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For the cost of guaranteed loans, $29,000,000, as au-
thorized by section 108 of the Housing and Community De-
velopment Act of 1974: Provided, That such costs, including
the cost of modifying such loans, shall be as defined in sec-
tion 502 of the Congressional Budget Act of 1974, as
amended: Provided further, That these funds are available
to subsidize total loan principal, any part of which is to
be guaranteed, not to exceed $1,261,000,000, notwithstand-
ing any aggregate limitation on outstanding obligations
guaranteed in section 108(k) of the Housing and Commu-
nity Development Act of 1974: Provided further, That in
addition to the other amounts appropriated under this
heading, for administrative expenses to carry out the guar-
anteed loan program, $1,000,000, which shall be transferred
to and merged with the appropriation for departmental sal-
aries and expenses.
For any fiscal year, of the amounts made available
as emergency funds under the heading ‘‘Community Devel-
opment Block Grants Fund’’ and notwithstanding any
other provision of law, not more than $250,000 may be used
for the non-Federal cost-share of any project funded by the
Secretary of the Army through the Corps of Engineers.
BROWNFIELDS REDEVELOPMENT
For Economic Development Grants, as authorized by
section 108(q) of the Housing and Community Development
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Act of 1974, as amended, for Brownfields redevelopment
projects, $25,000,000, to remain available until expended:
Provided, That the Secretary of Housing and Urban Devel-
opment shall make these grants available on a competitive
basis as specified in section 102 of the Department of Hous-
ing and Urban Development Reform Act of 1989.
HOME INVESTMENT PARTNERSHIPS PROGRAM
For the HOME investment partnerships program, as
authorized under title II of the Cranston-Gonzalez National
Affordable Housing Act (Public Law 101–625), as amended,
$1,550,000,000, to remain available until expended: Pro-
vided, That up to $7,000,000 of these funds shall be avail-
able for the development and operation of integrated com-
munity development management information systems:
Provided further, That up to $25,000,000 of these funds
shall be available for Housing Counseling under section 106
of the Housing and Urban Development Act of 1968.
HOMELESS ASSISTANCE GRANTS
For the emergency shelter grants program (as author-
ized under subtitle B of title IV of the Stewart B. McKinney
Homeless Assistance Act, as amended); the supportive hous-
ing program (as authorized under subtitle C of title IV of
such Act); the section 8 moderate rehabilitation single room
occupancy program (as authorized under the United States
Housing Act of 1937, as amended) to assist homeless indi-
viduals pursuant to section 441 of the Stewart B. McKinney
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Homeless Assistance Act; and the shelter plus care program
(as authorized under subtitle F of title IV of such Act),
$1,000,000,000, to remain available until expended: Pro-
vided, That not less than 30 percent of these funds shall
be used for permanent housing, and all funding for services
must be matched by 25 percent in funding by each grantee.
HOUSING PROGRAMS
HOUSING FOR SPECIAL POPULATIONS
(INCLUDING TRANSFERS OF FUNDS)
For assistance for the purchase, construction, acquisi-
tion, or development of additional public and subsidized
housing units for low income families not otherwise pro-
vided for, $870,000,000, to remain available until expended:
Provided, That of the total amount provided under this
heading, $676,000,000 shall be for capital advances, includ-
ing amendments to capital advance contracts, for housing
for the elderly, as authorized by section 202 of the Housing
Act of 1959, as amended, and for project rental assistance,
and amendments to contracts for project rental assistance,
for the elderly under section 202(c)(2) of the Housing Act
of 1959, and for supportive services associated with the
housing; and $194,000,000 shall be for capital advances, in-
cluding amendments to capital advance contracts, for sup-
portive housing for persons with disabilities, as authorized
by section 811 of the Cranston-Gonzalez National Affordable
Housing Act, for project rental assistance, for amendments
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to contracts for project rental assistance, and supportive
services associated with the housing for persons with dis-
abilities as authorized by section 811 of such Act: Provided
further, That the Secretary may designate up to 25 percent
of the amounts earmarked under this paragraph for section
811 of such Act for tenant-based assistance, as authorized
under that section, including such authority as may be
waived under the next proviso, which assistance is five
years in duration: Provided further, That the Secretary
may waive any provision of section 202 of the Housing Act
of 1959 and section 811 of the Cranston-Gonzalez National
Affordable Housing Act (including the provisions governing
the terms and conditions of project rental assistance and
tenant-based assistance) that the Secretary determines is
not necessary to achieve the objectives of these programs,
or that otherwise impedes the ability to develop, operate or
administer projects assisted under these programs, and may
make provision for alternative conditions or terms where
appropriate.
