(d) PARTICIPANTS.—In order to carry out the pur-
poses of this title, the Conference shall bring together rep-
resentatives of—
(1) persons living or to be living in low- or mod-
erate-income housing;
(2) the Federal Government;
(3) State and local governments;
(4) public interest groups;
(5) builders and other persons active in the
field of housing; and
(6) the general public.
(e) COOPERATION WITH STATE AND LOCAL AGEN-
CIES.—The Secretary shall furnish all reasonable assist-
ance to State and local agencies to enable them to organize
and conduct conferences and other activities in conjunc-
tion with the Conference, including activities in advance
of the Conference, as part of the process of planning for
the Conference, and subsequent to the Conference in con-
nection with the dissemination, discussion, and implemen-
tation of the recommendations of the Conference.
(f) REPORT.—Not later than 90 days after the com-
pletion of the Conference, the Secretary shall submit a re-
port to the Congress describing the results of the Con-
ference and setting forth any recommendations of the
Conference for statutory or regulatory reform.
(g) DEFINITION.—For purposes of this section, the
term ‘‘barriers to affordable housing’’ means public poli-
cies (including policies of State and local governments and
policies embodied in statutes, ordinances, regulations, and
administrative procedures and processes) that increase the
cost of housing or adversely affect incentives to developing,
maintaining, or improving affordable housing. The term
includes assessments, impact fees, charges for services, tax
policies affecting land and other property, land use con-
trols, zoning ordinances, building codes, growth limits,
policies that affect the return on residential investment,
and any other public policies described in the preceding
sentence.
SEC. 4. HOUSING IMPACT ANALYSIS.
(a) APPLICABILITY.—The requirements of this sec-
tion shall apply with respect to—
(1) any proposed rule, unless the head of the
agency promulgating the rule—
(A) has certified that the proposed rule
will not, if given force or effect as a final rule,
have a significant deleterious impact on the
availability of affordable housing; and
(B) has caused such certification to be
published in the Federal Register at the time of
publication of general notice of proposed rule-
making for the rule, together with a statement
providing the factual basis for the certification;
and
(2) any final rule, unless the head of the agency
promulgating the rule—
(A) has certified that the rule will not, if
given force or effect, have a significant delete-
rious impact on the availability of affordable
housing; and
(B) has caused such certification to be
published in the Federal Register at the time of
publication of the final rule, together with a
statement providing the factual basis for the
certification.
Any agency making a certification under this subsection
shall provide a copy of such certification and the state-
ment providing the factual basis for the certification to
the Secretary of Housing and Urban Development.
(b) STATEMENT
OF
PROPOSED
RULEMAKING.—
Whenever an agency publishes general notice of proposed
rulemaking for any proposed rule, the agency shall—
(1) in the notice of proposed rulemaking—
(A) state with particularity the text of the
proposed rule; and
(B) request any interested persons to sub-
mit to the agency any written data, views, and
arguments, and any specific alternatives to the
proposed rule that—
(i) accomplish the stated objectives of
the applicable statutes;
(ii) result in costs to the Federal Gov-
ernment not more than 5 percent higher
than such costs resulting from the pro-
posed rule; and
(iii) result in a quantity of affordable
housing that is 5 or more percent greater
than the quantity resulting from the pro-
posed rule;
(2) provide an opportunity for interested per-
sons to take the actions specified under paragraph
(1)(B) before promulgation of the final rule; and
(3) prepare and make available for public com-
ment an initial housing impact analysis in accord-
ance with the requirements of subsection (c).
(c) INITIAL HOUSING IMPACT ANALYSIS.—
(1) REQUIREMENTS.—Each initial housing im-
pact analysis shall describe the impact of the pro-
posed rule on the availability of affordable housing.
The initial housing impact analysis or a summary
shall be published in the Federal Register at the
same time as, and together with, the publication of
general notice of proposed rulemaking for the rule.
The agency shall transmit a copy of the initial hous-
ing impact analysis to the Secretary of Housing and
Urban Development.
