IB
Union Calendar No. 344
105TH CONGRESS
2D SESSION
H. R. 4194
[Report No. 105–610]
Making appropriations for the Departments of Veterans Affairs and Housing
and Urban Development, and for sundry independent agencies, boards,
commissions, corporations, and offices for the fiscal year ending Septem-
ber 30, 1999, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 8, 1998
Mr. LEWIS of California, from the Committee on Appropriations, reported the
following bill; which was committed to the Committee of the Whole House
on the State of the Union and ordered to be printed
A BILL
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, 1999, 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
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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, 1999, and for other pur-
poses, namely:
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 and a pilot program for disability ex-
aminations as authorized by law (38 U.S.C. 107, chapters
11, 13, 18, 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); $21,857,058,000, to remain available
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until expended: Provided, That not to exceed $24,534,000
of the amount appropriated shall be reimbursed to ‘‘Gen-
eral operating expenses’’ and ‘‘Medical care’’ for necessary
expenses in implementing those provisions authorized in
the Omnibus Budget Reconciliation Act of 1990, and in
the Veterans’ Benefits Act of 1992 (38 U.S.C. chapters
51, 53, and 55), the funding source for which is specifi-
cally provided as the ‘‘Compensation and pensions’’ appro-
priation: Provided further, That such sums as may be
earned on an actual qualifying patient basis, shall be reim-
bursed to ‘‘Medical facilities revolving fund’’ to augment
the funding of individual medical facilities for nursing
home care provided to pensioners as authorized.
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, $1,175,000,000, to remain available until ex-
pended: Provided, That funds shall be available to pay any
court order, court award or any compromise settlement
arising from litigation involving the vocational 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-
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erans insurance, and veterans mortgage life insurance as
authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72
Stat. 487, $46,450,000, to remain available until ex-
pended.
VETERANS HOUSING BENEFIT PROGRAM FUND 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: Provided fur-
ther, That during fiscal year 1999, within the resources
available, not to exceed $300,000 in gross obligations for
direct loans are authorized for specially adapted housing
loans: Provided further, That during 1999 any moneys
that would be otherwise deposited into or paid from the
Loan Guaranty Revolving Fund, the Guaranty and Indem-
nity Fund, or the Direct Loan Revolving Fund shall be
deposited into or paid from the Veterans Housing Benefit
Program Fund: Provided further, That any balances in the
Loan Guaranty Revolving Fund, the Guaranty and Indem-
nity Fund, or the Direct Loan Revolving Fund on the ef-
fective date of this Act may be transferred to and merged
with the Veterans Housing Benefit Program Fund.
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In addition, for administrative expenses to carry out
the direct and guaranteed loan programs, $159,121,000,
which may be transferred to and merged with the appro-
priation 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
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to
carry out the direct loan program, $206,000, which may
be transferred to and merged with the appropriation for
‘‘General operating expenses’’.
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of direct loans, $55,000, as authorized
by 38 U.S.C. chapter 31, 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
are available to subsidize gross obligations for the prin-
cipal amount of direct loans not to exceed $2,401,000.
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In addition, for administrative expenses necessary to
carry out the direct loan program, $400,000, which may
be transferred to and merged with the appropriation for
‘‘General operating expenses’’.
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM
ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For administrative expenses to carry out the direct
loan program authorized by 38 U.S.C. chapter 37, sub-
chapter V, as amended, $515,000, which may be trans-
ferred to and merged with the appropriation for ‘‘General
operating expenses’’.
VETERANS HEALTH ADMINISTRATION
MEDICAL CARE
(INCLUDING TRANSFER OF FUNDS)
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-
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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
homes as authorized by 38 U.S.C. 1741; administrative
and legal expenses of the Department for collecting and
recovering amounts owed the Department as authorized
under 38 U.S.C. chapter 17, and the Federal Medical
Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to
exceed $8,000,000 to fund cost comparison studies as re-
ferred to in 38 U.S.C. 8110(a)(5); $17,057,396,000, plus
reimbursements: Provided, That of the funds made avail-
able under this heading, $846,000,000 is for the equip-
ment and land and structures object classifications only,
which amount shall not become available for obligation
until August 1, 1999, and shall remain available until Sep-
tember 30, 2000: Provided further, That of the funds
made available under this heading, $6,000,000 is for the
Musculoskeletal Disease Center, which amount shall re-
main available for obligation until expended: Provided fur-
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ther, That of the funds made available under this heading,
not to exceed $22,633,000 may be transferred to and
merged with the appropriation for ‘‘General operating ex-
penses’’.
