IB
Union Calendar No. 332
103D CONGRESS
2D SESSION
H. R. 3838
[Report No. 103–607]
To amend and extend certain laws relating to housing and community
development, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 10, 1994
Mr. GONZALEZ (for himself, Mrs. ROUKEMA, Mr. NEAL of North Carolina,
Mr. LAFALCE, Mr. VENTO, Mr. FRANK of Massachusetts, Mr. KAN-
JORSKI, Mr. KENNEDY, Mr. FLAKE, Mr. MFUME, Ms. WATERS, Mr. BAC-
CHUS of Florida, Mr. KLEIN, Mr. DEUTSCH, Mr. GUTIERREZ, Mr. RUSH,
Ms. VELA´ZQUEZ, Mr. WYNN, Mr. FIELDS of Louisiana, Mr. WATT, Mr.
HINCHEY, and Ms. FURSE) introduced the following bill; which was re-
ferred to the Committee on Banking, Finance and Urban Affairs
APRIL 25, 1994
Additional sponsors: Mr. NEAL of Massachusetts, Mr. FOGLIETTA, and Mr.
SANDERS
JULY 15, 1994
Additional sponsors: Mr. BOUCHER, and Mr. JOHNSTON of Florida
JULY 15, 1994
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 10, 1994]
A BILL
To amend and extend certain laws relating to housing and
community development, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Housing and Community Development Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Effective date.
TITLE I—HOUSING ASSISTANCE
Subtitle A—General Provisions
Sec. 101. Low-income housing authorization.
Sec. 102. Resident representation in public housing agencies.
Sec. 103. Determination of median income.
Sec. 104. Definition of families.
Sec. 105. Family self-sufficiency program.
Sec. 106. Use of amounts in headquarters reserve.
Subtitle B—Public and Indian Housing
Sec. 111. Public housing rent reform.
Sec. 112. Sale of public housing to non-profit intermediaries.
Sec. 113. Major reconstruction of obsolete projects.
Sec. 114. New construction of projects for disabled families.
Sec. 115. Recapture of public housing development amounts.
Sec. 116. Repeal of least-cost limitation on public housing new construction.
Sec. 117. Regulatory relief and paperwork reduction for high-performing public
housing agencies.
Sec. 118. Standards for lease termination and expedited grievance procedure.
Sec. 119. Availability of criminal conviction information for screening and
evictions.
Sec. 120. Designated housing.
Sec. 121. Public housing operating subsidies.
Sec. 122. Eligible uses of emergency modernization funds.
Sec. 123. Use of modernization funds for replacement housing.
Sec. 124. Demolition and disposition of public housing.
Sec. 125. Public housing resident opportunity.
Sec. 126. Public housing family investment centers.
Sec. 127. Revitalization of severely distressed public housing.
Sec. 128. Program monitoring and technical assistance.
Sec. 129. Applicability of public housing amendments to Indian housing.
Sec. 130. Early childhood development program.
Sec. 131. Indian housing childhood development services.
Sec. 132. Public housing one-stop perinatal services demonstration.
Sec. 133. Sale of certain scattered site public housing.
Sec. 134. Eligibility of certain public housing for demolition.
Sec. 135. Demonstration program for innovative public housing agencies and
resident management corporations.
Sec. 136. Demonstration program for occupancy of otherwise vacant public hous-
ing units by moderate-income families.
Sec. 137. Study of adequacy of payment in lieu of taxes.
Subtitle C—Section 8 Assistance
Sec. 141. Community investment demonstration program.
Sec. 142. Merger of section 8 rental assistance programs.
Sec. 143. Incentives to refinance high interest mortgages for section 8 projects.
Sec. 144. Demonstration program for use of excess residual receipts.
Sec. 145. Treatment of certain projects.
Sec. 146. Study of extent of nonparticipation of owners and landlords in section
8 rental assistance program.
Sec. 147. Study of section 8 housing quality standards.
Subtitle D—Renewal of Expiring Contracts for Section 8 New Construction
and Substantial Rehabilitation Projects
Sec. 151. Findings and purpose.
Sec. 152. Notices of contract expiration and intention to renew.
Sec. 153. Secretary’s response to owner’s proposal.
Sec. 154. Limitation on new contracts.
Sec. 155. Required terms of new contracts.
Sec. 156. Maximum monthly rent under new contracts.
Sec. 157. Actions in cases of failure to enter into new contract.
Sec. 158. Contract extension.
Sec. 159. Financing and restructuring underlying debt and treatment of residual
receipts.
Sec. 160. Retention of program savings by Secretary.
Sec. 161. Supportive services.
Sec. 162. Delegation of authority.
Sec. 163. Definitions.
Sec. 164. Regulations.
Sec. 165. Authorization of appropriations.
Subtitle E—Homeownership Programs
Sec. 171. HOPE homeownership programs.
Sec. 172. National Homeownership Fund.
Sec. 173. Section 235 mortgage refinancing.
Sec. 174. Housing counseling for homeownership and rental housing choice.
Subtitle F—Other Programs
Sec. 181. Community partnerships against crime.
Sec. 182. Low-income housing preservation.
Sec. 183. Flexible subsidy program.
Sec. 184. Youthbuild program.
Sec. 185. Disposition of HUD-owned multifamily housing properties.
Sec. 186. Guidelines for screening, admission, and evictions in public and
assisted housing.
Sec. 187. Metropolitan area-wide strategy demonstration.
TITLE II—HOME INVESTMENT PARTNERSHIPS
Sec. 201. Authorization of appropriations.
Sec. 202. Eligible uses of investment.
Sec. 203. Qualification as affordable rental housing.
Sec. 204. Repayment of investment.
Sec. 205. Matching requirements.
Sec. 206. Support for State and local housing strategies.
Sec. 207. Labor requirements.
TITLE III—SUPPORTIVE HOUSING PROGRAMS
Sec. 301. Funding for supportive housing for the elderly and for persons with dis-
abilities.
Sec. 302. Supportive housing for the elderly.
Sec. 303. Supportive housing for persons with disabilities.
Sec. 304. Revised congregate services.
Sec. 305. Supportive housing assistance for elderly independence.
Sec. 306. Housing opportunities for persons with AIDS.
Sec. 307. Service coordinators.
TITLE IV—MORTGAGE INSURANCE AND SECONDARY MORTGAGE
MARKET
Subtitle A—Mortgage Insurance and Loan Guarantee Programs
Sec. 401. Limitation on insurance authority.
Sec. 402. Federal Housing Administration Advisory Board.
Sec. 403. Maximum mortgage amount ceiling for single family mortgages.
Sec. 404. Maximum mortgage amount floor for single family mortgage insurance.
Sec. 405. Elimination of restrictions regarding new construction.
Sec. 406. Authority to use amounts borrowed from family members for
downpayments.
Sec. 407. Indemnification for multifamily housing project managers.
Sec. 408. Extension of multifamily housing mortgage auction provisions.
Sec. 409. Streamlined refinancing for HUD-held mortgages.
Sec. 410. Home equity conversion mortgages for elderly homeowners.
Sec. 411. Single family risk-sharing mortgage insurance program.
Sec. 412. Delegation of single family mortgage insuring authority to direct en-
dorsement mortgagees.
Sec. 413. Eligibility of mortgages on homes on leased land owned by community
land trusts.
Sec. 414. Insurance of 2-step single family mortgages.
Sec. 415. Mortgage limits for multifamily projects in high-cost areas.
Sec. 416. Calculation of credit subsidy for FHA refinancings and offset of
negative subsidies.
Sec. 417. Approval of point-of-use purification systems and testing of systems.
Sec. 418. Energy efficient mortgages pilot program.
Sec. 419. Extension of multifamily mortgage credit demonstrations.
Sec. 420. Indian housing loan guarantees.
Sec. 421. National Commission on the Future of the Federal Housing Adminis-
tration.
Sec. 422. Action and report on cooperative homeownership for low- and moderate-
income families.
Sec. 423. Study of activity of private mortgage bankers and insurers.
Subtitle B—Secondary Mortgage Market Programs
Sec. 441. Limitation on GNMA guarantees of mortgage-backed securities.
Sec. 442. Assessment collection dates for Office of Federal Housing Enterprise
Oversight.
Subtitle C—Emergency Mortgage Relief
Sec. 461. Amendments to Emergency Homeowners’ Relief Act.
Subtitle D—Nonjudicial Foreclosure of Defaulted Single Family Mortgages
Sec. 481. Short title.
Sec. 482. Findings and purpose.
Sec. 483. Definitions.
Sec. 484. Applicability.
Sec. 485. Designation of foreclosure commissioner.
Sec. 486. Prerequisites to foreclosure.
Sec. 487. Notice of foreclosure sale.
Sec. 488. Commencement of foreclosure.
Sec. 489. Service of notice of foreclosure.
Sec. 490. Presale reinstatement.
Sec. 491. Conduct of sale and adjournment.
Sec. 492. Foreclosure costs.
Sec. 493. Disposition of sale proceeds.
Sec. 494. Transfer of title and possession.
Sec. 495. Record of foreclosure and sale.
Sec. 496. Effect of sale.
Sec. 497. Computation of time.
Sec. 498. Separability.
Sec. 499. Deficiency judgment.
TITLE V—RURAL HOUSING
Sec. 501. Program authorizations.
Sec. 502. Eligibility of Native Americans for rural housing programs.
Sec. 503. Escrow fund.
Sec. 504. Section 502 homeownership loans.
Sec. 505. Loan guarantees.
Sec. 506. Prepayment of rural rental housing loans.
Sec. 507. Designation of underserved areas and reservation of assistance.
Sec. 508. Administrative appeals.
Sec. 509. Section 515 rural rental housing.
Sec. 510. Optional conversion of rental assistance payments to operating subsidy
for migrant farmworker projects.
