant
to section 220 for housing not assisted under this title
shall be recognized for purposes of section 220(a), not-
withstanding that such amounts are not repaid to the ju-
risdiction’s HOME Investment Trust Fund, if such
amounts are drawn from an affordable housing program
operated by the jurisdiction, repaid to the program, and
available for use only for the program or for providing
housing that qualifies as affordable housing.’’.
SEC. 205. MATCHING REQUIREMENTS.
Section 220 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12750) is amended—
(1) in the first sentence of subsection (a), by in-
serting ‘‘the participating jurisdiction certifies’’ be-
fore ‘‘qualifies’’; and
(2) in subsection (b)(1)—
(A) in subparagraph (A), by striking ‘‘or’’;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(C) is made with respect to housing that
is substantially equivalent to housing that quali-
fies as affordable housing under section 215.’’.
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SEC. 206. SUPPORT FOR STATE AND LOCAL HOUSING
STRATEGIES.
Subtitle C of title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12781 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 246. STRATEGIC PLANNING AND URBAN DESIGN.
‘‘The Secretary may use amounts available under this
subtitle to provide grants to States, units of general local
government, and metropolitan, non-metropolitan, and re-
gional planning agencies, for the following activities:
‘‘(1) Urban design and the development of pub-
lic amenities in low-income neighborhoods that serve
as a catalyst for the renewal of the neighborhood.
‘‘(2) Development and implementation of com-
prehensive plans that focus on local and metropoli-
tan strategies which create sustainable community
development at the neighborhood, city, and metro-
politan level.
‘‘(3) Expanding economic opportunities for low-
and moderate-income families through areawide
planning approaches that provide educational and
employment opportunities for such persons.
‘‘(4) Coordinated efforts that stimulate fair
housing, further the deconcentration of the poor and
minorities, reduce the isolation of income groups
within communities, remove barriers to affordable
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housing development, and expand housing opportuni-
ties for low- and moderate-income families.
‘‘(5) The conservation of important historic, vis-
ual, and cultural features.
‘‘(6) The development and implementation of
comprehensive approaches that integrate poorer,
inner-city neighborhoods into the greater metropoli-
tan region.
‘‘(7) Any other activities the Secretary deter-
mines will further the purposes of this section.’’.
SEC. 207. LABOR REQUIREMENTS.
Section 286(b) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12836(b)) is amended
by adding at the end the following new sentence: ‘‘Sub-
section (a) shall not apply in the case of housing for which
a site is acquired or for which the homebuyer is assisted,
but which is not constructed, using funds made available
under this subtitle.’’.
TITLE III—SUPPORTIVE
HOUSING PROGRAMS
SEC. 301. FUNDING FOR SUPPORTIVE HOUSING FOR THE
ELDERLY AND FOR PERSONS WITH DISABIL-
ITIES.
Section 601 of the Housing and Community Develop-
ment Act of 1992 (Public Law 102–550; 106 Stat. 3802)
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is amended by striking subsection (a) and inserting the
following new subsection:
‘‘(a) AGGREGATE FUNDING.—There are authorized
to be appropriated for the purpose of providing assistance
in accordance with section 202 of the Housing Act of 1959
and section 811 of the Cranston-Gonzalez National Af-
fordable Housing Act, $1,948,000,000 for fiscal year 1995
and $1,954,000,000 for fiscal year 1996.’’.
SEC. 302. SUPPORTIVE HOUSING FOR THE ELDERLY.
(a) ELDER
COTTAGE
HOUSING
UNITS.—Section
202(b) of the Housing Act of 1959 (12 U.S.C. 1701q(b))
is amended by inserting after the second sentence the fol-
lowing new sentence: ‘‘Such assistance may also be used
to finance the acquisition and installation of elder cottage
housing units that are small, freestanding, barrier-free,
energy efficient, removable and designed to be installed
adjacent to existing 1- to 4-family dwellings and are used
as supportive housing for the elderly in accordance with
this section.’’.
(b) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
202(k)(3) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(3)) is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly’ means an elderly person whose level of functional
disability jeopardizes her or his ability to continue to live
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independently. The Secretary shall, to the extent possible,
develop assessment measures of functional disability that
are appropriate for purposes of this section and will pro-
vide for effective use of the program under this section
with other programs providing supportive services.’’.
(c) REPEAL OF DEMONSTRATION.—Section 806 of
the Cranston-Gonzalez National Affordable Housing Act
(12 U.S.C. 1701q note) is hereby repealed.
SEC. 303. SUPPORTIVE HOUSING FOR PERSONS WITH DIS-
ABILITIES.
(a) PHA’S AS ELIGIBLE SPONSORS.—Section 811 of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 8013) is amended—
(1) in the first sentence of subsection (f), by in-
serting ‘‘and public housing agencies’’ after ‘‘private
nonprofit organizations’’; and
(2) in subsection (k)—
(A) in paragraph (5), by striking ‘‘private
nonprofit organization’’ and inserting ‘‘eligible
sponsor’’; and
(B) by adding at the end the following new
paragraph:
‘‘(10) The term ‘eligible sponsor’ means—
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‘‘(A) in the case of capital advances under
subsection (b)(2) and project rental assistance
under subsections (b) (2) and (3)—
‘‘(i) a private nonprofit organization;
and
‘‘(ii) a public housing agency, but only
in the case of a jurisdiction for which the
Secretary determines that, during the 3-
year period ending upon the date of the
application of the agency for assistance
under subsection (b) (2) or (3)—
‘‘(I) no private nonprofit organi-
zation has submitted an application
under subsection (f) for assistance for
a project located in such area; and
‘‘(II) no private nonprofit organi-
zation has had such an application ap-
proved for a project located in such
area; and
‘‘(B) in the case of tenant-based rental as-
sistance under subsection (b)(1)—
‘‘(i) a private nonprofit organization;
and
‘‘(ii) a public housing agency, but only
to the extent that such assistance is used
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for providing assistance in accordance with
an allocation plan for the agency under
section 7(f) of the United States Housing
Act of 1937.’’.
(b) RENTAL ASSISTANCE
FOR EXISTING BUILD-
INGS.—Section 811 of the Cranston-Gonzalez National
Affordable Housing Act is amended—
(1) in subsection (d)(2), by adding at the end
the following new sentence: ‘‘The Secretary may
enter into contracts with private, nonprofit organiza-
tions to provide project rental assistance for sup-
portive housing for persons with disabilities, regard-
less of whether the housing is developed with capital
advances under this section.’’;
(2) in subsection (e)(1), by inserting ‘‘with cap-
ital advances’’ after ‘‘assisted’’;
(3) by striking the first 2 sentences of sub-
section (e)(2) and inserting the following new sen-
tences: ‘‘The initial term of a contract entered into
under subsection (d)(2) shall be 240 months for
housing developed with a capital advance, and shall
be not more than 60 months for housing not devel-
oped with a capital advance. The Secretary shall, to
the extent approved in appropriation Acts, extend
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any expiring contracts for a term of not less than 60
months.’’;
(4) in subsection (g)(1), by inserting ‘‘(if appli-
cable)’’ after ‘‘develop’’;
(5) in subsections (g)(3) and (g)(5), by insert-
ing ‘‘design or’’ before ‘‘proposed’’ each place it ap-
pears;
(6) in subsection (j), by striking paragraph (3)
and inserting the following new paragraph:
‘‘(3) SITE CONTROL.—
‘‘(A) CAPITAL ADVANCES.—In the case of
housing to be assisted with capital advances
under this section, an applicant may obtain
ownership or control of a suitable site different
from the site specified in the initial application.
If an applicant fails to obtain ownership or con-
trol of the site within 1 year after notification
of an award for assistance, the assistance shall
be recaptured and reallocated.
‘‘(B) PROJECT
RENTAL
ASSISTANCE.—In
the case of housing to be assisted only with
project rental assistance, the applicant shall
have ownership or control of a suitable site at
the time of application. The Secretary may ap-
prove a change in site at any time from the
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date the application is submitted to the expira-
tion date of the rental assistance contract.’’;
(7) in subsection (j)(4), by striking ‘‘The’’ and
inserting the following: ‘‘In the case of housing as-
sisted with capital advances under this section, the’’;
(8) in the second sentence of subsection (k)(1),
by striking ‘‘the development of’’;
(9) in subsection (k)(5), by inserting before the
period at the end the following: ‘‘, or that receives
rental assistance under this section to operate a
project for supportive housing for persons with dis-
abilities’’; and
(10) in subsection (m)(3), by striking ‘‘(1)’’ and
inserting ‘‘(2)’’.
(c) AUTHORITY TO PROVIDE ASSISTANCE.—Section
811 of the Cranston-Gonzalez National Affordable Hous-
ing Act is amended—
(1) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) GENERAL AUTHORITY.—The Secretary may
provide assistance to eligible sponsors to expand the sup-
ply of supportive housing for persons with disabilities.
Such assistance shall be provided as—
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‘‘(1) tenant-based rental assistance on behalf of
eligible persons with disabilities, in accordance with
subsection (d)(4);
‘‘(2) capital advances in accordance with sub-
section (d)(1), together with contracts for project
rental assistance in accordance with subsection
(d)(2); or
‘‘(3) contracts for project rental assistance in
accordance with subsection (d)(2).’’;
(2) in subsection (d)(1), by adding at the end
the following new sentences: ‘‘Capital advances may
be used to finance the acquisition, acquisition and
moderate rehabilitation, construction, reconstruction,
or moderate or substantial rehabilitation of housing,
including the acquisition from the Resolution Trust
Corporation, to be used as supportive housing for
persons with disabilities and may include real prop-
erty acquisition, site improvement, conversion, demo-
lition, relocation, and other expenses that the Sec-
retary determines are necessary to expand the sup-
ply of supportive housing for persons with disabil-
ities. Such assistance may also be used to finance
the acquisition and installation of cottage housing
units that are small, freestanding, barrier-free, en-
ergy efficient, removable and designed to be installed
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adjacent to existing 1- to 4-family dwellings and are
used as supportive housing for the persons with dis-
abilities in accordance with this section.’’;
(3) in subsections (d)(3), (e)(1), and (f), by in-
serting ‘‘or (3)’’ after ‘‘subsection (b)(2)’’ each place
it appears; and
(4) by striking paragraph (4) of subsection (d)
and inserting the following new paragraph:
‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—
‘‘(A) 
ADMINISTRATION.—Tenant-based
rental assistance that is provided under sub-
section (b)(1) shall be administered under the
same rules governing rental assistance made
available under section 8 of the United States
Housing Act of 1937.
‘‘(B) PUBLIC HOUSING AGENCIES.—A pub-
lic housing agency may provide tenant-based
rental assistance under subsection (b)(1) only if
the public housing agency has submitted, and
had approved, an allocation plan under section
7(f) of the United States Housing Act of 1937
and any such assistance made available to a
public housing agency shall be provided by the
agency in accordance with such allocation plan.
In determining the amount of assistance pro-
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vided under subsection (b)(1) for a public hous-
ing agency, the Secretary shall consider the
needs of the agency as described in the alloca-
tion plan.’’.
(d) TECHNICAL CHANGES.—Section 811(k)(6) of the
Cranston-Gonzalez National Affordable Housing Act is
amended by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) that has received tax-exempt status
under section 501(c) (3) or (4) of the Internal
Revenue Code of 1986;’’.
SEC. 304. REVISED CONGREGATE SERVICES.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
802(n)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8011(n)(1)) is amended by strik-
ing the matter preceding subparagraph (A) and inserting
the following:
‘‘(1) AUTHORIZATION AND USE.—There are au-
thorized to be appropriated to carry out this section
$25,000,000 for fiscal year 1995, and $26,000,000
for fiscal year 1996, of which not more than—’’.
(b) MEAL FEES AND MATCHING AMOUNTS.—Section
802 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 8011) is amended—
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(1) in subparagraph (A) of subsection (d)(7),
by striking ‘‘The fees for meals shall be in the fol-
lowing amounts:’’ and all that follows through the
end of the subparagraph; and
(2) in subsection (i)(1)—
(A) in subparagraph (A)(i), by striking
‘‘50 percent’’ and inserting ‘‘25 percent’’;
(B) in subparagraph (A)(ii), by striking
‘‘40 percent’’ and inserting ‘‘65 percent’’; and
(C) in subparagraph (C), by striking ‘‘10
percent’’ and inserting ‘‘25 percent’’.
(c) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
802(k)(8) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly’ means an elderly person whose level of functional
disability jeopardizes her or his ability to continue to live
independently. The Secretary shall, to the extent possible,
develop assessment measures of functional disability that
are appropriate for purposes of this section and will pro-
vide for effective use of the program under this section
with other programs providing supportive services.’’.
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SEC. 305. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER-
LY INDEPENDENCE.
(a) SECTION 8 ASSISTANCE.—The first sentence of
section 803(j) of the Cranston-Gonzalez National Afford-
able Housing Act (42 U.S.C. 8012(j)) is amended to read
as follows: ‘‘The budget authority available under section
5(c) of the United States Housing Act of 1937 for assist-
ance under section 8 of such Act is authorized to be in-
creased by $25,000,000 on or after October 1, 1994, and
by $25,000,000 on or after October 1, 1995.’’.
(b) SUPPORTIVE SERVICES AUTHORIZATION.—The
first sentence of section 803(k) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8012(k)) is
amended to read as follows: ‘‘There are authorized to be
appropriated for the Secretary to carry out the responsibil-
ities for supportive services under the demonstrations
under this section $7,000,000 to become available in fiscal
year 1995, and $7,000,000 to become available in fiscal
year 1996.’’.
(c) SUPPORTIVE SERVICES CONTRIBUTIONS.—Sec-
tion 803(c)(1) of the Cranston-Gonzalez National Afford-
able Housing Act is amended—
(1) in subparagraph (A), by striking ‘‘40 per-
cent’’ and inserting ‘‘65 percent’’; and
(2) in subparagraph (B), by striking ‘‘50 per-
cent’’ and inserting ‘‘25 percent’’.
