421
HR 3838 PCS
(ii) by inserting ‘‘or any assistance
payments 
received 
under 
section
521(a)(5),’’ before ‘‘with respect’’; and
(E) in subsection (c)(5)(D), by inserting
before the period at the end the following: ‘‘or,
in the case of housing assisted under section
521(a)(5), does not exceed the rents established
for the project under such section’’;
(2) in the second sentence of section 509(f)(5)
(as redesignated by the preceding provisions of this
title), by striking ‘‘an amount of section 521 rental
assistance’’ and inserting ‘‘, from amounts available
for assistance under paragraphs (2) and (5) of sec-
tion 521(a), an amount’’;
(3) in section 513(c)(2)—
(A) in the matter preceding subparagraph
(A), by inserting ‘‘or contracts for operating as-
sistance 
under 
section 
521(a)(5)’’ 
after
‘‘521(a)(2)(A)’’;
(B) in subparagraph (A), by inserting ‘‘or
operating assistance contracts’’ after ‘‘con-
tracts’’;
(C) in subparagraph (B), by striking
‘‘rental’’ each place it appears; and
422
HR 3838 PCS
(D) in subparagraph (C), by inserting ‘‘or
operating assistance contracts’’ after ‘‘con-
tracts’’;
(4) in section 521(a)(2)(B)—
(A) by inserting ‘‘or paragraph (5)’’ after
‘‘this paragraph’’; and
(B) by striking ‘‘which shall’’ and all that
follows through the period at the end and in-
serting the following: ‘‘. The budget (and the
income, in the case of a project assisted under
this paragraph) shall be used to determine the
amount of the assistance for each project.’’;
(5) in section 521(c), by striking ‘‘subsection
(a)(2)’’ and inserting ‘‘subsections (a)(2) and
(a)(5)’’;
(6) in section 521(e), by inserting after ‘‘recipi-
ent’’ the following: ‘‘or any tenant in a project as-
sisted under subsection (a)(5)’’; and
(7) in section 530, by striking ‘‘rental assist-
ance payments with respect to such project under
section 521(a)(2)(A)’’ and inserting ‘‘assistance pay-
ments with respect to such project under section
521(a)(2)(A) or 521(a)(5)’’.
423
HR 3838 PCS
SEC. 511. DEFINITION OF RURAL AREA.
The last sentence of section 520 of the Housing Act
of 1949 (42 U.S.C. 1490) is amended by striking ‘‘city
of’’ and inserting ‘‘cities of South Tucson, Arizona, and’’.
SEC. 512. ELIGIBILITY OF MANUFACTURED HOME PARKS
FOR BUILDING SITE LOANS FOR COOPERA-
TIVES.
The first sentence of section 524(a)(1) of the Hous-
ing Act of 1949 (42 U.S.C. 1490d(a)(1)) is amended by
inserting before the period at the end the following: ‘‘, and
for the acquisition and development of manufactured home
parks owned by nonprofit organizations for future owner-
ship by low- and moderate-income residents of the park’’.
SEC. 513. RURAL HOUSING ASSISTANCE TARGETING RE-
PORT.
Section 532(a) of the Housing Act of 1949 (42
U.S.C. 1490l) is amended by adding at the end the follow-
ing new flush material:
‘‘The Secretary shall submit a report to the Congress for
each fiscal year describing the geographical distribution
of housing for which eligible loan applications for assist-
ance under this title are submitted in such year and for
which amounts are obligated in such year. The report shall
describe the areas in which the housing to be assisted
under the applications is located, the number of eligible
applications received for housing in such areas, the num-
424
HR 3838 PCS
ber of eligible applications for housing in such areas that
were approved and funded and the amounts of such fund-
ing, the extent of the rural character of such areas, and
any actions taken by the Secretary to comply with the re-
quirement under paragraph (3). The report for a fiscal
year shall be submitted not later than 180 days after the
conclusion of such fiscal year.’’.
SEC. 514. PRIORITY FOR RURAL HOUSING VOUCHER AS-
SISTANCE.
Section 542 of the Housing Act of 1949 (42 U.S.C.