FLEXIBLE SUBSIDY FUND
(TRANSFER OF FUNDS)
Any collections from the Rental Housing Assistance
Fund made during fiscal year 1999 shall be transferred to
the Flexible Subsidy Fund, as authorized by section 236(g)
of the National Housing Act, as amended.
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FEDERAL HOUSING ADMINISTRATION
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
During fiscal year 1999, commitments to guarantee
loans to carry out the purposes of section 203(b) of the Na-
tional Housing Act, as amended, shall not exceed a loan
principal of $110,000,000,000.
During fiscal year 1999, obligations to make direct
loans to carry out the purposes of section 204(g) of the Na-
tional Housing Act, as amended, shall not exceed
$100,000,000: Provided, That the foregoing amount shall be
for loans to nonprofit and governmental entities in connec-
tion with sales of single family real properties owned by
the Secretary and formerly insured under the Mutual Mort-
gage Insurance Fund.
For administrative expenses necessary to carry out the
guaranteed and direct loan program, $328,888,000, to be
derived from the FHA-mutual mortgage insurance guaran-
teed loans receipt account, of which not to exceed
$324,866,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed $4,022,000 shall be transferred to the appropriation
for the Office of Inspector General.
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FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the cost of guaranteed loans, as authorized by sec-
tions 238 and 519 of the National Housing Act (12 U.S.C.
1715z–3 and 1735c), including the cost of loan guarantee
modifications (as that term is defined in section 502 of the
Congressional 
Budget 
Act 
of 
1974, 
as 
amended),
$81,000,000, to remain available until expended: Provided,
That these funds are available to subsidize total loan prin-
cipal, any part of which is to be guaranteed, of up to
$18,100,000,000: Provided further, That any amounts made
available in any prior appropriations Act for the cost (as
such term is defined in section 502 of the Congressional
Budget Act of 1974) of guaranteed loans that are obliga-
tions of the funds established under section 238 or 519 of
the National Housing Act that have not been obligated or
that are deobligated shall be available to the Secretary of
Housing and Urban Development in connection with the
making of such guarantees and shall remain available until
expended, notwithstanding the expiration of any period of
availability otherwise applicable to such amounts.
Gross obligations for the principal amount of direct
loans, as authorized by sections 204(g), 207(l), 238(a), and
519(a) of the National Housing Act, shall not exceed
$120,000,000; of which not to exceed $100,000,000 shall be
for bridge financing in connection with the sale of multi-
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family real properties owned by the Secretary and formerly
insured under such Act; and of which not to exceed
$20,000,000 shall be for loans to nonprofit and govern-
mental entities in connection with the sale of single-family
real properties owned by the Secretary and formerly in-
sured under such Act.
In addition, for administrative expenses necessary to
carry out the guaranteed and direct loan programs,
$211,455,000, 
of 
which 
$193,134,000, 
including
$25,000,000 for the enforcement of housing standards on
FHA-insured multifamily projects, shall be transferred to
the appropriation for departmental salaries and expenses;
and of which $18,321,000 shall be transferred to the appro-
priation for the Office of Inspector General.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN
GUARANTEE PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
During fiscal year 1999, new commitments to issue
guarantees to carry out the purposes of section 306 of the
National Housing Act, as amended (12 U.S.C. 1721(g)),
shall not exceed $150,000,000,000.