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(d) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
803(g)(3) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly person’ means an elderly person whose level of func-
tional disability jeopardizes her or his ability to continue
to live independently. The Secretary shall, to the extent
possible, develop assessment measures of functional dis-
ability that are appropriate for purposes of this section
and will provide for effective use of the program under
this section with other programs providing supportive
services.’’.
(e) AMENDMENT TO HEADING.—Section 803 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 8012) is amended by striking the section designa-
tion and heading and inserting the following:
‘‘SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER-
LY INDEPENDENCE.’’.
SEC. 306. HOUSING OPPORTUNITIES FOR PERSONS WITH
AIDS.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
863 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12912) is amended to read as follows:
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‘‘SEC. 863. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subtitle $212,000,000 for fiscal year 1995 and
$225,000,000 for fiscal year 1996.’’.
(b) TECHNICAL ASSISTANCE.—Section 854(c)(3) of
the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 12903(c)(3)) is amended—
(1) in subparagraph (A)—
(A) in clause (i), by striking ‘‘and’’ at the
end;
(B) in clause (ii), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
clause:
‘‘(iii) nonprofit organizations that pro-
vide technical assistance on a national, re-
gional, or State-wide basis to nonprofit or-
ganizations carrying out eligible activities
under section 855 for eligible persons, to
provide such technical assistance, except
that not more than 2 percent of the
amounts available in any fiscal year for al-
location under this paragraph shall be used
as provided in this clause.’’; and
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(2) in subparagraph (B), by striking ‘‘this para-
graph’’ and inserting ‘‘clauses (i) and (ii) of sub-
paragraph (A)’’.
(c) COOPERATION.—
(1) IN GENERAL.—Section 856(c) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12905(c)) is amended by striking ‘‘The recip-
ient’’ and all that follows and inserting the following:
‘‘The recipient shall establish and implement a proc-
ess for ensuring coordination and community input
in planning for and providing services assisted with
amounts provided under this subtitle. The planning
process shall include consultation and coordination
with the agencies of the relevant State and local gov-
ernments responsible for services for eligible persons
in the area served by the applicant and with other
public and private organizations and agencies pro-
viding services for such eligible persons (including
individuals with human immunodeficiency virus dis-
ease), including community-based and AIDS service
organizations, providers of social services, providers
of mental health care, providers of substance abuse
treatment services, nonprofit providers of housing
for eligible persons, and affected communities.’’.
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(2) APPLICATION.—Section 854(d) of the Cran-
ston-Gonzalez National Affordable Housing Act (42
U.S.C. 12903(d)) is amended—
(A) in paragraph (5), by striking ‘‘and’’ at
the end;
(B) by redesignating paragraph (6) as
paragraph (7); and
(C) by inserting after paragraph (5) the
following new paragraph:
‘‘(6) a description of the activities to be under-
taken in fulfilling the requirements under section
856(c); and’’.
(d) ADMINISTRATIVE EXPENSES.—Section 856(g)(2)
of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12905(g)(2)) is amended—
(1) by striking ‘‘title’’ and inserting ‘‘subtitle’’;
and
(2) by striking ‘‘, including the costs of staff
necessary to carry out eligible activities’’.
SEC. 307. SERVICE COORDINATORS.
(a) PUBLIC HOUSING.—Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amend-
ed in subsection (a)(1)(B)(ii)—
(1) in the 1st sentence, by striking ‘‘Annual’’
and all that follows through ‘‘such project,’’ and in-
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serting ‘‘To the extent amounts are made available
pursuant to section 5(c) for carrying out this clause,
the Secretary may increase the annual contributions
provided under this section to any public housing
agency for any project to provide’’; and
(2) by striking the last 2 sentences.
(b) OTHER FEDERALLY ASSISTED MULTIFAMILY
HOUSING.—Section 676(c) of the Housing and Commu-
nity Development Act of 1992 (42 U.S.C. 13632(c)) is
amended to read as follows:
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for grants under this
section such sums as may be necessary for each of fiscal
years 1995 and 1996.’’.
TITLE 
IV—MORTGAGE 
INSUR-
ANCE 
AND 
SECONDARY
MORTGAGE MARKET
Subtitle A—Mortgage Insurance
and Loan Guarantee Programs
SEC. 401. LIMITATION ON INSURANCE AUTHORITY.
Section 531(b) of the National Housing Act (12
U.S.C. 1735f–9(b)) is amended to read as follows:
‘‘(b) Notwithstanding any other provision of law and
subject only to the absence of qualified requests for insur-
ance, to the authority provided in this Act, and to the limi-
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tation in subsection (a), the Secretary shall enter into
commitments to insure mortgages under this Act with an
aggregate principal amount of $105,000,000,000 during
fiscal year 1995 and $91,000,000,000 during fiscal year
1996.’’.
SEC. 402. FEDERAL HOUSING ADMINISTRATION ADVISORY
BOARD.
Section 202(b)(11) of the National Housing Act (12
U.S.C. 1708(b)(11)) is amended by striking ‘‘January 1,
1995.’’ and inserting ‘‘January 1, 1997.’’.
SEC. 403. MAXIMUM MORTGAGE AMOUNT CEILING FOR SIN-
GLE FAMILY MORTGAGES.
Subparagraph (A) of the first sentence of section
203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)(A)) is amended by striking clause (ii) and in-
serting the following new clause:
‘‘(ii) 85 percent of the dollar amount
limitation 
determined 
under 
section
305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (as adjusted an-
nually under such section) for a residence
of the applicable size;’’.
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SEC. 404. MAXIMUM MORTGAGE AMOUNT FLOOR FOR SIN-
GLE FAMILY MORTGAGE INSURANCE.
Subparagraph (A) of the first sentence of section
203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)(A)) is amended by striking ‘‘the dollar amount
limitation in effect under this section for the area on May
12, 1992’’ and inserting the following: ‘‘50 percent of the
dollar amount limitation determined under section
305(a)(2) of the Federal Home Loan Mortgage Corpora-
tion Act (as adjusted annually under such section) for a
residence of the applicable size’’.
SEC. 405. CALCULATION OF DOWNPAYMENT.
Section 203(b)(2) of the National Housing Act (12
U.S.C. 1709(b)(2)) is amended—
(1) by striking subparagraph (B) and inserting
the following new subparagraph:
‘‘(B) except as otherwise provided in this
paragraph (2), not in excess of—
‘‘(i) in the case of a mortgage for a
property with an appraised value equal to
or less than $50,000, 98.75 percent of the
appraised value of the property,
‘‘(ii) in the case of a mortgage for a
property with an appraised value in excess
of $50,000 but not in excess of $125,000,
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97.65 percent of the appraised value of the
property,
‘‘(iii) in the case of a mortgage for a
property with an appraised value in excess
of $125,000, 97.15 percent of the ap-
praised value of the property, or
‘‘(iv) notwithstanding clauses (ii) and
(iii), in the case of a mortgage for a prop-
erty with an appraised value in excess of
$50,000 and which is located in a State for
which the average closing cost exceeds 3.25
percent of the average, for the State, of
the sale price of properties located in the
State for which mortgages have been exe-
cuted, 97.75 percent of the appraised value
of the property,
plus the amount of the mortgage insurance pre-
mium paid at the time the mortgage is in-
sured.’’;
(2) in the 1st sentence of the matter following
subparagraph (B), by inserting before the period at
the end the following: ‘‘, and the term ‘average clos-
ing cost’ means, with respect to a State, the average,
for mortgages executed for properties that are lo-
cated within the State, of the total amounts (as de-
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termined by the Secretary) of initial service charges,
appraisal, inspection, and other fees (as the Sec-
retary shall approve) that are paid in connection
with such mortgages’’;
(3) by striking the 2d sentence of the matter
following subparagraph (B); and
(4) in penultimate undesignated paragraph—
(A) in the 2d sentence, by striking ‘‘the
preceding sentence’’ and inserting ‘‘this sub-
section’’; and
(B) by striking the 1st sentence.
SEC. 406. ELIMINATION OF RESTRICTIONS REGARDING
NEW CONSTRUCTION.
(a) IN GENERAL.—Section 203(b)(2) of the National
Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the
matter following subparagraph (B)—
(1) in the 1st undesignated paragraph, by strik-
ing ‘‘Notwithstanding any other provision of this
section,’’ and all that follows through ‘‘beginning of
construction.’’; and
(2) by striking the 2d undesignated paragraph
(relating to mortgage insurance amounts for resi-
dences having solar energy systems).
(b) REPEAL OF AUTHORITY TO EXPEND AMOUNTS
FROM INSURANCE FUND TO CORRECT SUBSTANTIAL DE-
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FECTS.—Section 518 of the National Housing Act (12
U.S.C. 1735b) is hereby repealed.
SEC. 407. AUTHORITY TO USE AMOUNTS BORROWED FROM
FAMILY MEMBERS FOR DOWNPAYMENTS.
(a) IN GENERAL.—Section 203(b)(9) of the National
Housing Act (12 U.S.C. 1709(b)(9)) is amended by insert-
ing before the period at the end the following: ‘‘: Provided
further, That for purposes of this paragraph, the Secretary
shall consider as cash or its equivalent any amounts bor-
rowed from a family member (as such term is defined in
section 201), subject only to the requirements that, in any
case in which the repayment of such borrowed amounts
is secured by a lien against the property, such lien shall
be subordinate to the mortgage and the sum of the prin-
cipal obligation of the mortgage and the obligation secured
by such lien may not exceed 100 percent of the appraised
value of the property plus any initial service charges, ap-
praisal, inspection, and other fees in connection with the
mortgage’’.
(b) DEFINITION OF FAMILY MEMBER.—Section 201
of the National Housing Act (12 U.S.C. 1707) is amended
by adding at the end the following new subsections:
‘‘(e) The term ‘family member’ means, with respect
to a mortgagor under such section, a child, parent, or
grandparent of the mortgagor (or the mortgagor’s
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spouse). In determining whether any of the relationships
referred to in the preceding sentence exist, a legally adopt-
ed son or daughter of an individual (and a child who is
a member of an individual’s household, if placed with such
individual by an authorized placement agency for legal
adoption by such individual), and a foster child of an indi-
vidual, shall be treated as a child of such individual by
blood.
‘‘(f) The term ‘child’ means, with respect to a mort-
gagor under such section, a son, stepson, daughter, or
stepdaughter of such mortgagor.’’.
SEC. 408. INDEMNIFICATION FOR MULTIFAMILY HOUSING
PROJECT MANAGERS.
Section 207(l) of the National Housing Act (12
U.S.C. 1713(l)) is amended by inserting before the period
at the end the following: ‘‘: Provided further, That, for
properties acquired by the Secretary under this section
and for properties secured by any mortgage assigned and
transferred to or held by the Secretary, the Secretary may
indemnify management contractors against claims by
third persons for death, bodily injury, or loss of or damage
to property on such terms as the Secretary determines ap-
propriate’’.
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SEC. 409. EXTENSION OF MULTIFAMILY HOUSING MORT-
GAGE AUCTION PROVISIONS.
(a) EXTENSION.—The first sentence of section
221(g)(4)(C)(viii) of the National Housing Act (12 U.S.C.
1715l(g)(4)(C)(viii)) is amended by striking ‘‘September
30, 1995’’ and inserting ‘‘December 31, 2005’’.
(b) BUDGET COMPLIANCE.—Section 221(g)(4)(C) of
the National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is
amended by adding at the end the following new clause:
‘‘(ix) This subparagraph shall be effective for
any fiscal year only to such extent or in such
amounts as are or have been provided in appropria-
tion Acts for such fiscal year.’’.
SEC. 410. STREAMLINED REFINANCING FOR HUD-HELD
MORTGAGES.
(a) IN GENERAL.—Section 223(a) of the National
Housing Act (12 U.S.C. 1715n) is amended—
(1) in paragraph (7), by striking the colon pre-
ceding ‘‘Provided further,’’ and all that follows
through ‘‘and the mortgagee’’;
(2) by redesignating paragraph (8) as para-
graph (9);
(3) by inserting after paragraph (7) the follow-
ing new paragraph:
‘‘(8) given to refinance a mortgage held by the
Secretary, upon such terms and conditions as the
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Secretary may prescribe, covering property on which
there is located a 1- to 4-family residence, or a 1-
family unit in a condominium project, which mort-
gage was formerly insured under this Act and subse-
quently assigned to the Secretary: Provided, That
the mortgagor has not previously refinanced a mort-
gage pursuant to this paragraph: Provided further,
That the mortgagor has made all payments due
under the note secured by the existing mortgage and
all payments due under the note for at least the pre-
vious 6 months, or the mortgagor is under a forbear-
ance agreement and has made all payments due
under the note secured by the existing mortgage for
at least the previous 6 months: Provided further,
That the principal amount of the refinancing mort-
gage may not exceed the outstanding principal bal-
ance of the existing mortgage by more than addi-
tional amounts owed by the mortgagor due to the
delinquency and to the receipt of assignment assist-
ance under section 230: Provided further, That the
monthly payment due under the refinancing mort-
gage may not exceed the monthly payment due
under the existing mortgage: Provided further, That
the refinancing mortgage may have a term not more
than 12 years in excess of the unexpired term of the
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assigned mortgage: Provided further, That the refi-
nancing mortgage may be insured under section
203(b) or 221(d)(2) of this Act, at the option of the
mortgagee, or under section 234(c) of this Act in the
case of a condominium: Provided further, That a re-
financing mortgage insured under section 221(d)(2)
shall involve a principal obligation in an amount not
to exceed 50 percent of the applicable dollar limita-
tion for a 1- to 4-family residence under section
203(b)(2): Provided further, That the authority
under this paragraph to refinance a mortgage shall
terminate 30 months after the date of enactment of
this Act: Provided further, That the total number of
mortgages refinanced under this paragraph may not
exceed 20,000; or’’; and
(4) by adding at the end the following new
flush material:
‘‘A mortgage of the character described in paragraphs (1)
through (6) of this subsection shall have a maturity and
a principal obligation not in excess of the maximums pre-
scribed under the applicable section or title of this Act,
except that in no case may the principal obligation of a
mortgage referred to in paragraph (5) of this subsection
exceed 90 percent of the appraised value of the mortgage
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property, and shall bear interest at such rate as may be
agreed upon by the mortgagor and the mortgagee.’’.