1490r) is amended by adding at the end the following new
subsection:
‘‘(c) PRIORITY.—
‘‘(1) REQUIREMENT.—In providing assistance
under this section, the Secretary shall give pref-
erence to providing assistance for rental housing
that—
‘‘(A) is financed or assisted with a loan,
guarantee, insurance, or other assistance pro-
vided under this title; and
‘‘(B)(i) has a significant number of units,
as determined by the Secretary, that have been
vacant for extended periods; or
‘‘(ii) is occupied by a significant number of
families, as determined by the Secretary, who
425
HR 3838 PCS
pay as rent for a unit in the housing an amount
exceeding 30 percent of the family’s monthly
adjusted income.
‘‘(2) PROJECT-BASED ASSISTANCE.—To provide
assistance according to the preference under para-
graph (1), the Secretary may enter into contracts
with owners of housing described in paragraph (1)
to provide voucher assistance payments that are at-
tached to such housing on behalf of very low-income
families who reside in such housing.’’.
SEC. 515. NATIVE AMERICAN RURAL HOUSING CAPACITY
DEMONSTRATION PROGRAM.
Title V of the Housing Act of 1949 is amended by
inserting after section 537 (42 U.S.C. 1490p–1) the fol-
lowing new section:
‘‘SEC. 538. RURAL HOUSING CAPACITY DEMONSTRATION
PROGRAM FOR NATIVE AMERICANS AND
ALASKAN NATIVES.
‘‘(a) AUTHORITY.—The Secretary shall carry out a
program under this section to demonstrate the effective-
ness of assisting Native Americans and Alaskan Natives
in underserved areas to apply for, obtain, and use housing
assistance under this title.
‘‘(b) GRANTS.—Under the demonstration under this
section, the Secretary shall make grants to technical as-
426
HR 3838 PCS
sistance providers selected under subsection (f) to carry
out activities under subsection (c) with respect to tribes
selected under subsection (e) (and members of the tribes)
in the selected areas. Of the amounts provided to a tech-
nical assistance provider under a grant under this section,
40 percent shall be disbursed to the technical assistance
provider in fiscal year 1995, 30 percent shall be so dis-
bursed in fiscal year 1996, and 30 percent shall be so dis-
bursed in fiscal year 1997.
‘‘(c) USE OF ASSISTANCE.—
‘‘(1) ELIGIBLE ACTIVITIES.—Any amounts pro-
vided to a technical assistance provider under a
grant under this section shall be used by the tech-
nical assistance provider only—
‘‘(A) to train individuals for employment
as local project coordinators under paragraph
(2), which shall include training regarding the
availability, application for, and use of housing
assistance under this title with respect to tribes
and members of tribes;
‘‘(B) to provide ongoing technical assist-
ance and training to local project coordinators;
‘‘(C) to provide assistance to the tribes se-
lected under subsection (e) in the selected
areas, or to Native American or Alaskan Native
428
HR 3838 PCS
‘‘(C) otherwise facilitates the use of such
assistance by the tribes and their members; and
‘‘(D) assists the tribes and their members
in obtaining loans from the revolving fund es-
tablished under paragraph (1)(D).
‘‘(d) TRIBAL CONTRIBUTIONS TO DEMONSTRATION
PROGRAM.—Each tribe selected under subsection (e) for
participation in the demonstration program under this
section shall enter into an agreement with the technical
assistance provider to provide in-kind or financial assist-
ance, in addition to amounts provided under this section,
for activities under the demonstration program, in an
amount determined by the tribe and the technical assist-
ance provider. The assistance provided pursuant to such
agreement may include assistance in the form of office
space, equipment, transportation, salary enhancement,
and fringe benefits, and other forms of assistance.
‘‘(e) SELECTION OF TRIBES AND AREAS.—
‘‘(1) ELIGIBILITY.—The Secretary shall provide
for the technical assistance providers receiving
grants under this section to select for participation
in the demonstration under this section not more
than a total of 15 tribes—
‘‘(A) that are located in counties or com-
munities—
429
HR 3838 PCS
‘‘(i) that are eligible for designation
as targeted underserved areas under sec-
tion 509(f); or
‘‘(ii) that include tribal allotted or In-
dian trust land; and
‘‘(B) that—
‘‘(i) have agreed to participate in the
demonstration under this section by des-
ignating individuals for training as local
project coordinators under subsection (c);
or
‘‘(ii) are located in a county or com-
munity within which is located a Native
American or Alaskan Native housing orga-
nization that has so agreed to participate
in the demonstration under this section.