In addition, in conformance with Public Law 105–
33 establishing the Department of Veterans Affairs Medi-
cal Care Collections Fund, such sums as may be deposited
to such Fund pursuant to 38 U.S.C. 1729A may be trans-
ferred to this account, to remain available until expended
for the purposes of this account.
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, 2000, $310,000,000, plus reimbursements.
MEDICAL ADMINISTRATION AND MISCELLANEOUS
OPERATING EXPENSES
For necessary expenses in the administration of the
medical, 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-
quisition; engineering and architectural activities not
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charged to project cost; and research and development in
building construction technology; $60,000,000, plus reim-
bursements.
GENERAL POST FUND, NATIONAL HOMES
(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 programs, $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
Services Administration for security guard services, and
the Department of Defense for the cost of overseas em-
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ployee mail; $855,661,000: Provided, That funds under
this heading shall be available to administer the Service
Members Occupational Conversion and Training Act.
NATIONAL CEMETERY SYSTEM
(INCLUDING TRANSFER OF FUNDS)
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 six
passenger motor vehicles for use in cemeterial operations;
and hire of passenger motor vehicles, $92,006,000: Pro-
vided, That of the amount made available under this head-
ing, not to exceed $86,000 may be transferred to and
merged with the appropriation for ‘‘General operating ex-
penses’’.
OFFICE OF INSPECTOR GENERAL
For necessary expenses of the Office of Inspector
General in carrying out the Inspector General Act of 1978,
as amended, $32,702,000.
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving
any of the facilities under the jurisdiction or for the use
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 38 U.S.C.,
including planning, architectural and engineering services,
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maintenance or guarantee period services costs associated
with equipment guarantees provided under the project,
services of claims analysts, offsite utility and storm drain-
age system construction costs, and site acquisition, where
the estimated cost of a project is $4,000,000 or more or
where funds for a project were made available in a pre-
vious major project appropriation, $143,000,000, to re-
main 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 provided in this appropriation for fiscal year
1999, for each approved project shall be obligated: (1) by
the awarding of a construction documents contract by
September 30, 1999; and (2) by the awarding of a con-
struction contract by September 30, 2000: Provided fur-
ther, That the Secretary shall promptly report in writing
to the Committees on Appropriations any approved major
construction project in which obligations are not incurred
within the time limitations established above: Provided
further, That no funds from any other account except the
‘‘Parking revolving fund’’, may be obligated for construct-
ing, altering, extending, or improving a project which was
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approved in the budget process and funded in this account
until one year after substantial completion and beneficial
occupancy by the Department 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 38 U.S.C.,
where the estimated cost of a project is less than
$4,000,000; $175,000,000 to remain available until ex-
pended, along with unobligated balances of previous ‘‘Con-
struction, minor projects’’ appropriations which are hereby
made available for any project where the estimated cost
is less than $4,000,000: Provided, That funds in this ac-
count shall be available for: (1) repairs to any of the non-
medical 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;
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and (2) temporary measures necessary 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, income from fees collected, to remain avail-
able until expended, which shall be available for all author-
ized 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
to veterans as authorized by 38 U.S.C. 8131–8137,
$80,000,000, 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, $10,000,000, to remain available until ex-
pended.
ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)
SEC. 101. Any appropriation for fiscal year 1999 for
‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’,
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and ‘‘Veterans insurance and indemnities’’ may be trans-
ferred to any other of the mentioned appropriations.
SEC. 102. Appropriations available to the Depart-
ment of Veterans Affairs for fiscal year 1999 for salaries
and expenses 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 1999 for ‘‘Com-
pensation and pensions’’, ‘‘Readjustment benefits’’, and
‘‘Veterans insurance and indemnities’’ shall be available
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for payment of prior year accrued obligations required to
be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year 1998.
SEC. 106. Appropriations accounts available to the
Department of Veterans Affairs for fiscal year 1999 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 1999, 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 1999, 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-
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tion of an insurance program exceeds the amount of sur-
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 1999, 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.