(b) IMPLEMENTATION.—The Secretary of Housing
and Urban Development may implement the authority to
refinance a mortgage held by the Secretary under section
223(a)(8) of the National Housing Act, as added by the
amendment made by subsection (a)(3) of this section, by
notice published in the Federal Register setting forth such
requirements as may be necessary.
SEC. 411. HOME EQUITY CONVERSION MORTGAGES FOR EL-
DERLY HOMEOWNERS.
(a) EXTENSION OF PROGRAM.—The first sentence of
section 255(g) of the National Housing Act (12 U.S.C.
1715z–20(g)) is amended by striking ‘‘September 30,
1995’’ and inserting ‘‘September 30, 2000’’.
(b) ELIGIBLE RESIDENCES.—Section 255(d)(3) of
the National Housing Act (12 U.S.C. 1715z–20(d)(3)) is
amended to read as follows:
‘‘(3) be secured by a dwelling that is designed
principally for a 1- to 4-family residence in which
the mortgagor occupies 1 of the units;’’.
(c) EXPANSION OF PROGRAM.—The second sentence
of section 255(g) of the National Housing Act (12 U.S.C.
1715z–20(g)) is amended by striking ‘‘25,000’’ and insert-
ing ‘‘50,000’’.
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(d) REPORTS.—Section 255(k) of the National Hous-
ing Act is amended by adding at the end the following
new sentences: ‘‘Each biennial report shall also include the
results of a survey conducted during the period since the
most recent report under this subsection to determine (A)
the financial and other needs of elderly homeowners that
cause such homeowners to consider obtaining home equity
conversion mortgages, and (B) the extent of consumer sat-
isfaction regarding the program under this section and
counseling provided pursuant to the requirements of this
section. In conducting the survey, the Secretary shall con-
sult a representative sample of mortgagors of mortgages
insured under this section and of elderly homeowners who
have expressed interest in obtaining, but did not obtain,
such mortgages.’’.
(e) AVOIDANCE OF PREEMPTION OF STATE LAW.—
Section 255(b)(3) of the National Housing Act is amend-
ed—
(1) in clause (B), by striking ‘‘, notwithstand-
ing any State constitution, law, or regulation’’; and
(2) by adding at the end the following new sen-
tence: ‘‘Notwithstanding any other provision of this
section, the Secretary may not provide insurance for
a home equity conversion mortgage in the State of
Texas if under the State constitution, or a law or
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regulation of such State, such mortgages are prohib-
ited or foreclosure or forced sale of the property sub-
ject to such a mortgage is prohibited.’’.
SEC. 412. SINGLE FAMILY RISK-SHARING MORTGAGE IN-
SURANCE PROGRAM.
(a) IN GENERAL.—Title II of the National Housing
Act (12 U.S.C. 1707 et seq.) is amended by adding at
the end the following new section:
‘‘SINGLE FAMILY RISK-SHARING WITH STATE AND LOCAL
AGENCIES
‘‘SEC. 256. (a) PURPOSES.—The purposes of the pro-
gram under this section are (1) to increase the availability
of single family mortgage financing in areas where there
is need for mortgage insurance under this Act that cannot
be met due to particularly high average median house
prices in the area, and (2) to foster arrangements with
State and local agencies to share the risk of mortgage in-
surance.
‘‘(b) AUTHORITY.—Notwithstanding any other provi-
sion of this Act inconsistent with this section, the Sec-
retary may insure and make commitments to insure under
this section mortgages on single family properties under
risk-sharing mortgage insurance programs established
with 1 or more States or agencies. Under such programs,
the Secretary shall insure a portion of the mortgage, and
the State or local agency shall insure the remainder or
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(at the discretion of the agency) a portion of the remain-
der and provide for private mortgage insurance companies
to insure any portion of the remainder not insured by the
agency. The portion of the mortgage insured under this
section by the Secretary and the State or local agency,
in the aggregate, may not exceed 35 percent of the out-
standing principal obligation of the mortgage (and such
fees, interest, and other expenses determined by the Sec-
retary to be appropriate).
‘‘(c) ELIGIBLE MORTGAGES.—The Secretary may in-
sure under this section, and make commitments to insure
under this section, only mortgages that—
‘‘(1) are executed—
‘‘(A) in connection with the acquisition of
a single family property; or
‘‘(B) for the refinancing of a mortgage
that was previously insured under this section;
and
‘‘(2) involve a property located in an area—
‘‘(A) for which the amount under clause
(ii) of section 203(b)(2)(A) is less than the
amount determined under clause (i) of such sec-
tion for a residence of the applicable size; and
‘‘(B) that has a State agency that—
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‘‘(i) is fully authorized under State
and local laws and is adequately capital-
ized, in the determination of the Secretary,
to carry out this section; and
‘‘(ii)(I) carries the designation of ‘top
tier’ or its equivalent, as evaluated by
Standard and Poors or any other nation-
ally recognized rating agency; or
‘‘(II) receives a rating of ‘A’ for its
general obligation bonds from a nationally
recognized rating agency.
‘‘(d) APPLICATIONS.—
‘‘(1) APPROVAL.—The Secretary may approve
an application submitted by a State or local agency
to establish a risk-sharing program under this sec-
tion, only if the Secretary determines that the State
or local agency has demonstrated that—
‘‘(A) it has the legal authority under State
law and, where applicable, local law, to partici-
pate in the program under this section;
‘‘(B) it has carried out, or has the poten-
tial to carry out, a financially sound, efficient,
and effective mortgage insurance program; and
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‘‘(C) it has the ongoing administrative and
financial capacity necessary to carry out a pro-
gram under this section.
‘‘(2) CANCELLATION OF APPROVAL.—The Sec-
retary may cancel approval of a State or local agen-
cy under this section for a violation of requirements
and procedures under the risk-sharing agreement be-
tween the State or local agency and the Secretary or
for other good cause, by giving notice to the State
or local agency. The cancellation shall be effective
upon receipt of the notice by the agency or at a later
date specified by the Secretary. A decision by the
Secretary to cancel approval shall be final and con-
clusive and shall not be subject to judicial review.
‘‘(e) DELEGATION OF AUTHORITY TO INSURE TO
STATE AND LOCAL AGENCIES.—Pursuant to a risk-shar-
ing agreement with a State or local agency, the Secretary
shall delegate the authority to insure and make commit-
ments to insure the portion of mortgages to be insured
by the Secretary under this section to the State or local
agency. The risk-sharing agreement shall contain such
other matters as the Secretary and the State or local agen-
cy agree.
‘‘(f) UNDERWRITING STANDARDS AND LOAN TERMS
AND CONDITIONS.—The State or local agency shall adopt
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underwriting standards and loan terms and conditions for
purposes of underwriting loans to be insured under this
section. Such standards shall be at least as stringent as
the standards pursuant to this Act for mortgages insured
under section 203 and shall be subject to review and ap-
proval by the Secretary.
‘‘(g) MORTGAGE INSURANCE PREMIUMS.—
‘‘(1) REQUIREMENT.—The State or local agen-
cy shall require the payment of mortgage insurance
premiums by mortgagors.
‘‘(2) SHARES.—The Secretary shall establish
policies and procedures for the sharing of premiums
between the Secretary and the State or local agency,
based on the relative risk to, and administrative
costs of, the Secretary and the State or local agency.
The share paid to the Secretary shall not be less
than an amount necessary to cover the risk to, and
administrative costs of, the Secretary.
‘‘(h) 
LIMITATIONS
ON
PRINCIPAL
MORTGAGE
AMOUNT.—
‘‘(1) INSURED PORTION.—The portion of the
mortgage insured under this section by the Sec-
retary may not exceed an amount equal to the lesser
of (A) 80 percent of the appraised value of the prop-
erty, or (B) the maximum amount the Secretary
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may insure under section 203(b) of this Act for the
area (but not including any amount for a mortgage
insurance premium).
‘‘(2) TOTAL
PRINCIPAL
AMOUNT.—The total
principal amount of a mortgage insured under this
section by the Secretary and the State or local agen-
cy (A) shall exceed the maximum amount the Sec-
retary may insure under subparagraph (A) of the
first sentence of section 203(b)(2) for the area, and
(B) may not exceed the conforming loan limitation
determined under section 305(a)(2) of the Federal
Home Loan Mortgage Corporation Act for a resi-
dence of the applicable size, as adjusted annually.
‘‘(3) LOAN-TO-VALUE
RATIO.—The principal
obligation of a mortgage may not exceed an amount
determined in accordance with subparagraph (B) of
the first sentence of section 203(b)(2) plus the mort-
gage insurance premium.
‘‘(4) 
REFINANCING
MORTGAGES.—Notwith-
standing paragraph (2)(A) or (3), in the case of refi-
nancing of an existing mortgage that was previously
insured under this section, the principal obligation of
a refinancing mortgage may not exceed the out-
standing principal balance of the existing mortgage
plus any mortgage insurance premium.
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‘‘(i) INSURANCE CLAIMS.—
‘‘(1) PROCEDURE.—In the case of a default and
foreclosure of a mortgage insured under this section,
the mortgagee may file a claim with the State or
local agency for insurance benefits in accordance
with requirements established by the State or local
agency and approved by the Secretary. The agency
shall pay the full amount of the claim owed to the
mortgagee. If the loss on the insured mortgage ex-
ceeds the amount of insurance by the agency, the
Secretary shall reimburse the agency for the dif-
ference.
‘‘(2) MUTUAL MORTGAGE INSURANCE FUND.—
The insurance of a mortgage under this section by
the Secretary shall be an obligation of the Mutual
Mortgage Insurance Fund created pursuant to sec-
tion 205.
‘‘(j) INAPPLICABILITY OF THE ASSIGNMENT PRO-
GRAM.—Section 230 shall not apply to mortgages insured
under the program authorized by this section.
‘‘(k) RESTRICTION ON GNMA SECURITIZATION.—
The Government National Mortgage Association shall not
securitize any loans insured under this section.
‘‘(l) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
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‘‘(1) The term ‘local agency’ means an agency
of a unit of general local government, as defined by
the Secretary, that has the authority to insure mort-
gages and to participate with the Secretary in the
single family risk-sharing program under this sec-
tion, or an agency or instrumentality of a local agen-
cy if the agency or instrumentality has such author-
ity.
‘‘(2) The term ‘State agency’ means an agency
of a State that has the authority to insure mort-
gages and to participate with the Secretary in the
single family risk-sharing program under this sec-
tion, or an agency or instrumentality of a State
agency if the agency or instrumentality has such au-
thority.
‘‘(3) The term ‘single family property’ means a
property upon which there is located a dwelling de-
signed principally for occupancy by 1 family, and in-
cludes a condominium and a cooperative.
‘‘(4) The term ‘State’ means the several States,
the Commonwealth of Puerto Rico, the District of
Columbia, Guam, the Commonwealth of the North-
ern Mariana Islands, American Samoa, and the Vir-
gin Islands.’’.
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(b) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue any regulations necessary
to implement the amendment made by subsection (a).
SEC. 413. DELEGATION OF SINGLE FAMILY MORTGAGE IN-
SURING AUTHORITY TO DIRECT ENDORSE-
MENT MORTGAGEES.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new section:
‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT
ENDORSEMENT MORTGAGEES
‘‘SEC. 257. (a) AUTHORITY.—The Secretary may del-
egate, to one or more mortgagees approved by the Sec-
retary under the direct endorsement program, the author-
ity of the Secretary under this Act to insure mortgages
involving property upon which there is located a dwelling
designed principally for occupancy by 1 to 4 families.
‘‘(b) CONSIDERATIONS.—In determining whether to
delegate authority to a mortgagee under this section, the
Secretary shall consider the experience and performance
of the mortgagee under the direct endorsement program,
the default rate of insured mortgages originated by the
mortgagee compared to the default rate of all insured
mortgages in comparable markets, and such other factors
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as the Secretary determines appropriate to minimize risk
of loss to the insurance funds under this Act.
‘‘(c) ENFORCEMENT
OF
INSURANCE
REQUIRE-
MENTS.—
‘‘(1) IN GENERAL.—If the Secretary determines
that a mortgage insured by a mortgagee pursuant to
delegation of authority under this section was not
originated in accordance with the requirements es-
tablished by the Secretary, and the Secretary pays
an insurance claim with respect to the mortgage
within a reasonable period specified by the Sec-
retary, the Secretary may require the mortgagee ap-
proved under this section to indemnify the Secretary
for the loss.
‘‘(2) 
FRAUD
OR
MISREPRESENTATION.—If
fraud or misrepresentation was involved in connec-
tion with the origination, the Secretary may require
the mortgagee approved under this section to indem-
nify the Secretary for the loss regardless of when an
insurance claim is paid.
‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—
If a mortgagee to which the Secretary has made a delega-
tion under this section violates the requirements and pro-
cedures established by the Secretary or the Secretary de-
termines that other good cause exists, the Secretary may
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cancel a delegation of authority under this section to the
mortgagee by giving notice to the mortgagee. Such a can-
cellation shall be effective upon receipt of the notice by
the mortgagee or at a later date specified by the Secretary.
A decision by the Secretary to cancel a delegation shall
be final and conclusive and shall not be subject to judicial
review.
‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap-
proving a delegation under this section, the Secretary shall
issue regulations establishing appropriate requirements
and procedures, including requirements and procedures
governing the indemnification of the Secretary by the
mortgagee.’’.
SEC. 414. ELIGIBILITY OF MORTGAGES ON HOMES ON
LEASED LAND OWNED BY COMMUNITY LAND
TRUSTS.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new section:
‘‘ELIGIBILITY OF MORTGAGES ON HOMES ON LEASED
LAND OWNED BY COMMUNITY LAND TRUSTS
‘‘SEC. 258. (a) ELIGIBILITY FOR INSURANCE.—In
providing mortgage insurance under any provision of this
title for a mortgage covering a 1- to 4-family residence,
the Secretary may insure a mortgage covering such a resi-
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dence which is located on property owned by a community
land trust without regard to the extent to which the resale
price of the residence is restricted or the manner in which
such price is established.
