IB
104TH CONGRESS
2D SESSION
H. R. 3666
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 6, 1996
Ordered to be printed with the amendments of the Senate numbered
AN ACT
Making appropriations for the Departments of Veterans Af-
fairs and Housing and Urban Development, and for sun-
dry independent agencies, boards, commissions, corpora-
tions, and offices for the fiscal year ending September
30, 1997, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
Departments of Veterans Affairs and Housing and Urban
Development, and for sundry independent agencies,
boards, commissions, corporations, and offices for the fis-
cal year ending September 30, 1997, and for other pur-
poses, namely:
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TITLE I
DEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFERS OF FUNDS)
For the payment of compensation benefits to or on
behalf of veterans as authorized by law (38 U.S.C. 107,
chapters 11, 13, 51, 53, 55, and 61); pension benefits to
or on behalf of veterans as authorized by law (38 U.S.C.
chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and bur-
ial benefits, emergency and other officers’ retirement pay,
adjusted-service credits and certificates, payment of pre-
miums due on commercial life insurance policies guaran-
teed under the provisions of Article IV of the Soldiers’
and Sailors’ Civil Relief Act of 1940, as amended, and
for other benefits as authorized by law (38 U.S.C. 107,
1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61;
50 U.S.C. App. 540–548; 43 Stat. 122, 123; 45 Stat. 735;
76 Stat. 1198); Ω1æ$18,497,854,000 $18,671,259,000, to
remain available until expended: Provided, That not to ex-
ceed $26,417,000 of the amount appropriated shall be re-
imbursed to ‘‘General operating expenses’’ and ‘‘Medical
care’’ for necessary expenses in implementing those provi-
sions authorized in the Omnibus Budget Reconciliation
Act of 1990, and in the Veterans’ Benefits Act of 1992
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(38 U.S.C. chapters 51, 53, and 55), the funding source
for which is specifically provided as the ‘‘Compensation
and pensions’’ appropriation: Provided further, That such
sums as may be earned on an actual qualifying patient
basis, shall be reimbursed to ‘‘Medical facilities revolving
fund’’ to augment the funding of individual medical facili-
ties for nursing home care provided to pensioners as au-
thorized by the Veterans’ Benefits Act of 1992 (38 U.S.C.
chapter 55).
READJUSTMENT BENEFITS
For the payment of readjustment and rehabilitation
benefits to or on behalf of veterans as authorized by 38
U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55,
and 61, Ω2æ$1,227,000,000 $1,377,000,000, to remain
available until expended: Provided, That funds shall be
available to pay any court order, court award or any com-
promise settlement arising from litigation involving the vo-
cational training program authorized by section 18 of
Public Law 98–77, as amended.
VETERANS INSURANCE AND INDEMNITIES
For military and naval insurance, national service life
insurance, servicemen’s indemnities, service-disabled vet-
erans insurance, and veterans mortgage life insurance as
authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72
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Stat. 487, $38,970,000, to remain available until ex-
pended.
GUARANTY AND INDEMNITY PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such
sums as may be necessary to carry out the program, as
authorized by 38 U.S.C. chapter 37, as amended: Pro-
vided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Con-
gressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $105,226,000,
which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
LOAN GUARANTY PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct and guaranteed loans, such
sums as may be necessary to carry out the program, as
authorized by 38 U.S.C. chapter 37, as amended: Pro-
vided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Con-
gressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $33,810,000,
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which may be transferred to and merged with the appro-
priation for ‘‘General operating expenses’’.
DIRECT LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, such sums as may be
necessary to carry out the program, as authorized by 38
U.S.C. chapter 37, as amended: Provided, That such costs,
including the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That during 1997,
within the resources available, not to exceed $300,000 in
gross obligations for direct loans are authorized for spe-
cially adapted housing loans.
In addition, for administrative expenses to carry out
the direct loan program, $80,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
EDUCATION LOAN FUND PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $1,000, as authorized
by 38 U.S.C. 3698, as amended: Provided, That such
costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds
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chapter V, as amended, $205,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
For necessary expenses for the maintenance and op-
eration of hospitals, nursing homes, and domiciliary facili-
ties; for furnishing, as authorized by law, inpatient and
outpatient care and treatment to beneficiaries of the De-
partment of Veterans Affairs, including care and treat-
ment in facilities not under the jurisdiction of the Depart-
ment; and furnishing recreational facilities, supplies, and
equipment; funeral, burial, and other expenses incidental
thereto for beneficiaries receiving care in the Department;
administrative expenses in support of planning, design,
project management, real property acquisition and disposi-
tion, construction and renovation of any facility under the
jurisdiction or for the use of the Department; oversight,
engineering and architectural activities not charged to
project cost; repairing, altering, improving or providing fa-
cilities in the several hospitals and homes under the juris-
diction of the Department, not otherwise provided for, ei-
ther by contract or by the hire of temporary employees
and purchase of materials; uniforms or allowances there-
for, as authorized by 5 U.S.C. 5901–5902; aid to State
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homes as authorized by 38 U.S.C. 1741; and not to exceed
$8,000,000 to fund cost comparison studies as referred
to in 38 U.S.C. 8110(a)(5); $17,008,447,000, plus reim-
bursements: Provided, That of the funds made available
under this heading, Ω4æ$570,000,000 $596,000,000 is for
the equipment and land and structures object classifica-
tions only, which amount shall not become available for
obligation until August 1, 1997, and shall remain available
until September 30, 1998.
MEDICAL AND PROSTHETIC RESEARCH
For necessary expenses in carrying out programs of
medical and prosthetic research and development as au-
thorized by 38 U.S.C. chapter 73, to remain available until
September 30, 1998, Ω5æ$257,000,000 $262,000,000, plus
reimbursements.
MEDICAL ADMINISTRATION AND MISCELLANEOUS
OPERATING EXPENSES
For necessary expenses in the administration of med-
ical, hospital, nursing home, domiciliary, construction,
supply, and research activities, as authorized by law; ad-
ministrative expenses in support of planning, design,
project management, architectural, engineering, real prop-
erty acquisition and disposition, construction and renova-
tion of any facility under the jurisdiction or for the use
of the Department of Veterans Affairs, including site ac-
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quisition; engineering and architectural activities not
charged to project cost; and research and development in
building 
construction 
technology; 
Ω6æ$59,207,000
$62,207,000, plus reimbursements.
TRANSITIONAL HOUSING LOAN PROGRAM
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $7,000, as authorized
by Public Law 102–54, section 8, which shall be trans-
ferred from the ‘‘General post fund’’: Provided, That such
costs, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act
of 1974, as amended: Provided further, That these funds
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $70,000.
In addition, for administrative expenses to carry out
the direct loan program, $54,000, which shall be trans-
ferred from the ‘‘General post fund’’, as authorized by
Public Law 102–54, section 8.
DEPARTMENTAL ADMINISTRATION
GENERAL OPERATING EXPENSES
For necessary operating expenses of the Department
of Veterans Affairs, not otherwise provided for, including
uniforms or allowances therefor; not to exceed $25,000 for
official reception and representation expenses; hire of pas-
senger motor vehicles; and reimbursement of the General
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Services Administration for security guard services, and
the Department of Defense for the cost of overseas em-
ployee mail; Ω7æ$823,584,000 $813,730,000: Provided
Ω8æfurther, That during fiscal year 1997, notwithstanding
any other provision of law, the number of individuals em-
ployed by the Department of Veterans Affairs (1) in other
than ‘‘career appointee’’ positions in the Senior Executive
Service shall not exceed 6, and (2) in schedule C positions
shall not exceed 11: Provided further, That funds under
this heading shall be available to administer the Service
Members Occupational Conversion and Training Act.
NATIONAL CEMETERY SYSTEM
For necessary expenses for the maintenance and op-
eration of the National Cemetery System, not otherwise
provided for, including uniforms or allowances therefor;
cemeterial expenses as authorized by law; purchase of two
passenger motor vehicles for use in cemeterial operations;
and hire of passenger motor vehicles, $76,864,000.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the Inspector General Act of 1978,
as amended, $30,900,000.
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving
any of the facilities under the jurisdiction or for the use
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of the Department of Veterans Affairs, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102,
8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit-
ed States Code, including planning, architectural and en-
gineering services, maintenance or guarantee period serv-
ices costs associated with equipment guarantees provided
under the project, services of claims analysts, offsite utility
and storm drainage system construction costs, and site ac-
quisition, where the estimated cost of a project is
$3,000,000 or more or where funds for a project were
made available in a previous major project appropriation,
Ω9æ$245,358,000 $178,250,000, to remain available until
expended: Provided, That except for advance planning of
projects funded through the advance planning fund and
the design of projects funded through the design fund,
none of these funds shall be used for any project which
has not been considered and approved by the Congress in
the budgetary process: Provided further, That funds pro-
vided in this appropriation for fiscal year 1997, for each
approved project shall be obligated (1) by the awarding
of a construction documents contract by September 30,
1997, and (2) by the awarding of a construction contract
by September 30, 1998: Provided further, That the Sec-
retary shall promptly report in writing to the Comptroller
General and to the Committees on Appropriations any ap-
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proved major construction project in which obligations are
not incurred within the time limitations established above;
and the Comptroller General shall review the report in ac-
cordance with the procedures established by section 1015
of the Impoundment Control Act of 1974 (title X of Public
Law 93–344): Provided further, That no funds from any
other account except the ‘‘Parking revolving fund’’, may
be obligated for constructing, altering, extending, or im-
proving a project which was approved in the budget proc-
ess and funded in this account until one year after sub-
stantial completion and beneficial occupancy by the De-
partment of Veterans Affairs of the project or any part
thereof with respect to that part only.
CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving
any of the facilities under the jurisdiction or for the use
of the Department of Veterans Affairs, including plan-
ning, architectural and engineering services, maintenance
or guarantee period services costs associated with equip-
ment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system
construction costs, and site acquisition, or for any of the
purposes set forth in sections 316, 2404, 2406, 8102,
8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit-
ed States Code, where the estimated cost of a project is
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less than $3,000,000; Ω10æ$160,000,000 $190,000,000, to
remain available until expended, along with unobligated
balances of previous ‘‘Construction, minor projects’’ ap-
propriations which are hereby made available for any
project where the estimated cost is less than $3,000,000:
Provided, That funds in this account shall be available for
(1) repairs to any of the nonmedical facilities under the
jurisdiction or for the use of the Department which are
necessary because of loss or damage caused by any natural
disaster or catastrophe, and (2) temporary measures nec-
essary to prevent or to minimize further loss by such
causes.
PARKING REVOLVING FUND
For the parking revolving fund as authorized by 38
U.S.C. 8109, Ω11æ$12,300,000, together with income
from fees collected, to remain available until expended,
which shall be available for all authorized expenses except
operations and maintenance costs, which will be funded
from ‘‘Medical care’’.
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE
FACILITIES
For grants to assist States to acquire or construct
State nursing home and domiciliary facilities and to re-
model, modify or alter existing hospital, nursing home and
domiciliary facilities in State homes, for furnishing care
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to veterans as authorized by 38 U.S.C. 8131–8137,
$47,397,000, to remain available until expended.
GRANTS FOR THE CONSTRUCTION OF STATE VETERANS
CEMETERIES
For grants to aid States in establishing, expanding,
or improving State veteran cemeteries as authorized by 38
U.S.C. 2408, $1,000,000, to remain available until ex-
pended.
FRANCHISE FUND
(INCLUDING TRANSFER OF FUNDS)
There is hereby established in the Treasury a fran-
chise fund pilot, as authorized by section 403 of Public
Law 103–356, to be available as provided in such section
for expenses and equipment necessary for the maintenance
and operation of such administrative services as the Sec-
retary determines may be performed more advantageously
as central services: Provided, That any inventories, equip-
ment and other assets pertaining to the services to be pro-
vided by the franchise fund, either on hand or on order,
less the related liabilities or unpaid obligations, and any
appropriations made hereafter for the purpose of provid-
ing capital, shall be used to capitalize the franchise fund:
Provided further, That the franchise fund may be paid in
advance from funds available to the Department and other
Federal agencies for which such centralized services are
performed, at rates which will return in full all expenses
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of operation, including accrued leave, depreciation of fund
plant and equipment, amortization of automated data
processing (ADP) software and systems (either acquired
or donated), and an amount necessary to maintain a rea-
sonable operating reserve, as determined by the Secretary:
Provided further, That the franchise fund shall provide
services on a competitive basis: Provided further, That an
amount not to exceed four percent of the total annual in-
come to such fund may be retained in the fund for fiscal
year 1997 and each fiscal year thereafter, to remain avail-
able until expended, to be used for the acquisition of cap-
ital equipment and for the improvement and implementa-
tion of Departmental financial management, ADP, and
other support systems: Provided further, That no later
than thirty days after the end of each fiscal year amounts
in excess of this reserve limitation shall be transferred to
the Treasury: Provided further, That such franchise fund
pilot shall terminate pursuant to section 403(f) of Public
Law 103–356.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
SEC. 101. Any appropriation for 1997 for ‘‘Com-
pensation and pensions’’, ‘‘Readjustment benefits’’, and
‘‘Veterans insurance and indemnities’’ may be transferred
to any other of the mentioned appropriations.
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SEC. 102. Appropriations available to the Depart-
ment of Veterans Affairs for 1997 for salaries and ex-
penses shall be available for services authorized by 5
U.S.C. 3109.
SEC. 103. No appropriations in this Act for the De-
partment of Veterans Affairs (except the appropriations
for ‘‘Construction, major projects’’, ‘‘Construction, minor
projects’’, and the ‘‘Parking revolving fund’’) shall be
available for the purchase of any site for or toward the
construction of any new hospital or home.
SEC. 104. No appropriations in this Act for the De-
partment of Veterans Affairs shall be available for hos-
pitalization or examination of any persons (except bene-
ficiaries entitled under the laws bestowing such benefits
to veterans, and persons receiving such treatment under
5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless re-
imbursement of cost is made to the ‘‘Medical care’’ ac-
count at such rates as may be fixed by the Secretary of
Veterans Affairs.
SEC. 105. Appropriations available to the Depart-
ment of Veterans Affairs for fiscal year 1997 for ‘‘Com-
pensation and pensions’’, ‘‘Readjustment benefits’’, and
‘‘Veterans insurance and indemnities’’ shall be available
for payment of prior year accrued obligations required to
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be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1996.
SEC. 106. Appropriations accounts available to the
Department of Veterans Affairs for fiscal year 1997 shall
be available to pay prior year obligations of corresponding
prior year appropriations accounts resulting from title X
of the Competitive Equality Banking Act, Public Law
100–86, except that if such obligations are from trust
fund accounts they shall be payable from ‘‘Compensation
and pensions’’.
SEC. 107. Notwithstanding any other provision of
law, during fiscal year 1997, the Secretary of Veterans
Affairs shall, from the National Service Life Insurance
Fund (38 U.S.C. 1920), the Veterans’ Special Life Insur-
ance Fund (38 U.S.C. 1923), and the United States Gov-
ernment Life Insurance Fund (38 U.S.C. 1955), reim-
burse the ‘‘General operating expenses’’ account for the
cost of administration of the insurance programs financed
through those accounts: Provided, That reimbursement
shall be made only from the surplus earnings accumulated
in an insurance program in fiscal year 1997, that are
available for dividends in that program after claims have
been paid and actuarially determined reserves have been
set aside: Provided further, That if the cost of administra-
tion of an insurance program exceeds the amount of sur-
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plus earnings accumulated in that program, reimburse-
ment shall be made only to the extent of such surplus
earnings: Provided further, That the Secretary shall deter-
mine the cost of administration for fiscal year 1997, which
is properly allocable to the provision of each insurance pro-
gram and to the provision of any total disability income
insurance included in such insurance program.
Ω12æSEC. 108. (a) The Secretary of Veterans Affairs
may convey, without consideration, to the City of Tusca-
loosa, Alabama (in this section referred to as the ‘‘City’’),
all right, title, and interest of the United States in and to
a parcel of real property, including any improvements
thereon, in the northwest quarter of section 28, township
21 south, range 9 west, of Tuscaloosa County, Alabama,
comprising a portion of the grounds of the Department of
Veterans Affairs medical center, Tuscaloosa, Alabama, and
consisting of approximately 9.42 acres, more or less.
(b) The conveyance under subsection (a) shall be sub-
ject to the condition that the City use the real property con-
veyed under that subsection in perpetuity solely for public
park or recreational purposes.
(c) The exact acreage and legal description of the real
property to be conveyed pursuant to this section shall be
determined by a survey satisfactory to the Secretary of Vet-
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erans Affairs. The cost of such survey shall be borne by the
City.
(d) The Secretary of Veterans Affairs may require such
additional terms and conditions in connection with the con-
veyance under this section as the Secretary considers appro-
priate to protect the interests of the United States.
TITLE II
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
HOUSING PROGRAMS
Ω13æANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING
(INCLUDING RESCISSION)
For assistance under the United States Housing Act
of 1937, as amended (the ‘‘Act’’ herein) (42 U.S.C. 1437),
not otherwise provided for, $5,272,000,000 (reduced by
$140,000,000), to remain available until expended: Pro-
vided, That of the total amount provided under this head,
$4,472,000,000 shall be for assistance under the United
States Housing Act of 1937 (42 U.S.C. 1437) for use in
connection with expiring or terminating section 8 subsidy
contracts of which $875,000,000 shall be available on Sep-
tember 15, 1997: Provided further, That the Secretary
may determine not to apply section 8(o)(6)(B) of the Act
to housing vouchers during fiscal year 1997: Provided fur-
ther, That of the total amount provided under this head,
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$800,000,000 (reduced by $140,000,000) shall be for
amendments to section 8 contracts other than contracts
for projects developed under section 202 of the Housing
Act of 1959, as amended: Provided further, That 50 per
centum of the amounts of budget authority, or in lieu
thereof 50 per centum of the cash amounts associated with
such budget authority, that are recaptured from projects
described in section 1012(a) of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 (Public
Law 100–628, 102 Stat. 3224, 3268) shall be rescinded,
or in the case of cash, shall be remitted to the Treasury,
and such amounts of budget authority or cash recaptured
and not rescinded or remitted to the Treasury shall be
used by State housing finance agencies or local govern-
ments or local housing agencies with projects approved by
the Secretary of Housing and Urban Development for
which settlement occurred after January 1, 1992, in ac-
cordance with such section.
HOUSING FOR SPECIAL POPULATIONS: ELDERLY AND
DISABLED
For capital advances, including amendments to cap-
ital advance contracts, and for project rental assistance
and amendments thereto, for Supportive Housing for the
Elderly under section 202 of the Housing Act of 1959,
as amended, $595,000,000 (increased by $100,000,000),
to remain available until expended.
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For capital advances, including amendments to cap-
ital advance contracts, and for project rental assistance
and amendments thereto, for Supportive Housing for Per-
sons with Disabilities under section 811 of the Cranston-
Gonzalez National Affordable Housing Act, $174,000,000
(increased by $40,000,000), to remain available until ex-
pended, of which 25 percent shall be used for tenant-based
rental assistance under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437(o)), in addition to
any other amounts available for section 8(o).
The Secretary may waive any provision of section 202
of the Housing Act of 1959 and section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act (including
the provisions governing the terms and conditions of
project rental assistance) that the Secretary determines is
not necessary to achieve the objectives of these programs,
or that otherwise impedes the ability to develop, operate
or administer projects assisted under these programs, and
may make provision for alternative conditions or terms
where appropriate.
FLEXIBLE SUBSIDY FUND
(INCLUDING TRANSFER OF FUNDS)
From the fund established by section 236(g) of the
National Housing Act, as amended, all uncommitted bal-
ances of excess rental charges as of September 30, 1996,
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and any collection during fiscal year 1997, shall be trans-
ferred, as authorized under such section, to the fund au-
thorized under section 201(j) of the Housing and Commu-
nity Development Amendments of 1978, as amended.
RENTAL HOUSING ASSISTANCE
(RESCISSION)
The limitation otherwise applicable to the maximum
payments that may be required in any fiscal year by all
contracts entered into under section 236 of the National
Housing Act (12 U.S.C. 1715z–1) is reduced in fiscal year
1997 by not more than $2,000,000 in uncommitted bal-
ances of authorizations provided for this purpose in appro-
priations Acts.