Sec. 511. Definition of rural area.
Sec. 512. Eligibility of manufactured home parks for building site loans for co-
operatives.
Sec. 513. Rural housing assistance targeting report.
Sec. 514. Priority for rural housing voucher assistance.
Sec. 515. Native American rural housing capacity demonstration program.
Sec. 516. Rural community development initiative.
Sec. 517. Loan guarantees for multifamily rental housing in rural areas.
Sec. 518. Rural housing loan delegated processing demonstration.
TITLE VI—COMMUNITY DEVELOPMENT
Subtitle A—Community Development Block Grant Program
Sec. 601. Authorization of appropriations and guarantee authority.
Sec. 602. Management information systems.
Sec. 603. Eligible activities.
Sec. 604. Reallocations.
Sec. 605. Limitation on extent of use of loan guarantees for housing purposes.
Sec. 606. Economic development grants.
Sec. 607. Use of UDAG recaptures.
Sec. 608. Extension of certain CDBG assistance.
Subtitle B—Other Community Development Programs
Sec. 631. Neighborhood Reinvestment Corporation.
Sec. 632. John Heinz neighborhood development program.
Sec. 633. Capacity building for community development and affordable housing.
Sec. 634. Colonias assistance program.
Sec. 635. Grants for empowerment zones and enterprise communities.
Sec. 636. Use of grant amounts.
TITLE VII—REGULATORY AND MISCELLANEOUS PROGRAMS
Sec. 701. Fair housing initiatives program.
Sec. 702. HUD program monitoring and evaluation.
Sec. 703. HUD salaries and expenses.
Sec. 704. Use of technical assistance amounts by or for HUD staff.
Sec. 705. Annual report regarding repeal of unfunded programs.
Sec. 706. Requirements for participation of women in construction assisted under
HUD programs.
Sec. 707. Notification of HUD funding awards.
Sec. 708. Exclusion of GNMA from HUD personnel ceilings.
Sec. 709. HUD research and development.
Sec. 710. Preventing fraud and abuse in rural rental housing program.
Sec. 711. National Institute of Building Sciences.
Sec. 712. Residential lead-based paint hazard reduction.
Sec. 713. GAO study of lead-based paint detection technologies and tenant
notification procedures.
Sec. 714. Civil money penalties for violations of Home Mortgage Disclosure Act
by nonsupervised mortgagees.
Sec. 715. Removal of regulatory barriers to affordable housing.
Sec. 716. New towns demonstration program for emergency relief of Los Angeles.
Sec. 717. Authorization of appropriations for public services facility.
Sec. 718. National American Indian Housing Council.
Sec. 719. Housing Assistance Council.
Sec. 720. Demonstration program for outreach to avoid disconnection of utilities.
Sec. 721. Federal Deposit Insurance Corporation affordable housing program.
Sec. 722. State agencies as sureties.
TITLE VIII—HOUSING PROGRAMS UNDER STEWART B. MCKINNEY
HOMELESS ASSISTANCE ACT
Sec. 801. Short title.
Subtitle A—Housing Assistance
CHAPTER 1—REORGANIZATION OF CERTAIN MCKINNEY ACT HOUSING
PROVISIONS
Sec. 811. Flexible grant program.
Sec. 812. Regulations.
Sec. 813. Transition provisions.
CHAPTER 2—OTHER HOUSING ASSISTANCE PROGRAMS FOR THE HOMELESS
UNDER MCKINNEY ACT
Sec. 821. Section 8 assistance for single room occupancy dwellings.
Sec. 822. Section 8 assistance for shelter plus care single room occupancy dwell-
ings.
Sec. 823. Rural homelessness grant program.
Sec. 824. Clerical amendment.
CHAPTER 3—MISCELLANEOUS HOMELESS HOUSING PROVISIONS
Sec. 831. Innovative homeless program.
Sec. 832. FHA single family property disposition.
Subtitle B—Interagency Council on the Homeless
Sec. 841. Authorization of appropriations.
Sec. 842. Chairperson.
Sec. 843. Extension.
Subtitle C—Federal Emergency Management Agency Food and Shelter Program
Sec. 851. Authorization of appropriations.
SEC. 2. EFFECTIVE DATE.
The provisions of this Act and the amendments made
by this Act shall take effect and shall apply upon the date
of the enactment of this Act, unless such provisions or
amendments specifically provide for effectiveness or appli-
cability upon another date certain.
TITLE I—HOUSING ASSISTANCE
Subtitle A—General Provisions
SEC. 101. LOW-INCOME HOUSING AUTHORIZATION.
(a) 
AGGREGATE
BUDGET
AUTHORITY.—Section
5(c)(6) of the United States Housing Act of 1937 (42 U.S.C.
1437c(c)(6)) is amended by adding at the end the following
new sentence: ‘‘The aggregate amount of budget authority
that may be obligated for assistance referred to in para-
graph (7) is increased (to the extent approved in appropria-
tion Acts) by the sum of the amounts provided in paragraph
(7)(A) on October 1, 1994, and by the sum of the amounts
provided in paragraph (7)(B) on October 1, 1995.’’.
(b) UTILIZATION OF BUDGET AUTHORITY.—Section
5(c)(7) of the United States Housing Act of 1937 (42 U.S.C.
1437c(c)(7)) is amended by striking the paragraph designa-
tion and all that follows through the end of subparagraph
(B) and inserting the following:
‘‘(7)(A) Using the additional budget authority pro-
vided under paragraph (6) and the balances of budget au-
thority that become available during fiscal year 1995, the
Secretary shall, to the extent approved in appropriation
Acts, reserve authority to enter into obligations aggregat-
ing—
‘‘(i) for public housing grants under subsection
(a)(2), not more than $861,000,000, of which amount
not more than $263,000,000 shall be available for In-
dian housing;
‘‘(ii) for assistance under section 8, not more
than $2,674,000,000, of which not more than
$75,000,000 shall be available for assistance under
section 8 for family unification under subsection
(q)(3) of such section;
‘‘(iii) for assistance under section 5(j)(2) for sub-
stantial redesign, reconstruction, and redevelopment
of existing obsolete public housing projects and build-
ings, not more than $114,000,000;
‘‘(iv) for comprehensive improvement assistance
grants 
under 
section 
14(k), 
not 
more 
than
$3,230,000,000;
‘‘(v) for assistance under section 8 for property
disposition, not more than $733,000,000;
‘‘(vi) for assistance under section 8 for loan
management, not more than $150,000,000;
‘‘(vii) for extensions of contracts expiring under
section 8, $5,092,000,000 which shall be for 5-year
contracts for assistance under section 8 and vouchers
under section 8(o) (as in effect before the date of the
enactment of this Act) and for loan management as-
sistance under such section;
‘‘(viii) for amendments to contracts under sec-
tion 8, such sums as may be necessary;
‘‘(ix) for public housing lease adjustments and
amendments, such sums as may be necessary;
‘‘(x) for assistance under section 18(g) for re-
placement housing for units demolished or disposed of
under section 18, not more than $333,450,000;
‘‘(xi) for conversions from leased housing con-
tracts under section 23 of this Act (as in effect imme-
diately before the enactment of the Housing and Com-
munity Development Act of 1974) to assistance under
section 8, such sums as may be necessary; and
‘‘(xii) for grants under section 24 for revitaliza-
tion of severely distressed public housing, not more
than $500,000,000.
‘‘(B) Using the additional budget authority provided
under paragraph (6) and the balances of budget authority
that become available during fiscal year 1996, the Secretary
shall, to the extent approved in appropriation Acts, reserve
authority to enter into obligations aggregating—
‘‘(i) for public housing grants under subsection
(a)(2), not more than $862,000,000, of which amount
not more than $264,000,000 shall be available for In-
dian housing;
‘‘(ii) for assistance under section 8, not more
than $2,800,000,000, of which not more than
$75,000,000 shall be available for assistance under
section 8 for family unification under subsection
(q)(3) of such section;
‘‘(iii) for assistance under section 5(j)(2) for sub-
stantial redesign, reconstruction, and redevelopment
of existing obsolete public housing projects and build-
ings, not more than $120,000,000;
‘‘(iv) for comprehensive improvement assistance
grants under section 14(k), not more than $3,241,000;
‘‘(v) for assistance under section 8 for property
disposition, not more than $800,000,000;
‘‘(vi) for assistance under section 8 for loan
management, not more than $155,000,000;
‘‘(vii) for extensions of contracts expiring under
section 8, $6,000,000,000 which shall be for 5-year
contracts for assistance under section 8 and vouchers
under section 8(o) (as in effect before the date of the
enactment of the Housing and Community Develop-
ment Act of 1994) and for loan management assist-
ance under such section;
‘‘(viii) for amendments to contracts under sec-
tion 8, such sums as may be necessary;
‘‘(ix) for public housing lease adjustments and
amendments, such sums as may be necessary;
‘‘(x) for assistance under section 18(g) for re-
placement housing for units demolished or disposed of
under section 18, not more than $273,600,000;
‘‘(xi) for conversions from leased housing con-
tracts under section 23 of this Act (as in effect imme-
diately before the enactment of the Housing and Com-
munity Development Act of 1974) to assistance under
section 8, such sums as may be necessary; and
‘‘(xii) for grants under section 24 for revitaliza-
tion of severely distressed public housing, not more
than $550,000,000.’’.
SEC. 102. RESIDENT REPRESENTATION IN PUBLIC HOUSING
AGENCIES.
(a) REPRESENTATION.—Section 2 of the United States
Housing Act of 1937 (42 U.S.C. 1437) is amended—
(1) by inserting ‘‘(a) POLICY.—’’ after ‘‘SEC. 2.’’;
(2) by striking the last sentence; and
(3) by adding at the end the following new sub-
section:
‘‘(b) GOVERNANCE OF PUBLIC HOUSING AGENCIES.—
‘‘(1) PROHIBITION.—No person may be barred
from serving on the board of directors or other similar
governing body of a local public housing agency be-
cause of his or her tenancy in a low-income project.