SEC. 108. In accordance with section 1557 of title
31, United States Code, the following obligated balances
shall be exempt from subchapter IV of chapter 15 of such
title and shall remain available for expenditure without fis-
cal year limitation: (1) funds obligated by the Department
of Veterans Affairs for lease numbers 084B–05–94,
084B–07–94, and 084B–027–94 from funds made avail-
able in the Departments of Veterans Affairs and Housing
and Urban Development, and Independent Agencies Ap-
propriations Act, 1994 (Public Law 103–124) under the
heading ‘‘Medical care’’; and (2) funds obligated by the
Department of Veterans Affairs for lease number 084B–
002–96 from funds made available in the Departments of
Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1995
(Public Law 103–327) under the heading ‘‘Medical care’’.
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SEC. 109. (a) The Department of Veterans Affairs
medical center in Salisbury, North Carolina, is hereby des-
ignated as the ‘‘W.G. (Bill) Hefner Salisbury Department
of Veterans Affairs Medical Center’’. Any reference to
such center in any law, regulation, map, document, record
or other paper of the United States shall be considered
to be a reference to the ‘‘W.G. (Bill) Hefner Salisbury De-
partment of Veterans Affairs Medical Center’’.
(b) EFFECTIVE DATE.—The provisions of subsection
(a) are effective on the latter of the first day of the 106th
Congress or January 3, 1999.
TITLE II
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
PUBLIC AND INDIAN HOUSING
HOUSING CERTIFICATE FUND
(INCLUDING TRANSFERS OF FUNDS)
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 (other than con-
tracts for which amounts are provided under another
heading in this Act) or expiration of use restrictions, or
other changes in housing assistance arrangements, and for
other purposes, $10,240,542,030, to remain available until
expended: Provided, That of the total amount provided
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under this heading, $9,600,000,000 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, for enhanced vouchers as pro-
vided under the ‘‘Preserving Existing Housing Invest-
ment’’ account in the Departments of Veterans Affairs
and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1997 (Public Law 104–
204), and contracts entered into pursuant to section 441
of the Stewart B. McKinney Homeless Assistance Act:
Provided further, That the Secretary may determine not
to apply section 8(o)(6)(B) of the Act to housing vouchers
during fiscal year 1999: Provided further, That of the total
amount provided under this heading, $97,000,000 shall be
for amendments to section 8 contracts other than con-
tracts for projects developed under section 202 of the
Housing Act of 1959, as amended: Provided further, That
of the total amount provided under this heading,
$433,542,030 shall be for section 8 rental assistance
under the United States Housing Act of 1937 including
assistance to relocate residents of properties: (1) that are
owned by the Secretary and being disposed of; or (2) that
are discontinuing section 8 project-based assistance; for
relocation and replacement housing for units that are de-
molished or disposed of from the public housing inventory
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(in addition to amounts that may be available for such
purposes under this and other headings); for the conver-
sion of section 23 projects to assistance under section 8;
for funds to carry out the family unification program; and
for the relocation of witnesses in connection with efforts
to combat crime in public and assisted housing pursuant
to a request from a law enforcement or prosecution agen-
cy: Provided further, That of the total amount made avail-
able in the preceding proviso, $40,000,000 shall be made
available to nonelderly disabled families affected by the
designation of a public housing development under section
7 of such Act, the establishment of preferences in accord-
ance with section 651 of the Housing and Community De-
velopment Act of 1992 (42 U.S.C. 1361l), or the restric-
tion of occupancy to elderly families in accordance with
section 658 of such Act, and to the extent the Secretary
determines that such amount is not needed to fund appli-
cations for such affected families, to other nonelderly dis-
abled families: Provided further, That the amount made
available under the fifth proviso under the heading ‘‘Pre-
vention of Resident Displacement’’ in title II of the De-
partments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations
Act, 1997, Public Law 104–204, shall also be made avail-
able to nonelderly disabled families affected by the restric-
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tion of occupancy to elderly families in accordance with
section 658 of the Housing and Community Development
Act of 1992: Provided further, That to the extent the Sec-
retary determines that the amount made available under
the fifth proviso under the heading ‘‘Prevention of Resi-
dent Displacement’’ in title II of the Departments of Vet-
erans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997, Public
Law 104–204, is not needed to fund applications for af-
fected families described in the fifth proviso, or in the pre-
ceding proviso under this heading in this Act, the amount
not needed shall be made available to other nonelderly dis-
abled families: Provided further, That of the total amount
provided under this heading, $10,000,000 shall be for Re-
gional Opportunity Counseling: Provided further, That all
balances, as of September 30, 1998, remaining in the
‘‘Prevention of Resident Displacement’’ account shall be
transferred to and merged with the amounts provided for
those purposes under this heading.