‘‘(2) CRITERIA
FOR
SELECTION.—Each tech-
nical assistance provider selecting tribes pursuant to
paragraph (1) shall make such selections according
to criteria that include—
‘‘(A) the extent of substandard housing on
the reservation of the tribe;
‘‘(B) the extent of the waiting list for
housing assistance under Federal housing pro-
430
HR 3838 PCS
grams in the community or community under
paragraph (1)(A);
‘‘(C) the extent of interest in and willing-
ness to participate in the demonstration pro-
gram under this section for a 3-year period;
and
‘‘(D) the extent of willingness to provide
in-kind or financial assistance in addition to
amounts provided under this section for activi-
ties under the demonstration program.
‘‘(3) TREATMENT AS TARGETED UNDERSERVED
AREAS.—Notwithstanding the designation of coun-
ties and communities as targeted underserved areas
under section 509(f)(1) and the provisions of section
520, any selected area under this section shall be
considered a targeted underserved area for fiscal
years 1995, 1996, and 1997, for purposes of eligi-
bility for assistance with amounts reserved under
section 509(f)(4)(A).
‘‘(f) SELECTION OF TECHNICAL ASSISTANCE PRO-
VIDERS.—
‘‘(1) ELIGIBILITY.—The Secretary may make a
grant under this section only to a nonprofit organi-
zation having experience in or capable of providing
training and technical assistance regarding the use
431
HR 3838 PCS
of housing assistance under this title and in admin-
istering revolving loan funds for costs relating to
housing assistance programs under this title.
‘‘(2) APPLICATION.—The Secretary shall pro-
vide for nonprofit organizations meeting the require-
ments under paragraph (1) to submit applications
for a grant under this section during a period of not
more than 45 days that begins upon publication of
the notice of funding availability under subsection
(i).
‘‘(3) SELECTION.—Not more than 30 days
after expiration of such period, the Secretary shall
select, to receive grants under this section, 1 or
more nonprofit organizations submitting applications
that are—
‘‘(A) capable of carrying out the duties of
technical assistance providers under this sec-
tion;
‘‘(B) knowledgeable and experienced re-
garding housing needs and issues of Native
Americans and Alaskan Natives and housing
assistance programs under this title; and
‘‘(C) agree to comply with the provisions of
this section.
‘‘(g) REPORTS.—
432
HR 3838 PCS
‘‘(1) LOCAL
PROJECT
COORDINATORS.—Each
local project coordinator trained or assisted by a
technical assistance provider with amounts from a
grant under this section shall submit a report to the
technical assistance provider for each of fiscal years
1995 through 1997, regarding the activities of the
coordinator. The report shall be submitted not later
than 30 days after the conclusion of the fiscal year
for which the report is made.
‘‘(2) TECHNICAL
ASSISTANCE
PROVIDERS.—
Each technical assistance provider receiving a grant
under this section shall submit a report to the Sec-
retary for each of fiscal years 1995 through 1997,
summarizing the information submitted under para-
graph (1) for the fiscal year and describing the ac-
tivities of the technical assistance provider under the
demonstration under this section during the fiscal
year. The report shall be submitted not later than
60 days after the conclusion of the fiscal year for
which the report is made.
‘‘(3) SECRETARY.—The Secretary shall submit
a report to the Congress for each of fiscal years
1995 through 1997 describing the demonstration
under this section and the findings of the Secretary
as a result of the demonstration. The report shall be
433
HR 3838 PCS
submitted not later than 90 days after the conclu-
sion of the fiscal year for which the report is made.
‘‘(h) DEFINITIONS.—For purposes of this section:
‘‘(1) ALASKAN
NATIVE
VILLAGE.—The term
‘Alaskan Native Village’ has the same meaning given
the term ‘Native village’ in section 3 of the Alaska
Native Claims Settlement Act.