‘‘(2) RESIDENT
MEMBERSHIP.—Each public
housing agency shall have a board of directors or
other similar governing body, of which not less than
one-quarter of the members shall be residents of hous-
ing units administered or assisted by the agency.
‘‘(3) CONFLICTS OF INTEREST.—The Secretary
shall establish guidelines to prevent conflicts of inter-
est on the part of resident members of the board or
directors or governing body of a public housing agen-
cy. Such guidelines shall ensure that resident mem-
bers are able to participate fully in policy and finan-
cial matters within the control of the board or body.
‘‘(4) FULL PARTICIPATION.—No public housing
agency may limit or restrict the capacity or offices in
which a member of such board or body may serve on
such board or body solely because of the member’s sta-
tus as a resident member.
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘resident member’ means a member
of the board of directors or other similar governing
body of a public housing agency who is a resident of
a housing unit administered or assisted by the agen-
cy.’’.
(b) CONFORMING AMENDMENT.—The first sentence of
section 3(b)(6) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)(6)) is amended by inserting before the
period at the end the following: ‘‘and complies with the re-
quirements under section 2(b)’’.
SEC. 103. DETERMINATION OF MEDIAN INCOME.
(a) IN GENERAL.—Section 3(b)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended—
(1) in the 4th sentence—
(A) by striking ‘‘County’’ and inserting
‘‘and Rockland Counties’’; and
(B) by inserting ‘‘each’’ before ‘‘such
county’’; and
(2) in the last sentence—
(A) by striking ‘‘County’’ the 1st place it
appears and inserting ‘‘or Rockland Counties’’;
and
(B) by striking ‘‘County’’ the 2d place it
appears and inserting ‘‘and Rockland Counties’’.
(b) REGULATIONS AND EFFECTIVE DATE.—The Sec-
retary of Housing and Urban Development shall issue regu-
lations implementing the amendments made by subsection
(a) not later than the expiration of the 90-day period begin-
ning on the date of the enactment of this Act. The regula-
tions may not take effect until after September 30, 1993.
SEC. 104. DEFINITION OF FAMILIES.
The first sentence of section 3(b)(3)(B) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is
amended by inserting ‘‘or, in the case of disabled families,
other household members’’ after ‘‘spouses’’.
SEC. 105. FAMILY SELF-SUFFICIENCY PROGRAM.
(a) SCOPE.—Section 23(b)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437u(b)(3)) is amended
to read as follows:
‘‘(3) SCOPE.—Each public housing agency re-
quired to carry out a local program under this section
shall make assistance under the program available in
a fiscal year, subject only to the availability of
amounts for such assistance, to a number of families
who are assisted by the agency under section 8 or re-
side in public housing of the agency that is equivalent
to the sum of—
‘‘(A) the increase for such year in the num-
ber of families assisted under section 8 (as com-
pared to the preceding year); and
‘‘(B) the increase for such year in the num-
ber of public housing dwelling units made avail-
able by the agency (as compared to the preceding
year).’’.
(b) VOLUNTARY ESCROW SAVINGS ACCOUNT.—Section
23(d) of the United States Housing Act of 1937 (42 U.S.C.
1437u(d)) is amended—
(1) in paragraph (2)—
(A) in the 1st sentence, by striking ‘‘shall’’
and inserting ‘‘may’’;
(B) in the 2d sentence, by inserting after
‘‘area median income’’ the following: ‘‘that
choose to escrow amounts under this paragraph’’;
(C) in the 2d sentence, by striking ‘‘shall’’
and inserting ‘‘may’’; and
(D) by striking the 3d and 4th sentences
and inserting the following new sentence:
‘‘Amounts in the escrow account may be with-
drawn by the participating family upon the suc-
cessful performance of the obligations of the fam-
ily under the contract of participation entered
into by the family under subsection (c), as deter-
mined according to the specific goals and terms
included in the contract, and under other cir-
cumstances, as determined by the public housing
agency with the approval of the Secretary.’’; and
(2) by striking the 2d sentence of paragraph (3)
and inserting the following new sentence: ‘‘The plan
may require the establishment of escrow savings ac-
counts under paragraph (2), a description of the pro-
cedures for release of escrowed amounts, and any
other incentives designed by the public housing agen-
cy.’’.
(c) SERVICE COORDINATORS.—Section 23 of the Unit-
ed States Housing Act of 1937 (42 U.S.C. 1437u) is amend-
ed—
(1) in the last sentence of subsection (b)(1), by
inserting ‘‘under section 671 of the Housing and
Community Development Act of 1992’’ after ‘‘service
coordinator’’; and
(2) in subsection (h)—
(A) in paragraph (2), by striking ‘‘(includ-
ing the costs of employing a full-time service co-
ordinator)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) CONTRACT ADJUSTMENTS FOR SERVICE CO-
ORDINATORS.—If, in providing rental assistance
under section 8 of the United States Housing Act of
1937 for a public housing agency carrying out a local
program under this section in any fiscal year, the
Secretary increases the amount provided for the agen-
cy so that the number of families assisted by the agen-
cy in the year is greater than the number of families
assisted in the preceding year, the Secretary may in-
crease the amount annually provided for the agency
to provide for the costs of employing or otherwise re-
taining the services of one or more service coordina-
tors referred to in subsection (b)(1) of this section.
The Secretary may also, under any existing contract
for assistance under section 8, include the cost of em-
ploying such service coordinators to the extent that
amounts for amendments to such contracts are avail-
able.’’.
(d) REPEAL OF INCENTIVE AWARD ALLOCATION.—
Section 23 of the United States Housing Act of 1937 (42
U.S.C. 1437u) is amended—
(1) by striking subsection (i); and
(2) by redesignating subsections (j) through (o)
as subsections (i) through (n), respectively.
(e) TECHNICAL AMENDMENT.—Section 23(h)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437u(h)(2))
is amended by striking the last sentence.
SEC. 106. USE OF AMOUNTS IN HEADQUARTERS RESERVE.
(a) USE FOR FAIR HOUSING ACTIVITIES.—Section
213(d)(4)(A) of the Housing and Community Development
Act of 1974 (42 U.S.C. 1439(d)(4)(A)) is amended—
(1) in clause (iii), by striking ‘‘and’’ at the end;
(2) in clause (iv) by striking the period at the
end and inserting a semicolon; and
(3) by inserting after clause (iv) the following
new clauses:
‘‘(v) fair housing activities and cash payments,
in connection with the settlement of civil rights litiga-
tion (excluding litigation brought by an employee or
former employee of the Secretary); and
‘‘(vi) in the case of financial assistance under
the rental housing assistance program under section
8 of the United States Housing Act of 1937, provid-
ing assistance pursuant to section 8(q)(4) of such
Act.’’.
(b) AVAILABILITY OF PUBLIC HOUSING AND SECTION
8 AMOUNTS.—Section 5 of the United States Housing Act
of 1937 (42 U.S.C. 1437c) is amended by adding at the
end the following new subsection:
‘‘(m) USE OF AMOUNTS UNDER HEADQUARTERS RE-
SERVE.—Any amounts appropriated for public housing de-
velopment or assistance under section 8, that are retained
by the Secretary in accordance with section 213(d)(4)(A)
of the Housing and Community Development Act of 1974,
may be used for any of the activities specified in clauses
(i) through (v) of such section.’’.
(c) USE OF SECTION 8 ASSISTANCE FOR PORTABILITY
AND
NEIGHBORHOOD
CRIME
FIGHTERS.—Section
213(d)(4) of the Housing and Community Development Act
of 1974 is amended by adding at the end the following new
subparagraphs:
‘‘(C) Of any financial assistance for the rental housing
assistance program under section 8 of the United States
Housing Act of 1937 that is reserved pursuant to subpara-
graph (A), 5 percent shall be reserved for use only for the
purposes of providing assistance pursuant to section 8(o)(6)
of such Act.
‘‘(D) In addition to any financial assistance for the
rental housing assistance program under section 8 of the
United States Housing Act of 1937 that is reserved pursu-
ant to subparagraphs (A) and (C), the Secretary shall re-
serve not more than an additional $15,000,000 of any fi-
nancial assistance that becomes available under such pro-
gram during each of fiscal years 1995 and 1996 and such
additional amounts may be used only for the purpose under
clause (vi) of subparagraph (A).’’.
Subtitle B—Public and Indian
Housing
SEC. 111. PUBLIC HOUSING RENT REFORM.
(a) CEILING RENTS.—Section 3(a)(2) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is
amended—
(1) in subparagraph (A)—
(A) in clause (i), by striking ‘‘and approved
by the Secretary’’; and
(B) by striking clause (iii) and inserting
the following new clause:
‘‘(iii) at the election of such agency, is—
‘‘(I) not less than the average monthly
amount of debt service and operating expenses
attributable to dwelling units of similar size in
public housing projects owned and operated by
such agency;
‘‘(II) not less than the reasonable rental
value of the unit, as determined by the agency;
or
‘‘(III) not less than the local market rent
determined by the agency for comparable units of
similar size pursuant to the procedures pre-
scribed by the Secretary for determining rent
reasonableness under the program for rental cer-
tificate assistance under section 8(b).’’;
(2) by redesignating subparagraph (B) as sub-
paragraph (D); and
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraphs:
‘‘(B) Any ceiling rents established by a public housing
agency pursuant to this paragraph may be adjusted by the
agency.
‘‘(C)(i) Any ceiling rents established pursuant to
subclause (I) or (III) of subparagraph (A)(iii) shall take
effect at the discretion of the public housing agency.
