In the Senate of the United States,
September 23 (legislative day, September 7), 1993.
Resolved, That the bill from the House of Representa-
tives (H.R. 2517) entitled ‘‘An Act to establish certain pro-
grams and demonstrations to assist States and communities
in efforts to relieve homelessness, assist local community de-
velopment organizations, and provide affordable rental hous-
ing for low-income families, and for other purposes’’, do pass
with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘HUD Demonstration
Act of 1993’’.
SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRA-
TION PROGRAM.
(a) PURPOSE.—The purpose of this section is to enable
the Secretary of Housing and Urban Development (here-
after in this Act referred to as the ‘‘Secretary’’), through
cooperative efforts in partnership with other levels of gov-
ernment and the private sector, including nonprofit organi-
zations, foundations, and communities, to demonstrate
methods of undertaking comprehensive strategies for assist-
ing homeless individuals and families (including homeless
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individuals who have AIDS or who are infected with HIV),
through a variety of activities, including the coordination
of efforts and the filling of gaps in available services and
resources. In carrying out the demonstration, the Secretary
shall—
(1) provide comprehensive homeless demonstra-
tion grants under subsection (c); and
(2) provide innovative project funding under
subsection (d).
(b) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) HOMELESS INDIVIDUAL.—The term ‘‘home-
less individual’’ has the meaning given such term in
section 103 of the Stewart B. McKinney Homeless As-
sistance Act.
(2) HOMELESS
FAMILY.—The term ‘‘homeless
family’’ means a group of one or more related indi-
viduals who are homeless individuals.
(3) INCORPORATED
DEFINITIONS.—The terms
‘‘State’’, ‘‘metropolitan city’’, ‘‘urban county’’, ‘‘unit
of general local government’’, and ‘‘Indian tribe’’ have
the meanings given such terms in section 102(a) of
the Housing and Community Development Act of
1974.
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(4) JURISDICTION.—The term ‘‘jurisdiction’’
means a State, metropolitan city, urban county, unit
of general local government (including units in rural
areas), or Indian tribe.
(5) NONPROFIT ORGANIZATION.—The term ‘‘non-
profit organization’’ means an organization—
(A) no part of the net earnings of which in-
ures to the benefit of any member, founder, con-
tributor, or individual;
(B) that, in the case of a private nonprofit
organization, has a voluntary board;
(C) that has an accounting system, or has
designated a fiscal agent in accordance with re-
quirements established by the Secretary; and
(D) that practices nondiscrimination in the
provision of assistance.
(6) VERY
LOW-INCOME
FAMILIES.—The term
‘‘very low-income families’’ has the meaning given
such term in section 3 of the United States Housing
Act of 1937.
(c) COMPREHENSIVE HOMELESS INITIATIVE.—
(1) DESIGNATION.—The Secretary shall des-
ignate such jurisdictions as the Secretary may deter-
mine for comprehensive homeless initiative funding
under this subsection.
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(2) AUTHORITY.—The Secretary may provide as-
sistance under this subsection to—
(A) jurisdictions designated under para-
graph (1) (or entities or instrumentalities estab-
lished under the authority of such jurisdictions);
or
(B) nonprofit organizations operating with-
in such jurisdictions,
to establish comprehensive homeless initiatives to
carry out the purpose of this section.
(3) CRITERIA.—The Secretary shall establish cri-
teria for designating jurisdictions under paragraph
(1), which shall include—
(A) the extent of homelessness in the juris-
diction;
(B) the extent to which the existing public
and private systems for homelessness prevention,
outreach, assessment, shelter, services, transi-
tional services, transitional housing, and perma-
nent housing available within the jurisdiction
would benefit from additional resources to
achieve a comprehensive approach to meeting the
needs of individuals and families who are home-
less or who are very low-income and at risk of
homelessness;
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(C) the demonstrated willingness and ca-
pacity of the jurisdiction to work cooperatively
with the Department of Housing and Urban De-
velopment (hereafter in this Act referred to as the
‘‘Department’’), nonprofit organizations, founda-
tions, other private entities, and the community
to design and implement an initiative to achieve
the purposes of this subsection;
(D) the demonstrated willingness of non-
governmental organizations to commit financial
and other resources to a comprehensive homeless
initiative in the jurisdiction;
(E) the commitment of the jurisdiction to
make necessary changes in policy and procedure
to provide sufficient flexibility and resources as
necessary to implement and sustain the initia-
tive;
(F) national geographic diversity in the
designation of jurisdiction; and
(G) such other factors as the Secretary de-
termines to be appropriate.