For administrative expenses necessary to carry out the
guaranteed 
mortgage-backed 
securities 
program,
$9,383,000, to be derived from the GNMA-guarantees of
mortgage-backed securities guaranteed loan receipt account,
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of which not to exceed $9,383,000 shall be transferred to
the appropriation for departmental salaries and expenses.
POLICY DEVELOPMENT AND RESEARCH
RESEARCH AND TECHNOLOGY
For contracts, grants, and necessary expenses of pro-
grams of research and studies relating to housing and
urban problems, not otherwise provided for, as authorized
by title V of the Housing and Urban Development Act of
1970, as amended (12 U.S.C. 1701z–1 et seq.), including
carrying out the functions of the Secretary under section
1(a)(1)(i) of Reorganization Plan No. 2 of 1968,
$36,500,000, to remain available until September 30, 2000:
Provided, That no funds under this heading may be used
to fund a demonstration program, except subject to re-
programming.
FAIR HOUSING AND EQUAL OPPORTUNITY
FAIR HOUSING ACTIVITIES
For contracts, grants, and other assistance, not other-
wise provided for, as authorized by title VIII of the Civil
Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988, and section 561 of the Housing
and Community Development Act of 1987, as amended,
$35,000,000, to remain available until September 30, 1999,
of which $15,000,000 shall be to carry out activities pursu-
ant to such section 561. No funds made available under this
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heading shall be used to lobby the executive or legislative
branches of the Federal government in connection with a
specific contract, grant or loan.
MANAGEMENT AND ADMINISTRATION
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For necessary administrative and non-administrative
expenses of the Department of Housing and Urban Develop-
ment, not otherwise provided for, including not to exceed
$7,000 for official reception and representation expenses,
$992,826,000, of which $518,000,000 shall be provided from
the various funds of the Federal Housing Administration,
$9,383,000 shall be provided from funds of the Government
National Mortgage Association, $1,000,000 shall be pro-
vided from the ‘‘Community Development Grants Program’’
account, $200,000 shall be provided by transfer from the
‘‘Title VI Indian Federal Guarantees Program’’ account,
and $400,000 shall be provided by transfer from the ‘‘In-
dian Housing Loan Guarantee Fund Program’’ account:
Provided, That the Department is prohibited from employ-
ing more than 77 schedule C and 20 noncareer Senior Exec-
utive Service employees.
OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses of the Office of Inspector Gen-
eral in carrying out the Inspector General Act of 1978, as
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amended, $66,850,000, of which $22,343,000 shall be pro-
vided from the various funds of the Federal Housing Ad-
ministration: Provided, That $10,000,000 shall also be
transferred to this account from the amount earmarked for
Operation Safe Home in the ‘‘Drug Elimination Grants for
Low Income Housing’’ account.
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For carrying out the Federal Housing Enterprise Fi-
nancial Safety and Soundness Act of 1992, $16,000,000, to
remain available until expended, to be derived from the
Federal Housing Enterprise Oversight Fund: Provided,
That not to exceed such amount shall be available from the
General Fund of the Treasury to the extent necessary to
incur obligations and make expenditures pending the re-
ceipt of collections to the Fund: Provided further, That the
General Fund amount shall be reduced as collections are
received during the fiscal year so as to result in a final
appropriation from the General Fund estimated at not
more than $0.
ADMINISTRATIVE PROVISIONS
SEC. 201. EXTENDERS. (a) ONE-FOR-ONE REPLACE-
MENT OF PUBLIC HOUSING.—Section 1002(d) of Public
Law 104–19 is amended by striking ‘‘1998’’ and inserting
‘‘1999’’.