(2) CONTENTS.—Each initial housing impact
analysis required under this subsection shall con-
tain—
(A) a description of the reasons why action
by the agency is being considered;
(B) a succinct statement of the objectives
of, and legal basis for, the proposed rule;
(C) a description of and, where feasible, an
estimate of the extent to which the proposed
rule would impact the cost or supply of housing
or land; and
(D) an identification, to the extent prac-
ticable, of all relevant Federal rules which may
duplicate, overlap, or conflict with the proposed
rule.
(d) PROPOSAL OF LESS DELETERIOUS ALTERNATIVE
RULE.—
(1) ANALYSIS.—The agency publishing a gen-
eral notice of proposed rulemaking shall analyze any
specific alternatives to the proposed rule which have
been submitted to the agency pursuant to subsection
(b)(2) to determine whether any alternative to the
proposed rule—
(A) accomplishes the stated objectives of
the applicable statutes;
(B) results in costs to the Federal Govern-
ment not more than 5 percent higher than such
costs resulting from the proposed rule; and
(C) results in a quantity of affordable
housing that is 5 or more percent greater than
the quantity resulting from the proposed rule.
(2) 
NEW
NOTICE
OF
PROPOSED
RULE-
MAKING.—If the agency determines that an alter-
native to the proposed rule meets the requirements
under subparagraphs (A) through (C) of paragraph
(1), the agency shall publish a general notice of pro-
posed rulemaking for a proposed rule that accom-
plishes the stated objectives of the applicable stat-
utes, the text of which is based upon such alter-
native to the original proposed rule. In any case in
which the agency determines that more than one al-
ternative to the proposed rule meet such require-
ments, the new proposed rule contained in the gen-
eral notice of proposed rulemaking shall be based
upon the alternative that the agency determines is
most appropriate after considering the costs, effects
on affordable housing, and effectiveness in accom-
plishing the objective of the rule of such alternatives.
The rulemaking for the new proposed rule shall be
subject to the requirements under subsection (b).
(e) FINAL HOUSING IMPACT ANALYSIS.—
(1) REQUIREMENT.—Whenever an agency pro-
mulgates a final rule after publication of a general
notice of proposed rulemaking, the agency shall pre-
pare a final housing impact analysis.
(2) CONTENTS.—Each final housing impact
analysis shall contain—
(A) a succinct statement of the need for,
and objectives of, the rule;
(B) a summary of the significant issues
raised during the public comment period in re-
sponse to the initial housing impact analysis, a
summary of the assessment of the agency of
such issues, and a statement of any changes
made in the proposed rule as a result of such
comments; and
(C) a description of and an estimate of the
extent to which the rule will impact the avail-
ability of affordable housing or an explanation
of why no such estimate is available.
(3) AVAILABILITY.—The agency shall make
copies of the final housing impact analysis available
to members of the public and shall publish in the
Federal Register such analysis or a summary there-
of.
(f) AVOIDANCE OF DUPLICATIVE OR UNNECESSARY
ANALYSES.—
(1) DUPLICATION.—Any Federal agency may
perform the analyses required by subsections (c) and
(e) in conjunction with or as a part of any other
agenda or analysis required by any other law if such
other analysis satisfies the provisions of such sub-
sections.
(2) JOINDER.—In order to avoid duplicative ac-
tion, an agency may consider a series of closely re-
lated rules as one rule for the purposes of sub-
sections (c) and (e).
(g) PREPARATION OF ANALYSES.—In complying with
the provisions of subsections (c) and (e), an agency may
provide either a quantifiable or numerical description of
the effects of a proposed rule or alternatives to the pro-
posed rule, or more general descriptive statements if quan-
tification is not practicable or reliable.
(h) EFFECT ON OTHER LAW.—The requirements of
subsections (c) and (e) do not alter in any manner stand-
ards otherwise applicable by law to agency action.