‘‘(ii) Any ceiling rents established pursuant to
subclause (II) of subparagraph (A)(iii) may not take effect
before the issuance of regulations to carry out such
subclause, which shall be issued by the Secretary not later
than 180 days after the date of the enactment of the Hous-
ing and Community Development Act of 1994.
‘‘(iii) Before the effectiveness of regulations under
clause (ii), an agency shall determine the reasonable rental
value of unit for purposes of subclause (II) of subparagraph
(A)(iii) based upon (I) in a project of 50 or more units
for which such ceiling rents are being established, the 95th
percentile of rents paid for all units in the project, (II) in
a group of comparable projects for which such ceiling rents
are being established that consists of a total of 50 or more
units, all units in the projects, and (III) in a group of at
least 50 comparable units for which such ceiling rents are
being established, all units in the group.’’.
(b) EXCLUSIONS FROM ADJUSTED INCOME.—Section
3(b)(5) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(5)) is amended—
(1) in subparagraph (C)—
(A) by striking ‘‘and’’ before ‘‘(ii)’’; and
(B) by inserting before the semicolon at the
end the following; ‘‘; and (iii) to the extent docu-
mented by the family, the amount paid by the
family for health insurance coverage and any
other nonreimbursed out-of-pocket medical ex-
penses for any members of the family residing in
the household who, at the time, are not receiving
or approved to receive any assistance for health
care from the Federal Government or any State
government, except that this clause shall apply
only to families residing in public housing’’;
(2) in subparagraph (E), by inserting before the
semicolon at the end the following: ‘‘, except that in
the case of a family residing in public housing the
amount excluded under this subparagraph shall be 20
percent of the earned income of the family remaining
after excluding any amounts pursuant to subpara-
graph (H)’’;
(3) in subparagraph (F), by striking ‘‘and’’ at
the end;
(4) in subparagraph (G), by striking the period
at the end and inserting a semicolon; and
(5) by adding at the end the following new sub-
paragraphs:
‘‘(H) in the case of a family residing in public
housing, any earned income of any formerly depend-
ent child who is a member of the family residing in
the family’s dwelling unit during the period begin-
ning on the date of the first redetermination of the
rent for and family composition of the family that oc-
curs after the child reaches 18 years of age and end-
ing upon the date of the first such redetermination oc-
curring after he or she reaches 21 years of age; and
‘‘(I) in the case of 2-parent families with chil-
dren (as defined by the Secretary by regulation) who
reside in public housing, an amount (in addition to
any amounts excluded under subparagraphs (E) and
(H)) not to exceed 10 percent of any earned income
of the family.’’.
(c) EXCLUSION OF EARNED INCOME OF RESIDENTS
WHO OBTAIN EMPLOYMENT FROM RENT DETERMINA-
TIONS.—
(1) IN GENERAL.—Section 3(a) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)) is
amended—
(A) in the third sentence of paragraph (1),
by striking ‘‘paragraph (2)’’ and inserting
‘‘paragraphs (2) and (3)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) OPTIONAL EXCLUSION OF EARNED INCOME FROM
RENT DETERMINATION FOR FAMILIES PREVIOUSLY UNEM-
PLOYED.—Notwithstanding any other provision of law, a
public housing agency may provide (at the option of a pub-
lic housing agency) that, for all units in public housing
administered by the agency, the rent payable under sub-
section (b) for any such unit occupied by a family whose
income increases as a result of employment of a member
of the family who was previously unemployed for 1 or more
years, may not—
‘‘(A) be increased as a result of the increased in-
come due to such employment during the period that
begins upon the commencement of such employment
and ends upon the second annual redetermination of
the rent for and family composition of the family oc-
curring thereafter;
‘‘(B) during any 12-month period occurring dur-
ing the 36 months succeeding the expiration of the pe-
riod under subparagraph (A) for the family, be in-
creased due to the continued employment of such fam-
ily member by more than one-third of the difference
between (i) the rent being paid by the family upon
expiration of such period, and (ii) the amount of rent
that the family would pay but for the applicability
of this paragraph; and
‘‘(C) in any case, exceed the amount determined
under paragraph (1) or (2).’’;
(d) EXCLUSION FROM INCOME OF EARNINGS FROM
JOB TRAINING AND SELF-SUFFICIENCY PROGRAMS.—Sec-
tion 3 of the United States Housing Act of 1937 (42 U.S.C.
1437a) is amended—
(1) in subsection (b)(4), by inserting before the
period at the end the following: ‘‘, and except that the
earnings of and benefits to any public housing resi-
dent resulting from enrollment and participation in
a program providing employment training and sup-
portive services in accordance with the Family Sup-
port Act of 1988, section 22 of this Act, the Job
Training Partnership Act, Subtitle D of title IV of
the Cranston-Gonzalez National Affordable Housing
Act, part F of title IV of the Social Security Act, or
any comparable Federal, State, or local law shall not
be considered as income for the purposes of determin-
ing a limitation on the amount of rent paid by the
resident during the period that the resident enrolls
and participates in such program’’; and
(2) by striking the undesignated paragraph at
the end of subsection (c)(3) (as added by section
515(b) of the Cranston-Gonzalez National Affordable
Housing Act).
(e) APPLICABILITY.—Notwithstanding the amend-
ments made by this section, any resident of public housing
participating in the program under the authority contained
in the undesignated paragraph at the end of section 3(c)(3)
of the United States Housing Act of 1937 (as added by sec-
tion 515(b) of the Cranston-Gonzalez National Affordable
Housing Act (Public Law 101–625; 104 Stat. 4199)), as
such paragraph existed before the date of enactment of this
Act, shall continue to be governed by such authority.
(f) 
PERFORMANCE
FUNDING
SYSTEM.—Section
9(a)(3)(B) of the United States Housing Act of 1937 (42
U.S.C. 1437g(a)(3)(B)) is amended—
(1) in clause (iv), by striking ‘‘and’’ at the end;
(2) in (v), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following new
clause:
‘‘(vi) the amount of any reduced revenue result-
ing from the exclusion of income of public housing
residents pursuant to section 3(b)(5)(E) shall be cal-
culated and included in the amount of the payment
received under this section by the public housing
agency administering the public housing in which
such residents reside;’’.
(g) EFFECTIVE DATE.—The amendments under this
section shall take effect on the earlier of—
(1) date of the effectiveness of the regulations
under subsection (i); or
(2) the expiration of the 120-day period begin-
ning on the date of the enactment of this Act.
(h) REGULATIONS.—The Secretary shall issue any
final regulations necessary to implement the amendments
made by this section, which shall take effect not later than
the expiration of the 120-day period beginning on the date
of the enactment of this Act. The regulations shall be issued
after notice and opportunity for public comment in accord-
ance with the procedures under section 553 of title 5, United
States Code, applicable to substantive rules (notwithstand-
ing subsections (a)(2), (b)(B), and (d)(3) of such section).
SEC. 112. SALE OF PUBLIC HOUSING TO NON-PROFIT
INTERMEDIARIES.
The first sentence of section 5(h) of the United States
Housing Act of 1937 (42 U.S.C. 1437c(h)) is amended by
striking ‘‘its lower income tenants’’ and inserting: ‘‘low-in-
come families residing in public housing or to non-profit
organizations for resale to low-income families residing in
public housing’’.
SEC. 
113. 
MAJOR 
RECONSTRUCTION 
OF 
OBSOLETE
PROJECTS.
(a) ASSISTANCE
FOR
RECONSTRUCTION.—Section
5(j)(2) of the United States Housing Act of 1937 (42 U.S.C.
1437c(j)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘Notwith-
standing’’ and all that follows through ‘‘fiscal year’’
and inserting the following: ‘‘The Secretary may pro-
vide assistance under this paragraph’’;
(2) in subparagraph (C), by striking ‘‘reserved’’
and inserting ‘‘made available for assistance’’;
(3) in subparagraph (F)(i), by striking ‘‘reserved
or’’; and
SEC. 116. REPEAL OF LEAST-COST LIMITATION ON PUBLIC
HOUSING NEW CONSTRUCTION.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended by striking subsection (h).
SEC. 117. REGULATORY RELIEF AND PAPERWORK REDUC-
TION FOR HIGH-PERFORMING PUBLIC HOUS-
ING AGENCIES.
(a) WAIVER OF RULES AND REPORTS.—Section 6(j)
of the United States Housing Act of 1937 (42 U.S.C.
1437d(j)) is amended by adding at the end the following
new paragraph:
‘‘(5)(A) Except as provided in subparagraph (B), the
Secretary may, for public housing agencies designated pur-
suant to this subsection as high performing public housing
agencies with respect to a fiscal year, waive (by regulation
issued under subparagraph (C)) the applicability for the
ensuing fiscal year of regulatory requirements otherwise ap-
plicable to public housing agencies to the extent appro-
priate, as determined by the Secretary, to facilitate more
efficient operation of such agencies.
‘‘(B) The Secretary may not waive the applicability
of any provision—
‘‘(i) limiting occupancy of public housing to low-
income families;
‘‘(ii) under section 18 requiring replacement of
units in the case of demolition or disposition;
‘‘(iii) under the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970;
‘‘(iv) that prohibits, or the purpose of which is
to protect persons against, discrimination on the
basis of race, color, religion, sex, marital status, na-
tional origin, age, or handicap, or that relates to fair
housing or equal opportunity; or
‘‘(v) under chapter 75 of title 31, United States
Code.
‘‘(C) During fiscal year 1995, the Secretary shall pub-
lish in the Federal Register a proposed rule providing for
the waiver of the regulations to be waived pursuant to this
paragraph and identifying such regulations. The Secretary
shall publish such proposed rule at a time determined by
the Secretary to be sufficient to provide notice and an op-
portunity for public comment before issuance of a final rule
under this paragraph. Such final rule shall be issued not
later than August 31, 1995.’’.