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(b) STREAMLINING SECTION 8 TENANT-BASED ASSIST-
ANCE.—Section 203(d) of the Departments of Veterans Af-
fairs and Housing and Urban Development, and Independ-
ent Agencies Appropriations Act, 1996, is amended by
striking ‘‘1997, and 1998’’ and inserting ‘‘1997, 1998, and
1999’’.
(c) PUBLIC AND ASSISTED HOUSING RENTS, INCOME
ADJUSTMENTS AND PREFERENCES.—
(1) Section 402(a) of The Balanced Budget
Downpayment Act, I is amended by striking ‘‘fiscal
years 1997 and 1998’’ and inserting ‘‘fiscal years
1997, 1998, and 1999’’.
(2) Section 402(f) of The Balanced Budget
Downpayment Act, I is amended by striking ‘‘fiscal
years 1996, 1997, and 1998’’ and inserting ‘‘fiscal
years 1996, 1997, 1998, and 1999’’.
SEC. 202. FINANCING ADJUSTMENT FACTORS.—Fifty
percent of the amounts of budget authority, or in lieu there-
of 50 percent of the cash amounts associated with such
budget authority, that are recaptured from projects de-
scribed in section 1012(a) of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 (Public Law
100–628, 102 Stat. 3224, 3268) shall be rescinded, or in
the case of cash, shall be remitted to the Treasury, and such
amounts of budget authority or cash recaptured and not
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rescinded or remitted to the Treasury shall be used by State
housing finance agencies or local governments or local hous-
ing agencies with projects approved by the Secretary of
Housing and Urban Development for which settlement oc-
curred after January 1, 1992, in accordance with such sec-
tion. Notwithstanding the previous sentence, the Secretary
may award up to 15 percent of the budget authority or cash
recaptured and not rescinded or remitted to the Treasury
to provide project owners with incentives to refinance their
project at a lower interest rate.
SEC. 203. FAIR HOUSING AND FREE SPEECH.—None
of the amounts made available under this Act may be used
during fiscal year 1998 to investigate or prosecute under
the Fair Housing Act any otherwise lawful activity engaged
in by one or more persons, including the filing or maintain-
ing of a nonfrivolous legal action, that is engaged in solely
for the purpose of achieving or preventing action by a gov-
ernment official or entity, or a court of competent jurisdic-
tion.
SEC. 204. REQUIREMENT FOR HUD TO MAINTAIN
PUBLIC NOTICE AND COMMENT RULEMAKING.—Notwith-
standing any other provision of law, for fiscal year 1998
and for all fiscal years thereafter, the Secretary of Housing
and Urban Development shall maintain all current require-
ments under part 10 of the Department of Housing and
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Urban Development regulations (24 CFR part 10) with re-
spect to the Department’s policies and procedures for the
promulgation and issuance of rules, including the use of
public participation in the rulemaking process.
SEC. 205. BROWNFIELDS AS ELIGIBLE CDBG ACTIV-
ITY.—For fiscal years 1998 and 1999, States and entitle-
ment communities may use funds allocated under the com-
munity development block grants program under title I of
the Housing and Community Development Act of 1974 for
environmental cleanup and economic development activities
related to Brownfields projects in conjunction with the ap-
propriate environmental regulatory agencies, as if such ac-
tivities were eligible under section 105(a) of such Act.
SEC. 206. ENHANCED DISPOSITION AUTHORITY.—Sec-
tion 204 of the Departments of Veterans Affairs and Hous-
ing and Urban Development, and Independent Agencies
Appropriations Act, 1997, is amended by inserting after
‘‘owned by the Secretary’’ the following: ‘‘, including, for
fiscal years 1998 and 1999, the provision of grants and
loans from the General Insurance Fund (12 U.S.C. 1735c)
for the necessary costs of rehabilitation or demolition,’’.