For tenant-based assistance under the United States
Housing Act of 1937 to help eligible families make the
transition from welfare to work, $100,000,000 from the
total amount provided under this heading, to be adminis-
tered by public housing agencies (including Indian housing
authorities, as defined by the Secretary of Housing and
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Urban Development), and to remain available until ex-
pended: Provided, That families initially selected to receive
assistance under this paragraph (1) shall be eligible to re-
ceive, shall be currently receiving, or shall have received
within the preceding year, assistance or services funded
under the Temporary Assistance for Needy Families
(TANF) program under part A of title IV of the Social
Security Act or as part of a State’s qualified State expend-
iture under section 409(a)(7)(B)(i) of such Act; (2) shall
be determined by the agency to be families for which ten-
ant-based housing assistance is critical to successfully ob-
taining or retaining employment; and (3) shall not already
be receiving tenant-based assistance: Provided further,
That each application shall (1) describe the proposed pro-
gram, which shall be developed by the public housing agen-
cy in consultation with the State, local or Tribal entity
administering the TANF program and the entity, if any,
administering the Welfare-to-Work grants allocated by the
United States Department of Labor pursuant to section
403(a)(5)(A) of the Social Security Act, and which shall
take into account the particular circumstances of the com-
munity; (2) demonstrate that tenant-based housing assist-
ance is critical to the success of assisting eligible families
to obtain or retain employment; (3) specify the criteria
for selecting among eligible families to receive housing as-
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sistance under this paragraph; (4) describe the proposed
strategy for tenant counseling and housing search assist-
ance and landlord outreach; (5) include any requests for
waivers of any administrative requirements or any provi-
sions of the United States Housing Act of 1937, with a
demonstration of how approval of the waivers would sub-
stantially further the objective of this paragraph; (6) in-
clude certifications from the State, local, or Tribal entity
administering assistance under the TANF program and
from the entity, if any, administering the Welfare-to-Work
grants allocated by the United States Department of
Labor, that the entity supports the proposed program and
will cooperate with the public housing agency that admin-
isters the housing assistance to assure that such assist-
ance is coordinated with other welfare reform and welfare
to work initiatives; however, if either does not respond to
the public housing agency within a reasonable time period,
its concurrence shall be assumed, and if either objects to
the application, its concerns shall accompany the applica-
tion to the Secretary, who shall take them into account
in this funding decision; and (7) include such other infor-
mation as the Secretary may require and meet such other
requirements as the Secretary may establish: Provided fur-
ther, That the Secretary, after consultation with the Sec-
retary of Health and Human Services and the Secretary
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of Labor, shall select public housing agencies to receive
assistance under this paragraph on a competitive basis,
taking into account the need for and quality of the pro-
posed program (including innovative approaches), the ex-
tent to which the assistance will be coordinated with wel-
fare reform and welfare to work initiatives, the extent to
which the application demonstrates that tenant-based as-
sistance is critical to the success of assisting eligible fami-
lies to obtain or retain employment; and other appropriate
criteria established by the Secretary: Provided further,
That the Secretary may waive any administrative require-
ment or any provision of the United States Housing Act
of 1937 if the Secretary determines that the waiver would
substantially further the objective of the assistance under
this paragraph, and in the event of any waiver, may make
provision for alternative conditions or terms where appro-
priate: Provided further, That the Secretary may use up
to one percent of the amount available under this para-
graph, directly or indirectly, to conduct detailed evalua-
tions of the effect of providing assistance under this para-
graph.
PUBLIC HOUSING CAPITAL FUND
(INCLUDING TRANSFERS OF FUNDS)
For the Public Housing Capital Fund Program for
modernization of existing public housing projects as au-
thorized under section 14 of the United States Housing
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Act 
of 
1937, 
as 
amended 
(42 
U.S.C. 
1437),
$3,000,000,000, to remain available until expended: Pro-
vided, That of the total amount, up to $100,000,000 shall
be for carrying out activities under section 6(j) of such
Act and technical assistance for the inspection of public
housing units, contract expertise, and training and tech-
nical assistance directly or indirectly, under grants, con-
tracts, or cooperative agreements, to assist in the over-
sight and management of public housing (whether or not
the housing is being modernized with assistance under this
proviso) or tenant-based assistance, including, but not lim-
ited to, an annual resident survey, data collection and
analysis, training and technical assistance by or to officials
and employees of the Department and of public housing
agencies and to residents in connection with the public
housing programs and for lease adjustments to section 23
projects: Provided further, That of the amount available
under this heading, up to $5,000,000 shall be for the Ten-
ant Opportunity Program: Provided further, That all bal-
ances, as of September 30, 1998, of funds heretofore pro-
vided for section 673 public housing service coordinators
shall be transferred to and merged with amounts made
available under this heading.