‘‘(2) NATIVE AMERICAN OR ALASKAN NATIVE
HOUSING ORGANIZATION.—The term ‘Native Amer-
ican or Alaskan Native housing organization’ means
a nonprofit organization that primarily serves a tribe
or tribes, and includes Indian housing authorities
and other housing entities of a tribe.
‘‘(3) NONPROFIT
ORGANIZATION.—The term
‘nonprofit organization’ means any private, nonprofit
organization that—
‘‘(A) is organized or chartered under State,
tribal, or local laws;
‘‘(B) has no part of its net earning inuring
to the benefit of any member, founder, contrib-
utor, or individual;
‘‘(C) complies with standards of financial
accountability acceptable to the Secretary; and
‘‘(D) through its articles of incorporation
or through resolution of the governing body of
434
HR 3838 PCS
a tribe, has among its purposes significant ac-
tivities related to the provision of decent hous-
ing that is affordable to low- and moderate-in-
come families.
‘‘(4) SELECTED
AREA.—The term ‘selected
area’ means, with respect to any tribe selected under
subsection (e), the county or community meeting the
requirements of subsection (e)(1) in which the tribe
selected is located.
‘‘(5) TECHNICAL ASSISTANCE PROVIDER.—The
term ‘technical assistance provider’ means a non-
profit organization (including a tribe and an Indian
housing authority) that is selected under subsection
(f) to receive a grant under this section.
‘‘(6) TRIBE.—The term ‘tribe’ means any In-
dian tribe, band, group, or nation, including Alaska
Indians, Aleuts, and Eskimos, and any Alaskan Na-
tive Village, of the United States, that is considered
an eligible recipient under the Indian Self-Deter-
mination and Education Assistance Act or was con-
sidered an eligible recipient under chapter 67 of title
31, United States Code, prior to the repeal of such
chapter.
‘‘(i) NOTICE OF FUNDING AVAILABILITY.—
435
HR 3838 PCS
‘‘(1) PUBLICATION.—The Secretary shall cause
to be published in the Federal Register notice of the
availability of any amounts made available for
grants under this section. Such notice shall be pub-
lished not later than the expiration of the 90-day pe-
riod beginning on the date that amounts are appro-
priated to carry out this section.
‘‘(2) CONTENTS.—The notice referred to in
paragraph (1) shall—
‘‘(A) describe the requirements for eligi-
bility to receive a grant, the purposes of the
grant, and the permissible uses of grant
amounts;
‘‘(B) contain an address to which requests
for additional information regarding the dem-
onstration under this section may be made; and
‘‘(C) state the deadline established by the
Secretary pursuant to subsection (f)(2) for the
submission of applications for a grant.’’.
SEC. 516. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
Title V of the Housing Act of 1949 (42 U.S.C. 1471
et seq.) is amended by inserting after section 538 (as
added by the preceding provisions of this title) the follow-
ing new section:
436
HR 3838 PCS
‘‘SEC. 539. RURAL COMMUNITY DEVELOPMENT INITIATIVE.
‘‘(a) IN GENERAL.—The Secretary is authorized to
provide assistance to develop the capacity and ability of
community development corporations, community housing
development organizations, and other nonprofit organiza-
tions to undertake community development and affordable
housing projects and programs in rural areas.
‘‘(b) FORM OF ASSISTANCE.—Assistance under this
section may be used for—
‘‘(1) training, education, support, and advice to
enhance the technical and administrative capabilities
of community development corporations, local com-
munity action agencies receiving assistance under
the Community Services Block Grant Act, commu-
nity housing development organizations, and non-
profit organizations in rural areas;
‘‘(2) loans, grants, or predevelopment assistance
to community development corporations, community
housing development organizations, and nonprofit
organizations to carry out community development
and affordable housing activities that benefit low-in-
come families in rural areas; and
‘‘(3) such other activities for rural areas as may
be determined by the Secretary.
‘‘(c) MATCHING
REQUIREMENT.—Assistance pro-
vided under this section shall be matched from private
437
HR 3838 PCS
sources in an amount equal to 3 times the amount made
available under this section.
‘‘(d) IMPLEMENTATION.—The Secretary shall by no-
tice establish such requirements as may be necessary to
carry out the provisions of this section. The notice shall
take effect upon issuance.’’.