SEC. 207. HUD RENT REFORM.—Notwithstanding
any other provision of law, the Secretary of Housing and
Urban Development may provide tenant-based assistance to
eligible tenants of a project insured under either sections
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221(d)(3) or 236 of the National Housing Act in the same
manner as if the owner had prepaid the insured mortgage
to the extent necessary to minimize any rent increases or
to prevent displacement of low-income tenants in accord-
ance with a transaction approved by the Secretary provided
that the rents are no higher than the published section 8
fair market rents, as of the date of enactment, during the
tenants’ occupancy of the property.
SEC. 208. HOUSING OPPORTUNITIES FOR PERSONS
WITH AIDS GRANTS.—(a) ELIGIBILITY.—Notwithstanding
section 854(c)(1)(A) of the AIDS Housing Opportunity Act
(42 U.S.C. 12903(c)(1)(A)), from any amounts made avail-
able under this title for fiscal year 1999 that are allocated
under such section, the Secretary of Housing and Urban
Development shall allocate and make a grant, in the
amount determined under subsection (b), for any State
that—
(1) received an allocation for fiscal year 1998
under clause (ii) of such section;
(2) is not otherwise eligible for an allocation for
fiscal year 1999 under such clause (ii) because the
State does not have the number of cases of acquired
immunodeficiency syndrome required under such
clause; and
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(3) would meet such requirement if the cases in
the metropolitan statistical area for any city within
the State, which city was not eligible for an allocation
for fiscal year 1998 under clause (i) of such section
but is eligible for an allocation for fiscal year 1999
under such clause, were considered to be cases outside
of metropolitan statistical areas described in clause
(i) of such section.
(b) AMOUNT.—The amount of the allocation and grant
for any State described in subsection (a) shall be the
amount that is equal to the lesser of—
(1) the difference between—
(A) the total amount allocated for such
State under section 854(c)(1)(A)(ii) of the AIDS
Housing Opportunity Act for fiscal year 1997;
and
(B) the total amount allocated for the city
described in subsection (a)(3) of this section
under section 854(c)(1)(A)(i) of such Act for fis-
cal year 1998 (from amounts made available
under this title); and
(2) $300,000.
SEC. 209. SECTION 236 PROGRAM REFORM.—Section
236 of the National Housing Act is amended to add a sub-
section in the appropriate place as follows:
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‘‘(g) The project owner shall, as required by the Sec-
retary, accumulate, safeguard, and periodically pay the
Secretary or such other entity as determined by the Sec-
retary and upon such terms and conditions as the Secretary
deems appropriate, all rental charges collected on a unit-
by-unit basis in excess of the basic rental charges. Unless
otherwise directed by the Secretary, such excess charges shall
be credited to a reserve fund to be used by the Secretary
to make additional assistance payments as provided in
paragraph (3) of subsection (f). Notwithstanding any other
requirements of this subsection, a project owner with a
mortgage insured under this section or insured under sec-
tion 207 of this Act pursuant to section 223(f) of this Act
may retain some or all of such excess charges for project
use if authorized by the Secretary and upon such terms and
conditions as established by the Secretary.’’.
SEC. 210. FHA MULTIFAMILY MORTGAGE CREDIT
DEMONSTRATIONS.—Section 542 of the Housing and Com-
munity Development Act of 1992 is amended—
(1) in subsection (b)(5) by adding before the pe-
riod at the end of the first sentence ‘‘, and not more
than an additional 25,000 units over fiscal year
1999’’, and
(2) in the first sentence of subsection (c)(4) in-
serting after ‘‘fiscal year 1997’’ the following: ‘‘and
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not more than an additional 25,000 units during fis-
cal year 1999’’.
SEC. 211. CALCULATION OF DOWNPAYMENT.—Section
203(b)(10) of the National Housing Act is amended by—
(1) striking out ‘‘Alaska and Hawaii’’ and in-
serting in lieu thereof ‘‘Calculation of Downpay-
ment’’; and
(2) striking out in subparagraph (A) ‘‘originated
in the State of Alaska or the State of Hawaii and en-
dorsed for insurance in fiscal years 1997 and 1998,’’
and inserting in lieu thereof ‘‘executed for insurance
in fiscal years 1998, 1999, and 2000’’.