‘‘(b) LIMITATION ON RESTRICTIONS.—The Secretary
may not, as a condition of such insurance, establish any
requirements regarding the resale price of residences on
land owned by a community land trust, except that the
Secretary may require that a ground lease or other docu-
ment establishing legally enforceable restrictions or limita-
tions on the resale price provide that the restrictions or
limitations be cancelable in the event of foreclosure or de-
livery of a deed in lieu of foreclosure (or assignment).
‘‘(c) DEFINITION OF ‘COMMUNITY LAND TRUST’.—
For purposes of this section, the term ‘community land
trust’ has the meaning given the term in section 233 of
the Cranston-Gonzalez National Affordable Housing
Act.’’.
SEC. 415. INSURANCE OF 2-STEP SINGLE FAMILY MORT-
GAGES.
Title II of the National Housing Act (12 U.S.C. 1701
et seq.), as amended by the preceding provisions of this
Act, is further amended by adding at the end the following
new section:
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‘‘2-STEP SINGLE FAMILY MORTGAGES
‘‘SEC. 259. (a) AUTHORITY.—After making the find-
ing required under subsection (d), the Secretary may in-
sure under any provision of this title a mortgage involving
property upon which there is located a dwelling designed
principally for occupancy by 1 to 4 families, where the
mortgage provides that the effective rate of interest
charged is—
‘‘(1) fixed for the duration of a specified period
that consists of not less than the first 5 years of the
mortgage term;
‘‘(2) adjusted by the mortgagee upon the expi-
ration of the specified period referred to in para-
graph (1) for the mortgage; and
‘‘(3) for the term of the mortgage remaining
after such adjustment—
‘‘(A) fixed at the adjusted rate established
pursuant to paragraph (2); or
‘‘(B) periodically adjusted by the mortga-
gee.
‘‘(b) REDETERMINATION OF RATE.—For each mort-
gage insured pursuant to this section, the adjustment of
the effective rate of interest pursuant to subsection (a)(2)
may be accomplished through adjustments in the monthly
payment amount, the outstanding principal balance, or the
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mortgage term, or a combination of such factors, except
that in no case may any extension of a mortgage term
result in a total term in excess of 40 years. The adjust-
ment in the effective rate of interest shall correspond to
a specified national interest rate index that is approved
in regulations issued by the Secretary and information on
which is readily accessible to the mortgagors from gen-
erally available published sources.
‘‘(c) LIMITATIONS
ON
SECOND-STEP
PERIODIC
RATES.—For each mortgage insured pursuant to this sec-
tion for which the effective rate of interest charged pursu-
ant to subsection (a)(3) is periodically adjusted under sub-
paragraph (B) of such subsection, such adjustments in the
interest rate—
‘‘(1) may be accomplished through adjustments
in the monthly payment amount, the outstanding
principal balance, or the mortgage term, or a com-
bination of such factors, except that in no case may
any extension of a mortgage term result in a total
term in excess of 40 years;
‘‘(2) shall correspond to a specified national in-
terest rate index that is approved in regulations is-
sued the Secretary and information on which is
readily accessible to the mortgagors from generally
available published sources;
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‘‘(3) shall be made on an annual basis;
‘‘(4) shall be limited, with respect to any single
interest rate increase, to no more than 1 percent on
the outstanding loan balance; and
‘‘(5) be limited to a maximum increase of 5 per-
centage points above the initial contract interest rate
over the term of the mortgage.
‘‘(d) CONDITIONS ON INSURING AUTHORITY.—The
Secretary may insure mortgages pursuant to this section
only after determining that the risk posed by such insur-
ance to the financial safety and soundness of the insurance
fund of which the mortgage insurance is an obligation does
not exceed such risk posed by insurance of mortgages of
equivalent terms having fixed interest rates over such
terms.
‘‘(e) DESCRIPTION OF FEATURES.—The Secretary
shall issue regulations requiring that the mortgagee make
available to the mortgagor, at the time of loan application,
a written explanation of the features of the 2-step mort-
gage insured pursuant to this section.
‘‘(f) LIMITATION OF TOTAL NUMBER OF MORTGAGES
INSURED.—The aggregate number of mortgages and
loans insured pursuant to this section in any fiscal year
may not exceed 10 percent of the aggregate number of
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mortgages and loans insured by the Secretary under this
title during the preceding fiscal year.’’.
SEC. 416. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS
IN HIGH-COST AREAS.
(a) IN GENERAL.—Each of the provisions under sub-
section (b) is amended by striking ‘‘140 percent’’ and in-
serting ‘‘152 percent’’.
(b) PROVISIONS AMENDED.—The provisions under
this subsection are the following sections of title II of the
National Housing Act (12 U.S.C. 1707 et seq.):
(1) Section 207(c)(3).
(2) Section 213(b)(2).
(3) Section 220(d)(3)(B)(iii).
(4) Section 221(d)(3)(ii).
(5) Section 221(d)(4)(ii).
(6) Section 231(c)(2).
(7) Section 234(e)(3).
SEC. 417. APPROVAL OF POINT-OF-USE PURIFICATION SYS-
TEMS AND TESTING OF SYSTEMS.
(a) IN GENERAL.—Section 424 of the Housing and
Community Development Act of 1987 (12 U.S.C. 1701z–
15) is amended—
(1) in subsection (a), by inserting after the pe-
riod at the end the following new sentence: ‘‘The
Secretary of Housing and Urban Development shall
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provide for the approval under subsection (c) of both
point-of-use and point-of-entry water treatment
equipment and water purification systems that meet
the standards established under this section.’’;
(2) in the first sentence of subsection (b), by
striking ‘‘general standards recognized by the De-
partment as modified for local or regional condi-
tions’’ and inserting the following: ‘‘standards for
testing using (1) industry-accepted product testing
protocols, or (2) protocols that utilize technically
valid methodology using analytical testing methods
of the Environmental Protection Agency for drinking
water quality and maximum contaminant levels or
equivalent methods’’;
(3) by redesignating subsection (b) (as amended
by paragraph (2) of this section) as subsection (c);
and
(4) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) POINT-OF-USE EQUIPMENT.—For any property
in which the water treatment or purification system in op-
eration employs point-of-use equipment, the Secretary
may not require that a treatment or purification system
be employed on any water supply source serving the prop-
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erty that provides water that will not be used primarily
for human consumption.’’.
(b) REGULATIONS.—The Secretary of Housing and
Urban Development shall issue any regulations necessary
to carry out section 424 of the Housing and Community
Development Act of 1987, as amended by subsection (a)
of this section, not later than the expiration of the 6-
month period beginning on the date of the enactment of
this Act.
SEC. 418. ENERGY EFFICIENT MORTGAGES PILOT PRO-
GRAM.
Section 106 of the Energy Policy Act of 1992 (42
U.S.C. 12712 note) is amended—
(1) in subsection (a)(2)—
(A) in subparagraph (A), by inserting
‘‘(which may be an adjustable rate mortgage in-
sured under section 251 of such Act and may
be a mortgage for a property that is not the
principal or secondary residence of the mortga-
gor to the extent provided in section 203(g) of
such Act)’’ after ‘‘Act’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(D) RATING
AND
INSTALLATION.—The
program shall provide that the person conduct-
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ing the home energy rating report under sub-
section (c)(2) for the property subject to the en-
ergy efficient mortgage may also, subject only
to the approval of the mortgagee and mortga-
gor, install the energy efficiency improve-
ments.’’; and
(2) in subsection (c)—
(A) in paragraph (1), by inserting ‘‘(in-
cluding an adjustable rate mortgage loan eligi-
ble for insurance under section 251 of such
Act)’’ after ‘‘Act’’; and
(B) in the first sentence of paragraph (2),
by striking ‘‘the total present value cost’’ and
all that follows through the end of the sentence
and inserting the following: ‘‘energy improve-
ments that generate energy savings in the first
year after improvement that are greater than
the increase in the amount of the loan payment
for such first-year due to the energy improve-
ments. In the case of a base loan insured under
section 251 of the National Housing Act, the
interest rate used to determine the amount of
such increase in the loan payment shall be the
maximum allowable interest rate under the
mortgage.’’.
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SEC. 419. EXTENSION OF MULTIFAMILY MORTGAGE CREDIT
DEMONSTRATIONS.
Section 542 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 1707 note) is amended—
(1) in subsection (b)(5), by striking ‘‘1993 and
1994’’ and inserting ‘‘1995 and 1996’’; and
(2) in subsection (c)(4), by striking ‘‘1993,
1994, and 1995’’ and inserting ‘‘1995, 1996, and
1997’’.
SEC. 420. INDIAN HOUSING LOAN GUARANTEES.
(a) LIMITATION
ON
OUTSTANDING
AGGREGATE
PRINCIPAL AMOUNT.—Section 184(i)(5)(C) of the Hous-
ing and Community Development Act of 1992 (12 U.S.C.
1515z–13a(i)(5)(C)) is amended by striking ‘‘fiscal years
1993 and 1994’’ and inserting ‘‘fiscal years 1995 and
1996’’.
(b) AUTHORIZATION OF APPROPRIATIONS FOR GUAR-
ANTEE FUND.—Section 184(i)(7) of the Housing and
Community Development Act of 1992 (12 U.S.C. 1515z–
13a(i)(7)) is amended to read as follows:
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the
Guarantee 
Fund 
to 
carry 
out 
this 
section
$50,000,000 for fiscal year 1995 and $50,000,000
for fiscal year 1996.’’.
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SEC. 421. NATIONAL COMMISSION ON THE FUTURE OF THE
FEDERAL HOUSING ADMINISTRATION.
(a) PURPOSE.—The purpose of this section is to es-
tablish a national commission to develop recommendations
regarding the appropriate future role of the Federal Gov-
ernment in providing mortgage insurance, for modernizing
and improving the structure and operations of the Federal
Housing Administration, for protecting the safety and
soundness of the insurance funds of the FHA, and for
serving families currently underserved by the mortgage fi-
nance system.
(b) ESTABLISHMENT.—There is hereby established a
commission to be known as the National Commission on
the Future of the Federal Housing Administration.
(c) MEMBERSHIP.—
(1) IN GENERAL.—The Commission shall con-
sist of the Secretary of Housing and Urban Develop-
ment and 16 members appointed, not later than 60
days after amounts to carry out this section are
made available under subsection (h), as follows:
(A) 4 members shall be appointed by the
Chairman of the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and 4
members shall be appointed by the Ranking Mi-
nority Member of such Committee.
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(B) 4 members shall be appointed by the
Chairman of the Committee on Banking, Fi-
nance and Urban Affairs of the House of Rep-
resentatives and 4 members shall be appointed
by the Ranking Minority Member of such Com-
mittee.
(2) QUALIFICATIONS.—The 8 members of the
Commission appointed under each of subparagraphs
(A) and (B) of paragraph (1) shall include—
(A) 1 individual who represents the mort-
gage finance industry;
(B) 1 individual with knowledge and expe-
rience from a secondary mortgage market en-
tity;
(C) 1 individual with knowledge and expe-
rience concerning home sales or multifamily
housing management;
(D) 1 individual who represents the private
mortgage insurance industry;
(E) 1 individual with knowledge and expe-
rience concerning single family or multifamily
housing asset management;
(F) 1 individual who represents a State or
local housing agency active in single family or
multifamily housing activities;
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(G) 1 individual who represents the inter-
ests of consumers or communities, in single
family or multifamily housing; and
(H) 1 individual who represents or resides
in an urban or rural neighborhood whose resi-
dents consist predominantly of members of mi-
norities.
(3) CHAIRPERSON.—The Commission shall elect
a chairperson from among members of the Commis-
sion.
(4) QUORUM.—A majority of the members of
the Commission shall constitute a quorum for the
transaction of business.
(5) VOTING.—Each member of the Commission
shall be entitled to 1 vote, and all votes shall be
given equal weight.
(6) VACANCIES.—Any vacancy on the Commis-
sion shall not affect the powers of the Commission
and shall be filled in the manner in which the origi-
nal appointment was made.
(7) PROHIBITION ON ADDITIONAL PAY.—Mem-
bers of the Commission shall serve without com-
pensation, but shall be reimbursed for travel, sub-
sistence, and other necessary expenses incurred in
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the performance of their duties as members of the
Commission.
(d) SUBCOMMITTEES.—In carrying out its duties
under subsection (e), the Commission shall establish 2
subcommittees, 1 of which shall carry out such duties with
respect to issues relating to mortgage insurance for multi-
family housing and 1 of which shall carry out such duties
with respect to issues relating to mortgage insurance for
single family housing.
(e) DUTIES.—
(1) IN GENERAL.—The Commission shall con-
duct a study of the existing operations of the FHA
and shall make recommendations regarding the fu-
ture mission, organization, responsibilities, and func-
tion of the FHA. In conducting the study and for-
mulating recommendations, the Commission shall—
(A) determine the most appropriate role
for the Federal Government in extending the
availability of mortgage credit and review var-
ious alternative mortgage products and, with
regard to the mission and functions of the
FHA, the appropriateness of the use of such
products by the FHA;
(B) determine whom FHA programs are
intended to serve;
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(C) consider whether the FHA could func-
tion more effectively if organized as a govern-
ment corporation, a government-sponsored en-
terprise, or with any other organizational struc-
ture different from the existing structure;
(D) consider whether the personnel, pro-
curement, budgeting, and other requirements
generally applicable to the Federal agencies
should be modified in their applicability to the
FHA;
(E) review the laws establishing and relat-
ing to the FHA and determine whether amend-
ments to such law would be appropriate to re-
structure the FHA, or to provide new authority
or increased flexibility for the operations of the
FHA;
(F) determine ways in which the FHA can
more effectively contribute to the revitalization
of inner cities and increase housing opportuni-
ties for low-income families;
(G) determine ways to improve the man-
agement and sale of assets owned by the FHA;
(H) determine ways to reduce the risk of
future insurance losses from the existing inven-
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tory of outstanding mortgages insured by the
FHA; and
(I) determine ways to improve the private
management of multifamily properties insured
by the FHA.