SEC. 517. LOAN GUARANTEES FOR MULTIFAMILY RENTAL
HOUSING IN RURAL AREAS.
Title V of the Housing Act of 1949 (42 U.S.C. 1471
et seq.) is amended by inserting after section 539 (as
added by the preceding provision of this title) the following
new section:
‘‘SEC. 540. LOAN GUARANTEES FOR MULTIFAMILY RENTAL
HOUSING IN RURAL AREAS.
‘‘(a) AUTHORITY.—The Secretary may make commit-
ments to guarantee eligible loans for the development costs
of eligible housing and related facilities, and may guaran-
tee such eligible loans, in accordance with this section.
‘‘(b) EXTENT OF GUARANTEE.—A guarantee made
under this section shall guarantee repayment of an
amount not exceeding the total of the amount of the un-
paid principal and interest of the loan for which the guar-
antee is made. The liability of the United States under
any guarantee under this section shall decrease or increase
438
HR 3838 PCS
pro rata with any decrease or increase of the amount of
the unpaid portion of the obligation.
‘‘(c) ELIGIBLE BORROWERS.—A loan guaranteed
under this section may be made to a nonprofit organiza-
tion, an agency or body of any State government or politi-
cal subdivision thereof, or a private entity.
‘‘(d) ELIGIBLE HOUSING.—A loan may be guaran-
teed under this section only if the loan is used for the
development costs of housing and related facilities (as
such terms are defined in section 515(e)) that—
‘‘(1) consists of 5 or more adequate dwellings;
‘‘(2) is available for occupancy only by low or
moderate income families or persons, whose incomes
at the time of initial occupancy do not exceed 115
percent of the median income of the area, as deter-
mined by the Secretary;
‘‘(3) will remain available as provided in para-
graph (2), according to such binding commitments
as the Secretary may require, for the period of the
original term of the loan guaranteed, unless the
housing is acquired by foreclosure (or instrument in
lieu of foreclosure) or the Secretary waives the appli-
cability of such requirement for the loan only after
determining, based on objective information, that—
439
HR 3838 PCS
‘‘(A) there is no longer a need for low- and
moderate-income housing in the market area in
which the housing is located;
‘‘(B) housing opportunities for low-income
households and minorities will not be reduced
as a result of the waiver; and
‘‘(C) additional Federal assistance will not
be necessary as a result of the waiver; and
‘‘(4) is located in a rural area.
‘‘(e) ELIGIBLE LENDERS.—
‘‘(1) REQUIREMENT.—A loan may be guaran-
teed under this subsection only if the loan is made
by a lender that the Secretary determines—
‘‘(A) meets the qualifications, and has been
approved by the Secretary of Housing and
Urban Development, to make loans for multi-
family housing that are to be insured under the
National Housing Act;
‘‘(B) meets the qualifications, and has
been approved by the Federal National Mort-
gage Association and the Federal Home Loan
Mortgage Corporation, to make loans for multi-
family housing that are to be sold to such cor-
porations; or
440
HR 3838 PCS
‘‘(C) meets any qualifications that the Sec-
retary may, by regulation, establish for partici-
pation of lenders in the loan guarantee program
under this section.
‘‘(2) ELIGIBILITY LIST AND ANNUAL AUDIT.—
The Secretary shall establish a list of eligible lenders
and shall annually conduct an audit of each lender
included in the list for purposes of determining
whether such lender continues to be an eligible
lender.