(4) CONSULTATION.—Prior to designating juris-
dictions under paragraph (1), the Secretary shall con-
sult with the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and the
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Committee on Banking, Housing, and Urban Affairs
of the Senate regarding such designations.
(5) COMPREHENSIVE STRATEGY.—Recipients of
assistance under this subsection shall, in cooperation
with the Secretary, other governmental entities, non-
profit organizations, foundations, other private enti-
ties, and the community, develop a comprehensive
plan that—
(A) sets forth a realistic and feasible strat-
egy that contains specific projects and activities
to carry out the purpose of this section;
(B) demonstrates the willingness of the ap-
propriate government and private entities and
other parties to participate cooperatively in this
plan;
(C) specifies the projects and activities to be
funded under this subsection;
(D) provides an estimate of the cost of im-
plementing the initiative funded under this sub-
section;
(E) enumerates amounts to be made avail-
able to fund the comprehensive homeless initia-
tive by participating governmental entities, non-
profit organizations, foundations, and the com-
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munity, as appropriate, and requests funds from
the Secretary pursuant to this subsection; and
(F) provides such other information as the
Secretary determines to be appropriate.
(6) DESIGNATION.—The designation referred to
in paragraph (1) and assistance provided under
paragraph (2) shall be made on a noncompetitive
basis.
(d) INNOVATIVE PROJECT FUNDING.—
(1) AUTHORITY.—The Secretary is authorized to
provide assistance under this subsection to jurisdic-
tions and nonprofit organizations operating within
such jurisdictions to establish innovative programs to
carry out the purpose of this section.
(2) APPLICATIONS.—Applications for assistance
under this subsection shall be in such form, and shall
include such information, as the Secretary shall deter-
mine. Each application shall include—
(A) a description of the extent of homeless-
ness in the jurisdiction;
(B) an explanation of the extent to which
the existing systems, both public and private, for
homelessness prevention, outreach, assessment,
shelter, services, transitional services, transi-
tional housing, and permanent housing available
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within the jurisdiction would benefit from addi-
tional resources to achieve a comprehensive ap-
proach to meeting the needs of individuals and
families who are homeless, or who are very low-
income and at risk of homelessness;
(C) a description of the projects and activi-
ties for which the applicant is requesting fund-
ing under this subsection and the amounts re-
quested;
(D) the demonstrated willingness and ca-
pacity of the jurisdiction to work cooperatively
with the Department, nonprofit organizations,
foundations, other private entities, and the com-
munity, to the extent feasible, to design and im-
plement an initiative to achieve the purposes of
this subsection;
(E) a statement of commitment from the ju-
risdiction to make necessary changes in policy
and procedure to provide sufficient flexibility
and resources as necessary to implement and
sustain the program; and
(F) such other information as the Secretary
determines to be appropriate.
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(3) CRITERIA.—The Secretary shall establish se-
lection criteria for awarding assistance under this
subsection, which shall include—
(A) the extent to which the program de-
scribed in the application achieves the purpose of
this section;
(B) the extent to which the applicant dem-
onstrates the capacity to implement a program
that achieves the purpose of this section;
(C) the extent to which the program de-
scribed in the application is innovative and may
be replicated or may serve as a model for imple-
mentation in other jurisdictions;
(D) diversity by geography and community
type; and
(E) such other criteria as the Secretary de-
termines to be appropriate.
(e) REPORTS.—
(1) RECIPIENTS OF FUNDS.—Each recipient of
funds under subsections (c) and (d) shall submit to
the Secretary a report or series of reports, in a form
and at a time specified by the Secretary. Each report
shall—
(A) describe the use of funds made available
under this section; and
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(B) include a description and an analysis
of the programs and projects funded, the innova-
tive approaches taken, and the level of coopera-
tion among participating parties.
(2) INTERIM HUD REPORT.—The Secretary shall
submit to the Congress, in conjunction with the 1995
legislative recommendations of the Department, a re-
port describing the results of the demonstration pro-
gram funded under this section to date. The report
shall contain a summary and analysis of all informa-
tion contained in any reports received by the Sec-
retary pursuant to paragraph (1) and shall contain
recommendations for future action.