(i) PROCEDURE FOR WAIVER OR DELAY OF COMPLE-
TION.—
(1) INITIAL HOUSING IMPACT ANALYSIS.—An
agency head may waive or delay the completion of
some or all of the requirements of subsection (c) by
publishing in the Federal Register, not later than
the date of publication of the final rule, a written
finding, with reasons therefor, that the final rule is
being promulgated in response to an emergency that
makes compliance or timely compliance with the pro-
visions of subsection (a) impracticable.
(2) FINAL
HOUSING
IMPACT
ANALYSIS.—An
agency head may not waive the requirements of sub-
section (e). An agency head may delay the comple-
tion of the requirements of subsection (e) for a pe-
riod of not more than 180 days after the date of
publication in the Federal Register of a final rule by
publishing in the Federal Register, not later than
such date of publication, a written finding, with rea-
sons therefor, that the final rule is being promul-
gated in response to an emergency that makes time-
ly compliance with the provisions of subsection (e)
impracticable. If the agency has not prepared a final
housing impact analysis pursuant to subsection (e)
within 180 days from the date of publication of the
final rule, such rule shall lapse and have no force
or effect. Such rule shall not be repromulgated until
a final housing impact analysis has been completed
by the agency.
(j) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) AFFORDABLE HOUSING.—The term ‘‘afford-
able housing’’ means housing that is affordable to
families having incomes that do not exceed 150 per-
cent of the median income of families in the area in
which the housing is located, with adjustments for
smaller and larger families. For purposes of this
paragraph, area, median family income for an area,
and adjustments for family size shall be determined
in the same manner as such factors are determined
for purposes of section 3(b)(2) of the United States
Housing Act of 1937.
(2) AGENCY.—The term ‘‘agency’’ means each
authority of the Government of the United States,
whether or not it is within or subject to review by
another agency, but does not include—
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or
possessions of the United States;
(D) the government of the District of Co-
lumbia;
(E) agencies composed of representatives
of the parties or of representatives of organiza-
tions of the parties to the disputes determined
by them;
(F) courts-martial and military commis-
sions;
(G) military authority exercised in the field
in time of war or in occupied territory; or
(H) functions conferred by—
(i) sections 1738, 1739, 1743, and
1744 of title 12, United States Code;
(ii) chapter 2 of title 41, United
States Code;
(iii) subchapter II of chapter 471 of
title 49, United States Code; or
(iv) sections 1884, 1891–1902, and
former section 1641(b)(2), of title 50, ap-
pendix, United States Code.
(3) FAMILIES.—The term ‘‘families’’ has the
meaning given such term in section 3 of the United
States Housing Act of 1937.
(4) RULE.—The term ‘‘rule’’ means any rule
for which the agency publishes a general notice of
proposed rulemaking pursuant to section 553(b) of
title 5, United States Code, or any other law, includ-
ing any rule of general applicability governing grants
by an agency to State and local governments for
which the agency provides an opportunity for notice
and public comment; except that such term does not
include a rule of particular applicability relating to
rates, wages, corporate or financial structures or re-
organizations thereof, prices, facilities, appliances,
services, or allowances therefor or to valuations,
costs or accounting, or practices relating to such
rates, wages, structures, prices, appliances, services,
or allowances.
(5) 
SIGNIFICANT.—The 
term 
‘‘significant’’
means, with respect to an impact on the availability
of affordable housing, a difference in quantity of 5
percent or more.
(k) DEVELOPMENT.—Not later than 120 days after
the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall develop model ini-
tial and final housing impact analyses under this section
and shall cause such model analyses to be published in
the Federal Register. The model analyses shall be de-
signed to provide examples to other agencies of how to
carry out and develop the analyses required under sub-
sections (a) and (c).
SEC. 5. GRANTS FOR REGULATORY BARRIER REMOVAL
STRATEGIES.