PUBLIC AND INDIAN HOUSING
HOUSING CERTIFICATE FUND
For tenant-based assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f),
as amended, $166,000,000, to remain available until ex-
pended: Provided, That of the total amount provided
under this head, $50,000,000 shall be for nonelderly dis-
abled families relocating pursuant to designation of a pub-
lic housing development under section 7 of such Act: Pro-
vided further, That the remainder of the amount provided
under this head shall be used only for housing assistance
for relocating residents of properties (i) that are eligible
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for assistance under the Low Income Housing Preserva-
tion
and
Resident
Homeownership
Act
of
1990
(LIHPRHA) or the Emergency Low-Income Housing
Preservation Act of 1987 (ELIHPA) in accordance with
the terms and conditions of the tenth and eleventh provi-
sos of the second undesignated paragraph under the head
‘‘Annual Contributions for Assisted Housing’’ in Public
Law 104–134; (ii) that are owned by the Secretary and
being disposed of; (iii) for which section 8 assistance is
allocated under subsection (f) of section 204 of this Act
(relating to portfolio reengineering); or (iv) subject to spe-
cial workout assistance team intervention compliance ac-
tions: Provided further, That notwithstanding any other
provision of law, a public housing agency administering
certificate or voucher assistance provided under subsection
(b) or (o) of section 8 of the United States Housing Act
of 1937, as amended, shall delay for 3 months, the use
of any amounts of such assistance (or the certificate or
voucher representing assistance amounts) made available
by the termination during fiscal year 1997 of such assist-
ance on behalf of any family for any reason, but not later
than October 1, 1997, with the exception of any certifi-
cates assigned or committed to project-based assistance as
permitted otherwise by the Act, accomplished prior to the
effective date of this Act: Provided further, That section
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8(c)(2)(A) of the United States Housing Act of 1937, as
amended (42 U.S.C. 1437f(c)(2)(A)) is further amend-
ed—
(1) in the third sentence by inserting ‘‘and fis-
cal year 1997’’ after ‘‘1995’’; and
(2) in the last sentence by inserting ‘‘and fiscal
year 1997’’ after ‘‘1995’’.
PUBLIC HOUSING OPERATING FUND
For payments to public housing agencies and Indian
housing authorities for operating subsidies for low-income
housing projects as authorized by section 9 of the United
States Housing Act of 1937, as amended (42 U.S.C.
1437g), $2,850,000,000.
PUBLIC HOUSING CAPITAL FUND
(INCLUDING TRANSFERS OF FUNDS)
For the Public Housing Capital Fund program under
the United States Housing Act of 1937, as amended (42
U.S.C. 1437), $2,700,000,000, to remain available until
expended, of which $2,415,000,000 shall be for mod-
ernization
of
existing
public
housing
projects;
$200,000,000
for
Indian
Housing
Development;
$50,000,000 for grants to public housing agencies (includ-
ing Indian housing authorities), nonprofit corporations,
and other appropriate entities for a supportive services
program to assist residents of public and assisted housing,
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former residents of such housing receiving tenant-based
assistance under section 8 of such Act, and other low-in-
come families and individuals, principally for the benefit
of public housing residents, to become self-sufficient;
$20,000,000 for technical assistance for the inspection of
public housing units, contract expertise, and training and
technical assistance directly or indirectly, under grants,
contracts, or cooperative agreements, to assist in the over-
sight and management of public and Indian housing
(whether or not the housing is being modernized with as-
sistance under this proviso) or tenant-based assistance, in-
cluding, but not limited to, an annual resident survey,
data collection and analysis, training and technical assist-
ance by or to officials and employees of the department
and of public housing agencies and to residents in connec-
tion with the public and Indian housing program or for
carrying out activities under section 6(j) of the Act;
$10,000,000 for the Tenant Opportunity Program; and
$5,000,000 for the Jobs-Plus Demonstration for Public
Housing families: Provided, That all obligated and unobli-
gated balances as of the end of fiscal year 1996 heretofore
provided for the development or acquisition costs of public
housing (including public housing for Indian families), for
modernization of existing public housing projects (includ-
ing such projects for Indian families), for public and In-
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dian housing amendments, for modernization and develop-
ment technical assistance, for lease adjustments for the
section 23 program, and for the Family Investment Cen-
ters program shall be transferred to amounts made avail-
able under this heading.
REVITALIZATION OF SEVERELY DISTRESSED PUBLIC
HOUSING (HOPE VII)
For grants to public housing agencies for assisting
in the demolition of obsolete public housing projects or
portions thereof, the revitalization (where appropriate) of
sites (including remaining public housing units) on which
such projects are located, replacement housing which will
avoid or lessen concentrations of very low-income families,
and tenant-based assistance in accordance with section 8
of the United States Housing Act of 1937; and for provid-
ing replacement housing and assisting tenants to be dis-
placed by the demolition, $550,000,000, to remain avail-
able until expended, of which the Secretary may use up
to $2,500,000 for technical assistance, to be provided di-
rectly or indirectly by grants, contracts or cooperative
agreements, including training and cost of necessary travel
for participants in such training, by or to officials and em-
ployees of the Department and of public housing agencies
and to residents: Provided, That, notwithstanding any
other provision of law, the funds made available to the
Housing Authority of New Orleans under HOPE VI for
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purposes of Desire Homes, shall not be obligated or ex-
pended for on-site construction until an independent third
party has determined whether the site is appropriate.
DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING
(INCLUDING TRANSFER OF FUNDS)
For grants to public and Indian housing agencies for
use in eliminating crime in public housing projects author-
ized by 42 U.S.C. 11901–11908, for grants for federally
assisted low-income housing authorized by 42 U.S.C.
11909, and for drug information clearinghouse services
authorized by 42 U.S.C. 11921–11925, $290,000,000, to
remain available until expended, $10,000,000 of which
shall be for grants, technical assistance, contracts and
other assistance training, program assessment, and execu-
tion for or on behalf of public housing agencies and resi-
dent organizations (including the cost of necessary travel
for participants in such training), $5,000,000 of which
shall be used in connection with efforts to combat violent
crime in public and assisted housing under the Operation
Safe Home program administered by the Inspector Gen-
eral of the Department of Housing and Urban Develop-
ment, and $5,000,000 of which shall be transferred to the
Office of Inspector General for Operation Safe Home: Pro-
vided, That the term ‘‘drug-related crime’’, as defined in
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42 U.S.C. 11905(2), shall also include other types of
crime as determined by the Secretary.
Ω14æDEVELOPMENT OF ADDITIONAL NEW SUBSIDIZED
HOUSING
For assistance for the purchase, construction, acquisi-
tion, or development of additional public and subsidized
housing units for low income families under the United
States Housing Act of 1937, as amended (‘‘the Act’’ herein)
(42 U.S.C. 1437), not otherwise provided for, $969,464,442,
to remain available until expended: Provided, That of the
total amount provided under this head, $595,000,000 shall
be for capital advances, including amendments to capital
advance contracts, for housing for the elderly, as authorized
by section 202 of the Housing Act of 1959, as amended,
and for project rental assistance, and amendments to con-
tracts for project rental assistance, for supportive housing
for the elderly under section 202(c)(2) of the Housing Act
of 1959; and $174,000,000 shall be for capital advances,
including amendments to capital advance contracts, for
supportive housing for persons with disabilities, as author-
ized by section 811 of the Cranston-Gonzalez National Af-
fordable Housing Act; and for project rental assistance, and
amendments to contracts for project rental assistance, for
supportive housing for persons with disabilities as author-
ized by section 811 of the Cranston-Gonzalez National Af-
HR 3666 PP
fordable Housing Act: Provided further, That the Secretary
may designate up to 25 percent of the amounts earmarked
under this paragraph for section 811 of the Cranston-Gon-
zalez National Affordable Housing Act for tenant-based as-
sistance, as authorized under that section, which assistance
is five years in duration: Provided further, That the Sec-
retary may waive any provision of section 202 of the Hous-
ing Act of 1959 and section 811 of the National Affordable
Housing Act (including the provisions governing the terms
and conditions of project rental assistance and tenant-based
assistance) that the Secretary determines is not necessary
to achieve the objectives of these programs, or that otherwise
impedes the ability to develop, operate or administer
projects assisted under these programs, and may make pro-
vision for alternative conditions or terms where appro-
priate: Provided further, That of the total amount provided
under this head, $200,000,000 shall be for the development
or acquisition cost of public housing for Indian families,
including amounts for housing under the mutual help
homeownership opportunity program under section 202 of
the Act (42 U.S.C. 1437bb): Provided further, That of the
total amount provided under this head, the Secretary shall
provide $464,442 to the Utah Housing Finance Agency, in
lieu of amounts lost to such agency in bond refinancings
HR 3666 PP
during 1994, for its use in accordance with the immediately
preceding proviso.
PREVENTION OF RESIDENT DISPLACEMENT
For activities and assistance to prevent the involun-
tary displacement of low-income families, the elderly and
the disabled because of the loss of affordable housing stock,
expiration of subsidy contracts or expiration of use restric-
tions, or other changes in housing assistance arrangements,
$4,775,000,000, to remain available until expended: Pro-
vided, That of the total amount provided under this head,
$3,800,000,000 shall be for assistance under the United
States Housing Act of 1937 (42 U.S.C. 1437) for use in
connection with expiring or terminating section 8 subsidy
contracts: Provided further, That the Secretary may deter-
mine not to apply section 8(o)(6)(B) of the Act to housing
vouchers during fiscal year 1997: Provided further, That
of the total amount provided under this head, $800,000,000
shall be for amendments to section 8 contracts other than
contracts for projects developed under section 202 of the
Housing Act of 1959, as amended: Provided further, That
of the total amount provided under this head, $175,000,000
shall be for assistance under the United States Housing Act
of 1937 (42 U.S.C. 1437) for nonelderly disabled families
relocating pursuant to designation of a public housing de-
velopment under section 7 of such Act, for a demonstration
linking housing assistance to State welfare reform initia-
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tives to help families make the transition from welfare to
work and for housing assistance for relocating residents of
properties (i) that are owned by the Secretary and being
disposed of; (ii) that are discontinuing section 8 project-
based assistance; or (iii) subject to special workout assist-
ance team intervention compliance actions: Provided, That
of the total amount made available under this head,
$50,000,000 shall be made available to nonelderly disabled
families affected by the designation of a public housing de-
velopment under section 7 of such Act or the establishment
of preferences in accordance with section 651 of the Housing
and Community Development Act of 1992 (42 U.S.C.
13611).
PRESERVING EXISTING HOUSING INVESTMENT
For operating, maintaining, revitalizing, rehabilitat-
ing, preserving, and protecting existing housing develop-
ments for low income families, the elderly and the disabled,
$6,740,000,000, to remain available until expended: Pro-
vided, That of the total amount made available under this
head, $2,900,000,000 shall be available for payments to
public housing agencies and Indian housing authorities for
operating subsidies for low-income housing projects as au-
thorized by section 9 of the United States Housing Act of
1937, as amended (42 U.S.C. 1437g): Provided further,
That of the total amount made available under this head,
$2,500,000,000 shall be available for modernization of exist-
HR 3666 PP
ing public housing projects as authorized under section 14
of the United States Housing Act of 1937, as amended (42
U.S.C. 1437l): Provided further, That of the total amount
made available under this head, $550,000,000 shall be for
grants to public housing agencies for assisting in the demo-
lition of obsolete public housing projects or portions thereof,
the revitalization (where appropriate) of sites (including re-
maining public housing units) on which such projects are
located, replacement housing which will avoid or lessen con-
centrations of very low-income families, and tenant-based
assistance in accordance with section 8 of the United States
Housing Act of 1937; and for providing replacement hous-
ing and assisting tenants to be displaced by the demolition,
of which the Secretary may use up to $2,500,000 for tech-
nical assistance, to be provided directly or indirectly by
grants, contracts or cooperative agreements, including
training and cost of necessary travel for participants in
such training, by or to officials and employees of the De-
partment and of public housing agencies and to residents:
Provided further, That of the total amount provided under
this head, $500,000,000 shall be available for use in con-
junction with properties that are eligible for assistance
under the Low Income Housing Preservation and Resident
Homeownership Act of 1990 (LIHPRHA) or the Emergency
Low-Income Housing Preservation Act of 1987 (ELIHPA):
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Provided further, That amounts recaptured from interest
reduction payment contracts for section 236 projects whose
owners prepay their mortgages during fiscal year 1997 shall
be rescinded: Provided further, That the Secretary may con-
tinue to impose a moratorium on the acceptance of initial
notices of intent by potential recipients of such funding:
Provided further, That funding shall be limited to: (1) ten-
ant-based assistance under the terms of the tenth and elev-
enth provisos of the second undesignated paragraph under
the ‘‘Annual Contributions for Assisted Housing’’ head of
the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropria-
tions Act, 1996; (2) plans of action for sales of projects to
nonprofit organizations, tenant-sponsored organizations
and other priority purchasers; (3) projects that are subject
to a repayment or settlement agreement that was executed
between the owner and the Secretary prior to September
1, 1995; (4) projects for which submissions were delayed
as a result of their location in areas that were designated
as a Federal disaster area in a Presidential Disaster Dec-
laration; and (5) projects whose processing was, in fact, or
in practical effect, suspended, deferred, or interrupted for
a period of nine months or more because of differing inter-
pretations, by the Secretary and an owner concerning the
timing of the ability of an uninsured section 236 property
HR 3666 PP
to prepay or by the Secretary and a State or local rent
regulatory agency, concerning the effect of a presumptively
applicable State or local rent control law or regulation on
the determination of preservation value under section 213
of LIHPRHA, as amended, if the owner of such project filed
a notice of intent to extend the low-income affordability re-
strictions of the housing, or transfer to a qualified pur-
chaser who would extend such restrictions, on or before No-
vember 1, 1993: Provided further, That priority shall be
given to funding tenant-based assistance under the terms
of the tenth and eleventh provisos of the second undesignated
paragraph under the ‘‘Annual Contributions for Assisted
Housing’’ head of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agen-
cies Appropriations Act, 1996, and plans of action for sales
of projects to nonprofit organizations, tenant-sponsored or-
ganizations, and other priority purchasers: Provided fur-
ther, That the Secretary may give priority to funding ap-
proved plans of action for the following projects: (1) projects
that are subject to a repayment or settlement agreement that
was executed between the owner and the Secretary prior to
September 1, 1995; (2) projects for which submissions were
delayed as a result of their location in areas that were des-
ignated as a Federal disaster area in a Presidential Disas-
ter Declaration; and (3) projects whose processing was, in
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fact, or in practical effect, suspended, deferred, or inter-
rupted for a period of nine months or more because of differ-
ing interpretations, by the Secretary and an owner concern-
ing the timing of the ability of an uninsured section 236
property to prepay or by the Secretary and a State or local
rent regulatory agency, concerning the effect of a presump-
tively applicable State or local rent control law or regula-
tion on the determination of preservation value under sec-
tion 213 of LIHPRHA, as amended, if the owner of such
project filed a notice of intent to extend the low-income af-
fordability restrictions of the housing, or transfer to a quali-
fied purchaser who would extend such restrictions, on or
before November 1, 1993: Provided further, That section
241(f) of the National Housing Act is repealed and insur-
ance under such section shall not be offered as an incentive
under LIHPRHA and ELIHPA: Provided further, That a
capital loan may be provided as an incentive under
LIHPRHA or ELIHPA on such terms and conditions as
the Secretary may prescribe: Provided further, That the fol-
lowing provisos under the second undesignated heading
under the ‘‘Annual Contributions for Assisted Housing’’
head of the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Appro-
priations Act, 1996 shall continue in effect: the fourth pro-
viso, the sixth proviso, the seventh proviso, the ninth pro-
HR 3666 PP
viso, the tenth proviso, the eleventh proviso, and the twelfth
proviso: Provided further, That notwithstanding any other
provision of law, effective October 1, 1997, the Secretary
shall suspend further funding of plans of action: Provided
further, That of the total amount provided under this head
$290,000,000 shall be for grants to public and Indian hous-
ing agencies for use in eliminating crime in public housing
projects authorized by 42 U.S.C. 11901–11908, for grants
for federally assisted low-income housing authorized by 42
U.S.C. 11909, and for drug information clearinghouse serv-
ices authorized by 42 U.S.C. 11921–11925, of which
$10,000,000 shall be for grants, technical assistance, con-
tracts and other assistance training, program assessment,
and execution for or on behalf of public housing agencies
and resident organizations (including the cost of necessary
travel for participants in such training), up to $5,000,000
of which may be used in connection with efforts to combat
violent crime in public and assisted housing under the Op-
eration Safe Home program administered by the Inspector
General of the Department of Housing and Urban Develop-
ment, and up to $5,000,000 of which may be provided to
the Office of Inspector General for Operation Safe Home:
Provided further, That the term ‘‘drug-related crime’’, as
defined in 42 U.S.C. 11905(2), shall also include other types
of crime as determined by the Secretary: Provided further,
HR 3666 PP
That notwithstanding section 5130(c) of the Anti-Drug
Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may
determine not to use any such funds to provide public hous-
ing youth sports grants.
INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM
ACCOUNT
For the cost of guaranteed loans, as authorized by
section 184 of the Housing and Community Development
Act of 1992 (106 Stat. 3739), $3,000,000: Provided, That
such costs, including the costs of modifying such loans,
shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize total loan principal,
any part of which is to be guaranteed, not to exceed
$36,900,000.
COMMUNITY PLANNING AND DEVELOPMENT
COMMUNITY DEVELOPMENT BLOCK GRANTS FUND
(INCLUDING TRANSFER OF FUNDS)
For grants to States and units of general local gov-
ernment and for related expenses, not otherwise provided
for, to carry out a community development grants pro-
gram as authorized by title I of the Housing and Commu-
nity Development Act of 1974, as amended (the ‘‘Act’’
herein) (42 U.S.C. 5301), $4,600,000,000, to remain
available until September 30, 1999, Ω15æof
which
HR 3666 PP
$300,000,000 shall become available for obligation on
September 30, 1997, and of which Ω16æ$61,400,000
$68,500,000 shall be for grants to Indian tribes notwith-
standing section 106(a)(1) of the Act: Provided, That
$2,100,000 shall be available as a grant to the Housing
Assistance Council, Ω17æ$1,000,000 $1,500,000 shall be
available as a grant to the National American Indian
Housing Council, and $49,000,000 shall be available for
grants pursuant to section 107 of such Act, including up
to $14,000,000 for the development and operation of a
management information system: Provided further, That
not to exceed 20 percent of any grant made with funds
appropriated herein (other than a grant made available
under the preceding proviso to the Housing Assistance
Council or the National American Indian Housing Coun-
cil, or a grant using funds under section 107(b)(3) of the
Housing and Community Development Act of 1974, as
amended) shall be expended for ‘‘Planning and Manage-
ment Development’’ and ‘‘Administration’’ as defined in
regulations promulgated by the Department: Provided fur-
ther, That for fiscal year 1997 and thereafter, section
105(a)(25) of such Act, shall continue to be effective and
the termination and conforming provisions of section
907(b)(2) of the Cranston-Gonzalez National Affordable
Housing Act shall not be effective: Provided further, That
HR 3666 PP
section 916(f) of the Cranston-Gonzalez National Afford-
able Housing Act is repealed.
Ω18æOf the amount provided under this heading, the
Secretary of Housing and Urban Development may use up
to $50,000,000 for grants to public housing agencies (in-
cluding Indian housing authorities), nonprofit corpora-
tions, and other appropriate entities for a supportive serv-
ices program to assist residents of public and assisted hous-
ing, former residents of such housing receiving tenant-based
assistance under section 8 of such Act (42 U.S.C. 1437f),
and other low-income families and individuals to become
self-sufficient: Provided, That the program shall provide
supportive services, principally for the benefit of public
housing residents, to the elderly and the disabled, and to
families with children where the head of household would
benefit from the receipt of supportive services and is work-
ing, seeking work, or is preparing for work by participating
in job training or educational programs: Provided further,
That the supportive services shall include congregate serv-
ices for the elderly and disabled, service coordinators, and
coordinated educational, training, and other supportive
services, including academic skills training, job search as-
sistance, assistance related to retaining employment, voca-
tional and entrepreneurship development and support pro-
grams, transportation, and child care: Provided further,
HR 3666 PP
That the Secretary shall require applications to dem-
onstrate firm commitments of funding or services from other
sources: Provided further, That the Secretary shall select
public and Indian housing agencies to receive assistance
under this head on a competitive basis, taking into account
the quality of the proposed program (including any innova-
tive approaches), the extent of the proposed coordination of
supportive services, the extent of commitments of funding
or services from other sources, the extent to which the pro-
posed program includes reasonably achievable, quantifiable
goals for measuring performance under the program over
a three-year period, the extent of success an agency has had
in carrying out other comparable initiatives, and other ap-
propriate criteria established by the Secretary.