(2) INTERIM REPORT.—Not later than the expi-
ration of the 10-month period beginning upon the
appointment of all of the members of the Commis-
sion under subsection (c), the Commission shall sub-
mit to the Secretary of Housing and Urban Develop-
ment and to the Congress an interim report contain-
ing the preliminary information and evaluations
specified in paragraph (1) and initial recommenda-
tions for legislative and administrative actions to
carry out the determinations made pursuant to para-
graph (1).
(3) REPORT.—Not later than the expiration of
the 18-month period beginning upon the appoint-
ment of all of the members of the Commission under
subsection (c), the Commission shall submit to the
Secretary of Housing and Urban Development and
to the Congress a report containing the information
and evaluations specified in paragraph (1) and spe-
cific recommendations for legislative and administra-
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tive actions to carry out the determinations made
pursuant to paragraph (1).
(f) POWERS.—
(1) HEARINGS.—The Commission may, for the
purpose of carrying out this section, hold such hear-
ings and sit and act at such times and places as the
Commission considers appropriate.
(2) RULES AND REGULATIONS.—The Commis-
sion may adopt such rules and regulations as may
be necessary to establish its procedures and to gov-
ern the manner of its operations, organization, and
personnel.
(3) ASSISTANCE FROM FEDERAL AGENCIES.—
(A) INFORMATION.—The Commission may
secure directly from any department or agency
of the United States such data and information
as the Commission may require for the purpose
of carrying out this section. Upon request of
the Commission, any such department or agen-
cy shall furnish such data or information. The
Commission may acquire data or information
directly from such departments or agencies to
the same extent that the Secretary may acquire
such data or information.
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(B) 
ADMINISTRATIVE
SUPPORT.—The
General Services Administration shall provide to
the Commission, on a reimbursable basis, ad-
ministrative support services requested by the
Commission.
(C) PERSONNEL DETAILS.—Upon the re-
quest of the chairperson of the Commission, the
Secretary shall, to the extent possible and sub-
ject to the discretion of the Secretary, detail
any of the personnel of the Department of
Housing 
and 
Urban 
Development, 
on 
a
nonreimbursable basis, to assist the Commis-
sion in carrying out its duties under this
section.
(4) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other Federal agencies.
(5) CONTRACTING.—The Commission may, to
such extent and in such amounts as are provided in
appropriations Acts, enter into contracts necessary
to carry out its duties under this section.
(6) ADVISORY
COMMITTEE.—The Commission
shall be considered an advisory committee within the
meaning of the Federal Advisory Committee Act.
(7) STAFF.—
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(A) EXECUTIVE DIRECTOR.—The Commis-
sion shall appoint an executive director of the
Commission who shall be compensated at a rate
fixed by the Commission, but which may not ex-
ceed the rate established for level V of the Ex-
ecutive Schedule under title 5, United States
Code.
(B) PERSONNEL.—In addition to the exec-
utive director, the Commission may appoint and
fix the compensation of such personnel as the
Commission considers appropriate, in accord-
ance with the provisions of title 5, United
States Code, governing appointments in the
competitive service, and the provisions of chap-
ter 51 and subchapter III of chapter 53 of such
title, relating to classification and General
Schedule pay rates.
(C) LIMITATION.—This paragraph shall be
effective only to the extent amounts are made
available in appropriation Acts.
(g) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) The term ‘‘Commission’’ means the Na-
tional Commission on the Future of the Federal
Housing Administration.
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(2) The term ‘‘FHA’’ means the Federal Hous-
ing Administration of the Department of Housing
and Urban Development.
(3) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
(h) FUNDING.—Of any amounts appropriated pursu-
ant to section 501 of the Housing and Urban Development
Act of 1970, the Secretary shall set aside to carry out
this section $1,000,000 for fiscal year 1995. Any amounts
made available pursuant to this subsection shall remain
available until expended.
(i) SUNSET.—The Commission shall terminate upon
the expiration of the 18-month period that begins upon
the appointment of all of the members of the Commission
under subsection (c).
SEC. 422. ACTION AND REPORT ON COOPERATIVE HOME-
OWNERSHIP FOR LOW- AND MODERATE-IN-
COME FAMILIES.
(a) REVIEW.—The Secretary of Housing and Urban
Development, acting through the Assistant Secretary who
is the Federal Housing Commissioner, shall review the re-
port of The Urban Institute, dated May 1994 and entitled
‘‘Performance of HUD Subsidized Loans: Does Coopera-
tive Housing Matter?’’.
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(b) ACTION.—Not later than 9 months after the date
of the enactment of this Act, the Secretary shall imple-
ment any recommendations made in the report referred
to in subsection (a) that (1) the Secretary considers appro-
priate and feasible, (2) are within the jurisdiction of the
Assistant Secretary referred to in subsection (a), and (3)
the Secretary has authority under law to implement.
(c) REPORT.—The Secretary shall submit a report to
the Congress not later than 9 months after the date of
the enactment of this Act, which shall—
(1) evaluate the report referred to in subsection
(a);
(2) describe any action taken under subsection
(b);
(3) identify and proposes the elimination of any
Federal housing policies or programs that, in the de-
termination of the Secretary, inhibit the development
of cooperative homeownership for low- and mod-
erate-income families; and
(4) recommend any legislative action necessary
to eliminate the policies or programs identified
under paragraph (3).
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SEC. 423. STUDY OF ACTIVITY OF PRIVATE MORTGAGE
BANKERS AND INSURERS.
(a) STUDY.—The Secretary of Housing and Urban
Development shall conduct a study to determine the pat-
terns of lending and insurance activity of private mortgage
lenders and private mortgage insurers, respectively. The
study shall be designed to determine—
(1) the geographical areas in which properties
are located for which loans are made by private
mortgage lenders and the characteristics of such
areas;
(2) the extent of lending activity by private
mortgage lenders, in terms of number of loans and
principal amount, in areas having a low median in-
come, a moderate median income, and other areas;
(3) the types of loans made by private mortgage
lenders, and the extent of lending activity, in each
of the areas described in paragraph (2), which shall
include the types and extent of any lending activity
made in connection with economic development of
low- and moderate-income areas;
(4) the geographical areas in which properties
are located for which mortgage insurance is provided
by private mortgage insurers and the characteristics
of such areas;
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(5) the extent of insurance activity by private
mortgage insurers, in terms of number of loans in-
sured and principal amount insured, in areas having
a low median income, a moderate median income,
and other areas; and
(6) the types of loans insured and extent of in-
surance activity by private mortgage insurers in each
of the areas described in paragraph (5), which shall
include the types and extent of any insurance activ-
ity made in connection with mortgages or loans for
economic development activity in low- and moderate-
income areas.
(b) REPORT.—The Secretary shall submit a report to
the Congress describing the results of the study under this
section not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘private mortgage insurer’’ means
a person who provides insurance against the
nonpayment of, or default on, a mortgage or loan
for residential or commercial property that is not in-
surance made available under the National Housing
Act, title 38 of the United States Code, or title V
of the Housing Act of 1949; and
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(2) the term ‘‘private mortgage lender’’ means
any lender that is not subject to the supervision, ap-
proval, regulation, or insuring of the Board of Gov-
ernors of the Federal Reserve System, the Federal
Deposit Insurance Corporation, the Comptroller of
the Currency, the Office of Thrift Supervision, the
National Credit Union Administration, or any other
Federal agency that regulates lending activity. The
term does not include institutions engage primarily
in the purchase of mortgage loans.
Subtitle B—Secondary Mortgage
Market Programs
SEC. 441. LIMITATION ON GNMA GUARANTEES OF MORT-
GAGE-BACKED SECURITIES.
Section 306(g)(2) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1721(g)(2)) is amend-
ed to read as follows:
‘‘(2) Notwithstanding any other provision of law and
subject only to the absence of qualified requests for guar-
antees, to the authority provided in this subsection, and
to the extent of or in such amounts as any funding limita-
tion approved in appropriation Acts, the Association shall
enter into commitments to issue guarantees under this
subsection in an aggregate amount of $130,000,000,000
during fiscal year 1995 and $130,000,000,000 during fis-
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cal year 1996. There are authorized to be appropriated
to cover the costs (as such term is defined in section 502
of the Congressional Budget Act of 1974) of guarantees
issued under this Act by the Association such sums as may
be necessary for each of fiscal years 1995 and 1996.’’.
SEC. 442. ASSESSMENT COLLECTION DATES FOR OFFICE
OF FEDERAL HOUSING ENTERPRISE OVER-
SIGHT.
Section 1316(b) of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4516(b)) is amended
by striking paragraph (2) and inserting the following new
paragraph:
‘‘(2) TIMING OF PAYMENT.—The annual assess-
ment shall be payable semiannually for each fiscal
year, on October 1st and April 1st.’’.
Subtitle C—Emergency Mortgage
Relief
SEC. 461. AMENDMENTS TO EMERGENCY HOMEOWNERS’
RELIEF ACT.
(a) FINDINGS.—Section 102(a) of the Emergency
Homeowners’ Relief Act (12 U.S.C. 2701(a)) is amend-
ed—
(1) by striking paragraph (1) and inserting the
following new paragraph:
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‘‘(1) certain homeowners in the United States
are encountering severe economic hardships as a re-
sult of unemployment or a reduction in income;’’;
(2) in paragraph (2), by striking ‘‘adverse eco-
nomic conditions’’ and inserting ‘‘economic hard-
ships’’; and
(3) in paragraph (3), by striking ‘‘economic
conditions’’ and inserting ‘‘their economic condi-
tions’’.
(b) MORTGAGES ELIGIBLE FOR ASSISTANCE.—Sec-
tion 103 of the Emergency Homeowners’ Relief Act (12
U.S.C. 2702) is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the
end;
(2) in paragraph (6)—
(A) by inserting ‘‘a 1- to 4-family resi-
dence that is’’ after ‘‘is’’; and
(B) by striking the period at the end and
inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(7) the delinquency for which the holder of the
mortgage intends to foreclose commenced after the
date of the enactment of the Housing and Commu-
nity Development Act of 1994.’’.
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(c) AUTHORIZATION OF APPROPRIATIONS.—Section
109(a) of the Emergency Homeowners’ Relief Act (12
U.S.C. 2708(a)) is amended by striking ‘‘, except that’’
and all that follows through ‘‘$500,000,000’’ and inserting
‘‘for fiscal years 1995 and 1996’’.
(d) EXPIRATION
DATE.—Section 109(b) of the
Emergency Homeowners’ Relief Act (12 U.S.C. 2708(b))
is amended by striking ‘‘September 30, 1977’’ and insert-
ing ‘‘September 30, 1996’’.
(e) NOTIFICATION.—Section 110 of the Emergency
Homeowners’ Relief Act (12 U.S.C. 2709) is amended—
(1) in paragraph (1) of the 1st sentence—
(A) by striking ‘‘October 1, 1977’’ and in-
serting ‘‘September 30, 1996’’; and
(B) by inserting ‘‘single family’’ before
‘‘residential’’;
(2) in paragraph (2) of the 1st sentence, by
striking ‘‘until one year from the date of the enact-
ment of this title’’ and inserting ‘‘during fiscal years
1995 and 1996’’; and
(3) in the 2d sentence, by striking ‘‘Federal
Home Loan Bank Board, the Federal Savings and
Loan Insurance Corporation’’ and inserting ‘‘Office
of Thrift Supervision’’.
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(f) REPORTS.—Section 111 of the Emergency Home-
owners’ Relief Act (12 U.S.C. 2710) is amended—
(1) by striking ‘‘Within’’ and all that follows
through ‘‘Congress on’’ and inserting the following:
‘‘For fiscal year 1995 and each fiscal year thereafter
that begins before the date in section 109(b), the
Secretary shall submit a report under this section to
the Congress. The report for a fiscal year shall be
submitted not later than 60 days after the end of
the fiscal year and shall describe’’;
(2) by striking ‘‘purposes’’ and inserting ‘‘pur-
pose’’;
(3) by inserting ‘‘and’’ before ‘‘(4)’’; and
(4) by striking ‘‘; and (5)’’ and all that follows
and inserting a period.
Subtitle 
D—Nonjudicial 
Fore-
closure 
of 
Defaulted 
Single
Family Mortgages
SEC. 481. SHORT TITLE.
This subtitle may be cited as the ‘‘Single Family
Mortgage Foreclosure Act of 1994’’.
SEC. 482. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) disparate State laws under which mortgages
are foreclosed on behalf of the Secretary of Housing
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and Urban Development covering one- to four-family
residential properties burden certain programs ad-
ministered by the Secretary, increase the costs of
collecting these obligations, and cause detriment to
the community generally;
(2) long periods to complete the foreclosure of
these mortgages under certain State laws lead to de-
terioration in the condition of the properties in-
volved; necessitate substantial Federal holding ex-
penditures; increase the risk of vandalism, fire loss,
depreciation, damage, and waste with respect to the
properties; and adversely affect the neighborhoods in
which the properties are located;
(3) these conditions seriously impair the Sec-
retary’s ability to protect the Federal financial inter-
est in the affected properties and frustrate attain-
ment of the objectives of the underlying Federal pro-
gram authority;
(4) the availability of a uniform and more expe-
ditious procedure, with no right of redemption in the
mortgagor or others, for the foreclosure of these
mortgages by the Secretary will tend to ameliorate
these conditions; and
(5) providing the Secretary with a nonjudicial
foreclosure procedure will reduce unnecessary litiga-
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tion by removing many foreclosures from the courts
where they contribute to overcrowded calendars.
(b) PURPOSE.—The purpose of this subtitle is to cre-
ate a uniform Federal foreclosure remedy for single family
mortgages that (1) are held by the Secretary of Housing
and Urban Development pursuant to title I or title II of
the National Housing Act or (2) secure loans obligated
by the Secretary under section 312 of the Housing Act
of 1964.
SEC. 483. DEFINITIONS.