‘‘(f) LOAN TERMS.—Each loan guaranteed pursuant
to this subsection shall—
‘‘(1) provide for complete amortization by peri-
odic payments to be made for a term not to exceed
40 years;
‘‘(2) involve a rate of interest agreed upon by
the borrower and the lender that does not exceed the
maximum allowable rate established by the Secretary
for purposes of this section and is fixed over the
term of the loan;
‘‘(3) involve a principal obligation (including
initial service charges, appraisal, inspection, and
other fees as the Secretary may approve) not to
exceed—
441
HR 3838 PCS
‘‘(A) in the case of a borrower that is a
nonprofit organization or an agency or body of
any State or local government, 97 percent of
the development costs of the housing and relat-
ed facilities or the value of the housing and fa-
cilities, whichever is less;
‘‘(B) in the case of a borrower that is a
for-profit entity not referred to in subparagraph
(A), 90 percent of the development costs of the
housing and related facilities or the value of the
housing and facilities, whichever is less; and
‘‘(C) in the case of any borrower, for such
part of the property as may be attributable to
dwelling use, the applicable maximum per unit
dollar amount limitations under section 207(c)
of the National Housing Act;
‘‘(4) be secured by a first mortgage on the
housing and related facilities for which the loan is
made, or otherwise, as the Secretary may determine
necessary to ensure repayment of the obligation; and
‘‘(5) for at least 20 percent of the loans made
under this section, the Secretary shall provide the
borrower with assistance in the form of credits pur-
suant to section 521(a)(1)(B) to the extent nec-
essary to reduce the rate of interest under para-
442
HR 3838 PCS
graph (2) to the applicable Federal rate, as such
term is used in section 42(i)(2)(D) of the Internal
Revenue Code of 1986.
‘‘(g) GUARANTEE FEE.—At the time of issuance of
a loan guaranteed under this section, the Secretary may
collect from the lender a fee equal to not more than 1
percent of the principal obligation of the loan.
‘‘(h) AUTHORITY FOR LENDERS TO ISSUE CERTIFI-
CATES OF GUARANTEE.—The Secretary may authorize
certain eligible lenders to determine whether a loan meets
the requirements for guarantee under this section and,
subject to the availability of authority to enter into guar-
antees under this section, execute a firm commitment for
a guarantee binding upon the Secretary and issue a certifi-
cate of guarantee evidencing a guarantee, without review
and approval by the Secretary of the specific loan. The
Secretary may establish standards for approving eligible
lenders for a delegation of authority under this subsection.
‘‘(i) PAYMENT UNDER GUARANTEE.—
‘‘(1) NOTICE OF DEFAULT.—In the event of de-
fault by the borrower on a loan guaranteed under
this section, the holder of the guarantee certificate
for the loan shall provide written notice of the de-
fault to the Secretary.
443
HR 3838 PCS
‘‘(2) FORECLOSURE.—After receiving notice
under paragraph (1) and providing written notice of
action under this paragraph to the Secretary, the
holder of the guarantee certificate for the loan may
initiate foreclosure proceedings for the loan in a
court of competent jurisdiction, in accordance with
regulations issued by the Secretary, to obtain posses-
sion of the security property. After the court issues
a final order authorizing foreclosure on the property,
the holder of the certificate shall be entitled to pay-
ment by the Secretary under the guarantee (in the
amount provided under subsection (b)) upon (A)
conveyance to the Secretary of title to the security
property, (B) submission to the Secretary of a claim
for payment under the guarantee, and (C) assign-
ment to the Secretary of all the claims of the holder
of the guarantee against the borrower or others aris-
ing out of the loan transaction or foreclosure pro-
ceedings, except claims released with the consent of
the Secretary.
‘‘(3) ASSIGNMENT
BY
SECRETARY.—After re-
ceiving notice under paragraph (1), the Secretary
may accept assignment of the loan if the Secretary
determines that the assignment is in the best inter-
ests of the United States. Assignment of a loan
444
HR 3838 PCS
under this paragraph shall include conveyance to the
Secretary of title to the security property, assign-
ment to the Secretary of all rights and interests
arising under the loan, and assignment to the Sec-
retary of all claims against the borrower or others
arising out of the loan transaction. Upon assignment
of a loan under this paragraph, the holder of a guar-
antee certificate for the loan shall be entitled to pay-
ment by the Secretary under the guarantee (in the
amount provided under subsection (b)).
‘‘(4) REQUIREMENTS.—Before any payment
under a guarantee is made under paragraph (2) or
(3), the holder of the guarantee certificate shall ex-
haust all reasonable possibilities of collection on the
loan guaranteed. Upon payment, in whole or in part,
to the holder, the note or judgment evidencing the
debt shall be assigned to the United States and the
holder shall have no further claim against the bor-
rower or the United States. The Secretary shall then
take such action to collect as the Secretary deter-
mines appropriate.