(b) RETENTION BY PHA’S OF SAVINGS FROM EFFI-
CIENT MANAGEMENT.—Section 6(e) of the United States
Housing Act of 1937 (42 U.S.C. 1437d(e)) is amended to
read as follows:
‘‘(e) TREATMENT OF SAVINGS.—
‘‘(1) IN GENERAL.—Any income generated by a
high-performing public housing agency that exceeds
the income estimated by the agency to be generated,
according to the agency’s annual operating budget,
shall be excluded in subsequent years in calculating
the amount of the operating subsidy provided under
section 9 to the high-performing public housing agen-
cy. Such savings shall be retained by the agency for
other housing purposes.
‘‘(2) HIGH-PERFORMING PUBLIC HOUSING AGEN-
CY.—For purposes of paragraph (1), the term ‘high-
performing public housing agency’ means, with re-
spect to a year, a public housing agency that has been
designated pursuant to subsection (j) as a high per-
forming public housing agency for the last fiscal year
ending before the commencement of such year.’’.
SEC. 118. STANDARDS FOR LEASE TERMINATION AND EXPE-
DITED GRIEVANCE PROCEDURE.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended—
(1) in subsection (k), in the first sentence of the
matter following paragraph (6), by striking ‘‘crimi-
nal’’ the first place it appears; and
(2) in subsection (l)(5), by striking ‘‘criminal’’
the first place it appears.
SEC. 119. AVAILABILITY OF CRIMINAL CONVICTION INFOR-
MATION FOR SCREENING AND EVICTIONS.
Section 6 of the United States Housing Act of 1937
(42 U.S.C. 1437d) is amended by adding at the end the
following new subsection:
‘‘(q) AVAILABILITY OF CRIMINAL RECORDS.—
‘‘(1) AVAILABILITY.—Notwithstanding any other
provision of Federal, State, or local law, upon the re-
quest of any public housing agency, the National
Crime Information Center, police departments, and
any other law enforcement entities shall provide in-
formation to the agency regarding the criminal con-
victions of applicants for, or residents of, public hous-
ing for the purpose of applicant screening, lease en-
forcement, and eviction. A public housing agency may
pay a reasonable fee for such information.
‘‘(2) 
CONTENT.—The 
information 
provided
under paragraph (1) shall include information re-
garding convictions for any felony and convictions for
certain misdemeanors, including crimes of violence,
destruction of property, use, sale, or distribution of
controlled substances, illegal possession or use of fire-
arms, and hate crimes. Such information may not in-
clude information regarding any criminal conviction
of such an applicant or resident for any act (or fail-
ure to act) occurring before the applicant or resident
reached 18 years of age or information regarding any
criminal conviction of such an applicant or resident
occurring more than 10 years before the request under
this subsection is made by the public housing agency.
‘‘(3) USE.—A public housing agency receiving
information under this subsection may use such infor-
mation only for the purposes provided in this sub-
section and such information may not be disclosed to
any person who is not an officer or employee of the
public housing agency. The Secretary shall, by regula-
tion, establish procedures necessary to ensure that in-
formation provided to a public housing agency under
this subsection is used, and confidentiality of such in-
formation is maintained, as required under this sub-
section.
‘‘(4) PENALTY.—Any person who knowingly and
willfully requests or obtains any information concern-
ing an applicant for, or resident of, public housing
pursuant to the authority under this subsection under
false pretenses, or any person who knowingly and
willfully discloses any such information in any man-
ner to any individual not entitled under any law to
receive it, shall be guilty of a misdemeanor and fined
not more than $5,000. The term ‘person’ as used in
this paragraph shall include an officer or employee of
any public housing agency.
‘‘(5) CIVIL ACTION.— Any applicant for, or resi-
dent of, public housing affected by (A) a negligent or
knowing disclosure of information referred to in this
section about such person by an officer or employee
of any public housing agency, which disclosure is not
authorized by this subsection, or (B) any other neg-
ligent or knowing action that is inconsistent with this
subsection, may bring a civil action for damages and
such other relief as may be appropriate against any
officer or employee of any public housing agency re-
sponsible for such unauthorized action. The district
court of the United States in the district in which the
affected applicant or resident resides, in which such
unauthorized action occurred, or in which the officer
or employee alleged to be responsible for any such un-
authorized action resides, shall have jurisdiction in
such matters. Appropriate relief that may be ordered
by such district courts shall include reasonable attor-
ney’s fees and other litigation costs.’’.
SEC. 120. DESIGNATED HOUSING.
Section 7(e)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437e(e)(1)) is amended—
(1) in the first sentence, by striking ‘‘and the
Secretary approves an application under this sub-
section for such designation’’; and
(2) in the second sentence, by inserting before the
period at the end the following: ‘‘, which shall provide
that an application for a project (or portion of a
project) shall be submitted and considered for ap-
proval in conjunction with submission and approval
of the allocation plan for the project (or portion)
under section 7(f)’’.
SEC. 121. PUBLIC HOUSING OPERATING SUBSIDIES.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
9(c) of the United States Housing Act of 1937 (42 U.S.C.
1437g(c)) is amended—
(1) in paragraph (1), by striking ‘‘There’’ and
all that follows and inserting the following new sen-
tence: ‘‘There are authorized to be appropriated for
purposes of providing annual contributions under
this section $3,146,000,000 for fiscal year 1995 and
$3,208,000,000 for fiscal year 1996.’’.
(2) in paragraph (2), by striking ‘‘1993 and
1994’’ and inserting ‘‘1995 and 1996’’; and
(3) in paragraph (3), by striking ‘‘1993 and
1994’’ and inserting ‘‘1995 and 1996’’.
(b) ELIGIBILITY OF SEVERELY DISTRESSED PUBLIC
HOUSING.—Section 9(a)(2) of the United States Housing
Act of 1937 is amended—
(1) by striking ‘‘one’’ and inserting ‘‘that is
(A)’’; and
(2) by inserting after ‘‘section 8,’’ the following:
‘‘or (B) assisted under section 24 or the program au-
thorized under (i) the third paragraph of the head,
HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EV-
ERYWHERE GRANTS (HOPE GRANTS), of title II of the
Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Ap-
propriations Act, 1993, or (ii) the head, SEVERELY
DISTRESSED PUBLIC HOUSING PROJECTS, of title II of
the Department of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Ap-
propriations Act, 1994;’’.
(c) INCLUDED COSTS.—Section 9(a)(3)(B) of the Unit-
ed States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B)),
as amended by the preceding provisions of this Act, is fur-
ther amended by adding at the end the following new
clauses:
‘‘(vii) the amount of the payment received under
this section by public housing agencies shall be cal-
culated to include—
‘‘(I) benefits (including health care and
pensions, annuities, and other retirement bene-
fits) of employees of the agency;
‘‘(II) the amount of any reduced revenue re-
sulting from the amendments made by sub-
sections (b) and (c) of section 573 of the Cran-
ston-Gonzalez National Affordable Housing Act;
‘‘(III) maintenance deferred;
‘‘(IV) utility costs attributable to air condi-
tioning; and
‘‘(V) any increased costs of security for the
public housing, attributable to increases in the
number of incidents of vandalism and crime in
the housing; and
‘‘(viii) the amount of the payment received under
this section by a public housing agency for a fiscal
year shall be determined taking into consideration the
actual expenses for the agency for the preceding fiscal
year.’’.
SEC. 122. ELIGIBLE USES OF EMERGENCY MODERNIZATION
FUNDS.
Section 14(k)(1) of the United States Housing Act of
1937 (42 U.S.C. 1437l(k)(1)) is amended—
(1) 
in 
the 
first 
sentence, 
by 
striking
‘‘$75,000,000’’ and inserting ‘‘$50,000,000’’; and
(2) by adding at the end the following new sen-
tence: ‘‘The Secretary shall make any amounts re-
served under this paragraph for any fiscal year that
remain unobligated on September 1 of such fiscal
year available for modernization needs in connection
with the settlement of litigation and desegregation of
public housing. Of the amounts reserved each year
under this paragraph, the Secretary shall make avail-
able to the Inspector General of the Department of
Housing and Urban Development not more than
$5,000,000 for cost in connection with efforts to com-
bat violent crime in public housing. Using amounts
made available pursuant to the preceding sentence
during fiscal years 1995 and 1996, the Secretary
shall provide amounts in each such fiscal year for the
continuation of the drug elimination activities under
Project 
Nos. 
IA05PO98003004 
and
IA05DEP0980193.’’.
SEC. 123. USE OF MODERNIZATION FUNDS FOR REPLACE-
MENT HOUSING.
(a) IN GENERAL.—Section 14 of the United States
Housing Act of 1937 (42 U.S.C. 1437l) is amended by add-
ing at the end the following new subsection:
‘‘(q) USE OF AMOUNTS FOR REPLACEMENT HOUS-
ING.—
‘‘(1) AUTHORITY.—A public housing agency may
use assistance under this section to provide replace-
ment housing as required by section 18 by developing
additional housing under this Act, in accordance with
requirements applicable to the development of public
housing, but only if the cost of providing such housing
(not including costs of demolition) is more cost effec-
tive than the cost of modernization of the housing pro-
posed to be replaced.
‘‘(2) LIMITATION
ON
AMOUNT.—In any fiscal
year, a public housing agency may not use more than
50 percent of any assistance provided to the agency
under this section for the fiscal year for providing re-
placement housing pursuant to this section.
‘‘(3) REQUIREMENTS.—A public housing agency
may use assistance under this section as provided in
subsection (a) only if the replacement of units is in-
cluded in the replacement plan of the agency.’’.