As used in this subtitle—
(1) the term ‘‘bona fide purchaser’’ means a
purchaser for value in good faith and without notice
of any adverse claim, who will, therefore, acquire the
security property free of any adverse claim;
(2) the term ‘‘mortgage’’ means a deed of trust,
mortgage, deed to secure debt, security agreement,
or any other form of instrument under which any in-
terest in property, real, personal or mixed, or any in-
terest in property including leaseholds, life estates,
reversionary interests, and any other estates under
applicable State law, is conveyed in trust, mort-
gaged, encumbered, pledged, or otherwise rendered
subject to a lien for the purpose of securing the pay-
ment of money or the performance of an obligation;
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(3) the term ‘‘single family mortgage’’ means a
mortgage that covers property on which there is lo-
cated a one- to four-family residence, which mort-
gage—
(A) is held by the Secretary pursuant to
title I or title II of the National Housing Act,
or
(B) secures a loan obligated by the Sec-
retary under section 312 of the Housing Act of
1964, as it existed before its repeal by section
289 of the Cranston-Gonzalez National Afford-
able Housing Act (except that a mortgage se-
curing such a loan that covers property contain-
ing non-residential space and a one- to four-
family dwelling shall not be subject to this Act);
(4) the term ‘‘mortgage agreement’’ means the
note or debt instrument and the mortgage instru-
ment, deed of trust instrument, trust deed, or in-
strument or instruments creating the mortgage, in-
cluding any instrument incorporated by reference
therein and any instrument or agreement amending
or modifying any of the foregoing;
(5) the term ‘‘mortgagor’’ means the obligor,
grantor, or trustor named in the mortgage agree-
ment and, unless the context otherwise indicates, in-
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cludes the current owner of record of the security
property whether or not personally liable on the
mortgage debt;
(6) the term ‘‘owner’’ means any person who
has an ownership interest in property and includes
heirs, devisees, executors, administrators, and other
personal representatives, and trustees of testa-
mentary trusts if the owner of record is deceased;
(7) the term ‘‘person’’ includes any individual,
group of individuals, association, partnership, cor-
poration, or organization;
(8) the terms ‘‘record’’ and ‘‘recorded’’ include
‘‘register’’ and ‘‘registered’’ in the instance of reg-
istered land;
(9) the term ‘‘security property’’ means the
property (real, personal or mixed) or an interest in
property (including leaseholds, life estates, reversion-
ary interests, and any other estates under applicable
State law), together with fixtures and other interests
subject to the lien of the mortgage under applicable
State law;
(10) the term ‘‘State’’ means the several States,
the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Northern Mariana Is-
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lands, the Trust Territory of the Pacific Islands, and
Indian tribes as defined by the Secretary;
(11) the term ‘‘county’’ means county as de-
fined in section 2 of title I, United States Code; and
(12) the term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
SEC. 484. APPLICABILITY.
Single family mortgages encumbering real estate lo-
cated in any State may be foreclosed by the Secretary in
accordance with this subtitle, or pursuant to other fore-
closure procedures available, at the option of the Sec-
retary.
SEC. 485. DESIGNATION OF FORECLOSURE COMMISSIONER.
A foreclosure commissioner or commissioners des-
ignated pursuant to this subtitle shall have a nonjudicial
power of sale as provided in this subtitle. Where the Sec-
retary wishes to foreclose upon a single family mortgage,
the Secretary may designate a foreclosure commissioner
and, with or without cause, may designate a substitute
foreclosure commissioner to replace a previously des-
ignated foreclosure commissioner, by executing a duly ac-
knowledged, written designation stating the name and
business or residential address of the commissioner or sub-
stitute commissioner. The designation shall be effective
upon execution. The foreclosure commissioner, if a natural
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person, shall be a resident of the State in which the secu-
rity property is located and, if not a natural person, the
foreclosure commissioner must be duly authorized to
transact business under the laws of the State in which
the security property is located. The foreclosure commis-
sioner shall be a person who is responsible, financially
sound, and competent to conduct the foreclosure. More
than one foreclosure commissioner may be designated. If
a natural person is designated as foreclosure commissioner
or substitute foreclosure commissioner, such person shall
be designated by name, except that where such person is
designated in his or her capacity as an official or employee
of a government or corporate entity, such person may be
designated by his or her unique title or position instead
of by name.
SEC. 486. PREREQUISITES TO FORECLOSURE.
Foreclosure by the Secretary under this subtitle of
a single family mortgage may be commenced, as provided
in section 488, upon the breach of a covenant or condition
in the mortgage agreement for which foreclosure is au-
thorized under the mortgage, except that no such fore-
closure may be commenced unless any previously pending
proceeding, judicial or nonjudicial, separately instituted by
the Secretary to foreclose the mortgage other than under
this subtitle has been withdrawn, dismissed, or otherwise
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terminated. No such separately instituted foreclosure pro-
ceeding on the mortgage shall be instituted by the Sec-
retary during the pendency of foreclosure pursuant to this
subtitle. Nothing in this subtitle shall preclude the Sec-
retary from enforcing any right, other than foreclosure,
under applicable Federal or State law, including any right
to obtain a monetary judgment. Nothing in this subtitle
shall preclude the Secretary from foreclosing under this
subtitle where the Secretary has obtained or is seeking any
other remedy available pursuant to Federal or State law
or under the mortgage agreement, including, but not lim-
ited to, the appointment of a receiver, mortgagee-in-pos-
session status, or relief under an assignment of rents.
SEC. 487. NOTICE OF FORECLOSURE SALE.
The notice of foreclosure sale to be served in accord-
ance with this subtitle shall be subscribed with the name
and address of the foreclosure commissioner and the date
on which subscribed, and shall set forth the following in-
formation:
(1) The names of the Secretary, the original
mortgagee (if other than the Secretary), and the
original mortgagor.
(2) The street address or a description of the
location of the security property, and a description
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of the security property, sufficient to identify the
property to be sold.
(3) The date of the mortgage, the office in
which the mortgage is recorded, and the liber and
folio or other description of the location of recorda-
tion of the mortgage.
(4) The failure to make payment, including the
due date of the earliest installment payment remain-
ing wholly unpaid as of the date the notice is sub-
scribed, or the description of other default or de-
faults upon which foreclosure is based, and the ac-
celeration of the secured indebtedness.
(5) The date, time, and place of the foreclosure
sale.
(6) A statement that the foreclosure is being
conducted pursuant to this subtitle.
(7) The types of costs, if any, to be paid by the
purchaser upon transfer of title.
(8) The amount and method of deposit to be re-
quired at the foreclosure sale (except that no deposit
shall be required of the Secretary), the time and
method of payment of the balance of the foreclosure
purchase price, and other appropriate terms of sale.
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SEC. 488. COMMENCEMENT OF FORECLOSURE.
(a) REQUEST.—If the Secretary as holder of a single
family mortgage determines that the prerequisites to fore-
closure set forth in section 486 are satisfied, the Secretary
may request the foreclosure commissioner to commence
foreclosure of a single family mortgage. Upon such re-
quest, the foreclosure commissioner shall commence fore-
closure of the mortgage, by commencing service of a notice
of default and foreclosure sale in accordance with section
489.
(b) SUBSTITUTE COMMISSIONER.—After commence-
ment of a foreclosure under this subtitle, the Secretary
may designate a substitute foreclosure commissioner at
any time before the time of foreclosure sale, and the fore-
closure shall continue without prejudice, unless the sub-
stitute commissioner, in his or her sole discretion, finds
that continuation of the foreclosure sale will unfairly affect
the interests of the mortgagor. If the substitute commis-
sioner makes such a finding, the substitute commissioner
shall cancel the foreclosure sale, or adjourn such sale in
the manner provided in section 491(c). Upon designation
of a substitute foreclosure commissioner, a copy of the
written notice of such designation referred to in section
485 shall be served (1) by mail, as provided in such section
489 (except that the minimum time periods between mail-
ing and the date of foreclosure sale prescribed in such sec-
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tion shall not apply), or (2) in any other manner which,
in the substitute commissioner’s sole discretion, is condu-
cive to achieving timely notice of such substitution.
SEC. 489. SERVICE OF NOTICE OF FORECLOSURE.
The foreclosure commissioner shall serve the notice
of foreclosure sale provided for in section 487 upon the
following persons and in the following manner, and no ad-
ditional notice shall be required to be served, notwith-
standing any notice requirements of any State or local law:
(1) TIMING.—At least 45 days prior to the date
of the foreclosure sale, the notice of foreclosure sale
required by section 488 of this subtitle shall be filed
in the manner authorized for filing a notice of an ac-
tion concerning real property according to the law of
the State where the security property is located or,
if none, in the manner authorized by section 3201
of title 28, United States Code.
(2) NOTICE
BY
MAIL.—The notice of fore-
closure sale shall be sent by certified or registered
mail, postage prepaid and return receipt requested
to the following:
(A) The current security property owner of
record, as the record exists 60 days before the
date originally set for foreclosure sale, whether
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or not the notice describes a sale adjourned as
provided in this subtitle.
(B) All mortgagors of record or other per-
sons who appear of record or in the mortgage
agreement to be liable for part or all of the
mortgage debt, as the record exists 60 days be-
fore the date originally set for foreclosure sale,
whether or not the notice describes a sale ad-
journed as provided in this subtitle, except any
such mortgagors or persons who have been re-
leased.
(C) All dwelling units in the security prop-
erty, whether or not the notice describes a sale
adjourned as provided in this subtitle.
(D) All persons holding liens of record
upon the security property, as the record exists
60 days before the date originally set for fore-
closure sale, whether or not the notice describes
a sale adjourned as provided in this subtitle.
Notice under subparagraphs (A) and (B) of this
paragraph shall be mailed at least 45 days before
the date of foreclosure sale, and shall be mailed to
the owner or mortgagor at the last known address
of the owner or mortgagor, or, if none, to the ad-
dress of the security property, or, at the discretion
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of the foreclosure commissioner, to any other ad-
dress believed to be that of such owner or mortga-
gor. Notice under subparagraph (C) of this para-
graph shall be mailed at least 45 days before the
date of foreclosure sale. If the names of the occu-
pants of the security property are not known to the
Secretary, or the security property has more than
one dwelling, the notice shall be posted at the secu-
rity property at least 45 days prior to the fore-
closure sale. Notice under subparagraph (D) of this
paragraph shall be mailed at least 45 days before
the date of foreclosure sale, and shall be mailed to
each such lienholder’s address as stated of record or,
at the discretion of the foreclosure commissioner, to
any other address believed to be that of such
lienholder. Notice by mail pursuant to this sub-
section or section 488(b) shall be deemed duly given
upon mailing, whether or not received by the ad-
dressee and whether or not a return receipt is re-
ceived or the letter is returned.
(3) PUBLICATION.—A copy of the notice of de-
fault and foreclosure sale shall be published, as pro-
vided herein, once a week during three successive
calendar weeks before the sale date. Such publica-
tion shall be in a newspaper or newspapers having
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general circulation in the county or counties in
which the security property being sold is located. To
the extent practicable, the newspaper or newspapers
chosen shall be a newspaper or newspapers, if any
is available, having circulation conducive to achiev-
ing notice of foreclosure by publication. A legal
newspaper that is accepted as a newspaper of legal
record in the county or counties in which the secu-
rity property being sold is located shall be considered
a newspaper having general circulation for the pur-
poses of this paragraph. Should there be no news-
paper published at least weekly which has a general
circulation in one of the counties in which the secu-
rity property being sold is located, copies of the no-
tice of default and foreclosure sale shall be posted at
the courthouse of any county or counties in which
the security property is located and at the place
where the sale is to be held at least 21 days before
the date of sale.
SEC. 490. PRESALE REINSTATEMENT.
(a) IN GENERAL.—Except as provided in sections
488(b) and 491(c), the foreclosure commissioner shall
withdraw the security property from foreclosure and can-
cel the foreclosure sale only if—
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except that the Secretary shall have discretion to
refuse to cancel a foreclosure pursuant to this para-
graph if the current mortgagor or owner of record
has on one or more previous occasions caused a fore-
closure of the mortgage, commenced pursuant to
this subtitle or otherwise, to be canceled by curing
a default.
(b) OPPORTUNITY
TO SECRETARY.—Before with-
drawing the security property from foreclosure in the cir-
cumstances described in subsection (a)(2) or (a)(3), the
foreclosure commissioner shall afford the Secretary a rea-
sonable opportunity to demonstrate why the security prop-
erty should not be so withdrawn.
(c) EFFECT ON MORTGAGE.—In any case in which
a foreclosure commenced under this subtitle is canceled,
the mortgage shall continue in effect as though accelera-
tion had not occurred.
(d) EFFECT
ON SUBSEQUENT FORECLOSURE.—If
the foreclosure commissioner cancels a foreclosure sale
under this subtitle a new foreclosure may be subsequently
commenced as provided in this subtitle.
(e) NOTICE
OF CANCELLATION.—The foreclosure
commissioner shall file a notice of cancellation in the same
place and manner provided for filing the notice of fore-
closure sale in section 489.
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SEC. 491. CONDUCT OF SALE AND ADJOURNMENT.
(a) TIME AND LOCATION.—Foreclosure sale pursu-
ant to this subtitle shall be at public auction, and shall
be scheduled to begin between the hours of 9 a.m. and
4 p.m. local time. The foreclosure sale shall be held at
a location specified in the notice of default and foreclosure
sale, which shall be a location where foreclosure real estate
auctions are customarily held in the county or one of the
counties in which the property to be sold is located, or
at a courthouse therein, or at or on the property to be
sold. Sale of security property situated in two or more
counties may be held in any one of the counties in which
any part of the security property is situated. The fore-
closure commissioner may designate the order in which
multiple tracts of security are sold.
(b) SALE PROCEDURES.—The foreclosure commis-
sioner shall conduct the foreclosure sale in accordance
with the provisions of this subtitle and in a manner fair
to both the mortgagor and the Secretary. Written one-
price sealed bids shall be accepted by the foreclosure com-
missioner from the Secretary and other persons for entry
by announcement by the commissioner at the sale. The
Secretary and any other person may bid at the foreclosure
sale, including the Secretary or any other person who has
submitted a written one-price bid. The foreclosure com-
missioner or any relative, related business entity, or em-
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ployee of such commissioner or entity shall not be per-
mitted to bid in any manner on the security property sub-
ject to foreclosure sale, except that the foreclosure com-
missioner or an auctioneer may be directed by the Sec-
retary to enter a bid on the Secretary’s behalf. The fore-
closure commissioner may serve as auctioneer, or, in ac-
cordance with regulations of the Secretary, may employ
an auctioneer to be paid from the commission provided
for in section 492(5).
