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105TH CONGRESS
1ST SESSION
H. R. 263
To provide for the disposition of unoccupied and substandard multifamily
housing projects owned by the Secretary of Housing and Urban Development.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mrs. ROUKEMA introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To provide for the disposition of unoccupied and substandard
multifamily housing projects owned by the Secretary of
Housing and Urban Development.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Urban Homestead Act
of 1996’’.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions
shall apply:
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(1) 
COMMUNITY
DEVELOPMENT
CORPORA-
TION.—The term ‘‘community development corpora-
tion’’ means a nonprofit organization whose primary
purpose is to promote community development by
providing housing opportunities to low-income fami-
lies.
(2) COST RECOVERY BASIS.—The term ‘‘cost
recovery basis’’ means, with respect to any sale of a
project or residence by a unit of general local gov-
ernment to a community development corporation
under section 3(c)(2), that the purchase price paid
by the community development corporation is less
than or equal to the costs incurred by the unit of
general local government in connection with such
project or residence during the period beginning on
the date on which the unit of general local govern-
ment acquires title to the multifamily housing
project or residential property under subsection (a)
and ending on the date on which the sale is con-
summated.
(3) LOW-INCOME FAMILIES.—The term ‘‘low-in-
come families’’ has the same meaning as in section
3(b) of the United States Housing Act of 1937.
(4) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘‘multifamily housing project’’ has the same
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meaning as in section 203 of the Housing and Com-
munity Development Amendments of 1978.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(6) SEVERE PHYSICAL PROBLEMS.—A dwelling
unit shall be considered to have ‘‘severe physical
problems’’ if such unit—
(A) lacks hot or cold piped water, a flush
toilet, or both a bathtub and a shower in the
unit, for the exclusive use of that unit;
(B) on not less than 3 separate occasions,
during the preceding winter months was uncom-
fortably cold for a period of more than 6 con-
secutive hours due to a malfunction of the heat-
ing system for the unit;
(C) has no functioning electrical service,
exposed wiring, any room in which there is not
a functioning electrical outlet, or has experi-
enced not less than 3 blown fuses or tripped
circuit breakers during the preceding 90-day
period;
(D) is accessible through a public hallway
in which there are no working light fixtures,
loose or missing steps or railings, and no eleva-
tor; or
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(E) has severe maintenance problems, in-
cluding water leaks involving the roof, windows,
doors, basement, or pipes or plumbing fixtures,
holes or open cracks in walls or ceilings, severe
paint peeling or broken plaster, and signs of ro-
dent infestation.
(7) SINGLE
FAMILY
RESIDENCE.—The term
‘‘single family residence’’ means a 1- to 4-family
dwelling that is held by the Secretary.
(8) 
SUBSTANDARD
MULTIFAMILY
HOUSING
PROJECT.—A multifamily housing project is ‘‘sub-
standard’’ if not less than 25 percent of the dwelling
units of the project have severe physical problems.
(9) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’ has the
same meaning as in section 102(a) of the Housing
and Community Development Act of 1974.
(10) 
UNOCCUPIED
MULTIFAMILY
HOUSING
PROJECT.—The term ‘‘unoccupied multifamily hous-
ing project’’ means a multifamily housing project
that the unit of general local government certifies in
writing is not inhabited.
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shall notify community development corporations lo-
cated in the State in which the project or residence
is located—
(A) of such acquisition of title; and
(B) that, during the 6-month period begin-
ning on the date on which such notification is
made, such community development corpora-
tions shall have the exclusive right under this
subsection to make bona fide offers to purchase
the project or residence on a cost recovery
basis.
(2) RIGHT OF FIRST REFUSAL.—During the 6-
month period described in paragraph (1)(B)—
(A) the unit of general local government
may not sell or offer to sell the multifamily
housing project or other residential property
other than to a party notified under paragraph
(1), unless each community development cor-
poration notifies the unit of general local gov-
ernment that the corporation will not make an
offer to purchase the project or residence; and
(B) the unit of general local government
shall accept a bona fide offer to purchase the
project or residence made during such period if
the offer is acceptable to the unit of general
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local government, except that a unit of general
local government may not sell a project or resi-
dence to a community development corporation
during that 6-month period other than on a
cost recovery basis.
(3) OTHER DISPOSITION.—During the 6-month
period beginning on the expiration of the 6-month
period described in paragraph (1)(B), the unit of
general local government shall dispose of the multi-
family housing project or other residential property
on a negotiated, competitive bid, or other basis, on
such terms as the unit of general local government
deems appropriate.
SEC. 4. EXEMPTION FROM PROPERTY DISPOSITION RE-
QUIREMENTS.
No provision of the Multifamily Housing Property
Disposition Reform Act of 1994, or any amendment made
by that Act, shall apply to the disposition of property in
accordance with this Act.
SEC. 5. TENANT LEASES.
This Act shall not affect the terms or the enforce-
ability of any contract or lease entered into before the date
of enactment of this Act.
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SEC. 6. PROCEDURES.
Not later than 6 months after the date of enactment
of this Act, the Secretary shall establish, by rule, regula-
tion, or order, such procedures as may be necessary to
carry out this Act.
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