(b) AVAILABLE
REPLACEMENT
HOUSING.—Section
14(c)(1) of the United States Housing Act of 1937 is
amended by inserting before the semicolon the following:
‘‘or, only in the case of assistance used as provided under
subsection (q), housing or units in housing owned (or leased
for a period to be determined by the Secretary) by a part-
nership of a public housing agency and other entity in
which the agency has a controlling interest’’.
SEC. 124. DEMOLITION AND DISPOSITION OF PUBLIC
HOUSING.
Section 18 of the United States Housing Act of 1937
(42 U.S.C. 1437p) is amended to read as follows:
‘‘DEMOLITION AND DISPOSITION OF PUBLIC HOUSING
‘‘SEC. 18. (a) CONDITION OF HOUSING.—The Sec-
retary may approve an application by a public housing
agency for permission to demolish or dispose of a public
housing project or a portion of a public housing project only
if the Secretary has determined that—
‘‘(1) in the case of—
‘‘(A) an application proposing demolition
of a public housing project or a portion of a pub-
lic housing project, the project or portion of the
project is obsolete as to physical condition, loca-
tion, or other factors, and it is more cost effective
to replace the project or portion of the project
than to rehabilitate the project or portion of the
project; or
‘‘(B) an application proposing the demoli-
tion of only a portion of a project, the demolition
will help to assure the remaining useful life of
the remaining portion of the project;
‘‘(2) in the case of an application proposing dis-
position of real property of a public housing agency
by sale or other transfer—
‘‘(A)(i) the property’s retention is not in the
best interests of the tenants or the public housing
agency because (I) developmental changes in the
area surrounding the project adversely affect the
health or safety of the tenants or the feasible op-
eration of the project by the public housing agen-
cy, (II) disposition will allow the acquisition,
development, or rehabilitation of other properties
which will be more efficiently or effectively oper-
ated as low-income housing and which will pre-
serve the total amount of low-income housing
stock available in the community or housing suf-
ficient to address the needs of the community as
described in the comprehensive housing afford-
ability strategy under section 105 of the Cran-
ston-Gonzalez National Affordable Housing Act,
or (III) because of other factors which the Sec-
retary determines are consistent with the best in-
terests of the tenants and public housing agency
and which are not inconsistent with other provi-
sions of this Act; and
‘‘(ii) for property other than dwelling units,
the property is excess to the needs of a project or
the disposition is incidental to, or does not inter-
fere with, continued operation of a project; and
‘‘(B) the net proceeds of the disposition will
be used for (i) the payment of development costs
for the replacement housing and for the retire-
ment of outstanding obligations issued to finance
original development or modernization of the
project, which, in the case of scattered-site hous-
ing of a public housing agency, shall be in an
amount that bears the same ratio to the total of
such costs and obligations as the number of units
disposed of bears to the total number of units of
the project at the time of disposition, and (ii) to
the extent that any proceeds remain after the ap-
plication of proceeds in accordance with clause
(i), the provision of housing assistance for low-
income families through such measures as mod-
ernization of low-income housing, or the acquisi-
tion, development, or rehabilitation of other
properties to operate as low-income housing; or
‘‘(3) in the case of an application proposing
demolition or disposition of any portion of a public
housing project, assisted at any time under section
5(j)(2)—
‘‘(A) such assistance has not been provided
for the portion of the project to be demolished or
disposed within the 10-year period ending upon
submission of the application; or
‘‘(B) the property’s retention is not in the
best interest of the tenants or the public housing
agency because of changes in the area surround-
ing the project or other circumstances of the
project, as determined by the Secretary.
‘‘(b) TENANT
INVOLVEMENT
AND
REPLACEMENT
HOUSING.—The Secretary may approve an application or
furnish assistance under this section or under this Act only
if the following requirements are met:
‘‘(1) TENANT
CONSULTATION
AND
EMPLOY-
MENT.—The application from the public housing
agency—
‘‘(A) has been developed in consultation
with tenants and tenant councils, if any, who
will be affected by the demolition or disposition;
‘‘(B) includes a plan to employ public hous-
ing tenants in construction or rehabilitation to
the extent practicable, pursuant to section 3 of
the Housing and Urban Development Act of
1968; and
‘‘(C) contains a certification by appropriate
local government officials that the proposed ac-
tivity is consistent with the applicable com-
prehensive housing affordability strategy under
section 105 of the Cranston-Gonzalez National
Affordable Housing Act.
‘‘(2) RELOCATION ASSISTANCE.—All tenants to
be relocated as a result of the demolition or disposi-
tion will be provided assistance by the public housing
agency and are relocated to other decent, safe, sani-
tary, and affordable housing, which is, to the maxi-
mum extent practicable, housing of their choice, in-
cluding housing assisted under section 8 of this Act.
‘‘(3) REPLACEMENT HOUSING.—The public hous-
ing agency has developed a plan that provides for ad-
ditional decent, safe, sanitary, and affordable dwell-
ing unit for each public housing dwelling unit to be
demolished or disposed under such application or pro-
vides additional dwelling units sufficient to address
the needs and demographic characteristics of the num-
ber of applicants on the waiting list of the agency
equal to the number of units to be demolished or dis-
posed of or the needs of the community as described
in the comprehensive housing affordability strategy
under section 105 of the Cranston-Gonzalez National
Affordable Housing Act, which plan—
‘‘(A) provides for the provision of such ad-
ditional dwelling units through—
‘‘(i) the acquisition or development of
additional public housing dwelling units,
which may be units in housing owned (or
leased for a period to be determined by the
Secretary) by a partnership of a public
housing agency and other entity in which
the agency has a controlling interest;
‘‘(ii) the use of 15-year project-based
assistance under section 8;
‘‘(iii) in the case of an application
proposing demolition or disposition of 200
or more units, the use of tenant-based as-
sistance under section 8 having a term of
not less than 5 years;
‘‘(iv) units acquired or otherwise pro-
vided for homeownership (including cooper-
ative and condominium interests) by public
housing residents under section 5(h), sub-
title B or C of title IV of the Cranston-Gon-
zalez National Affordable Housing Act, or
other programs for homeownership that
have program requirements substantially
equivalent to the requirements established
under section 605 of the Housing and Com-
munity Development Act of 1987;
‘‘(v) affordable housing homeownership
units assisted under title II of the Cranston-
Gonzalez National Affordable Housing Act
and sold to public housing residents;
‘‘(vi) rental units that are (I) assisted
under title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (notwith-
standing section 212(d)(2) of such Act), or
(II) assisted under a State or local rental
assistance program that provides for rental
assistance over a term of not less than 15
years that is comparable in terms of eligi-
bility and contribution to rent to assistance
under section 8, except that this subclause
shall only apply in cases provided under
subparagraph (C);
‘‘(vii) housing assisted by a tax credit
under section 42 of the Internal Revenue
Code;
‘‘(viii) housing acquired from the Reso-
lution Trust Corporation or the Federal De-
posit Insurance Corporation;
‘‘(ix) housing acquired under section
203 of the Housing and Community Devel-
opment Amendments of 1978;
‘‘(x) other manners approved by the
Secretary; or
‘‘(xi) any combination of such methods;
‘‘(B) in the case of an application propos-
ing demolition or disposition of 200 or more
units, shall provide that—
‘‘(i) not less than 50 percent of such
additional dwelling units shall be provided
through the acquisition or development of
additional 
dwelling 
units 
or 
through
project-based assistance; and
‘‘(ii) not more than 50 percent of such
additional dwelling units shall be provided
through tenant-based assistance under sec-
tion 8 having a term of not less than 5
years;
‘‘(C) if it provides for the use of tenant-
based assistance provided under section 8 or oth-
erwise, may be approved—
‘‘(i) only after a finding by the Sec-
retary that replacement with project-based
assistance is not feasible, and the supply of
private rental housing actually available to
those who would receive such assistance
under the plan is sufficient for the total
number of families in the community as-
sisted with tenant-based assistance after im-
plementation of the plan and that such sup-
ply is likely to remain available for the full
term of the assistance; and
‘‘(ii) only if such finding is based on
objective information, which shall include
rates of participation by landlords in the
section 8 program, size, conditions and rent
levels of available rental housing as com-
pared to section 8 standards, the supply of
vacant existing housing meeting the section
8 housing quality standards with rents at
or below the fair market rental, the number
of eligible families waiting for public hous-
ing or housing assistance under section 8,
and the extent of discrimination against the
types of individuals or families to be served
by the assistance;
‘‘(D) may provide that all or part of such
additional dwelling units may be located outside
the jurisdiction of the public housing agency (in
this subparagraph referred to as the ‘original
agency’) if—
‘‘(i) the location is in the same housing
market area as the original agency, as de-
termined by the Secretary; and
‘‘(ii) the plan contains an agreement
between the original agency and the public
housing agency in the alternate location or
other public or private entity that will be
responsible for providing the additional
units in the alternate location that such al-
ternate agency or entity will, with respect
to the dwelling units involved—
‘‘(I) provide the dwelling units in
accordance with subparagraph (A);
‘‘(II) complete the plan on sched-
ule in accordance with subparagraph
(F);
‘‘(III) meet the requirements of
subparagraph (G) of this paragraph
and the maximum rent provisions of
subparagraph (H);
‘‘(IV) not impose a local residency
preference on any resident of the juris-
diction of the original agency for pur-
poses of admission to any such units;
and
‘‘(V) allow that preference for ad-
mission to any such additional units
may be provided to residents of the se-
verely distressed public housing dwell-
ing units replaced under this subpara-
graph pursuant to section 24;
‘‘(E) includes a schedule for completing the
plan within a period consistent with the size of
the proposed demolition or disposition and re-
placement plan, which—
‘‘(i) shall not exceed 6 years, except
that the Secretary may extend the schedule
to not more than 10 years if the Secretary
determines that good cause exists to extend
the implementation of the replacement plan
under this subsection; and
‘‘(ii) the demolition or disposition
under the plan can occur in phases nec-
essary to provide for relocation of tenants
under paragraph (2);
‘‘(F) includes a method of ensuring that the
same number of individuals and families will be
provided housing;
‘‘(G) provides for the payment of the reloca-
tion expenses of each tenant to be displaced and
ensures that the rent paid by the tenant follow-
ing relocation will not exceed the amount per-
mitted under this Act; and
‘‘(H) prevents the taking of any action to
demolish or dispose of any unit until the tenant
of the unit is relocated to decent, safe, sanitary,
and affordable housing; and
‘‘(I) permits the Secretary to intervene and
take any actions necessary to complete the plan
if the public housing agency fails, without good
cause, to carry out its obligations under the
plan.