(c) ADJOURNMENT OR CANCELLATION.—The fore-
closure commissioner shall have discretion, prior to or at
the time of sale to adjourn or cancel the foreclosure sale
if the commissioner determines, in the commissioner’s dis-
cretion, that circumstances are not conducive to a sale
which is fair to the mortgagor and the Secretary or that
additional time is necessary to determine whether the se-
curity property should be withdrawn from foreclosure as
provided in section 490. The foreclosure commissioner
may adjourn a sale to a later hour the same day by an-
nouncing or posting the new time and place of the fore-
closure sale, or may adjourn the foreclosure sale for not
less than 9 nor more than 31 days, in which case the com-
missioner shall serve a notice of default and foreclosure
sale revised to recite that the foreclosure sale has been
adjourned to a specified date and to include any correc-
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tions the foreclosure commissioner deems appropriate.
Such notice shall be served by publication and mailing in
accordance with section 489, except that publication may
be made on any of 3 separate days before the revised date
of foreclosure sale, and mailing may be made at any time
at least 7 days before the date to which the foreclosure
sale has been adjourned.
(d) DEPOSIT.—The foreclosure commissioner may re-
quire a bidder to make a cash deposit in an amount or
percentage set by him and stated in the notice of fore-
closure sale before the bid is accepted. A successful bidder
at the foreclosure sale who fails to comply with the terms
of the sale may be required to forfeit the cash deposit or,
at the election of the foreclosure commissioner after con-
sultation with the Secretary, shall be liable to the agency
for any costs incurred by the agency as a result of such
failure.
(e) PRESUMPTION.—Any foreclosure sale held in ac-
cordance with this subtitle shall be conclusively presumed
to have been conducted in a legal, fair, and reasonable
manner. The sale price shall be conclusively presumed to
be reasonable and equal to the fair market value of the
property.
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SEC. 492. FORECLOSURE COSTS.
The following foreclosure costs shall be paid from the
sale proceeds before satisfaction of any other claim to such
sale proceeds:
(1) Necessary advertising costs and postage in-
curred in giving notice pursuant to sections 489 and
491.
(2) Mileage for posting notices and for the fore-
closure commissioner’s or auctioneer’s attendance at
the sale as provided in section 1921 of title 28,
United States Code, for mileage by the most reason-
able road distance.
(3) Reasonable and necessary costs actually in-
curred in connection with any necessary search of
title and lien records.
(4) Necessary out-of-pocket costs incurred by
the foreclosure commissioner to record documents.
(5) A commission for the foreclosure commis-
sioner other than an employee of the United States
for the conduct of the foreclosure to the extent au-
thorized by the Secretary.
SEC. 493. DISPOSITION OF SALE PROCEEDS.
Money realized from a foreclosure sale shall be made
available for obligation and expenditure—
(1) first, to cover the costs of foreclosure pro-
vided for in section 492;
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(2) then, to pay valid tax liens or assessments
if required by the notice of foreclosure sale;
(3) then, to pay any liens recorded before the
recording of the mortgage which are required to be
paid in conformity with the terms of sale in the no-
tice of foreclosure sale;
(4) then, to service charges and advances for
taxes, assessments, and property insurance pre-
miums;
(5) then, to the interest;
(6) then, to the principal balance secured by the
mortgage (including expenditures for the necessary
protection, preservation, and repair of the security
property as authorized under the mortgage agree-
ment and interest thereon if provided for in the
mortgage agreement); and
(7) then, to late charges.
Any surplus after payment of the foregoing shall be paid
to holders of liens recorded after the mortgage in the order
of priority under Federal law or the law of the State where
the security property is located and then to the appro-
priate mortgagor. If the person to whom such surplus is
to be paid cannot be located, or if the surplus available
is insufficient to pay all claimants and the claimants can-
not agree on the allocation of the surplus, or if any person
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claiming an interest in the mortgage proceeds does not
agree that some or all of the sale proceeds should be paid
to a claimant as provided in this section, that part of the
sale proceeds in question may be deposited by the fore-
closure commissioner with an appropriate official or court
authorized under law to receive disputed funds in such cir-
cumstances. If such a procedure for the deposit of dis-
puted funds is not available, and the foreclosure commis-
sioner files a bill of interpleader or is sued as a stakeholder
to determine entitlement to such funds, the foreclosure
commissioner’s necessary costs in taking or defending
such action shall be deductible from the disputed funds.
SEC. 494. TRANSFER OF TITLE AND POSSESSION.
(a) DELIVERY OF DEED.—The foreclosure commis-
sioner shall deliver a deed or deeds to the purchaser or
purchasers without warranty or covenants to the pur-
chaser or purchasers and obtain the balance of the pur-
chase price in accordance with the terms of sale provided
in the notice of default and foreclosure sale. Notwithstand-
ing State law to the contrary, the commissioner’s deed
shall be a conveyance of property, and no judicial proceed-
ing shall be required ancillary or supplementary to the
procedures provided in this subtitle to assure the validity
of the conveyance or confirmation of such conveyance.
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(b) POSSESSION.—A purchaser at a foreclosure sale
held pursuant to this subtitle shall be entitled to posses-
sion upon passage of title to the mortgaged property, sub-
ject to an interest or interests not barred under section
496. Any person remaining in possession after the passage
of title shall be deemed a tenant at sufferance subject to
eviction under local law.
(c) DEATH OF PURCHASER.—If a purchaser dies be-
fore execution and delivery of the deed conveying the prop-
erty to the purchaser, the foreclosure commissioner shall
execute and deliver the deed to the representative of the
purchaser’s estate upon payment of the purchase price in
accordance with the terms of sale. Such delivery to the
representative of the purchaser’s estate shall have the
same effect as if accomplished during the lifetime of the
purchaser.
(d) BONA FIDE PURCHASER.—The purchaser of
property under this subtitle shall be presumed to be a
bona fide purchaser without notice of defects, if any, in
the title conveyed to said purchaser if the purchaser would
have been considered a bona fide purchaser without notice
had the sale been made voluntarily and in person by the
debtor.
(e) NULLIFICATION OF RIGHT OF REDEMPTION.—
There shall be no right of redemption, or right of posses-
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sion based upon right of redemption, in the mortgagor or
others subsequent to a foreclosure pursuant to this sub-
title. Section 204(l) of the National Housing Act and sec-
tion 701 of the Department of Housing and Urban Devel-
opment Reform Act of 1989 shall not apply to mortgages
foreclosed under this subtitle.
(f) TAX.—When conveyance is made to the Secretary,
no tax of any State, county, municipality, or local taxing
authority shall be imposed or collected with respect to the
foreclosure commissioner’s deed, whether as a tax upon
the instrument or upon the privilege of conveying or trans-
ferring title to the property. Failure to collect or pay a
tax of the type and under the circumstances stated in the
preceding sentence shall not be grounds for refusing to
record such a deed, for failing to recognize such recorda-
tion as imparting notice, or for denying the enforcement
of such a deed and its provisions in any State or Federal
court.
SEC. 495. RECORD OF FORECLOSURE AND SALE.
(a) RECORD.—To establish a sufficient record of
foreclosure and sale, the foreclosure commissioner shall in-
clude in the recitals of the deed to the purchaser or pre-
pare an affidavit or addendum to the deed stating—
(1) the date, time and place of sale;
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(2) that the mortgage was held by the Sec-
retary, the date of the mortgage, the office in which
the mortgage was recorded, and the liber and folio
or other description of the recordation of the mort-
gage;
(3) the particulars of the foreclosure commis-
sioner’s service of notice of default and foreclosure
sale in accordance with sections 489 and 491;
(4) the date and place of filing the notice of
foreclosure sale;
(5) that the foreclosure was conducted in ac-
cordance with the provisions of this subtitle and with
the terms of the notice of default and foreclosure
sale; and
(6) the sale amount.
(b) EFFECT OF STATEMENTS.—The statements set
forth in subsection (a) shall be prima facie evidence of the
truth of such recitals and statement of facts in any Fed-
eral or State court; and shall be a conclusive presumption
in favor of bona fide purchasers and encumbrancers for
value without notice. Encumbrancers for value include
liens placed by lenders who provide the purchaser with
purchase money in exchange for a security interest in the
newly-conveyed property.
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(c) RECORDATION.—The deed executed by the fore-
closure commissioner, the foreclosure commissioner’s affi-
davit and any other instruments submitted for recordation
in relation to the foreclosure of the security property
under this subtitle shall be accepted for recordation by the
registrar of deeds or other appropriate official of the coun-
ty or counties in which the security property is located
upon tendering of payment of the usual recording fees for
such instruments without regard to the compliance of
those instruments with local filing requirements.
SEC. 496. EFFECT OF SALE.
A sale, made and conducted as prescribed in this sub-
title to a bona fide purchaser, shall be an entire bar of
all claims upon, or with respect to, the property sold, of
each of the following persons:
(1) Any person to whom the notice of fore-
closure sale was mailed as provided in this subtitle,
and the heir, devisee, executor, administrator, suc-
cessor or assignee claiming under any such person.
(2) Any person claiming any interest in the
property subordinate to that of the mortgage, if such
person had actual knowledge of the sale.
(3) Each person, claiming any interest in the
property, whose assignment, mortgage, or other con-
veyance was not duly recorded or filed in the proper
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place for recording or filing, or whose judgment or
decree was not duly docketed or filed in the proper
place for docketing or filing, prior to the date on
which the notice of sale was first served by publica-
tion, as required by section 489(2); and the execu-
tor, administrator, or assignee of such a person.
(4) Every other person claiming under a statu-
tory lien or encumbrance created subsequent to the
recording or filing of the mortgage being foreclosed,
attaching to the title or interest of any person des-
ignated in any of the foregoing subsections of this
section.
SEC. 497. COMPUTATION OF TIME.
Periods of time provided for in this subtitle shall be
calculated in consecutive calendar days including the day
or days on which the actions or events occur or are to
occur for which the period of time is provided and includ-
ing the day on which an event occurs or is to occur from
which the period is to be calculated.
SEC. 498. SEPARABILITY.
If any clause, sentence, paragraph, or part of this
subtitle shall, for any reason, be adjudged by a court of
competent jurisdiction to be invalid or invalid as applied
to a class of cases, such judgment shall not affect, impair,
or invalidate the remainder thereof and of this subtitle,
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but shall be confined in its operation to the clause, sen-
tence, paragraph, or part thereof directly involved in the
controversy in which such judgment shall have been
rendered.
SEC. 499. DEFICIENCY JUDGMENT.
(a) IN GENERAL.—If after deducting the disburse-
ments provided for in section 493 of this subtitle, the price
at which the security property is sold at a foreclosure sale
is less than the unpaid balance of the debt secured by the
security property, resulting in a deficiency, the Secretary
may refer the matter to the Attorney General who may
commence an action or actions against any or all debtors
to recover the deficiency, unless specifically prohibited by
the mortgage. The United States is also entitled to recover
any amount authorized by section 3011 of title 28, United
States Code, and costs of the action.
(b) LIMITATION.—Any action commenced to recover
the deficiency must be brought within 6 years of the last
sale of the security property.
TITLE V—RURAL HOUSING
SEC. 501. PROGRAM AUTHORIZATIONS.
(a) INSURANCE AND GUARANTEE AUTHORITY.—Sec-
tion 513(a) of the Housing Act of 1949 (42 U.S.C.
1483(a)) is amended to read as follows:
‘‘(a) INSURANCE AND GUARANTEE AUTHORITY.—
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‘‘(1) IN GENERAL.—The Secretary may, to the
extent approved in appropriation Acts, insure and
guarantee loans under this title during fiscal years
1995 and 1996, in aggregate amounts not to exceed
$3,231,103,950 and $3,360,037,069, respectively, as
follows:
‘‘(A) For insured or guaranteed loans
under section 502 on behalf of low-income bor-
rowers 
receiving 
assistance 
under 
section
521(a)(1), $1,802,500,000 for fiscal year 1995
and $1,856,575,000 for fiscal year 1996.
‘‘(B) For guaranteed loans under section
502(h) on behalf of low- and moderate-income
borrowers, $772,500,000 for fiscal year 1995
and $795,675,000 for fiscal year 1996.
‘‘(C) 
For 
loans 
under 
section 
504,
$36,050,000 
for 
fiscal 
year 
1995 
and
$37,131,500 for fiscal year 1996.
‘‘(D) For insured loans under section 514,
$18,053,950 
for 
fiscal 
year 
1995 
and
$18,595,569 for fiscal year 1996.
‘‘(E) For insured loans under section 515,
$600,000,000 
for 
fiscal 
year 
1995 
and
$650,000,000 for fiscal year 1996.
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‘‘(F) 
For 
loans 
under 
section
523(b)(1)(B), $1,000,000 for fiscal year 1995
and $1,030,000 for fiscal year 1996.
‘‘(G) For site loans under section 524,
$1,000,000 for fiscal year 1995 and $1,030,000
for fiscal year 1996.
‘‘(2) LIMITATION
ON
USE.—Notwithstanding
any other provision of law, insured or guaranteed
loan authority in this title for any fiscal year shall
not be transferred or used for any purpose not speci-
fied in this title.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
513(b) of the Housing Act of 1949 (42 U.S.C. 1483(b))
is amended to read as follows:
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated for fiscal years 1995
and 1996, and to remain available until expended, the fol-
lowing amounts:
‘‘(1) For grants under section 502(c)(5)(C)(i),
$10,000,000 for fiscal year 1995, and $10,000,000
for fiscal year 1996.
‘‘(2) 
For 
grants 
under 
section 
504,
$31,000,000 for fiscal year 1995 and $31,930,000
for fiscal year 1996.
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‘‘(3) 
For 
purposes 
of 
section 
509(c),
$1,000,000 for fiscal year 1995 and $1,030,000 for
fiscal year 1996.