(a) AUTHORIZATION
OF
APPROPRIATIONS.—Sub-
section (a) of section 1204 of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705c(a)) is
amended to read as follows:
‘‘(a) FUNDING.—There is authorized to be appro-
priated for grants under subsections (b) and (c)
$15,000,000 for fiscal year 1999 and each fiscal year
thereafter through fiscal year 2003.’’.
(b) APPLICATION AND SELECTION.—The last sen-
tence of section 1204(e) of the Housing and Community
Development Act of 1992 (42 U.S.C. 12705c(e)) is
amended by inserting before the period at the end the fol-
lowing: ‘‘and such criteria shall require that grant
amounts be used in a manner consistent with the strategy
contained in the comprehensive housing affordability
strategy for the jurisdiction pursuant to section 105(b)(4)
of the Cranston-Gonzalez National Affordable Housing
Act’’.
(c) TECHNICAL AMENDMENTS.—Section 107(a)(1) of
the Housing and Community Development Act of 1974
(42 U.S.C. 5307(a)(1)) is amended—
(1) in subparagraph (G), by inserting ‘‘and’’
after the semicolon at the end;
(2) by striking subparagraph (H); and
(3) by redesignating subparagraph (I) as sub-
paragraph (H).
SEC. 6. ELIGIBILITY FOR COMMUNITY DEVELOPMENT
BLOCK GRANTS.
Section 104(c)(1) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5304(c)(1)) is
amended by inserting before the comma the following:
‘‘, which shall include making a good faith effort to carry
out the strategy established under section 105(b)(4) of
such Act by the unit of general local government to remove
barriers to affordable housing’’.
SEC. 7. REGULATORY BARRIERS CLEARINGHOUSE.
Section 1205 of the Housing and Community Devel-
opment Act of 1992 (42 U.S.C. 12705d) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by striking ‘‘receive, collect, process, and assem-
ble’’ and inserting ‘‘serve as a national reposi-
tory to receive, collect, process, assemble, and
disseminate’’;
(B) in paragraph (1)—
(i) by striking ‘‘, including’’ and in-
serting ‘‘(including’’; and
(ii) by inserting before the semicolon
at the end the following: ‘‘), and the preva-
lence and effects on affordable housing of
such laws, regulations, and policies’’;
(C) in paragraph (2), by inserting before
the semicolon the following: ‘‘, including par-
ticularly innovative or successful activities,
strategies, and plans’’; and
(D) in paragraph (3), by inserting before
the period at the end the following: ‘‘, including
particularly innovative or successful strategies,
activities, and plans’’;
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) by making available through a World Wide
Web site of the Department, by electronic mail, or
otherwise, provide to each housing agency of a unit
of general local government that serves an area hav-
ing a population greater than 100,000, an index of
all State and local strategies and plans submitted
under subsection (a) to the clearinghouse, which—
‘‘(A) shall describe the types of barriers to
affordable housing that the strategy or plan
was designed to ameliorate or remove; and
‘‘(B) shall, not later than 30 days after
submission to the clearinghouse of any new
strategy or plan, be updated to include the new
strategy or plan submitted.’’; and
(3) by adding at the end the following new sub-
sections:
‘‘(c) ORGANIZATION.—The clearinghouse under this
section shall be established within the Office of Policy De-
velopment of the Department of Housing and Urban De-
velopment and shall be under the direction of the Assist-
ant Secretary for Policy Development and Research.
‘‘(d) TIMING.—The clearinghouse under this section
(as amended by section 7 of the Affordable Housing Bar-
rier Removal Act of 1998) shall be established and com-
mence carrying out the functions of the clearinghouse
under this section not later than 1 year after the date of
the enactment of such Act. The Secretary of Housing and
Urban Development may comply with the requirements
under this section by reestablishing the clearinghouse that
was originally established to comply with this section and
updating and improving such clearinghouse to the extent
necessary to comply with the requirements of this section
as in effect pursuant to the enactment of such Act.’’.
SEC. 8. REMOVING BARRIERS TO USE OF FHA SINGLE FAM-
ILY HOUSING MORTGAGE INSURANCE PRO-
GRAM.