‘‘(c) LIMITATION ON DEMOLITION AND EXEMPTION.—
‘‘(1) MAXIMUM PERCENTAGE.—Notwithstanding
any other provision of this section, in any 5-year pe-
riod a public housing agency may demolish not more
than the lesser of 5 dwelling units or 5 percent of the
total dwelling units owned and operated by the public
housing agency, without providing an additional
dwelling unit for each such public housing dwelling
unit to be demolished, but only if the space occupied
by the demolished unit is used for meeting the service
or other needs of public housing residents.
‘‘(2) SITE AND NEIGHBORHOOD STANDARDS EX-
EMPTION.—Notwithstanding any other provision of
law, a replacement plan under subsection (b)(3) may
provide for demolition of public housing units and re-
placement of such units on site or in the same neigh-
borhood if the number of replacement units provided
in the same neighborhood is fewer than the number of
units demolished and the balance of replacement units
are provided elsewhere in the jurisdiction or pursuant
to subsection (b)(3)(D).
‘‘(d) TREATMENT OF REPLACEMENT UNITS.—With re-
spect to any dwelling units developed, acquired, or leased
by a public housing agency pursuant to a replacement plan
under subsection (b)(3)—
‘‘(1) assistance may be provided under section 9
for such units; and
‘‘(2) such units shall be available for occupancy,
operated and managed in the manner required for
public housing, and shall be subject to the other re-
quirements applicable to public housing dwelling
units.
‘‘(e) APPROVAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—The Secretary shall notify a
public housing agency submitting an application
under this section for demolition or disposition and
replacement of a public housing project or portion of
a project of the approval or disapproval of the appli-
cation not later than 60 days after receiving the ap-
plication. If the Secretary does not notify the public
housing agency as required under this paragraph or
paragraph (2), the application shall be considered to
have been approved.
‘‘(2) DISAPPROVAL AND RESUBMISSION.—If the
Secretary disapproves an application, the Secretary
shall specify in the notice of disapproval the reasons
for the disapproval and the agency may resubmit the
application as amended or modified.
‘‘(3) ANNUAL REPORT.—The Secretary shall sub-
mit a report to the Congress annually describing for
the year the applications under this section approved
and disapproved, the number, general condition, and
location of units demolished or disposed of, and the
number, general condition, location and method of
provision of units of replacement housing provided
pursuant to this section.
‘‘(f) ACTION BEFORE APPROVAL OF APPLICATION.—
‘‘(1) PROHIBITED
ACTION.—A public housing
agency shall not take any action to demolish or dis-
pose of a public housing project or a portion of a pub-
lic housing project without obtaining the approval of
the Secretary and satisfying the conditions specified
in subsections (a) and (b).
‘‘(2) ALLOWABLE RELOCATION.—A public hous-
ing agency may relocate tenants of public housing
into other dwelling units before the approval of an
application under this section for demolition or dis-
position or prior to implementing a plan for mod-
ernization under section 14 or 24, if units to be de-
molished or disposed of are not decent, safe, and sani-
tary, or if the units to be rehabilitated can not be
maintained cost-effectively in a decent, safe, and sani-
tary condition.
‘‘(g) ASSISTANCE FOR REPLACEMENT HOUSING.—The
Secretary may provide assistance under this subsection
for—
‘‘(1) providing replacement public housing units
pursuant to subsection (b)(3)(A) for units demolished
or disposed of pursuant to this section; and
‘‘(2) providing assistance under section 8 for re-
placement housing pursuant to subsection (b)(3)(A)
for units demolished or disposed of pursuant to this
section.
‘‘(h) INAPPLICABILITY TO PUBLIC HOUSING HOME-
OWNERSHIP PROGRAM.—The provisions of this section shall
not apply to the disposition of a public housing project in
accordance with an approved homeownership program
under title III of this Act.
‘‘(i) EXCEPTION TO REPLACEMENT RULE.—
‘‘(1) REQUIREMENTS
FOR
WAIVER.—The Sec-
retary shall waive the applicability of the provisions
of subsection (b)(3) with respect to any application
under this section by a public housing agency for the
demolition or disposition of public housing dwelling
units if—
‘‘(A) the Secretary determines, based on in-
formation provided by the public housing agency
in the application and the request under para-
graph (2), that—
‘‘(i) the requirements under subsection
(b)(3) are preventing or interfering with the
development or acquisition of new public
housing dwelling units by the agency;
‘‘(ii) the long-term goal of the agency
in requesting the waiver under this sub-
section is to increase the number of habit-
able public housing dwelling units of the
agency;
‘‘(iii) maintaining and operating the
dwelling units to be demolished or disposed
of is not cost effective; and
‘‘(iv) sufficient financial assistance is
not, and will not be, available to the public
housing agency to rehabilitate or replace all
or some of the units;
‘‘(B) the Secretary determines that replac-
ing the dwelling units to be demolished or dis-
posed under the application is unnecessary be-
cause other affordable housing is available in the
area in which the units are located, and in mak-
ing such determination the Secretary shall con-
sider the assessment submitted by the public
housing agency under paragraph (2)(C); and
‘‘(C) the public housing agency requests a
waiver under this subsection in accordance with
the requirements under paragraph (2).
‘‘(2) REQUEST FOR WAIVER.—To be eligible for
a waiver under this subsection, a public housing
agency shall submit to the Secretary a request for a
waiver under this subsection that includes—
‘‘(A) a comprehensive plan for demolition,
disposition, and replacement that describes addi-
tional dwelling units to be made available by the
public housing agency;
‘‘(B) an identification of the dwelling units
for which the waiver is requested; and
‘‘(C) an assessment of the need of replacing
such dwelling units including the unit size, age,
general condition, and length of time such units
have been vacant, the condition of the neighbor-
hood in which the dwelling units are located,
and the availability of dwelling units affordable
to low-income families within the jurisdiction in
which the dwelling units are located, during the
implementation of the replacement plan.
‘‘(3) SUBMISSION TO SECRETARY.—A request for
a waiver under this subsection may be submitted at
any time. The request shall be submitted to the Sec-
retary by certified mail or any other equivalent
means that provides notification to the public housing
agency making the request of the date of receipt by
the Secretary.
‘‘(4) NOTICE OF DISPOSITION OF REQUEST.—Ex-
cept as provided in paragraph (5), the Secretary shall
notify a public housing agency requesting a waiver
under this section of the approval or disapproval of
the request not later than 45 days after receiving the
request. If the Secretary does not notify the public
housing agency as required under this paragraph or
paragraph (5), the request for a waiver shall be con-
sidered to have been approved.
‘‘(5) REQUEST FOR ADDITIONAL INFORMATION.—
If the Secretary determines that more information is
needed to make the determinations under paragraph
(1) than has been provided by the public housing
agency, the Secretary shall notify the agency in writ-
ing not later 30 days after receiving the request for
the waiver that additional information is necessary.
Such notice shall describe specifically the additional
information required for the determinations and es-
tablish a deadline for the submission of the informa-
tion by the agency, which shall be determined based
on the difficulty of obtaining the information re-
quested. If the agency submits such additional infor-
mation requested before the deadline established in the
notice under this paragraph, the Secretary shall no-
tify the agency requesting the waiver that the request
is approved or disapproved not later than 30 days
after the submission of such additional information.
‘‘(6) STATEMENT OF REASONS FOR DENYING OR
APPROVING REQUEST.—The Secretary shall include,
in each notice under paragraph (4) or (5) of the de-
nial or approval of a request for a waiver under this
subsection, the specific reasons for denying or approv-
ing the request. The denial of any request for a waiv-
er for public housing dwelling units shall not preju-
dice the consideration of any other subsequent request
for such a waiver for any of such dwelling units.’’.
SEC. 125. PUBLIC HOUSING RESIDENT OPPORTUNITY.
Section 20 of the United States Housing Act of 1937
(42 U.S.C. 1437r) is amended—
(1) by striking the section heading and inserting
the following new section heading:
‘‘RESIDENT OPPORTUNITY PROGRAM’’;
(2) in the first 2 sentences of subsection (b), by
striking ‘‘resident management program’’ each place
it appears and inserting ‘‘resident opportunity pro-
gram’’; and
(3) in subsection (f)—
(A) by striking ‘‘RESIDENT MANAGEMENT
TECHNICAL ASSISTANCE AND TRAINING’’ and in-
serting ‘‘RESIDENT OPPORTUNITY ASSISTANCE’’;
(B) in paragraph (1), by adding at the end
the following new sentence: ‘‘In addition, the
Secretary may provide financial assistance to
resident management corporations or resident
councils for activities sponsored by resident orga-
nizations for job training, economic development,
security, and other self-sufficiency activities be-
yond those related to the management of public
housing.’’;
(C) 
in 
paragraph 
(2), 
by 
striking
‘‘$100,000’’ and inserting ‘‘$250,000’’;
(D) by striking paragraph (3) and insert-
ing the following new paragraph:
‘‘(3) FUNDING.—Of any amounts made available
for financial assistance under section 14, the Sec-
retary may use to carry out this subsection
$25,000,000 for fiscal year 1995 and $25,000,000 for
fiscal year 1996.’’;
(E) 
by 
redesignating 
paragraphs 
(2)
through (4) as paragraphs (3) through (5), re-
spectively;
(F) by inserting after paragraph (1) the fol-
lowing new paragraph:
‘‘(2) OTHER
USES
OF
ASSISTANCE.—The Sec-
retary may use amounts available to carry out this
subsection to enter into contracts with—
‘‘(A) various entities for monitoring, eval-
uation, technical assistance, and information
dissemination in connection with activities
under this subsection; and
‘‘(B) resident organizations and public or
private entities for activities that support the
economic development and increased self-suffi-
ciency of public housing residents.