Ω19æOf the amount made available under this head-
ing, 
notwithstanding 
any 
other 
provision 
of 
law,
$20,000,000 shall be available for grants to entities manag-
ing or operating public housing developments, federally-as-
sisted multifamily-housing developments, or other multi-
family-housing developments for low-income families sup-
ported by non-Federal governmental entities or similar
housing developments supported by nonprofit private
sources, to reimburse local law enforcement entities for ad-
ditional police presence in and around such housing devel-
opments; to provide or augment such security services by
HR 3666 PP
other entities or employees of the recipient agency; to assist
in the investigation and/or prosecution of drug related
criminal activity in and around such developments; and
to provide assistance for the development of capital im-
provements at such developments directly relating to the se-
curity of such developments: Provided, That such grants
shall be made on a competitive basis as specified in section
102 of the HUD Reform Act.
Of the amount made available under this heading,
notwithstanding 
any 
other 
provision 
of 
law,
Ω20æ$20,000,000
$40,000,000 shall be available for
youthbuild program activities authorized by subtitle D of
title IV of the Cranston-Gonzalez National Affordable
Housing Act, as amended, and such activities shall be an
eligible activity with respect to any funds made available
under this heading.
Of the amount made available under this heading,
notwithstanding any other provision of law, $60,000,000
shall be available for the lead-based paint hazard reduc-
tion program as authorized under sections 1011 and 1053
of the Residential Lead-Based Hazard Reduction Act of
1992.
For the cost of guaranteed loans, $31,750,000, as au-
thorized by section 108 of the Housing and Community
Development Act of 1974: Provided, That such costs, in-
HR 3666 PP
cluding the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974, as amended: Provided further, That these funds are
available to subsidize total loan principal, any part of
which is to be guaranteed, not to exceed $1,500,000,000,
notwithstanding any aggregate limitation on outstanding
obligations guaranteed in section 108(k) of the Housing
and Community Development Act of 1974. In addition,
for administrative expenses to carry out the guaranteed
loan program, $675,000 which shall be transferred to and
merged with the appropriation for Ω21ædepartmental sala-
ries and expenses.
HOME INVESTMENT PARTNERSHIPS PROGRAM
For the HOME investment partnerships program, as
authorized under title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act (Public Law 101–625), as
amended, $1,400,000,000, to remain available until ex-
pended: Provided, That $21,000,000 shall be available for
grants to Indian Tribes: Provided further, That up to 0.5
percent, but not less than $7,000,000, shall be available
for the development and operation of a management infor-
mation system: Provided further, That $15,000,000 shall
be available for Housing Counseling under section 106 of
the Housing and Urban Development Act of 1968.
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HOMELESS ASSISTANCE FUNDS
For the emergency shelter grants program (as au-
thorized under subtitle B of title IV of the Stewart B.
McKinney Homeless Assistance Act (Public Law 100–77),
as amended); the supportive housing program (as author-
ized under subtitle C of title IV of such Act); the section
8 moderate rehabilitation single room occupancy program
(as authorized under the United States Housing Act of
1937, as amended) to assist homeless individuals pursuant
to section 441 of the Stewart B. McKinney Homeless As-
sistance Act; and the shelter plus care program (as au-
thorized under subtitle F of title IV of such Act),
$823,000,000, to remain available until expended.
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
(INCLUDING TRANSFER OF FUNDS)
For carrying out the Housing Opportunities for Per-
sons with AIDS program, as authorized by the AIDS
Housing 
Opportunity 
Act 
(42 
U.S.C. 
12901),
$171,000,000, to remain available until expended: Pro-
vided, That any amounts previously appropriated for such
program, and any related assets and liabilities, in the ‘‘An-
nual contributions for assisted housing’’ account, shall be
transferred to and merged with amounts in this account.
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FEDERAL HOUSING ADMINISTRATION
FHA—MUTUAL MORTGAGE INSURANCE PROGRAM
ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
During fiscal year 1997, commitments to guarantee
loans to carry out the purposes of section 203(b) of the
National Housing Act, as amended, shall not exceed a loan
principal of $110,000,000,000: Provided, That during fis-
cal year 1997, the Secretary shall sell assigned mortgage
notes having an unpaid principal balance of up to
$2,000,000,000, which notes were originally insured under
section 203(b) of the National Housing Act: Provided fur-
ther, That the Secretary may use the amount of any nega-
tive subsidy resulting from the sale of such assigned mort-
gage notes during fiscal year 1997 for the purposes in-
cluded under this heading.
During fiscal year 1997, obligations to make direct
loans to carry out the purposes of section 204(g) of the
National Housing Act, as amended, shall not exceed
$200,000,000: Provided, That the foregoing amount shall
be for loans to nonprofit and governmental entities in con-
nection with sales of single family real properties owned
by the Secretary and formerly insured under section 203
of such Act.
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For administrative expenses necessary to carry out
the 
guaranteed 
and 
direct 
loan 
program,
Ω22æ$341,595,000 $350,595,000, to be derived from the
FHA-mutual mortgage insurance guaranteed loans receipt
account, of which not to exceed Ω23æ$334,483,000
$343,483,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed $7,112,000 shall be transferred to the appropria-
tion for the Office of Inspector General.
FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
For the cost of guaranteed loans, as authorized by
sections 238 and 519 of the National Housing Act (12
U.S.C. 1715z–3 and 1735c), including the cost of loan
guarantee modifications (as that term is defined in section
502 of the Congressional Budget Act of 1974, as amend-
ed) $85,000,0000, to remain available until expended:
Provided, That these funds are available to subsidize total
loan principal, any part of which is to be guaranteed, of
up to $17,400,000,000: Provided further, That during fis-
cal year 1997, the Secretary shall sell assigned notes hav-
ing an unpaid principal balance of up to $2,500,000,000,
which notes are held by the Secretary under the General
Insurance and Special Risk Insurance funds: Provided fur-
ther, That any amounts made available in any prior appro-
HR 3666 PP
priations Act for the cost (as such term is defined in sec-
tion 502 of the Congressional Budget Act of 1974) of
guaranteed loans that are obligations of the funds estab-
lished under section 238 or 519 of the National Housing
Act that have not been obligated or that are deobligated
shall be available to the Secretary of Housing and Urban
Development in connection with the making of such guar-
antees and shall remain available until expended, notwith-
standing the expiration of any period of availability other-
wise applicable to such amounts.
Gross obligations for the principal amount of direct
loans, as authorized by sections 204(g), 207(l), 238(a),
and 519(a) of the National Housing Act, shall not exceed
$120,000,000; of which not to exceed $100,000,000 shall
be for bridge financing in connection with the sale of mul-
tifamily real properties owned by the Secretary and for-
merly insured under such Act; and of which not to exceed
$20,000,000 shall be for loans to nonprofit and govern-
mental entities in connection with the sale of single-family
real properties owned by the Secretary and formerly in-
sured under such Act.
In addition, for administrative expenses necessary to
carry out the guaranteed and direct loan programs,
Ω24æ$202,470,000, of which $198,299,000 $207,470,000,
of which $203,299,000 shall be transferred to the appro-
HR 3666 PP
priation for Ω25ædepartmental salaries and expenses; and
of which $4,171,000 shall be transferred to the appropria-
tion for the Office of Inspector General.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN
GUARANTEE PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
During fiscal year 1997, new commitments to issue
guarantees to carry out the purposes of section 306 of the
National Housing Act, as amended (12 U.S.C. 1721(g)),
shall not exceed $110,000,000,000.
For administrative expenses necessary to carry out
the guaranteed mortgage-backed securities program,
Ω26æ$9,101,000 $9,383,000, to be derived from the
GNMA-guarantees of mortgage-backed securities guaran-
teed loan receipt account, of which not to exceed
Ω27æ$9,101,000 $9,383,000 shall be transferred to the ap-
propriation for Ω28ædepartmental salaries and expenses.
POLICY DEVELOPMENT AND RESEARCH
RESEARCH AND TECHNOLOGY
For contracts, grants, and necessary expenses of pro-
grams of research and studies relating to housing and
urban problems, not otherwise provided for, as authorized
by title V of the Housing and Urban Development Act
of 1970, as amended (12 U.S.C. 1701z–1 et seq.), includ-
HR 3666 PP
ing carrying out the functions of the Secretary under sec-
tion 1(a)(1)(i) of Reorganization Plan No. 2 of 1968,
$34,000,000, to remain available until September 30,
1998.
FAIR HOUSING AND EQUAL OPPORTUNITY
FAIR HOUSING ACTIVITIES
For contracts, grants, and other assistance, not oth-
erwise provided for, as authorized by title VIII of the Civil
Rights Act of 1968, as amended by the Fair Housing
Amendments Act of 1988, and for contracts with qualified
fair housing enforcement organizations, as authorized by
section 561 of the Housing and Community Development
Act of 1987, as amended, $30,000,000, to remain avail-
able until September 30, 1998, of which $15,000,000 shall
be to carry out activities pursuant to section 561.
MANAGEMENT AND ADMINISTRATION
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For necessary administrative and non-administrative
expenses of the Department of Housing and Urban Devel-
opment, not otherwise provided for, including not to ex-
ceed $7,000 for official reception and representation ex-
penses, Ω29æ$962,558,000 (reduced by $1,411,000) (re-
duced
by
$42,000,000)
$976,840,000, 
of 
which
Ω30æ$532,782,000 $546,782,000 shall be provided from
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the various funds of the Federal Housing Administration,
Ω31æ$9,101,000 $9,383,000 shall be provided from funds
of the Government National Mortgage Association, and
$675,000 shall be provided from the Community Develop-
ment Grants Program account.
OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $52,850,000, of which
$11,283,000 shall be provided from the various funds of
the Federal Housing Administration and $5,000,000 shall
be Ω32æprovided transferred from the amount earmarked
for Operation Safe Home in the Drug elimination grants
for low income housing account.
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For carrying out the Federal Housing Enterprise Fi-
nancial 
Safety 
and 
Soundness 
Act 
of 
1992,
Ω33æ$14,895,000 $15,751,000, to remain available until
expended, from the Federal Housing Enterprise Oversight
Fund: Provided, That such amounts shall be collected by
the Director as authorized by section 1316(a) and (b) of
such Act, and deposited in the Fund under section 1316(f)
of such Act.
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ADMINISTRATIVE PROVISIONS
Ω34æSEC. 201. MINIMUM RENTS.—Notwithstanding
section 3(a) and 8(o)(2) of the United States Housing Act
of 1937, as amended, for fiscal year 1997—
(1) public housing agencies shall require each
family who is assisted under the certificate or mod-
erate rehabilitation program under section 8 of such
Act to pay a minimum monthly rent of up to $25;
(2) public housing agencies shall reduce the
monthly assistance payment on behalf of each family
who is assisted under the voucher program under
section 8 of such Act so that the family pays a mini-
mum monthly rent of up to $25;
(3) with respect to housing assisted under other
programs for rental assistance under section 8 of
such Act, the Secretary shall require each family
who is assisted under such program to pay a mini-
mum monthly rent of up to $25; and
(4) public housing agencies shall require each
family who is assisted under the public housing pro-
gram (including public housing for Indian families)
to pay a minimum monthly rent of up to $25.
SEC. 201. EXTENDERS.—(a) PUBLIC HOUSING FUND-
ING FLEXIBILITY.—Section 201(a)(2) of the Departments of
Veterans Affairs and Housing and Urban Development, and
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Independent Agencies Appropriations Act, 1996 is amended
by striking ‘‘1996’’ and inserting ‘‘1997’’.
(b) ONE-FOR-ONE REPLACEMENT OF PUBLIC AND IN-
DIAN HOUSING.—Section 1002(d) of Public Law 104–19 is
amended by striking ‘‘before September 30, 1996’’ and in-
serting ‘‘on or before September 30, 1997’’.
(c) PUBLIC AND ASSISTED HOUSING RENTS, INCOME
ADJUSTMENTS, AND PREFERENCES.—(1) Section 402(a) of
the Balanced Budget Downpayment Act, I is amended by
inserting after ‘‘1995’’ the following: ‘‘, and effective for fis-
cal year 1997’’.
(2) Section 402(f) of such Act is amended by striking
‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and
1997’’.
(3) The second sentence of section 230 of the Depart-
ments of Veterans Affairs and Housing and Urban Develop-
ment, and Independent Agencies Appropriations Act, 1996
is amended by inserting before the period the following:
‘‘during the entire time the family receives assistance under
the United States Housing Act of 1937’’.
(d) APPLICABILITY TO IHAS.—In accordance with
section 201(b)(2) of the United States Housing Act of 1937,
the amendments made by subsections (a), (b), and (c) shall
apply to public housing developed or operated pursuant to
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a contract between the Secretary of Housing and Urban De-
velopment and an Indian housing authority.
(e) STREAMLINING SECTION 8 TENANT-BASED ASSIST-
ANCE.—Section 203(d) of the Departments of Veterans Af-
fairs and Housing and Urban Development, and Independ-
ent Agencies Appropriations Act, 1996 is amended by strik-
ing ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and
1997’’.
(f) SECTION 8 FAIR MARKET RENTALS AND DELAY IN
REISSUANCE.—(1) The first sentence of section 403(a) of
the Balanced Budget Downpayment Act, I, is amended by
striking ‘‘1996’’ and inserting ‘‘1997’’.
(2) Section 403(c) of such Act is amended—
(A) by striking ‘‘fiscal year 1996’’ and inserting
‘‘fiscal years 1996 and 1997’’; and
(B) by inserting before the semicolon the follow-
ing: ‘‘for assistance made available during fiscal year
1996 and October 1, 1997 for assistance made avail-
able during fiscal year 1997’’.
(g) 
SECTION
RENT
ADJUSTMENTS.—Section
8(c)(2)(A) of the United States Housing Act of 1937 is
amended—
(1) in the third sentence by inserting ‘‘, fiscal
year 1996 prior to April 26, 1996, and fiscal year
1997’’ after ‘‘1995’’;
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(2) in the fourth sentence, by striking ‘‘For’’ and
inserting ‘‘Except for assistance under the certificate
program, for’’;
(3) after the fourth sentence, by inserting the fol-
lowing new sentence: ‘‘In the case of assistance under
the certificate program, 0.01 shall be subtracted from
the amount of the annual adjustment factor (except
that the factor shall not be reduced to less than 1.0),
and the adjusted rent shall not exceed the rent for a
comparable unassisted unit of similar quality, type,
and age in the market area.’’; and
(4) in the last sentence, by—
(A) striking ‘‘sentence’’ and inserting ‘‘two
sentences’’; and
(B) inserting ‘‘, fiscal year 1996 prior to
April 26, 1996, and fiscal year 1997’’ after
‘‘1995’’.
SEC. 202. ADMINISTRATIVE FEES.—Notwithstand-
ing section 8(q) of the United States Housing Act of 1937,
as amended—
(a) The Secretary shall establish fees for the cost of
administering the certificate, voucher and moderate reha-
bilitation programs.
(1)(A) For fiscal year 1997, the fee for each
month for which a dwelling unit is covered by an as-
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sistance contract shall be 7.5 percent of the base
amount, adjusted as provided herein, in the case of
an agency that, on an annual basis, is administering
a program of no more than 600 units, and 7 percent
of the base amount, adjusted as provided herein, for
each additional unit above 600.
(B) The base amount shall be the higher of—
(i) the fair market rental for fiscal year
1993 for a 2-bedroom existing rental dwelling
unit in the market area of the agency; and
(ii) such fair market rental for fiscal year
1994, but not more than 103.5 percent of the
amount determined under clause (i).
(C) The base amount shall be adjusted to re-
flect changes in the wage data or other objectively
measurable data that reflect the costs of administer-
ing the program during fiscal year 1996; except that
the Secretary may require that the base amount be
not less than a minimum amount and not more than
a maximum amount.
(2) For subsequent fiscal years, the Secretary
shall publish a notice in the Federal Register, for
each geographic area, establishing the amount of the
fee that would apply for the agencies administering
the program, based on changes in wage data or
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other objectively measurable data that reflect the
cost of administering the program, as determined by
the Secretary.
(3) The Secretary may increase the fee if nec-
essary to reflect higher costs of administering small
programs and programs operating over large geo-
graphic areas.
(4) The Secretary may decrease the fee for
PHA-owned units.
(b) Beginning in fiscal year 1997 and thereafter, the
Secretary shall also establish reasonable fees (as deter-
mined by the Secretary) for—
(1) the costs of preliminary expenses, in the
amount of $500, for a public housing agency, but
only in the first year it administers a tenant-based
assistance program under the United States Hous-
ing Act of 1937 and only if, immediately before the
effective date of this Act, it was not administering
a tenant-based assistance program under the 1937
Act (as in effect immediately before the effective
date of this Act), in connection with its initial incre-
ment of assistance received;
(2) the costs incurred in assisting families who
experience difficulty (as determined by the Sec-
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retary) in obtaining appropriate housing under the
program; and
(3) extraordinary costs approved by the Sec-
retary.
SEC. 203. SINGLE
FAMILY
ASSIGNMENT
PRO-
GRAM.—Section 407(c) of the Balanced Budget Downpay-
ment Act, I (12 U.S.C. 1710 note), is amended by striking
‘‘October 1, 1996’’ and inserting ‘‘October 1, 1997’’.
SEC. 204. FLEXIBLE AUTHORITY.—During fiscal
year 1997 and fiscal years thereafter, the Secretary may
manage and dispose of multifamily properties owned by
the Secretary and multifamily mortgages held by the Sec-
retary on such terms and conditions as the Secretary may
determine, notwithstanding any other provision of law.
Ω35æSEC. 205. USE
OF AVAILABLE FUNDING
FOR
HOMEOWNERSHIP.—Up to $20,000,000 of amounts of unob-
ligated balances that are or become available from the Nehe-
miah Housing Opportunity Grant program, repealed under
section 289(b) of the Cranston-Gonzalez National Affordable
Housing Act, Public Law 101–625, shall be available for
use for activities relating to promotion and implementation
of homeownership in targeted geographic areas, as deter-
mined by the Secretary.
Ω36æSEC. 206. DEBT FORGIVENESS.—The Secretary
of Housing and Urban Development shall cancel the indebt-
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edness of the Greene County Rural Health Center relating
to a loan received under the Public Facility Loan program
to establish the health center (Loan #Mis–22–PFL0096).
The Greene County Rural Health Center is hereby relieved
of all liability to the Federal Government for such loan and
any fees and charges payable in connection with such loan.
Ω37æSEC. 207. FLEXIBLE SUBSIDY FUND.—From the
fund established by section 236(g) of the National Housing
Act, as amended, all uncommitted balances of excess rental
charges as of September 30, 1996, and any collection during
fiscal year 1997, shall be transferred, as authorized under
such section, to the fund authorized under section 201(j)
of the Housing and Community Development Amendments
of 1978, as amended.
Ω38æSEC. 208. RENTAL HOUSING ASSISTANCE.—The
limitation otherwise applicable to the maximum payments
that may be required in any fiscal year by all contracts
entered into under section 236 of the National Housing Act
(12 U.S.C. 1715z–1) is reduced in fiscal year 1997 by not
more than $2,000,000 in uncommitted balances of author-
izations provided for this purpose in appropriations Acts.
Ω39æSEC. 209. D.C. MODERNIZATION FUNDING.—Not-
withstanding the provisions of section 14(k)(5)(D) of the
United States Housing Act of 1937, the withheld mod-
ernization funds that became credited in fiscal years 1993,
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1994 and 1995, due to the troubled status of the former De-
partment of Public and Assisted Housing of the District
of Columbia, shall be made available without diminution
to its successor, the District of Columbia Housing Author-
ity, at such time between the effective date of this Act and
the end of fiscal year 1998 as the District of Columbia
Housing Authority is no longer deemed ‘‘mod-troubled’’
under section 6(j)(2)(A)(i) of such Act; after fiscal year
1998, the District of Columbia Housing Authority shall be-
come subject to the provisions of section 14(k)(5)(D) of such
Act should it remain mod-troubled.