SEC. 212. STATE CDBG IDIS FUNDING.—During fis-
cal year 1999, from amounts received by a State under sec-
tion 106(d)(1) of the Housing and Community Development
Act of 1974 for distribution in nonentitlement areas, the
State may deduct an amount, not to exceed the greater of
0.25 percent of the amount so received or $50,000, for im-
plementation of the integrated disbursement and informa-
tion system established by the Secretary, in addition to any
amounts used for this purpose from amounts retained by
the State for administrative expenses under section
106(d)(3)(A).
SEC. 213. NURSING HOME LEASE TERMS. (a) TECH-
NICAL CORRECTION.—Section 216 of the Departments of
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Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1998, is amend-
ed by striking out ‘‘fifty years from the date’’ and inserting
in lieu thereof ‘‘fifty years to run from the date’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall be construed to have taken effect on October
27, 1997.
SEC. 214. EMPOWERMENT ZONES AS CRITERIA.—The
Secretary of Housing and Urban Development is prohibited
from using as a grant criteria for any program adminis-
tered by the Secretary the use of program funds in an em-
powerment zone or enterprise community.
SEC. 215. GRANT ANNOUNCEMENTS.—The Secretary of
Housing and Urban Development shall provide all grant
announcements to the Senate and House Appropriations
Subcommittees on VA, HUD, and Independent Agencies at
least twenty-four hours before the Department of Housing
and Urban Development publicly or privately makes an an-
nouncement of any grant award.
SEC. 216. TECHNICAL FOR EMERGENCY CDBG PRO-
GRAM.—For purposes of eligibility for funding under the
heading ‘‘Community Development Block Grants’’ in the
1998 Supplemental Appropriations and Rescissions Act
(Public Law 105–174; May 1, 1998) the term ‘‘states’’ shall
be deemed to include ‘‘Indian tribes’’ as defined under sec-
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tion 102(a)(17) of the Housing and Community Develop-
ment Act of 1974 and Guam, the Northern Mariana Is-
lands, the Virgin Islands, and American Samoa: Provided,
That amounts made available by this section are designated
by the Congress as an emergency requirement pursuant to
section 251(b)(2)(A) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985, as amended.
SEC. 217. ACCOUNT TRANSITION.—The amount of ob-
ligated balances in appropriations accounts, as set forth in
title II of the Departments of Veterans Affairs, and Housing
and Urban Development, and Independent Agencies Appro-
priations Act, 1998 and prior Acts that are recaptured here-
after, to the extent not governed by the specific language
in an account or provision in the Act, shall be held in re-
serve subject to reprogramming, notwithstanding any other
provision of law.
SEC. 218. PROHIBITION ON UNIVERSITY FUNDING.—
The Secretary of Housing and Urban Development is pro-
hibited from paying directly or indirectly any university
the cost of room and board and tuition for training associ-
ated with senior community builders or any similar pro-
gram except that the Secretary may fund education and
training programs associated with the Community Develop-
ment Block Grant program, the Community First Leader-
ship program and the Junior Community Builders pro-
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(A) administrative burden on contractors
and recipients of financial assistance awards;
(B) administrative burdens on external par-
ticipants in independent, merit-based evalua-
tions;
(C) cost and schedule control for construc-
tion projects funded by the program;
(D) the ratio of overhead costs of the pro-
gram relative to the amounts expended through
the program for equipment and direct funding of
research; and
(E) the timeliness of program responses to
requests for funding, participation, or equipment
use.
(b) INDEPENDENT MERIT-BASED EVALUATION DE-
FINED.—The term ‘‘independent merit-based evaluation’’
means review of the scientific or technical quality of re-
search or development, conducted by experts who are chosen
for their knowledge of scientific and technical fields relevant
to the evaluation and who—
(1) in the case of the review of a program activ-
ity, do not derive long-term support from the program
activity; or