PUBLIC HOUSING OPERATING FUND
For payments to public housing agencies for operat-
ing subsidies for low-income housing projects as author-
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ized by section 9 of the United States Housing Act of
1937, as amended (42 U.S.C. 1437g), $2,818,000,000, to
remain available until expended.
DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING
(INCLUDING TRANSFER OF FUNDS)
For grants to public housing agencies and tribally
designated housing entities for use in eliminating crime
in public housing projects authorized by 42 U.S.C. 11901–
11908, for grants for federally assisted low-income hous-
ing authorized by 42 U.S.C. 11909, and for drug informa-
tion clearinghouse services authorized by 42 U.S.C.
11921–11925, $290,000,000, to remain available until ex-
pended, of which $10,000,000 shall be for grants, tech-
nical assistance, contracts and other assistance, training,
and program assessment and execution for or on behalf
of public housing agencies, resident organizations, and In-
dian tribes and their tribally designated housing entities
(including the cost of necessary travel for participants in
such training); $10,000,000 shall be used in connection
with efforts to combat violent crime in public and assisted
housing under the Operation Safe Home program admin-
istered by the Inspector General of the Department of
Housing and Urban Development; and $10,000,000 shall
be provided to the Office of Inspector General for Oper-
ation Safe Home: Provided further, That the term ‘‘drug-
related crime’’, as defined in 42 U.S.C. 11905(2), shall
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also include other types of crime as determined by the Sec-
retary: Provided further, 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 housing youth sports grants.
REVITALIZATION OF SEVERELY DISTRESSED PUBLIC
HOUSING (HOPE VI)
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 displaced
by the demolition (including appropriate homeownership
down 
payment 
assistance 
for 
displaced 
tenants),
$600,000,000, to remain available until expended, of
which the Secretary may use up to $10,000,000 for tech-
nical assistance and contract expertise, 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 no funds appropriated
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under this heading shall be used for any purpose that is
not provided for herein, in the United States Housing Act
of 1937, in the Appropriations Acts for the Departments
of Veterans Affairs and Housing and Urban Development,
and Independent Agencies, for the fiscal years 1993,
1994, 1995, 1997, and 1998, and the Omnibus Consoli-
dated Rescissions and Appropriations Act of 1996: Pro-
vided further, That for purposes of environmental review
pursuant to the National Environmental Policy Act of
1969, a grant under this head or under prior appropria-
tions Acts for use for the purposes under this head shall
be treated as assistance under title I of the United States
Housing Act of 1937 and shall be subject to the regula-
tions issued by the Secretary to implement section 26 of
such Act: Provided further, That none of such funds shall
be used directly or indirectly by granting competitive ad-
vantage in awards to settle litigation or pay judgments,
unless expressly permitted herein.
NATIVE AMERICAN HOUSING BLOCK GRANTS
(INCLUDING TRANSFERS OF FUNDS)
For the Native American Housing Block Grants pro-
gram, as authorized under title I of the Native American
Housing Assistance and Self-Determination Act of 1996
(Public Law 104–330), $620,000,000, to remain available
until expended, of which $6,000,000 shall be used to sup-
port the inspection of Indian housing units, contract ex-
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pertise, training, and technical assistance in the oversight
and management of Indian housing and tenant-based as-
sistance, including up to $200,000 for related travel: Pro-
vided, That of the amount provided under this heading,
$6,000,000 shall be made available for the cost of guaran-
teed notes and other obligations, as authorized by title VI
of the Native American Housing Assistance and Self-De-
termination Act of 1996: Provided, further, That such
costs, including the costs of modifying such notes and
other obligations, 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 the
total principal amount of any notes and other obligations,
any part of which is to be guaranteed, not to exceed
$54,600,000.