Ω40æSEC. 210. FINANCING ADJUSTMENT FACTORS.—
Fifty per centum of the amounts of budget authority, or
in lieu thereof 50 per centum of the cash amounts associated
with such budget authority, that are recaptured from
projects described in section 1012(a) of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988
(Public Law 100–628, 102 Stat. 3224, 3268) shall be re-
scinded, or in the case of cash, shall be remitted to the
Treasury, and such amounts of budget authority or cash
recaptured and not rescinded or remitted to the Treasury
shall be used by State housing finance agencies or local gov-
ernments or local housing agencies with projects approved
by the Secretary of Housing and Urban Development for
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which settlement occurred after January 1, 1992, in accord-
ance with such section.
Ω41æSEC. 211. SECTION 8 CONTRACT RENEWAL AUTHORITY.
(a) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘expiring contract’’ means a con-
tract for project-based assistance under section 8 of
the United States Housing Act of 1937 that expires
during fiscal year 1997;
(2) the term ‘‘family’’ has the same meaning as
in section 3(b) of the United States Housing Act of
1937;
(3) the term ‘‘multifamily housing project’’
means a property consisting of more than 4 dwelling
units that is covered in whole or in part by a con-
tract for project-based assistance under section 8 of
the United States Housing Act of 1937;
(4) the term ‘‘owner’’ has the same meaning as
in section 8(f) of the United States Housing Act of
1937;
(5) the term ‘‘project-based assistance’’ means
rental assistance under section 8 of the United States
Housing Act of 1937 that is attached to a multifam-
ily housing project;
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(6) the term ‘‘public agency’’ means a State
housing finance agency, a local housing agency, or
other agency with a public purpose and status;
(7) the term ‘‘Secretary’’ means the Secretary of
Housing and Urban Development; and
(8) the term ‘‘tenant-based assistance’’ has the
same meaning as in section 8(f) of the United States
Housing Act of 1937.
(b) SECTION 8 CONTRACT RENEWAL AUTHORITY.—
(1) 
IN
GENERAL.—Notwithstanding 
section
405(a) of the Balanced Budget Downpayment Act, I,
upon the request of the owner of a multifamily hous-
ing project that is covered by an expiring contract,
the Secretary shall use amounts made available for
the renewal of assistance under section 8 of the Unit-
ed States Housing Act of 1937 to renew the expiring
contract as project-based assistance for a period of not
more than 1 year, at rent levels that are equal to
those under the expiring contract as of the date on
which the contract expires, only if those rent levels do
not exceed 120 percent of fair market rent for the
market area in which the project is located.
(2) EXEMPTION FOR STATE AND LOCAL HOUSING
AGENCY PROJECTS.—Notwithstanding paragraph (1),
upon the expiration of an expiring contract with rent
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levels that exceed the percentage described in that
paragraph, if the Secretary determines that the pri-
mary financing or mortgage insurance for the multi-
family housing project that is covered by that expir-
ing contract was provided by a public agency, the
Secretary shall, upon the request of the public agency,
renew the expiring contract—
(A) for a period of not more than 1 year;
and
(B) at rent levels that are equal to those
under the expiring contract as of the date on
which the contract expires.
(3) INELIGIBLE CONTRACTS.—
(A) PARTICIPATION IN DEMONSTRATION.—
For contracts covering a multifamily housing
project that expire during fiscal year 1997 with
rent levels that exceed the percentage described in
paragraph (1), the Secretary shall, at the request
of the owner of the project, include that multi-
family housing project in the demonstration pro-
gram under section 212 of this Act. The Sec-
retary shall ensure, to the maximum extent prac-
ticable, that a project in the demonstration is
maintained as affordable for low-income families
for the maximum feasible period of time.
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(B) EFFECT
OF
MATERIAL
ADVERSE
AC-
TIONS
OR
OMISSIONS.—Notwithstanding para-
graph (1) or any other provision of law, the Sec-
retary shall not renew an expiring contract if
the Secretary determines that the owner of the
multifamily housing project has engaged in ma-
terial adverse financial or managerial actions or
omissions with regard to the project (or with re-
gard to other similar projects if the Secretary de-
termines that such actions or omissions con-
stitute a pattern of mismanagement that would
warrant suspension or debarment by the Sec-
retary).
(C) TRANSFER OF PROPERTY.—For prop-
erties disqualified from the demonstration pro-
gram because of actions by an owner or pur-
chaser in accordance with subparagraph (B), the
Secretary shall establish procedures to facilitate
the voluntary sale or transfer of the property,
with a preference for tenant organizations and
tenant-endorsed community-based nonprofit and
public agency purchasers meeting such reason-
able qualifications as may be established by the
Secretary.
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(4) TENANT PROTECTIONS.—To the extent pro-
vided in advance in an appropriations Act, any fam-
ily residing in an assisted unit in a multifamily
housing project that is covered by an expiring con-
tract that is not renewed, shall be offered tenant-based
assistance before the date on which the contract ex-
pires or is not renewed.
SEC. 212. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.
(a) IN GENERAL.—
(1) REPEAL.—
(A) IN GENERAL.—Section 210 of the De-
partments of Veterans Affairs and Housing and
Urban Development and Independent Agencies
Appropriations Act, 1996 (110 Stat. 1321) is re-
pealed.
(B) EXCEPTION.—Notwithstanding the re-
peal under subparagraph (A), amounts made
available under section 210(f) the Departments
of Veterans Affairs and Housing and Urban De-
velopment and Independent Agencies Appropria-
tions Act, 1996 shall remain available for the
demonstration 
program 
under 
this 
section
through the end of fiscal year 1997.
(2) SAVINGS PROVISIONS.—Nothing in this sec-
tion shall be construed to affect any commitment en-
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tered into before the date of enactment of this Act
under the demonstration program under section 210
of the Departments of Veterans Affairs and Housing
and Urban Development and Independent Agencies
Appropriations Act, 1996.
(3) DEFINITIONS.—For purposes of this sec-
tion—
(A) the term ‘‘affordable’’ means, with re-
spect to a dwelling unit, a unit for which the
rents are restricted to the rent levels established
under a mortgage restructuring;
(B) the term ‘‘demonstration program’’
means the program established under subsection
(b);
(C) the term ‘‘designee’’ means a third-
party public agency that enters into an arrange-
ment with the Secretary under subsection (b)(3);
(D) the term ‘‘expiring contract’’ means a
contract for project-based assistance under sec-
tion 8 of the United States Housing Act of 1937
that expires during fiscal year 1997;
(E) the term ‘‘family’’ has the same mean-
ing as in section 3(b) of the United States Hous-
ing Act of 1937;
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(F) the term ‘‘multifamily housing project’’
means a property consisting of more than 4
dwelling units that is covered in whole or in
part by a contract for project-based assistance;
(G) the term ‘‘owner’’ has the same meaning
as in section 8(f) of the United States Housing
Act of 1937;
(H) the term ‘‘project-based assistance’’
means rental assistance under section 8 of the
United States Housing Act of 1937 that is at-
tached to a multifamily housing project;
(I) the term ‘‘Secretary’’ means the Sec-
retary of Housing and Urban Development; and
(J) the term ‘‘tenant-based assistance’’ has
the same meaning as in section 8(f) of the Unit-
ed States Housing Act of 1937.
(b) DEMONSTRATION AUTHORITY.—
(1) IN GENERAL.—The Secretary shall admin-
ister a demonstration program with respect to multi-
family projects—
(A) whose owners agree to participate;
(B) with rents on units assisted under sec-
tion 8 of the United States Housing Act of 1937
that are, in the aggregate, in excess of 120 per-
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cent of the fair market rent of the market area
in which the project is located; and
(C) the mortgages of which are insured
under the National Housing Act.
(2) PURPOSE.—The 
demonstration 
program
shall be designed to test the feasibility and desirabil-
ity of—
(A) ensuring, to the maximum extent prac-
ticable, that the debt service and operating ex-
penses, including adequate reserves, attributable
to such multifamily projects can be supported at
the comparable market rent with or without
mortgage insurance under the National Housing
Act and with or without additional subsidies;
(B) utilizing project-based assistance, while
taking into account the capital needs of the
projects and the need for assistance to low- and
very low-income families in such projects; and
(C) preserving low-income rental housing
affordability and availability while reducing the
long-term cost of project-based assistance.
(3) DESIGNEES.—In carrying out the dem-
onstration program, the Secretary may enter into ar-
rangements with one or more third-party public enti-
ties, under which the Secretary may provide for the
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assumption by the designee (by delegation, by con-
tract, or otherwise) of some or all of the functions, ob-
ligations, and benefits of the Secretary.
(c) GOALS.—
(1) IN GENERAL.—The Secretary shall carry out
the demonstration program in a manner that will
protect the financial interests of the Federal Govern-
ment through debt restructuring and subsidy reduc-
tion and, in the least costly fashion, address the goals
of—
(A) maintaining existing affordable housing
stock in a decent, safe, and sanitary condition;
(B) minimizing the involuntary displace-
ment of tenants;
(C) taking into account housing market
conditions;
(D) encouraging responsible ownership and
management of property;
(E) minimizing any adverse income tax
impact on property owners; and
(F) minimizing any adverse impacts on
residential neighborhoods and local communities.
(2) BALANCE OF COMPETING GOALS.—In deter-
mining the manner in which a mortgage is to be re-
structured or a subsidy reduced under this subsection,
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the Secretary may balance competing goals relating to
individual projects in a manner that will further the
purposes of this section.
(d) JOINT VENTURE ARRANGEMENTS.—
(1) IN
GENERAL.—In carrying out the dem-
onstration program, the Secretary may enter into
joint venture arrangements with designees, under
which the Secretary may provide for the assumption
by the third parties (by delegation, by contract, or
otherwise) of some or all of the functions, obligations,
and benefits of the Secretary.
(2) PREFERENCE.—In entering into any ar-
rangement under this subsection, the Secretary shall
give preference to State housing finance agencies and
local housing agencies to act as designees to the extent
such agencies are determined to be qualified by the
Secretary.
(3) PUBLIC AGENCIES.—Each joint venture ar-
rangement entered into under this subsection shall in-
clude a public agency as the primary partner.
(4) DESIGNEE PARTNERSHIPS.—For purposes of
any joint venture arrangement under this subsection,
designees are encouraged to develop partnerships with
each other, and to contract or subcontract with other
entities, including—
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(A) public housing agencies;
(B) financial institutions;
(C) mortgage servicers;
(D) nonprofit and for-profit housing orga-
nizations;
(E) the Federal National Mortgage Associa-
tion;
(F) the Federal Home Loan Mortgage Cor-
poration;
(G) Federal Home Loan Banks; and
(H) other State or local mortgage insurance
companies or bank lending consortia.
(e) LONG-TERM AFFORDABILITY.—After the renewal of
a section 8 contract pursuant to a restructuring under this
section, the owner shall accept each offer to renew the section
8 contract, for a period of 20 years from the date of the
renewal under the demonstration, if the offer to renew is
on terms and conditions, as agreed to by the Secretary or
designee and the owner under a restructuring.
(f) PROCEDURES.—
(1) NOTICE OF PARTICIPATION IN DEMONSTRA-
TION.—Not later than 45 days before the date of expi-
ration of an expiring contract (or such later date, as
determined by the Secretary, for good cause), the
owner of the multifamily housing project covered by
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that expiring contract shall notify the Secretary or
designee of the owner’s intent to participate in the
demonstration program.
(2) DEMONSTRATION CONTRACT.—Upon receipt
of a notice under paragraph (1), the owner and the
Secretary or designee shall enter into a demonstration
contract, which shall provide for initial section 8
project-based rents at the same rent levels as those
under the expiring contract or, if practical, the budg-
et-based rent to cover debt service, reasonable operat-
ing expenses (including reasonable and appropriate
services), and a reasonable return on equity, as deter-
mined solely by the Secretary. The demonstration
contract shall be for the minimum term necessary for
the rents and mortgages of the multifamily housing
project to be restructured under the demonstration
program.
(g) HUD-OWNED AND HUD-HELD MORTGAGES.—For
purposes of carrying out the demonstration program—
(1) the Secretary may manage and dispose of
multifamily properties owned by the Secretary and
multifamily mortgages held by the Secretary, on such
terms and conditions as the Secretary may determine,
without regard to any other provision of law; and
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(2) as provided under subsection (b)(3), the Sec-
retary may delegate to one or more designees the au-
thority to carry out some or all of the functions and
responsibilities of the Secretary in connection with
mortgages held by the Secretary under the National
Housing Act.
(h) DEMONSTRATION ACTIONS.—For purposes of car-
rying out the demonstration program, and in order to en-
sure that contract rights are not abrogated, subject to such
third party consents as are necessary (if any), including
consent by the Government National Mortgage Association
if it owns a mortgage insured by the Secretary, consent by
an issuer under the mortgage-backed securities program of
the Association, subject to the responsibilities of the issuer
to its security holders and the Association under such pro-
gram, and consent by parties to any contractual agreement
which the Secretary proposes to modify or discontinue, the
Secretary or, except with respect to paragraph (2), designee,
shall take not less than 1 of the actions specified in para-
graphs (6), (7), and (8) and may take any of the following
actions:
(1) REMOVAL OF RESTRICTIONS.—
(A) IN
GENERAL.—Notwithstanding any
other provision of law, and subject to the agree-
ment of the owner of the project and after con-
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sultation with the tenants of the project, the Sec-
retary or designee may remove, relinquish, extin-
guish, modify, or agree to the removal of any
mortgage, regulatory agreement, project-based as-
sistance contract, use agreement, or restriction
that had been imposed or required by the Sec-
retary, including restrictions on distributions of
income which the Secretary or designee deter-
mines would interfere with the ability of the
project to operate without above-market rents.
(B) ACCUMULATED RESIDUAL RECEIPTS.—
The Secretary or designee may require an owner
of a property assisted under the section 8 new
construction/substantial rehabilitation program
under the United States Housing Act of 1937 to
apply any accumulated residual receipts toward
effecting the purposes of this section.
(2) REINSURANCE.—With respect to not more
than 5,000 units during fiscal year 1997, the Sec-
retary may enter into contracts to purchase reinsur-
ance, or enter into participations or otherwise trans-
fer economic interest in contracts of insurance or in
the premiums paid, or due to be paid, on such insur-
ance to the designee, on such terms and conditions as
the Secretary may determine.
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(3) INDUCE
PARTICIPATION
OF
THIRD
PAR-
TIES.—Notwithstanding any other provision of law,
of amounts made available under appropriations
Acts, including amounts made available under this
section, the Secretary or designee may enter into such
agreements, provide such concessions, incur such costs,
make such grants (including grants to cover all or a
portion of the rehabilitation costs for a project) and
other payments, and provide other valuable consider-
ation, as may reasonably be necessary to induce par-
ticipation of owners, lenders, servicers, third parties,
and other entities in the demonstration program, in-
cluding the use of fees for contract administration
under section 8 of the United States Housing Act of
1937 for purposes of any contract restructured or re-
newed under the demonstration program.
(4) FULL OR PARTIAL PAYMENT OF CLAIM.—Not-
withstanding any other provision of law, the Sec-
retary may make a full payment of claim or partial
payment of claim prior to default.
(5) CREDIT ENHANCEMENT.—
(A) IN
GENERAL.—The Secretary or des-
ignee may provide FHA multifamily mortgage
insurance, reinsurance, or other credit enhance-
ment alternatives, including retaining the exist-
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ing FHA mortgage insurance on a restructured
first mortgage at market value or using the mul-
tifamily risk-sharing mortgage programs, as pro-
vided under section 542 of the Housing and
Community Development Act of 1992.
(B) EFFECT OF LIMITATIONS.—Any limita-
tions on the number of units available for mort-
gage insurance under section 542 shall not apply
to insurance issued for purposes of the dem-
onstration program.
(C) MAXIMUM PERCENTAGE.—During fiscal
year 1997, not more than 10 percent of multi-
family housing projects with expiring contracts
may be restructured without FHA insurance,
unless otherwise agreed by the owner of a project.
(D) CREDIT SUBSIDY.—Subject to the fund-
ing restrictions under subsection (l), any credit
subsidy costs of providing mortgage insurance
shall be paid from the General Insurance Fund
and the Special Risk Insurance Fund.
(6) MORTGAGE RESTRUCTURING.—
(A) IN
GENERAL.—The Secretary or des-
ignee may restructure mortgages to provide a re-
structured first mortgage to cover debt service
and operating expenses at the market rent, and
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a second mortgage equal to the difference between
the restructured first mortgage and the mortgage
balance of the eligible multifamily housing
project at the time of restructuring.
(B) INTEREST
RATE
ON
SECOND
MORT-
GAGE.—The second mortgage shall bear interest
at a rate not to exceed the applicable Federal
rate for a term not to exceed 40 years.
(C) TIMING
OF
PAYMENTS.—If the first
mortgage remains outstanding, payments of in-
terest and principal on the second mortgage shall
be made from all excess project income only after
the payment of all reasonable and necessary op-
erating expenses (including deposits in a reserve
for replacement), debt service on the first mort-
gage, and such other expenditures as may be ap-
proved by the Secretary.
(D) ASSUMPTION OF SECOND MORTGAGE.—
The second mortgage shall be assumable by any
subsequent purchaser of the multifamily housing
project.
(E) DISPOSITION OF PROPERTY.—The bal-
ance of the principal and accrued interest due
under the second mortgage shall be fully payable
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upon disposition of the property, unless the
mortgage is assumed under subparagraph (D).
(F) SECOND MORTGAGE REPAYMENT.—The
owner shall begin repayment of the second mort-
gage upon full payment of the first mortgage in
equal monthly installments in an amount equal
to the monthly principal and interest payments
formerly paid under the first mortgage.
(G) FAILURE TO COMPLY.—The principal
and interest of a second mortgage shall be imme-
diately due and payable upon a finding by the
Secretary that an owner has failed to materially
comply with this section or any applicable re-
quirement of the United States Housing Act of
1937 in relation to the project at issue.
(H) CREDIT SUBSIDY.—Subject to the fund-
ing restrictions under subsection (l), any credit
subsidy costs of providing a second mortgage
shall be paid from the General Insurance Fund
and the Special Risk Insurance Fund.
(7) DEBT FORGIVENESS.—The Secretary or des-
ignee, for good cause and at the request of the owner
of a multifamily housing project, may forgive at the
time of the restructuring of a mortgage any portion
of a debt on the project that exceeds the market value
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of the project. In exchange for debt forgiveness under
this paragraph, the project shall remain affordable to
low-income families for a period of 20 years, unless
otherwise provided by the Secretary.
(8) BUDGET-BASED RENTS.—During fiscal year
1997, the Secretary or designee may renew an expir-
ing contract, for a period of not more than 1 year,
at a budget-based rent that covers debt service, reason-
able operating expenses (including all reasonable and
appropriate services), and a reasonable return on eq-
uity, as determined solely by the Secretary, but that
does not exceed the rent levels under the expiring con-
tract. The Secretary may establish a preference under
the demonstration program for budget-based rents for
unique housing projects, such as projects designated
for occupancy by elderly families in rural areas.
(i) COMMUNITY AND TENANT INPUT.—In carrying out
this section, the Secretary shall develop procedures to pro-
vide appropriate and timely notice, including an oppor-
tunity for comment, to officials of the unit of general local
government affected, the community in which the project
is situated, and the tenants of the project.
(j) LIMITATION ON DEMONSTRATION AUTHORITY.—
The Secretary shall carry out the demonstration program
with respect to mortgages not to exceed 50,000 units.
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(k) PRIORITY FOR PARTICIPATION.—The Secretary or
designee shall give priority for participation in the dem-
onstration program to any owner of an eligible multifamily
housing project with an expiring contract for project-based
assistance.
(l) FUNDING.—In addition to the $30,000,000 made
available under section 210 of the Departments of Veterans
Affairs and Housing and Urban Development and Inde-
pendent Agencies Appropriations Act, 1996 (110 Stat.
1321), for the costs (including any credit subsidy costs asso-
ciated with providing direct loans or mortgage insurance)
of modifying and restructuring loans held or guaranteed
by the Federal Housing Administration, as authorized
under this section, $10,000,000, are hereby appropriated,
to remain available until September 30, 1998.
(m) REPORT TO CONGRESS.—
(1) IN GENERAL.—
(A) BIANNUAL REPORTS.—Not less than bi-
annually, the Secretary shall submit to the Con-
gress a report describing and assessing the pro-
grams carried out under the demonstration pro-
gram.