‘‘(4) For project preparation grants under sec-
tion 509(f)(6), $5,688,278 for fiscal year 1995 and
$5,858,926 for fiscal year 1996.
‘‘(5) In fiscal years 1995 and 1996, such sums
as may be necessary to meet payments on notes or
other obligations issued by the Secretary under sec-
tion 511 equal to—
‘‘(A) the aggregate of the contributions
made by the Secretary in the form of credits on
principal due on loans made pursuant to section
503; and
‘‘(B) the interest due on a similar sum
represented by notes or other obligations issued
by the Secretary.
‘‘(6) For grants for service coordinators under
section 515(y), $1,073,260 for fiscal year 1995 and
$1,105,458 for fiscal year 1996.
‘‘(7) For financial assistance under section
516—
‘‘(A) for low-rent housing and related fa-
cilities for domestic farm labor under sub-
sections (a) through (j) of such section,
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$15,000,000 
for 
fiscal 
year 
1995 
and
$18,000,000 for fiscal year 1996; and
‘‘(B) for housing for rural homeless and
migrant farmworkers under subsection (k) of
such section, $10,269,230 for fiscal year 1995
and $11,407,307 for fiscal year 1996.
‘‘(8) 
For 
grants 
under 
section 
523(f),
$14,918,314 for fiscal year 1995 and $15,365,863
for fiscal year 1996.
‘‘(9) 
For 
grants 
under 
section 
533,
$33,056,408 for fiscal year 1993 and $34,048,100
for fiscal year 1994.
‘‘(10) 
For 
grants 
under 
section 
538,
$10,000,000 for fiscal year 1995, which shall remain
available until the end of fiscal year 1997.
‘‘(11) For assistance under section 539,
$10,000,000 for fiscal year 1995 and $12,000,000
for fiscal year 1996.’’.
(c) RENTAL ASSISTANCE PAYMENT CONTRACTS.—
Section 513(c) of the Housing Act of 1949 (42 U.S.C.
1483(c)(1)) is amended by striking ‘‘(c)’’ and all that fol-
lows through the end of paragraph (1) and inserting the
following:
‘‘(c) RENTAL
AND OPERATING ASSISTANCE.—(1)
The Secretary, to the extent approved in appropriations
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Acts for fiscal years 1995 and 1996, may enter into rental
assistance payment contracts under section 521(a)(2)(A)
and contracts for operating assistance under section
521(a)(5), aggregating $454,079,620 for fiscal year 1995
and $467,702,009 for fiscal year 1996.’’.
(d) SUPPLEMENTAL RENTAL ASSISTANCE PAYMENT
CONTRACTS.—Section 513(d) of the Housing Act of 1949
(42 U.S.C. 1483(d)) is amended to read as follows:
‘‘(d) SUPPLEMENTAL RENTAL ASSISTANCE CON-
TRACTS.—The Secretary, to the extent approved in appro-
priations Acts for fiscal years 1995 and 1996, may enter
into 5-year supplemental rental assistance contracts under
section 502(c)(5)(D) aggregating $13,070,160 for fiscal
year 1995 and $13,462,265 for fiscal year 1996.’’.
(e) RURAL HOUSING VOUCHER AUTHORITY.—Sec-
tion 513(e) of the Housing Act of 1949 (42 U.S.C.
1483(e)) is amended to read as follows:
‘‘(e) RURAL HOUSING VOUCHERS.—There are au-
thorized to be appropriated for rural housing vouchers
under section 542, $30,000,000 for fiscal year 1995 and
$40,000,000 for fiscal year 1996.’’.
(f) RENTAL HOUSING LOAN AUTHORITY.—Section
515(b) of the Housing Act of 1949 (42 U.S.C. 1485(b))
is amended—
(1) by striking paragraph (4); and
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(2) by redesignating paragraphs (5) and (6) as
paragraphs (4) and (5), respectively.
SEC. 502. ELIGIBILITY OF NATIVE AMERICANS FOR RURAL
HOUSING PROGRAMS.
Section 501(b)(6) of the Housing Act of 1949 (42
U.S.C. 1471(b)(6)) is amended by adding at the end the
following new sentence: ‘‘In any case in which assistance
made available under this title may be provided to a State
or State agency or in which a State or State agency is
eligible to participate in a program or activity under this
title, such assistance may also be provided to Indian tribes
and tribal agencies and Indian tribes and tribal agencies
shall be eligible to participate, respectively.’’.
SEC. 503. ESCROW FUND.
Section 501(e) of the Housing Act of 1949 (42
U.S.C. 1471(e)) is amended by striking the third and
fourth sentences and inserting the following: ‘‘The Sec-
retary may establish in the Treasury of the United States
an escrow fund for the deposit of such periodic payments.
The Secretary may direct the Secretary of the Treasury
to invest and reinvest amounts in the escrow fund in pub-
lic debt securities with maturities suitable for the needs
of the escrow fund and bearing interest at rates deter-
mined by the Secretary of the Treasury, taking into con-
sideration the current average market yield on outstand-
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ing marketable obligations of the United States of com-
parable maturities. Any interest earned shall be credited
to the escrow fund. The Secretary shall disburse amounts
at the appropriate time or times for the purposes for which
the amounts were escrowed in the fund. The Secretary
shall pay a uniform rate of interest on escrowed amounts.
The interest rate to be paid on such amounts shall be de-
termined by the Secretary based on the interest earned
less an amount not to exceed 1 percent to be used to offset
expenses in carrying out the provisions of this title.’’.
SEC. 504. SECTION 502 HOMEOWNERSHIP LOANS.
(a) REMOTE RURAL AREAS.—Section 502(f) of the
Housing Act of 1949 (42 U.S.C. 1472(f)) is amended—
(1) by striking paragraph (1);
(2) by redesignating paragraph (2) as para-
graph (1); and
(3) by adding at the end the following new
paragraph:
‘‘(2) SECURITY.—In making a loan under this
section for housing located in a rural area that is a
remote rural area (which shall include tribal allotted
or Indian trust land) where the borrower resides or
is employed, the Secretary shall consider the actual
replacement cost of the property and structure for
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which the loan is made as adequate security for the
loan required under subsection (b).’’.
(b) PERMANENT
DEFERRED
MORTGAGE
PRO-
GRAM.—Section 502(g) of the Housing Act of 1949 (42
U.S.C. 1472(g)) is amended to read as follows:
‘‘(g) DEFERRED MORTGAGE PROGRAM.—With re-
spect to families or persons otherwise eligible for assist-
ance under subsection (d) but having incomes below the
amount determined to qualify for a loan under this sec-
tion, the Secretary may defer mortgage payments beyond
the amount affordable at 1 percent interest, taking into
consideration income, taxes and insurance. Deferred
amounts shall not exceed 25 percent of the amount of the
payment due at 1 percent interest and shall be subject
to recapture.’’.
(c) REAMORTIZATION.—Section 505 of the Housing
Act of 1949 (42 U.S.C. 1475) is amended—
(1) in the section heading, by inserting ‘‘,
REAMORTIZATION,’’ after ‘‘MORATORIUM’’;
(2) in subsection (a), by inserting before the
last sentence the following: ‘‘The Secretary may not
foreclose such a mortgage securing such a loan upon
which a moratorium has been granted solely because
the borrower does not have the ability to repay the
loan. Upon the expiration of a moratorium, the Sec-
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retary shall, subject to the availability of amounts
for assistance under this title, enter into an agree-
ment with the borrower providing to the borrower
such assistance as the Secretary is authorized to
provide under this title and may foreclose with re-
spect to the loan only if the borrower fails to make
3 monthly payments required under such agree-
ment.’’;
(3) by redesignating subsection (b) as sub-
section (c); and
(4) by inserting after subsection (a) the follow-
ing new subsection:
‘‘(b) REAMORTIZATION.—
‘‘(1) AUTHORITY.—With respect to a loan made
under section 502, after a moratorium under sub-
section (a) of this section for the loan or at any
other time the Secretary considers appropriate, the
Secretary may reamortize the outstanding indebted-
ness, including principal and interest, under the loan
for a period not to exceed 38 years from the date
of the making of the loan, subject to the provisions
of paragraph (2). The authority of the Secretary
under this subsection to modify loans shall be effec-
tive for any fiscal year only to such extent or in such
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amounts as are or have been provided for such costs
in appropriation Acts for such fiscal year.
‘‘(2) GRADUATED REPAYMENT AGREEMENT.—
In reamortizing a loan pursuant to paragraph (1),
the Secretary may lower the interest rate to the ex-
isting lending rate for loans under section 502 or es-
tablish a schedule of payments under the loan that
provides, after the application of interest credit, for
payments in an amount less than the amount of the
payments originally provided for under the loan
agreement for a period not exceeding that required
to amortize the loan over its term, except that such
period may not exceed 3 years.’’.
(d) ELIGIBILITY
OF AREA.—Section 502 of the
Housing Act of 1949 (42 U.S.C. 1472) is amended by
adding at the end the following new subsection:
‘‘(i) Notwithstanding section 520, the Secretary may
make loans under this section for properties in the Pine
View West Subdivision, located in Gibsonville, North Caro-
lina, in the same manner as provided under this section
for properties in rural areas.’’.
SEC. 505. LOAN GUARANTEES.
Section 502(h)(11) of the Housing Act of 1949 (42
U.S.C. 1472(h)(11)) is amended by adding at the end the
following new sentence: ‘‘The Secretary may not pool or
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reallocate any authority to guarantee loans under this sec-
tion that was allocated for use in any State before August
1 of the fiscal year in which such authority was allo-
cated.’’.
SEC. 506. PREPAYMENT OF RURAL RENTAL HOUSING
LOANS.
(a) TECHNICAL ASSISTANCE GRANTS AND LOANS
FOR NONPROFIT AND PUBLIC AGENCY PURCHASERS OF
PREPAYMENT PROPERTIES.—Section 502(c)(5)(C)(i) of
the Housing Act of 1949 (42 U.S.C. 1472(c)(5)(C)(i)) is
amended to read as follows:
‘‘(i) to the extent provided in appropriation
Acts, make a grant or predevelopment loan in an
amount not exceeding $50,000 to the nonprofit or-
ganization or public agency whose offer to purchase
is accepted under this paragraph to cover reasonable
costs, as determined by the Secretary and not in-
cluding the purchase price, incurred by the organiza-
tion or agency in purchasing and assuming respon-
sibilities for the housing and related facilities in-
volved, which may include costs for pursuing acquisi-
tion, appraisals, financing fees, accounting, adminis-
tration, consultants, legal assistance, architectural
assistance, engineering assistance, application fees,
overhead, and other expenses;’’.
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(b) EQUITY TAKEOUT LOANS.—
(1) AUTHORITY
AND
LIMITATION.—Section
502(c)(4)(B)(iv) of the Housing Act of 1949 (42
U.S.C. 1472(c)(4)(B)(iv)) is amended by inserting
before the period at the end the following: ‘‘or under
paragraphs (1) and (2) of section 514(j), except that
an equity loan referred to in this clause may not be
made available after the date of the enactment of
the Housing and Community Development Act of
1994 unless the Secretary determines that the other
incentives available under this subparagraph are not
adequate to provide a fair return on the investment
of the borrower, to prevent prepayment of the loan
insured under section 514 or 515, or to prevent the
displacement of tenants of the housing for which the
loan was made’’.
(2) APPROVAL OF ASSISTANCE.—Subparagraph
(C) of section 502(c)(4) of the Housing Act of 1949
is amended by striking the matter preceding clause
(i) and inserting the following:
‘‘(C) APPROVAL
OF ASSISTANCE.—The Secretary
may approve assistance under subparagraph (B) for as-
sisted housing only if the restrictive period has expired for
any loan for the housing made or insured under section
514 or 515 pursuant to a contract entered into after De-
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cember 21, 1979, but before the date of the enactment
of the Department of Housing and Urban Development
Reform Act of 1989, and the Secretary determines that
the combination of assistance provided—’’.
(3) LOAN TERMS.—Section 514 of the Housing
Act of 1949 (42 U.S.C. 1484) is amended by adding
at the end the following new subsection:
‘‘(j) EQUITY TAKEOUT LOANS FOR PRESERVATION
OF LOW-INCOME HOUSING.—With respect to a loan in-
sured under subsection (a), the Secretary may—
‘‘(1) make or insure an equity loan in the form
of a supplemental loan for the purpose of equity
takeout to the owner of housing financed with a loan
insured under this section pursuant to a contract en-
tered into before December 15, 1989, for the pur-
pose of extending the affordability of the housing for
low-income families or persons and very low-income
families or persons for not less than 20 years, except
that such loan may not exceed 90 percent of the
value of the equity in the project as determined by
the Secretary;
‘‘(2) transfer and reamortize an existing loan in
connection with assistance provided under paragraph
(1); and
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‘‘(3) make or insure a loan to enable a non-
profit organization or public agency to make a pur-
chase described in section 502(c)(5).’’.
(4) TECHNICAL
CORRECTION
RELATING
TO
SECTION
515
HOUSING.—Section 515(c)(1) of the
Housing Act of 1949 (42 U.S.C. 1485(c)(1)) is
amended by striking ‘‘December 21, 1979’’ and in-
serting ‘‘December 15, 1989’’.
(c) 
PHASE-IN
OF
RENT
INCREASES.—Section
502(c)(4)(B)(vi) of the Housing Act of 1949 (42 U.S.C.
1472(c)(4)(B)(vi)) is amended by inserting before the pe-
riod at the end the following: ‘‘, except that any such in-
crease in rents for current tenants (except for increases
made necessary by increases in operating costs) shall (I)
be phased in equally over a period of not less than 3 years,
if such increase is 30 percent or more, and (II) be limited
to not more than 10 percent per year if such increase is
more than 10 percent but less than 30 percent’’.
(d) TREATMENT
OF
ACCELERATION
UPON
DE-
FAULT.—Section 502 of the Housing Act of 1949 (42
U.S.C. 1472) is amended—
(1) in subsection (b)(2), by inserting ‘‘or any
payment in the case of acceleration of the amount
due under such a loan pursuant to any default,’’
after ‘‘515’’; and