In addition, for administrative expenses to carry out
the guaranteed loan program, up to $200,000, which shall
be transferred to and merged with the appropriation for
departmental salaries and expenses, to be used only for
the administrative costs of these guarantees: Provided,
That the funds made available in the first proviso in the
preceding paragraph are for a demonstration on ways to
enhance economic growth, to increase access to private
capital, and to encourage the investment and participation
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of traditional financial institutions in tribal and other Na-
tive American areas.
INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM
ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
For the cost of guaranteed loans, as authorized by
section 184 of the Housing and Community Development
Act of 1992 (106 Stat. 3739), $6,000,000, to remain
available until expended: Provided, That such costs, in-
cluding the costs 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 $68,881,000.
In addition, for administrative expenses to carry out
the guaranteed loan program, up to $400,000, which shall
be transferred to and merged with the appropriation for
departmental salaries and expenses, to be used only for
the administrative costs of these guarantees.
COMMUNITY PLANNING AND DEVELOPMENT
HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
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),
$225,000,000, to remain available until expended: Pro-
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vided, That up to 1 percent of such funds shall be avail-
able to the Secretary for technical assistance.
COMMUNITY DEVELOPMENT BLOCK GRANTS
(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), $4,725,000,000, to remain
available until September 30, 2001: Provided, That
$67,000,000 shall be for grants to Indian tribes notwith-
standing section 106(a)(1) of such Act; $3,000,000 shall
be available as a grant to the Housing Assistance Council;
$1,800,000 shall be available as a grant to the National
American Indian Housing Council; $50,000,000 shall be
for grants pursuant to section 107 of the Act;
$20,000,000 shall be for grants pursuant to the Self Help
Housing Opportunity program, subject to authorization:
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 In-
dian Housing Council, or a grant using funds under sec-
tion 107(b)(3) of the Housing and Community Develop-
ment Act of 1974, as amended) shall be expended for
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‘‘Planning and Management Development’’ and ‘‘Adminis-
tration’’ as defined in regulations promulgated by the De-
partment.
Of the amount made available under this heading,
$20,000,000 shall be available for Economic Development
Grants, as authorized by section 108(q) of the Housing
and Community Development Act of 1974, as amended,
for Brownfields redevelopment projects: Provided, That
the Secretary of Housing and Urban Development shall
make these grants available on a competitive basis as spec-
ified in section 102 of the Department of Housing and
Urban Development Reform Act of 1989.
Of the amount made available under this heading,
$30,000,000 shall be made available for ‘‘capacity building
for community development and affordable housing’’, as
authorized by section 4 of the HUD Demonstration Act
of 1993 (Public Law 103–120), with not less than
$10,000,000 of the funding to be used in rural areas, in-
cluding tribal areas, to be divided equally among four enti-
ties, as specified in the report of the Appropriations Com-
mittee accompanying this Act.
Of the amount provided under this heading, the Sec-
retary of Housing and Urban Development may use up
to $50,000,000 for a public and assisted housing self-suf-
ficiency program, of which up to $5,000,000 may be used
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National Housing Act, as amended, shall not exceed
$50,000,000: 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 the Mutual
Mortgage Insurance Fund.
For administrative expenses necessary to carry out
the guaranteed and direct loan program, $328,888,000,
to be derived from the FHA-mutual mortgage insurance
guaranteed loans receipt account, of which not to exceed
$324,866,000 shall be transferred to the appropriation for
departmental salaries and expenses; and of which not to
exceed $4,022,000 shall be transferred to the appropria-
tion for the Office of Inspector General.
In addition, for non-overhead administrative expenses
necessary to carry out the Mutual Mortgage Insurance
guarantee and direct loan program, $200,000,000, to be
derived from the FHA-mutual mortgage insurance guar-
anteed loan receipt account.
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-
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ed), $81,000,000, to remain available until expended: Pro-
vided, That these funds are available to subsidize total
loan principal, any part of which is to be guaranteed, of
up to $18,100,000,000.
Gross obligations for the principal amount of direct
loans, as authorized by sections 204(g), 207(l), 238, and
519(a) of the National Housing Act, shall not exceed
$50,000,000; of which not to exceed $30,000,000 shall be
for bridge financing in connection with the sale of multi-
family 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,
$211,455,000, of which $193,134,000, shall be trans-
ferred to the appropriation for departmental salaries and
expenses; and of which $18,321,000 shall be transferred
to the appropriation for the Office of Inspector General.
In addition, for non-overhead administrative expenses
necessary to carry out the guaranteed and direct loan pro-
grams, $104,000,000.