(B) FINAL
REPORT.—Not later than 6
months after the end of the demonstration pro-
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gram, the Secretary shall submit to the Congress
a final report on the demonstration program.
(2) CONTENTS.—Each report submitted under
paragraph (1) shall include—
(A) any findings and recommendations for
legislative action; and
(B) a description of the status of each mul-
tifamily housing project selected for the dem-
onstration program.
(3) CONTENTS OF FINAL REPORT.—The report
submitted under paragraph (1)(B) may include—
(A) with respect to each multifamily hous-
ing project participating in the demonstration
program, information relating to—
(i) the size of the project;
(ii) the geographic locations of the
project, by State and region;
(iii) the physical and financial condi-
tion of the project;
(iv) the occupancy profile of the
project, including the income, family size,
race, and ethnic origin of the tenants, and
the rents paid by those tenants;
(v) a description of actions undertaken
pursuant to this section, including a de-
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Ω43æSEC. 214. INVOLUNTARY
SEPARATIONS.—In
order to avoid or minimize the need for involuntary separa-
tions due to a reduction in force, departmental restructur-
ing, reorganization, transfer of function, or similar action
affecting the Department of Housing and Urban Develop-
ment, the Secretary shall establish a program under which
separation pay, subject to the availability of appropriated
funds, may be offered to encourage employees to separate
from service voluntarily, whether by retirement or resigna-
tion: Provided, That payments to individual employees
shall not exceed $25,000: Provided further, That in addition
to any other payments which it is required to make under
subchapter III of chapter 83 or chapter 84 of title 5, United
States Code, HUD shall remit to the Office of Personnel
Management for deposit in the Treasury of the United
States to the credit of the Civil Service Retirement and Dis-
ability Fund on amount equal to 15 percent of the final
basic pay of each employee who is covered under subchapter
III of chapter 83 or chapter 84 of title 5 to whom a vol-
untary separation incentive has been paid under this para-
graph.
Ω44æSEC. 215. REQUIREMENT FOR HUD TO MAIN-
TAIN PUBLIC NOTICE AND COMMENT RULEMAKING.—The
Secretary of Housing and Urban Development shall main-
tain all current requirements under part 10 of the Depart-
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ment of Housing and Urban Development’s regulations (24
CFR part 10) with respect to the Department’s policies and
procedures for the promulgation and issuance of rules, in-
cluding the use of public participation in the rulemaking
process.
Ω45æSEC. 216. COMMUNITY DEVELOPMENT BLOCK GRANTS.
Section 102(a)(6)(D) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)(6)(D)) is
amended—
(1) in clause (iv), by striking ‘‘or’’ at the end;
(2) in clause (v), by striking the period at the
end and inserting ‘‘; or’’; and
(3) by adding at the end the following new
clause:
‘‘(vi) has entered into a local cooperation
agreement with a metropolitan city that received
assistance under section 106 because of such clas-
sification, and has elected under paragraph (4)
to have its population included with the popu-
lation of the county for the purposes of qualify-
ing as an urban county, except that to qualify
as an urban county under this clause, the county
must—
‘‘(I) have a combined population of not
less than 210,000, excluding any metropoli-
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tan city located in the county that is not re-
linquishing its metropolitan city classifica-
tion, according to the 1990 decennial census
of the Bureau of the Census of the Depart-
ment of Commerce;
‘‘(II) including any metropolitan cities
located in the county, have had a decrease
in population of 10,061 from 1992 to 1994,
according to the estimates of the Bureau of
the Census of the Department of Commerce;
and
‘‘(III) have had a Federal naval instal-
lation that was more than 100 years old
closed by action of the Base Closure and Re-
alignment Commission appointed for 1993
under the Base Closure and Realignment
Act of 1990, directly resulting in a loss of
employment by more than 7,000 Federal
Government civilian employees and more
than 15,000 active duty military personnel,
which naval installation was located within
1 mile of an enterprise community des-
ignated by the Secretary pursuant to section
1391 of the Internal Revenue Code of 1986,
which enterprise community has a popu-
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lation of not less than 20,000, according to
the 1990 decennial census of the Bureau of
the Census of the Department of Com-
merce.’’.
Ω46æSEC. 217. FAIR HOUSING AND FREE SPEECH.
None of the amounts made available under this Act
may be used during fiscal year 1997 to investigate or pros-
ecute under the Fair Housing Act any otherwise lawful ac-
tivity engaged in by one or more persons, including the fil-
ing or maintaining of a nonfrivolous legal action, that is
engaged in solely for the purpose of achieving or preventing
action by a government official or entity, or a court of com-
petent jurisdiction.
Ω47æSEC. 218. MORTGAGE INSURANCE.
None of the funds appropriated under this Act may
be used to give final approval to any proposal to provide
mortgage insurance 
having 
a 
value 
in 
excess 
of
$250,000,000 for any project financing for which may be
guaranteed under section 220 of the National Housing Act
(12 U.S.C. 1715k), unless the Secretary has transmitted to
the President pro tempore of the Senate and the Speaker
of the House the Secretary’s justification for such guarantee
and no final approval shall be given until the justification
has laid before the Congress for a period of not less than
30 days.
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TITLE III
INDEPENDENT AGENCIES
AMERICAN BATTLE MONUMENTS COMMISSION
SALARIES AND EXPENSES
For necessary expenses, not otherwise provided for,
of the American Battle Monuments Commission, including
the acquisition of land or interest in land in foreign coun-
tries; purchases and repair of uniforms for caretakers of
national cemeteries and monuments outside of the United
States and its territories and possessions; rent of office
and garage space in foreign countries; purchase (one for
replacement only) and hire of passenger motor vehicles;
and insurance of official motor vehicles in foreign coun-
tries, 
when 
required 
by 
law 
of 
such 
countries;
$22,265,000, to remain available until expended: Pro-
vided, That where station allowance has been authorized
by the Department of the Army for officers of the Army
serving the Army at certain foreign stations, the same al-
lowance shall be authorized for officers of the Armed
Forces assigned to the Commission while serving at the
same foreign stations, and this appropriation is hereby
made available for the payment of such allowance: Pro-
vided further, That when traveling on business of the Com-
mission, officers of the Armed Forces serving as members
or as Secretary of the Commission may be reimbursed for
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expenses as provided for civilian members of the Commis-
sion: Provided further, That the Commission shall reim-
burse other Government agencies, including the Armed
Forces, for salary, pay, and allowances of personnel as-
signed to it.
DEPARTMENT OF THE TREASURY
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS
FUND PROGRAM ACCOUNT
For grants, loans, and technical assistance to qualify-
ing community development lenders, and administrative
expenses of the Fund, $45,000,000, to remain available
until September 30, 1998, of which $8,000,000 may be
used for the cost of direct loans, and up to $800,000 may
be used for administrative expenses to carry out the direct
loan program: Provided, That the cost of direct loans, in-
cluding the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974: Provided further, That not more than $19,400,000
of the funds made available under this heading may be
used for programs and activities authorized in section 114
of the Community Development Banking and Financial
Institutions Act of 1994.
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CONSUMER PRODUCT SAFETY COMMISSION
SALARIES AND EXPENSES
For necessary expenses of the Consumer Product
Safety Commission, including hire of passenger motor ve-
hicles, services as authorized by 5 U.S.C. 3109, but at
rates for individuals not to exceed the per diem rate equiv-
alent to the rate for GS–18, purchase of nominal awards
to recognize non-Federal officials’ contributions to Com-
mission activities, and not to exceed $500 for official re-
ception and representation expenses, $42,500,000.
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
NATIONAL AND COMMUNITY SERVICE PROGRAMS
OPERATING EXPENSES
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses for the Corporation for Na-
tional and Community Service (referred to in the matter
under this heading as the ‘‘Corporation’’) in carrying out
programs, activities, and initiatives under the National
and Community Service Act of 1990 (referred to in the
matter under this heading as the ‘‘Act’’) (42 U.S.C. 12501
et seq.), Ω48æ$365,000,000
$400,500,000, of which
$265,000,000 shall be available for obligation from Sep-
tember 1, 1997, through September 30, 1998: Provided,
That not more than $25,000,000 shall be available for ad-
ministrative expenses authorized under section 501(a)(4)
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of the Act (42 U.S.C. 12671(a)(4)): Provided further,
That not more than $2,500 shall be for official reception
and representation expenses: Provided further, That not
more than Ω49æ$40,000,000 $59,000,000, to remain avail-
able without fiscal year limitation, shall be transferred to
the National Service Trust account for educational awards
authorized under subtitle D of title I of the Act (42 U.S.C.
12601 et seq.): Provided further, That not more than
Ω50æ$201,000,000 $215,000,000 of the amount provided
under this heading shall be available for grants under the
National Service Trust program authorized under subtitle
C of title I of the Act (42 U.S.C. 12571 et seq.) (relating
to activities including the Americorps program)Ω51æ, of
which not more than $40,000,000 may be used to admin-
ister, reimburse or support any national service program
authorized under section 121(d)(2) of such Act (42 U.S.C.
12581(d)(2)): Provided further, That not more than
Ω52æ$5,000,000 $5,500,000 of the funds made available
under this heading shall be made available for the Points
of Light Foundation for activities authorized under title
III of the Act (42 U.S.C. 12661 et seq.): Provided further,
That no funds shall be available for national service pro-
grams run by Federal agencies authorized under section
121(b) of such Act (42 U.S.C. 12571(b)): Provided fur-
ther, That to the maximum extent feasible, funds appro-
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priated in the preceding proviso shall be provided in a
manner that is consistent with the recommendations of
peer review panels in order to ensure that priority is given
to programs that demonstrate quality, innovation,
replicability, and sustainability: Provided further, That not
more than Ω53æ$17,500,000 $18,000,000 of the funds
made available under this heading shall be available for
the Civilian Community Corps authorized under subtitle
E of title I of the Act (42 U.S.C. 12611 et seq.): Provided
further, 
That 
not 
more 
than 
Ω54æ$41,500,000
$43,000,000 shall be available for school-based and com-
munity-based service-learning programs authorized under
subtitle B of title I of the Act (42 U.S.C. 12521 et seq.):
Provided further, That not more than $30,000,000 shall
be available for quality and innovation activities author-
ized under subtitle H of title I of the Act (42 U.S.C.
12853 et seq.): Provided further, That not more than
$5,000,000 shall be available for audits and other evalua-
tions authorized under section 179 of the Act (42 U.S.C.
12639): Provided further, That no funds from any other
appropriation, or from funds otherwise made available to
the Corporation, shall be used to pay for personnel com-
pensation and benefits, travel, or any other administrative
expense for the Board of Directors, the Office of the Chief
Executive Officer, the Office of the Managing Director,
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the Office of the Chief Financial Officer, the Office of Na-
tional and Community Service Programs, the Civilian
Community Corps, or any field office or staff of the Cor-
poration working on the National and Community Service
or Civilian Community Corps programs: Provided further,
That to the maximum extent practicable, the Corporation
shall increase significantly the level of matching funds and
in-kind contributions provided by the private sector, shall
expand significantly the number of educational awards
provided under subtitle D of title I, and shall reduce the
total Federal costs per participant in all programs.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $2,000,000.
COURT OF VETERANS APPEALS
SALARIES AND EXPENSES
For necessary expenses for the operation of the Unit-
ed States Court of Veterans Appeals as authorized by 38
U.S.C. sections 7251–7292, $9,229,000 Ω55æ(increased
by $1,411,000), of which Ω56æ$634,000 $700,000, to re-
main available until September 30, 1998, shall be avail-
able for the purpose of providing financial assistance as
described, and in accordance with the process and report-
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ing procedures set forth, under this heading in Public Law
102–227.
DEPARTMENT OF DEFENSE—CIVIL
CEMETERIAL EXPENSES, ARMY
SALARIES AND EXPENSES
For necessary expenses, as authorized by law, for
maintenance, operation, and improvement of Arlington
National Cemetery and Soldiers’ and Airmen’s Home Na-
tional Cemetery, including the purchase of one passenger
motor vehicle for replacement only, and not to exceed
$1,000 for official reception and representation expenses,
$11,600,000, to remain available until expended.
ENVIRONMENTAL PROTECTION AGENCY
SCIENCE AND TECHNOLOGY
For science and technology, including research and
development activities, which shall include research and
development activities under the Comprehensive Environ-
mental Response, Compensation, and Liability Act of
1980 (CERCLA), as amended; necessary expenses for per-
sonnel and related costs and travel expenses, including
uniforms, or allowances therefore, as authorized by 5
U.S.C. 5901–5902; services as authorized by 5 U.S.C.
3109, but at rates for individuals not to exceed the per
diem rate equivalent to the rate for GS–18; procurement
of laboratory equipment and supplies; other operating ex-
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penses in support of research and development; construc-
tion, alteration, repair, rehabilitation and renovation of fa-
cilities, 
not 
to 
exceed 
$75,000 
per 
project,
Ω57æ$540,000,000
(reduced
by
$1,500,000)
$545,000,000, which shall remain available until Septem-
ber 30, 1998.
ENVIRONMENTAL PROGRAMS AND MANAGEMENT
For environmental programs and management, in-
cluding necessary expenses, not otherwise provided for, for
personnel and related costs and travel expenses, including
uniforms, or allowances therefore, as authorized by 5
U.S.C. 5901–5902; services as authorized by 5 U.S.C.
3109, but at rates for individuals not to exceed the per
diem rate equivalent to the rate for GS–18; hire of pas-
senger motor vehicles; hire, maintenance, and operation
of aircraft; purchase of reprints; library memberships in
societies or associations which issue publications to mem-
bers only or at a price to members lower than to subscrib-
ers who are not members; construction, alteration, repair,
rehabilitation, and renovation of facilities, not to exceed
$75,000 per project; and not to exceed $6,000 for official
reception 
and 
representation 
expenses,
Ω58æ$1,703,000,000
(increased
by
$1,500,000)
$1,713,000,000, which shall remain available until Septem-
ber 30, 1998.
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OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, and for construction,
alteration, repair, rehabilitation, and renovation of facili-
ties, not to exceed $75,000 per project, $28,500,000.
BUILDINGS AND FACILITIES
For construction, repair, improvement, extension, al-
teration, and purchase of fixed equipment or facilities of,
or for use by, the Environmental Protection Agency,
Ω59æ$107,220,000 $27,220,000, to remain available until
expendedΩ60æ:–Provided, That EPA is authorized to es-
tablish and construct a consolidated research facility at
Research Triangle Park, North Carolina, at a maximum
total construction cost of $232,000,000, and to obligate
such monies as are made available by this Act for this
purpose: Provided further, That EPA is authorized to con-
struct such facility through multi-year contracts incremen-
tally funded through appropriations hereafter made avail-
able for this project: Provided further, That, notwithstand-
ing the previous provisos, for monies obligated pursuant
to this authority, EPA may not obligate monies in excess
of those provided in advance in annual appropriations, and
such contracts shall clearly provide for this limitation.
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HAZARDOUS SUBSTANCE SUPERFUND
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses to carry out the Comprehen-
sive Environmental Response, Compensation, and Liabil-
ity Act of 1980 (CERCLA), as amended, including sec-
tions 111 (c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C.
9611), and for construction, alteration, repair, rehabilita-
tion, and renovation of facilities, not to exceed $75,000
per 
project; 
not 
to 
exceed 
Ω61æ$2,201,200,000
$1,394,245,000 (of which $100,000,000 shall not become
available until September 1, 1997), to remain available
until 
expended, 
consisting 
of 
Ω62æ$1,951,200,000
$1,144,245,000 as authorized by section 517(a) of the
Superfund Amendments and Reauthorization Act of 1986
(SARA), as amended by Public Law 101–508, and
$250,000,000 as a payment from general revenues to the
Hazardous Substance Superfund as authorized by section
517(b) of SARA, as amended by Public Law 101–508:
Provided, That funds appropriated under this heading
may be allocated to other Federal agencies in accordance
with section 111(a) of CERCLA: Provided further, That
$11,000,000 of the funds appropriated under this heading
shall be transferred to the ‘‘Office of Inspector General’’
appropriation to remain available until September 30,
1997: Provided further, That notwithstanding section
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111(m) of CERCLA or any other provision of law, not
to exceed Ω63æ$59,000,000 $64,000,000 of the funds ap-
propriated under this heading shall be available to the
Agency for Toxic Substances and Disease Registry to
carry out activities described in sections 104(i), 111(c)(4),
and 111(c)(14) of CERCLA and section 118(f) of the
Superfund Amendments and Reauthorization Act of 1986:
Provided further, That $35,000,000 of the funds appro-
priated under this heading shall be transferred to the
‘‘Science and technology’’ appropriation to remain avail-
able until September 30, 1998: Provided further, That
none of the funds appropriated under this heading shall
be available for the Agency for Toxic Substances and Dis-
ease Registry to issue in excess of 40 toxicological profiles
pursuant to section 104(i) of CERCLA during fiscal year
1997Ω64æ:–Provided further, That $861,000,000 of the
funds appropriated under this heading shall become avail-
able for obligation only upon the enactment of future ap-
propriations legislation that specifically makes these funds
available
for
obligationΩ65æ:
Provided
further,
That
$1,200,000 of the funds appropriatated under this head-
ing shall be used by the Agency for Toxic Substances and
Disease Registry to conduct a health effects study of the
Toms River Cancer Cluster in the Toms River area in the
State of New Jersey.
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LEAKING UNDERGROUND STORAGE TANK TRUST FUND
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses to carry out leaking under-
ground storage tank cleanup activities authorized by sec-
tion 205 of the Superfund Amendments and Reauthoriza-
tion Act of 1986, and for construction, alteration, repair,
rehabilitation, and renovation of facilities, not to exceed
$75,000 per project, Ω66æ$46,500,000 (increased by
$20,000,000) $60,000,000, to remain available until ex-
pended: Provided, That no more than $7,000,000 shall be
available for administrative expenses: Provided further,
That $577,000 shall be transferred to the ‘‘Office of In-
spector General’’ appropriation to remain available until
September 30, 1997.
OIL SPILL RESPONSE
(INCLUDING TRANSFER OF FUNDS)
For expenses necessary to carry out the Environ-
mental Protection Agency’s responsibilities under the Oil
Pollution Act of 1990, $15,000,000, to be derived from
the Oil Spill Liability trust fund, and to remain available
until expended: Provided, That not more than $8,000,000
of these funds shall be available for administrative ex-
penses.
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STATE AND TRIBAL ASSISTANCE GRANTS
For environmental programs and infrastructure as-
sistance, including capitalization grants for State revolv-
ing 
funds 
and 
performance 
partnership 
grants,
Ω67æ$2,768,207,000 $2,815,207,000, to remain available
until 
expended, 
of 
which 
Ω68æ$1,800,000,000
$1,976,000,000 shall be for making capitalization grants
for State revolving funds to support water infrastructure
financing; $100,000,000 for architectural, engineering,
planning, design, construction and related activities in
connection with the construction of high priority water
and wastewater facilities in the area of the United States-
Mexico Border, after consultation with the appropriate
border commission; $50,000,000 for grants to the State
of Texas, which shall be matched by an equal amount of
State funds from State resources, for the purpose of im-
proving wastewater treatment for colonias; $15,000,000
for grants to the State of Alaska subject to an appropriate
cost share as determined by the Administrator, to address
Ω69æwater supply and wastewater infrastructure needs of
rural and Alaska Native Villages; Ω70æ$129,000,000 for
making grants for the construction of wastewater treat-
ment facilities and the development of groundwater in ac-
cordance with the terms and conditions specified for such
grants
in
the
Report
accompanying
this
Act;
and
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$674,207,000 for grants to States and federally recog-
nized tribes for multi-media or single media pollution pre-
vention, control and abatement and related activities pur-
suant to the provisions set forth under this heading in
Public Law 104–134: Provided, That, from funds appro-
priated under this heading, the Administrator may make
grants to federally recognized Indian governments for the
development of multi-media environmental programs:
Ω71æProvided further, That notwithstanding any other
provision of law, beginning in fiscal year 1997 the Admin-
istrator may make grants to States, from funds available
for obligation in the State under title II of the Federal
Water Pollution Control Act, as amended, for administering
the completion and closeout of the State’s construction
grants program, based on a budget annually negotiated
with 
the 
State: 
Provided 
further, 
That 
of 
the
Ω72æ$1,800,000,000
$1,976,000,000 for capitalization
grants for State revolving funds to support water infra-
structure financing, Ω73æ$450,000,000 $1,275,000,000
shall be for drinking water State revolving fundsΩ74æ, but
if no drinking water State revolving fund legislation is en-
acted by June 1, 1997, these funds shall immediately be
available for making capitalization grants under title VI
of the Federal Water Pollution Control Act, as amended
Ω75æ: Provided further, That the funds made available in
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Public Law 103–327 for a grant to the City of Bangor,
Maine, in accordance with House Report 103–715, shall be
available for a grant to that city for meeting combined
sewer overflow requirements Ω76æ: Provided further, That,
notwithstanding any other provision of law, a State that
did not receive, in fiscal year 1996, grants under title VI
of the Federal Water Pollution Control Act, as amended,
that obligated all the funds allotted to it from the
$725,000,000 that became available for that purpose on Au-
gust 1, 1996, may receive reallotted funds from the fiscal
year 1996 appropriation, provided the State receives such
grants in fiscal year 1997.