(3) FINAL
HUD
REPORT.—Not later than 3
months after all recipient reports have been submitted
under paragraph (1), the Secretary shall submit to
the Congress a final report. The Secretary’s final re-
port shall contain a summary and analysis of all in-
formation contained in the reports received by the
Secretary pursuant to paragraph (1) and shall con-
tain recommendations for future action.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $200,000,000 for fiscal year
1994 to carry out this section. Of the amounts appropriated
pursuant to this subsection, not less than 25 percent shall
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be used to carry out innovative project funding under sub-
section (d). All funds shall remain available until expended.
(g) REPEAL.—This section shall be repealed effective
on October 1, 1994.
SEC. 3. MOVING TO OPPORTUNITIES.
Section 152(e) of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 1437f note) is amended in
the first sentence by striking ‘‘$52,100,000’’ and inserting
‘‘$165,000,000’’.
SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOP-
MENT AND AFFORDABLE HOUSING.
(a) IN GENERAL.—The Secretary is authorized to pro-
vide assistance through the National Community Develop-
ment Initiative to develop the capacity and ability of com-
munity development corporations and community housing
development organizations to undertake community devel-
opment and affordable housing projects and programs.
(b) FORM OF ASSISTANCE.—Assistance under this sec-
tion may be used for—
(1) training, education, support, and advice to
enhance the technical and administrative capabilities
of community development corporations and commu-
nity housing development organizations;
(2) loans, grants, or predevelopment assistance to
community development corporations and community
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housing development organizations to carry out com-
munity development and affordable housing activities
that benefit low-income families; and
(3) such other activities as may be determined by
the National Community Development Initiative in
consultation with the Secretary.
(c) MATCHING REQUIREMENT.—Assistance provided
under this section shall be matched from private sources in
an amount equal to 3 times the amount made available
under this section.
(d) IMPLEMENTATION.—The Secretary shall by notice
establish such requirements as may be necessary to carry
out the provisions of this section. The notice shall take effect
upon issuance.
(e) AUTHORIZATION.—There are authorized to be ap-
propriated $25,000,000 for fiscal year 1994 to carry out
this section.
SEC. 5. AUTHORIZATION FOR COMMUNITY HOUSING PART-
NERSHIPS AND SUPPORT FOR STATE AND
LOCAL HOUSING STRATEGIES.
Section 205 of the Cranston-Gonzalez National Afford-
able Housing Act (12 U.S.C. 12724) is amended—
(1) in paragraph (1), by striking ‘‘$14,000,000
for fiscal year 1994’’ and inserting ‘‘$25,000,000 for
fiscal year 1994’’; and
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(2) in paragraph (2), by striking ‘‘$11,000,000
for fiscal year 1994’’ and inserting ‘‘$22,000,000 for
fiscal year 1994’’.
SEC. 6. SECTION 8 COMMUNITY INVESTMENT DEMONSTRA-
TION PROGRAM.
(a) DEMONSTRATION PROGRAM.—The Secretary shall
carry out a demonstration program to attract pension fund
investment in affordable housing through the use of project-
based rental assistance under section 8 of the United States
Housing Act of 1937.
(b) FUNDING REQUIREMENTS.—In carrying out this
section, the Secretary shall ensure that not less than 50 per-
cent of the funds appropriated for the demonstration pro-
gram each year are used in conjunction with the disposition
of either—
(1) multifamily properties owned by the Depart-
ment; or
(2) multifamily properties securing mortgages
held by the Department.
(c) CONTRACT TERMS.—
(1) IN GENERAL.—Project-based assistance under
this section shall be provided pursuant to a contract
entered into by the Secretary and the owner of the eli-
gible housing that—
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(A) provides assistance for a term of not
less than 60 months and not greater than 180
months; and
(B) provides for contract rents, to be deter-
mined by the Secretary, which shall not exceed
contract rents permitted under section 8 of the
United States Housing Act of 1937, taking into
consideration any costs for the construction, re-
habilitation, or acquisition of the housing.
(2) AMENDMENT TO SECTION 203.—Section 203
of the Housing and Community Development Amend-
ments of 1978 (12 U.S.C. 1701z-11) is amended by
adding at the end the following new subsection:
‘‘(l) Project-based assistance in connection with the
disposition of a multifamily housing project may be pro-
vided for a contract term of less than 15 years if such assist-
ance is provided—
‘‘(1) under a contract authorized under section 6
of the HUD Demonstration Act of 1993; and
‘‘(2) pursuant to a disposition plan under this
section for a project that is determined by the Sec-
retary to be otherwise in compliance with this sec-
tion.’’.