(a) REPEAL
OF
OWNER-OCCUPANCY
REQUIRE-
MENT.—Section 203 of the National Housing Act (12
U.S.C. 1709) is amended by striking subsection (g).
(b) REPEAL OF REQUIREMENTS FOR APPROVAL FOR
INSURANCE PRIOR TO START OF CONSTRUCTION.—The
National Housing Act is amended—
(1) in section 203 (12 U.S.C. 1709)—
(A) in subsection (b)(2), by striking the
fourth sentence in the first undesignated para-
graph following subparagraph (B); and
(B) in subsection (i), by striking ‘‘(or, in
any case’’ and all that follows through ‘‘90 per
centum)’’; and
(2) in section 220(d)(3)(A)(i) (12 U.S.C.
1715k(d)(3)(A)(i)), by striking ‘‘(but, in any case’’
and all that follows through ‘‘90 per centum)’’.
(c) DEFINITION OF AREA.—Section 203(b)(2) of the
National Housing Act (12 U.S.C. 1709(b)(2)) is amended
by striking the first sentence that follows subparagraph
(B) and inserting the following new sentence: ‘‘For pur-
poses of the preceding sentence, the term ‘area’ means a
geographical area as the Secretary considers appropriate
to maximize the availability of housing finance and carry
out the purposes of this title.’’.
(d) SIMPLIFICATION
OF
DOWNPAYMENT
PROCE-
DURES.—Section 203(b)(2) of the National Housing Act
(12 U.S.C. 1709(b)(2)) is amended—
(1) by striking subparagraph (B) and inserting
the following new subparagraph:
‘‘(B) except as otherwise provided in this
paragraph (2), not in excess of—
‘‘(i) in the case of a mortgage for a
property with an appraised value equal to
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 ap-
praised value of the property, or
‘‘(iv) notwithstanding clauses (ii) and
(iii), in the case of a mortgage for a prop-
erty with an appraised value in excess of
$50,000 and which is located in a State for
which the average closing cost exceeds 2.10
percent of the average, for the State, of
the sale price of properties located in the
State for which mortgages have been exe-
cuted, 97.75 percent of the appraised value
of the property,
plus the amount of the mortgage insurance pre-
mium paid at the time the mortgage is in-
sured.’’;
(2) in the 1st sentence of the matter following
subparagraph (B), by inserting before the period at
the end the following: ‘‘, and the term ‘average clos-
ing cost’ means, with respect to a State, the average,
for mortgages executed for properties that are lo-
cated within the State, of the total amounts (as de-
termined by the Secretary) of initial service charges,
appraisal, inspection, and other fees (as the Sec-
retary shall approve) that are paid in connection
with such mortgages’’;
(3) by striking the 2d sentence of the matter
following subparagraph (B); and
(4) in the penultimate undesignated para-
graph—
(A) in the 2d sentence, by striking ‘‘the
preceding sentence’’ and inserting ‘‘this sub-
section’’; and
(B) by striking the 1st sentence.
SEC. 9. TREATMENT OF RESIDENTIAL CONSTRUCTION
LOANS UNDER THE FEDERAL HOME LOAN
BANK ACT.
(a) TREATMENT OF RESIDENTIAL CONSTRUCTION
LOANS
UNDER
THE
QUALIFIED
THRIFT
LENDER
TEST.—Section 4(a)(2)(A) of the Federal Home Loan
Bank Act (12 U.S.C. 1424(a)(2)(A)) is amended by in-
serting ‘‘, including (subject to such regulations as the
Board may prescribe) funded residential construction
loans for 1- to 4-family properties’’ before the semicolon.
(b) REPEAL OF 30 PERCENT CAP ON USE OF CER-
TAIN ASSETS AS COLLATERAL.—Section 10(a)(4) of the
Federal Home Loan Bank Act (12 U.S.C. 1430(a)(4)) is
amended by striking the 2d sentence.
Æ