WORKING CAPITAL FUND
(INCLUDING TRANSFER OF FUNDS)
There is hereby established in the Treasury a fran-
chise fund pilot to be known as the ‘‘Working capital
fund’’, as authorized by section 403 of Public Law 103–
356, to be available as provided in such section for ex-
penses and equipment necessary for the maintenance and
operation of such administrative services as the Adminis-
trator determines may be performed more advantageously
as central services: Provided, That any inventories, equip-
ment, and other assets pertaining to the services to be pro-
vided by such fund, either on hand or on order, less the
related liabilities or unpaid obligations, and any appropria-
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tions made hereafter for the purpose of providing capital,
shall be used to capitalize such fund: Provided further,
That such fund shall be paid in advance from funds avail-
able to the Agency and other Federal agencies for which
such centralized services are performed, at rates which will
return in full all expenses of operation, including accrued
leave, depreciation of fund plant and equipment, amortiza-
tion of automated data processing (ADP) software and
systems (either acquired or donated), and an amount nec-
essary to maintain a reasonable operating reserve, as de-
termined by the Administrator: Provided further, That
such fund shall provide services on a competitive basis:
Provided further, That an amount not to exceed four per-
cent of the total annual income to such fund may be re-
tained in the fund for fiscal year 1997 and each fiscal
year thereafter, to remain available until expended, to be
used for the acquisition of capital equipment and for the
improvement and implementation of Agency financial
management, ADP, and other support systems: Provided
further, That no later than thirty days after the end of
each fiscal year amounts in excess of this reserve limita-
tion shall be transferred to the Treasury: Provided further,
That such franchise fund pilot shall terminate pursuant
to section 403(f) of Public Law 103–356.
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Ω77æADMINISTRATIVE PROVISION
SEC. 301. Notwithstanding any other provision of
law, funds made available in this Act to the Environmental
Protection Agency for any account, program or project
may be transferred to Science and Technology for nec-
essary research activities, subject to the terms and condi-
tions set forth in the Report accompanying this Act.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF SCIENCE AND TECHNOLOGY POLICY
For necessary expenses of the Office of Science and
Technology Policy, in carrying out the purposes of the Na-
tional Science and Technology Policy, Organization, and
Priorities Act of 1976 (42 U.S.C. 6601 and 6671), hire
of passenger motor vehicles, and services as authorized by
5 U.S.C. 3109, not to exceed $2,500 for official reception
and representation expenses, and rental of conference
rooms in the District of Columbia, $4,932,000.
COUNCIL ON ENVIRONMENTAL QUALITY AND OFFICE OF
ENVIRONMENTAL QUALITY
For necessary expenses to continue functions as-
signed to the Council on Environmental Quality and Office
of Environmental Quality pursuant to the National Envi-
ronmental Policy Act of 1969, the Environmental Quality
Improvement Act of 1970, and Reorganization Plan No.
1 of 1977, Ω78æ$2,250,000 $2,436,000.
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FEDERAL EMERGENCY MANAGEMENT AGENCY
DISASTER RELIEF
For necessary expenses in carrying out the Robert
T. Stafford Disaster Relief and Emergency Assistance Act
(42 
U.S.C. 
5121 
et 
seq.), 
Ω79æ$1,120,000,000
$1,320,000,000, and, notwithstanding 42 U.S.C. 5203, to
become available for obligation on September 30, 1997,
and remain available until expended Ω80æ: Provided, That
no money appropriated for the Federal Emergency Manage-
ment Agency may be expended for the repair of yacht har-
bors or golf courses except for debris removal: Provided fur-
ther, That no money appropriated for the Federal Emer-
gency Management Agency may be expended for tree or
shrub replacement except in public parks: Provided further,
That any funds used for repair of any recreational facilities
shall be limited to debris removal and the repair of rec-
reational buildings only.
DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT
For the cost of direct loans, $1,385,000, as author-
ized by section 319 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.): Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974, as amended:
Provided further, That these funds are available to sub-
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sidize gross obligations for the principal amount of direct
loans not to exceed $25,000,000.
In addition, for administrative expenses to carry out
the direct loan program, $548,000.
SALARIES AND EXPENSES
For necessary expenses, not otherwise provided for,
including hire and purchase of motor vehicles (31 U.S.C.
1343); uniforms, or allowances therefor, as authorized by
5 U.S.C. 5901–5902; services as authorized by 5 U.S.C.
3109, but at rates for individuals not to exceed the per
diem rate equivalent to the rate for GS–18; expenses of
attendance of cooperating officials and individuals at
meetings concerned with the work of emergency prepared-
ness; transportation in connection with the continuity of
Government programs to the same extent and in the same
manner as permitted the Secretary of a Military Depart-
ment under 10 U.S.C. 2632; and not to exceed $2,500
for official reception and representation expenses,
Ω81æ$168,000,000 $166,733,000.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, Ω82æ$4,533,000
$4,673,000.
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EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE
For necessary expenses, not otherwise provided for,
to carry out activities under the National Flood Insurance
Act of 1968, as amended, and the Flood Disaster Protec-
tion Act of 1973, as amended (42 U.S.C. 4001 et seq.),
the Robert T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5121 et seq.), the Earthquake
Hazards Reduction Act of 1977, as amended (42 U.S.C.
7701 et seq.), the Federal Fire Prevention and Control
Act of 1974, as amended (15 U.S.C. 2201 et seq.), the
Defense Production Act of 1950, as amended (50 U.S.C.
App. 2061 et seq.), sections 107 and 303 of the National
Security Act of 1947, as amended (50 U.S.C. 404–405),
and 
Reorganization 
Plan 
No. 
of 
1978,
Ω83æ$209,101,000 $199,101,000.
EMERGENCY FOOD AND SHELTER PROGRAM
To carry out an emergency food and shelter program
pursuant to title III of Public Law 100–77, as amended,
$100,000,000: Provided, That total administrative costs
shall not exceed three and one-half percent of the total
appropriation.
NATIONAL FLOOD INSURANCE FUND
For activities under the National Flood Insurance
Act of 1968, the Flood Disaster Protection Act of 1973,
and the National Flood Insurance Reform Act of 1994,
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not to exceed $20,981,000 for salaries and expenses asso-
ciated with flood mitigation and flood insurance oper-
ations, and not to exceed $78,464,000 for flood mitigation,
including up to $20,000,000 for expenses under section
1366 of the National Flood Insurance Act, which amount
shall be available until September 30, 1998. Ω84æThe first
sentence of section 1376(c) of the National Flood Insurance
Act of 1968, as amended (42 U.S.C. 4026), is amended by
striking all after ‘‘this subchapter’’ and inserting ‘‘such
sums as may be necessary through September 30, 1997 for
studies under this title’’. In fiscal year 1997, no funds in
excess of (1) $47,000,000 for operating expenses, (2)
$335,680,000 for agents’ commissions and taxes, and (3)
$35,000,000 for interest on Treasury borrowings shall be
available from the National Flood Insurance Fund without
prior notice to the Committees on Appropriations. For fis-
cal year 1997, flood insurance rates shall not exceed the
level authorized by the National Flood Insurance Reform
Act of 1994. Ω85æSection 1319 of the National Flood In-
surance Act of 1968, as amended (42 U.S.C. 4026), is
amended by striking out September 30, 1996.’’ and insert-
ing ‘‘September 30, 1997’’.
WORKING CAPITAL FUND
For the establishment of a working capital fund for
the Federal Emergency Management Agency, to be avail-
able without fiscal year limitation, for expenses and equip-
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ment necessary for maintenance and operations of such
administrative services as the Director determines may be
performed more advantageously as central services: Pro-
vided, That any inventories, equipment, and other assets
pertaining to the services to be provided by such fund, ei-
ther on hand or on order, less the related liabilities or un-
paid obligations, and any appropriations made hereafter
for the purpose of providing capital, shall be used to cap-
italize such fund: Provided further, That such fund shall
be reimbursed or credited with advance payments from ap-
plicable appropriations and funds of the Federal Emer-
gency Management Agency, other Federal agencies, and
other sources authorized by law for which such centralized
services are performed, including supplies, materials, and
services, at rates that will return in full all expenses of
operation, including accrued leave, depreciation of fund
plant and equipment, amortization of automated data
processing (ADP) software and systems (either acquired
or donated), and an amount necessary to maintain a rea-
sonable operating reserve as determined by the Director:
Provided further, That income of such fund may be re-
tained, to remain available until expended, for purposes
of the fund: Provided further, That fees for services shall
be established by the Director at a level to cover the total
estimated costs of providing such services, such fees to be
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deposited in the fund shall remain available until expended
for purposes of the fund: Provided further, That such fund
shall terminate in a manner consistent with section 403(f)
of Public Law 103–356.
ADMINISTRATIVE PROVISION
The Director of the Federal Emergency Management
Agency shall promulgate through rulemaking a methodol-
ogy for assessment and collection of fees to be assessed
and collected beginning in fiscal year 1997 applicable to
persons subject to the Federal Emergency Management
Agency’s radiological emergency preparedness regulations.
The aggregate charges assessed pursuant to this section
during fiscal year 1997 shall approximate, but not be less
than, 100 per centum of the amounts anticipated by the
Federal Emergency Management Agency to be obligated
for its radiological emergency preparedness program for
such fiscal year. The methodology for assessment and col-
lection of fees shall be fair and equitable, and shall reflect
the full amount of costs of providing radiological emer-
gency planning, preparedness, response and associated
services. Such fees shall be assessed in a manner that re-
flects the use of agency resources for classes of regulated
persons and the administrative costs of collecting such
fees. Fees received pursuant to this section shall be depos-
ited in the general fund of the Treasury as offsetting re-
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ceipts. Assessment and collection of such fees are only au-
thorized during fiscal year 1997.
GENERAL SERVICES ADMINISTRATION
CONSUMER INFORMATION CENTER FUND
For necessary expenses of the Consumer Information
Center, including services authorized by 5 U.S.C. 3109,
$2,260,000, to be deposited into the Consumer Informa-
tion Center Fund: Provided, That the appropriations, rev-
enues and collections deposited into the fund shall be
available for necessary expenses of Consumer Information
Center activities in the aggregate amount of $7,500,000.
Ω86æAdministrative expenses of the Consumer Informa-
tion
Center
in
fiscal
year
1997
shall
not
exceed
$2,602,000. Appropriations, revenues, and collections ac-
cruing to this fund during fiscal year 1997 in excess of
$7,500,000 shall remain in the fund and shall not be avail-
able for expenditure except as authorized in appropria-
tions ActsΩ87æ:–Provided further, That notwithstanding
any other provision of law, the Consumer Information
Center may accept and deposit to this account, during fis-
cal year 1997, gifts for the purpose of defraying its costs
of printing, publishing, and distributing consumer infor-
mation and educational material; may expend up to
$1,100,000 of those gifts for those purposes, in addition
to amounts otherwise appropriated; and the balance shall
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remain available for expenditure for such purpose to the
extent authorized in subsequent appropriations Acts: Pro-
vided further, That notwithstanding any other provision of
law, the Consumer Information Center may accept and de-
posit to this account, during fiscal year 1997 and hereafter,
gifts for the purpose of defraying its costs of printing, pub-
lishing, and distributing consumer information and edu-
cational materials and undertaking other consumer infor-
mation activities; may expend those gifts for those purposes,
in addition to amounts appropriated or otherwise made
available; and the balance shall remain available for ex-
penditure for such purpose.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
HUMAN SPACE FLIGHT
For necessary expenses, not otherwise provided for,
in the conduct and support of human space flight research
and development activities, including research, develop-
ment, operations, and services; maintenance; construction
of facilities including repair, rehabilitation, and modifica-
tion of real and personal property, and acquisition or con-
demnation of real property, as authorized by law; space
flight, spacecraft control and communications activities in-
cluding operations, production, and services; and pur-
chase, lease, charter, maintenance and operation of mis-
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sion and administrative aircraft, $5,362,900,000, to re-
main available until September 30, 1998.
SCIENCE, AERONAUTICS AND TECHNOLOGY
For necessary expenses, not otherwise provided for,
in the conduct and support of science, aeronautics and
technology research and development activities, including
research, development, operations, and services; mainte-
nance; construction of facilities including repair, rehabili-
tation, and modification of real and personal property, and
acquisition or condemnation of real property, as author-
ized by law; space flight, spacecraft control and commu-
nications activities including operations, production, and
services; and purchase, lease, charter, maintenance and
operation 
of 
mission 
and 
administrative 
aircraft,
Ω88æ$5,662,100,000 $5,762,100,000, to remain available
until September 30, 1998. Chapter VII of Public Law
104–6 is amended under the heading, ‘‘National Aero-
nautics and Space Administration’’ by replacing ‘‘Septem-
ber 30, 1997’’ with ‘‘September 30, 1998’’ and ‘‘1996’’
with ‘‘1997’’.
MISSION SUPPORT
For necessary expenses, not otherwise provided for,
in carrying out mission support for human space flight
programs and science, aeronautical, and technology pro-
grams, including research operations and support; space
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communications activities including operations, production
and services; maintenance; construction of facilities in-
cluding repair, rehabilitation, and modification of facili-
ties, minor construction of new facilities and additions to
existing facilities, facility planning and design, environ-
mental compliance and restoration, and acquisition or con-
demnation of real property, as authorized by law; program
management; personnel and related costs, including uni-
forms or allowances therefor, as authorized by 5 U.S.C.
5901–5902; travel expenses; purchase, lease charter,
maintenance, and operation of mission and administrative
aircraft; not to exceed $35,000 for official reception and
representation expenses; and purchase (not to exceed 33
for replacement only) and hire of passenger motor vehi-
cles; $2,562,200,000, to remain available until September
30, 1998.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the Inspector General Act of 1978,
as amended, $17,000,000.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
Notwithstanding the limitation on the availability of
funds appropriated for ‘‘Human space flight’’, ‘‘Science,
aeronautics and technology’’, or ‘‘Mission support’’ by this
appropriations Act, when (1) any activity has been initi-
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ated by the incurrence of obligations for construction of
facilities as authorized by law, or (2) amounts are pro-
vided for full-funding for the Tracking and Data Relay
Satellite (TDRS) replenishment program, such amount
available for such activity shall remain available until ex-
pended. This provision does not apply to the amounts ap-
propriated in ‘‘Mission support’’ pursuant to the author-
ization for repair, rehabilitation and modification of facili-
ties, minor construction of new facilities and additions to
existing facilities, and facility planning and design.
Notwithstanding the limitation on the availability of
funds appropriated for ‘‘Human space flight’’, ‘‘Science,
aeronautics and technology’’, or ‘‘Mission support’’ by this
appropriations Act, the amounts appropriated for con-
struction of facilities shall remain available until Septem-
ber 30, 1999.
Notwithstanding the limitation on the availability of
funds appropriated for ‘‘Mission support’’ and ‘‘Office of
Inspector General’’, amounts made available by this Act
for personnel and related costs and travel expenses of the
National Aeronautics and Space Administration shall re-
main available until September 30, 1997 and may be used
to enter into contracts for training, investigations, cost as-
sociated with personnel relocation, and for other services,
to be provided during the next fiscal year.
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Ω89æIn order to avoid or minimize the need for invol-
untary separations due to a reduction in force, installation
closure, reorganization, transfer of function, or similar ac-
tion affecting the National Aeronautics and Space Admin-
istration, the Administrator shall establish a program
under which separation pay, subject to the availability of
appropriated funds, may be offered to encourage employees
to separate from service voluntarily, whether by retirement
or resignation: Provided, That payments to individual em-
ployees shall not exceed $25,000: Provided further, That in
addition to any other payments which it is required to
make under subchapter III of chapter 83 or chapter 84 of
title 5, United States Code, NASA shall remit to the Office
of Personnel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Retirement
and Disability Fund an amount equal to 15 percent of the
final basic pay of each employee who is covered under sub-
chapter III of chapter 83 or chapter 84 of title 5 to whom
a voluntary separation incentive has been paid under this
paragraph.
NATIONAL CREDIT UNION ADMINISTRATION
CENTRAL LIQUIDITY FACILITY
During fiscal year 1997, gross obligations of the
Central Liquidity Facility for the principal amount of new
direct loans to member credit unions, as authorized by the
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National Credit Union Central Liquidity Facility Act (12
U.S.C. 1795), shall not exceed $600,000,000: Provided,
That administrative expenses of the Central Liquidity Fa-
cility in fiscal year 1997 shall not exceed $560,000: Pro-
vided further, That $1,000,000, together with amounts of
principal and interest on loans repaid, to be available until
expended, is available for loans to community development
credit unions.
NATIONAL SCIENCE FOUNDATION
RESEARCH AND RELATED ACTIVITIES
For necessary expenses in carrying out the National
Science Foundation Act of 1950, as amended (42 U.S.C.
1861–1875), and the Act to establish a National Medal
of Science (42 U.S.C. 1880–1881); services as authorized
by 5 U.S.C. 3109; maintenance and operation of aircraft
and purchase of flight services for research support; acqui-
sition of aircraft; Ω90æ$2,422,000,000 (increased by
$9,110,000)
$2,432,000,000, of which not to exceed
$226,000,000 shall remain available until expended for
Polar research and operations support, and for reimburse-
ment to other Federal agencies for operational and science
support and logistical and other related activities for the
United States Antarctic program; the balance to remain
available until September 30, 1998: Provided, That re-
ceipts for scientific support services and materials fur-
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nished by the National Research Centers and other Na-
tional Science Foundation supported research facilities
may be credited to this appropriation: Provided further,
That to the extent that the amount appropriated is less
than the total amount authorized to be appropriated for
included program activities, all amounts, including floors
and ceilings, specified in the authorizing Act for those pro-
gram activities or their subactivities shall be reduced pro-
portionally.
MAJOR RESEARCH EQUIPMENT
For necessary expenses of major construction
projects pursuant to the National Science Foundation Act
of 1950, as amended, $80,000,000, to remain available
until expended.
EDUCATION AND HUMAN RESOURCES
For necessary expenses in carrying out science and
engineering education and human resources programs and
activities pursuant to the National Science Foundation
Act of 1950, as amended (42 U.S.C. 1861–1875), includ-
ing services as authorized by 5 U.S.C. 3109 and rental
of conference rooms in the District of Columbia,
Ω91æ$612,000,000 $624,000,000, to remain available until
September 30, 1998: Provided, That to the extent that
the amount of this appropriation is less than the total
amount authorized to be appropriated for included pro-
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gram activities, all amounts, including floors and ceilings,
specified in the authorizing Act for those program activi-
ties or their subactivities shall be reduced proportionally.
SALARIES AND EXPENSES
For necessary salaries and expenses of the National
Science Foundation Act of 1950, as amended (42 U.S.C.
1861–1875); services authorized by 5 U.S.C. 3109; hire
of passenger motor vehicles; not to exceed $9,000 for offi-
cial reception and representation expenses; uniforms or al-
lowances therefor, as authorized by 5 U.S.C. 5901–5902;
rental of conference rooms in the District of Columbia;
reimbursement of the General Services Administration for
security guard services and headquarters relocation;
$134,310,000 Ω92æ(reduced by $9,110,000): Provided,
That contracts may be entered into under salaries and ex-
penses in fiscal year 1997 for maintenance and operation
of facilities, and for other services, to be provided during
the next fiscal year.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General as authorized by the Inspector General Act of
1978, as amended, $4,690,000, to remain available until
September 30, 1998.