(d) LIMITATION.—(1) The Secretary may not provide
(or make a commitment to provide) more than 50 percent
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of the funding for housing financed by any single pension
fund, except that this limitation shall not apply if the Sec-
retary, after the end of the 6-month period beginning on
the date notice is issued under subsection (e)—
(A) determines that—
(i) there are no expressions of interest that
are likely to result in approvable applications in
the reasonably foreseeable future; or
(ii) any such expressions of interest are not
likely to use all funding under this section; and
(B) so informs the Committee on Banking, Fi-
nance and Urban Affairs of the House of Representa-
tives and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(2) If the Secretary determines that there are expres-
sions of interest referred to in paragraph (1)(A)(ii), the Sec-
retary may reserve funding sufficient in the Secretary’s de-
termination to fund such applications and may use any
remaining funding for other pension funds in accordance
with this section.
(e) IMPLEMENTATION.—The Secretary shall by notice
establish such requirements as may be necessary to carry
out the provisions of this section. The notice shall take effect
upon issuance.
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(f) APPLICABILITY OF ERISA.—Notwithstanding sec-
tion 514(d) of the Employee Retirement Income Security
Act of 1974, nothing in this section shall be construed to
authorize any action or failure to act that would constitute
a violation of such Act.
(g) REPORT.—Not later than 3 months after the last
day of each fiscal year, the Secretary shall submit to the
Committee on Banking, Finance and Urban Affairs of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report summa-
rizing the activities carried out under this section during
that fiscal year.
(h) ESTABLISHMENT OF STANDARDS.—Mortgages se-
cured by housing assisted under this demonstration shall
meet such standards regarding financing and securitization
as the Secretary may establish.
(i) GAO STUDY.—The Comptroller General of the
United States shall conduct a study evaluating the dem-
onstration authorized under this section and shall report
its findings to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the Sen-
ate not later than 3 months after the conclusion of the dem-
onstration.
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(j) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $100,000,000 for fiscal year
1994 to carry out this section.
(k) TERMINATION DATE.—The Secretary shall not
enter into any new commitment to provide assistance under
this section after September 30, 1998.
SEC. 7. NATIONAL COMMISSION ON MANUFACTURED HOUS-
ING.
(a) EXTENSION OF COMMISSION.—Section 943(g) of
the Cranston-Gonzalez National Affordable Housing Act
(Public Law 101–625; 104 Stat. 4415) is amended by strik-
ing ‘‘on October 1, 1993’’ and inserting ‘‘on October 1,
1994’’.
(b) FINAL REPORT.—Section 943(d)(2) of the Cran-
ston-Gonzalez National Affordable Housing Act (Public
Law 101–625; 104 Stat. 4414) is amended by striking ‘‘9
months after the Commission is established pursuant to sub-
section (b)’’ and inserting ‘‘August 1, 1994’’.
(c) INTERIM REPORT.—Section 943(d) of the Cran-
ston-Gonzalez National Affordable Housing Act (Public
Law 101–625; 104 Stat. 4414) is amended—
(1) by redesignating paragraph (2) (as amended
by subsection (b) of this section) as paragraph (3);
and
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(2) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) INTERIM REPORT.—Not later than March 1,
1994, the Commission shall submit an interim report
to the Secretary and the Congress. The report shall
describe the activities of the Commission under para-
graph (1) and shall contain any information specified
in such paragraph that is available to the Commis-
sion and any evaluations and recommendations speci-
fied in such paragraph that may be made by the
Commission, at such time.’’.
(d) AUTHORIZATION
OF APPROPRIATIONS.—Section
943(f) of the Cranston-Gonzalez National Affordable Hous-
ing Act (Public Law 101–625; 104 Stat. 4415) is amended
by inserting after the first sentence the following new sen-
tence: ‘‘There are authorized to be appropriated for fiscal
year 1994 such sums as may be necessary to carry out this
section.’’.
SEC. 8. RECIPROCITY IN APPROVAL OF HOUSING SUBDIVI-
SIONS AMONG FEDERAL AGENCIES.
(a) EXTENSION OF AUTHORITY.—Section 535(b) of the
Housing Act of 1949 (42 U.S.C. 1490o(b)) is amended by
striking ‘‘June 15, 1993’’ and inserting ‘‘September 30,
1994’’.