‘‘(j) VIOLATION OF GUARANTEE REQUIREMENTS BY
LENDERS ISSUING GUARANTEES.—
‘‘(1) INDEMNIFICATION.—If the Secretary de-
termines that a loan guaranteed by an eligible lender
445
HR 3838 PCS
pursuant to delegation of authority under subsection
(h) was not originated in accordance with the re-
quirements under this section and the Secretary
pays a claim under the guarantee for the loan, the
Secretary may require the eligible lender authorized
under subsection (h) to issue the guarantee certifi-
cate for the loan—
‘‘(A) to indemnify the Secretary for the
loss, if the payment under the guarantee was
made within a reasonable period specified by
the Secretary; or
‘‘(B) to indemnify the Secretary for the
loss regardless of when payment under the
guarantee was made, if the Secretary deter-
mines that fraud or misrepresentation was in-
volved in connection with the origination of the
loan.
‘‘(2) TERMINATION OF AUTHORITY TO ISSUE
GUARANTEES.—The Secretary may cancel a delega-
tion of authority under subsection (h) to an eligible
lender if the Secretary determines that the lender
has violated the requirements and procedures for
guaranteed loans under this section or for other
good cause. Any such cancellation shall be made by
giving notice to the eligible lender and shall take ef-
446
HR 3838 PCS
fect upon receipt of the notice by the mortgagee or
at a later date, as the Secretary may provide. A de-
cision by the Secretary to cancel a delegation shall
be final and conclusive and shall not be subject to
judicial review.
‘‘(k) REFINANCING.—Any loan guaranteed under this
section may be refinanced and extended in accordance
with terms and conditions that the Secretary shall pre-
scribe, but in no event for an additional amount or term
that exceeds the limitations under subsection (f).
‘‘(l) NONASSUMPTION.—The borrower under a loan
that is guaranteed under this section and under which any
portion of the principal obligation or interest remains out-
standing may not be relieved of liability with respect to
the loan, notwithstanding the transfer of property for
which the loan was made.
‘‘(m) GEOGRAPHICAL TARGETING.—
‘‘(1) STUDY.—The Secretary shall provide for
an independent entity to conduct a study to deter-
mine the extent to which borrowers in the United
States will utilize loan guarantees under this section,
the rural areas in the United States in which bor-
rowers can best utilize and most need loans guaran-
teed under this section, and the rural areas in the
United States in which housing of the type eligible
463
HR 3838 PCS
SEC. 633. CAPACITY BUILDING FOR COMMUNITY DEVELOP-
MENT AND AFFORDABLE HOUSING.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
4 of the HUD Demonstration Act of 1993 (42 U.S.C.
9816 note) is amended by striking subsection (e) and in-
serting the following new subsection:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$60,000,000 for fiscal year 1995 and $60,000,000 for fis-
cal year 1996.’’.
(b) DELIVERY OF ASSISTANCE.—Section 4 of the
HUD Demonstration Act of 1993 (42 U.S.C. 9816 note)
is amended—
(1) in subsection (a)—
(A) by inserting ‘‘and directly to commu-
nity-based organizations and capacity-building
organizations’’ after ‘‘Initiative’’;
(B) by inserting ‘‘neighborhood’’ after ‘‘un-
dertake’’; and
(C) by striking ‘‘and affordable housing’’
and inserting ‘‘, affordable housing, revitaliza-
tion, economic development, youth and family
support, and community service’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘and
community housing development organizations’’
541
HR 3838 PCS
may be used to assist homeless individuals and fami-
lies, including—
‘‘(A) assistance under the programs for
public and Indian housing and section 8 rental
assistance under the United States Housing Act
of 1937 (including the program for section 8
assistance for moderate rehabilitation under
section 451 of this Act and the shelter plus care
program for such assistance under section 452
of this Act), the HOME Investment Partner-
ships Act, the community development block
grant program under title I of the Housing and
Community Development Act of 1974, the pro-
gram for supportive housing for the elderly
under section 202 of the Housing Act of 1959,
the program for supportive housing for persons
with disabilities under section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act,
and the program for housing opportunities for
persons with AIDS under subtitle D of title
VIII of the Cranston-Gonzalez National Afford-
able Housing Act;
‘‘(B) programs administered by the Direc-
tor of the Federal Emergency Management
Agency;