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NEIGHBORHOOD REINVESTMENT CORPORATION
PAYMENT TO THE NEIGHBORHOOD REINVESTMENT
CORPORATION
For payment to the Neighborhood Reinvestment Cor-
poration for use in neighborhood reinvestment activities,
as authorized by the Neighborhood Reinvestment Corpora-
tion Act (42 U.S.C. 8101–8107), Ω93æ$50,000,000
$49,900,000.
SELECTIVE SERVICE SYSTEM
SALARIES AND EXPENSES
For necessary expenses of the Selective Service Sys-
tem, including expenses of attendance at meetings and of
training for uniformed personnel assigned to the Selective
Service System, as authorized by 5 U.S.C. 4101–4118 for
civilian employees; and not to exceed $1,000 for official
reception and representation expenses; $22,930,000: Pro-
vided, That during the current fiscal year, the President
may exempt this appropriation from the provisions of 31
U.S.C. 1341, whenever he deems such action to be nec-
essary in the interest of national defense: Provided further,
That none of the funds appropriated by this Act may be
expended for or in connection with the induction of any
person into the Armed Forces of the United States.
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TITLE IV—GENERAL PROVISIONS
SEC. 401. Where appropriations in titles I, II, and
III of this Act are expendable for travel expenses and no
specific limitation has been placed thereon, the expendi-
tures for such travel expenses may not exceed the amounts
set forth therefore in the budget estimates submitted for
the appropriations: Provided, Ω94æThat this provision does
not apply to accounts that do not contain an object classi-
fication for travel: Provided further, That this section shall
not apply to travel performed by uncompensated officials
of local boards and appeal boards of the Selective Service
System; to travel performed directly in connection with
care and treatment of medical beneficiaries of the Depart-
ment of Veterans Affairs; to travel performed in connec-
tion with major disasters or emergencies declared or deter-
mined by the President under the provisions of the Robert
T. Stafford Disaster Relief and Emergency Assistance
Act; to travel performed by the Offices of Inspector Gen-
eral in connection with audits and investigations; or to
payments to interagency motor pools where separately set
forth in the budget schedules: Provided further, That if
appropriations in titles I, II, and III exceed the amounts
set forth in budget estimates initially submitted for such
appropriations, the expenditures for travel may cor-
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respondingly exceed the amounts therefore set forth in the
estimates in the same proportion.
SEC. 402. Appropriations and funds available for the
administrative expenses of the Department of Housing
and Urban Development and the Selective Service System
shall be available in the current fiscal year for purchase
of uniforms, or allowances therefor, as authorized by 5
U.S.C. 5901–5902; hire of passenger motor vehicles; and
services as authorized by 5 U.S.C. 3109.
SEC. 403. Funds of the Department of Housing and
Urban Development subject to the Government Corpora-
tion Control Act or section 402 of the Housing Act of
1950 shall be available, without regard to the limitations
on administrative expenses, for legal services on a contract
or fee basis, and for utilizing and making payment for
services and facilities of Federal National Mortgage Asso-
ciation, Government National Mortgage Association, Fed-
eral Home Loan Mortgage Corporation, Federal Financ-
ing Bank, Federal Reserve banks or any member thereof,
Federal Home Loan banks, and any insured bank within
the meaning of the Federal Deposit Insurance Corporation
Act, as amended (12 U.S.C. 1811–1831).
SEC. 404. No part of any appropriation contained in
this Act shall remain available for obligation beyond the
current fiscal year unless expressly so provided herein.
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SEC. 405. No funds appropriated by this Act may be
expended—
(1) pursuant to a certification of an officer or
employee of the United States unless—
(A) such certification is accompanied by,
or is part of, a voucher or abstract which de-
scribes the payee or payees and the items or
services for which such expenditure is being
made, or
(B) the expenditure of funds pursuant to
such certification, and without such a voucher
or abstract, is specifically authorized by law;
and
(2) unless such expenditure is subject to audit
by the General Accounting Office or is specifically
exempt by law from such audit.
SEC. 406. None of the funds provided in this Act to
any department or agency may be expended for the trans-
portation of any officer or employee of such department
or agency between his domicile and his place of employ-
ment, with the exception of any officer or employee au-
thorized such transportation under 31 U.S.C. 1344 or 5
U.S.C. 7905.
SEC. 407. None of the funds provided in this Act may
be used for payment, through grants or contracts, to re-
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cipients that do not share in the cost of conducting re-
search resulting from proposals not specifically solicited
by the Government: Provided, That the extent of cost
sharing by the recipient shall reflect the mutuality of in-
terest of the grantee or contractor and the Government
in the research.
SEC. 408. None of the funds in this Act may be used,
directly or through grants, to pay or to provide reimburse-
ment for payment of the salary of a consultant (whether
retained by the Federal Government or a grantee) at more
than the daily equivalent of the rate paid for Level IV
of the Executive Schedule, unless specifically authorized
by law.
SEC. 409. None of the funds provided in this Act
shall be used to pay the expenses of, or otherwise com-
pensate, non-Federal parties intervening in regulatory or
adjudicatory proceedings. Nothing herein affects the au-
thority of the Consumer Product Safety Commission pur-
suant to section 7 of the Consumer Product Safety Act
(15 U.S.C. 2056 et seq.).
SEC. 410. Except as otherwise provided under exist-
ing law or under an existing Executive order issued pursu-
ant to an existing law, the obligation or expenditure of
any appropriation under this Act for contracts for any
consulting service shall be limited to contracts which are
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(1) a matter of public record and available for public in-
spection, and (2) thereafter included in a publicly available
list of all contracts entered into within twenty-four months
prior to the date on which the list is made available to
the public and of all contracts on which performance has
not been completed by such date. The list required by the
preceding sentence shall be updated quarterly and shall
include a narrative description of the work to be per-
formed under each such contract.
SEC. 411. Except as otherwise provided by law, no
part of any appropriation contained in this Act shall be
obligated or expended by any executive agency, as referred
to in the Office of Federal Procurement Policy Act (41
U.S.C. 401 et seq.), for a contract for services unless such
executive agency (1) has awarded and entered into such
contract in full compliance with such Act and the regula-
tions promulgated thereunder, and (2) requires any report
prepared pursuant to such contract, including plans, eval-
uations, studies, analyses and manuals, and any report
prepared by the agency which is substantially derived from
or substantially includes any report prepared pursuant to
such contract, to contain information concerning (A) the
contract pursuant to which the report was prepared, and
(B) the contractor who prepared the report pursuant to
such contract.
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SEC. 412. Except as otherwise provided in section
406, none of the funds provided in this Act to any depart-
ment or agency shall be obligated or expended to provide
a personal cook, chauffeur, or other personal servants to
any officer or employee of such department or agency.
SEC. 413. None of the funds provided in this Act to
any department or agency shall be obligated or expended
to procure passenger automobiles as defined in 15 U.S.C.
2001 with an EPA estimated miles per gallon average of
less than 22 miles per gallon.
SEC. 414. None of the funds appropriated in title I
of this Act shall be used to enter into any new lease of
real property if the estimated annual rental is more than
$300,000 unless the Secretary submits, in writing, a re-
port to the Committees on Appropriations of the Congress
and a period of 30 days has expired following the date
on which the report is received by the Committees on Ap-
propriations.
SEC. 415. (a) PURCHASE
OF
AMERICAN-MADE
EQUIPMENT AND PRODUCTS.—It is the sense of the Con-
gress that, to the greatest extent practicable, all equip-
ment and products purchased with funds made available
in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any en-
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tity using funds made available in this Act, the head of
each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the state-
ment made in subsection (a) by the Congress.
SEC. 416. None of the funds appropriated in this Act
may be used to implement any cap on reimbursements to
grantees for indirect costs, except as published in Office
of Management and Budget Circular A–21.
SEC. 417. Such sums as may be necessary for fiscal
year 1997 pay raises for programs funded by this Act shall
be absorbed within the levels appropriated in this Act.
SEC. 418. None of the funds made available in this
Act may be used for any program, project, or activity,
when it is made known to the Federal entity or official
to which the funds are made available that the program,
project, or activity is not in compliance with any Federal
law relating to risk assessment, the protection of private
property rights, or unfunded mandates.
SEC. 419. Such funds as may be necessary to carry
out the orderly termination of the Office of Consumer Af-
fairs shall be made available from funds appropriated to
the Department of Health and Human Services for fiscal
year 1997.
SEC. 420. Corporations and agencies of the Depart-
ment of Housing and Urban Development which are sub-
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ject to the Government Corporation Control Act, as
amended, are hereby authorized to make such expendi-
tures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord
with law, and to make such contracts and commitments
without regard to fiscal year limitations as provided by
section 104 of the Act as may be necessary in carrying
out the programs set forth in the budget for 1997 for such
corporation or agency except as hereinafter provided: Pro-
vided, That collections of these corporations and agencies
may be used for new loan or mortgage purchase commit-
ments only to the extent expressly provided for in this Act
(unless such loans are in support of other forms of assist-
ance provided for in this or prior appropriations Acts), ex-
cept that this proviso shall not apply to the mortgage in-
surance or guaranty operations of these corporations, or
where loans or mortgage purchases are necessary to pro-
tect the financial interest of the United States Govern-
ment.
Ω95æSEC. 421. (a) The purpose of this section is to
provide for the special needs of certain children of Vietnam
veterans who were born with the birth defect spina bifida,
possibly as the result of the exposure of one or both parents
to herbicides during active service in the Republic of Viet-
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nam during the Vietnam era, through the provision of
health care and monetary benefits.
(b)(1) Part II of title 38, United States Code, is
amended by inserting after chapter 17 the following new
chapter:
‘‘CHAPTER 18—BENEFITS FOR CHILDREN
OF VIETNAM VETERANS WHO ARE
BORN WITH SPINA BIFIDA
‘‘Sec.
‘‘1801. Definitions.
‘‘1802. Spina bifida conditions covered.
‘‘1803. Health care.
‘‘1804. Vocational training and rehabilitation.
‘‘1805. Monetary allowance.
‘‘1806. Effective date of awards.
‘‘§ 1801. Definitions
‘‘For the purposes of this chapter—
‘‘(1) The term ‘child’, with respect to a Vietnam
veteran, means a natural child of the Vietnam vet-
eran, regardless of age or marital status, who was
conceived after the date on which the veteran first en-
tered the Republic of Vietnam during the Vietnam
era.
‘‘(2) The term ‘Vietnam veteran’ means a vet-
eran who performed active military, naval, or air
service in the Republic of Vietnam during the Viet-
nam era.
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‘‘§ 1802. Spina bifida conditions covered
‘‘This chapter applies with respect to all forms and
manifestations of spina bifida except spina bifida occulta.
‘‘§ 1803. Health care
‘‘(a) In accordance with regulations which the Sec-
retary shall prescribe, the Secretary shall provide a child
of a Vietnam veteran who is suffering from spina bifida
with such health care as the Secretary determines is needed
by the child for the spina bifida or any disability that is
associated with such condition.
‘‘(b) The Secretary may provide health care under this
section directly or by contract or other arrangement with
any health care provider.
‘‘(c) For the purposes of this section—
‘‘(1) The term ‘health care’—
‘‘(A) means home care, hospital care, nurs-
ing home care, outpatient care, preventive care,
habilitative and rehabilitative care, case man-
agement, and respite care; and
‘‘(B) includes—
‘‘(i) the training of appropriate mem-
bers of a child’s family or household in the
care of the child; and
‘‘(ii) the provision of such pharma-
ceuticals, supplies, equipment, devices, ap-
pliances, assistive technology, direct trans-
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portation costs to and from approved
sources of health care, and other materials
as the Secretary determines necessary.
‘‘(2) The term ‘health care provider’ includes
specialized spina bifida clinics, health care plans, in-
surers, organizations, institutions, and any other en-
tity or individual who furnishes health care that the
Secretary determines authorized under this section.
‘‘(3) The term ‘home care’ means outpatient
care, habilitative and rehabilitative care, preventive
health services, and health-related services furnished
to an individual in the individual’s home or other
place of residence.
‘‘(4) The term ‘hospital care’ means care and
treatment for a disability furnished to an individual
who has been admitted to a hospital as a patient.
‘‘(5) The term ‘nursing home care’ means care
and treatment for a disability furnished to an indi-
vidual who has been admitted to a nursing home as
a resident.
‘‘(6) The term ‘outpatient care’ means care and
treatment of a disability, and preventive health serv-
ices, furnished to an individual other than hospital
care or nursing home care.
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‘‘(7) The term ‘preventive care’ means care and
treatment furnished to prevent disability or illness,
including periodic examinations, immunizations, pa-
tient health education, and such other services as the
Secretary determines necessary to provide effective
and economical preventive health care.
‘‘(8) The term ‘habilitative and rehabilitative
care’ means such professional, counseling, and guid-
ance services and treatment programs (other than vo-
cational training under section 1804 of this title) as
are necessary to develop, maintain, or restore, to the
maximum extent practicable, the functioning of a dis-
abled person.
‘‘(9) The term ‘respite care’ means care furnished
on an intermittent basis for a limited period to an
individual who resides primarily in a private resi-
dence when such care will help the individual to con-
tinue residing in such private residence.
‘‘§ 1804. Vocational training and rehabilitation
‘‘(a) Pursuant to such regulations as the Secretary
may prescribe, the Secretary may provide vocational train-
ing under this section to a child of a Vietnam veteran who
is suffering from spina bifida if the Secretary determines
that the achievement of a vocational goal by such child is
reasonably feasible.
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‘‘(b) Any program of vocational training for a child
under this section shall be designed in consultation with
the child in order to meet the child’s individual needs and
shall be set forth in an individualized written plan of voca-
tional rehabilitation.
‘‘(c)(1) A vocational training program for a child
under this section—
‘‘(A) shall consist of such vocationally oriented
services and assistance, including such placement and
post-placement services and personal and work ad-
justment training, as the Secretary determines are
necessary to enable the child to prepare for and par-
ticipate in vocational training or employment; and
‘‘(B) may include a program of education at an
institution of higher education if the Secretary deter-
mines that the program of education is predomi-
nantly vocational in content.
‘‘(2) A vocational training program under this sub-
section may not include the provision of any loan or sub-
sistence allowance or any automobile adaptive equipment.
‘‘(d)(1) Except as provided in paragraph (2) and sub-
ject to subsection (e)(2), a vocational training program
under this section may not exceed 24 months.
‘‘(2) The Secretary may grant an extension of a voca-
tional training program for a child under this section for
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up to 24 additional months if the Secretary determines that
the extension is necessary in order for the child to achieve
a vocational goal identified (before the end of the first 24
months of such program) in the written plan of vocational
rehabilitation formulated for the child pursuant to sub-
section (b).
‘‘(e)(1) A child who is pursuing a program of voca-
tional training under this section and is also eligible for
assistance under a program under chapter 35 of this title
may not receive assistance under both such programs con-
currently. The child shall elect (in such form and manner
as the Secretary may prescribe) the program under which
the child is to receive assistance.
‘‘(2) The aggregate period for which a child may re-
ceive assistance under this section and chapter 35 of this
title may not exceed 48 months (or the part-time equivalent
thereof).
‘‘§ 1805. Monetary allowance
‘‘(a) The Secretary shall pay a monthly allowance
under this chapter to any child of a Vietnam veteran for
any disability resulting from spina bifida suffered by such
child.
‘‘(b)(1) The amount of the allowance paid to a child
under this section shall be based on the degree of disability
suffered by the child, as determined in accordance with such
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schedule for rating disabilities resulting from spina bifida
as the Secretary may prescribe.
‘‘(2) The Secretary shall, in prescribing the rating
schedule for the purposes of this section, establish three levels
of disability upon which the amount of the allowance pro-
vided by this section shall be based.
‘‘(3) The amounts of the allowance shall be $200 per
month for the lowest level of disability prescribed, $700 per
month for the intermediate level of disability prescribed,
and $1,200 per month for the highest level of disability pre-
scribed. Such amounts are subject to adjustment under sec-
tion 5312 of this title.
‘‘(c) Notwithstanding any other provision of law, re-
ceipt by a child of an allowance under this section shall
not impair, infringe, or otherwise affect the right of the
child to receive any other benefit to which the child may
otherwise be entitled under any law administered by the
Secretary, nor shall receipt of such an allowance impair,
infringe, or otherwise affect the right of any individual to
receive any benefit to which the individual is entitled under
any law administered by the Secretary that is based on the
child’s relationship to the individual.
‘‘(d) Notwithstanding any other provision of law, the
allowance paid to a child under this section shall not be
considered income or resources in determining eligibility for
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or the amount of benefits under any Federal or federally
assisted program.
‘‘§ 1806. Effective date of awards
‘‘The effective date for an award of benefits under this
chapter shall be fixed in accordance with the facts found,
but shall not be earlier than the date of receipt of applica-
tion for the benefits.’’.
(2) The tables of chapters before part I and at the be-
ginning of part II of such title are each amended by insert-
ing after the item referring to chapter 17 the following new
item:
‘‘18. Benefits for Children of Vietnam Veterans Who Are
Born With Spina Bifida .......................................... 1801’’.
(c) Section 5312 of title 38, United States Code, is
amended—
(1) in subsection (a)—
(A) by striking out ‘‘and the rate of in-
creased pension’’ and inserting in lieu thereof ‘‘,
the rate of increased pension’’; and
(B) by inserting after ‘‘on account of chil-
dren,’’ the following: ‘‘and each rate of monthly
allowance paid under section 1805 of this title,’’;
and
(2) in subsection (c)(1), by striking out ‘‘and
1542’’ and inserting in lieu thereof ‘‘1542, and 1805’’.
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(d) This section and the amendments made by this sec-
tion shall take effect on January 1, 1997.
SEC. 422. (a) Section 1151 of title 38, United States
Code, is amended—
(1) by striking out the first sentence and insert-
ing in lieu thereof the following:
‘‘(a) Compensation under this chapter and dependency
and indemnity compensation under chapter 13 of this title
shall be awarded for a qualifying additional disability or
a qualifying death of a veteran in the same manner as if
such additional disability or death were service-connected.
For purposes of this section, a disability or death is a quali-
fying additional disability or qualifying death if the dis-
ability or death was not the result of the veteran’s willful
misconduct and—
‘‘(1) the disability or death was caused by hos-
pital care, medical or surgical treatment, or examina-
tion furnished the veteran under any law adminis-
tered by the Secretary, either by a Department em-
ployee or in a Department facility as defined in sec-
tion 1701(3)(A) of this title, and the proximate cause
of the disability or death was—
‘‘(A) carelessness, negligence, lack of proper
skill, error in judgment, or similar instance of
fault on the part of the Department in furnish-
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ing the hospital care, medical or surgical treat-
ment, or examination; or
‘‘(B) an event not reasonably foreseeable; or
‘‘(2) the disability or death was proximately
caused by the provision of training and rehabilitation
services by the Secretary (including by a service-pro-
vider used by the Secretary for such purpose under
section 3115 of this title) as part of an approved re-
habilitation program under chapter 31 of this title.’’;
and
(2) in the second sentence—
(A) by redesignating that sentence as sub-
section (b);
(B) by striking out ‘‘, aggravation,’’ both
places it appears; and
(C) by striking out ‘‘sentence’’ and sub-
stituting in lieu thereof ‘‘subsection’’.
(b)(1) The amendments made by subsection (a) shall
take effect on October 1, 1996.
(2) Section 1151 of title 38, United States Code (as
amended by subsection (a)), shall govern all administrative
and judicial determinations of eligibility for benefits under
such section that are made with respect to claims filed on
or after the effective date set forth in paragraph (1), includ-
ing those based on original applications and applications
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seeking to reopen, revise, reconsider, or otherwise readju-
dicate on any basis claims for benefits under such section
1151 or any provision of law that is a predecessor of such
section.
Ω96æSEC. 421. None of the funds appropriated or
otherwise made available by this Act may be used to pay
the salaries of personnel who approve a contract for the
purchase, lease, or acquisition in any manner of super-
computing equipment or services after a preliminary de-
termination, as defined in 19 U.S.C. 1673b, or final deter-
mination, as defined in 19 U.S.C. 1673d, by the Depart-
ment of Commerce that an organization providing such
supercomputing equipment or services has offered such
product at other than fair value.
Ω97æSEC. 422. None of the funds made available in
this Act for the National Aeronautics and Space Adminis-
tration may be used for the National Center for Science
Literacy, Education and Technology at the American Mu-
seum of Natural History.