Eligible activities related to economic development
and self-sufficiency may include programs for coun-
seling, treatment for substance abuse, child care, re-
medial education, job training, and development of
resident businesses.’’.
SEC. 126. PUBLIC HOUSING FAMILY INVESTMENT CENTERS.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
22(k) of the United States Housing Act of 1937 (42 U.S.C.
1437t(k)) is amended to read as follows:
‘‘(k) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$50,000,000 for fiscal year 1995 and $50,000,000 for fiscal
year 1996.’’.
(b) PURPOSES.—Section 22(a) of the United States
Housing Act of 1937 (42 U.S.C. 1437t(a)) is amended—
(1) in the matter preceding paragraph (1) by in-
serting before ‘‘to provide’’ the following: ‘‘to provide
job training and employment services to public hous-
ing residents in connection with public and private
sector jobs generated by construction, modernization,
maintenance, and supportive service activities of pub-
lic housing and other housing projects and programs
assisted by the Department of Housing and Urban
Development and’’;
(2) by redesignating paragraphs (2), (3), and
(4), as paragraphs (3), (4), and (5), respectively;
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) operating job banks, assisting employers to
develop training and apprenticeship programs, assist-
ing businesses of public housing residents, and other
employment-related activities;’’; and
(4) by adding at the end the following new flush
sentence:
‘‘The provision of services under this section shall be consid-
ered the provision of housing for purposes of section 3 of
the Housing and Urban Development Act of 1968.’’.
(c) ELIMINATION OF SUPPORTIVE SERVICES CAP.—
Section 22(c)(4) of the United States Housing Act of 1937
is amended by striking ‘‘not more than 15 percent of’’.
(d) ECONOMIC OPPORTUNITY ACTIVITIES.—Section 22
of the United States Housing Act of 1937 is amended—
(1) by striking subsection (b) and inserting the
following new subsection:
‘‘(b) GRANT AUTHORITY.—The Secretary may make
grants to public housing agencies to adapt and provide sites
in or near public housing for providing services to help fam-
ilies residing in the public housing gain better access to edu-
cational and job opportunities to achieve self-sufficiency
and independence, and to provide such services. Assistance
under this section may be made available only to public
housing agencies that demonstrate to the satisfaction of the
Secretary that supportive services (as such term is defined
in subsection (j)) will be made available. Facilities assisted
under this section shall be located in or near the premises
of public housing.’’;
(2) in subsection (c)(3), by striking ‘‘the renova-
tion of facilities located near the premises of 1 or
more public housing projects’’ and inserting the fol-
lowing: ‘‘the acquisition of facilities located near the
premises of 1 or more public housing projects, the ac-
quisition and renovation of such facilities, or the ren-
ovation of such facilities,’’; and
(3) in subsection (j)—
(A) in the first sentence, by inserting before
the period at the end the following: ‘‘(including
opportunities under a Family Self-Sufficiency
program under section 23 of this Act, subtitle D
of title IV of the Cranston-Gonzalez National Af-
fordable Housing Act, and the Job Training
Partnership Act) and to facilitating participa-
tion in such opportunities’’;
(B) in paragraph (5), by striking ‘‘and’’ at
the end;
(C) by redesignating paragraphs (4), (5),
and (6) as paragraphs (5), (6), and (15), respec-
tively; and
(D) by inserting after paragraph (3) the fol-
lowing new paragraph:
‘‘(4) English language education for persons hav-
ing no or limited proficiency in English;’’; and
(E) by inserting after paragraph (6) (as so
redesignated) the following new paragraphs:
‘‘(7) providing a job bank of available employ-
ment positions;
‘‘(8) assisting contractors, contractor associa-
tions, and joint labor-management committees to de-
velop and assist training and apprenticeship pro-
grams;
‘‘(9) funding start-up costs of business employ-
ing, or owned by, public housing residents;
‘‘(10) providing coordination with related gov-
ernment and private programs;
‘‘(11) carrying out job-related activities nec-
essary to establish and operate a family investment
center, including training, supervision of trainees,
and job recruitment;
‘‘(12) apprenticeship training of public housing
residents in job skills used in the construction mod-
ernization, maintenance, and operation of public
housing and other housing assisted by the Department
of Housing and Urban Development;
‘‘(13) employing public housing residents in
modernization, maintenance, and operation of public
housing and other housing assisted by the Department
of Housing and Urban Development;
‘‘(14) training and employing public housing
residents in jobs providing supportive services to resi-
dents participating in the program for family self-
sufficiency and other economic independence; and’’.
SEC. 127. REVITALIZATION OF SEVERELY DISTRESSED PUB-
LIC HOUSING.
(a) PLANNING GRANTS.—Subsection (c) of section 24
of the United States Housing Act of 1937 (42 U.S.C.
1437v(c)) is amended—
(1) in paragraph (2) by striking ‘‘$200,000’’ and
inserting ‘‘$300,000’’;
(2) in paragraph (3)—
(A) in subparagraph (G), by striking ‘‘de-
signing a suitable replacement housing plan’’
and inserting ‘‘designing suitable relocation and
replacement housing plans’’;
(B) by redesignating subparagraphs (E)
through (I) as subparagraphs (F) through (J),
respectively; and
(C) by inserting after subparagraph (D) the
following new subparagraph:
‘‘(E) planning for community service ac-
tivities to be carried out by residents, other mem-
bers of the community, and other persons willing
to contribute to the social, economic, or physical
improvement of the community;’’;
(3) in paragraph (4)—
(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C) the
following new subparagraph:
‘‘(D) to the extent the applicant is request-
ing amounts for community service activities, a
description of the planning activities for commu-
nity service to be carried out by residents, other
members of the community, and other persons
willing to contribute to the social, economic, or
physical improvement of the community;’’; and
(5) in paragraph (5)—
(A) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
taking into consideration the condition of the
public housing of the public housing agency as a
whole’’;
(B) by striking subparagraph (E);
(C) by redesignating subparagraphs (F)
and (G) as subparagraphs (E) and (F), respec-
tively; and
(D) by adding at the end the following new
flush material:
‘‘In making grants under this subsection, the Sec-
retary may select a lower-rated application that
meets the requirements pursuant to this section in-
stead of a higher-rated application to increase the na-
tional geographic diversity among applications ap-
proved under this section.’’.
(b) IMPLEMENTATION GRANTS.—Subsection (d) of sec-
tion 24 of the United States Housing Act of 1937 is amend-
ed—
(1) in paragraph (2)—
(A) in subparagraph (I), by striking ‘‘ex-
cept that’’ and all that follows and inserting the
following: ‘‘except that—
‘‘(i) not more than 20 percent of any
grant under this subsection may be used for
such purpose; and
‘‘(ii) an amount equal to 15 percent of
the amount of any grant under this sub-
section used for such purposes shall be con-
tributed from non-Federal sources, and may
be in the form of cash, administrative costs,
and the reasonable value of in-kind con-
tributions, and may include funding under
title I of the Housing and Community De-
velopment Act of 1974.’’;
(B) by redesignating subparagraphs (E)
through (I) (as so amended) as subparagraphs
(G) through (K), respectively; and
(C) by inserting after subparagraph (D) the
following new subparagraphs:
‘‘(E) community service activities to be car-
ried out by residents, other members of the com-
munity, and other persons willing to contribute
to the social, economic, or physical improvement
of the community;
‘‘(F) replacement of public housing units;’’;
(2) in paragraph (3)—
(A) by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respec-
tively; and
(B) by inserting after subparagraph (C) the
following new subparagraph:
‘‘(D) to the extent the applicant is request-
ing amounts for community service activities, a
description of the community service activities to
be carried out by residents, other members of the
community, and other persons willing to contrib-
ute to the social, economic, or physical improve-
ment of the community;’’; and
(3) in paragraph (4)—
(A) by striking subparagraph (D) and in-
serting the following new subparagraph:
‘‘(D) the quality of the proposed revitaliza-
tion program and the suitability of the project
for such a program;’’;
(B) in subparagraph (F), by inserting be-
fore the semicolon at the end the following: ‘‘,
taking into consideration the condition of the
public housing of the applicant as a whole’’; and
(C) by striking subparagraph (E);
tion, the Secretary may impose such requirements as the
Secretary considers to be appropriate to further the pur-
poses of the demonstration.
(h) REPORTS.—
(1) REPORT
ON
DEMONSTRATION.—For each
demonstration site, the public housing agency or resi-
dent management corporation carrying out the dem-
onstration shall submit an annual progress report to
the Secretary. For each demonstration carried out
under this section, the Secretary shall submit a report
to Congress not later than 1 year after completion of
the demonstration, describing the results of the dem-
onstration and making any recommendations for leg-
islation.
(2) REPORT ON WAIVER FOR NEW YORK CITY.—
The Secretary shall conduct a study of the advisabil-
ity, practicality, and effects of exempting the New
York City Housing Authority from any provisions of
law or regulation establishing requirements for the
site on which, and neighborhood in which, public
housing is developed. The Secretary shall submit a re-
port to the Congress not later than 6 months after the
date of the enactment of this Act describing the results
of the study and making a recommendation with re-
spect to such exemption.