I
105TH CONGRESS
1ST SESSION
H. R. 1798
To reform the program of the Department of Housing and Urban Develop-
ment for disposition of single family properties in the inventory of the
Department for use for the homeless.
IN THE HOUSE OF REPRESENTATIVES
JUNE 5, 1997
Mr. BAKER (for himself and Mr. BACHUS) introduced the following bill; which
was referred to the Committee on Banking and Financial Services
A BILL
To reform the program of the Department of Housing and
Urban Development for disposition of single family prop-
erties in the inventory of the Department for use for
the homeless.
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 ‘‘HUD Property Dis-
position Reform Act’’.
SEC. 2. CONGRESSIONAL FINDINGS.
The Congress finds that—
(1) while there is a pressing need to serve
homeless families and individuals, the program of
the Department of Housing and Urban Development
for disposition of single family properties for use by
the homeless is ineffective;
(2) Federal housing programs for the homeless
must serve homeless families and individuals at a
reasonable cost to taxpayers; and
(3) the single family property disposition pro-
gram for the homeless is poorly designed and admin-
istered, drains critical human and financial re-
sources from the Department of Housing and Urban
Development, is fraught with abuse and fraud, and,
therefore, is a poor use of taxpayer assets.
SEC. 3. ELIMINATION OF LEASE OPTIONS.
In carrying out the disposition program (as such term
is defined in section 6), the Secretary of Housing and
Urban Development may not dispose of eligible prop-
erties—
(1) by lease with an option to purchase; or
(2) to any applicant for an acquisition grant
under the supportive housing program under any
agreement that provides for the lease of the property
(including any lease-option to purchase agreement).
SEC. 4. DISCOUNTS FOR PURCHASE OF PROPERTIES.
In selling any property under the disposition pro-
gram, the purchase price shall be the fair market value
of the property, less a discount, as follows:
(1) INSURED SALES AND SALES UNDER SUP-
PORTIVE
HOUSING
LEASE-OPTION
TO
PURCHASE
AGREEMENTS.—In the case of any property made
available for purchase with mortgage insurance
available under the National Housing Act or any
property purchased pursuant to a lease-option to
purchase agreement entered into before the date of
the enactment of this Act by an applicant for an ac-
quisition grant under the supportive housing pro-
gram, the discount shall be—
(A) 10 percent, for any property sold in a
single transaction involving not more than 4
properties;
(B) 15 percent, for any property sold in a
single transaction involving 5 or more prop-
erties; or
(C) notwithstanding subparagraphs (A)
and (B), 30 percent, for any property located in
a revitalization area.
(2) UNINSURED SALES.—
(A) IN GENERAL.—In the case of any un-
insurable property, the discount shall be—
(i) 20 percent, for any property sold
in a single transaction involving not more
than 4 properties;
(ii) 25 percent, for any property sold
in a single transaction involving 5 or more
properties; or
(iii) notwithstanding subparagraphs
(A) and (B), 40 percent, for any property
located in a revitalization area.
(B) 
UNINSURABLE
PROPERTIES.—For
purposes of subparagraph (A), the term ‘‘unin-
surable property’’ means an eligible property
that—
(i) is made available for purchase
without any mortgage insurance under the
National Housing Act;
(ii) is not a property purchased pursu-
ant to a lease-option to purchase agree-
ment entered into before the date of the
enactment of this Act by an applicant for
an acquisition grant under the supportive
housing program; and
(iii) if purchased by a private non-
profit organization, is purchased subject to
such binding agreements as the Secretary