Ω98æSEC. 423. (a) DENIAL OF FUNDS FOR PRE-
VENTING ROTC ACCESS TO CAMPUS.—None of the funds
made available in this Act may be provided by contract
or by grant (including a grant of funds to be available
for student aid) to an institution of higher education when
it is made known to the Federal official having authority
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to obligate or expend such funds that the institution (or
any subelement thereof) has a policy or practice (regard-
less of when implemented) that prohibits, or in effect pre-
vents—
(1) the maintaining, establishing, or operation
of a unit of the Senior Reserve Officer Training
Corps (in accordance with section 654 of title 10,
United States Code, and other applicable Federal
laws) at the institution (or subelement); or
(2) a student at the institution (or subelement)
from enrolling in a unit of the Senior Reserve Offi-
cer Training Corps at another institution of higher
education.
(b) EXCEPTION.—The limitation established in sub-
section (a) shall not apply to an institution of higher edu-
cation when it is made known to the Federal official hav-
ing authority to obligate or expend such funds that—
(1) the institution (or subelement) has ceased
the policy or practice described in such subsection;
or
(2) the institution has a longstanding policy of
pacifism based on historical religious affiliation.
Ω99æSEC. 424. (a) DENIAL OF FUNDS FOR PRE-
VENTING FEDERAL MILITARY RECRUITING
ON CAM-
PUS.—None of the funds made available in this Act may
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be provided by contract or grant (including a grant of
funds to be available for student aid) to any institution
of higher education when it is made known to the Federal
official having authority to obligate or expend such funds
that the institution (or any subelement thereof) has a pol-
icy or practice (regardless of when implemented) that pro-
hibits, or in effect prevents—
(1) entry to campuses, or access to students
(who are 17 years of age or older) on campuses, for
purposes of Federal military recruiting; or
(2) access to the following information pertain-
ing to students (who are 17 years of age or older)
for purposes of Federal military recruiting: student
names,
addresses,
telephone
listings,
dates
and
places of birth, levels of education, degrees received,
prior military experience, and the most recent pre-
vious educational institutions enrolled in by the stu-
dents.
(b) EXCEPTION.—The limitation established in sub-
section (a) shall not apply to an institution of higher edu-
cation when it is made known to the Federal official hav-
ing authority to obligate or expend such funds that—
(1) the institution (or subelement) has ceased
the policy or practice described in such subsection;
or
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(2) the institution has a longstanding policy of
pacifism based on historical religious affiliation.
Ω100æSEC. 425. None of the funds made available
in this Act may be obligated or expended to enter into
or renew a contract with an entity when it is made known
to the Federal official having authority to obligate or ex-
pend such funds that—
(1) such entity is otherwise a contractor with
the United States and is subject to the requirement
in section 4212(d) of title 38, United States Code,
regarding submission of an annual report to the Sec-
retary of Labor concerning employment of certain
veterans; and
(2) such entity has not submitted a report as
required by that section for the most recent year for
which such requirement was applicable to such en-
tity.
Ω101æSEC. 426. The amount provided in title I for
‘‘Veterans Health Administration—Medical Care’’ is here-
by increased by, the amount provided in title I for ‘‘De-
partmental Administration—General operating expenses’’
is hereby increased by, and the total of the amounts of
budget authority provided in this Act for payments not
required by law for the fiscal year ending September 30,
1997 (other than any amount of budget authority provided
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in title I and any such amount provided in title III for
the American Battle Monuments Commission, the Court
of Veterans Appeals, or Cemeterial Expenses, Army), is
hereby reduced by, $40,000,000, $17,000,000, and 0.40
percent, respectively.
Ω102æSEC. 427. The amounts otherwise provided by
this Act are revised by increasing the amount made avail-
able
for
‘‘Veterans
Health
Administration—Medical
Care’’, increasing the amount made available for ‘‘Veter-
ans Health Administration—Medical and Prosthetic Re-
search’’, reducing the amount made available for ‘‘Cor-
poration for National and Community Service—National
and Community Service Programs Operating Expenses’’,
and reducing the amount made available for ‘‘Corporation
for National and Community Service—Office of Inspector
General’’, by $20,000,000, $20,000,000, $365,000,000,
and $2,000,000, respectively.
Ω103æSEC. 428. None of the funds made available
in this Act may be used by the Environmental Protection
Agency to issue, reissue, or renew any approval or author-
ization for any facility to store or dispose of poly-
chlorinated biphenyls when it is made known to the Fed-
eral official having authority to obligate or expend such
funds that there is in effect at the time of the issuance,
reissuance, or renewal a rule authorizing any person to
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import into the customs territory of the United States for
treatment or disposal any polychlorinated biphenyls, or
polychlorinated biphenyl items, at concentrations of more
than 50 parts per million.
Ω104æSEC. 429. None of the funds made available
to the Environmental Protection Agency under the head-
ing ‘‘Hazardous Substance Superfund’’ may be used to
implement any retroactive liability discount reimburse-
ment described in the amendment made by section 201
of H.R. 2500, as introduced on October 18, 1995.
SEC. 430. FHA MORTGAGE
INSURANCE
PRE-
MIUMS.—Section 203(c)(2)(A) of the National Housing
Act (12 U.S.C. 1709(c)(2)(A)) is amended by inserting
after the first sentence the following new sentence: ‘‘In
the case of mortgage for which the mortgagor is a first-
time homebuyer who completes a program of counseling
with respect to the responsibilities and financial manage-
ment involved in homeownership that is approved by the
Secretary, the premium payment under this subparagraph
shall not exceed 2.0 percent of the amount of the original
insured principal obligation of the mortgage.’’.
SEC. 431. (a) AUTHORITY TO USE AMOUNTS BOR-
ROWED FROM FAMILY MEMBERS FOR DOWNPAYMENTS
ON FHA-INSURED LOANS.—Section 203(b)(9) of the Na-
tional Housing Act (12 U.S.C. 1709(b)(9)) is amended by
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inserting before the period at the end the following: ‘‘: Pro-
vided further, That for purposes of this paragraph, the
Secretary shall consider as cash or its equivalent any
amounts borrowed from a family member (as such term
is defined in section 201), subject only to the requirements
that, in any case in which the repayment of such borrowed
amounts is secured by a lien against the property, such
lien shall be subordinate to the mortgage and the sum of
the principal obligation of the mortgage and the obligation
secured by such lien may not exceed 100 percent of the
appraised value of the property plus any initial service
charges, appraisal, inspection, and other fees in connection
with the mortgage’’.
(b) DEFINITION OF FAMILY MEMBER.—Section 201
of the National Housing Act (12 U.S.C. 1707) is amended
by adding at the end the following new subsections:
‘‘(e) The term ‘family member’ means, with respect
to a mortgagor under such section, a child, parent, or
grandparent of the mortgagor (or the mortgagor’s
spouse). In determining whether any of the relationships
referred to in the preceding sentence exist, a legally adopt-
ed son or daughter of an individual (and a child who is
a member of an individual’s household, if placed with such
individual by an authorized placement agency for legal
adoption by such individual), and a foster child of an indi-
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vidual, shall be treated as a child of such individual by
blood.
‘‘(f) The term ‘child’ means, with respect to a mort-
gagor under such section, a son, stepson, daughter, or
stepdaughter of such mortgagor.’’.
Ω105æSEC. 432. Sections 401 and 402 of the bill,
H.R. 1708, 104th Congress, as introduced in the House
of Representatives on May 24, 1995, are hereby enacted
into law.
SEC. 432. CALCULATION OF DOWNPAYMENT.
Section 203(b) of the National Housing Act (12 U.S.C.
1709(b)) is amended by adding at the end the following new
paragraph:
‘‘(10) ALASKA AND HAWAII.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of this subsection, with respect to
a mortgage originated in the State of Alaska or
the State of Hawaii, involve a principal obliga-
tion not in excess of the sum of—
‘‘(i) the amount of the mortgage insur-
ance premium paid at the time the mort-
gage is insured; and
‘‘(ii)(I) in the case of a mortgage for a
property with an appraised value equal to
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or less than $50,000, 98.75 percent of the
appraised value of the property;
‘‘(II) in the case of a mortgage for a
property with an appraised value in excess
of $50,000 but not in excess of $125,000,
97.65 percent of the appraised value of the
property;
‘‘(III) in the case of a mortgage for a
property with an appraised value in excess
of $125,000, 97.15 percent of the appraised
value of the property; or
‘‘(IV) notwithstanding subclauses (II)
and (III), in the case of a mortgage for a
property with an appraised value in excess
of $50,000 that is located in an area of the
State for which the average closing cost ex-
ceeds 2.10 percent of the average, for the
State, of the sale price of properties located
in the State for which mortgages have been
executed, 97.75 percent of the appraised
value of the property.
‘‘(B) AVERAGE
CLOSING
COST.—For pur-
poses of this paragraph, the term ‘average closing
cost’ means, with respect to a State, the average,
for mortgages executed for properties that are lo-
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cated within the State, of the total amounts (as
determined by the Secretary) of initial service
charges, appraisal, inspection, and other fees (as
the Secretary shall approve) that are paid in
connection with such mortgages.’’.
SEC. 433. DELEGATION OF SINGLE FAMILY MORTGAGE
INSURING AUTHORITY TO DIRECT ENDORSEMENT MORTGA-
GEES.—Title II of the National Housing Act (12 U.S.C.
1707 et seq.) is amended by adding at the end the following
new section:
‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT
ENDORSEMENT MORTGAGEES
‘‘SEC. 256.(a) AUTHORITY.—The Secretary may dele-
gate, to one or more mortgages approved by the Secretary
under the direct endorsement program, the authority of the
Secretary under this Act to insure mortgages involving
property upon which there is located a dwelling designed
principally for occupancy by 1 to 4 families.
‘‘(b) CONSIDERATIONS.—In determining whether to
delegate authority to a mortgagee under this section, the
Secretary shall consider the experience and performance of
the mortgagee compared to the default rate of all insured
mortgages in comparable markets, and such other factors
as the Secretary determines appropriate to minimize risk
of loss to the insurance funds under this Act.
‘‘(c) ENFORCEMENT OF INSURANCE REQUIREMENTS.—
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‘‘(1) IN GENERAL.—If the Secretary determines
that a mortgage insured by a mortgagee pursuant to
delegation of authority under this section was not
originated in accordance with the requirements estab-
lished by the Secretary, and the Secretary pays an in-
surance claim with respect to the mortgage within a
reasonable period specified by the Secretary, the Sec-
retary may require the mortgagee approved under
this section to indemnify the Secretary for the loss.
‘‘(2) FRAUD OR MISREPRESENTATION.—If fraud
or misrepresentation was involved in connection with
the origination, the Secretary may require the mort-
gagee approved under this section to indemnify the
Secretary for the loss regardless of when an insurance
claim is paid.
‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—If
a mortgagee to which the Secretary has made a delegation
under this section violates the requirements and procedures
established by the Secretary or the Secretary determines
that other good cause exists, the Secretary may cancel a
delegation of authority under this section to the mortgagee
by giving notice to the mortgagee. Such a cancellation shall
be effective upon receipt of the notice by the mortgagee or
at a later date specified by the Secretary. A decision by
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the Secretary to cancel a delegation shall be final and con-
clusive and shall not be subject to judicial review.
‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap-
proving a delegation under this section, the Secretary shall
issue regulations establishing appropriate requirements and
procedures, including requirements and procedures govern-
ing the indemnification of the Secretary by the Mortgagee.’’.
Ω106æSEC. 433. None of the funds made available
in this Act for the National Aeronautics and Space Admin-
istration may be used to carry out, or pay the salaries
of personnel who carry out, the Bion 11 and Bion 12
projects.
Ω107æSEC. 434. SENSE OF THE SENATE WITH REGARD TO
COMPLIANCE WITH INTERNATIONAL OBLIGA-
TIONS.
(a) FINDINGS.—Congress finds that—
(1) in response to a dispute settlement finding
against the United States by the World Trade Orga-
nization, the United States informed the World Trade
Organization on June 19, 1996, that the United
States intends to meet its international obligations to
the World Trade Organization with respect to the En-
vironmental Protection Agency’s requirements on im-
ported reformulated and conventional gasoline;
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(2) the Environmental Protection Agency has
initiated an open process to examine any and all op-
tions for compliance with international obligations of
the United States in which a key criterion will be
fully protecting public health and the environment;
and
(3) many United States environmental and in-
dustrial organizations are concerned about the ‘‘Regu-
lation of Fuels and Fuel Additives: Individual For-
eign Refinery Baseline Requirements for Reformu-
lated Gasoline’’ proposed on May 3, 1994 (59 Fed.
Reg. 84).
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that, in evaluating any option for compliance with
international obligations, the Administrator of the Envi-
ronmental Protection Agency should—
(1) take fully into account the protection of pub-
lic health and the environment and the international
obligations of the United States as a member of the
World Trade Organization;
(2) ensure that the compliance review process not
result in the degradation of the gasoline quality re-
quired by the Clean Air Act (42 U.S.C. 7401 et seq.)
with respect to conventional and reformulated gaso-
line;
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(3) not recognize individual foreign refiner base-
lines unless the Administrator determines that the is-
sues of auditing, inspection of foreign facilities, and
enforcement have been adequately addressed; and
(4) provide a full and open administrative proc-
ess in the formulation of any final rule.
Ω108æSEC. 435. IMPLEMENTATION OF COMPREHENSIVE CON-
SERVATION AND MANAGEMENT PLANS.
Notwithstanding section 320(g) of the Federal Water
Pollution Control Act (33 U.S.C. 1330(g)), funds made
available pursuant to authorization under such section for
fiscal year 1997 and prior fiscal years may be used for im-
plementing comprehensive conservation and management
plans.
Ω109æSEC. 436. (a) PLAN.—(1) The Secretary of Vet-
erans Affairs shall develop a plan for the allocation of
health care resources (including personnel and funds) of the
Department of Veterans Affairs among the health care Net-
works of the Department so as to ensure that veterans who
have similar economic status and eligibility priority and
who are eligible for medical care have similar access to such
care regardless of the region of the United States in which
such veterans reside.
(2) The plan shall—
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(A) reflect, to the maximum extent possible, the
Veterans Integrated Service Network developed by the
Department to account for forecasts in expected work-
load and to ensure fairness to facilities that provide
cost-efficient health care; and
(B) include—
(i) procedures to identify reasons for vari-
ations in operating costs among similar facilities
where Network allocations are based on similar
unit costs for similar services and workload;
(ii) ways to improve the allocation of re-
sources so as to promote efficient use of resources
and provision of quality health care;
(iii) adjustments to unit costs in subsection
(a) to reflect factors which directly influence the
cost of health care delivery within each Network
and where such factors are not under the control
of Network or Department management; and
(iv) include forecasts in expected workload
and consideration of the demand for VA health
care that may not be reflected in current work-
load projections.
(3) The Secretary shall prepare the plan in consulta-
tion with the Under Secretary of Health of the Department
of Veterans Affairs.
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(b) PLAN ELEMENTS.—The plan under subsection (a)
shall set forth—
(1) milestones for achieving the goal referred to
in paragraph (1) of that subsection; and
(2) a means of evaluating the success of the Sec-
retary in meeting the goal.
(c) SUBMITTAL TO CONGRESS.—The Secretary shall
submit to Congress the plan developed under subsection (a)
not later than 180 days after the date of the enactment of
this Act.
(d) IMPLEMENTATION.—The Secretary shall imple-
ment the plan developed under subsection (a) not later than
60 days after submitting the plan to Congress under sub-
section (c), unless within that time the Secretary notifies
Congress that the plan will not be implemented in that time
and includes with the notification an explanation why the
plan will not be implemented in that time.
Ω110æSEC. 437. GAO AUDIT ON STAFFING AND CON-
TRACTING.—The Comptroller General shall audit the oper-
ations of the Office of Federal Housing Enterprise Oversight
concerning staff organization, expertise, capacity, and con-
tracting authority to ensure that the office resources and
contract authority are adequate and that they are being
used appropriately to ensure that the Federal National
Mortgage Association and the Federal Home Loan Mortgage
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Corporation are adequately capitalized and operating safe-
ly.
Ω111æSEC. 438. None of the funds appropriated or
otherwise made available to the National Aeronautics and
Space Administration by this Act, or any other Act enacted
before the date of the enactment of this Act, may be used
by the Administrator of the National Aeronautics and
Space Administration to relocate aircraft of the National
Aeronautics and Space Administration to Dryden Flight
Research Center, California, for purposes of the consolida-
tion of such aircraft.
Ω112æSEC. 439. REVISION OF NAME OF JAPAN–UNIT-
ED STATES FRIENDSHIP COMMISSION.—(1)(A) The first
sentence of section 4(a) of the Japan–United States Friend-
ship Act (22 U.S.C. 2903(a)) is amended by striking out
‘‘Japan–United States Friendship Commission’’ and in-
serting in lieu thereof ‘‘United States–Japan Commission’’.
(B) The section heading of such section is amended to
read as follows:
‘‘UNITED STATES–JAPAN COMMISSION’’.
(2) Subsection (c) of section 3 of that Act (22 U.S.C.
2902) is amended by striking out ‘‘Japan–United States
Friendship Commission’’ and inserting in lieu thereof
‘‘United States–Japan Commission’’.
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(3) Any reference to the Japan–United States Friend-
ship Commission in any Federal law, Executive order, reg-
ulation, delegation of authority, or other document shall be
deemed to refer to the United States–Japan Commission.
Ω113æSEC. 440. (a) Subject to the concurrence of the
Administrator of the General Services Administration
(GSA) and notwithstanding section 707 of Public Law
103–433, the Administrator of the National Aeronautics
and Space Administration may convey to the city of Dow-
ney, California, all right, title, and interest of the United
States in and to a parcel of real property, including im-
provements thereon, consisting of approximately 60 acres
and known as Parcels III, IV, V, and VI of the NASA In-
dustrial Plant, Downey, California.
(b)(1) DELAY IN PAYMENT OF CONSIDERATION.—After
the end of the 20-year period beginning on the date on
which the conveyance under subsection (a) is completed, the
City of Downey shall pay to the United States an amount
equal to fair market value of the conveyed property as of
the date of the conveyance from NASA.
(2) EFFECT OF RECONVEYANCE BY THE CITY.—If the
City of Downey reconveys all or any part of the conveyed
property during such 20-year period, the City shall pay to
the United States an amount equal to the fair market value
of the reconveyed property as of the time of the reconvey-
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ance, excluding the value of any improvements made to the
property by the City.
(3) DETERMINATION OF FAIR MARKET VALUE.—The
Administrator of NASA shall determine fair market value
in accordance with Federal appraisal standards and proce-
dures.
(4) TREATMENT OF LEASES.—The Administrator of
NASA may treat a lease of the property within such 20-
year period as a reconveyance if the Administrator deter-
mines that the lease is being used to avoid application of
paragraph (b)(2).
(5) DEPOSIT OF PROCEEDS.—The Administrator of
NASA shall deposit any proceeds received under this sub-
section in the special account established pursuant to sec-
tion 204(h)(2) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 485(h)(2)).
(c) The exact acreage and legal description of the real
property to be conveyed under subsection (a) shall be deter-
mined by a survey satisfactory to the Administrator. The
cost of the survey shall be borne by the City of Downey,
California.
(d) The Administrator may require such additional
terms and conditions in connection with the conveyance
under subsection (a) as the Administrator considers appro-
priate to protect the interests of the United States.
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(e) If the City at any time after the conveyance of the
property under subsection (a) notifies the Administrator
that the City no longer wishes to retain the property, it
may convey the property under the terms of subsection (b),
or, it may revert all right, title, and interest in and to the
property (including any facilities, equipment, or fixtures
conveyed, but excluding the value of any improvements
made to the property by the City) to the United States, and
the United States shall have the right of immediate entry
onto the property.
Ω114æTITLE V
SUPPLEMENTAL
Ω115æDEPARTMENT OF VETERANS AFFAIRS
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
For an additional amount for ‘‘Compensation and
Pensions’’, $100,000,000, to be made available upon enact-
ment of this Act, to remain available until expended.
Ω116æDEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GUARANTEES OF MORTGAGE BACKED SECURITIES LOAN
GUARANTEE PROGRAM ACCOUNT
During fiscal year 1996 and in addition to commit-
ments previously provided, additional commitments to issue